OceanaGold: good news from the mine

[elZorro]

Sounds like we're all slow learners with OGC. The ones who are posting anyway..
I just had a look on DirectBroking's NZX50 page. It's there all right, as NewOceana. Not sure why it has been called that. Note the big rebalancing trades showing this morning, as funds purchased some OGC. Some got a lot better deal than others.

[elZorro]

Here's a new presentation from the OGC website, some new pages there with a plan for 600,000oz/yr by 2016. First mention I've seen of a superpit at Macraes, more throughput needed. This would have to mean an expansion or backup for the autoclave system.

http://www.oceanagold.com/assets/documents/Presentations/2011-OGC-presentation-DGF-110920-FINAL.pdf

[adamcz]

Wow gold getting hammered down $97 at the moment would have thought gold would have continued in its uptrend as a safe haven with all the bad news coming out. Looks like OGC will be headed for $2.70 ish on Monday (based on the tmx price). For once i managed to sell at the right time, although i was lucky i was just expecting a smaller pull back after the buying for the NZX50 inclusion.

Found this interesting blog the other day Haven't got around to having a look over the financials to see some of the things he brings up. Found it a pretty interesting read
http://reminiscensesofastockblogger.wordpress.com/2011/08/31/oceanagold/

[elZorro]

Wow gold getting hammered down $97 at the moment would have thought gold would have continued in its uptrend as a safe haven with all the bad news coming out. Looks like OGC will be headed for $2.70 ish on Monday (based on the tmx price). For once i managed to sell at the right time, although i was lucky i was just expecting a smaller pull back after the buying for the NZX50 inclusion.

Found this interesting blog the other day Haven't got around to having a look over the financials to see some of the things he brings up. Found it a pretty interesting read
http://reminiscensesofastockblogger.wordpress.com/2011/08/31/oceanagold/

That's a top post adamcz, that investor had a very detailed look at the OGC operation and concluded it was cheap. Some really useful figures, lines up with the quarterly reports. I hadn't noticed that some overburden removal at Macraes revealed unprofitable ore, so they had to use another section, and expense the cost immediately on the books. The access to BMO reports is also good. The first chart I couldn't make sense of, the line through the middle being fair value? OGC is out to the cheap end of all goldminer comparison charts.

The poor sod, though, after all this research the current price is probably below what was paid for the stake. Bottom-feeders should once again see a multi-bagger run from OGC.

[elZorro]

More on expansion at Macraes, looks like a go-ahead for a Superpit has been achieved.

http://tvnz.co.nz/business-news/gold-miner-promises-600-new-otago-jobs-4418624

Hopefully we'll see more detail soon.

NZResources:


More jobs in East Otago with Macraes expansion26 September 2011
The expansion of operations planned by OceanaGold Corporation (ASX, NZX & TSX: OGC) was expected to create an extra 600 jobs in the East Otago region.
OceanaGold and the Department of Conservation have reached an agreement for expansion of the Macraes operation, guaranteeing a life of another 10 years.
NZResources reported this month that the gold miner was seeking consents that would allow for strip-out of the massive Frasers open cut and for mine expansion to the east of the mine, where the Frasers Underground mine was advancing into panel extensions and some higher grade zones.
The company’s chief operating officer Mark Cadzow told Radio New Zealand that the mine, which injects hundreds of millions of dollars into the economy, would create almost 600 new jobs with the expansion work.
He said the expansion should begin as soon as the resource consents are accepted by the Otago Regional Council and Waitaki District Council.
Work on the expansion was expected to begin before the end of the year.
Sources: NZResources.com and radionz.co.nz.

[adamcz]

Hasn't quite got the go ahead (although I'm sure that article seemed to imply it was all go).

http://www.odt.co.nz/news/dunedin/179965/miner-keen-not-have-pay-twice

Looks like should have (fingers crossed) a bit of news around the end of October with the super pit and Q3 results.

[gonzo56]

"Overall, there is a large upside in financial returns from a relatively modest capital outlay and we don’t believe there is any value currently recognised in our share price for Didipio."

Here is today’s announcement if people are interested: https://nzx.com/files/attachments/147400.pdf

[elZorro]

"Overall, there is a large upside in financial returns from a relatively modest capital outlay and we don’t believe there is any value currently recognised in our share price for Didipio."

