News ReleaseThese production results and revenue reported today are in line with my projections. Gold production a bit above and copper production a bit below it would appear, but bottom line these results are consistent with model.
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=23751557&l=0&r=0&s=OSU&t=LIST
However, the best news IMO, is that OSU settled their gold hedges EARLY for Sept through Dec and at a great price (namely $794.75):
On 3 September 2008, the Company settled in advance its September to December 2008 gold forward contract obligations (a total of 27,340 ozs) at a settlement price of USD$794.75/oz, resulting in a settlement payment of USD$6,028,000 net of the forward sales price of USD$574.25/oz.
( $794.75-$574.25=$220.50 * 27,340 ounces = $6,028,000
This is great news for three reasons.
1) First, OSU had the cash available to settle these hedges Thus, OSU must be confident that it has the necessary cash to operate the mine for the next few months even after prepaying these hedges.
2) OSU cash production costs should be in line with estimates or it would not have prepaid these hedges. There must not have been any unusual, material expenses during the last quarter.
3) On Sept 3, 2008, when these hedges were settled, the price of gold was at about its lowest cost. With current price of gold over $880, OSU had near perfect timing in settling these hedges.