OceanaGold Corp T.OGC

Alternate Symbol(s): OCANF

Metals & Mining Gold

OceanaGold Corporation is an intermediate gold and copper producer. It 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 it 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 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 operation includes a large-scale surface mine, an underground mine, and an adjacent process plant inclusive of an autoclave for pressure oxidation of the ore. Its 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 Sep 11, 2020 10:03am

235 Views

Post# 31541870

Scotia's Take: Macraes Mine Extension Positive $5.00 Target

Latest Research (September 10, 2020):

OUR TAKE: Positive. OceanaGold announced a Macraes mine life extension to 2028 (from ~2021 previously),

including Golden Point underground with initial reserves of 160 koz Au. Macraes is now forecast to produce ~150 koz Au/yr through 2027 with AISC of ~$1,000/oz. OGC's after-tax NPV5% for Macraes is $325M (using $1,540/oz Au). After incorporating the revised production profile and using Scotiabank GBM's price deck, our overall NAVPS has increased by ~6%.

We view the Macraes mine life extension positively, as it boosts the production profile for the asset with robust economics. Notably, this study is based on reserves only; thus, we we see potential for further upside with upgrading and conversion of additional resources. In addition, we see the Macraes mine life extension backfilling OGC's consolidated production profile, as we now model ~8 years with 500+ koz.

Our SO rating and C$5.00 price target are maintained.