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.

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OceanaGold Corp > Clarification

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Post by Awardedon Jul 14, 2021 9:55pm

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Post# 33547477

Clarification

The news release says:

“Listing of at least 10% of the common shares in OceanaGold Philippines Inc. (“OGPI”), the Company’s Philippine operating subsidiary and holder of the FTAA, on the Philippine Stock Exchange within the next three years.”

Thus, it is not like an issuance of an extra 10% of OGC shares to list on the Philippine exchange. Rather, it is a sale of at least 10% of the Didipio operations to be listed on the Philippine exchange. The sale will result in less ownership of OGPI, but it will come with compensation via sale of shares.

I my mind, this is probably a good thing. In fact, OGC could list 100% of OGPI on the Philippine exchange and retain 90% or even less for themselves. Via this mechanism, many Philippine entities (citizens, corporations, employees, mutual funds, pension funds, or even the Philippine government) could become direct owners of OGC’s Philippine operations. To me, that brings several advantages:

OGC would be getting (not giving) capital that can be invested in the Philippines or elsewhere (maybe Haile).
In any future dispute, it would not be us vs. them.
If there was such a dispute that looked like it could not be resolved, OGC could have a more options to monetize their investment (sell on the local market or sell to another corporation).
Local owners will want to maximize the market value of OGPI. Like WKP at Waihi, there are even better satellite opportunities surrounding Didipio. With local ownership, it may be easier to use less of OGC’s financial assistance and more of its technical assistance to achieve responsible mining in the Philippines.