Here is today’s announcement if people are interested: https://nzx.com/files/attachments/147400.pdf

Hi Gonzo, some good questions being asked (very politely though), and the replies are all good. Some workers were being poached, guess OGC needed to pay more. There is no mention of the fact that as soon as Didipio is paid off, the Philippines govt will get a substantial portion of the net profit there, as taxes and levies. Should still be plenty left over.
No immediate pot of gold by the look of it, but good solid results in the future. Re acquisitions Mick, why not GEL?

[gonzo56]

Yeah, the companyinsight.net.au interview is quite a good outlet. Exciting times for the company. I like the prospect of re-opening the Blackwater mine.

[elZorro]

So, OGC is happy with just a 20% share of Sam's Creek perhaps, along with a consideration of $1-2 million of shares in MOD. http://www.asx.com.au/asxpdf/20111013/pdf/421qch0s25z2g4.pdf

Interesting that the Chairman of MOD (Miles Kennedy, Aussie) also founded Macraes Mining 23 years ago. I guess OGC has learnt that stretching out the finances too much just leads to chaos. No matter what the prospects longer term might be. This will be interesting to follow. Might have a look at the MOD shares, but I suspect the big money has already been made...

Here's the start of it all, back in December 2010, a 300-400% SP increase per day while the setup was being done, a backdoor listing with cash-carrying MedicalCorp, now a resource developer. Miles Kennedy also ran Sandfire Resources. He's here with one of the Packers as an investor, etc. I guess we need to follow the money.


http://au.news.yahoo.com/thewest/business/a/-/wa/8551197/mod-flies-on-backdoor-listing-of-kennedy-vehicle/

Our very own Lizard spotted this one way back, all kudos to Liz.
http://www.sharetrader.co.nz/showthread.php?7174-Backdoor-listings-The-new-IPOs&p=330778&viewfull=1#post330778

I did buy some MOD yesterday, has some room to move.

http://www.sharechat.co.nz/article/8b10abf4/oceanagold-and-mod-resources-partner-up-for-sams-creek-gold.html

[elZorro]

More background from NZResources.com:


Miles Kennedy returns to NZ to explore Sams CreekSimon Hartley — 14 October 2011
http://www.sharetrader.co.nz/articleimages/2589/_thumbs/MilesKennedy.jpg (http://www.sharetrader.co.nz/articleimages/2589/MilesKennedy.jpg)
Miles Kennedy.

The slumbering Sams Creek gold project near Takaka in the Tasman district at the top of the North island, held by OceanaGold Corporation (ASX, NZX & TSX: OGC), is being sparked back to life through a joint venture with Australian company MOD Resources Ltd (ASX: MOD).
MOD's Perth-based chairman Miles Kennedy was founder of Macraes Mining Co in the late-1980s, which launched the Round Hill gold mine at Macraes and during his time there also secured the Reefton goldfield leases from Rio Tinto Ltd which also included Sams Creek to the north.
The operations went through two corporate changes after Kennedy left in 1993 and operated as GRD Macraes before becoming OceanaGold.
Sams Creek, in a remote and mountainous region near Takaka, has been held by OceanaGold since 1991 and barely rates a mention in recent annual financial reports, other than as a inferred resource estimated at 770,000 ounces; a figure reported since about September 2004 following test drilling.
At present Oceana own 100% of the Sams tenement, but a subsidiary of MOD will fund all exploration costs to earn up to 80% project-interest, and additionally give Oceana either 10 million or 17 million shares, valued at respectively $A1.6 M or $A2.72 M; depending on exploration outcomes.
Kennedy said a $A1.9 M drilling programme was scheduled to begin next month, incorporated with an aeromagnetic survey and a high resolution topographic survey.
"There is obvious scope for an increase in the [estimated] resource, both within the main zone prospect, where the existing 77,000 oz resource has been defined, and the various other targets along 6 kilometres of strike," Kennedy said yesterday.
In early-2003, when Oceana's predecessor GRD Macraes, was exploring the area it sent a red flag to environmentalists concerned the tenement was so close to the Takaka River in steep hill country covered by beech and kamahi forests, and bordered by the Kahurangi National Park.
Miles Kennedy has noted skills at negotiating with Government and environmental organisations, having reached an accord with the Department of Conservation when exploration began at Reefton.
A South African by birth he came to Australia as a practicing corporate lawyer and joined Robert Champion de Crespigny who went on to develop the Normandy Mining empire – that included the Martha mine at Waihi in NZ – that was later sold to Newmont Mining.
Miles Kennedy's father was the judge in South Africa's apartheid period given the task of sending Nelson Mandella to the gallows, but refused the Government directive – a point noted in Nelson Mandella's autobiography.
He joined MOD after the company undertook a major capital raising with some high profile media and business identities and transformed from the industrial sector to resources. It's first major acquisition was a copper project in the Kalahari sector of Botswana.
OceanaGold went on to develop its Reefton open pit West Coast operation and Frasers underground at Macraes and is at present committed to getting its Didipio gold-copper mine in the northern Philippines operational by the end of next year.
OceanaGold's chief executive, Mick Wilkes, said the partnership with MOD meant Oceana could maintain its exploration focus on its two most significant gold sites; Macraes in Otago and Reefton.
Sams Creek was a discovery made by Rio Tinto subsidiary CRA Exploration and was actively explored during the GRD Macraes phase when run by Len Jubber, but put to sleep when Steve Orr came with the creation of OceanaGold, and his focus was to get Globe-Progress developed at Reefton and underground mining started at Macraes.
NZResources.com's Mineral Resources data base shows that Sams Creek has an inferred resource of 13.3 million tonnes grading 1.89 grams/tonne which makes up the contained 770,000 oz of gold.
*Simon Hartley is senior business reporter for the Otago Daily Times.

