OceanaGold: good news from the mine

[clip]

Gold jumped from $1312 to $1320 then back down to around $1316.5 i'm guessing? http://goldprice.org/ (http://www.http://goldprice.org/)

[Logen Ninefingers]

Wow, that is the very definition of following the gold price closely!

[blueswan]

That drop is inline with the small/medium gold cos. on the ASX like Alacer they mostly open strong and drop quite a bit at the lows now. I think more on profit taking on the whole ASX and only a few Banks are still strongly higher CBA and MQG. Gold price flat to slightly lower.Even Newcrest from 1032 high to 1006.

[Bobcat.]

Any particular reason why price would climb to 2.21 today and then fall away to now be sitting at 2.02? Seems a bit weird.

Not really. $2.20 was the top price it reached last time the price spiked (with the PoG) late September. There is resistance there. Until last Tuesday I had half my holding sitting their on offer but I moved it up when I saw Blackrock buying up large - and they will still be buying.

This correction off 220c is not surprising given its stella performance these past two weeks but IMHO there is still a lot of wind left in its sails to break through to test 250c later this month...especially if the PoG climbs tonight off some shonky US jobs data and the ECB does not announce QE or Interest rate hikes for the EU. Two big 'ifs' I know but the S&P500 is also encountering resistance at the top of its channel and technical analysis of PoG charts is seeing a pendulum swing upward - so don't be surpised if the POG is trading >1% higher tomorrow, which will again move the sp of OGC higher.

http://www.kitco.com/news/2013-11-06/template_jimw.htm

[blueswan]

on the ASX, that 195 high on Oceana Gold just touched the 200 day moving average before correcting to 180 now.

[elZorro]

There have been a succession of typhoons in the Philippines, including a really big one in the last week, Haiyan (Yolanda is the local name) http://www.accuweather.com/en/weather-news/super-typhoon-haiyan-a-serious/19561621 .

Communications are out in many areas, with low-lying areas being hit with huge waves and winds. Didipio is in the northern area of Luzon, an island that also has the main city of Manila. There is another tropical threat of heavy rain heading for the area.

http://www.accuweather.com/en/weather-news/another-tropical-threat-for-th/19729929

In the third quarter, OGC reported that they were able to help out local residents after a smaller typhoon. They have been proactive in building earthworks to protect their mining facility in expected heavy rain and winds.

[elZorro]

The weather in the last week or so at Dipipio has been benign, according to the web. The forecast for the next week is also good, so while some other parts of the Philippines are in a very bad way, everything should be OK at the mine. The company hasn't said anything, anyway. What surprises me at the moment is that the OGC shareprice is trending up, even against the gold price. This may be because there aren't too many miners who can cope with lower gold prices, but OGC is one of them. So we have upside if the PoG goes up, and also upside if investors drop some gold shares elsewhere to buy OGC. The RSI is high for the share at the moment, and it's staying high.

[Bobcat.]

I suspect that once Blackrock start buying they don't stop until they have their quota. Upward pressure on OGC's sp remains, regardless it seems as to what the POG is doing.

It's worth watching OGC on the Toronto stock exchange. Last night it rose over 3% taking OGC.NZX and OGC.ASX higher, initially at least.

http://www.bloomberg.com/quote/OGC:CN

Discl: holding (20% of my portfolio).

[elZorro]

Yes, I'd noticed that too. OGC is moving away from the PoG in a good way. This BlackRock outfit is not a small player. They are huge. http://en.wikipedia.org/wiki/BlackRock

News we might have missed over here. Well, I certainly missed it. http://www.smh.com.au/business/oceanagold-gains-backing-20131103-2wuso.html

Confirmation at last from the company that all is still OK in Didipio, despite the typhoon a few hundred km away. At least the company can help out in some fashion.

http://www.asx.com.au/asxpdf/20131113/pdf/42ktwqfxgvp0rx.pdf

Some major savings are still possible in NZ and at Didipio. They must be running on diesel gensets there.

[Marilyn Munroe]

I want to know about Oceanas gold hedging position. Does it have a naked hedging position?

Where can I find out about this position?

Boop boop de do
Marilyn

[peat]

I want to know about Oceanas gold hedging position. Does it have a naked hedging position?

Where can I find out about this position?

Boop boop de do
Marilyn

Not an expert in this area but from what I can see in latest quarterly report available here : http://www.oceanagold.com/investors-and-media/financial-results-2/


the Company entered into a gold bullion collar zero cost agreement to buy gold puts
at average strike NZ$1,600 per ounce and sell gold calls at average strike NZ$1,787 per ounce for 115,650
ounces of production at the Reefton operation for the period from July 2013 to June 2015. The balance of the
gold production at the Reefton mine under this agreement as at September 30 (2013) was 100,170 gold ounces.


SO to me this would suggest they will receive a minimum of (NZD) 1600 per ounce and a max of $1787 for the Reefton gold.

Current NZD price of gold = $1557.




disc , hold a small parcel in trading portfolio.

[elZorro]

A new article on OGC, with a photo of the Didipio diggings I think.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11158655

Still evidence of strong buying on any dips.

[Bobcat.]

Yes, that ODT article has a positive tone but Toronto last Friday saw a drop in price of 5% to 1.83 CAD. That movement will likely cap today's trading here and in Australia. I'm picking a high of around $2.19 NZD and $1.93 AUD. Any further drop in price on the Toronto exchange tonight may bring the dip you're looking for El-Z.

Discl: Took a little profit last week, and looking to buy in again if it dips 10% to $NZD2.00. Of course, it may not given it's recent momentum...but that's my strategy and I'm sticking to it. Looking at the charts, beyond $NZD2.20, its next resistance is just north of $2.30 where if it languishes I intend to profit-take another 25%. Selling strategies are of course just as important (but more difficult to implement) than buying strategies.

BC

[Bobcat.]

ouch, OGC just can't catch a break as copper price nosedives. Think well be testing new lows again soon if the gold and copper prices keep this up. Gold looking for a rebound near oversold levels soon but ain't looking too pretty right now! still not the sector to be in unless you loooooove volatility :)

OGC has rebounded on the Toronto Exchange off lows last Thursday night. Friday's trading lifted OGC's price to 1.68 CAD after trading as low as 1.55 Thursday night. I'm picking a lift to around $2 NZD today after the ASX opens for trading and further gains this week.

http://www.bloomberg.com/quote/OGC:CN

Discl: Bought back into this stock last Friday. Blackrock and others with very deep pockets have not stopped buying into this gem of a low cost producer that has now proven it's delivering on earlier promises re Didipio.

[Bobcat.]

The NYMEX bounced off a double bottom at 1228USD last night to climb quickly to 1250. US MoM Pending Home Sales figures of -0.6% were not impressive (+1.3% expected) and yet the deflationary aspects of that announcement had little effect on Gold. Previous support / now resistance at 1252 tested and holding, for now. If later this week we see that busted then a critical mass of bulls have awakened.

Accordingly, gold stocks have rallied, including OGC on the Tornoto exchange - up 6%. A bullish run today will see it close over $2NZD on the NZX.

How much higher it goes this week will also depend on two local announcements:

1. RBA Assistant Governor Lowe speaking this afternoon
2. the NZ Trade Balance to be announced 10:45 tomorrow morning (analysts predict -$350m) :

Higher AUD/NZD cross will take OGC higher; whereas a lower AUD/NZD cross will bring downward pressure on OGC's gains this week.


Discl: Having topped up, I'm again a happy holder. This is a company with great prospects, delivering on its promises in good ol' fashioned, honest South Islander ways.

I see there is a seller at 190 who is not yet aware of the rise in Toronto. If I wanted more, I'd buy him out but this stock is already 20% of my portfolio (and that's my self-imposed limit).

[Bobcat.]

OGC is a quality company with a low forecasted PE and good buying interest from Bearing Point. It was down 7% in Toronto last night and so will provide a buying opportunity today when it drops (into the 170s?) once the ASX opens.

http://www.bloomberg.com/quote/OGC:CN

[Bobcat.]

I'm kicking myself and most likely a lot harder Monday...

As I saw OGC drop 7% in Toronto this morning, I expected a similar drop on the NZX and ASX but figured not serious enough to sell out. In fact if I didn't have so many, I would be considering a purchase.

Then just before Toronto closed, soon after the NZX opened, Bloomberg showed the price plummet to 1.10 CAD. I figured that this must be breaking news and a fundamental loss of value (e.g. mine failure or unfavourable arbitration decision on Pacific Rim or whatever). Anyway didn't think I had much time to act and so sold down 80% of my holding pronto...for the paltry price of 1.81.

http://www.bloomberg.com/quote/OGC:CN

After congratulating myself I watched for a sell off on the .NZX and on the .ASX but it didn't eventuate. Only then I looked to verify, and realised that Bloomberg had stuffed up. Yes, OGC.TO was down 7.6% but that's how it ended (i.e. no plunge to 1.10CAD).

http://nz.finance.yahoo.com/q?s=OGC.TO

By this time almost all the offers at 1.81 had been gobbled up and I was reluctant to buy back in at a higher price. That's where it ended. OGC.ASX briefly broke solid support at 162 to slip to 157 and then recover to 161. OGC.NZX traded at 1.81NZD all day.

It's not comfortable being double minded. Now on one hand I want Gold to fall tonight so I can get my OGC shares at a price of 1.81 or better Monday; on the other hand, my other Gold stocks will come into the money with a lift in the price of Gold.

Grrr....

Moral of the story: Urgency and action is all very well but best to first verify any significant news using an alternate source.

[Bobcat.]

Blackrock were buying up large last October and November, but have recently been selling down. Fip-flop.

No longer a substantial securituy holder.

http://www.asx.com.au/asxpdf/20131227/pdf/42lwjklxfdr0ct.pdf

I like this stock and have been buying at anything south of 170. Provided its January arbitration in the Courts goes as planned re the El Salvadorian government obstructing Pacific Rim, and the PoG stays north of $1200, I'm confident that this baby will grow big in no time.

BC

[elZorro]

Blackrock were buying up large last October and November, but have recently been selling down. Fip-flop.

No longer a substantial securituy holder.

http://www.asx.com.au/asxpdf/20131227/pdf/42lwjklxfdr0ct.pdf

I like this stock and have been buying at anything south of 170. Provided its January arbitration in the Courts goes as planned re the El Salvadorian government obstructing Pacific Rim, and the PoG stays north of $1200, I'm confident that this baby will grow big in no time.

BC

I'm still holding, although it looks like Blackrock are making a bet that the gold price will continue to slide. Large traders ensure the PoG sets the OGC price generally, and you can see the trend at the moment was a decent bump upwards when Didipio returns started coming in (see 11 month block), followed by OGC tracking gold at a new increment while Blackrock sold off shares. Maybe OGC will head up from here relative to gold, or it might continue to track the gold price at the new offset.

[Bobcat.]

Someone is really bullish or smoked too much peyote this morning paying an 8%+ premium on NZ OGC shares over ASX ones! Granted, very low volume, but still!

At a mid rate of 0.9193, $1.90NZD translates to $1.75AUD. OGC on ASX closed at $1.70. I've been bullish on this stock for a while now -- it's good to see this week's lift through previous resistance of 1.68AUD. Next resistance to break through is $1.85AUD = ~ $2.00NZD.

Good news is possible later this month w.r.t. Pacific Rim arbitration.

BC

[In4a$]

Cost cutting going on at the Macraes goldmine in Southland due to low gold price. Some staff and contractors to be laid off this month I hear.

[Daytr]

Yep announced today 100 jobs to go at McCraes.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11183012

[Balance]

http://www.smh.com.au/business/world-business/ten-reasons-why-gold-bugs-lost-their-shirts-20140109-30iud.html

Worth reading.

[Bobcat.]

http://www.smh.com.au/business/world-business/ten-reasons-why-gold-bugs-lost-their-shirts-20140109-30iud.html

Worth reading.

The cynic in me got a chuckle from this part :

"Gold is marketed through a combination of fear and dishonesty. (As opposed to various equity products, which are marketed through a combination of hope and dishonesty)."

[elZorro]

A bit of general discussion from Ross Louthean, NZResources. He's right, the gold producers don't seem to think gold will move back up much this year.


Tough year ahead for NZ gold productionRoss Louthean — 13 January 2014 There are a lot of uncertainties as the two large New Zealand hard-rock gold miners and the private and boutique alluvial gold producers wage their war on costs in 2014 – all feeling there won’t be a dramatic increase in the $US-denominated gold price.
The spotlight was shone on the tough year ahead by OceanaGold Corporation (ASX, TSX & NZX: OGC) announcing last week a cutback of at least 106 people, followed suit by mining machinery services supplier Goughs, and union claims since that as many as 200 people will go from the Macraes gold operations.
Prior to this scenario, OceanaGold had said it would mothball the Globe-Progress open cut mine by mid 2015 unless the gold price reached about $NZ2,000/ounce by about now. It is a long way from that target.
Less publicised workforce cutbacks have taken place at the Waihi operations of Newmont Waihi Gold which is part of the Newmont Mining group which has undertaken some slashing and burning on global operations like other international gold majors. However, the Waihi pruning has been less severe than elsewhere, including Newmont’s big Australian operations saddled with high wages and material costs.
The challenge for gold in New Zealand is how much money will go into exploration – because both OceanaGold and Newmont Waihi have been honing this activity. For Newmont, the 2014 driver will be development of the new Correnso underground mine near the Martha open cut. The company’s regional quest in the Hauraki goldfield on the WKP project with Glass Earth Gold Ltd (TSX-V & NZAX: GEL) may depend on Glass Earth’s ability to raise fresh capital to pay its way and perhaps also take over management of WKP.
Like many other gold juniors looking at NZ, Glass Earth Gold has been working on narrow funds and may be hoping to raise a lot more capital in 2014.
Glass Earth has dropped or sold most if not all its South Island permits and also has the Neavesville gold project, also in the Hauraki goldfield, with the support of mining identity Geoff Loudon
Loudon’s L&M Group has the Earnscleugh alluvial gold dredge near Alexandra in Otago which had its fair share of headaches in being profitable in 2013, not helped by the gold price heading south and the dredge spending some time at the bottom of its pond.
One new gold miner is the Wakaia Gold syndicate’s new operation on the Wakaia River near Gore and, like many South Island alluvial operations, would undoubtedly be lean and mean.
One of the great hopes for 2014 is MOD Resources Ltd (ASX: MOD) which is earning up to 80% of the Sams Creek gold project near Takaka from OceanaGold and also owns 100% the extended target in that field.
More could be heard from MOD early this week on the level of activity it will undertake to lift the reserves at Sams Creek well above the existing 1 million ounce level, and also what other targets it will drill in the area this year.
New Zealand Petroleum & Minerals (NZP&M) is pushing for new gold exploration areas to be taken up in the Taupo Volcanic Belt and while there are juicy epithermal targets in this region, the climate for grass roots exploration is not looking good right now.
The perception was not be helped by respected Canadian mining newspaper Northern Miner running a headline last week indicating market interest in OceanaGold’s Didpio gold-copper project in the Philippines which, thanks to the copper by-product has low to negative operating costs.
That paper cited North American investors being impressed with the Didipio performance and with the severe cut-back on workers and operating costs in New Zealand – suggesting that NZ may now be a diminishing option for the company.
Such a scenario would be grim for NZ as the Macraes mining operation has for more than two decades been a major mining mainstay for the country, and an economic mainstay for Otago which has been losing industry and employment elsewhere in the past year.
What the gold sector wants to see is an improvement in the gold price, some bold new faces on the scene (also requiring the NZP&M to lift its ponderous permitting process) and for the Kiwi dollar to ease back.
The $A has taken a pounding in the last six months and this has been one of the few bright lights for mineral and metal exports from that country. The Kiwi, on the other hand, has not lost ground against the Greenback and has risen sharply against the $A in recent months.
A general election is on the horizon for New Zealand and the well being of mining and also petroleum exploration will hinge on whether the Nationals retain power. A change to Labour with perhaps a Green Party alliance would help bring the Kiwi dollar down but could make New Zealand a poorer place for resource investment.


Yes Ross, it'll be Labour/Greens fault if mining doesn't do well after the next election? Get over it. The price of gold and market sentiment is the problem. But mainly it's the gold price.

[JBmurc]

Cost cutting going on at the Macraes goldmine in Southland due to low gold price. Some staff and contractors to be laid off this month I hear.

ya mean Otago

[In4a$]

ya mean Otago
Ya right, Otago, It's South of the Bombays anyway ! Been there, damn decent size hole in the ground.

