OGC - Trouble at the mine

[Steve]

Surprisingly, this was reported last week in the local ODT!

Work stops on gold mine's tunnels (http://www.nzherald.co.nz/index.cfm?c_id=3&ObjectID=10011046)

Does anyone follow this share? I was looking at buying some following the last operating announcement, which appeared to be quite positive.

[Steve]

quote:Originally posted by Steve

Surprisingly, this was reported last week in the local ODT!

Work stops on gold mine's tunnels (http://www.nzherald.co.nz/index.cfm?c_id=3&ObjectID=10011046)

Does anyone follow this share? I was looking at buying some following the last operating announcement, which appeared to be quite positive.

Is nobody else following this share?[:0]

[PLK]

i have this share
i bought it because according to its gold reserved, i think it is undervalue now (of course it takes time to get all the gold out of underground)
i guess i will have to hold it for long term.
hope it will turn up to be really profitable in future

[whiteheron]

Steve

I looked at OGD when it was floated but decided to give it a miss in favour of some excellent Aussie miners

The promoters ( Macraes ? I seem to remember ) seemed to do well out of the float , but I am not sure that the shareholders who took up the IPO got a good deal ( my opinion only )

The share price has taken something of a hammering --- personally I feel that there are better bets in Australia

[clearasmud]

Due to the high gold ounces resource this co is well leveraged to the POG.
It looks oversold.
I own OGD,BSG,AVM

[troyvdh]

Am I missing something....repeated (positive ???) announcments,gold price at US$530....actually biked around the place (Reefton) man, there are a few folk who are going over old ground....OGD SP still languishing....

[airedale]

Yes Troydvh, we are missing something, or else it is a strong buy.
Notice that part owner GRD is holding up well.
Fat Prophets still rate OGD as a "buy".

[troyvdh]

Mind you though, for the value of gold to warrant attention then for any one to get really excited the value would need to exceed $1000..............am I wrong ??? given inflation blah blah...

[troyvdh]

now this reaLLY p....es me off, The Oz mkt is graced with an announcement...... plus a few other announcements ,but not us...OGD closed up at 2.75.

The blokes at Direct tell me that this IS NOT unusual....that but this not good enough...is it ?????

[airedale]

The rumour is that majority shareholder GRD intend to sell. With the price of gold going up, there could be a nice profit for the rest of us.

[Jess9]

Anyone have their (JORC) reserves handy?

[tim23]

GRDSs OGD stake is on the block - no rumour! details of sale ready soon.

[troyvdh]

I'm confused.this company has been spewing positive news out for a while on the back of an increasing gold price.Yet its only now beginning to perform.In no way do I wish to appear smart but why the delay in folk responding in buying into this company...have i missed something...

closed at 87 oz on good volumn

[clearasmud]

Sometimes these things take a while to happen.

However don't rule out a retrace to the 70's

At least thats what I,m hoping,been watching since A72c and like the story.

[airedale]

The company have said that they intend to re-finance or restructure the hedge book to take advantage of the increasing gold price. Add to that the long term [now about 5 years old] bull market for gold, and if there is a retracement to $A .72 then it would be a good buy.I would top up, but the question is what to do if you havn't already got any. Buy now or wait?
Crystal ball gazers please!

[troyvdh]

something's up.....GRD out ???? or buying all of OGD....

[airedale]

Or selling all of OGD???

[Jess9]

quote:Originally posted by airedale

The company have said that they intend to re-finance or restructure the hedge book to take advantage of the increasing gold price. Add to that the long term [now about 5 years old] bull market for gold, and if there is a retracement to $A .72 then it would be a good buy.I would top up, but the question is what to do if you havn't already got any. Buy now or wait?
Crystal ball gazers please!


Hi airedale, if not exposed to gold and want risky but likely rewarding punt, maybe take a look over at Heritage Gold. This one hasn't moved up yet in the recent gold coy surges, not sure if its been overlooked or I've overlooked something...anyway I've bought in, and now holding (for the gold bull run) and watching on with interest.

They have quite a nice web site at www.heritagegold.co.nz

Any thoughts on this one?

PS sorry to Hijack Oceana topic, I'll head back to the HGD topic...

[airedale]

Hi Jess9, I havn't done any research on Heritage.
I have my hands [portfolio] full of gold right now. DIO,IGD,GRD,LHG,SED,OGD,IRN. With Heritage
I ask ...is it going up and does it have liquidity?

[airedale]

OGD up today on an ann that the hedge book has been restructured.:)
I have posted the ann on the ASX page.

[funkyman]

Airedaile - why not just buy ZAUWBA on the ASX?

[airedale]

Hi Funkyman, what advantage would that bring?

[funkyman]

well you'd be buying gold directly - each "share" is equivalent to 1/100th ounce of gold.
The advantage -as I see it - is that you're directly exposed to the gold price and not to anything going wrong at the mine, management mistakes, etc etc

[airedale]

Thanks, Funky I will check it out.

[sheepless]

So what should be the effect of this sale. Good or bad.

[airedale]

My guess, ultimately beneficial. But we really have to wait until the new owners reveal their intentions. Possibly they will be dedicated gold miners or they will sit on it for a couple of years before onselling to Xstrata, Rio Tinto, BHP, Iamgold, or whoever.

[airedale]

A few days ago a group of "professional, informed,investors" bought half of OGD for AU .81 per share. Today the SP closed at AU.75 per share. That looks like a potentially profitable gap.
Discl: holding OGD

[cookiemannz]

OGD
11/07/2006
MERGER

REL: 1615 HRS Oceana Gold Limited

MERGER: OGD: Oceana Gold Limited & Climax Mining Limited to Merge

JOINT ANNOUNCEMENT
OCEANA GOLD LIMITED AND CLIMAX MINING LTD TO MERGE

Creation of a growth oriented gold mining company
The Directors of Oceana Gold Limited ("Oceana") and Climax Mining Limited
("Climax') are pleased to announce a merger by scheme of arrangement.

Under the terms of the merger Climax shareholders will receive 0.62 of a
share of Oceana for each share of Climax. In addition, Climax shareholders
will receive 0.31 of an option to acquire Oceana shares for 0.925 cents
maturing in 30 months for each share of Climax. The existing Climax option
holders will receive equivalent value for their options. The share offer
represents a 27% premium1 to the weighted average Climax share price for the
30 days prior to this announcement.

The Board of Climax unanimously supports the proposed transaction and will
recommend that Climax shareholders and option holders vote in favour of the
transaction at meetings expected to take place in late October 2006.

The Merged Company

Upon implementation of the transaction the combined company will retain the
Oceana Gold name and have:
- Reserves of 4.8 million ounces2
- Forecast annual gold production over 550,000 ounces gold equivalent (Au Eq)
ounces2 by 2008
- A management and operating team with a track record of success in
international project development and low-cost mining
- Diversified revenue streams in gold, copper and silver from New Zealand and
the Philippines
- Improved access to development capital
- Enhanced international liquidity with institutional shareholders
distributed through Australia, New Zealand, Asia, Europe and North America.
- A portfolio of outstanding development and exploration projects in New
Zealand and the Philippines
- Ability to pursue further growth opportunities throughout Australasia.

Based on current market values the merged company will have a market
capitalisation of approximately A$523 million1 and former Climax shareholders
will own approximately 44% of the
shares in the merged company.

At completion of the merger, the Board of Oceana will be comprised of three
non-executive Climax nominees and three non-executive Oceana nominees plus
the CEO. The current Chairman of Climax, Mr Jim Askew, will be appointed as
the Chairman of the merged company.

The current Chairman of Oceana, Mr. Kerry McDonald, will be appointed to the
position of Deputy Chairman of the merged company. The current Chief
Executive Officer of Oceana, Mr Stephen Orr, will be the Chief Executive
Officer of the merged company.

Oceana is listed on the ASX and NZX, and Climax is listed on the ASX. Upon
completion of the merger, it is the intention of the combined company to
explore additional listing opportunities.

Commenting on the merger Oceana's Chairman Kerry McDonald said:
"We believe that the proposed transaction is a major step forward for Oceana
Gold.