[elZorro]

A new mention of a Macraes superpit being mooted, a widening of the pit confines and digging deeper, along with new process plant. Probably this would include an additional autoclave system, good backup for production. This looks more like it, there won't be any easier gold within a few years for OGC, apart from existing operations and Didipio (barring a takeover of course).

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10760062

A new digger, a bit smaller than the last one, has just been commissioned at Macraes.


Quentin has a big toy at Macraes19 October 2011
Machine operator Quentin Macleod jokes that he never got to play with a 250 tonne excavator in the sandpit at school.
MacLeod, a field service technician at OceanaGold Corporation, was referring to the latest addition to the company's fleet at the Macraes gold project.
The Hitachi EX2500-6 hydraulic excavator began work yesterday and while its size looked impressive, those working at the mine were used to big machines.
“It's just an excavator. If I looked at a two-tonne excavator, I'd think I haven't got a spanner to fit that, it's too small,” he said.
While smaller than its big brother, the 359-tonne EX3600-6 excavator, which is also working on the site, the EX2500-6 was still an impressive machine, with an equally impressive price tag -- about $6.8 million.
Powered by a 1,400 horsepower Cummins diesel engine, it held 5,000 litres of diesel, 378 litres of engine oil and 1100 litres of hydraulic oil and consumed between about 4,000 and 4,500 litres of fuel a day.
It also held about 300 kg of grease and fortunately an auto lubrication system eliminated the need for hand-grease guns.
Arriving in 11 transporter loads, it took CablePrice and OceanaGold staff about two and-a-half weeks to assemble on site. It did come with quite an in-depth assembly manual, they said.
It was packed with features, including a comfortable, pressurised cab for the operator with cameras that showed all corners of the machine, while folding stairs provided easy access to the machine.
A 15 cu m bucket was shaped specifically to enhance scooping and loading operations.
Source: odt.co.nz.

[elZorro]

The Macraes mining vision takes in a superpitSimon Hartley — 19 October 2011
http://www.sharetrader.co.nz/articleimages/2600/_thumbs/Fraserspitfromviewing1.jpg (http://www.sharetrader.co.nz/articleimages/2600/Fraserspitfromviewing1.jpg)
Frasers Mine.

