Daily TribuneNot only is OceanaGold Philippines this year’s curtain-raiser for initial public offerings, we’re also the first holder of a Financial or Technical Assistance Agreement to list on the stock exchange and the first mining firm to do so in over a decade
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At the traditional ringing of the bell are (from left, by row) OGP director and general manager for Didipio Operations David Bickerton, OGP president and general manager for external afffairs and Social Performance Atty. Joan Adaci-Cattiling, OGP chairman Peter Sharpe, PSE president and CEO Ramon Monzon, PSE chairperson Jose Pardo and PSE director Vivian Yuchengco; Canadian Ambassador David Hartman, PSE director Ferdinand Constantino, OGP director Liang Tang, OGP Director Marius van Niekerk, OceanaGold Corporation SVP for business development and investor relations Brian Martin and DENR Undersecretary for field operations Juan Miguel Cuna; OGP independent directors Tomasa Lipana and Mia Gentugaya, PSE director Andrew Jerome Gan, BDO Capital and Investment Corporation president Eduardo Francisco, PSE Treasurer Omeita Tiangco and the OGP Management Team.
Photograph courtesy of pse
Australian-Canadian-owned mining company OceanaGold Philippines Inc. (OGPI) on Monday listed on the Philippine Stock Exchange (PSE) an initial public offering (IPO) of 456 million of its company’s shares, worth P6.08 billion.
Its stocks in the market are sold at P13.33 per share, which is smaller than the gold company’s earlier projection of offer price of P17.28 per share.
Hence, PSE president and chief executive officer Ramon Monzon applauded the said company for being the first company to list its shares and opening them for purchase by the general public this year and for being the first mining company to do an IPO after 12 years.
First to be awarded a FTAA
According to Monzon, the OGPI-operated Didipio mining site in Kasibu, Nueva Vizcaya, was the first mining project awarded a Financial or Technical Assistance Agreement (FTAA) from the Philippine Government, allowing a 100 percent foreign-owned company to operate large-scale explorations in the country.
He explained that the FTAA was originally executed in 1994 and was renewed on 14 July 2021, for an additional 25-year period starting on 19 June 2019.
“The FTAA renewal is definitely a win-win situation for all stakeholders. OGP gets to continue its mining operations; the government continues to share in 60 percent of all OGP’s net revenues,” he said, adding that the gold-copper producer company continues to generate jobs for people in the nearby barangays, construction of farm-to-market roads, multipurpose buildings, water systems, among others.
Monzon said the OGPI’s IPO listing “comes at a time when prospects for the mining sector are favorable.”
“The government is looking to revitalize the mining industry to boost its potential contribution to the economy. The local mining sector certainly has a vast potential that can fuel economic growth,” he noted.
“While the Philippines ranks fifth among the most mineralized countries with an estimated $1 trillion worth of untapped copper, gold, nickel, zinc, and silver reserves, only 5 percent of these assets have been explored,” Monzon said.
“Our country’s mining and quarrying sector has underperformed vis-à-vis the region’s performance, with an average GDP contribution of only 0.8 percent in the last three years compared with a 6.6 percent share of the said sector in the ASEAN GDP in 2022,” he added.
Commitment given
For his part, Department of Environment and Natural Resources Undersecretary Juan Miguel Cuna said OGPI’s IPO listing signifies the company’s commitment to the government’s thrust of a whole-nation and whole-society approach to spur development.
“As the first mining firm to be awarded an FTAA, Oceana demonstrates the company’s integrity by delivering on its obligations under this pioneering agreement. Under the leadership of President Ferdinand Marcos Jr., the government has prioritized the revitalization of the mining sector, not only as a catalyst for economic growth but also as an indispensable partner in the national agenda for sustainable development, climate action, and clean energy transition for a low-carbon future,” he said.
At the same time, Cuna underscored the imperative that countries extracting national resources must strictly adhere to the country’s laws, particularly with regards environmental protection.
Role model
“We urge OceanaGold Philippines to be a role model of environmental compliance and social development in the country to safeguard our natural resources to ensure inclusive and climate resilient development,” Cuna said.
Meanwhile, Atty. Joan Adaci-Cattiling, OGP’s president and general manager for external affairs and social performance, said the company’s decision to list an IPO is a milestone, not only for their company but also for the Philippines, the mining industry, and the business sector in general.
“Not only is OceanaGold Philippines this year’s curtain-raiser for initial public offerings, we’re also the first holders of a Financial or Technical Assistance Agreement to list on the stock exchange and the first mining firm to do so in over a decade,” she said.
“Our listing today marks the culmination of a comprehensive and thorough undertaking that started with the renewal of our FTAA with the Philippine government. With the FTAA confirmation in 2021, we were focused on delivering the additional requirements of our renewal, and today we completed the final term on that list on the listing of our shares in the Philippine Stock Exchange,” she added.