[In4a$]

I think in 2014 we may see a re rating of OGC as production at Didipio is at full bore and hedges are engaged. Not so much a play on PoG fluctuations because of this, but a steady earner now (as long as PoG doesn't implode over the next few years!)

I agree, Downsizing Macraes mine a good sign that they are watching costs. I thought OGC price will improve on the news, might run to $2, but I am not a long term holder in this stock, I will be out soon.

[Bobcat.]

The time to hedge was no later than end of last October not this month. EVN did so (at $1358). OGC doing so now is a bit naive in my view. I'm confident that Gold has now established a double bottom and will continue to trade above $1,200USD.

[Daytr]

The dealings I had with OGC in recent years weren't that positive. I didn't deal with the MD, but the guys I did deal with weren't the sharpest tools in the shed imo. I do think the latest news although not good for Otago or the workers etc, may be a positive for the company as a whole.

[In4a$]

From what I have heard and read, Macraes site was running out and 2017 was possibly the end anyway.

[JBmurc]

The dealings I had with OGC in recent years weren't that positive. I didn't deal with the MD, but the guys I did deal with weren't the sharpest tools in the shed imo. I do think the latest news although not good for Otago or the workers etc, may be a positive for the company as a whole.

Yeah such a low grade mine like many round the world not making much if any profit

[elZorro]

Last quarter report is very positive. The convertible notes are finally gone from the books, they have plenty of cash, paid off $45mill of debt, higher than expected returns from Didipio, and as I suspected, have been able to choose what work they did at Macraes to make the best medium term return. In the previous few years the returns looked worse than they needed to be.

http://www.asx.com.au/asxpdf/20140121/pdf/42m75whxg06swz.pdf

[GR8DAY]

.....in a very strong position now, as expected. Paying off $45millilon! debt says it all........IF gold price recovers this stock will go through the roof.........and even if the GP stays around where it is, OGC will remain a highly profitable company. Wish I had more.

[Bobcat.]

Big lift in the sp on Toronto exchange this morning. Previous resistance at $2.20 NZD about to be tested. Trading above $2 AUD will help. Lower than expected AISC is very good news - was $950/oz, now $868/oz. Hedging however will cap profit as price of gold rises. I plan to sell half my holding if and when POG gets above 1300usd.
BC

[GR8DAY]

.....nice lift this morning on rising GP. Expect even bigger jump when Oz opens........a rising GP will see OGC strongly outperform as the big picture for them continues to improve. A highly volatile stock not for the faint hearted but there's a solid operating and very profitable company behind this one now. The ducks are lined up.

[GR8DAY]

........I believe that OGC will still be volatile but nothing like it used to be, thanks to the puts,calls and hedging in place now. They would have worked it all out.....the parameters to work in and still remain the highly profitable company they are.......makes for a more stable environment for them to operate under and makes good business sense to reduce that volatility........Im sure the brokers/advisers will be happier now......they should like what they've done and esp. them being so proactive in reducing staff numbers etc at Macrays. Pretty sure OGC has a good year in front of it regardless of the POG. Dont be surprised to see the SP go through $3.00 quite soon......I guess you'd call that volatile....but in a good kind of way.?? ($4.50 a year or so ago)

[Bobcat.]

I'm gauging not only technical movements in the POG but also OGC's RSI (which is very high), last Sept's resistance on the ASX at $2.24. and volume.

My guess is a top early next week (i.e. 3-4 days after their very good Production report) at which point I will try to time well a partial sale. The rest I'll hold 'cause I like this company's long term potential and fundamental value indicators.

BC

[GR8DAY]

......keep a good eye on this one folks. Could explode into life any day Im thinking/feeling......just waiting for that final duck (POG) to line up....then whamo!, back up over $3 at the blink of an eye. Strong company and one of the lowest cost Gold Miners in the world.

[Bobcat.]

......keep a good eye on this one folks. Could explode into life any day Im thinking/feeling......just waiting for that final duck (POG) to line up....then whamo!, back up over $3 at the blink of an eye. Strong company and one of the lowest cost Gold Miners in the world.

Agreed - although it's not a good sign that after just one day of a sp rise last Friday, it fell away for two days (on first the Toronto exchange then the NZX and ASX) before rising a paltry 3% this morning. I was expeceting a more bullish run for at least three days. There maybe a few buyers on the sidelines (and sellers selling on peaks) until the US Courts decide the fate of Pacific Rim, which is due soon.

BC

[GR8DAY]

OGC not for the faint hearted BC! POG firming further overnight in tandem with shaky equity markets?

[Bobcat.]

Up to $2.32 on the NZX due to POG lift post-FOMC meeting and subsequent rise in Toronto to 2.13 (also helping was NZ interest rate remaining at 2.5% with subsequent fall in the NZD).

Still some legs to this one. If there's a typical Thursday night rally tonight on the NYMEX then tomorrow will IMO be a better time to sell a few than anytime today.

Holding with an itchy finger on the sell button.

BC

[BlackPeter]

Up to $2.32 on the NZX due to POG lift post-FOMC meeting and subsequent rise in Toronto to 2.13 (also helping was NZ interest rate remaining at 2.5% with subsequent fall in the NZD).

Still some legs to this one. If there's a typical Thursday night rally tonight on the NYMEX then tomorrow will IMO be a better time to sell a few than anytime today.

Holding with an itchy finger on the sell button.

BC

Why the itchy sales finger, are you over exposed? Looks at current price still like good value to me with PE around 11 (correction up from 10 ... in future I better consider the increased share price before making statements on PE :blush:) . I shall keep holding ...

[Bobcat.]

Why the itchy sales finger, are you over exposed? Looks at current price still like good value to me with PE around 11 (correction up from 10 ... in future I better consider the increased share price before making statements on PE :blush:) . I shall keep holding ...

Yes, overexposed (15% of my portfolio which makes me a little nervous and more likely to sell on spikes). Looks to me that technically, $2.50 will again provide some resistance.

I'm trying to find a date for the US Court hearing on the El Salvadorian government's obligations to OGC's Pacific Rim. Anyone know?

[GR8DAY]

Yes, overexposed (15% of my portfolio which makes me a little nervous and more likely to sell on spikes). Looks to me that technically, $2.50 will again provide some resistance.

I'm trying to find a date for the US Court hearing on the El Salvadorian government's obligations to OGC's Pacific Rim. Anyone know?


.....dont think you'll regret having 15% in OGC Bobcat. In fact your finger might be better off hovering (nervously) over the BUY button!! Looking stronger each day, esp, but not only, on a rising GP.

[Bobcat.]

I like this stock too but I've learned before the hard way not to ignore sell signals like RSI (now >80%) and the fact it's today touching last Sept's resistance at $2.20AUD on the ASX. However, there is good volume today (half a mil') which is encouraging.

It appears that a few analysts have finally digested last week's stellar report and are now buying into this stock. It will be interesting to see if Blackrock are again buying (flip flop) - we should know soon enough.

Tomorrow morning's performance on the Toronto exchange will be interesting.

[GR8DAY]

I agree it can be a touchy stock but I do believe that volatility could be diminishing......I reiterate, now a very strong company in a very strong position. $45m of debt just repaid AND Macraes staffing numbers being shaved by around 100 AND Didipio starting to really crank up.......that's all going to end up on the bottom line this year.

[Bobcat.]

I've just got this reply from OGC's executive assistant, Emma Graham, re the El Dorado arbitration (it's going to happen a lot later than I earlier thought):

"Thank you for your email. The tribunal hearing has been tentatively scheduled for two weeks starting from 15 September 2014. Please note that the parties are still in the process of filing various submissions and the hearing date may change."

[GR8DAY]

......OK, well I guess it's good to have a definite date so we can put that one to bed for a while and get on with the real business of mining gold and copper!!

[elZorro]

Another 5% up today, helped by the consistent buying from Van Eck Associates Corp, who now have 9% to 10% of the company. It's about 3% of their total investments.

http://quote.morningstar.ca/Quicktakes/owners/MajorShareholders.aspx?t=OGC&region=CAN&culture=en-CA

http://www.asx.com.au/asxpdf/20140210/pdf/42mmfz6zkplkdh.pdf

Van Eck has been buying for the last 2-3 months.

[GR8DAY]

..CHEERS ELZ.....gotta be a strong confirmation on the future of OGC. Ive just gotta work up enough courage now to keep buying into this recovery story. Still well off all time highs of over $4??

[GR8DAY]

......actually the SP peaked at about $4.50 and that was under 18mnths ago. Who knows that could now be challenged sometime in the future considering all the changes that have been implemented of late but more importantly the healthy contribution that is set to come from DIDIPIO??

[Bobcat.]

Toronto peaked at $2.50, tested it three times then fell away to close around $2.40 (~$2.62 NZD).

Given this resistance, and the fact that today's hike to 2.60NZD will lift the RSI above 80% again, I was prompted to sell half today.

I'm anticipating an opportunity to buy in again if and when it dips.

A nice stock, and riding the wave onward and upward is going to be a pleasure.

POG finding some resistance @ 1277USD but the AUD is weak enough to lift ASX precious metal diggers for a third straight day, I would say.

Meanwhile, OGC with its Otago-based management is leading the way. Go you wee beauty.

[GR8DAY]

......not a bad move Bobcat.....playing it safe. Im holding tight to this one, I can see it blasting through $3 without too much trouble esp. with a rising GPrice.

[GR8DAY]

.....SPOT GOLD up another $8.20 as I write. There seems to be growing sentiment now that an upward trend is forming and the Bulls may be getting an upper hand. We might see $1300 an oz tested again soon?? Hope so but dont know so!

[Bobcat.]

I've just sold out. This stock is flying, and I know that there is a nice lift in the price of Gold, but I'm happy to leave some profit here for others (so to speak) and use these funds elsewhere.

OGC.asx looks to have some resistance at $2.50 (~$2.72NZD) which may be a psychological thing. Also, on Toronto, it bounced convincingly off $2.50CAD (~ $2.73NZD).

I could be wrong, of course, and wish well all of you others well persuaded of the fundamental value in this stock, and less persuaded by its Relative Strength Indicator, who continue to hold.

BC

[GR8DAY]

I've just sold out. This stock is flying, and I know that there is a nice lift in the price of Gold, but I'm happy to leave some profit here for others (so to speak) and use these funds elsewhere.

OGC.asx looks to have some resistance at $2.50 (~$2.72NZD) which may be a psychological thing. Also, on Toronto, it bounced convincingly off $2.50CAD (~ $2.73NZD).

I could be wrong, of course, and wish well all of you others well persuaded of the fundamental value in this stock, and less persuaded by its Relative Strength Indicator, who continue to hold.

BC

......nothing wrong with that call Bobcat, hope you profited well. Yes it's been a very steady climb back for OGC, I think based both on solid fundamentals as well as a lift in the GPrice......... which I now see has improved over $12 an ounce. (not sure whats causing this but it does look like a "steady" improvement, which is always a good sign) As I said in an ealier post...the ducks just have to line up on this one AND that appears to be happening, with more to come I hope.

[elZorro]

......nothing wrong with that call Bobcat, hope you profited well. Yes it's been a very steady climb back for OGC, I think based both on solid fundamentals as well as a lift in the GPrice......... which I now see has improved over $12 an ounce. (not sure whats causing this but it does look like a "steady" improvement, which is always a good sign) As I said in an ealier post...the ducks just have to line up on this one AND that appears to be happening, with more to come I hope.

If you go back on the old thread, maybe even the start of this one, you'll see Phaedrus showing all of us who sold early when OGC put on a huge run in 2009, that the MA30 line is a useful basic indicator for this share. If the trend is upwards and above that line, hold onto it. It's not trading sideways at the moment. It could keep going for a while yet.

[Bobcat.]

I stand corrected. Whoever bought my OGC at 269 yesterday will benefit today.

It's up another 8% in Toronto overnight.

Do keep in mind however the hedging mistake they made last month. Any price over around $1300USD will, for the next 208,000oz of production, reap little benefit for this company: see page 2 of this earlier announcement.

http://www.asx.com.au/asxpdf/20140107/pdf/42m0qmhz1thbng.pdf

[In4a$]

Sometimes we get it wrong is right - I sold @ 2.18 on the 28th as price dipped, been going up ever since. !! Oh well small profit better than no profit.

[Bobcat.]

Interesting. Although Gold is up overnight (peaking at 1297USD), OGC has fallen away 6% in Toronto (down to 2.43CAD = $2.65NZD as I write this). It looks like yesterday's peak of $2.80NZD on the nzx will not be beaten today.

I'm looking for an opportunity to buy back in under $2.50 but mindful of two things:

1. Thursday night rallies are fairly common for Gold trading on the NYMEX; and
2. The S&P500 and DJIA are forming a head & shoulders pattern, with Bears likely to step back sometime very soon (which will almost certainly pump up precious metal stocks even fruther, with Gold breaking $1300USD).

Buying asx-traded Gold diggers late this afternoon (i.e. after their two days of profit taking) may not be such a bad idea....

BC

[GR8DAY]

......no rational reason for OGC to pull back other than a bit of healthy profit taking, sooooooooooooo do the wise thing and view this as a buy opportunity. This stock should keep heading north for sometime yet........in fact I think $4.50sh is still not out of the question.

[Bobcat.]

On the assumption (a reasonable one in my view) that NZ will raise interest rates before Australia, I would say that buying this stock on the .asx will produce better returns medium term than buying on the .nzx.

It's lowest price just 45 mins ago was an attractive $2.31.

I suspect we'll see some more profit-taking today with asx-listed gold stocks, before they rise again tomorrow. Around 3:30pm AEST on a down day is usually a good time to buy.

Discl: bidding mid 230's...planning to pick up a parcel from a seller who's nervous that it will drop again in Toronto tonight (unlikely IMO).

BC

[GR8DAY]

.....good luck on that one BC, you just never know........but you'll have to beat me first!!

[Bobcat.]

.....good luck on that one BC, you just never know........but you'll have to beat me first!!

Let's compare notes at end of trading today (by private message if you like).

Also looking to buy EVN on a dip (probably in the low 70s).

[GR8DAY]

Let's compare notes at end of trading today (by private message if you like).

Also looking to buy EVN on a dip (probably in the low 70s).


.....drop me a PM anytime BC......always keen to hear other/different ideas and views......never too late to learn new tricks.

[elZorro]

A fairly good press release today, highest operating profits ever, which verifies the over 10% holding being added to daily. This should be a good share to hold while people think about the safety of gold miners over some other shares.

http://www.asx.com.au/asxpdf/20140220/pdf/42mw019gqq3pld.pdf

Nowhere near the MA30 on the charts at the moment.

[BlackPeter]

A fairly good press release today, highest operating profits ever, which verifies the over 10% holding being added to daily. This should be a good share to hold while people think about the safety of gold miners over some other shares.

http://www.asx.com.au/asxpdf/20140220/pdf/42mw019gqq3pld.pdf

Nowhere near the MA30 on the charts at the moment.

agreed - it is a well run company, however due to the recent hedging mid term IMHO with somewhat limited growth potential (check out Bobcats post #1233) until the hedge is "used up". Expect SP for the foreseeable future to move sidewards.

discl: sold out a couple of days ago.

[Bobcat.]

Up another 5% in Toronto. Testing CAD $2.70 (NZD $2.91)

[GR8DAY]

.....HAD A QUICK READ......very impressed. Hows that for forcasting, almost bang on the money but OOPs they slightly exceeded the 325,000oz top end forcast!! Im picking OGC (regardless of any hedging in place) is very well positioned now to steam ahead full noise and I also expect massive improvements from here on in........WATCH THIS SPACE. HAPPY HOLDER.

[GR8DAY]

.....cheers Moosie! Not quite there yet but I suspect any day soon now with that result out. Ill be reading through more thoroughly tonight but Im getting a very good feeling about OGC, to the point of maybe throwing some more funds at it. Anyone had a real good read yet??

[elZorro]

.....cheers Moosie! Not quite there yet but I suspect any day soon now with that result out. Ill be reading through more thoroughly tonight but Im getting a very good feeling about OGC, to the point of maybe throwing some more funds at it. Anyone had a real good read yet??

No, I haven't had a good look Gr8day. I did throw some money at it, which is doing fine. I had another look at the OGC chart vs gold, and you can see that the market is valuing OGC more favourably than gold over the last few months (see the 11 month chart), even though on a narrower timescale OGC follows gold. This is a pleasant change for OGC, easy enough to hold the share while it stays above the MA30 marker. Of course gold could move a lot more yet, it got over US$1350 last night.