New Zealand's premier gold miner OceanaGold Corporation (ASX, NZX & TSX: OGC) has floated a long term concept plan for a "superpit" open cut mining proposal at Macraes which could potentially increase the opens pits' estimated gold reserves by almost 70% to more than 2.6 million ounces.
OceanaGold yesterday stressed the superpit concept was long term, still being evaluated and a feasibility study was yet to begin, with many details of the size, scope and operational capacity of a superpit yet to be quantified.
OceanaGold was awaiting the outcome of a separate raft of resource consent applications from regional councils of Otago and Waitaki to continue its ongoing mining operations – in its 21st year of production.
In a presentation by chief executive Mick Wilkes at the Denver Gold Forum last month, he outlined the "Macraes Superpit Concept" where a larger open pit and new process plant could add an additional 100,000 oz of gold a year to production, plus separate tungsten by-product.
This calendar year Oceana has forecast South Island gold production in a range of 255,000 to 270,000 oz, but in tandem with a yet to be commissioned gold-copper mine in the Philippines, is targeting annual gold production to increase to 600,000 oz by 2016.
Wilkes said the superpit concept would mean an expanded open pit, a new process plant and higher mining rate and ore throughput to gain the 100,000 oz of gold per year.
There could be a possible increase of the estimated gold reserve in Macraes' open pits' from the present 1.53 M oz to 2.6 M oz -- a 69.9% increase.
The recent consent applications included a description of the "Macraes phase III project"; part of a long term plan to extend the mine's life from 2018 "to 2020 and beyond" by expanding present operations and reopening previously mined areas, OceanaGold said in its opening submissions to the resource consent applications.
"Today's high gold price means that previously mined open pits can now be mined deeper. Ongoing exploration may also further define new areas of economic interest," the company said.
OceanaGold's head of business development, Darren Klinck, was contacted yesterday and said the superpit presentation was a "concept" being evaluated in ongoing studies continuing into next year.
"Evaluating this potential opportunity is consistent with our strategy of ensuring we are looking at all opportunities within the organisation to unlock value within our current asset base," Klinck said.
Klinck said as a producer for 20 years in the Macraes goldfield, OceanaGold can allocate time and resources to ensure the company was thinking "outside the box," which is what it was doing with this project.
Oceana Gold's land-use consent requires mining at Macraes to end by August next year. It has sought a range of resource consents to allow it to keep mining, with release of a decision expected within weeks.
OceanaGold proposes to extend some operations, including expansion of the Fraser's underground mine, Frasers open pit and reopen areas previously mined, including the original open cut mine at Round Hill, opened in 1990.
Work would include establishing a new tailings storage facility, expanding some pits, reclamation and relocation of tailings from within a tailings storage facility, new waste rock stacks and extensions to existing stacks.
If a superpit were to go ahead, it was likely Oceana would have to enter a separate round of new resource consent applications.
*Simon Hartley is senior business reporter for the Otago Daily Times.


I guess the main Macraes permit has a deadline of next year. So lots of talking and submissions to NZPAM will be required.

[Vtrader]

Z,
What do the fundamentals say about OGC?
Sounds like OGC spending today for future returns...
RMA consent process, look what it has done for BTU, PRC and others...
OGC Chart is nearly back to the $2AUD
Perhaps time for a patriotic flutter?
Hang on... Higher lows and Lower highs is not an uptrend.
http://i949.photobucket.com/albums/ad333/VtraderNZ/OGC_21OCT.jpg
V.

[elZorro]

Hi Vtrader, I was surprised how abruptly sentiment changed for OGC last week, but a lot of goldies on the TSX went down with the metals prices looking to have peaked a while ago. I'm not worried about the RMA process for OGC, as they have a 20 year history at Macraes, and the region depends on them quite a bit. They appear to have been good stewards of the environment up to now. At which point the biggest bargain will be picked up is the question, but medium-term OceanaGold should do well. I've been a bit sidetracked with Glass Earth lately, waiting for good assay news there to boost the shareprice once again. Either of these companies would be a juicy takeover option for a big player, if gold holds its value over the next year or so.

[gonzo56]

A nice update today with 3rd Q results.

"...revenue for the quarter of $103.5 million from a record average gold price received of $1,706 per ounce. This represents a 9% increase on the previous quarter and a 24% improvement on the same period last year. Revenue for the nine months Year-to-date (YTD) 2011 reached $289.0 million exceeding the 2010 performance of $211.9 million by 36% driven by higher gold prices."

OGC on to it regarding the Typhoon in September; providing food relief to 1200 people affected. What they are doing for the community there is excellent; even sorting out education for their future employees in the Philippines.

[elZorro]

Hi Gonzo, yes, better results, still a reducing grade showing up at Macraes but the new expansions that are planned should improve that. Good to see links in Didipio being worked on.