The merger will provide greater development opportunities and the ability to
leverage off the combined development skills of the two companies and
Oceana's ability as a highly competitive mining and processing operator."

Climax Mining's Chairman Jim Askew added:
"The proposed merger creates a globally significant mining company with a
worldclass management team. It brings together the human and capital
resources required to rapidly develop the outstanding development and
exploration opportunities available in both the Philippines and New Zealand.

I am looking forward to working closely with the new team to maximise returns
from our existing assets and to pursue further growth opportunities
throughout the Pacific Rim."

Proposed merger details
Oceana and Climax have today signed a bi

[airedale]

There has been some strength in OGD lately. Looks like the market is in favour of the Climax Mining merger.And gold is poised to break through US$600 again. [8D]
Discl: Holding OGD

[moe]

Oceana Gold projects on schedule
By Simon Hartley Monday, 30th October 2006

Oceana Gold’s twin development projects are well under way, with its respective Otago underground and West Coast open-pit projects on the threshold of striking and mining gold bearing ore.

At its primary developments, Globe Progress at Reefton on the West Coast has begun blasting and hitting mineable ore, while its Frasers underground project at its East-Otago Macraes site is also on schedule to be commissioned by the end of 2007.

Mining of Frasers for goldbearing ore will start this year. Tunnelling at the $70 million Frasers decline began in mid-April and has progressed a further 366m, bringing the main decline’s overall length to 707m. Once completed, the 4.2km main decline will service dozens of off-shoot dead-end mining tunnels which have been forecast to deliver an estimated 360,000oz of gold during eight years.

Oceana’s overall performance during its third-quarter trading period was buoyed by selling gold at open spot market prices, cushioning increased production costs.

Oecana’s chief executive, Stephen Orr, said that during the quarter the company experienced “significant growth” in its average gold price, which was up 41% on the corresponding quarter during 2005.

The increase was a result of the company’s hedge book restructure which allowed 55% of gold sales to be made at spot prices, he said in a statement last week.

ABN Amro Craigs investment adviser Peter McIntyre said production costs remained key issues for Oceana, noting that its cash reserves had declined during the last quarter from $A54 million to about $A40 million.

“They will want to make sure they put it cash reserves to prudent use,” Mr McIntyre said.

During the past month, Oceana’s shares had “drifted“ between 70c- 80c.

However, because of the decline in international gold prices, ABN had recently lowered its 12-month target price $1.25 to $1.12, Mr McIntyre said.

Gold production increased 3% to 43,577oz on the corresponding quarter a year ago and sales were up 10%. The average price paid of $A805 per ounce during the period was up 41% on the $A571 per ounce paid in the third quarter of 2005, Mr Orr said.

“Finalisation of the hedge book restructure has produced an excellent result and allowed Oceana Gold to better realise the full value of its assets,” he said.

However, the average cash cost of production per ounce increased by 18%, due to reduced mill feed grade and elevated fuel, electricity and commodity prices, but that was more than offset by the higher gold prices, with the cash operating margin increasing 79% to $A390 per ounce.

Oceana’s merger with Climax Mining, a Sydney company with Philippine gold and copper mine developments, is expected to be to be finalised by Friday. The entity, to be called Oceana Gold, will be listed on the stock exchanges of Australia and New Zealand.

Under the Oceana banner, the entity will have an estimated 4.8 million gold equivalent ounces of reserves and an expected market capitalisation of $A409 million, based on a 62c share price.

Mr McIntyre said because Oceana was going into the Philippines, market sentiment held that its overall risk profile had risen, even though the capitalisation had put it in a league of bigger companies.

The less well-known risk variables, when compared to mine operation in New Zealand, included working in a foreign country to develop a mine and dealing with labour, environmental, political and government issues, Mr McIntyre said.

For the quarter, ore processing for Oceana at Macraes increased by 19% to 1.48 million tonnes, achieved by blending ores to maximise throughput and in mid-August the mill set a daily record of ore processing at 18,286 tonnes.

No date has been set for combined rail and road transportation of gold ore concentrate from the Reefton site to the oxidation plant at Macraes, which will be transferred there via a rail head in Palmerston.

[airedale]

[quote]However, because of the decline in international gold prices, ABN had recently lowered its 12-month target price $1.25 to $1.12, Mr McIntyre said.


Makes me wonder what planet Mr. McIntyre,and ABN Amro are on. Gold is in a long term bull market, for a lot of reasons. Since he said that gold has closed above US$600,and is currently around US$618.

[troyvdh]

am i the only punter somewhat mistified re the recent fall in the share price ?

[clearasmud]

quote:Originally posted by troyvdh

am i the only punter somewhat mistified re the recent fall in the share price ?


Whats the surprise about the drop to recent support?
It was pushed up largely by traders previously
have the merger risks reduced recently?
Cheers

[airedale]

Agree Troy, I wonder if there has been a big seller reducing their stake. Don't know why they should as OGD have more potential after their recent merger with the Climax Mining, the Philipine company.
Fat Prophets have it as a Buy at 69 cents. So it should be a better buy at 66.5 cents. It has revenue from gold,copper and silver.
If you believe that gold will increase in price, and I do, then it is still a Buy.
While I am thinking about it...I will put it on my list for the 2007 ASX contest. Maybe even the NZX as well.

[Shrewd Crude]

resource stocks magazine published by Aspermont ltd did a survey relating to country risk... (a little bit dated, but still the same principles apply)
out of 20 countries Philippines places 15...
the only other contries behind Philippines was Russia 16th, India 17th, Indonesia 18th, Papua New Guinea 19th, Zimbabwe 20th the riskiest...

what does country risk rating measure?, sovereign risk, environmental hurdles, land claims, bureaucracy, infrastructure difficulties, civil unrest, natural disasters, labour relations...
I learnt country risk when Cue energy entered Indonesia, sampang, etc... the debarkle around Jerk reserves... earthquake, fighting, violence, sales agreements, weak present Infructure, Govt sucks...

I do like the OGD outlook...but, maybe the market is requiring a risk premium on Climax... suddenly a whole new company has been thrown into the mix, and maybe for some that wasnt there intention for being in OGD in the first place... large growth is harder to attain with a much larger company also...
Can anyone guess what country on this survey was the safest country in percieved risk??

[airedale]

Hi Shrewdie, how about Canada?

[Shrewd Crude]

very good guess,
Canada ranked number 2...

Well Climax shareholders did get a good offer... a 27% premium...
They should have got no premium, the honour of Rolling out with OGD should have been enough incentive...

[airedale]

Hi Shrewd, Philipines is certainly a country with a high sovereign risk. The other half of OGD's operation is in low risk NZ. So that balances the risk/reward equation for me.

[airedale]

Institutions are on board with funding.

Announcement from OGD today.

Discl: Holding OGD

[Billy Boy]

Where's the Head Office going to be, DUNEDIN ??
as it is now.

[airedale]

Why Dunedin? Head office is in Melbourne.

[Billy Boy]

Airedal.
Yes u are right. But they rent a very large office space
in Mcclaggen St Dunedin. Seams far to big. As it has
a board room, conference room, etc...
507 sq Meters in all, plus car parks, costing about
($80,000 pa all up (my guess)). Maybe they are going to
cut back or move after the new tax break :D

[troyvdh]

Gee the mkt in general has the jitters.....have held OGC for yonks and cant think of why its recently dropped 30 %...apart from the recent softness in the price of gold...but heck arent these blokes producing the stuff in ever increasing amounts.

[JBmurc]

Yeah strange the going-ons on OGC - ASX $2.46 close bid-sells with good depth
- NZX-$2.85 1 bid couple sells little depth

The company expects to achieve gold production of ~500,000 gold equivalent
ounces (AuEq) by 2009.

-I believe OGC are undervalued -from the memory banks i think OGC is in the top 5 Gold producers on the ASX -and mostly unhegded

-May have to buy a few on the next sell-off

[troyvdh]

JB....next sell off !!!.....just bought some me.....catching a falling knife I suppose..can be fun..done the same with CEN PFI AIA..oh well

[airedale]

Just the other day they announced the start up of a new -less costly-more profitable- flotation circuit ....I think....Anyway it will process all the ore from the NZ operations more cheaply. Production will also increase next year. POG presently consolidating around $US800 before the next leg up. The more that I think about it,the more that I realise that OGC should be one of my picks for the 2008 comp.
Discl: holding OGC

[airedale]

Does anyone know how to change the name of this thread to the new code ....OGC...?:confused:

[Serpie]

Ask Admin Airedale. I've just asked them to change another one.