[GR8DAY]

.....Hi Elz (bin a while!). Yes I have also been aware of the improving SP over the GP of late and Im taking that also as a VERY good sign for a continuation in the improving SP.
I expect last nights big jump in the GP (which may just be the beginning?) to push the SP well over the $3 mark today..........that's just the nature of this beast wether it can be justified or not.

[GR8DAY]

.....good grief there's some panic artists around today!! (PEB, OGC et al) OGC down just 1c in Oz BUT 14c here.......these nervous nellies shouldnt be into a stock like OGC in my opinion. Stick with your Rhymans and Trustpower etc.

Just CRAZY.

[Bobcat.]

.....good grief there's some panic artists around today!! (PEB, OGC et al) OGC down just 1c in Oz BUT 14c here.......these nervous nellies shouldnt be into a stock like OGC in my opinion. Stick with your Rhymans and Trustpower etc.

Just CRAZY.

This stock encountered some solid resistance last week at $2.80 AUD.

At today's NZD/AUD mid rate of 0.9388, $2.58 AUD = $2.75NZD...so there's not a lot of deviation. I think the sp could drop a bit further yet before dipping - at around $2.50 AUD is my guess...then I'll be buying back in. Provided the NZD/AUD doesn't change much, that equates to around $2.66 kiwi.

Tomorrow?

[GR8DAY]

.......gold price firming nicely (steady as she goes). OGC up another 3% in Toronto overnight. The trend is up!

[GR8DAY]

........this strong upward trend is just getting stronger. Not too late to jump on board folks, it may just run all the way back through $4.00 I'd like to say DYOR but this one is really for the punters.......BUT having said that OGC is now also underpinned with some sound fundamentals. Gold price still firming also as I write. Go you good thing!

[Bobcat.]

I have a different view, GR8DAY. I was bullish on this stock (see my posts last September thru December), and was buying up large when it was under $1.90. However, they now have a falling RSI, negative MACD and a poor hedge policy (announced in mid January). At anything over $3.00 AUD I see this stock as ripe for selling.

Discl: no longer holding.

[BlackPeter]

I have a different view, GR8DAY. I was bullish on this stock (see my posts last September thru December), and was buying up large when it was under $1.90. However, they now have a falling RSI, negative MACD and a poor hedge policy (announced in mid January). At anything over $3.00 AUD I see this stock as ripe for selling.

Discl: no longer holding.

totally agree (and sold out myself). There will be another time when buying OGC shares is a good idea, but in my view this is not now! Their recent hedging decision holds them back - if gold price continues to rise (which it might), it is short term only the hedge funds gaining.

Obviously the balance looks a bit different if you speculate on a long term (i.e several years) rise of gold price. If that's what you assume, than it would make sense to expect further SP rises. Anybody's guess - personally I am staying an optimist and assume (hope?) that the Crimean crisis remains local (i.e confined to the eastern Ukraine) and gold will come back at some stage (well - over months, not years)

[Bobcat.]

Yes, although apart from the rising POG, there is a technical breakout through $2.80 AUD which is also bullish. It may be a few days before OGC falls away again but I don't mind leaving a little something in the market for others to profit by...so to speak. There are now better opportunities elsewhere IMO.

[GR8DAY]

I have a different view, GR8DAY. I was bullish on this stock (see my posts last September thru December), and was buying up large when it was under $1.90. However, they now have a falling RSI, negative MACD and a poor hedge policy (announced in mid January). At anything over $3.00 AUD I see this stock as ripe for selling.

Discl: no longer holding.



.........but then you would say that BC!! (as I say a punters stock, if only we knew).......I'll continue to hold for sometime yet.......I think??

[GR8DAY]

......OZ matching $for$. Both markets showing over 9% gain for the day with a whopping 1.7m shares changing hangs over the ditch......that's big gains on big liquidity......gotta be a good sign for the chartists??

[elZorro]

OGC is now trading just below the MA30 trendline, that would be getting close to Phaedrus saying "why are you still holding?". I sold some yesterday, before it started dropping heavily. It's all in the hands of the gold price.

[Bobcat.]

I'm getting ready to buy into OGC again. Risk/reward on this precious local gem of a company is getting very attractive. POG has little real short-term impact on its earnings due to its recently contracted hedging. In Toronto last night, it hovered just above $2.50CAD which could be pivotal.

Edit: I'm back in at $2.35 AUD. Good to be holding again.

[Bobcat.]

There are a few gold diggers to pick from today that are now looking oversold:

TRY, RSG, PRU, AQG, TGZ, TAM, SLR and EVN to name a few.

I chose RSG, SLR and OGC, with the bulk of my purchases today going into OGC. Anybody else buying back into this stock?

[cyclist]

There are a few gold diggers to pick from today that are now looking oversold:

TRY, RSG, PRU, AQG, TGZ, TAM, SLR and EVN to name a few.

I chose RSG, SLR and OGC, with the bulk of my purchases today going into OGC. Anybody else buying back into this stock?

You are a braver man than I am bobcat (but then again, most on this board are :D). I purchased some early Jan, and bailed out of 50% of it at 2.90 after the first big plunge last week. Happy to sit on the rest, but definitely waiting for POG to decide what to do before thinking about picking some more back up again. (I expected to be holding all of them for a while, but things are moving in both directions much faster than I ever expected).

The recent OGC price rise has been interesting. Haven't done the maths, but over the year so far I expect NZD POG hasn't changed much, with our $ increasing. Didipio (sp?) is exposed to POG increases, but copper is dropping. So I expect profitability has gone nowhere despite the re-rating of the stock price.

(Edit: Noted that existing profitability certainly warrants a higher price than the lows last year and in early Jan)

[Bobcat.]

Somebody is selling 43,000 OGC on the nzx this morning, without realising that it has been trading higher in Toronto overnight. If you can buy it at that price, you get it at a 10% discount to what OGC.asx will almost certainly open at.

Discl: Holding enough already, having bought yesterday.

[Bobcat.]

https://www.directbroking.co.nz/DirectTrade/dynamic/announcement.aspx?id=3581656


I can see Blackrock picking those up at 10 this morning for sure.

Blackrock have been selling. See the announcement above.

There was an offer at 2.25nzd but it got swamped by bargin hunters bidding all the way up tp 2.50, which is where it opened today. RSI and other measures are good to buy, and you are right - with their hedging, there is very little downside with a PoG below 1300usd.

[Bobcat.]

Since last week I've been holding OGC again (on both the nzx and asx to mitigate unforseen FOREX movements).

Given its price rise these past few days, I can see that the resistance at $2.80AUD and $3.00NZD will almost certainly be tested again this week. The chart may then form a head and shoulder pattern, and so I'm thinking it could then be time to take profit at those levels rather than continuing to hold on the off chance that last month's highs are reached again.

If however the PoG lifts sharply, then OGC's price should not have much problem busting through that resistance. If that happens I'll be bearing in mind their hedging policy which restricts this stock's value medium term (with revenue capped to $1600NZD/oz = ~$1310USD/oz), and so even if it does follow the PoG on and upward, I'll be selling on any spike north of those levels.

http://www.asx.com.au/asxpdf/20140107/pdf/42m0qmhz1thbng.pdf

This is a nice stock to trade. It's got good fundamentals and its price moves around nicely with numerous peaks and troughs, and with sufficient liquidity (esp on the asx and in Toronto) to mitigate the risk of any sudden reversal.

...and she's home grown.

BC

[elZorro]

Fair enough BC. Here is the latest trend chart for OGC (Canada) vs US$gold. The 11 month and 5 month charts are the clearest. OGC grimly following the gold price lately, the uprating occurred a few months ago, which caused the sharp change in fortunes. The last little dip in OGC, well that was where I sold some, perfectly timed as usual (not).

[Citizen Erased]

Large slip shuts mine
http://www.stuff.co.nz/business/industries/9961008/Massive-slip-at-Macraes-Mine (http://www.stuff.co.nz/business/industries/9961008/Massive-slip-at-Macraes-Mine)
New Zealand's largest gold mine has been shut down after a massive slip....

[elZorro]

Large slip shuts mine
http://www.stuff.co.nz/business/industries/9961008/Massive-slip-at-Macraes-Mine (http://www.stuff.co.nz/business/industries/9961008/Massive-slip-at-Macraes-Mine)
New Zealand's largest gold mine has been shut down after a massive slip....

That will take quite a while to sort out, I'd think. Also a bit expensive, as it's all waste rock. I saw a big dirt slide at an opencast mine once, it travelled slowly without any warning and just rumbled down, pushing big earthmovers and sheds aside. No-one was hurt. The rake of the deposited overburden had been quite low compared to the rock facing shown at Macraes, but neither was obviously good enough under all conditions.

After removing the waste rock, they'll have to reinstate the roading chopped into the side of the mine.

Maybe it's just as well Didipio has been having a good run, and no issues with tropical storms or cyclones there (touch wood). OGC has trended back down a bit, this might ensure the trend continues.

[Sideshow Bob]

Talked to someone recently, and they have a large amount for the processing plant to process. Sounds like the processing is their bottleneck and while the cutbacks have been in the mine, processing is still working 24/7.

[elZorro]

Talked to someone recently, and they have a large amount for the processing plant to process. Sounds like the processing is their bottleneck and while the cutbacks have been in the mine, processing is still working 24/7.

That has been a long-standing issue. They have a lot of oxygen stored for a chemical extraction process that needs lots of electrical power too, it's run remotely at night for safety, but has the potential to be a bottleneck. They could do heap leaching in an emergency, but with lower recovery rates. They never did spend the extra money on increasing the plant capabilities there, as the grade went down. They probably figured the capital was better spent at Didipio.

[Citizen Erased]

Article updated about ten minutes ago.
http://www.stuff.co.nz/business/industries/9961008/Massive-slip-at-Macraes-Mine

[JBmurc]

Just Came across this interview with a Netherlands-based Commodity Discovery Fund>>>

TGR: What markets do you think are good right now? What commodities do you like?
WM: We still have 60% of our equity investments in gold-related equities, 20% in silver-related and the last 20% in base metals and specialty metals. The only change in the last two years has been that we decreased our investment in exploration companies and increased our investment in royalty companies and senior producers.
TGR: Why was that?
WM: Because of the low valuation in the correction since the middle of 2011. The valuation for gold producers became almost laughable. Of course, a producer, which is creating cash flow and is still profitable at these prices, has only upside in the current market. It was a defensive move. The current bidding war concerning Osisko shows it was a smart move to add to our position during the down turn.
Terence van der Hout: Technically, an exploration company that has no assets can just go to zero—there are a number that are doing that—whereas producers will always be worth something, even at fire sales.
That’s another consideration that we’ve been looking at on the downside. Very recently, we’ve been subtly shifting from producers and near-producers to advanced developers. We see a turn in the markets. Those companies are well leveraged to the gold price and have a fairly extreme undervaluation to catch up with. Normally, they will be revalued to something relating to the amount of resource they produce.
One of the companies that we’ve been invested in for a while is OceanaGold Corp. (OGC:TSX; OGC:ASX). It has been producing gold in New Zealand at a steep cost, but it has a gold-copper deposit it brought to production in the Philippines that is performing very well. It’s a classic story of a startup producer that is beginning to be valued at its full potential.
TGR: Do you think it’s beginning to be recognized by the market because of the diversification of the company or because of the new resource and reserve that it came out with?
TvdH: It was a function of OceanaGold’s performance in production rather than the resource update. The added resources were mainly from its newly acquired El Salvador project, which is miles away from production. OceanaGold is finally being rewarded in a market that’s turning.

[Bobcat.]

Up 12% in Toronto on the back of an impressive quarterly report.

Holding and very happy with my investment. Phillipino operation's gold production is at record levels and looking very healthy.

$3 here we come again. This time it will punch through IMO, especially if the PoG holds up well this week.

[GR8DAY]

.....ditto BC. Very impressive quarterly (as expected)......also nice to see another $20m in debt repaid. Profits really should just keep compounding from here on in. Top company, top management. Very undervalued at $3 IMHO........$4 here we come??

[GR8DAY]

.....for those who havnt caught it.....for the quarter, record $170m in revenue, EBITA $101m, Net a staggering $59m!..........$20m repaid PLUS $42m cash in the bank. Just to repeat, this is for one quarter (you could be forgiven for thinking this is annualized)

[BlackPeter]

Amazing result! Definitely be punching above $3.00 soon. Hesitant on PoG on upcoming FOMC meeting though.

doesn't look quite as flash in the light of last years financials - big write off on NZ assets and overall 16 cts loss per share ...

https://www.nzx.com/files/attachments/193315.pdf

[Bobcat.]

I would say the 5.6% drop in price today on the asx is an over-reaction. OGC fell less than 3% in Toronto and I expect it will rebound a bit tonight...bringing it back up on the asx tomorrow. A good time to buy at 262c AUD, Moosie, if you're still interested.

[Bobcat.]

Not a chance with the fear premium leaving PoG! I expect carnage soon...

Well, if you had Moosie, you'd be 10% richer by noon today. Watch OGC.asx fly past 2.85 today.

[tosspot]

This has been on a mini tear last few weeks. With gold price plunging and no announcements somethings certainly up. bucking the trend in an unloved industry at the moment.

[tosspot]

How is noone talking about this. Massive surge and now put into an involuntary trading halt. somethings up

[GR8DAY]

How is noone talking about this. Massive surge and now put into an involuntary trading halt. somethings up

......nothing more than a query into the surging shareprice.....so much so I bailed this morning......might regret it, might not??

[Bobcat.]

Driven from Toronto trading - up 8% overnight, then nzx follows, then asx.

This is a much loved stock - honest management, delivering on promises, a very low ASIC, good EPS, little debt and tidy financial report.

POG climb has some way to go IMO, and so I'm still holding, sitting on my hands, expecting it will top 3.50NZD sometime next week.


BC

[macduffy]

This is a much loved stock

Not by those Macraes Mining shareholders who still feel sore about having their shares "acquired" all those years ago!

Sorry, I know that one should get over such things.......

:t_down:

[elZorro]

There was a fairly good report out at the end of May, annual report.

http://www.sedar.com/GetFile.do?lang=EN&docClass=13&issuerNo=00025328&fileName=/csfsprod/data149/filings/02217598/00000001/k%3A%5Cfilings%5Clivework%5Cwkout%5C42321%5COceana Gold_Other.pdf

There has also been a recent reappointment of directors, and I think the next meeting will approve a Chairman.

[Bobcat.]

OGC.asx is testing $3.17 again, which over the past three months has twice proven to put up some stubborn resistance. I'm picking that over the next few days it will punch through and go on to test $3.50 (~$3.75NZD). If the POG lifts (as it tends to do seasonally July-Sept) this could happen as early as next month.

Discl: Holding and bullish.

BC

[Bobcat.]

OGC up a whopping 10% in Canada overnight to close at around $3.77 nzd. Looking good for today's trading. Time to sell? Mmm...I think I'll sell half to lock in some profit. The rest I'll keep for now anticipating more to last night's bullish run in the price of gold.

[Bobcat.]

Fair enough Moosie, but here are my reasons for selling half:

1. OGC has been lifting against the PoG over the past month (since their audited financial report was so well received, esp on the Toronto exchange) and has already had a good run up 30% over that timeframe.

2. Have a look at the technical resistance last year on the asx at around $3.50 aud. That will almost certainly be tested today and provide some resistance.

3. Hedging at just over 1300usd constrains revenue as the PoG continues to lift.

BC

[Bobcat.]

My offers on both the nzx and asx got hit this morning - @3.72 and 3.47 respectively. I'm out but still do like this stock, and so will come in again on the next dip.

All the best to those of ya' still holding.

[GR8DAY]

My offers on both the nzx and asx got hit this morning - @3.72 and 3.47 respectively. I'm out but still do like this stock, and so will come in again on the next dip.

All the best to those of ya' still holding.



......yea good on ya BC. As per usual I bailed a bit too early.....just cant help myself when there's a profit sitting there. Always a hard call tho On OGC.

[Joshuatree]

Dropping under $A3 atm buys just more than sells.

[Bobcat.]

I've just bought into this stock again, and will average down if and when it dips again. There is a heap of value in their Philippines operation that is yet to be unleashed. Very little debt, good cash-flow, sound Kiwi management, a bit of hedging (at around current price of gold but nonetheless still risk mitigating) and a very good ASIC - delivering on their promises (which is more than what I say for most Aussie gold diggers at the mo').

If it drops to around $3 NZD (~$2.82 AUD) that will trigger for me some more buying. This stock is a wee beauty to trade. Go you good thing.

