OceanaGold Philippines’ shares drop on market debut after IPO

Didipio mine is located 270 km north of Manila. (Image courtesy of OceanaGold Corp.)

Shares of gold miner OceanaGold Philippines Inc ended 6.16% lower on its trading debut on Monday after a 6.078 billion pesos ($105.10 million) initial public offering (IPO), the first IPO in the Philippines’ this year.

The shares opened at 13.34 pesos, a touch above their IPO price of 13.33 pesos, but subsequently lost ground to cap the day at 12.50 pesos each.

Toronto-listed miner OceanaGold Corp sold 20% in subsidiary OceanaGold Philippines via the IPO, the Philippines’ first public debut for a mining firm since 2012.

“We expect our mining operations to provide substantial dividend returns to our shareholders,” OceanaGold Philippines president Joan Adaci-Cattiling said in a statement.

Future dividends will be declared and paid to shareholders quarterly, she added.

The gold and copper miner’s IPO was to comply with a regulatory requirement for its operations in northern Philippines. Its Didipio mine started commercial operations in 2013 and has a mine life of up to 2035.

The Philippines is working to revitalise its mining sector to boost its economy. It is a major nickel ore supplier to top metals consumer China, and also has substantial copper and gold reserves.

($1 = 57.83 Philippine pesos)

(By Neil Jerome Morales; Editing by John Mair and Martin Petty)


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