It certainly has been a rollercoaster ride for shareholders of OceanaGold Corporation (ASX: OGC) in the last couple of days.
Yesterday the gold miner's share price fell a whopping 14% after its Didipio mine was once again threatened with suspension by the Philippine government.
During a press conference by the Department of Environment and Natural Resources (DENR), Secretary Gina Lopez named the Didipio operation as one of six mining operations subject to suspension.
The proposed suspension is the result of its mine allegedly causing a decline in agricultural production. The DENR didn't go into further details.
After the market closed yesterday, OceanaGold responded to the news by confirming that it has not received a formal suspension order from the DENR, nor does it believe there is any legal basis for the proposed suspension.
Management has stressed that its: "Didipio operation is not in violation of any laws, rules or regulations, and the operation is not posing any threat to public, security, health, safety or otherwise."
The market has reacted positively to this announcement and in morning trade its shares have rebounded a solid 12.5% to $4.32.
In September of last year the mine was threatened with closure due to alleged social issues. This crisis was ultimately averted and I have a feeling this one will be too.
However I would suggest that investors wanting exposure to the gold industry do so with an investment in Newcrest Mining Limited (ASX: NCM) or Northern Star Resources Ltd (ASX: NST) instead.
OceanaGold is undoubtedly a quality miner and Didipio is an extremely valuable asset, but the Duterte government is arguably even more controversial and unpredictable than the Trump administration.
I would suggest investors look to own gold miners operating in relatively stabler environments.