BC

[BlackPeter]

I've just bought into this stock again, and will average down if and when it dips again. There is a heap of value in their Philippines operation that is yet to be unleashed. Very little debt, good cash-flow, sound Kiwi management, a bit of hedging (at around current price of gold but nonetheless still risk mitigating) and a very good ASIC - delivering on their promises (which is more than what I say for most Aussie gold diggers at the mo').

If it drops to around $3 NZD (~$2.82 AUD) that will trigger for me some more buying. This stock is a wee beauty to trade. Go you good thing.

BC
Agree - it appears to be a well run company (and looking better than many other mines). For me it feels however still a bit dear to get in again ... given their hedging (i.e. still little upside) ... and anyway not quite sure what PoG is doing over he next 12 months or so.

[theace]

Good news?

http://www.newstalkzb.co.nz/auckland/news/nbnat/1750302342-oceana-gold-granted-consent-to-mine-beneath-waiuta

[Bobcat.]

Last week, OGC held very firm on the asx at 2.98 / 3.00 AUD. Even though the PoG is stuck in a rut just above 1300usd, OGC's sp is this week now climbing again, slowly but surely.

We could do worse than to climb aboard this well oiled gold and copper digging machine...and yes, the resource consent obtained for Waiuta is good news (and a long time coming). It will provide something as a replacement for Reefton but the jewel in the crown is now Didipio.

BC

[BlackPeter]

Good news?

http://www.newstalkzb.co.nz/auckland/news/nbnat/1750302342-oceana-gold-granted-consent-to-mine-beneath-waiuta

Good news? Great for the coast to have some more jobs ... just don't tell the Greenies :sleep:.

[theace]

Reason for today's drop?

[Joshuatree]

Don't think it was specific most Goldies sold off again as the greenback gained.Goldprice down and The Goldbugs Index in the US down 3.55% in the USA. Also talk of ECB doing a QE.OGC's drop was higher than most.

[Bobcat.]

I for one topped up at $3. Remember two things:

1. Hedging at around $1310usd
2. Forward guidance is unchanged for the full year (in spite of lower grades and production last quarter due to planned maintenance).

A nice stock to trade this one...and it's well managed. Fundamentals are sound.

[BlackPeter]

I for one topped up at $3. Remember two things:

1. Hedging at around $1310usd
2. Forward guidance is unchanged for the full year (in spite of lower grades and production last quarter due to planned maintenance).

A nice stock to trade this one...and it's well managed. Fundamentals are sound.

Too hot for me. Sort of feels the market is not really worried about the hedges (and they don't stand forever) - and OGC follows mainly PoG. And yes - it might rise, but then, it might further drop as well.

Anyway - good luck, you normally have a quite good hand in timing of mining shares ...

[Bobcat.]

Too hot for me...

Anyway - good luck, you normally have a quite good hand in timing of mining shares ...

Not this time - OGC down 8% on Toronto overnight - but I do like this stock. It's fundamentals stack up well, technically it now looks oversold, and the POG is due for a bounce (off a 1250usd double bottom) and so I will be averaging down sometime today.

BC

[Derain]

Not this time - OGC down 8% on Toronto overnight - but I do like this stock. It's fundamentals stack up well, technically it now looks oversold, and the POG is due for a bounce (off a 1250usd double bottom) and so I will be averaging down sometime today.

BC

Went up 3% on Toronto, are we expecting some rebound locally?

[theace]

OGC on the ASX vs the NZX - What is the difference? ASX shows its down 0.02 to $2.68, whereas NZX shows up 0.15 to $3.04. Is it dues to the exchange rate?

If I were looking at buying, is one preferred over the other (ASX or NZX)?

[Bobcat.]

If I were looking at buying, is one preferred over the other (ASX or NZX)?

Depends entirely on what you expect the AUD/NZD to do. If you expect the AUD to rise against the NZD then buy OGC on the nzx, otherwise if the converse is true, buy on the asx.

Personally, over the past couple of weeks, I've been buying OGC on the nzx since I've been expecting some nervousness around our general election.

If there's not much AUD/NZD movement, then not an issue where you buy them...but buy them you should. Did you see their latest announcement?

Discl: now my largest holding.

[macduffy]

In theory, the market should arbitrage away any currency movements but in practice this isn't always so, particularly for the less frequently traded stocks. Likewise, "removal" from one register to another is normally permitted but this may not be practicable for a quick sale on the "other" exchange.

[angrytoenail]

OGC closed 18% down on Friday on the TSE. Interesting to see what happens on the ASX/NZX on Monday.

[Derain]

Any idea what was behind the big drop?

[youngatheart]

Driven from Toronto trading - up 8% overnight, then nzx follows, then asx.

This is a much loved stock - honest management, delivering on promises, a very low ASIC, good EPS, little debt and tidy financial report.

POG climb has some way to go IMO, and so I'm still holding, sitting on my hands, expecting it will top 3.50NZD sometime next week.
BC

Ohno Bobcat, you must be hurting right now?

[Bobcat.]

Ohno Bobcat, you must be hurting right now?

Yes, I am a little.

I'm wondering if the sp drop is due to some bad news from the US court case around OGC's claim against the El Salvadorian government. It must be due about now. I'll dig around to see what I can find.

[Bobcat.]

Ohno Bobcat, you must be hurting right now?

Yes, I am a little.

I'm wondering if the sp drop is due to some bad news from the US court case around OGC's claim against the El Salvadorian government. It must be due about now. I'll dig around to see what I can find...

Situation: Gold mining along with other industrial activities has led to extensive damage to rivers in El Salvador, leaving only 2% of them with drinkable water. As a result, the public there in 2007 was surveyed and indicated El Salvador was not an appropriate country for metallic mining. Pacific Rim, a mining company based in El Salvador at the time decided to sue El Salvador for the denial of a permit to open the proposed El Dorado gold mine. Pacific Rim was purchased by OceanaGold. The ongoing lawsuit is being decided in Washington DC by a World Bank tribunal which oversees international investment disputes of this type. At least 3 murders of anti-mining activists have occurred over the years in El Salvador and have been attributed to this controversy, pitting locals who support the mine for jobs against those who oppose it for health and environmental reasons. The case is still pending at this time. A petition has been launched online by SumOfUs.org to ask OceanaGold to drop the lawsuit against El Salvador.

[Ryrynz]

Thought I picked the turn of the tide with this one, now this.. not that I put in big money.. from +40% ROI with my portfolio 6 months ago to -10%.. ouch, I sure can pick em..

[elZorro]

Thought I picked the turn of the tide with this one, now this.. not that I put in big money.. from +40% ROI with my portfolio 6 months ago to -10%.. ouch, I sure can pick em..

Keep an eye on the DOW/Gold ratio and also, the gold price. Look at the chart of OGC vs gold price. The big buyers use simple equations to set the going price of OGC, PoG must be a big factor.

[tobo]

What is it with these incessant 200 and 100 share bids AND offers?

[BFG]

What is it with these incessant 200 and 100 share bids AND offers?

Market maker making a market.

[theace]

A news item: http://www.idahostatesman.com/2014/10/21/3439990/sitting-on-a-gold-mine.html?sp=/99/1640/

[BlackPeter]

Q3 results are out:

http://www.oceanagold.com/assets/Uploads/141030-Q3-2014-Results-Press-Release-FINAL.pdf

Looking good - including a quite promising outlook:

"Mick Wilkes stated, “Looking ahead, the Company is well on track to achieve its full year production and cost guidance. We expect a strong finish to the year where we further strengthen the balance sheet with increased cash and repayment of an additional $30 million in debt. We will continue to maximise value from our existing operations and we will identify and evaluate new value add opportunities for our shareholders and other stakeholders.”"

Discl: Bought some weeks ago back in - it feels to me the upside potential is bigger than the downside risks.

DYOR - my crystal ball is cloudy ...

[Derain]

Meanwhile the sp is down another 8.4%, this is primarily due to the falling gold prices I persume?

[BlackPeter]

Meanwhile the sp is down another 8.4%, this is primarily due to the falling gold prices I persume?

Probably ... though always surprised how strongly the OGC SP reacts to PoG changes, despite OGC being quite strongly hedged against these very movements. In theory their SP trend line should be much flatter (less correlated with PoG and more with their individual company performance), but I guess many traders just look at the PoG and buy miners if PoG is high and sell miners if PoG is low without looking at the companies hedging policy.

Obviously - if we assume that PoG will go consistently down (and stay there), than at some stage it would make a real difference on the value of OGC, but this daily / weekly jitter should not.

But what do they say? Markets can behave irrational for a much longer time than anybody's budget can cater for. Just diversify, observe and enjoy the ride ...;)

[elZorro]

Probably ... though always surprised how strongly the OGC SP reacts to PoG changes, despite OGC being quite strongly hedged against these very movements. In theory their SP trend line should be much flatter (less correlated with PoG and more with their individual company performance), but I guess many traders just look at the PoG and buy miners if PoG is high and sell miners if PoG is low without looking at the companies hedging policy.

Obviously - if we assume that PoG will go consistently down (and stay there), than at some stage it would make a real difference on the value of OGC, but this daily / weekly jitter should not.

But what do they say? Markets can behave irrational for a much longer time than anybody's budget can cater for. Just diversify, observe and enjoy the ride ...;)

An article by ODT on the report, early this month. http://www.odt.co.nz/news/business/321936/oceana-gold-set-meet-forecast

OGC still tracks the PoG very tightly on a 3-6month period. A group of analysts have been shown through Didipio, so the market may expect some favourable broker reports.

[BFG]

An article by ODT on the report, early this month. http://www.odt.co.nz/news/business/321936/oceana-gold-set-meet-forecast

OGC still tracks the PoG very tightly on a 3-6month period. A group of analysts have been shown through Didipio, so the market may expect some favourable broker reports.

"However, the third-quarter profit of $16.9 million was down more than 60% on the $US43.7 million of a year ago, in part because of a weakened global spot price."

Shows that PoG still impacts those margins quite a bit. The NZ operations are barely profitable at current spot prices and it is obvious that higher OPEX costs impact as well. Going ahead, I hope OGC can greatly exploit its other Phillipine sites with copper credits as they now do with Didipio if they are to continue being a gold miner. Looks to me like NZ operations will be downgraded/shuttered over the coming years while the companies future growth is obviously offshore.

[JBmurc]

TGR: You said that investors should look to gold companies that can produce positive cash flow at $1,000/oz. How many companies can actually achieve this?

CL: Not many. Gold at $1,000/oz could potentially bankrupt even companies as well run as Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE).

TGR: Can we expect a revaluation of the few companies able to profit at $1,000/oz gold?

CL: I'm not sure we will get a revaluation upward because it depends on investor perceptions of the gold mining sector, and that depends on the gold price. One thing for sure is that I sleep well at night holding these companies because even at $1,000/oz, they can flourish. And when the bottom happens, these companies with cash will be able to buy out the overleveraged companies.

TGR: Which junior gold producer is your current favorite and why?

CL: I own mostly OceanaGold Corp. (OGC:TSX; OGC:ASX), a company headquartered in Australia. It has mines in New Zealand and the Philippines. In particular, at its Philippines mine, the copper content is such that its gold producing cost is negative. So we are talking about an exceedingly healthy margin. Even at $500/oz gold, OceanaGold would be making a lot of money.

TGR: You are referring to Oceana's Didipio mine?

CL: Exactly. I've been there twice. This is one of the few recent mines that was actually on time and on budget and produced more than its original plan.

TGR: Didipio has just over 2.8 million ounces (2.8 Moz) Measured and Indicated (M&I) gold and 250 Kt copper. What is its copper production price?

CL: It uses copper as a byproduct credit; that's why the gold is free. This is the first mine in the area and it has huge exploration upside. Oceana is accumulating cash to fund exploration of satellite deposits. This can be a district play. In New Zealand, Oceana is a high-cost producer: about $1,000–1,200/oz. But the company has hedged the next two or three years of production to keep this operation cash-flow positive.


http://www.mining.com/web/chen-lin-says-gold-miners-need-to-produce-at-1000oz-or-less-to-survive/

[Joshuatree]

Thanks JB thats reassuring. My other primo stocks are in order from best ; NST.BDR and a few MML. And micro play CAS.

[BFG]

This company is on to it and it's model of copper off-take as diversification and PoG fluctuation management is part of the reason I invested in AVB (gold as an extra to copper, inverse)

[elZorro]

OGC looking around for new assets: not in Australia, maybe NZ or cheaper labour environments.


5/12/2014 — Gold
OceanaGold on the hunt for new opportunities
By Ross Louthean
The premier New Zealand and emerging Filipina miner OceanaGold Corporation (ASX, NZX & TSX: OGC) is reportedly on the lookout for new opportunities.
The company has filed away the recent failed proposal to merge with international gold miner Alacer Gold and is looking for new opportunities.
Alacer holds a gold project in Turkey which is to make its transition from oxide to complex sulphide ore.
Leading Australian mining journalist Barry Fitzgerald said this predicament was seen as making Alacer a suitable fit with OceanaGold which several years ago mastered its recovery from complex low grade ore at Macraes and went on to campaign treat gold concentrates from its Globe-Progress mine at Reefton.
One of Alacer’s original assets was the acquisition a gold mining operation at Higginsville in Western Australia through a corporate takeover but it underperformed and was now in the hands of a strong performing tin and gold miner Metals X Ltd (ASX: MTX).
Writing in The Australian, Fitzgerald said OceanaGold’s current performance was underpinned by the strong operating results from the Didipio gold-copper mine in the Philippines.
Fitzgerald said the NZ operations were slated for closure over the next three years due to the gold price and this has prompted a hunt by the company for a replacement.
Chief executive Mick Wilkes told Fitzgerald that the NZ mines were not low cost operations and never would be, but they were not up for sale. However, if someone walked in with a fat cheque “then we would have to think about it.”
Wilkes said the NZ mines had provided the company with strong technical skills, including underground mining.
He said OceanaGold was not wanting to become a goliath but seeking quality assets that would underpin a company with a market capitalisation of between $A3 billion to $A5 B. He indicated that Australia – where cash operating costs for gold miners were among the most expensive globally - was not considered a prime focus.
He told Fitzgerald OceanaGold did not want to put a target on growth ambitions but four or five “high-quality operations” would make the company a substantial mid-tier company.
Source: theaustralian.com.au

[Joshuatree]

Thanks for that elZ. Timing is great for a purchase in a totally undiscerning smashed up sector, price wise.

[BFG]

NTL up for consideration? I've always been of the mind they should team up and drill that Mystery Vein!

[jonu]

NTL up for consideration? I've always been of the mind they should team up and drill that Mystery Vein!

Would seem a natural fit if that australian article is anything to go by eh BFG? Undervalued and starting to produce at high margin, even with a low POG. Who knows, but in the NZ field they would have to be on the radar.

[cyclist]

I have been a little bit surprised about the share price sluggishness in the light of reasonable gold strength (even with Friday nights decent pop, OGC TSX barely got excited). Their only real exposure to the gold price is via Didipio, and that also has significant copper price exposure. I did some sums this morning using the mid-point of their recent didipio gold/copper production estimates (i.e. 110000 oz gold and 22000 t copper): Didipio annual revenue, based on gold/copper prices since the beginning of the year is as follows. The gains in gold have been fully cancelled by the drop in copper.





Date



Price Gold (per Oz)
Price Cu (per pound)
Annual Revenue (m)


Jan 16, 2015
$ 1,280.08
$ 2.62
$ 267.74


Jan 15, 2015
$ 1,262.03
$ 2.56
$ 262.89


Jan 14, 2015
$ 1,231.07
$ 2.51
$ 256.96


Jan 13, 2015
$ 1,233.17
$ 2.64
$ 263.89


Jan 12, 2015
$ 1,231.51
$ 2.73
$ 267.63


Jan 11, 2015
$ 1,225.73
$ 2.76
$ 268.55


Jan 09, 2015
$ 1,222.82
$ 2.76
$ 268.13


Jan 08, 2015
$ 1,208.22
$ 2.77
$ 267.20


Jan 07, 2015
$ 1,212.53
$ 2.76
$ 267.19


Jan 06, 2015
$ 1,216.29
$ 2.77
$ 267.99


Jan 05, 2015
$ 1,203.48
$ 2.77
$ 266.54


Jan 04, 2015
$ 1,183.95
$ 2.81
$ 266.57


Jan 02, 2015
$ 1,188.64
$ 2.82
$ 267.38


Jan 01, 2015
$ 1,186.94
$ 2.83
$ 267.63

[Joshuatree]

Thanx ; interesting to me.Pretty powerful correlation there cyclist. Doesn't seem to be an aberration!!?.

