There are 3 articles on this stock available only to PRO subscribers.
Oceanagold's New Hedging Program Significantly De Risks Its New Zealand Assets
- Like all gold companies, Oceanagold has been savaged by the recent fall in the gold price, with its shareprice falling 20% over the last month.
- Oceanagold announced an extension of its hedging program, which now covers over 80% of its expected production from its high cost New Zealand assets over the next 2 years.
- By leaving its most attractive asset (Didipio) unhedged, OCG still provides meaningful gold price upside participation.
- The market is underestimating the protection OGC now has to falling gold prices through its new hedging program.
- OGC is an ideal stock for investors looking for downside some gold price protection but with meaningful upside participation.
Oceanagold: Improvements At Didipio And Reefton Make This Stock Compelling Once AgainBen Kramer-Miller • Wed, Nov. 5
- Oceanagold has been a victim of the downturn in the gold price, and shares have fallen by over 30% since I last suggested that investors take profits in May..
- While shares are down management has made considerable improvements to the Didipio Mine Plan going forward..
- The company has also extended the life of the Reefton Project in New Zealand..
- While the bottom may not be in yet Oceanagold offers good value and it should be able to maintain its profitability throughout the downturn, making it a compelling "buy.".
Update: Oceanagold Releases Q3 Earnings, Updated Didipio Mine Plan
- Oceanagold reported strong Q3 earnings showing low cost production.
- The company also released a more attractive mine plan for its Didipio Project.
- These announcements exceed my expectations.
- With this good news and recent weakness in the stock price, shares are beginning to look attractive again.
Update: Oceanagold Releases A 10-Year Mine Life PEA For Its Reefton Project In New ZealandBen Kramer-Miller • Mon, Oct. 27
- Oceanagold just released a PEA for its Reefton Project in New Zealand.
- I had not anticipated this as the project had an expected mine life of only a couple more years.
- This is a bullish development, and with recent share price weakness, the stock is starting to look interesting again.
Oceanagold's Valuation Is Unsustainably Low - Get Ready For A Re-Rating Upon Release Of Its September Results
- Over the first half of 2014, Oceanagold was one of the best performing gold miners but since its June quarterly results release, it has fallen 37% to be the worst.
- The June quarter was a transition quarter for Oceanagold - with its Didipio mine moving to Stage 3 and quarterly production temporarily halving as a result.
- The market has failed to understand the transient nature of the June quarterly results and is now significantly undervaluing Oceanagold.
- Oceanagold will re-rate significantly over the coming weeks with the release of its September results and the release of its final Didipio optimisation study.
- OceanaGold just announced highlights of its plan to optimize its operations at its flagship Didipio Mine in the Philippines.
- The results look solid as they will bring forward some production and improve efficiency, although many specifics weren't included.
- I had not anticipated this in my May article.
- This is a bullish development as it brings cash flow forward while making the operation more efficient -- capex remains an unknown.
- With the gold price weakening and the stock price at the level I said to get out in May, I continue to avoid the stock.
Update: Oceanagold Earnings - Higher Costs And Lower Production
- OceanaGold announced a small Q2 loss on higher costs and lower production.
- As I predicted the company's production would fall off after an unusually strong Q1 that sent shares higher; production costs exceeded expectations by 11%.
- The stock is risky at the current valuation and investors should be cautious.
- OceanaGold shares have soared nearly 50% since I recommended them in July, and even more since the beginning of the year.
- This is due to an especially strong performance at its Didipio Mine in the Philippines during the first quarter.
- But mining in the Philippines is risky, and the Q1 numbers were above and beyond the company's estimates.
- If we factor these points into an NPV calculation for Didipio it becomes evident that the stock is overvalued.
- The company is executing well, and it should have strong cash-flow going forward, so it is still on my radar, and it is a worthwhile investment on weakness.
We currently have no Breaking News on this stock.
OCANF vs. ETF Alternatives
Other News & PR