{"id":329880,"date":"2024-10-13T23:58:32","date_gmt":"2024-10-13T15:58:32","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329880"},"modified":"2024-10-13T23:59:17","modified_gmt":"2024-10-13T15:59:17","slug":"stock-in-focus-oceana-gold-philippines-ogp-14-oct-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-oceana-gold-philippines-ogp-14-oct-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Oceana Gold Philippines (OGP) – 14 Oct 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>OGP<\/td><\/tr>
Company Name<\/strong><\/td>Oceana Gold (Philippines), Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>14 Oct 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 17.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We issue a Buy recommendation on OGP with a Target Price of P17.60\/sh, offering an upside potential of over +14% from its last traded price.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

OceanaGold Philippines, Inc. (OGP), a prominent subsidiary of OceanaGold Corporation, has been a key contributor to the Philippines\u2019 mining industry, which remains a critical pillar of the country\u2019s economy, especially in the gold and copper sectors.<\/p>\n\n\n\n

OGP operates within a volatile global mining industry, with gold and copper prices influenced by macroeconomic factors like geopolitical tensions, inflation, and interest rate changes. In 2Q 2024, gold prices surged +27.24% y\/y, boosting OGP\u2019s revenue due to demand for safe-haven assets. Meanwhile, copper faced short-term challenges, mainly due to China’s slower economic recovery. Despite this, OGP
remains optimistic about copper’s long-term potential, given its role in the energy transition.<\/p>\n\n\n\n

In the Philippines, the mining sector is highly regulated, emphasizing ESG accountability. OGP and other miners are required to follow strict environmental laws, such as proper site rehabilitation and community support.<\/p>\n\n\n\n

In 1H 2024, OGP reported a net income of $25.7 million, and revenues of $160.90 million, an -11.01% y\/y decline. Production dropped for both gold and copper due to maintenance issues and lower grade mining.<\/p>\n\n\n\n

Rising mining costs were driven by maintenance and refurbishment of aging equipment. However, processing unit costs fell, indicating improved efficiency. Gold remains the major revenue driver at 72%, with copper and silver contributing 27% and a smaller share, respectively.<\/p>\n\n\n\n

OGP invested $0.8 milloion in exploration, drilling in Panels 3 and 4 and targeting the Napartan area to expand its resource base. Future plans include geophysical surveys and extensive underground drilling to further enhance their resource portfolio.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>