September a stronger quarter for OceanaGold

Ross Louthean — 28 October 2011
The eyebrows that were arched over mine operating costs for OceanaGold Corporation (ASX, NZX & TSX: OGC) for the June quarter would have receded with yesterday’s announced performance for the September quarter.
The brighter figure came not from an easing in the cash operating costs but in the continuing improvement of the gold price to increase the profit margin.
The company reported an EBITDA (earnings before interest, taxes, depreciation and amortisation) of $US43.3 million ($NZ53.24 M), a 31% increase on the previous quarter.
The Company reported revenue for the quarter was $US103.5 M from a record average gold price received of $US1,706/ounce ($NZ2,097/oz). This represents a 9% increase on the previous quarter and a 24% improvement on the same period last year.
Revenue for the nine months of 2011 reached $US289 M, exceeding the 2010 performance of $US211.9 M by 36% driven by higher gold prices.
The Company’s cash operating margin was also a beneficiary of the higher gold price received during the quarter, reaching $US750/oz sold, a 20% increase on the previous quarter.
Gold sales for the quarter were 60,646 oz with cash costs of $US956/oz ($NZ1,175/oz), slightly higher than the previous quarter at $US921/oz.
OceanaGold said its Didipio gold-copper project in the Philippines also made solid progress throughout the quarter with construction activities “progressing to plan.”
By the end of the quarter, 90% of the senior management for the operations team were in place, as the company begins to establish the operating platform and team in advance of expected project commissioning in the last quarter of 2012.
OceanaGold’s chief executive Mick Wilkes, said the company’s performance was buoyed “by the strong leverage to a rising gold price.”
“We are pleased with the operational improvements we have achieved at Macraes and Frasers over the past quarter and continue to work on getting the Reefton operations back in line with expectations.
“Despite some weather related events at Didipio, progress there is tracking well and we are looking forward to achieving some key benchmarks such as pouring concrete at the project before the end of 2011,” he said.
OceanaGold said the third quarter saw the company post net earnings of $US10.9 M ($NZ13.4 M) which was a 163% increase on the previous quarter result of $US4.1 M and a YTD 2011 total of $US29.8 M ($NZ36.64 M). NZResources.



Sams Creek new partner moves quickly into drilling mode

Ross Louthean — 28 October 2011

Miles Kennedy.

The Western Australian-based company MOD Resources Ltd (ASX: MOD), which has farmed-in on the Sams Creek gold project in the north west region of the South Island, will be starting a major drilling programme next week that should go through most of the summer.
It brings back to New Zealand Miles Kennedy as MOD’s chief executive about 25 years after he established Macraes Mining Co at Macraes – forerunner of today’s OceanaGold Corporation which is NZ’s premier gold producer and owner of Sams Creek.
While running Macraes, Kennedy purchased the Reefton goldfield properties and Sams Creek from Rio Tinto subsidiary CRA Exploration, but during the corporate progression from Macraes Mining to GRD Macraes and then OceanaGold, only limited exploration was carried out on Sams Creek.
Exploration on Sams Creek took place mainly during the period that Len Jubber was chief executive of GRD Macraes and this saw a rapid lift in resources to 13.5 million tonnes grading 1.7 grams/tonne gold using an 0.7 g/t cut-off – or a resource of 770,000 oz.
Kennedy told NZResources.com that this resource was in the main zone of 600 metres but the mineralised structure within the licence was considered to be about 6 km.
This drilling campaign involving nine holes will utilise already established drilling platforms in the elevated Sams Creek structure but these holes will be drilled in different directions to previous ones.
Kennedy said it was hoped the drill campaign, costing about $2.5 million would help increase the resource to about 1 M oz.
MOD has established an NZ subsidiary Sams Creek Gold Ltd, and the company has engaged Dunedin-based Paul Angus, a former Macraes Mining and GRD Macraes exploration manager, as senior consultant.
Last week MOD Resources announced significant new drilling results from its copper-silver project in Botswana.
Assisting the exploration programme will be MOD Resources executive director Derek Byrne who, in an earlier operating life, managed a relatively short lived project to access the main old shaft at Blackwater in the Reefton goldfield for OceanaGold.
The joint venture contains benchmarks for MOD Resources to earned staged interests of 40% and then 60% in the permit.
The total future consideration payable by MOD to OceanaGold will be between 10 M and 17 M ordinary MOD shares, conditional on future benchmarks being achieved.