[JBmurc]

Wish some OGC holders would sell me some cheap shares be a great Xmas present


OGC Bids -$2.75 offers-$3.60 30%+ diff ------ Current SP---2.45-ASX= 2.78nzd

[mistymountain]

I have been holding this stock for the last two years and seen share price stagnating especially since rebranding as OGC.

With the release yesterday of the Quarterly Report it seems timely to reassess this companies share price and growth prospects.

On paper it appears that OGC is making some substantial gains in terms of gold production and also growth developments within New Zealand and overseas.

However despite current high gold price there appears to be little interest from the market.

I'm happy to be told I'm missing something given I tend to be an optimist! Any thoughts and analysis?

Cheers

[airedale]

The price of gold has come off its recent high point of just over US$1000, back to around $850, most other gold stocks are weaker.
So will the pog get back up and carry the likes of OGC with it?
The long term bull market in gold is not over, should consolidate for a while before moving up again.
The Fed is printing paper money as fast as it can, that is positive for gold.

[airedale]

I have just been over at the ASX thread, and there is a new thread "Shall we hold gold shares" .
It is also relevant to this discussion.

[troyvdh]

MISTY...Im with you....been with this lot since before rebranding.....as you say all the 'ducks line up' yet a big yawn from "the MKT"....and arent the press so generous....good coverage on a regular basis.....me thinks that because OGC appears to be 'headquarted" (?) in Canada the MKT aint interested...( bit like CDL...Singapore)....
...mind you volumes are pathetic......BUT...as you say....this company is producing the stuff ..seriously.....

...what we could do is make a few phone calls to "the company" and just ask them some questions...like "with some forecasts perdicting gold to maintain historic highs..and OGC producing the stuff..and the SP falling.....whats happening and why......
.....does the receptionist....staff have shares in OGC...?????.....should anyone buy OGC...

Cheers

[JBmurc]

Well placed another buy order 265 which with the asx price at 220's is fair will i get filled not likely .....................Wish I transvered all my funds into AUD/asx market least there I could buy the shares easy......... damm weak exhange rate......seems crazy that OGC is what the 3-4th largest gold producer on the ASX -production based in NZ -yet of late OGC highest volume on the NZX is only 20-30,000 OGC must see be listed on the NZX as a wast of money

[airedale]

Hi, JB, after a reasonably good annual report, some punters on the ASX decided to get out. So down 14 cents there. It looks like a buy to me.
The market moves mysteriously at times. One of my oilers SAE today reported increased production from new wells......so the SP is marked down by 1.5 cents.:confused:

[JBmurc]

Hi, JB, after a reasonably good annual report, some punters on the ASX decided to get out. So down 14 cents there. It looks like a buy to me.
The market moves mysteriously at times. One of my oilers SAE today reported increased production from new wells......so the SP is marked down by 1.5 cents.:confused:

yeah looks like a OGC nzx holder wanted out today aswell which was fine by me..if the sellers reading this thanks mate- OGC will go nicely with my NZO holding two solid long term NZX holds

Now bring on Higher grades & Gold prices

[JBmurc]

found on HC....must be why it had the massive 30% selloff

-MGB allows mining firm to resume its operations

Despite a cease-and-desist order issued by Vizcaya governor

By CEASAR M. PERANTE

KASIBU, Nueva Vizcaya — Oceana Gold Philippines is set to resume work on its Didipio gold-copper project at the Quirino-Nueva Vizcaya boundary after it stopped its operation for about one week following a cease and desist order (CDO) issued by Nueva Vizcaya Gov. Luisa Lloren Cuaresma against the Australian mining company.


But despite Cuaresma’s CDO, the regional office of the Mines and Geosciences Bureau (MGB) in Tuguegarao City allowed the resumption of operation of the mining firm.

Earlier, Cuaresma ordered the Oceana Gold and Delta Corp. to suspend immediately what she described as "earth-quarrying activities" in Barangay Didipio, Kasibu , Nueva Vizcaya.

She further directed the company not resume "quarrying operations" at the site without proper instruction from her office.

To enforce her order, Cuaresma literally led a group that set up a barricade at the mine site last week with the assistance of the Nueva Vizcaya provincial police office.

Citing pertinent provisions of the Local Government Gode, the lady governor maintained that the province has the right to demand payment for quarrying fees.

Defending the Didipio gold-copper project, Environment and Natural Resources Secretary Lito Atienza wrote to Cuaresma a letter citing laws covering large-scale mining operations.

"Please allow us to clarify that pursuant to Section 48 of the Philippine Mining Act of 1995, a Financial Technical Assistance Agreement (FTAA) contractor has the right to extract or remove sand and gravel or other loose materials without need of permit. The definition of "quarry resources" does not include the removal of earth materials that are being moved and cleared by Delta Corp. and Oceana Gold. Based on the foregoing provisions, the ongoing activities in the areas in question cannot be categorized as quarrying. The DENR deems the ongoing activities as part of the development of the FTAA area in accordance with Project’s approved Declaration of Mining Project Feasibility," Atienza stated in his letter.

Atienza noted that the cease-and-desist order has resulted in undue disruption or delay of Oceana Gold’s operation.

To break the impasse, Mines and Geosciences Bureau Director Horacio Ramos flew in to Didipio and held a dialogue with the members of Cuaresma’s group who included Vice Gov. Jose Gambito Jr., and Kasibu Mayor Romeo Tayaban.

Quirino Gov. Dakila Cua, who was visiting the mining site, was requested to join the parties. Cua’s province has a pending boundary dispute with Nueva Vizcaya, particularly over Didipio miningimpact zone.

In a diplomatic way, MGB Director Ramos echoed the message of Atienza during the dialogue witnessed by Didipio residents. He cited laws governing largescale mining projects.

The Didipio gold-copper project is one of the priority projects under the national government’s program to revitalize the mining industry.

Ramos asked the local officials to list all social and environmental concerns about Oceana Gold’s operation. He also invited Cuaresma and Gambito to attend a tripartite meeting that will be held at the DENR central office in Manila to address problems arising from the Didipio project.

During the dialogue, Ramos suggested that because the talks involved local and national laws, the opinion of the Department of Justice may be sought.

[airedale]

I don't believe it. With all this stuff bubbling in the background, that the company gives it's annual report and doesn't mention it.

[JBmurc]

OGC.TO canada listing back up 1.70 after some heavy selling(low 1.40) on open so down atm 16% hopefully the ASX listed OGC also bounces back 15%+ today esp. as I brought another 6800 at 1.66 and CFD long 6600 at 1.64 hopefully OGC can make a postive annoucement on Didipio going forward to wake up the stupid market selling

[clearasmud]

it suprises me there is no clarification from the company.
management to me leaves something to be desired.
i hope they are up to building this business.