[Joshuatree]

OceanaGold Exceeds 2014 Production Guidance Range Announcement out ,looks very good.

[cyclist]

OceanaGold Exceeds 2014 Production Guidance Range Announcement out ,looks very good.

Yep. Regardless of gold and copper price fluctuations, they are generating a truck load of cash at the moment. Will put them in good shape to develop new opportunities.

[BFG]

Market leader in AISC and exceeding guidance (as usual). Always the market leader in my books :)

[mistymountain]

Yes; things are ticking away nicely.

There are many commentators saying Gold Price will come back through 2015 as currencies show weakness.

Earlier this month the controversial Rich Dad of Poor Dad fame explained why he is actively buying physical gold as an insurance against repercussions caused by global money printing.

My bet is a POG at $1500 mid year... famous last words?! Cheers

[BFG]

Gold and copper both well up again last night ahead of ECB decision on Friday (our time) on full fledged QE for the Eurozone. With world markets looking shaky and more stimulus coming forward, it looks like we might get another run nowhere but up in gold in 2015.

[elZorro]

OGC can be a safe bet when gold is on the rise, having a 10-bagger run after the GFC. There has also been talk about it being a manipulated share. However, most times I check, it follows the gold price over a 6 month or so period. There is another thing I've just noticed about this company. Jake Klein is no longer on the board. He resigned in July 2014 and was immediately replaced with a Mr Sweeney.

http://www.newswire.ca/en/story/1392406/oceanagold-announces-appointment-of-paul-b-sweeney-to-the-board-of-directors

I thought at one stage that Jake Klein was nearly in position to be the next Chairman of OGC, being head of the powerful remuneration committee. But I see he's being adequately compensated at Evolution Mining. I'm kinda happy about that, he seemed to be a real smooth wheeler-dealer.

Didipio has turned out to be a stellar investment after all, MistyMountain. You were right about that.

And now the point is, will OGC reach the MCAP of $1Bill like it has done before? And manage to stay there?

[BFG]

Got in today expecting to pay $3.00 @ match price but instead got darkpooled out for $2.93 (thank you ANZ!). Eurozone announcing a massive 18 month bond buying program, ultra low interest rates, falling AUD & NZD as well as gold closing solidly above $1300 USD p/ounce are all bullish to me. Not to mention the downtrend was solidly broken this week.

I'm happy to see a repeat of 2012s epic run upwards (which I also participated in) :)

[dingoNZ]

Up 35% for the year so far, go you good thing!

[BFG]

I believe that NZX traders have a unique opportunity today. As of Friday on the TSX OGC closed down 6.5% from monthly highs. This was due to a pullback in the price of gold after QE in the eurozone was announced. However, Syriza has won a huge victory in Greece and will throw Europe into massive financial uncertainty yet again:

http://m.bbc.com/news/world-europe-30975437

As some may sell down in the brief few hours before the ASX opens and the gold market opens, there may be a brief window to pick up cheaper shares before gold starts rocketting (imho). That's my thesis and I'm playing to it :)

Disc - holding @ $2.93 from Friday and looking to buy more.

[elZorro]

Sounds like a reasonable plan, BFG. This article from NZResources today, will help keep the price low. Everything appears to hinge on Didipio and surrounds, in the medium term. Digging out ore over here for 1 gram per tonne does seem a bit extreme.


26/1/2015 — Gold
Coronation unlikely to generate longevity at Macraes
By Simon Hartley
OceanaGold Corporation’s (NZX, ASX & TSX: OGC) new Coronation open pit development at its Macraes site is progressing toward production, but the estimated 100,000 ounces of gold it contains will not extend the overall Macraes mine life.
With mothballing of Macraes scheduled for 2017, dependent on the gold price, some staff had held out hope the Coronation pit might offer some mine life extension - as was envisaged by the company during the consenting application period in 2013.
OceanaGold produced more than 307,000 ounces of gold last calendar year, but with more than one third coming from its expanding, and far cheaper to operate, Didipio gold-copper mine in the northern Philippines.
Rising New Zealand production costs, some low ore grades to work through and weakened global spot gold prices have prompted OceanaGold to reduce Macraes and Reefton's respective mine lives - with a proposed mothballing of NZ operations by the end of 2017.
Conversely, exploration and infrastructure expansion was ramping up at the Didipio open pit, targeting development of an estimated high-yield underground mine; with the copper by-product sales hugely offsetting gold production costs.
The company's more than 600 East Otago staff contribute about $300 million from wages into the Otago economy, and there are a further 250 jobs at Reefton - both mines having shed more than 260 jobs in the past 18-months.
The 62 hectare Coronation pit was in December 2013 granted 178 consents for 35 years, along the divide of the Shag and Taieri Rivers, between Sister Peaks and Highway Hill.
OceanaGold was asked for an outlook on Coronation. A spokeswoman responded that ore mining had begun at Coronation last September and gold processing would begin this quarter at the existing Macraes plant, and would continue until 2017.
“It [Coronation] was always part of the original mine plan and has not extended the life of mine,” the spokeswoman said.
The pit contains about four million tonnes of ore at a gold grade of just over 1 gram/tonne of gold and Coronation was expected to produce about 100,000 oz of gold, she said.
Separately, some industry sources have speculated that if Coronation was a new, standalone, greenfields prospect, such a low ore grade of 1 g/t may not have been commercially viable.
At the time of the 2013 consent applications for Coronation, when global gold prices were still buoyant but just beginning to slide toward what would become a game-changing scenario for gold mining, OceanaGold had expected the Coronation development to extend the mine life by at least a year, to 2021.
However, by mid 2014, a $100 million cost-saving programme had been initiated, more than 250 jobs were lost and Otago and the West Coast mine lives were cut by three years.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.

[yabster]

nice "theory" except you forgot about Australian day...;)

[BFG]

nice "theory" except you forgot about Australian day...;)

Haha, I sure did! Oh well, just gives one more time to accumulate since the ASX is the driver of this stock. The fact that the Kiwi is falling against both the CAD and AUD makes it even more appealing if it goes up on both the TSX and ASX. Gold is also becoming more expenisve in AUD terms as it falls.

Gold already up $3.00 today. Looking for a close north of $1300 and some consolidation after another run. Good times ahead :)

[sb9]

At $2.83 does it provide a good entry point, appreciate your thoughts.

[theace]

Dividend announcement .... anyone work out what this will equate to in NZD?

[theace]

Answering my own question .... (from the press release) "Payments to holders of CDIs and Common Shares traded on the NZX Mainboard will be made inAustralian or New Zealand dollars.2 All exchange rates will be calculated based on the ‘noon rate’prevailing on 20 April 2015 as reported by the Bank of Canada" ... so am guessing around NZD$0.05/share


Dividend announcement .... anyone work out what this will equate to in NZD?

[BlackPeter]

Answering my own question .... (from the press release) "Payments to holders of CDIs and Common Shares traded on the NZX Mainboard will be made inAustralian or New Zealand dollars.2 All exchange rates will be calculated based on the ‘noon rate’prevailing on 20 April 2015 as reported by the Bank of Canada" ... so am guessing around NZD$0.05/share

Not sure, whether I expected a divvie, but hey, why not, if they don't need the money? Tax treatment of the NZ divvie will be interesting - they still have some operation here - maybe they can utilise some of their recent writeoffs / losses in NZ?

More important in my view is however their overall outstanding result - Their US$563m being well in the upper half of analyst expectations (US$515m to US$584m with a median of US$556m).

7087

I suppose this might give the SP some boost. Great result - keep going!

[Yoda]

Re:#1170


Well, the 50 hasn't crossed the 200 yet, so we have a little dead cat, .i bought at 3, but should have maybe followed my own rule and not been so hasty.
smart people bought in january, so they don't care,

[Joshuatree]

looked like a great result to me with a div!!. Cant find when last div was (or how much). So diddly squat from mkt. Gold price only, moving s/p around it seems regardless of the quality of results.

[Yoda]

Gold price back on the way up then , and up she goes too!

[Joshuatree]

Oceania to buy Waihi Goldmines from Newmont and Quarterly out.S/P up 3.2%. Net profit $24,465,000.

US$101 million is the price plus a 1% royalty. Current reserves 360koz @ 5.52gt

[elZorro]

Oceania to buy Waihi Goldmines from Newmont and Quarterly out.S/P up 3.2%. Net profit $24,465,000.

US$101 million is the price plus a 1% royalty. Current reserves 360koz @ 5.52gt

The net smelter royalty is on a recent find North of the current Waihi operations? Not sure what that would be, it could be something not already divulged, or even be WKP.

http://www.streetinsider.com/Press+Releases/Newmont+Signs+Agreement+to+Sell+Waihi+Operations+i n+New+Zealand/10503196.html

The price includes staff and contractual obligations, promises to the Waihi community etc.

The royalty is on 300,000oz max, so it's probably Correnso. Correnso gold isn't online yet, according to this January article.

http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11388306

OGC news release:
Newmont will also retain a 1% Net Smelter Royalty for gold ounces mined from one specific exploration tenement capped at 300,000 ounces of production.


Since Newmont don't own all of WKP or the Waihi West exploration area, and Correnso is yet to officially produce gold, maybe it's still an exploration tenement.

[elZorro]

ODT article on the two main miners, it says that $5mill a year will continue to be spent on exploration near the Martha pit. So maybe the net smelter royalty applies to Waihi West, and being a few million at most, would cover some of the drilling costs for Newmont to date. It implies that OGC didn't effectively pay anything up front for the Waihi West exploration permit, which would have been tricky anyway, as it's technically still a JV with AXG.

http://www.odt.co.nz/news/business/340701/oceana-gold-buys-waihi-1323m

However, since Newmont's press release mentioned a recent exploration tenement north of the current workings at Waihi, I am coming to the conclusion that since AXG is broke, still owes a lot of cash to Newmont for its small share of drilling work on WKP, and Newmont has recently stitched up a formal binding document on both JVs (WKP and Waihi West), then the 300,000oz NSR deal would more likely be the WKP deposit that is reasonably well defined in a registered report. There is only one drill out of four into Waihi West that has struck anything useful, that's not enough yet to write into a formal proposal.

Newmont is very well cashed up at the moment, and is probably eyeing another gold mine with better payback than is available around Waihi, NZ. They'll also get to hand off any long-term rehabilitation issues to another firm, although based on their track record, I'm sure OGC will always do the right thing.

There has been some production already from Correnso, the mine access work will be finished in mid-2015. There will be no filling of the Waihi Pit with water to make a recreational lake until Correnso is mined out, that's presuming OGC don't find anything else. The water table must carry through into the surrounding area, so the pit pumps have to be left on.

Bemused Newmont investor:
http://seekingalpha.com/article/3120666-newmont-mining-agrees-to-sell-its-waihi-operation-in-new-zealand-to-oceanagold

[elZorro]

Evolution Mining has also hit the headlines recently with a merger to another producer in Australia, and has bought into Phoenix.

http://www.evolutionmining.com.au/wp-content/uploads/2015/05/150429-Phoenix-Gold-Investment-F.pdf

The connection to OGC is that Jacob Klein, the chairman of Evolution, was at one stage on the board of OGC and in some powerful positions under James Askew, the Chairman. James Askew is now on the board of Evolution Mining too, and has been chairman of OGC since 2006.

[Joshuatree]

Thanks elZ thats an int connection. While the intended Waihi Mine/cum lake is hardly setting the s/p on fire maybe the shakeup and takeover/mergers will get a little excitation. Confidence that there is a lot of Gold still there in Waihi and surrounds is hopefully great land banking for the future as long as Waihi township doesn't subside into a big long drop:).Mergers /Jockeying happening in a few sectors atm; Telcos another.

[elZorro]

Thanks elZ thats an int connection. While the intended Waihi Mine/cum lake is hardly setting the s/p on fire maybe the shakeup and takeover/mergers will get a little excitation. Confidence that there is a lot of Gold still there in Waihi and surrounds is hopefully great land banking for the future as long as Waihi township doesn't subside into a big long drop:).Mergers /Jockeying happening in a few sectors atm; Telcos another.

I think I made a mistake earlier though. The permit OGC will need to pay a smelter royalty on, if it goes into production, is EP51771, which is Waihi North, owned by Newmont at this stage. They've found something there. This document from OGC mentions it.

http://www.oceanagold.com/assets/documents/Presentations/150429-OGC-Waihi-Transaction-Presentation-FINAL.pdf

The permit is big, way bigger than Martha pit, at 1965 Ha. It expired on 27th April 2015 but an extension application has been lodged. The Permit Map is below. Maybe the drilling rig on Savage Road was heading into that permit, or more likely the drill(s) were made from the side of the Martha pit. Apparently, since the recent wall collapse in one part, they've stopped mining the pit indefinitely. It's all Correnso now.

They also mention WKP, as an option to continue with exploration. But there are lots of other spots too, tenements held by Newmont.

[elZorro]

Not much seems to be happening with the OGC shareprice. It usually tracks the gold price, so it'll be interesting to see any divergence from this pattern. The big miners appear to think gold has reached its low for this cycle, they're getting organised to use their capital on new mines. Some projects are bigger than others, and Newmont is heading for the top end.

http://www.mining.com/newmont-sells-nz-gold-mine-for-106-million/

From GoldFM, the Waihi Radio station:

http://www.goldfm.co.nz/general-news/2015/newmont-to-invest-waihi-sale-money-in-australia/

Tanami is about 3x bigger production than Waihi, it's fly in, fly out, remote underground, has to be an easier proposition.

http://www.newmont.com/operations-and-projects/australia-pacific/tanami-australia/operation-facts/default.aspx

[Joshuatree]

Gold Standard ventures GSV on NYSE and TSX is " an advanced stage gold exploration company focused on district scale discoveries in Nevada." Near surface oxide Gold.

Oceania is buying re 25 million shares in GSV@.65c share 14.9 %.

The Pinon deposit has an est of 20.84 million tonnes grading 0.63 g/t totalling 423,000 oz gold and inferred 56 million tonnes @ 0.57g/t 1,022,000 oz. Darkstar deposit nearby has 23 mill tonnes @ 0.51 g/t totalling 375,000 oz. Heapleach process on site planned. The carlin trend is the most prolific gold mining belt in western hemisphere

S/P jumped over M/A last 10 days on increasing vol

[elZorro]

Gold Standard ventures GSV on NYSE and TSX is " an advanced stage gold exploration company focused on district scale discoveries in Nevada." Near surface oxide Gold.

Oceania is buying re 25 million shares in GSV@.65c share 14.9 %.

The Pinon deposit has an est of 20.84 million tonnes grading 0.63 g/t totalling 423,000 oz gold and inferred 56 million tonnes @ 0.57g/t 1,022,000 oz. Darkstar deposit nearby has 23 mill tonnes @ 0.51 g/t totalling 375,000 oz. Heapleach process on site planned. The carlin trend is the most prolific gold mining belt in western hemisphere

S/P jumped over M/A last 10 days on increasing vol

Yes, still selling well, this company. I've had a look on the gold trend against OGC, it's still following gold but is also trending away upwards noticeably. NZResources has an old story going this morning.


18/5/2015 — Gold
OceanaGold’s acquisition trail blazing
By Simon Hartley
Cash-rich OceanaGold Corporation (TSX, ASX & NZX: OGC) has been a busy acquirer.
Its latest purchase was a 14.9% stake in Canadian gold exploration company Gold Standard Ventures Inc (TSX-V: GSV) for $C16.24 million ($NZ18.07 M), which is exploring for gold in northern Nevada.
The company took a $12.1 M stake in an El Salvadorean gold and silver exploration company in late 2013, and earlier this month agreed to purchase Newmont Mining Corporation's Waihi gold and silver operations in the central North Island, for $132.2 M.
Aside from its Macraes open pit and underground operations in east Otago and an open pit at Reefton on the West Coast, OceanaGold continues ramping up production from its Didipio gold-copper mine, in the northern Philippines island of Luzon.
In its quarterly report last week, the company booked a decline in after-tax profit, from $US58.9 M a year ago to $US24.4 M, but paid off a further $US13.4 M debt and retained cash in hand of $US59.6 M.
Chief executive Mick Wilkes said in a market update, taking the Gold Standard Ventures stake was an opportunity to gain exposure to another jurisdiction, in one of the most prolific gold belts in the world.
OceanaGold was acquiring the common shares for investment purposes, but depending on market conditions, it may acquire more shares or other securities of the company, or dispose of them, he said.
Gold Standard Ventures has said that in exploration to date about 385 drill holes have been completed at its Pinion prospect, and in March had released its first gold resource estimates.
Its website states the Railroad-Pinion gold prospect was its flagship project, in north central Nevada, which covers about 115 square kilometres. The exploration area is adjacent to Newmont's Rain and Emigrant mines, about 47 km south-west of the city of Elko.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.



