OceanaGold Corp T.OGC

Alternate Symbol(s): OCANF

Metals & Mining Gold

OceanaGold Corp is an intermediate gold and copper producer. The Company has a portfolio of four operating mines: the Haile Gold Mine in the United States of America; Didipio Mine in the Philippines; and the Macraes and Waihi operations in New Zealand. The gold, copper, and silver that the Company produces are essential to the renewable energy and transport sectors, life-saving medical devices and technology, which connects communities around the world. The Didipio gold and copper mine is located in Luzon, Philippines. It produces gold and silver as dore bars and copper in concentrate. The Macraes Operation on the South Island of New Zealand is an active gold producing mine. The Company's Waihi Operation in the North Island of New Zealand is an underground operation. The Haile Gold Mine located in Kershaw, South Carolina is a gold mine on the East Coast.

TSX:OGC - Post by User

OceanaGold Corp

Bullboard Posts

Post by echo2on Nov 19, 2019 1:43pm

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Post# 30370272

National Bank target $4.25 - Maintain Outperform

OGC (TSX): C$2.66

Target: C$4.25 (Was C$4.50)

Stock Rating: Outperform (Unchanged)

Risk Rating: Speculative (Unchanged)

Est. Total Return: 60.8%

Event:
We updated our estimates to better align with recent management commentary,
particularly around the plans to place Waihi on care & maintenance in Q2 2020.

Key Takeaways:
Waihi is anticipated to enter care and maintenance in Q2’20, and
we forecast the asset remaining non-producing until Q2’21, driving
a 14% cut to our NTM EBITDA estimate. Our FCF estimates decreased from a combination
of less gold production and a higher capex, largely to reflect the plans to rehabilitate the Waihi
mill while the asset is offline. Working capital is a focus, as OceanaGold’s US$150 million credit
facility matures on December 31, 2020; however, we believe we could see an announcement
later this quarter on a renewed facility. We forecast the facility requiring an extension and
upsizing to US$200 million if Oceana is to go through with both Martha and Haile
underground projects and avoid reducing the dividend and/or selling marketable securities.

(Me: It should be noted that it was a National Bank larger seller who dumped a net 1,000,000 shares
on Friday that led to this present selloff. Seems completely unjustified, and a buying opportunity.)