Post by
SIGG1 on Jul 15, 2021 8:58am
ScotiaBank Latest Research: OUR TAKE: Positive. C$4.75 PT.
Latest Research (July 14, 2021):
OUR TAKE: Positive.
OceanaGold provided an operations update and announced that theDidipio mine licence in Philippines has been renewed for an additional 25 years as of June 19, 2019. OGC plans a staged restart at Didipio, commencing with stockpile processing (19Mt available on site), and aims to achieve full underground production within 12 months. At full production, Didipio is expected to produce 10koz Au and 1kt Cu per month. At Haile, the operation remains on track to achieve 2021 production guidance of 150k-170koz Au, however a site-wide review is under way to identify cost savings and efficiencies, with technical studies due in early 2022. Haile supplemental EIS and RoD permits are now expected in Q4/21 with a modest negative impact on capital and operating costs over the next two years as a result of the delay. Waihi and Macraes guidance remains intact. Overall we view this update as positive for OGC shares – the renewal of the Didipio licence is along-awaited positive catalyst and, at full production, we expect strong cash flows from the asset with a benefit from strong copper prices that should more than offset incremental costs and capex at Haile. We rate OGC shares SO with a C$4.75 PT.
Comment by
mouserman on Jul 15, 2021 9:40am
Yes spot on with that analysis..... should be a double on the way. I see Goldman Sachs was the biggest buyer yesterday and on the buy again today....going to be fun to watch this summer.