OceanaGold (Philippines), Inc. (OGP) reported that its second-quarter net income surged 124% to $32.7 million, up from $14.6 million in the same period a year earlier, as stronger realized gold and copper prices more than compensated for lower production and sales volumes. The gains reflect a broader rally in precious and base metals that has lifted revenues across the global mining sector even as some producers grapple with operational headwinds.

In a disclosure filed Thursday, the company said revenue for the three months ended June climbed 32% to $126.9 million from $96.2 million a year earlier. Cost of sales rose 5% to $55.7 million from $53 million. Gross income advanced 65% to $71.2 million, while income from operations more than doubled to $49.4 million from $24 million.

OGP, which operates the Didipio gold-copper mine in Nueva Vizcaya as its sole producing asset, attributed the revenue growth primarily to higher average realized prices for both metals despite weaker sales volumes. The Didipio operation has been transitioning through different mining phases, with underground mining playing an increasingly central role in its production profile.

The company sold 20,400 ounces of gold during the quarter, down 1% from 20,600 ounces a year earlier. The average realized gold price increased 31% to $4,319 per ounce from $3,295 per ounce. Copper sales fell 13% to 2,600 metric tons from 3,000 metric tons, while the average realized copper price climbed 47% to $6.40 per pound from $4.36 per pound.

On the production side, second-quarter gold output declined 13% to 21,400 ounces from 24,500 ounces, driven by lower mill feed volumes stemming from reduced mill availability. Copper production dropped 27% to 2,700 metric tons from 3,700 metric tons, reflecting planned mine sequencing and lower volumes processed.

Cash costs fell 19% to $706 per ounce from $873 per ounce. However, all-in sustaining cost (AISC) rose 23% to $1,589 per ounce from $1,287 per ounce, as lower copper by-product credits, reduced gold sales volumes, higher diesel and consumables costs, and increased sustaining capital spending all weighed on the metric.

The $2.7 million increase in cost of sales was primarily driven by higher consulting and repair expenses tied to underground mining activities, planned crusher and mill shutdowns, and changes in gold and copper inventories. These increases were partially offset by lower supplies and consumables costs, which dropped to $9.1 million from $17.7 million a year earlier.

General and administrative expenses rose 18% to $21.2 million from $17.9 million, mainly reflecting increases in free-carried interest and excise tax. Income before tax more than doubled to $48.9 million from $23.7 million, while income tax expense climbed to $16.2 million from $9.1 million.

OGP said the direct impact of the Iran conflict on its operations had remained limited and that its supply chains continued to support normal operations. Nonetheless, the company noted that elevated diesel prices and supply-side pressures had pushed up certain operating and capital costs.

For the first half of the year, net income more than tripled to $67.4 million from $22 million, while revenue surged 63% to $285.3 million from $175.5 million. First-half income from operations climbed 180% to $103.7 million from $37.1 million. Basic and diluted earnings per share increased to $0.030 from $0.010.

The company reaffirmed its 2026 guidance of 85,000 to 105,000 ounces of gold and 13,000 to 15,000 metric tons of copper, with AISC projected at $975 to $1,100 per ounce. Production is expected to strengthen in the third and fourth quarters as underground mining rates increase, a trajectory that will be critical to closing the gap between first-half output shortfalls and full-year targets. OGP also anticipates that AISC will decline in the second half, supported by higher production volumes and lower sustaining capital expenditures. — Marron Joshua F. Mendoza