OceanaGold Shares Soar on the back of Didipio Negotiations
After the Philippine government issued an order to begin negotiations to reopen Didipio, OceanaGold (TSX, ASX: OGC) closed at an increase of 32% higher on the Australian Stock Exchange.
President Rodrigo Duterte has issued the Department of Environment and Natural Resources (DENR) to work closely with the Department of Finance and OceanGold on a Financial for Technical Assistance Agreement (FTAA).
In 2018, OceanaGold started its renewal of the 25-year permit and in June 2019, its license had expired but kept its operations under a temporary license.
OceanaGold recently received a “certification of non-overlap”, which says that the FTAA area is outside the ancestral domain of local indigenous communities. The firms said that the document has “strong endorsement of the residents in the local communities in and around the Didipio mine, including indigenous peoples.”
Since 2019, the firm has let go of 75% of its employees and has cautioned earlier that it could take up to 12 months to restart the mine from maintenance and care.
In the past, the company has had issues with DENR which was then headed by former secretary Gina Lopez who issued suspensions of mining operations in the country.
Didipio which started in 2013 has indicated and measured resources of 1.3 million ounces of gold and 160,000 tonnes of copper. Aside from Didipio, OceanaGold has three more mines - Macraes and Waihi in New Zealand, and Haile in the United States.
The shares of the miner closed at A$2.50 in Sydney and were trading 36% higher in Toronto at C$2.40 apiece, valuing it at C$1.68 billion ($1.32bn).