Didipio Gold Copper Mine, Philippines
In the Philippines, the FTAA renewal is currently under review with the Office of the President following the re-endorsement of the renewal by the Department of Environment and Natural Resources (“DENR”and Mines and Geosciences Bureau (“MGB”
late in November 2019. The Company continues to have constructive engagement with the national and local governments and with local stakeholders.
Didipio remains in a state of operational readiness while the FTAA renewal process continues to progress. When operations resume at Didipio, the Company expects trucking to resume within a week, the process plant within two weeks and the underground mine within three weeks before ramping up over a four to sixweek period. These estimates are based on the workforce remaining in a state of operational readiness. Should these circumstances change then the Company will provide additional and revised details on a Didipio ramp-up schedule.
Once fully ramped up, the Company expects Didipio to produce approximately 10,000 ounces of gold and 1,000 tonnes of copper per month at a site AISC of between $700 and $750 per ounce sold.
The Company is currently spending $8 million to $10 million a quarter on holding costs associated with maintaining the workforce in a state of operational readiness and the underground mine and process plant in care and maintenance. These costs are expensed through the profit and loss statement as a corporate general and administrative cost.
Should the renewal process be protracted beyond current expectations, and the Company decide to transition into full care and maintenance, holding costs are expected to be in the order of $3 million per quarter, and ramp-up back to full production is likely to be up to 12 months, depending on the time until the renewal is granted.
The Company is highly committed to its obligations as a valued corporate steward in the Philippines, working in accordance to local and international laws and in good faith with local stakeholders while always upholding its corporate values of respect, integrity and honesty.
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