OGC.TO canada listing back up 1.70 after some heavy selling(low 1.40) on open so down atm 16% hopefully the ASX listed OGC also bounces back 15%+ today esp. as I brought another 6800 at 1.66 and CFD long 6600 at 1.64 hopefully OGC can make a postive annoucement on Didipio going forward to wake up the stupid market selling

[JBmurc]

CEO Open Briefing from Didipio 16 may-worth having a look big increase in costs to development sounds like the major negative driver of the SP that and gold falling
-Still now that gold prices are moving up and IMHO will go alot higher that most bullish goldies think............. $1500 min in 09
-In 2009 production will increase to a run rate of approximately 500,000 gold equivalent ounces per annum. (even if they get close OGC is still a major ASX producer)
-even as costs per Oz will run alot higher for OGC I believe the Gold price will also keep pace if not run higher. $400-$500oz margin x 400,000oz = $160-200mill gross profit(not incl copper silver etc)
-at 1.70 ASX OGC a strong buy --and is looking like a takeover target at current 280mill Mrktcap

[airedale]

Agree,JB, the time to sell was a long time ago. The cycle has turned and with the increase in the POG, and the bad news out of the way. It now looks like a buy again....and as a possible takeover target it may attract attention.
Discl: holding OGC

[ronthepom]

Agree,JB, the time to sell was a long time ago. The cycle has turned and with the increase in the POG, and the bad news out of the way. It now looks like a buy again....and as a possible takeover target it may attract attention.
Discl: holding OGC

Hi airedale'

enjoyed our drink the other afternoon, hows your rpm going ? looking good eh/

glad i bought up large.Have been watching your ogc hope it pansout ok. Ron

[clearasmud]

Just bgt some more today.
I have done poorly with gold stocks but imo they will turn sooner or later.
the only other area i invest in now is petroleum companies.

disc 20,000 ave au$1.88

ps i,m loving RPm as well. have 330k at 6.9c

[JBmurc]

would have thought the SP would have held its ground now that GOLD has rebound looks like I could have saved myself at least 20% if I had waited....aarrrrgggg dammm

-Earlier this week, we announced that capital costs to commission the project
have been revised to US$320 million. While we recognize this is a significant
increase, Didipio is one of the highest grade gold-copper porphyries in the
world today and this remains a very robust project. Payback on the project is
just three years using an US$800 per ounce gold price and US$3.50 per pound
copper price. The recent fall in our share price certainly does not reflect the
strong financial returns from the project even after allowing for the higher
capital costs. Didipio will have a very strong impact on OceanaGold's
production and operating cash flows for at least l5 years.

-Sounds Great esp. as I could see alot higher Gold prices over the next couple yrs

We’ve increased our cash cost
guidance for the year to US$490-$520 per ounce to reflect the higher power
and fuel costs we are experiencing, along with the stronger New Zealand

-I'm confindent the NZD will weaken ,Not so the fuel prices


We are well down the track on some debt financing options and any needs over the debt financing will be equity with priority given to our loyal shareholders.

-Cap raising soon ?main reason for sell-off (no doult short sellers helping) Some free opts would certainly open my wallet to helpout

-holding-18900 nzx 4,000 asx

[Ponda]

What on earth is happening to the sp on this stock. Every time that I look it just seems to go down by big % points.

I would have thought that with the POG going up then this stock would also go up. I agree that the capital cost to commission the project has risen, however, so to has potential return on investments.

Any ideas or solutions out there.

[clearasmud]

Hi,
I'm just hanging in there too.
Say they need $100m that could mean 100m more shares@ $1.
I hope existing s/holders get the opportunity to fully participate.
I wondered if the shares have been shorted for this reason??

[JBmurc]

Hi,
I'm just hanging in there too.
Say they need $100m that could mean 100m more shares@ $1.
I hope existing s/holders get the opportunity to fully participate.
I wondered if the shares have been shorted for this reason??

yeah for sure going be depressing factor on the SP till the markets are happy that OGC can raise the funds I really home they don't have to hedge any of there new Didipio gold copper mine I'd be more than keen to take up another 10,000@$1 Cap raising if that will put the project back on track

OceanaGold today announced that the Company has undertaken initiatives to control project expenditures until supplemental financing is completed for the Didipio project in the Philippines. A number of contracts will be delayed or temporarily suspended in order to affect this strategy. As a result, the project completion date is expected to extend beyond mid-year 2009

[JBmurc]

0909 [Dow Jones] STOCK CALL: Merrill Lynch upgrades Oceana Gold (OGC.AU) to Buy from Neutral, says selling has been overdone. OGC has fallen 65% since its March peak and ML says it now offers "compelling value to investors". Selling has been triggered by higher than expected capex at its Didipio project in the Philippines; ML says management has clarified capex and the project now looks cheap on a per ounce basis. Says a change in gold price assumptions is expected to boost the resource at Didipio and improve project economics. Target price upped to A$1.60 from A$1.45. OGC last traded at A$1.04. (APW)

[shasta]

0909 [Dow Jones] STOCK CALL: Merrill Lynch upgrades Oceana Gold (OGC.AU) to Buy from Neutral, says selling has been overdone. OGC has fallen 65% since its March peak and ML says it now offers "compelling value to investors". Selling has been triggered by higher than expected capex at its Didipio project in the Philippines; ML says management has clarified capex and the project now looks cheap on a per ounce basis. Says a change in gold price assumptions is expected to boost the resource at Didipio and improve project economics. Target price upped to A$1.60 from A$1.45. OGC last traded at A$1.04. (APW)

Am looking at OGC myself, seems cheap in comparison to its Aussie peers.

The copper credits interest me too, just hope they sort out the finance for the Phillipines mine!

[Dr_Who]

0909 [Dow Jones] STOCK CALL: Merrill Lynch upgrades Oceana Gold (OGC.AU) to Buy from Neutral, says selling has been overdone. OGC has fallen 65% since its March peak and ML says it now offers "compelling value to investors". Selling has been triggered by higher than expected capex at its Didipio project in the Philippines; ML says management has clarified capex and the project now looks cheap on a per ounce basis. Says a change in gold price assumptions is expected to boost the resource at Didipio and improve project economics. Target price upped to A$1.60 from A$1.45. OGC last traded at A$1.04. (APW)

Do you have a link to the research? I am interested into looking further into this stock.

[JBmurc]

-Hopefully funds can be raised soon the more waiting the more pain for SHers



Date of lodgement: 25-Jun-2008
Title: Open Briefing®. OceanaGold. CEO on Didipio Financials, Financing & Timetable
Record of interview:
corporatefile.com.au
OceanaGold Corporation (“OceanaGold” – TSX, ASX and NZX codes
“OGC”) recently announced it has undertaken a number of initiatives to control
expenditures at its Didipio project in the Philippines until supplemental
financing is completed. A number of high expenditure contracts will be
delayed or temporarily suspended. Do the project financials remain robust?
On what price assumptions?
CEO Steve Orr
Didipio still has a robust rate of return and we are committed to developing the
project. Based on a gold price of US$800 per ounce and a copper price of
US$3.50 per pound, Didipio’s rate of return is 22%. In addition, the Company
currently has US$95 million in cash to ensure that the primary value-adding
initiatives at the project continue while we complete our supplemental
financing.
corporatefile.com.au
Can you reiterate your capital cost estimates? How confident are you on that
number?
CEO Steve Orr
The capital cost for Didipio remains at US$320 million, which was the revised
figure we announced in May 2008. This is a conservative forecast that
incorporates increases for commodity and labour inflation and includes the
project scope changes such as the power generation plant. In addition, we have
now accounted for all taxes and foreign exchange increases since the USD has
declined against almost every other global currency. These changes increased
the capital costs to US$287 million and the project contingency has been
tripled to US$33 million for the total US$320 million.
2
corporatefile.com.au
What additional funding is required on top of your current cash? What is your
funding strategy? What support or interest are you getting for these funding
options?
CEO Steve Orr
We need about US$185 million in additional cash and are considering a
number of options to secure this funding. Alternatives include conventional
and hybrid debt facilities, a placement to current shareholders and JV/merger
opportunities.
There has been significant interest in these options from various financial
institutions and other gold companies.
corporatefile.com.au
Are there penalties involved in suspending major cost items such as contractor
work?
CEO Steve Orr
There are costs associated with suspending contractor work and we are
currently in discussions with the affected parties to minimize those costs while
maintaining activities that add project value.
During this period of reduced activity, we are evaluating options to improve
project development efficiency, and thereby reduce costs, through
consolidation of activities under fewer contractors. We are also restructuring
our community and Provincial Government engagement program.
corporatefile.com.au
What revisions have you made to the project development timetable? When do
you expect project completion?
CEO Steve Orr
There may be a delay to the project commissioning date as a result of this
partial suspension. It really depends upon how long it takes for us to complete
one or more of the financing options and secure funds. It is safe to assume that
each month of partial project suspension will add at least the same amount of
delay to the project commissioning date.
corporatefile.com.au
Given the possible delay to commissioning of the project, what support for the
project are you receiving from the Philippine National Government?
CEO Steve Orr
The Philippine National Government has been very supportive of OceanaGold
and the development of Didipio. Didipio is termed as a priority resource
development project by Lito Atienza, Secretary of the Philippine Department
of Environment and Natural Resources.
3
corporatefile.com.au
You’ve made a decision to conserve cash until financing is completed. To
what extent will that impact capital development and exploration programs at
your New Zealand operations? What EBITDA are you currently generating
from your New Zealand operations and what do you expect in the future?
CEO Steve Orr
Our expenditure management is focused on the Didipio project. No activities
have been curtailed at our operations in New Zealand. We are still conducting
the planned development for ongoing production at the Macraes and Reefton
Goldfields mines. In addition, exploration has been maintained at Macraes in
New Zealand and at the Didipio Valley in the Philippines.
We generated US$22 million EBITDA in the March quarter 2008 from our
New Zealand operations, but higher fuel and electricity costs in the June
quarter will reduce our margin. Operationally however, we have achieved
improvements this quarter in ounce production from the Frasers Underground
and in recoveries at the process plant.
corporatefile.com.au
Does Didipio remain central to OceanaGold’s longer term growth strategy?
CEO Steve Orr
Didipio is still an important part of OceanaGold’s growth strategy. This is a
long life and world-class deposit with robust cash flows. We believe it will be
the first of a number of deposits that we mine in this prospective mineral
district.
corporatefile.com.au
Thank you Steve.
For more information about OceanaGold, please visit www.oceanagold.com or
contact Darren Klinck, Vice President, Corporate and Investor Relations,
OceanaGold Corporation, telephone + 61 3 9656 5300.
For previous Open Briefings or to receive future Open Briefings by e-mail,
please visit www.corporatefile.com.au.
DISCLAIMER: Corporate File Pty Ltd has taken reasonable care in publishing the information contained in this Open

