Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

OceanaGold Corp T.OGC

Alternate Symbol(s):  OCANF

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

Comment by Esther1on May 10, 2021 9:45pm
144 Views
Post# 33171142

RE:RE:Re:OGC reference

RE:RE:Re:OGC referenceWhat a nice call option it is, if the FTAA is approved. 
It is basically almost a free call option ( in my opinion) as there is so much skeptism  of D signing due to the reasons given, that very little positivity is priced into the stock via Didipio.. 
The stock price will jump far larger than many believe if approved, especially in next month or two. 

Let me read you some figures from the last pure year of OGC 2018 ( 100% of Didipio) 

Revenue  773 million
Net Profit  124 million
EBITA       364 million


Profit per share          20 cents
Cash Flow per share  60 cents approximately
AISC                          767
Gold produced       533,000
Gold price realized  1,268  !!!!!!!!!!!!!!!!      currently 1836
Copper price realized  3.05                      currently  4.72

Now if FTAA is approved gold production will be similar in 2022 and AISC will be about $200 higher, even with super low cost of Didipio. Interest is similar and taxes will no doubt be at least 75 million higher ( if you add FTAA costs to it.)  Also the 15% share  dilution is a negative.  Still a net positive when all is factored given current pricing.  

It does not take a math genius to see that the results would be a little better than 2018, due to a gold and copper price far higher. ( even with the negatives I described)

The average price for OGC fluctuated between 3.50 and 4.50 in 2018   There is no reason that it would not go there again with the approval of the FTAA. . 
If not approved OGC would fluctuate around where it is, and only move with the gold price and production, costs and permitting projections being met or exceeded.  ( the almost free option as it probably would sink a little for a short time on the initial news of no) 

Always nice to imagine that Duterte wakes up one morning and decides to sign the FTAA 
and we all get a little richer.  


<< Previous
Bullboard Posts
Next >>