10 million oz of goldAs at 31 December 2007, OceanaGold had total Measured and Indicated Mineral Resources of 5.88Moz of gold and 0.29Mt of copper and Inferred Mineral Resources of 2.73Moz of gold and 0.06Mt of copper.
Add those together and you arrive at 8.61 million oz of gold and 0.35 million tons of copper.
The copper alone amounts to 775 million pounds which converts to another 1.2 million oz of gold equivalent.
Thats nearly 10 million oz of gold for a market cap less than $100 million or a valuation of just $10 per oz.
Producing gold mines are generally valued at about $175 per oz of gold in the ground , which indicates the immense undervaluation of this 300,000 oz producer.
The bought out 1/3 of their hedges in 2008 and stated that they intended to buy back the remaining hedges dependant on cash flows.
Currently, OGC would be gaining about $60 million per year if they bought back their remaining 100,000 oz hedges for 2009 and 2010.
That looks like a very good argument to complete the unhedging program.