I got the impression that Newmont lost a bit of interest in AXG's JVs, and they virtually decimated their Waihi area exploration team for a while, so it was more general than that too. OGC might be a bit more fired up when they get organised over in Waihi. That's good for technical jobs in the area.

[elZorro]

Newmont has formally dropped the MacMahons contract for open pit mining at Waihi. This clears the way for OGC, they can choose what to do about the remaining gold in the pit, once they take over. 50 jobs lost in Waihi though, and a lot of expensive equipment that has to be mothballed.

http://www.stuff.co.nz/business/industries/68923193/waihi-faces-50-job-losses-as-newmont-cuts-back-gold-mining

A chart of OGC vs gold price shows that sentiment for this miner is improving over the last few months.

[elZorro]

At the end of the AGM on June 12, a press release was put out showing that all resolutions were passed.

http://www.oceanagold.com/assets/documents/AGM-materials/PROOF-916CRN2686-OGC-2015-Management-Proxy-Circular-V1.pdf

CEO Mr Wilkes will see an immediate benefit of new vested shares on option, two or three other executives too. No director changes.

In May, the ODT had this article on various incomes for the top executive and board. In view of the later buyout of Newmont's Waihi assets, which may be seen by some as risky, others as a good idea, these figures don't seem too unreasonable.

http://www.odt.co.nz/news/business/342390/executive-belts-few-notches-out

However, last evening towards the close of trade on the TSX, there was a sudden drop in the shareprice of about 5.5%. Down to C$2.75, 3mill shares traded. There doesn't seem to be a press release to cover this.

[Joshuatree]

Cheers elZ. Good breakout today by Oceania.The best performer of the goodies i looked at with re a 6.7% gain. Been quite awhile ; nearly a year since OGC was last @$3.35.Hope it gains momentum past Grexit worries.

[theace]

Wondering what caused the late drop in SP

[elZorro]

Wondering what caused the late drop in SP

It's the same pattern of selling later in trading, that happened on the TSX a while ago. Some traders are getting out of the market overall, they have made good gains I guess. However, the overall pattern with OGC shares has been good since March 2015. Since OGC follows the gold price normally, the 12 month pattern shows this well, until March 2015, when OGC just started holding up in value.

If gold becomes a bit more pricey in a flight to quality, OGC should do well.

My only warning about this would be - that OGC has a habit of their board turning a proposed 'line of credit' into a 'capital raising', once the shareprice looks strong enough to cope with it.

OGC take over Waihi Gold Co on 1st July, and in mid May it looked like the Martha pit will be out of action for some time.

http://www.goldfm.co.nz/general-news/2015/newmont-waihi-gold-update/

[Joshuatree]

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01645748) OGC buys Romarco Minerals in USA a lowest cost long life operation @ premium of re 72% based on closing s/p on 29th. 0.241 OCG share foreach Romarco share.Equity value ofC$856 million. Combined entity a sector leading lowest cost gold producer EST 540,000 oz by 2017 AISC of less than US$600

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01645751) Q2 operational and financial report

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01645755) Q2 2015 MD&A

[trader_jackson]

wow I don't really keep a sharp eye on this stock... but this seems like a huge announcement (with the acquisition)...

[catchbag]

Pleased to have been aquiring shares in OGC this year!

[Bobcat.]

It's not a done deal until approved by both company's shareholders in Sept/Oct...but yes the combined company is looking interesting and formidable. The share price may of course not lift much in the short term until analysts have dissected and digested this value proposition.

Anyone else dialing into the Webcast ?

12:30pm today (NZST) via 0800 453421

[Nasi Goreng]

The share price may fall by 20% today, it's 18% down in Canada.

[elZorro]

The share price may fall by 20% today, it's 18% down in Canada.

Yes, that's a big drop, and this time the acquisition by OGC of another miner (or soon-to-be miner) has triggered a share swap, meaning more OGC shares to be issued, and as the companies are roughly equal MCAP, that's a lot of shares. OGC does it again, plunders the shareholder valuation for ready cash. They paid 70% over the market valuation for Romarco too, so one has to hope the board knows what they're doing.

[BlackPeter]

Pleased to have been aquiring shares in OGC this year!

Pleased I sold out some weeks ago .. the market reactions says it all.

I agree that the move might be long term beneficial to the "new" company (size counts and lower ASIC is great) - i.e. I might be back at some stage ... but gosh - they paid a hell of a premium for Romarco ... and its all funded by the current OGC shareholders. Poor buggers ...

[kiwidollabill]

If the deal is depended on shareholder approval, surely they'll have trouble getting this across the line if all of the holders will be loosing out?

[kiwidollabill]

If the deal is depended on shareholder approval, surely they'll have trouble getting this across the line if all of the holders will be loosing out?

[catchbag]

If the deal is depended on shareholder approval, surely they'll have trouble getting this across the line if all of the holders will be loosing out?
That is a very good question! OGC have been tracking well in recent months. Liked the company direction, and must say my first reaction was positive. As I digest what it means (Particularly Short term) for Shareholder, im in 2 minds. One where I feel robbed, and another where I question the strategy and consider the company has my interests at heart longer term. Either way, took a hit today and it hurts.But I actually also understand often the big picture is important, and those in control may know far more about that than we do. Which way will I vote...not sure yet. Will I look to cut my losses now, nope.

[Bobcat.]

Don't forget they bought out Pacific Rim in 2013 but have yet to reap any benefits - still awaiting a very drawn out US Court Case decision re the legal (international Law?) obligations on the government of Guatemala.

I like this company's strategy but do get the impression its negotiating capability is a bit weak.

Today's webcast could be interesting.

[BlackPeter]

If the deal is depended on shareholder approval, surely they'll have trouble getting this across the line if all of the holders will be loosing out?

good question ... but then, you could argue that most of the damage is already done (i.e. the shareholders paid already, and obviously many have been happy to sell for a lower price) ... and the proposed benefits are in the future dependant on the approval. Shareholders who bought in cheap (like now) might be happy to approve. And for the others - what point now (after the SP drop) to decline the deal, unless you expect a further big drop after approval (which might come)?

[GR8DAY]

Sorry but not great news for current SHolders thats for sure......now a longterm hold. I would still be careful even buying at these levels....SPrice has been just under $2 already this year and that was just because of a falling GPrice and no news. WATCHER (for now)

[Bobcat.]

From here: http://www.asx.com.au/asxpdf/20150730/pdf/4304wf2g70rmn6.pdf

EBIT (YTD) has dropped 10.6%
NPAT (YTD) has dropped 58%

They have quite a bit of hedging in place for Gold sales, and yet their average sell price has still dropped 9%. For copper, it's a whopping 22%. The spot price for Copper is a real problem for OGC who mines a lot of it (about 25 tonnes per annum). Since May it's dropped from USD 2.90/t to currently USD 2.38/t.

Since the end of June (end date of this report), the price of Gold has fallen from USD 1170 to currently USD 1090, and copper from $2.64/t, and so if OGC were to produce an end-of-July report, it would be markedly worse.

August/Sept's seasonal lift in the PoG didn't happen last year but it may do this year given the massive sell off these past few months, in which case OGC's sp could lift a bit, but there are better opportunities elsewhere IMO. Right now, its dismal financial result and uncertainty around its latest takeover mean that even though the new combined company has great potential as a formidable low cost producer, I can't see investor confidence restored any time soon.

I sold out earlier this month, and will continue to sit on the sidelines for a while until the sell-off wears thin.

BC

[Nasi Goreng]

I made a reasonable loss with OGC earlier in the year. I bought around the 270's and sold about 15% lower.. just when it looked liked things were about to get worse, it corrected and went over the moon.

I think one of the things supporting OGC has been weak NZ dollar which has in effect lowered their production costs at a higher rate than the falling gold price. If the gold price falls much lower, there will become a point where operations in NZ are questioned.

I'm not interested in speculating further on if things go up or down. $700/oz is not that unrealistic and if it goes there and OGC is on the acquisition march, then you could be looking at an FMG situation when there was never a need to get there.

[Joshuatree]

http://www.bnn.ca/Video/player.aspx?vid=668565

http://www.bnn.ca/Video/player.aspx?vid=668780 (http://www.bnn.ca/Video/player.aspx?vid=668780)

Cheers guys; could be a big success down the road aways but in-between, an empty no mans land s/p wise.

[elZorro]

http://www.bnn.ca/Video/player.aspx?vid=668565

http://www.bnn.ca/Video/player.aspx?vid=668780 (http://www.bnn.ca/Video/player.aspx?vid=668780)

Cheers guys; could be a big success down the road aways but in-between, an empty no mans land s/p wise.

Yes, JT, interesting videos. I couldn't help but notice that OGC's shareprice took a tumble, but the target rose strongly, as they are offering a 70% bonus. If the market discounts that back to the target being 60% of the size of OGC, then the new combined value is about 80% of the previous price for OGC, assuming those shares get issued. And that's what the market priced: a drop from CAD$2.80 to CAD$2.30 is about 80% of the previous value.

[elZorro]

NZResources does a bit of background.


3/8/2015 — Gold
OceanaGold move catches market by surprise
By Simon Hartley
OceanaGold Corporation (TSX, ASX & NZX: OGC) has surprised the market with a $C856million ($NZ996.9 M) cashless purchase of a Toronto-listed US development gold mine in South Carolina - with potential to boost group gold production to more than 500,000 ounces of gold a year.
The acquisition is entirely based on issuing new OceanaGold shares in exchange for Romarco Minerals Inc shareholders' shares, with no cash component. OGC shares in the market will rise from 303.5 million on issue to 603 M.
The new number of OGC shares means there could be dilution in share value for OGC's existing shareholders, who hammered its shares, down almost 14% to $2.72 on the NZX following Thursday night's announcement. They closed the day at $2.66. On the ASX, OGC dropped 15% on Friday to $A2.36/share.
OceanaGold chief executive Mick Wilkes dubbed the asset addition the “new Oceana Gold,” predicting OGC was becoming the “lowest cost gold producer globally.”
He forecast Oceana would be producing more than 540,000 oz in 2017, when Romarco's Haile mine began production, meaning 75% of its gold would come from combined New Zealand and US mines.
Craigs Investment Partners broker Peter McIntyre said the sale of OGC shares represented some investors reducing their risk position and taking cash now, in case the almost doubling of share numbers diluted overall value.
He said the acquisition was another example of Oceana preparing to diversify its income stream, as the lifespan of its older NZ mine assets worked toward their natural end.
On the question of benefits to shareholders, Wilkes said the Haile project represented a high quality development asset which was “one of the best gold development assets currently owned by a junior.”
OceanaGold had remained disciplined in its growth initiatives, while building and preserving a robust balance sheet and positioning for value-creating opportunities, to complement its existing asset portfolio.
“We believe the addition of the low-cost, long-life Haile Gold Mine provides such an opportunity while underpinning an industry leading business,” he said.
Just seven weeks after OGC completed its $132 M purchase of Newmont's Waihi gold mine and permits in the central North Island, it announced the Romarco deal which, if fully accomplished would see shareholders in the Canadian company holding a 49% interest in OceanaGold.
Aside from OGC's Otago and West Coast mines at respectively Macraes and Reefton, it operates a producing gold and copper mine in the Philippines, has a 14.9% stake, for $18.5 M, in a Nevada gold exploration company, and a separate $12.1 M stake in an El Salvadorean gold and silver exploration company.
OGC said Romarco's Haile open pit was one of the highest grade open pit gold
development projects in the gold sector, with proven-probable reserves of 30.5 Mt at 2.06 grams/tonne of ore. The measured-indicated resource was 71.2 Mt @ 1.77 g/t Au.
Haile was currently funded and in construction, with $US63 M spent as at March, and had “moderate initial total capital cost of $US333 M.” It is estimated to be one of the lowest cost operating gold projects, at $US414/oz for all-in sustaining costs in year-one production, in 2017.
The deal is subject to 66% of Romarco shareholders accepting the deal, in a vote in either late-September or early-October.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.



Romarco has over a billion shares on issue, but has been trending downwards for a while. They must have done a fair bit of capital raising by selling shares, and recently arranged $200mill of financing from various suppliers and agencies to get their Haille mine started. Like Didipio, this is where the big costs start, but even though OGC has paid a premium over the shareprice, Romarco have an 'out' clause if they get a better offer that OGC don't want to match. http://web.tmxmoney.com/article.php?newsid=77108921&qm_symbol=R

Note that in the last few years, they never achieved an MCAP at EOY that was much over $300mill. OGC has been valued at $1Bill once or twice.

Still, an estimated 4Moz of gold at $414 cost per oz, looks like a profit of $2.8bill for the mine operation, at current prices for gold. OGC certainly has expertise in big open-cast operations. Romarco shareholders might not be so impressed with their OGC shares now that they have a step-change in value. It'll be interesting to see what the market does over the next few weeks.

[elZorro]

OGC shares still getting sold down a bit, but would this be a good time to buy in once it stabilises? Those in the industry seem to approve of the way OGC is handling things.


6/8/2015 — Gold
Diggers and Dealers 2015: Prestigious Diggers Award to OceanaGold
By Ross Louthean
One of the major Australian mining industry awards the Digger Award at Diggers & Dealers Forum this year went to OceanaGold Corporation (TSX, ASX & NZX: OGC).
The Melbourne-based gold miner which began life mining at Macraes, then expanded to Didipio in the Philippines has been on the acquisition trail this year.
The Diggers & Dealers Forum judges said OceanaGold has demonstrated excellence in operational management, asset development and delivery of shareholder value.
“The company has a strong pipeline of development and exploration projects which should provide solid and sustainable growth, and it has recently acquired a new project in New Zealand (Waihi) enhancing its corporate profile in that country,” the judges said.
On July 30 OceanaGold announced a proposed merger with TSX-listed Romarco Minerals that will add an open pit gold mine in South Carolina in the United States to its production profile. The addition could see the company produce about 540,000 oz in 2017 at an all in sustaining cost of less than $US600/oz.
“So the next few years will most certainly be interesting to watch.”
OceanaGold’s chief executive Mick Wilkes was one of the presenters in the final session of the conference in Kalgoorlie yesterday.
The Dealer Award this year went to Tony Poli who has been a successful corporate manager for mining and exploration companies.
Judges said Poli benefited from involvement in the resource of choice of the recent boom, iron ore, and had the impact and accessibility of Chinese investment as well as getting the timing right.
Poli delivered shareholders “excellent value” through the takeover of Aquila Resources by Baosteel and Aurizon. The takeover delivered about $A1.34 billion to Aquila shareholders, and the deal was completed in August 2014 when the iron ore price was above $A100/t, a price not seen since that date.
He earlier delivered shareholder value to Eagle Mining Shareholders in 1997 when Joseph Gutnick’s Great Central Mines took over Eagle’s Nimary gold mine at Jundee.
The Emerging Company award went to Hot Chili Ltd (ASX: HCH) which is developing the Productora copper prospect in Chile.
The GJ Stokes Memorial Award this year went to mining executive Mark Cutifani, who years ago ran Australian companies, then joined Inco in Canada and became managing director of AngloGold Ashanti before taking up his current role as CEO of Anglo American Corporation plc in London.
Mick Wilkes was presented with the award at the annual Diggers & Dealers dinner in Kalgoorlie, attended by about 700 people.

[BlackPeter]

OGC shares still getting sold down a bit, but would this be a good time to buy in once it stabilises? Those in the industry seem to approve of the way OGC is handling things.

Good question ... asking that myself. OGC is certainly one of the better gold stocks - and the proposed merger should make them stronger (even if it was short term not flash for the existing holders). I am quite certain that they will do well long term, but whether this is the best time to buy in depends as well on where PoG is moving ... just ask the gold bugs - the spectrum of predictions reaches from $350/oz to $5000/oz. Only thing I know is - it is likely to be in this range ...

discl: not holding (yet);

[Joshuatree]

Int comparison with the BruceJack project on H/C makes Romarco look very expensive!
What is going to help the s/p from here;Romarco is what 2 years away from production.Martha Mine at Waihi is nearing the end ; yes they have lots of potentially exciting prospects to drill but that's all they are. South Island Mines are amongst the most expensive peroz; Didipo is the only real shining light atp.

