OceanaGold Corp T.OGC

Does this make OGC a screaming buy?

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Lowest EV/EBITDA Ratio in the Gold Industry Detected for OceanaGold (OCANF, NSU, NEM)
Published on Fri, 10/21/2011 - 06:23
By Adrienne Chilton in Fast Lane, NEM, NSU, OCANF, amex:nsu, lowest ev/ebitda ratio, nasdaq:ocanf,nevsun resources, newmont mining, nyse:nem, oceanagold

Below are the three companies in the Gold industry with the lowest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.
OceanaGold (NASDAQ:OCANF) is lowest with an EV/EBITDA ratio of 0.15. OceanaGold Corporation is a gold mining and exploration company. The Company currently owns interests in projects in New Zealand and the Philippines. Yesterday, OceanaGold traded 234,000 shares vs. average volume of 52,000 shares per day. The stock underperformed the Dow (-5.1% to the Dow's 0.3%) and underperformed the S&P 500 (-5.1% to the S&P's 0.4%) during yesterday's trading.
Nevsun Resources (AMEX:NSU) is next with an EV/EBITDA ratio of 5.39.
In the past 52 weeks, Nevsun Resources share prices have been bracketed by a low of $4.32 and a high of $7.75 and closed yesterday at $4.63, 7% above that low price. The 200-day and 50-day moving averages have moved 0.81% lower and 1.05% lower over the past week, respectively.
Finishing up the bottom three is Newmont Mining (NYSE:NEM), with an EV/EBITDA ratio of 6.22.
Newmont Mining has overhead space with shares priced $61.64, or 22.4% below the average consensus analyst price target of $79.39. Newmont Mining shares should encounter resistance at the 50-day moving average (MA) of $63.13 and support at its 200-day MA of $57.32.
By Adrienne Chilton
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