Record gold price offsets lower production, costs for OceanaGold

Friday 28th October 2011




Record world prices for gold offset higher costs, adverse exchange rate movements and reduced extraction rates at its two South Island mining sites for OceanaGold Corporation in the three months to Sept. 30.
OceanaGold reported earnings before interest, tax, depreciation, and amortisation , excluding losses on foreign exchange and hedge contracts of US$43.27 million, compared with US$32.99 million in the second quarter, but only slightly above ebitda of US$42.61 million in the same quarter a year earlier.
The key difference was a rise in the average price for an ounce of gold for the quarter to US$1,706, compared with US$1,546 in the second quarter and US$1,232 in the same quarter a year earlier.
On an after tax basis, also excluding hedge costs, OceanaGold reported a US$10.91 million profit in the third quarter, taking year to date net profit to US$29.83 million, compared with US$12.11 million for the same nine months a year earlier.
Earnings per share stood at 4 cents, compared with 2 cents per share in the previous quarter.
Total gold revenue in the third quarter of US$103.5 million was up 9.1 percent on the second quarter, although production was down 1.1 percent, at 59,090 ounces.
Grams per tonne of ore mined were down too, at 1.12 grams per tonne, compared with 1.23 g/t and recovery rates of 82.5 percent were also below the average for the year to date of 83.1 percent.
“The company’s forecast has production expectations at the lower end of full year production guidance range of 255,000 to 270,000 ounces of gold,” directors said in the earnings statement. “Cash cost guidance of US$850 to US$890 per ounce also remains unchanged.”
For the quarter under review, the US$160 per ounce increase in the average gold price over the previous quarter expanded cash margins to US$750 per ounce, with an offsetting increase of US$35 per ounce caused by a stronger New Zealand dollar, fewer ounces produced and less capitalised pre-stripping.
While there was a 24 percent increase in ore mined at the Frasers Underground mine in the Macraes goldfield, heavy snow and lower ore grades meant total gold production from the field was 42,136 ounces was down on the 44,107 ounces produced in the previous quarter (49,732 ounces in the same quarter a year earlier).
At Reefton, grams per tonne or ore mined were also lower than in the past couple of years, at 1.7 g/t, with yields expected to increase as the Souvenir open pit development deepens and reaches higher grades.
The company had struggled to keep and attract skilled labour, and had increased salary packages accordingly.
OceanaGold’s Didipio development in the Philippines had suffered delays and one employee death as a result of tropical typhoons, but the senior management team was now almost all in place, worker accommodation is near completion and concrete pours are expected in coming weeks.
BusinessDesk.co.nz


Poised for the upturn? Net profit is not 10% of NPV or equivalent, but is looking like accelerating to that level.

[mistymountain]

With POG now consolidating its uptrend and OGC establishing some genuine growth opportunities in NZ and overseas 2012 should be a very positive year. Roll on the next quarter results...

[elZorro]

With POG now consolidating its uptrend and OGC establishing some genuine growth opportunities in NZ and overseas 2012 should be a very positive year. Roll on the next quarter results...

Gidday there MM, sorry about the slow response, I've been a bit bored with OGC, and the shareprice has been a bit flat. This from NZResources today, and for once there seems to be some journalistic input. Keep that up Simon.