[GR8DAY]

OGC is always looking at the longterm future prospects (as they shud) but you've gotta wonder if they've bitten off more than they can chew this time in the light of a crashing Gold Price? Happy to sit and watch at the moment but hope it pans out OK for current shareholders.

[Bobcat.]

JPM and GS have been talking down the price of gold lately. The Chinese don't mind, as they look to increase all the more their physical holdings. India's harvest season play usually kicks in mid August to early October, and the PoG has already dropped 16% this year. Even though inflation is still low in most countries, a rebound's overdue IMO...and seasonal factors could well be what does it.

Discl: I bought a small parcel of OGC yesterday, and will continue to buy into this well managed, low cost miner on any substantial sp dips. I don't normally like to average down on stocks but this will be the exception that proves the rule - based on its potential to generate revenue and profit. I'm now in, for a long play.

[catchbag]

JPM and GS have been talking down the price of gold lately. The Chinese don't mind, as they look to increase all the more their physical holdings. India's harvest season play usually kicks in mid August to early October, and the PoG has already dropped 16% this year. Even though inflation is still low in most countries, a rebound's overdue IMO...and seasonal factors could well be what does it.

Discl: I bought a small parcel of OGC yesterday, and will continue to buy into this well managed, low cost miner on any substantial sp dips. I don't normally like to average down on stocks but this will be the exception that proves the rule - based on its potential to generate revenue and profit. I'm now in, for a long play.

I also have bought in some small parcels this week. Hope it pans out. POG?, hmmmm. I follow this closely, read all the media and watch it bounce around. I consider the US economic data is having an impact, and Smkts have been strong, however im also very sure the US are responsible for manipulating markets (incl Gold). I do expect POG to turn around, and Im fairly comfortable OGC in the long run will be a great return, fingers crossed.

[Joshuatree]

Terrible chart , falling knives. Halle project may be voted down esp when compared to Pretivms Brucejack project.

[elZorro]

I also have bought in some small parcels this week. Hope it pans out. POG?, hmmmm. I follow this closely, read all the media and watch it bounce around. I consider the US economic data is having an impact, and Smkts have been strong, however im also very sure the US are responsible for manipulating markets (incl Gold). I do expect POG to turn around, and Im fairly comfortable OGC in the long run will be a great return, fingers crossed.

Found this article on a recent search. http://investmentresearchdynamics.com/gold-manipulation-its-much-bigger-than-you-think/

Normally OGC follows the gold price if nothing else is changing with their operation. But they seem to have overstepped the market this time, making too many plays too quickly perhaps. I would wait until their shareprice starts ticking up again.

I had a graph at one stage on the gold thread that showed how correlated the gold price was with the amount of overseas owned US Treasuries. China has recently been selling some of their treasuries. If they start going the other way, that should help the gold price, unless it's all being manipulated by the USA to save face...

[elZorro]

Another article from NZResources out today, OGC to sell the Romarco deal to shareholders. This will involve charts comparing miners using lots of blue circles of different sizes, going on their previous artwork.


7/8/2015 — Gold
Diggers and Dealers 2015: OceanaGold to sell hard on Romarco deal
By Ross Louthean
There will be a strong selling job by OceanaGold Corporation (TSX, ASX & NZX: OGC) on its cashless takeover plan for TSX-listed Romarco Minerals which executive director Mick Wilkes sees as a major stepping stone in the quest to remain a low cost gold producer.
When the deal was revealed investors in New Zealand and Australia had a cool response, marking OceanaGold’s share price down obviously because the Romarco deal involves increasing the share script by more than 40%.
Wilkes highlighted the acquisition as a key new move at the Diggers & Dealers Forum in Kalgoorlie in which he detailed the strong production performance from the low cost Didipio gold-copper mine in the Philippines and the lower cost performance from the long established New Zealand operations.
The company’s performance in the past year saw OceanaGold awarded the prestigious Diggers Award at the conference – one of the most prestigious mining awards in the Australian industry.
The advances made in recent months included the Romarco Minerals takeover, purchase of the Waihi gold operations from Newmont Mining Corporation – to make OceanaGold NZ’s sole major producer – and a strategic investment in TSX-listed Gold Standard Ventures which holds an emerging major gold find in the Carlin gold trend of Nevada.
Romarco owns the Haile gold prospect in South Carolina which is in an historic gold belt where there had been no mining activity in recent years. Haile has a proven-probable 2.02 million oz at a grade of 2.06 grams/tonne and resources of 4.04 M oz @ 1.77 g/t.
Wilkes said the series of shallow discoveries at Haile sit over deeper finds yet to be put into the inventory including Palomino with 70.1m @ 5.5 g/t, Mustang with 117m @ 5.5 g/t and Horseshoe with 62.5m @ 9.6 g/t. He said studies had shown the deeper sulphide ore was not complex, but may require fine-grinding for good recovery.
Romarco would be offered a board position on OceanaGold and that position could go to the CEO Diane Garrett.
He said Haile was in a region where several other potential targets have been identified.
With the acquisitions the company has now opened an office in Vancouver.
Wilkes said that until recently he didn’t know there was gold in South Carolina, but it was the scene of the first gold discovery in the US when in 1799 a boy discovered a yellow rock in a creek and took it home to his father, who used it as a doorstop for two years before he took it to a jeweller and sold it for $US3.50. Since then there have been 3 million oz in the next 200 years. In recent times there have only been four gold mines.
He said recent production has been transformational with first half output for 2015 of 176.999 oz at a cash cost of $US474/oz and all in costs of $US734/oz.
Wilkes told the conference that the Blackwater gold project was still on the development schedule but it needed some compelling new results or development concept.
While the Globe-Progress mine was to close, all the plant, equipment and buildings would be placed on care and maintenance. In the past five years there had been significant exploration carried out in the Reefton goldfield but it did not show up significant new finds.

[elZorro]

A new OGC presentation was out a few days ago, it's fairly old-fashioned artwork, but maybe that's trendy. No blue globes. Further down, it mentions the WKP areas, and Waihi West JV, as some of the options for new deposit discoveries near Waihi. It also circles the Coromandel Peninsular above Thames.

http://www.oceanagold.com/assets/documents/Presentations/1508-OGC-and-R-Acquisition-Investor-Presentation-Updated-Aug-10-2015.pdf

[Bobcat.]

Sold out today. A 20% rise in just over a week is not to be trifled with. Time to profit take IMO.
I expect what with their disappointing financial results, copper prices still lower than back in June, and uncertainty over recent acquisitions, their sp will drop again before recovering properly.

Also, the price of gold tends to follow the EUR/USD, which has lifted continuously for three days now and IMO is due for a correction later today...once the big boys with a vested interest in propping up the USD get nervous about it sinking, and intervene.

Trading to it.
BC

[elZorro]

Bobcat, looks like you were about right in your predictions. Now, some feel-good PR:


11/9/2015 — Gold, From NZResources
OceanaGold plans to replicate Didipio in Philippines

Diversifying Australian miner OceanaGold Corporation (TSX, ASX & NZX: OGC) reportedly plans to lift its investment in the Philippines in the next 10 years as it looks beyond the Didipio gold-copper mine in Luzon.
The Filipino-linked website BusinessWorld quoted OceanaGold counry director Bradley Norman as telling local journalists that the company would like to replicate the Didipio gold-copper development at least three more times on leases it holds in the Philippines.
Production began at Didipio in April 2013 and it quickly became a low cost operation by world standards, thanks to the healthy copper by-product.
The miner is keen on expanding its operations in the country, setting its sights on existing mine leases and greenfield projects in Surigao del Norte and North Luzon.
“It’s an opportunity simply because we would like to reproduce what we have in Didipio in as many places in the Philippines,” Norman reportedly said.
“We are open to business. The gold prices are where they are and there are a lot of companies that are looking for opportunities and we’re obviously one of those companies,” he said.
The website quoted Norman as saying Didipio was the lowest cost-producer in the world and the company was secured from the impact of the China downturn that was causing significant market and commodity price turmoil.
OceanaGold has unveiled its +$US-million underground training facility that houses Asia’s only underground metalliferous mining simulator.
The company constructed the facility to train underground miners for its Didipio mine as well as for other domestic and international companies.
“The cost to the company is negligible, but the return is phenomenal,” Norman reportedly said.
OceanaGold announced a plan to triple its Philippine investments at a time when the Government was seeking Congressional nod to measures aimed at giving the State a bigger share in mining revenues.
“The Government’s been very supportive of us. We are where we are because we have that support from the Government,” Norman said.
Source: bworldonline.com

[GR8DAY]

.....small lift overnight in GP and TSX SP plus latest release shud help SP here. I see OGC as a strong hold longterm/medium term, buying on any dips.......but also a great stock to trade. One of only a handful of miners worthy of investment in my opinion. Great progressive management always pushing hard to build one of the lowest cost producers on the planet.........with attached environmental concerns. Back above $4 on a rising GP......if/when??

[elZorro]

Simon Hartley with some brief notes about the proposed merger. It has been recommended by two arm's length consultancies..


18/9/2015 — Gold
Comment: Big share increase ahead for OceanaGold
By Simon Hartley
Independent reports have backed OceanaGold Corporation's (TSX, ASX & NZX: OGC) proposal to purchase a South Carolina gold development - a scrip-only acquisition which could almost double the number of OceanaGold's shares on issue.
Target company Toronto-listed Romarco Minerals and OceanaGold put out a joint release yesterday saying Institutional Shareholder Services Inc and Glass Lewis & Co have recommended shareholders of both companies accept the offer.
Romarco has a market capitalisation of $C856 million ($NZ996.9 M).
The deal is entirely based on the issuing of new OceanaGold shares, which would rise from 303.5 M on the market to 603 M, and initially at least has the potential to dilute share value.
OceanaGold chief executive Mick Wilkes has previously forecast the company would be producing more than 540,000 ounces in 2017, when Romarco's Haile mine in South Carolina begins production that year, meaning 75% of its gold would come from combined New Zealand and US mines.
Romarco and Oceana shareholders will vote on the proposal on September 28, at meetings in respectively Toronto and Vancouver.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.




Mergers often don't provide super value for shareholders, and this is a big one, so I would be cautious.

[elZorro]

NZResources with yesterday's news again:


30/9/2015 — Gold
Romarco and OceanaGold shareholders agree to takeover
By Simon Hartley
Shareholders in in New Zealand's now only large gold miner OceanaGold Corporastion (TSX, ASX & NZX: have voted overwhelmingly in favour of buying the South Carolina gold development mine of Romarco Minerals Inc (TSX: R).
The script-only buy-out of Romarco means the number of OceanaGold shares on issue will almost double to 603 million, with the market closely watching for any share dilution in the future.
In what OceanaGold's chief executive Mick Wilkes has described in the past as “the new OceanaGold,” shareholders of the two Toronto-listed companies voted yesterday, separately, in favour of the amalgamation.
The arrangement was approved by 79.67% of votes cast by Romarco shareholders with represented 81.7% of shares capable of being voted while the resolution was approved by 99.77% of votes cast by OceanaGold shareholders, representing 64.19% of shares capable of being voted.
Under the arrangement Romarco shareholders will receive 0.241 of an OceanaGold common share for each Romarco share held.
Romarco had a market capitalisation of $NZ996.9 M, at the time of the offer, plus $C254 M ($NZ300.7 M) cash in hand.
OceanaGold expects that once the Haile gold mine in South Carolina gets into production, the company will be producing more than 540,000 ounces gold in calendar 2017. For calendar 2015, the company expects to produce between 295,000 oz and 335,000 oz.
Wilkes said with support from Oceana's strong balance sheet, plus its development and operating expertise, would bring the Haile Gold mine in Lancaster County, South Carolina through the construction period and into production.
It would further diversify OceanaGold's global production profile and cement it “as a low cost gold producer globally,”
“Through our transaction with Romarco and with the addition of the Haile gold mine, OceanaGold will enhance its already solid foundation of high margin, high quality operating assets,” Wilkes added.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.



The plot of OGC's shareprice on the TSX against the gold price shows a definite swing down over the last few days. Could be that dilution they're talking about.

[GR8DAY]

........so OGC now a likely 540,000 oz per annum gold producer.......and the SP continues to get hammered?? Sure a dilutionary effect from the share swap but also a massive increase in production.....with more to come. ElZoro do you know where this potential jump in production puts OGC on the world Gold production stage.......must be getting up there or still just a minnow producer?? (i realize it's now a leader on the Low Cost status list)

[elZorro]

........so OGC now a likely 540,000 oz per annum gold producer.......and the SP continues to get hammered?? Sure a dilutionary effect from the share swap but also a massive increase in production.....with more to come. ElZoro do you know where this potential jump in production puts OGC on the world Gold production stage.......must be getting up there or still just a minnow producer?? (i realize it's now a leader on the Low Cost status list)

Sorry about the slow reply Gr8day. I'm not sure, but it looks like once a company gets above 1Moz a year, they are fairly near the top 10 gold producer tally.

http://www.mining.com/top-10-gold-companies-in-2014-67501/

However Barrick and Newmont each produce over 10x more gold than New Oceana will. They should still be in the mid-tier group though.

[mistymountain]

All very exciting watching from the sidelines. Seems a long time ago now that the SP was about NZ$0.20. Give the company time to consolidate production; dividends should continue to flow...

[bull....]

this could be an exciting company to watch for future mining activities.

under the tpp agreement companies can now sue govts and as has happened recently in Canada a mining company successfully sued the Canadian govt for not granting a permit because of environment issues.

looks like the greens or environmentalists or anti mining people have lost out big time here as overseas mining interests can now mine nz to the max I believe

[GR8DAY]

......but thank god that's never going to happen in our beautiful and fragile country.....we're all way too smart for that sort of nonsense......and the politicians know it, whats more.





this could be an exciting company to watch for future mining activities.

Under the tpp agreement companies can now sue govts and as has happened recently in canada a mining company successfully sued the canadian govt for not granting a permit because of environment issues.

Looks like the greens or environmentalists or anti mining people have lost out big time here as overseas mining interests can now mine nz to the max i believe

[GR8DAY]

OceanaGold Receives Regulatory Approval For Acquisition Of Waihi Operation

Thursday October 15, 2015 14:58
OceanaGold Corp. (TSX, ASX, NZX: OGC) reports that the company has received approval from New Zealand's Overseas Investment Office for the acquisition of the Waihi operation from Newmont Mining Corp. (NYSE: NEM). The financial closing of the transaction is now anticipated to take place on Oct. 30, OceanaGold says. "The Waihi operation represents a strong strategic fit with our existing business and we are excited to welcome this high-quality asset and its talented team into OceanaGold,” says Mick Wilkes, OceanaGold's managing director and chief executive officer. “We are looking forward to working with employees, contractors and local stakeholders to add further value to this unique operation by extending mine life and seeking out operational efficiencies."

By Allen Sykora of Kitco News; asykora@kitco.com

[Joshuatree]

Just scrolling thru the technical report 123 pages
0.31 million oz reserve left @ 6.3g/t Au. 1,173,000 oz Ag mine life 2-3 years .Inferred 0.152 Moz Au and 0.329 mill oz Ag
Original mine began in 1879 with 2 million tonnes of Ore mined for 1,217 tonnes of Gold-Silver bullion!! =35,496,239 - 39,126,550 oz by 1952.Post 1988 25,041,424 tonnes mined for5,966,000 oz from Martha ,Favona and Union
Lotsof int geology
And Mining processes
Mining capacity to treat 1.25v mill tonnes of martha ore or 800,000 tonnes of Colenso ore annually. Colenso underground access and infrastructure completed. Martha is the nearly exhausted pit ,soon to be alake.
A 2.5 % royalty goes to Coeur d'Alene Mines of Idaho and Viking mining NZ(well done:)
Waihi mine been in full production since 1988
Environmental data collected for last 25 years, stakeholder engagement structures with residents, iwi etc

Pit ops (Martha)suspended pending wall collapse
Correnso total life of mine op costa set to be NZ$260 million, post tax free cash flow US$74 million based on US$ 1200 oz
Int compensation details re blasting under landowners property
Water rights and easements are good

Exploration permits
Tenement Status 30 June 2015




Permit Licensee Location Legislation Permit Type Granted Term (Yrs) Expires Area (ha)





322388



Waihi Gold Company Ltd



Martha



Mining Act 1971



Mining



16-07-87



30



15-07-17



394.3





41808



Waihi Gold Company Ltd



Favona



Crown Minerals Act 1991



Mining



22-03-04



25



21-03-29



1094





51041



Waihi Gold Company Ltd



White Bluffs



Crown Minerals Act 1991



Exploration



15-10-08



10



14-10-18



450.97





51630



Waihi Gold Company Ltd



Ohui



Crown Minerals Act 1991



Exploration



22-06-09



10



21-06-19



1490.26





51771



Waihi Gold Company Ltd



Waihi North



Crown Minerals Act 1991



Exploration



28-04-10



10



27-04-20



980.59





52804



Waihi Gold Company Ltd



Twin Hills



Crown Minerals Act 1991



Exploration



17-12-10



5



16-12-15



5704





40598



Waihi Gold Company Ltd/Glass Earth Ltd



Hauraki



Crown Minerals Act 1991



Exploration



22-05-03



14



21-05-17



4751.51





40813



Waihi Gold Company Ltd/Glass Earth Ltd



Glamorgan



Crown Minerals Act 1991



Exploration



07-09-06



10



06-09-16



3550.155





53325



Waihi Gold Company Ltd



Dome Field



Crown Minerals Act 1991



Prospecting



27-01-12



4



26-01-16









Exploration
Approx 414,000m have been drilled in 2864 core and explore holes since 1980

Current drill programmes for 35km of diamond drilling for year 2015 .It is infill drill on known veins 50% , step out on known veins , 30% and adjacent to known areas ,20%. POTENTIAL FOR DISCOVERY OF SIGNIFICANT NEW MINERALIZED VEIN DEPOSITS.