[JBmurc]

Do you have a link to the research? I am interested into looking further into this stock.

No got the imfo off HC go to the OGC website prob be there with other analyst reports

[Dr_Who]

No got the imfo off HC go to the OGC website prob be there with other analyst reports

Ok thanks.

Will look more into OGC and may put some away if the numbers stack up.

[Phaedrus]

You guys must all be incredibly devout contrarians.
When did this stock ever look any good?

Anyone can see that it is an accelerating downtrend. The QStick indicator (Up days vs Down days) has never been in positive territory. The On Balance Volume is in an accelerating downtrend and has never been above zero. What's to like?

Down another 10% today (so far!)

http://h1.ripway.com/Phaedrus/OGC625.gif

[JBmurc]

What's to like?-
Well for the start you have to be bullish on gold that and believe that OGC can raise the funds to get production going in the Philippines thats we'll we see OGC get re-rated alot higher.
Reason I brought into OGC which is going be held to 2010 is on there basic fundenmentals things like-

GOLD-Proven and Probable reserves -3.48mt au>Measured and Indicated -5.88mt au
COPPER- ---290,000t > -600,000

-OceanaGold drilling on great tenaments should increase the above amounts alot IMHO
-OGC will produce 270,000oz Gold for 08 going forward to 09.. 10.... 350,000oz+ 15,000cu+
-OGC cash costs going forward Using a US$2.50 / lb Cu as a bi-product credit should be alot lower than $500 even at these high fuel prices
-OGC's current market cap-171m asx they need another US$185 million
-the total cost of Didipio Project will payback within 3yrs (could well be alot less)
-Overall If you don't believe Gold's going wellover 1000oz don't buy OGC
-Compare OGC to many of the other mid cap Goldies and you can soon see even at a 400mill Mrktcap If things go to plan OGC should have a much higher value for one look at PNA-Mktcap-1.5b

[Phaedrus]

I appreciate that you have a lot of emotional (and financial) capital invested in this company, and that you are confident that it will come right in the long run. Any criticism I make is based solely on the timing of your purchases rather questioning the means by which you justify them.

Taking the dates you were buying and applying them to this chart, you have been averaging down by buying more OGC at the equivalent price of $2.40, $2.08 and $1.54. All that time, OGC was in a clear downtrend and you were throwing good money after bad. Every single one of these positions is well underwater and OGC is still heading South with no hint of a reversal as yet. Why buy into a downtrending stock? Why not wait until the downtrend ends before buying?

You say you are bullish on gold, but it too is in a downtrend. Even if you are right and gold is going to go well over $1000, is now the best time to be in gold stocks?

I have plotted OGC vs Gold on this chart. You could hardly say they were tightly coupled so even if gold were to rise, it would appear that this may well fail to be reflected in a rising OGC shareprice.

From what you have written, I can see the future potential this stock may have, but until the market begins to agree with you, you are on a hiding to nothing.

http://h1.ripway.com/Phaedrus/OGCgold.gif

[JBmurc]

Yeah for sure my paper loss is Large atm yeah I should have waited to the chart turned and had broken throught its trend lines and had confimed a bullish tread sounds so easy really.

At the time I had just sold my PPP.nzx for a 20% profit 37c At the time my Portfilo's were mostly made up of energy shares, the NZD/AUD also wasn't good so decided to look for a good NZX invesment outside energy (my only other nzx share was 100k in NZO) As I had sold down my ASX goldies and was bullish on gold I decided to buy into OGC
As brought OGC on the NZX where the volume is very low so the SP can move massively eitherway I placed a large 2.65 nzx bid (bids 2.50 sells 2.80 at the time both small orders) when the asx.OGC was 2.20-2.30
I guess looking just at the NZX.ogc I should have waited to the price went above $3 at the time and stay above it for a week or so then bid prob 3.20-3.30 to get the same volume or as the case fall 50% and just keep waiting till it moves but to say 2.50 before looking a buying?

-Fundenmental I believe OGC will re-rate alot higher come late 09 and once IRD pass on me my Tax-losses I'll be buying more through the Cap-raising no doult.

-I also brought CFD longs and ASX position in OGC which I sold out of with a small loss

[Dr_Who]

I am keeping an eye on this one. Will want to wait and see how they will structure their financing. I think this is abit like IRN with huge potential. I made good money from LST which had exposure to IRN. But have to wait till they sort out their problems.

[airedale]

Hi Phaedrus, nice to know that you are keeping an eye on OGC. Yes I know that technically I should not be here, but for various reasons I am here.
I'd be obliged if you would post the bottom and consequent upturn after it happens....just in case I miss it.:)

[shasta]

Hi Phaedrus, nice to know that you are keeping an eye on OGC. Yes I know that technically I should not be here, but for various reasons I am here.
I'd be obliged if you would post the bottom and consequent upturn after it happens....just in case I miss it.:)

First technical signs of strength & i'll be jumping in too.

Will watch the chart closely

[Phaedrus]

Airedale, OGC is not on my watchlist but here are six suggestions for technical indicators that you might like to use to monitor this stock. These have been tailored to the steep downtrend of the last 3 months and will enable you to objectively assess when this starts to weaken.

http://h1.ripway.com/Phaedrus/OGC627.gif

[airedale]

Thanks, Phaedrus:)

[Ponda]

Hi All, JBmurc, Dr Who and Shasta,
This thread hasn't featured for some time. The SP has risen 100% in the last two months and there has been not comment from any of you in respect to this.
I'm just a newbie and am interested in others views in respect to this share. Is this a case whereby people should be averaging down on an up trending stock.

Disc: Hold OGC, HGD, NZO, WHS, SLG, PPP

[shasta]

Hi All, JBmurc, Dr Who and Shasta,
This thread hasn't featured for some time. The SP has risen 100% in the last two months and there has been not comment from any of you in respect to this.
I'm just a newbie and am interested in others views in respect to this share. Is this a case whereby people should be averaging down on an up trending stock.

Disc: Hold OGC, HGD, NZO, WHS, SLG, PPP

Hi Ponda

To be totally honest, since the Didipio project stalled, OGC has slipped off my radar...

I'm also not one to chase stocks once they have run.

Whilst i've been out of the market, the likes of NEM, AGG, LGL, DOM have risen quite nicely (check out there charts).

