OTCPK:MSSNF - Post by User
Post by
dynarodon May 23, 2009 5:21am
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Post# 16011153
ogc
ogcMack here you go
Heres a quick DD for Oceanagold -OGC
From 2 mines in NZ currently producing 300oz / year cash cost is 297$ozhowever has dropped from about 400+
5 million oz reserves 8.6 mill oz totalmeasured + inferred
float 164million
MC170Mill
debt 150mill convertable to debt over next 3 1/2 years at 4 dollars a share
hedge 155000 oz at about 700$ - delevering hedge at 33% ofcurrent gold output - so will be unhedged in 2 years
phillipines minewhich is partially built currently on care and maintenance- needs further financing tocomplete will produce 120k oz + 15000 tons of cu /year = approximately 170kozrough figure
plenty of exploration potential
so here near termproduction target of potentially 470k oz
sweet jesus thats a midcapproducer trading at MC170mill - free cash flow is the key to this company, can easily service or paydown the debt. SoI'm not concerned with debt - if gold explodes this company will explode also -I see a 10 bagger easily now with the current gold price - good leverage
Downside risk - if gold tanks they will be introuble to service debt
FXrisk if the US$ tanks this will impact there bottom line if NZ$jumps
Personally this has good riskreward buying existing prodcucer for15$ per oz