Big lift in Frasers Underground resourcesSimon Hartley — 7 December 2011
OceanaGold Corporation's (ASX, NZX & TSX: OGC) mine-life extension received another boost with exploration results adding up to three years to its Frasers Underground operation at its Macraes mining operation.
In mid-June, 21-year-old OceanaGold announced its overall New Zealand operations were expected to be extended by seven to eight years into 2018-19.
Part of the mine life extension includes granting of on-going resource consents at Macraes to continue its mining operations, and Oceana is at present appealing recent Environment Court-imposed conditions, revolving around provision of a $2 million trust fund for the local community, but also an earlier proposal to maintain a heritage art park at Macraes once mining is finished.
This calendar year Oceana's forecast production is down slightly to 255,000-270,000 ounces, but combined with its development gold and copper mine in the northern Philippines, by 2016 Oceana was targeting annual gold production of around 600,000 oz.
Oceana chief executive, Mick Wilkes, said that overall gold resource estimates for Frasers Underground now stood at 745,000 oz; with the Panel Two area resource up 25% to 602,000 oz and the Lower Zone area stands at an estimated 77,000 oz resource.
"Frasers underground mine life is expected to extend to at least 2017," Wilkes said.
"The exploration programme over the past 12-months has been successful in considerably expanding the measured and indicated resources at Frasers Underground, and it is expected to extend the mine life at that operation by at least another three years," he said.
Wilkes said there would be on-going diamond drilling exploration in the Panel 2 area, both from underground and surface drilling, which would continue to "test the fringes" of the Panel 2 area.
In October, the Otago Regional Council and Waitaki District Council granted Oceana a number of consents enabling it to keep mining at Macraes, subject to conditions. However, late last month Oceana lodged an appeal to the Environment Court, claiming some of the conditions imposed on the resource consents to expand its Macraes mine site were "unnecessary and onerous."
Among them was the requirement to operate, maintain and promote the existing artworks and heritage items as part of an updated Heritage and Art Park Management Plan until at least 2030, in addition to the requirement to establish a $2 M trust, transfer assets to the trust and provide funds to support the wider community.
At present, if both parties agree, mediation could be the next step, but if they did not agree, a pre-hearing conference would be held prior to a new Environment Court date being set.
In mid-October, Oceana floated a long term concept plan for a potential "superpit" open cut mining operation at Macraes, which would require new, separate. resource consents to be applied for if it went ahead.
During an earlier investor presentation in the United States, Wilkes outlined the "Macraes Superpit Concept" where a larger open pit and new process plant could add 100,000 oz of gold a year to production, plus production of a separate tungsten by-product.
The superpit concept would mean an expanded open pit, a new process plant and higher mining rate and ore throughput to gain 100,000 oz per annum. There could be a possible increase of the estimated gold reserve in Macraes' open pits, from the present 1.53 M oz to 2.6 M oz; a 69.9% increase.
*Simon Hartley is senior business reporter for the Otago Daily Times.


I think we all know the big finances and superprofits that should result from any gold price increases, as long as diesel prices hold at something sensible. So I'm perturbed that OGC is heading to court over these permit conditions. These are positives, not negatives, part of a good story. That's what shareholders want. Best to keep your head down and comply, I'd think.

[elZorro]

Another NZResources article today. I hadn't bothered posting the press release from OGC. It was thinly disguised PR.


OceanaGold re-emphasises that Didipio will be a key contributorSimon Hartley — 19 December 2011
New Zealand’s premier gold miner OceanaGold Corporation (ASX, NZX & TSX: OGC) has tentatively forecast record gold production for the calendar year 2013 -- underpinned by its gold and copper development mine in the Philippines which is less than a year away from beginning production.
OceanaGold, along with most other major gold producers, has seen its share price undermined during the past fortnight by the decline in global spot gold prices which have passed down below $US1,600/ounce ($NZ2133/oz) to $US1,573/oz late last week.
Oceana's share price during the past seven trading days is down more than 18%, having fallen from $3.38 to around $2.76 on Friday -- with market capitalisation declining from $NZ887 million to $NZ724 M.
While the company has ramped up overall exploration funding, increased its resource estimates and is portraying confidence in the Didipio development, management is putting itself under increasing pressure to deliver results to the market in the near future.
In separate market updates released by OceanaGold chief executive, Mick Wilkes, he reiterated the expectation of Oceana delivering between 230,000 - 250,000 oz of gold from New Zealand operations this year, but raised the production bar to 300,000 - 350,000 oz during 2013, which will include about 70,000 oz from the Philippines.
Crucial to operations and profitability, cash costs of production per ounce this calendar year is expected in a range of $US900-$US980/oz while for 2013, with the Didipio operation in the northern Philippines underway, Wilkes said operating costs should move below $US500/oz.
He remained confident Oceana could achieve a target of producing 600,000 ounces a year by 2016 from all operations.
On the question of declining market capitalisation Wilkes said investors would soon realise Didipio would bring a “significant transformation” to Oceana.
“The current market capitalisation reflects little to no value for Didipio as we execute on our strategy to build it and establish a platform for growth in the region,” Wilkes said.
In his Didipio update, Wilkes said 480 construction staff were on site, plus management, about $10 M per month was being spent and exploration of adjacent prospects would accelerate next year; with production scheduled to begin in the fourth quarter.
Craigs Investment Partners broker Peter McIntyre said while Oceana's New Zealand operations remained “a standout'' for the year, Didipio as a new operation still carried risks.”
He said Wilkes was had clearly outlined operational expectations and where he saw value in company operations, but he had “drawn a line in the sand,” for the market and investor expectations.
While gold is usually a safe haven in turbulent economic time, investors had been profit taking from recent highs and it was possible some of the Euro-zone countries, many of which are historic holders of large amounts of gold, were possibly selling stocks to assist in shoring up their faltering economies.
*Simon Hartley is senior business reporter for the Otago Daily Times.