Might have missed the "GOLD" boat :rolleyes:

[grottus]

I bought a couple of slices of this share over the last couple of weeks and I've made a pretty good profit.

Look, the way the world economy is going its a given that, internationally, investors are going to turn to gold - simply because paper-based money in some places is proving to be increasingly worthless. The price of gold rises because of demand.

I bought physical gold and backed myself up with shares in a producing gold miner with excellent reserves in a politically stable part of the world. I'm new at this game but it seems to me that if something is going to be in demand, it makes sense to have a share in the company that is able to efficiently satisfy that demand.

I'm picking that this crisis has a fair way to run yet and the potential for gold to become more valuable is a good bet.

Let's see where the road takes us ....

[Sideshow Bob]

Bottomed out at about 23c, and now trading over $1 - nice if got in at those levels.

I heard a whisper that a large Asian comapny was running their ruler over OGC??

[Ish]

One reason to consider being wary of oceana gold is that (I believe) half of their production is hedged at a very low price for the next year or so...

[Phaedrus]

I usually post fairly complex MetaStock charts that few of you here are able to replicate on your own PC. Here is a bog-standard OGC chart using SuperCharts from Direct Broking - something you all have access to.

http://h1.ripway.com/78963/OGCnz226.gif

Can you see the 30 day moving average "Buy" signal?
Can you see the 90 day moving average "Buy" signal?
Can you see where the downtrend ended and the uptrend began?
Can you see where the volume kicked in?

[clearasmud]

Yes but when is it time to sell??

[Phaedrus]

Yes but when is it time to sell??I was hoping you would have been able to work that out for yourself!

Sell when the shareprice breaks below the 30 day moving average.
Sell when the shareprice breaks below the 90 day moving average.
Sell when the uptrend ends and a downtrend begins.
Increased volume on "down" days would provide confirmation of any of the above.

[peat]

Phaedrus
you been pumping and dumping again ?!


http://www.biggie.co.nz/interaction/forum/images/smiles/krakrani.gif

just kidding

[Ponda]

I found this interesting comment in the Crown Minerals website this morning. I think that it has already been announced to the market, but it is easy to read.


Reefton mine exceeds expectations again for OceanaGold
11 March 2009 - OceanaGold’s Globe Progress gold mine near Reefton on the South Island West Coast more than doubled production of gold during 2008 while near-mine exploration drilling to identify possible high grade reserves is underway.

The company’s report for the full 2008 year says the concentrate plant produced 76,132 oz of gold compared with 37,897 oz in the 2007 year.

The Reefton operation had an “exceptional performance”. OceanaGold says.

Gold output in the fourth quarter to December 31 was 22,910 gold ounces which slightly exceeded expectations. This was substantially above the third quarter output of 17,427 oz and well above the 16,687 oz produced in the fourth quarter of 2007.

The Reefton plant’s dry and wet commissioning began in early 2007 with official commissioning in mid 2007.

OceanaGold says total material through the mill in the 2008 fourth quarter was 319,000 tonnes. This was a further improvement on the third quarter and about 27% above design throughput capacity. Continued improvement in both mining and processing areas was demonstrated over the year.

Total throughput for the 2008 year was just under 1.2 million tonnes and almost 20% above design capacity. Overall gold recovery for Reefton remained stable at 82.5% for the quarter, resulting in 81.8% for the year.

Oceana Gold says a drill programme began during the fourth quarter to test for extensions of mineralised zones on the Globe-Progress mining permit. Analysis of these results would continue early into 2009.

An exploration programme in 2007 successfully extended the mine’s life by one year to 7 plus years.

The company plans to upgrade some of its 1.4 million oz of resource at Reefton to reserves, which are currently 530,000 oz.

Sources: OceanaGold and Lindsay Clark

Last updated 12 March 2009


DISC: Hold NZO, PPP, OGC, HGD, SLG

[Yankiwi]

Yankiwi is going gold mining!

I've decided to take a punt on OGC. I bought a small entry @ $1.00 yesterday.

http://www.sharetrader.co.nz/attachment.php?attachmentid=1333&d=1237405052

It seems to be in an obvious uptrend. Above the MA30, well above the MA180, but my final deciding factor was all those green lines down to the bottom right. Being a Yank, I like green :D

[Ponda]

Hi Yankiwi,
Good choice. I have liked OGC for a while now and with a big move in the POG overnight it will be nice to see this reflected in both HGD and OGC shareprice today.
I wasn't able to open the attachment that you have included. Are you able to cut and paste it?

DISC: PPP, HGD, OGC, NZO, SLG

[Yankiwi]

I wasn't able to open the attachment that you have included. Are you able to cut and paste it?


Hi Ponda,

The attachment is only the chart which shows up in the message. I can see it fine, can you not see it?

[Year of the Tiger]

Hi Ponda,

The attachment is only the chart which shows up in the message. I can see it fine, can you not see it?

I can't see it either. Just a little square box with an x in it. :(

YOTT

[Yankiwi]

I'll try it again, and cross my fingers :)

[Ponda]

Yankiwi,

Thats great, I'm sure that we can all see it now.

[Yankiwi]

I'll try it again, and cross my fingers :)

Hey Phaedrus,

Would you please consider posting a higher tech version of a chart for OGC, along with your very worthwhile opinions? It may end up as looking like a worth while investment for yourself.

I'm thinking I'm starting to get this right now. Uptrending with large volumes, I am a little unsure of the meaning to the RSI, which does seem to be in quite a downtrend.

I'm hoping RSI stands for something like "Relative Strength Indicator" ;) and not "Really Stupid Investment" :rolleyes: lol

[Phaedrus]

Who needs hi-tech? More can be less. You don't need me because all you really require is right there with Supercharts. Free to all.
Specifically :-
(1) Note the falling volume
(2) The falling RSI is bearish in the short-term
(3) Ditto the Stochastic oscillator.
(4) MACD gave a sell signal on 6/3/09
(5) Short-term downtrend began on 10/3/09

In spite of all the above,

(6) The 30 day moving average remains unbroken.

So, short-term traders will be out at a good profit. Those interested in the "medium-term" will still be in.

Want another indicator? Another "opinion"? Grab a ruler and plot a trendline - either on-screen or on a printed chart.

[Yankiwi]

Who needs hi-tech? More can be less. You don't need me because all you really require is right there with Supercharts. Free to all.
Specifically :-
(1) Note the falling volume
(2) The falling RSI is bearish in the short-term
(3) Ditto the Stochastic oscillator.
(4) MACD gave a sell signal on 6/3/09
(5) Short-term downtrend began on 10/3/09

In spite of all the above,

(6) The 30 day moving average remains unbroken.

So, short-term traders will be out at a good profit. Those interested in the "medium-term" will still be in.

Want another indicator? Another "opinion"? Grab a ruler and plot a trendline - either on-screen or on a printed chart.

Thanks for the insight, and sorry to bother you! :cool:

[Ponda]

Must be happy today Yankiwi to see those two trades go through today.
There hasn't been much volume for a long time.
Are you still holding at $1.05?

Disc: Holding OGC amongst others

[Yankiwi]

Must be happy today Yankiwi to see those two trades go through today.
There hasn't been much volume for a long time.
Are you still holding at $1.05?

Disc: Holding OGC amongst others

Hi Ponda,

I was holding @ $1.00 but have since sold them off with the DOW showing some life and the spot gold price dropping. I lost a few peanuts on the deal but felt safer. I may have another look in the future.

[Ponda]

Yankiwi,
Sorry for that mistake.
Have you seen OGD's announcement this morning??
Makes for great reading and it will be very interesting to see what it's SP does for the rest of the day. Maybe thats why there were a few more trades last week.

DISCL: Hold OGD amonst others

[whatsup]

Any comments on the ann today, looks like great gold find of extension of vein/reef close to existing mine which should add to the reserves of that mine, any comments is it worth buying on this news, very little trades today or is the company rubbish, it has had a great run this year so that may be it for now!!!

[paul29]

OceanaGold says production up 42%April 29, 2009 - 6:49PM
Miner OceanaGold Corp has predicted a buoyant market for gold in 2009, and says it will focus on exploration.

The company, which operates mines in New Zealand the Philippines, released its outlook in its annual report on Wednesday.

