RE:RE:RE:RE:RE:RE:Re:RE:RE:RE:RE:RE:RE:RE:RE:One word to this AM's releaseIf the price of gold was up instead of down then the price of OGC would be a little higher than 2.06. not a little lower.
Lets stick with facts with assessing risk vs return for this stock.
OGC should not need this amount of money, even through tough last half of 2020.
So until they clear up the real reason why, could be good, neutral or bad, stock may be quite volatile. ( Bank prodding, New opportunity, OGC management ultra conservative financing nature,
even worse operations than last disclosed, going to disclose negative news about Dipidio and huge writedown maybe affecting bank covenants, who knows. )
I can tell you this - the most negative gold production given to date was 295,000 ounces and only 140,000 were produced 1st half, so that means 155,000 2nd half ( last guidance was 295 to 345)
48,000 at 1635 ( forward sale)
59400 at 1381 remaining NZ hedges
47,600 at 1850 market price sales
that is 248.5 million. Total CGS in 1st half 136M and all G+A 42M and interest 6M total 184M
So cash positive of 64.5 on an EBITA basis but including the interest. ( assuming similar costs
1st half to 2nd half which roughly should be)
We also had the forward sale cash that is to be delivered in second quarter of 2021 as well as
all the cash they drew on their credit facility etc.
A bunch of banks guaranteed OGC 150million Can$ from stock sale so I am guessing they have looked it over. and are satisfied that they can sell it all at 2.06.
It is going to be interestring in next few weeks what comes out of this.