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.