Exploration drilling on some areas are a 60:40 JV with Glass earth whose int have been bought out by Ocenia. Sig Drill hit in early 2015 of 10.2 metres @ 5.6 g/t AU on new vein Quattro , 300 metres from existing ops

[Joshuatree]

Theres a lot more to read in the Tech report but i bailed on posting stuff.
More int to me are the Exploration and Drill results for NZ.
OGC Announces NZ Exploration and Drill Results (https://www.nzx.com/companies/OGC/announcements/274015)

Maiden resource for coronation nth
good intercepts at Correnso and daybreak demonstrate potential extensions at Waihi

Significant intercepts at Quattro

An extensive exploration program for 2016 to significantly increase the resource base

Macraes is the gift that keeps on giving with extensions, AISC pretty high though historically.
Maiden resource for coronation north.

[Yoda]

Thanks JT
INTERESTING STUFF
SP has been up and down a bit again and gold at a continued fall....thanks for your hard work

[Joshuatree]

No prob, . OGC finished higher on the ASX $2.89 (NZX OGC $2.86!!!).
Big vol through on ASX and TSX( i read) re 11% of all OGC shares traded.

18 mill on TSX and 23 mill through on ASX.
Owes me re $3 this time round.

[Yoda]

No prob, . OGC finished higher on the ASX $2.89 (NZX OGC $2.86!!!).
Big vol through on ASX and TSX( i read) re 11% of all OGC shares traded.

18 mill on TSX and 23 mill through on ASX.
Owes me re $3 this time round.
Thats a lot of shares.
Monday should be interesting....

[Joshuatree]

I forget;a friend has filled me in.

GDX and GDXJ rebalancing.OGC is now a much larger company after its deal buying Romarco in the share scipp(look back a few posts) only purchase, re doubling share son issue to re 603 million.

Mkt likes it too.$2.43 on the 11th to $2.89 now with high of $3 Nice.Just need Gold to start moving up says he wistfully

[Joshuatree]

Yay, back in Black at last ; a strong break up. Despotic North korean leader good for gold..

[Joshuatree]

Finally my Goldies are performing ; hedging ,reducing risk over my portfolio, some consolation.

[angrytoenail]

Too good to last for long.

[Fisherking]

I don't currently hold this stock, but im interested to hear from those that do, or follow it closely, was the recent SP increase caused by A. The recent worldwide equity weakness and the potential therefore for stocks to tumble and gold to potentially gain B. Just another of the many rollercoaster rides we see with OGC that surely make it one of the best trading stocks in the NZX or C. Something else?

[elZorro]

I don't currently hold this stock, but im interested to hear from those that do, or follow it closely, was the recent SP increase caused by A. The recent worldwide equity weakness and the potential therefore for stocks to tumble and gold to potentially gain B. Just another of the many rollercoaster rides we see with OGC that surely make it one of the best trading stocks in the NZX or C. Something else?

I don't hold OGC currently either, but it certainly is one to watch. It can be a manipulated share, but over the short term it follows the US$ gold price.That's what it has done for the last couple of months. During the 2008 GFC, OGC plumbed new lows, but in 2009 onwards it recovered 800% from there, and more recently has strengthened steadily against the gold price, as the company completed the Didipio startup, and more recently took over Newmont's assets in Waihi.

Newmont had a global strategy of retrenching over the last 2-3 years, and had decimated their exploration team at Waihi, just when Glass Earth needed a shot in the arm with the joint Waihi West permit exploration. The Quattro vein might be significant shorter term for OGC, but also there is other gold near the Martha pit they are looking at, plus the largely undrilled vast WKP area, safely up in the remote hills, but close to their main processing plant.

Historically, goldmines in the Waihi area weren't bothered with, unless they held grades of 1oz to 2oz a ton in big seams. Those are bonanza grades now, and mines can be profitable and tidy environmentally, with much lower grades.

[elZorro]

Wow. OGC went up 9.3% today, following the US gold price rise and OGC on the TSX overnight. Looking at the trends of OGC vs U.S. gold, they aren't as strong as usual, over the last few months. OGC has generally held its value, and now any bit of gold price rise is bumping it up.

[Joshuatree]

Gold @ US$1168.20 oz now ,up 10.08% ytd .OGC A$3.43 up 28%. ytd. It does look to my uncharting eye like Gold has some legs on it(says he hopefully). Holding OGC,MML,BDR

[BlackCross]

Should get a big kick again today. Randgold resources up another 10% today in the UK (In fact it's up 50% since late December).

[elZorro]

Should get a big kick again today. Randgold resources up another 10% today in the UK (In fact it's up 50% since late December).

Yep, OGC is at about CAD$3.70 now, following gold with interest. $35 in US$ for gold over a few hours is getting back into the days that pushed gold to $1800 odd. OGC should go over $4.00 in NZ today.

[Joshuatree]

US$1197 oz at the mo. Trump is good for Gold lol.

[Aaron]

Gold @ US$1168.20 oz now ,up 10.08% ytd .OGC A$3.43 up 28%. ytd. It does look to my uncharting eye like Gold has some legs on it(says he hopefully). Holding OGC,MML,BDR
Dear Joshuatree
How do you assess gold miners? I shouldn't admit it, but Oct last year I bought OGC based on a recommendation from "someone I read somewhere" I also bought NCM (Newcrest) as I understand it is one of the larger gold miners. This is pure speculation on my part as I have no idea about gold mining or these companies and haven't made any effort to find out. For this reason I kept my investments to 10K per company. OGC obviously I got lucky, for now. NCM just back to breakeven. I was also wondering about MML as the market doesn't share your view on this company as yet. Is it a high cost company or still exploring rather than actual mining. I won’t pretend to understand gold miners or the price of gold but as a result of confirmation bias I read a lot of doomsayers and think that the current monetary system will get crazy enough for gold to be considered a safe haven again at some stage so bought some miners. Sadly I am only really just trying to get lucky without putting in any effort. Your thoughts on MML would be appreciated.
Also Morningstar were keen on KCN (Kingsgate Consolidated) a while back but ceased coverage as they lowered their long term gold price and this company also has not really joined in the recent strong gains by gold miners. Any thoughts on KCN?

[Yeshiva]

well done to holders, this company seems like a good hedge given the current market uncertainty.

[Joshuatree]

Dear Joshuatree
How do you assess gold miners? I shouldn't admit it, but Oct last year I bought OGC based on a recommendation from "someone I read somewhere" I also bought NCM (Newcrest) as I understand it is one of the larger gold miners. This is pure speculation on my part as I have no idea about gold mining or these companies and haven't made any effort to find out. For this reason I kept my investments to 10K per company. OGC obviously I got lucky, for now. NCM just back to breakeven. I was also wondering about MML as the market doesn't share your view on this company as yet. Is it a high cost company or still exploring rather than actual mining. I won’t pretend to understand gold miners or the price of gold but as a result of confirmation bias I read a lot of doomsayers and think that the current monetary system will get crazy enough for gold to be considered a safe haven again at some stage so bought some miners. Sadly I am only really just trying to get lucky without putting in any effort. Your thoughts on MML would be appreciated.
Also Morningstar were keen on KCN (Kingsgate Consolidated) a while back but ceased coverage as they lowered their long term gold price and this company also has not really joined in the recent strong gains by gold miners. Any thoughts on KCN?

Im similar Aaron ; its who i know not what.How long this uptrend is going to go for i have no idea but its great when it all comes together; my Im/patience is rewarded lol. Goldminers are HUGELY risky so many more things that can go wrong!. Good to have a little exposure for when the mkts are correcting tho; a bit of hedging.Great idea keeping a cap on your amounts. NCM is the largest in Aus and one of the biggest global;a very sensible choice ,less returns but less risk imo.

MML is a slightly longer term story atm as its been spending a lot of money digging its access shaft deeper for rewards later but I'm sure it will keep rising in this current Gold trend as it is a very low cost producer and a rising tide lifts all boats.
PM me if you want abit more info.

[mistymountain]

OGC has weathered the GFC ($0.20 SP seems like a long time ago now...) and deteriorating Gold Prices. BUT through all this maintained an off shore growth expansion. Investment at Didipio is now paying dividends (literally...).

Patient investors may see new gold producing assets and a rising gold price provide dividend income and increasing capital value.

Exciting times for those who have been patient... Cheers!

[elZorro]

OGC has weathered the GFC ($0.20 SP seems like a long time ago now...) and deteriorating Gold Prices. BUT through all this maintained an off shore growth expansion. Investment at Didipio is now paying dividends (literally...).

Patient investors may see new gold producing assets and a rising gold price provide dividend income and increasing capital value.

Exciting times for those who have been patient... Cheers!

Gidday there MistyMountain, still keen on OGC I see!

You'll be inpressed with the gold price in the last few hours, it has well and truly broken US$1200 when the HK exchange started up. I see on the web, comments about Chinese money flowing into safe haven gold, as their sharemarket tanks (along with everyone else it would seem). It had to turn sooner or later.

Anyway, OGC on the TSX should be interesting overnight. Perhaps I should buy some at this point.

[Joshuatree]

2010


Here's a story on Palmerston, the nearest township to the Macraes mine.

http://www.odt.co.nz/the-regions/north-otago/104744/palmerston-community-thriving-mine?page=0%2C0

A story out today, also from the ODT:

http://www.odt.co.nz/news/business/105973/oceana-shares-surge-18

As the POG has stabilised overnight just above 1230 at this stage, OGC on the TSX has still not reached the equivalent of the ASX close, NZ$3.89. But it is up 2%, heavy trading of over 1.2mill shares.

It looks like the market will take some time to revalue OGC in line with their peers. Plenty of upwards movement to go, IMHO.

Yesterday, there was a market release (OGC: ASX) about Baker Steel Capital Managers.

http://www.asx.com.au/asxpdf/20100513/pdf/31q9r59zpk87lt.pdf

As a group, they now own 9.2% of OGC (was 10.87%). They have purchased more shares in the same time period, but because of dilution are now below the 10% threshold. Interesting group:

http://www.bakersteelcap.com/

You have to have 100K to go here: and Genus Dynamic Gold Fund at least is LONG ONLY (3.9mill OGC shares). I couldn't navigate to the parts mentioning who they invest with, or to look at some other funds.

Well here we are agin re 5 ,6 years later guys ,S/P and price of Gold similar!!?. Been any share splits since 2010 or is that just the nature of Goldies; follow the trend to the bend at the end and then bail quick smart.

[elZorro]

2010

Well here we are agin re 5 ,6 years later guys ,S/P and price of Gold similar!!?. Been any share splits since 2010 or is that just the nature of Goldies; follow the trend to the bend at the end and then bail quick smart.

Yes, curious all right. However OGC back then only sometimes reached an MCAP of $1bill, it's over $2bill now. I learnt a bit too late to watch Baker Steel, they jumped into OGC and later jumped out as it began to drop away. So do keep an eye on them if they get extra keen on OGC again.

Phaedrus did some great TA charts for the FA guys on OGC. He always thought we were mad, dropping in and out of the share as it tracked upwards from early 2009, gaining 1000% in a year I think it was, doubling again the next year. I managed to make hardly anything on that, when all I had to do was hold (or, even easier, buy gold). But don't forget, OGC dropped like a stone in the GFC (2008), nothing was safe. It recovered very well from January 2009, and they have built a more resilient business model since.

Comparison of MCaps in 2010, attached.

[GR8DAY]

.......starting to look to me like THE PERFECT STORM for OGC.......their big spend on expansion couldnt have been timed better. "IF" and that's a big "IF" the GP holds at these levels (or better still continues Nth).......then OGC is going to be in an extraordinary position to capitalize. Remember they will soon be in the 500,000oz pa club..........do your sums. Where could the SP end?.........well that's the $8? question but I would suggest think of the current price and double it.........depending on that big "IF". Up 10% on the TSX overnight. Even with the GP put to one side Im still of the belief this is one of the best run co.s on the NZX (not to mention ASX and TSX)....DYOR......not for the faint hearted.

[elZorro]

Couldn't agree more, Gr8day. I'm particularly impressed that they took over the Waihi area permits when Newmont lost interest. NZResources has an article today.


12/2/2016 — Gold
Gold lift buoys OceanaGold’s share price
By Simon Hartley
Sh
ares in OceanaGold Corporation (TSX, ASX & NZX: OGC) have gained 50% in value in the past three weeks, reflecting increased investment in global spot gold. OceanaGold's high during the past year was $3.68 in June, but since January 21, its shares had risen from $2.73 to plateau in recent days around $4.10. This week the company also raised its stake in a Nevada gold exploration company Gold Standard Ventures Inc (TSX-V: GSV) to near takeover level, attaining 19.9% after having paid $C12.5 million ($NZ13.6 M) for a further 4.7% of its stock.

While the global equities markets have been highly volatile lately, global spot gold prices had risen 9.3% during the past three months, including 6.8% during the past month to trade up 0.4% at $US1194/ounce ($NZ1,800) yesterday, with some analysts now expecting it to broach the $US1,200/oz mark. Craigs Investment Partners broker Peter McIntyre said Tuesday's ASX trading saw its ASX200 index “struggle,” ending down 2.88%, which mirrored its global peers. Ten sectors within the index fell, with the financial sector hardest hit, followed closely by energy companies. “The fall equated to $A40 billion ($NZ42.6 B) in value, with the index closing at a 2.5 year low,” he said.

Investors were returning to gold as its historical function as a hedge against inflation, “or to park up cash.”
He was cautious about gold's medium to long term prospects, but he expected it would broach the $US1,200/oz level in the months ahead.
Of the gold producing companies' rising share prices “All things being equal, their share price will outperform, when the gold price is on the way up.”

Forsyth Barr broker Suzanne Kinnaird said the investor-sparked global equity sell-off continued this week, albeit slowing on Tuesday trading, with major banks leading the declines amid uncertainty over global economic recovery. She said European stocks had fallen for a seventh day, with an index of banks sliding to its lowest levels since 2012, while the UK's FTSE approached three year lows.

In a private placement in May last year, OceanaGold acquired an initial stake 14.9% stake in Gold Standard Ventures at a cost of $C0.65 per share, then later in the year, increased its position to 15.2% through an open market share purchase. This week's tranche of shares cost OceanaGold $C1 each and it now holds 38,075,926 Gold Standard shares, or 19.9% of the company, just shy of the point which could trigger a takeover. Gold Standard has gold discoveries on the Carlin Trend of Nevada, NZResources.com reported.

The Carlin Trend has been one of the most prolific areas in the US for modern gold mines and is noted for its massive low-grade gold discoveries. Gold Standard's website said since the mid-1960s more than 40 separate gold deposits have been delineated along the Carlin Trend, where past production, reserves and resources exceed 100 M oz of gold. Last year Oceana also completed a $996 million scrip-only takeover of Romarco Minerals which held the advancing Haile gold project in South Carolina, now being constructed as a major mining project.

*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.

[GR8DAY]

.........agree ElZ, amazing foresight, commitment and about to be rewarded I believe.