Oceana Gold, OGC
Hello there guest! Want to join in on the conversation? Login or register for a forums account by visiting this link.
Posted: Wednesday Oct 13 7:58:14AM 2010
OGC.to/ocanf.pk +.24 to C$3.96
Oceana had a selloff after the recent surge to C$4. Coming back today. No news but gold is strong at $1373 and OGC is producing about 290K oz this year. Now that hedges are gone, cashflow is huge.
Assume 72,000 oz of gold per qtr and $500 cash costs.
With $1300 gold, you get cashflow of 57million per qtr!
This still has room to double triple from here. Solid producer that will be showing big gains in cashflow and eps in the next few reports. With that much cashflow, they can fund Didipio project by themselves. Could be in production by 2013 and add another 100K in gold and millions of pounds of copper to OGC production.
Posted: Thursday Jun 17 6:22:33AM 2010
Oceana is my biggest gold holding. I have been in and out of it for a couple of years. Last year OGC did a big financing and bought out their ugly gold hedges that paid them only $700 per oz of gold. Production has been substantial at 280-300K oz for several years. Production is from New Zealand so politically very stable. 3 mines and very aggressive exploration program to increase ozs.
Since removing the hedges, ogc has marched steadily upwards. I expect good improvements in eps and cashflow. Q2 should be good with improvements in the second half of 2010.
With the PP, share count has climbed but 280K oz of gold generates tremendous revenues. $84million gross per qtr.
I still think there is big upside to Oceana. Bought for relatives this week.
Posted: Friday Jul 31 1:04:47PM 2009
I see.You are very well inform too.
I have some concerns about the latest management change...
Why? Maybe we will know something later...
Stock options could have been very lucrative for him but he prefer to quit for other business opportunities...why?? very strange...
Posted: Thursday Jul 30 10:35:46AM 2009
OGC.to/OCANF.pk +.10 to C$.98, recovering recent losses.
Sold 75,319 oz of gold, 156,412 for 6 months
Cashflow of 20.4 million vs 24 in Q1
Big hedging gains of 50 million before taxes
EPS .21 with hedging gains after taxes
EPS .028 without hedging gains.
Still dirt cheap for a profitable producer
Posted: Tuesday Jul 21 7:41:55AM 2009
OGC had a nice run to C$1.11 but.........
they issued a PP for 24.2 million shares at A$1. Going to use the money for exploration around two of their New Zealand mines to increase reserves and mine life with unhedged oz.
They also posted a preliminary of Q2
Production 74K oz
Cashflow 20 million
Cash Costs ~$420
These compare unfavorably to Q1 numbers of:
Production of 84K oz
Cashflow of 23 million
Cash Costs $279
Mine was shut down for 3 weeks for maintenance so company is confident they will hit 300K oz for 2009. Cash costs up due to strength of NZ$.
Cashflow should still be around .09-.10, which is very cheap for a medium producer selling at C$1.04.
Production should move back towards Q1 levels without production interruptions.
Posted: Wednesday Jul 8 10:52:32AM 2009
OGC.to has been weak lately and today dropped big. Down to C$.87 or -.10 at the worst.
Silver stocks also weak, with SLW and FR.to down more than 5%.
FIU.to continues to fall.
Looks like fear is coming back into the market.
Posted: Tuesday Jun 2 7:17:14PM 2009
US dollar sagging. Gold stocks strong.
OGC.to popped to C$1.25 today in Canada and up .14 more in Australia tonight.
Lots more upside for OGC. .05 eps and .12 cashflow in Q1 should lead to a C$5 to C$6 price if OGC continues on that same kind of pace. Lots of room left but, of course, OGC, needs to continue that breakout performance from Q1.
Posted: Tuesday May 26 12:13:27PM 2009
Here is an Australian news article about the CEO leaving.
Difference of opinion with the board was probably over how to handle remaining big partly developed project. He probably wanted to finish it and the board may have wanted to sell part or all of it, rather than dilute the shares to finance the much bigger costs that have developed.
Posted: Monday May 25 7:39:01AM 2009
Ugh! OGC.to -.09 to C$.97.
Company posted PR saying that CEO is leaving at the end of June. No explanation why. Big selloff at the open down to .82. Only 83K traded. Company looking at restarting big copper/gold project in Philippines with lower capex.
Posted: Thursday May 21 1:06:00PM 2009
Wow!~ +.20 to C$1.09
Looks like somebody did a little painting the tape at the close but still a great day!
Still undervalued. .05 eps and .12 cashflow for Q1
Posted: Wednesday May 20 9:12:07PM 2009
OGC.ax up .14 to A$1.065 on 1.24 million shares in Australia overnight. Hoping for something similar in Canada tomorrow.