"The outlook for gold in 2009 is considerably brighter," the company said.

It reiterated its 2008 operating profit before interest, income tax and unrealised gains and losses on hedges, was $13.5 million compared to a $34.1 million loss in 2007.

It said gold production for the year was up 42 per cent to 259,812 ounces.

The company's shares ended the day 4.43 per cent up after the news, putting on 3.5 cents to 82.5 cents.[aus]

[Ponda]

OceanaGold in for another rsie today. Up 10% already. This is it's second run this year and after the anouncement on Wednesday of a 42% increase of gold production I feel that this run may be a little bit longer than the last run.

Selling depth is very low with only 26,000 sellers compared with nearly 100,000 buyers. 93,000 shares traded today.

Maybe it's time to stop calling this thread "OGC - Trouble at the mine" it's apparent that there is anything but trouble at the mine.

[Ponda]

Another good lift in the share price yesterday on no new ann.
Gone up from $1.15 to $1.36 in a very short time.

[Ponda]

Up to $1.46 at the moment.
Are you kicking yourself Yankiwi??

[bob.not.a.builder]

Another good day today, up 12%. However very little trading volume???? How long can it last?

[corporateraider]

I am picking there is still a bit more. Remember not too long ago the market was concerned about the ability of the company to meet its debt requirements! Now the comapny says it has that covered.
Even a rough extrapolation of the last quarter (when gold was cheaper) suggests that the price should be over $2. I have it a little higher than that so I am not selling yet!

[Ponda]

OGC have been placed into a TH this morning for a 'book build'.
Are book builds generally positive or negitive for a share-holder.

Thanks in advance.

[JBmurc]

What Does Book Building Mean?
The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors.

[elZorro]

http://www.odt.co.nz/news/business/67894/oceana-gold-posts-half-year-profit-turnaround

Still a bit of work ahead for OGC to produce the perfect balance sheet, but digging some money up out of the ground (a tried and true recipe) seems to be working wonders.

-elZorro-

[elZorro]

Not much happening there at OGC as far as press releases, but with the POG going up you'd think this company can only improve on its stellar performance this year. Some overseas brokers think OGC is undervalued by at least half.
Most recent Crown Minerals press release is below.


OceanaGold raises $30m mainly for exploration at NZ mines
— filed under: News, Minerals
10 August 2009 - OceanaGold has successfully raised A$24.2 million (approximately NZ$30.5 million mainly to carry out exploration around its Macraes and Reefton gold mines in New Zealand).

The interim chief executive officer and chief financial officer of OceanaGold, Marcus Engelbrecht, said the funds raised had the potential to materially extend the life of Macraes and Reefton.

The focussed brownfields exploration over six to 18 months would target the conversion of existing resources into reserves with a near-term objective of a 20-30% conversion of 600,000 to 900,000 oz of gold into reserves.

This would equate to an additional three years of mine life. OceanaGold said that historically it had achieved a conversion rate of 50-60%.

Measured and indicated resources at its New Zealand mines were 3.15 million ounces with inferred resources of 1.49 million ounces.

Proven reserves at its New Zealand mines were 0.60 million ounces and probable reserves 0.85 million ounces.

There was currently a difference of 3.19 million ounces between resources and reserves.

The drill programme would include target drilling for the Frasers underground Panel 3, which is down dip of Panel 2.

An infill and step-out drill programme would also be carried out at the Panel 2 deeps discovered earlier this year, where high grade mineralisation had been located below the base of current reserves.

Other drilling would be carried out at the open pits at Macraes and at near mine targets at the Reefton mine.

Sources: OceanaGold and Lindsay Clark
Last updated 10 August 2009

[elZorro]

Promising results at Oceana Gold's test sites
Home » News » Business
By Simon Hartley on Tue, 15 Sep 2009
News: Business
A second round of test drilling below Oceana Gold's Frasers underground tunnel at Macraes in East Otago has been completed and returned "promising" results.

A third programme is due to start by the end of the month.

In late-July, 19-year-old Oceana raised $30 million to expand its exploration programme which it hopes could extend its mine life by a further three years after 2014.

The past week's high inter-national gold prices, above $US1000 ($NZ1417), have boosted many gold producers' shares around the world.

Yesterday, triple-listed Oceana's shares were trading up more than 3%, around $1.35 in Australia, on good volumes.

By April, Oceana had drilled 39 holes around the Frasers tunnel area, from the surface and from within the tunnel, and has just completed a further 23 holes into a sub-parallel area 10m-20m below the existing Frasers underground mining operation.

Oceana interim chief executive Marcus Engelbrecht said from the recent 23 holes drilled there were gold grades "of a higher average tenor" than those at present being mined underground.

He mentioned two holes which over 7m of drilling each showed a gold grade of respectively 4.72g per tonne (g/t) and 4.31g/t.

"While it is still early in the exploration process, the grades and widths look promising.

"We are hopeful that we can continue to expand and advance this deposit to a stage where it can be integrated into the mine plan by late next year," Mr Engelbrecht said in a statement yesterday.

Based on results of the 39 and 23 holes drilled to the end of July, Mr Engelbrecht said estimated gold grades were at 3.9g/t and 4.1g/t "The panel 2 deep deposit is an exciting new area of the Frasers underground that we believe has the potential to expand further to the south and east," Mr Engelbrecht said.

The most recent drilling has extended the estimated resource by about 200m to the northeast.

The test drilling around panel 2 within the underground development is part of a $10 million exploration programme this year to find new estimated resources and convert them into mine reserves, management said at the time of the first results coming in.

Craigs Investment Partners broker Peter McIntyre said if the drill testing "comes to fruition" and proved a financially viable resource could be mined, it would extend the mine's life, a scenario which was underpinning the recent increase in Oceana's share price.

The $70 million Frasers underground development will eventually have 21km of tunnels around its main 3.5km decline and contribute to Oceana's forecast record 280,000-300,000 ounces of gold production this calendar year, which is also sourced from open pits at Macraes and in Reefton on the West Coast.

For the half-year to the end of June, Oceana achieved a turnaround in fortunes, from a $US30.4 million ($NZ46.7 million) after-tax loss last year for the same period, to a $US49 million ($NZ75.3 million) profit, on the back of currency gains on hedged gold and reduced production costs.

Great turnaround in fortunes for OGC, they look to be a big employer for a few years yet.

[Jess9]

OGC had a good late run yesterday on the AUS market. Looks like it may follow through today. Boy the NZ market listing lags. 1.40 + today (NZ)?



Discl hold a handful.

[elZorro]

What has happened to OGC? Looks like the market is revaluing this solid gold producer today :)

[Aeneas]

MEDIA RELEASE
10 November 2009
OCEANAGOLD ANNOUNCES A 42% INCREASE TO MINERAL RESOURCES
AT MACRAES GOLDFIELD 1
Highlights
Updated Resource Estimate Delivers:
• an increase to the total Macraes Inferred Resource inventory of 1,291,000 ounces (129% increase)
• an 6% increase to the total Macraes Measured and Indicated Resource inventory of 153,000
ounces increasing it to 2,550,000 ounces
(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) is pleased
to announce an updated mineral resource estimate for the Macraes Goldfield located in the South Island of
New Zealand.
The Macraes Mineral Resource Inventory, updated to June 30, 2009 has increased against the previous,
December 31, 2008 inventory by 153,000 ounces of Measured and Indicated Resource and 1,291,000
ounces of Inferred Resource. The majority of these ounces can be attributed to the addition of the Round
Hill resource to the inventory.
Paul Bibby, CEO commented, “This updated resource estimate has materially increased the resource base
at Macraes and is an important step towards our objective of extending the mine life of the operations in
New Zealand. The current brownfields exploration drilling program is active on a number of fronts,
particularly Round Hill, where the drilling is focused on upgrading Inferred Resources to the Indicated
category. This program will be completed this quarter and will allow us to undertake a study to examine
expanding the mineable reserve.”

[kerryo]

Not many sellers .... would someone mind putting a few more up for sale please! :D

[elZorro]

Not many sellers .... would someone mind putting a few more up for sale please! :D

How about 230k shares for a start today: someone's making a huge bet that OGC has plenty of go in it yet..

