OceanaGold Corp T.OGC

Today, from Investor Relations OGC

[psych01]

Thanks for reaching out and happy to discuss the IPO. You are correct in that the listing is 100% secondary and was a requirement of the FTAA renewal in 2021 (actually, the government required at least 10% of OGPI shares to be listed on the PSE, but the PSE’s minimum float requirement is 20%, hence why we are listing 20%). OGPI holds the Didipio mine and any future projects that fall within our surrounding FTAA boundary.


There will be no dilution to OceanaGold’s shares, however OceanaGold as a parent company will now own 80% of the Philippines subsidiary, rather than the 100% that we previously owned. Proceeds of the sale (~US$106M), net of fees, will be received by OceanaGold parent company and will be applied to repaying our outstanding debt.
 
Hope that helps and feel free to reach out if you have any further questions.   IMO

[psych01]

Downside is that parent company OGC only owns 80% of OGPI, upside being that proceeds will go to paying off debt.  We notice that doing business in the Philippines is difficult, OGC doing their best under the circumstances.  IMO

[Tradestay]

Agree it is and management is doing a good job utilizing th cash flow from didpio and building out the other mines. I guess we gave up about three years of cash flow the 20% would have brought in for an immediate cash to offset debts at 8% rate.  Overall its a good deal and Philippines in some ways is correct to give locals a chance to own  a piece. Its still great at 80% with the low