Friday, 24 August 2012

Updates - OceanaGold

Recently on companyinsight.net.au,  Mick Wilkes the MD of Oceanagold was interviewed on the updates of their gold project in the Philippines.  Below are some excerpts of this interview, to see the full version please visit:   Company Insight - Oceanagold

Highlights of Interview
Recent & expected improved operating performance of New Zealand operations. Strong progress at Didipio.  Production timing, production levels & operating costs. Explains Philippines mining sector reform & implications for OGC. Success of locally owned Didipio Community Development Corporation ('DiCorp'). Explains recently signed US$225 million debt facility, giving funding flexibility. Feedback about OceanaGold from the Diggers & Dealers conference. Current investor proposition & future growth for the Company.



Q: What are the implications for OceanaGold after the Philippines Government signed the 'Executive Order 79' which covers Philippines mining sector reform?

MD & CEO, Mick Wilkes: The Executive Order is designed to ensure a more responsible, sustainable and equitable mining industry in the Philippines.  So, we view the Executive Order as a positive for reform for the mining industry in the Philippines, but more importantly for us because it will clear the way for the approval for an extension of our current exploration permit.  We expect this approval to come through in the next month or two and we are ready to drill some near mine prospects.
Importantly, the Government has said they will regulate more rigorously small scale mining to improve environmental management.  They also want to improve the transparency of the mining industry which will increase the confidence of foreign investors to invest in mining in the Philippines.



Q: The Company has discussed the strong local support for the project and the establishment of the locally-owned cooperative 'DiCorp'. Can you elaborate on DiCorp and how it is involved with the project?

MD & CEO, Mick Wilkes:  The Didipio Community Development Corporation ('DiCorp') is an entity initiated by OceanaGold, and DiCorp's shareholders are long term residents around Didipio.  Its purpose is to help develop skills to provide services for the long term operation of mines.
The shareholders will benefit from being able to develop these skills, but also through sharing in the profits that DiCorp generates.  DiCorp already has around 80 employees and that will increase to around 200 over the next 6 months as more contracts are awarded at the Didipio mine site.

DiCorp is already contracted to maintain the access road, operate the employee bus service, carry out the waste collection service and it also has the cleaning contract for the mining camp.  These types of companies have been set up successfully in other countries and it is turning out to be very successful for DiCorp's shareholders and for OceanaGold.

Sunday, 19 August 2012

Wednesday, 25 July 2012

Philippine rebound to be sustained?

Interesting article published in The Edge, Singapore.



The author argues that Philippine's rebound is in fact sustainable and investors should look deeper than the "legions of cynics."  The key points in the argument are as follows:

Positives accumulating -
1. Inflation is falling
2. Country risk premium is falling
3. Economy more resilient to external shocks
4. Govt stability increasing

 Investment deterrents easing-
1. Philippines is one of the highest concentrations of minerals in the world, but restrictive regulations that were deterring investments are gradually being removed
2. Major investment in infrastructure has been announced in the new budget
3. Steps being taken by administration to enhance the investment climate - campaign against corruption, increase in BPO growth.

 However, challenges remain - weak infrastructure, high utility costs, to name a few result in Philippines ranking not too highly in international rankings. However, with good policy making, these can be overcome. Please click on link below for the full article:



What are your thoughts?

Monday, 16 July 2012

What Good PR Is Really All About


In April, one of the world’s most famous and successful PR companies created a massive, large scale PR campaign for a huge ‘globally diversified natural resources group’ operating in India. This marketing campaign had a vice-like grip on all possible avenues of social media in India: poster advertisements, slogans, online platforms like YouTube. It had the tagline “Creating Happiness””.







However, this whole charade was reduced to a farce in no time- ultimately and unexpectedly backfiring. Its apparent false claims and sugarcoating hid important and disturbing facts. Shockingly, despite its slew of emotionally charged advertisements, The company violated laws in mining, got clearances based on false information, illegally built refineries.

Mining companies out there need to take note of the way industry is portrayed to the public. However, what is of concern now is the second step, which is part of the publicity job: not all publicity is good publicity, especially not in this industry! We all assume that public relations do not include concealing facts in a desperate bid to change mindsets- but it’s something even the best PR companies fall prey to.

What good PR is really about then: it’s about honesty, realistic targets, and is ultimately open to criticism and suggestions. Having worked with those on the ground, its what AMEA believes in as well. According to the article “How to tell your sustainability story: the messier, the better” , good pr nowadays in fact is the opposite of spewing out positive, ambitious promises and sugarcoating. It is in fact being humble, airing your dirty laundry and being honest- in fact, it’s the only way to do business nowadays.

What we think is: go slow and steady. Progress may be quicker with easy PR, but we believe in going for sustainability and social understanding step by step.