[kerryo]

How about 230k shares for a start today: someone's making a huge bet that OGC has plenty of go in it yet..

Another big bid from an International buyer ... 670,00 shares.

[elZorro]

This share looks a safe bet, mining stocks in AU doing very well today, I'd be surprised if the worm for OGC isn't heading towards $3 or more.

[elZorro]

OGC Up 8% so far today..not bad daily interest if you can get it :)

[kerryo]

Still flying along:D

[elZorro]

Still flying along:D

Damn we're good :confused: Guess who sold lots of these a few weeks ago to build up some cash reserves :eek:

[corporateraider]

elZorro
This rise was hard to predict. Sure it's looked undervalued for a while. This recent rise isn't just due to the increasing gold price as a significant proportion of production is still hedged and so they don't receive the full benefit of the price increase.

Disc: Hold a few

[geezy]

low volume and lots of buyers

[Cannibal]

MEDIA RELEASE
18 January 2010
OCEANAGOLD ANNOUNCES INCREASED RESERVES AT
THE MACRAES MINE IN NEW ZEALAND

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) is pleased to announce an increase of 259,000 ounces of gold to the mineral reserve inventory at the Macraes mine in Otago, New Zealand, which extends the mine life out to at least 2016.
These reserves are in addition to the Company’s December 2009 announcement of an increase of 495,000 ounces of reserves. When combined, this brings the total additional gold reserves at the Macraes mine to 754,000 ounces.
The additional mineral reserves announced today follow a comprehensive geologic interpretation and economic analysis for the “Southern Pit” deposit. The gold price assumption used to calculate reserves was US$800/oz. Further specifics are set out in “Table A” below.
Paul Bibby, CEO commented, “The additional reserves that have been added at the Macraes open pit mine are a further reflection of the potential that exists within the Macraes goldfield to convert resources to reserves. There is a significant resource base at Macraes and over the past few months we have successfully added three years to the mine life through this conversion program, extending the operation out to at least 2016. We expect further positive results from the programs to continue over the coming
months.”

[kerryo]

This has turned out to be a damned good share, up 40% in a little over 3mths .... and the good news just keeps coming.:)

[JBmurc]

This has turned out to be a damned good share, up 40% in a little over 3mths .... and the good news just keeps coming.:)

you could have brought them for peanuts awhile ago think they got down to 18c on the ASX now $2+

[elZorro]

I think there might be a bit going on with this share in a few minutes, fireworks.

[Silverlight]

Going to open at 2.11 up from 1.90 yesterday on ASX

[elZorro]

Going to open at 2.11 up from 1.90 yesterday on ASX

OGC also going well today: as per usual I got my timing wrong..but it does look like it's heading for $3.00.

[mistymountain]

Years ago I bought into Oceana when their SP was 0.80. The company refloated and OGC shares recalculated at approx $4.00. Something about Toronto Stock Exchange from memory. I have then seen value drop like a stone to 0.20 before recovering to $2.50 approx. However this is appox half the "old" value when they reinvented as OGC.

Struggling to see how OGC will get to the $4.00 and hence I can stop this significant paperloss. I am being patient and will forever kick myself that I didn't buy in a year ago at 0.20

Feedback welcomed on the history of the SP and OGC company.

[mistymountain]

Been waiting for a response from the above post.

Any takers??

Also would be very keen to know what people reckon this Share is worth given the huge plunge and now a recovery over last 12 months.

[elZorro]

Been waiting for a response from the above post.

Any takers??

Also would be very keen to know what people reckon this Share is worth given the huge plunge and now a recovery over last 12 months.

MM, I don't think I'm qualified to reply, as I only bought in once the share had reached better heights, missing all the fun. I haven't done much FA on this company, but it is in a strong position. The share races ahead once any new reserves are plotted, so this tells me the Macraes mine has plenty of life in it. They also have lots of EPs near the main pit. They have all the necessary gear and workers, good cashflow, POG high, yet the MV is not that high yet, compared to the stated Moz reserves anyway.

So I'm confident the share will move to NZ$3.00, and perhaps a lot more. Like you, I wish I'd been more observant (and affluent)when the SP was 20c. I averaged down with GEL, and while they too have huge potential, doing the same with OGC would have been a safer bet.

[mistymountain]

Thanks for the response there ElZorro.

The great thing is that OGC is digging up the gold, selling it and finding more of it. Once the Phillipines copper gets back on track the SP could race.

Watching this closely over next 12 months.

[kerryo]

Up 13% today to 3.00 .... no sellers left!:D

[JBmurc]

Thanks for the response there ElZorro.

The great thing is that OGC is digging up the gold, selling it and finding more of it. Once the Phillipines copper gets back on track the SP could race.

Watching this closely over next 12 months.

yes OGC have a great future no they have sorted most of their probs a far better investment that other goldies on the NZX like HGD
tried take me oldman in buying alot when they were in the 20's at the time he was pretty doom an gloom thing is he could have brought 250k worth from funds sitting in the bank..
should've could've didin't

did put another mate into them in the 50's ASX

[elZorro]

Agree with you there JBM. I've only got a few of these myself at the moment, been watching carefully. This is a strange pattern though, this morning, normally the NZ share is quiet until the Aussie side kicks in.

What is going on? Very positive for OGC and holders. Their market cap has just increased by $65million dollars (on paper).

[COLIN]

This is a strange pattern though, this morning, normally the NZ share is quiet until the Aussie side kicks in.

What is going on? Very positive for OGC and holders. Their market cap has just increased by $65million dollars (on paper).

Agree, very strange. Someone, somewhere, knows something about something! I see it was up 24c (to $2.25) on the TSX. I can't pick up any clues from this morning's ASX announcements - NCM have announced their half result but underlying profit up only 10% and really nothing there to give a lead on OGC.

[JBmurc]

Gold has gained some nice ground over night ,maybe some good news coming

[corporateraider]

Is OGC a suitor of HGD? I have speculated on this before but OGC seems the second best fit for this project.
The price rise for OGC is clearly due to more than the rising price of gold given the very large chunk of production that is hedged.

[COLIN]

The price rise for OGC is clearly due to more than the rising price of gold given the very large chunk of production that is hedged.

I see on the ASX that they have come out with a technical report on the McCrae field. It is over 200 pages long, and I haven't downloaded it yet so don't know what the thrust is, but presumably it is a positive. Did some investors have wind of this before it was released to the market?

[mistymountain]

My point above though that surely OGC SP is just finally getting back to 75% of its value from a couple of years ago. ($3 c.f. $4)

A drop from $4.00 to $0.20 is a massive fall so really a return to $4.00 isn't too dramatic when this stock used to a $4 anyway.

The point made above is what is the SP true value and why did it plummet like a stone? Was the SP sell off pure speculating fear?

Surely a return to $4 is just getting back to where it was and then movement from then on is what we should be excited about.

[corporateraider]

mistymountain
Primarily the huge share price drop was due to the market thinking that they could not service the huge debts that they incurred developng Didipio.
The $4 assumed that they would have Didipio up and running and it isn't and as yet no indication of it happening.

EXCEPT that the company said that they will report on progress soon

[mistymountain]

Thanks Corporate Raider for those wise words.

That all makes sense given the mothballing of Didiopio. As the GFC moves on I'm hoping that OGC may get significant traction over the next 5 years.

I was wondering what experts might think on a potential buy out of Heritage Gold.

Of course this would depend on HGD's potential to produce gold as opposed to exploration.

[whatsup]

OGC , $3.60 what a share up from .70 in a year way to go !!!

[geezy]

great jump , i m glad i have joined the party (altho small bits) , eased a little , some room to pick up more ya reckon?

[JBmurc]

OGC , $3.60 what a share up from .70 in a year way to go !!!

mmmm the share I really didn't read well trading historys shows I paid 2.50 NZD sold 60-70c NZX brought back in 18c ASX yes 18c asx I know what a steal

I had 40,000 @ 25c an 40,000 @ 18c sold for a average 38c there what 2.60 now

you gott'a know when n hold'm know .................................................. ........