I'm not expecting much this side of Christmas, just wondering if the insiders are carefully set up yet, and when the next bull run for OGC might start. Certainly in the meantime energy costs are high, extraction amounts aren't changing, and the gold price is dropping.

[adamcz]

Reefton is supposedly supposed to be producing slightly higher amounts duet o higher grade processing sometime this quarter. Guess wont see how much change until the Q1 2012 results though every little increase helps. NZ dollar has also dropped around 10% to the USD over the quarter which should help reduce some of the costs.
Not sure if anyone else has been checking the oceanagold website but there are monthly pics of the didipio construction

[elZorro]

Reefton is supposedly supposed to be producing slightly higher amounts duet o higher grade processing sometime this quarter. Guess wont see how much change until the Q1 2012 results though every little increase helps. NZ dollar has also dropped around 10% to the USD over the quarter which should help reduce some of the costs.
Not sure if anyone else has been checking the oceanagold website but there are monthly pics of the didipio construction

Yep, it all looks very promising for 2012, most likely a double benefit for OGC as Didipio starts looking like a commercial runner and the cashflow comes in, and trusting that the world's economy continues to falter with high fossil energy prices, which will benefit the gold price. I have to say though, that we'd have been better off just buying gold over the last year or so, and selling each time a suitable gain appeared. But 2012-13 could be another big gain period for OGC.

[elZorro]

This from NZResources, more about MOD, who now have most of OGC's Sam's Creek.


Kennedy increases his gold exposure11 January 2012
Miles Kennedy, the first managing director of the Macraes gold mining operations who also acquired the Reefton goldfield for that company, has added a second gold project to his current group of Perth-based companies.
Late last year MOD Resources NL (ASX: MOD), which Kennedy chairs, took up a joint venture with OceanaGold Corporation (ASX, NZX & TSX: OGC) on the Sams Creek gold project in the north west Nelson region of New Zealand’s South Island.
This week another company under Kennedy’s management group, Resource & Investment NL (ASX: RNI) struck a deal to take over the mothballed Fortnum gold mine in the Glengarry Basin of Western Australia.
Miles Kennedy was the inaugural managing director of Macraes Gold Mining, the company that established the Macraes gold operations 21 years ago, but after several years, he turned his focus back to Australia to operate a diamond miner at Ellendale in WA’s Kimberley region, among other companies and projects.
The deal on Sams Creek will give MOD Resources the right to earn up to 80% of the project, and Kennedy told NZResources.com recently that the quest was not only to increase the known resource there, but to undertake detailed exploration on the known mineralised system in the area.
MOD has wasted no time, and the company is now undertaking some quantifying drilling, using drill pads in the high country at Sams Creek.
The Fortnum mine was first developed by Homestake Gold, a big North American miner with a big Australian profile that was taken over by Barrick Gold, and later operators included Perilya Mines whose main operation today is the main lead-zinc-silver mines at Broken Hill in New South Wales.
Fortnum was purchased by Resource & Investment for $A20 million ($NZ26 M) in cash and $A15 M worth of RNI shares. Under the deal with the vendor Bluecrest Mercantile Master Fund, the company will acquire all the issued capital of Grovernor Gold Ltd – the company geared for Fortnum.
RNI is viewing a blueprint to develop a mine within 12-18 months to produce about 50,000 ounces of gold annually at a projected cash cost of $A826/oz ($NZ1,073/oz).
Fortnum retains a gold processing facility with a nameplate capacity for treating about 1 million tonnes per annum. Fortnum has a JORC-compliant resource of 1.2 M oz, at a head grade of 2.2 grams/tonne gold.
News associated with companies mentioned in this article

MOD Resources Ltd (5 articles)
OceanaGold Corporation (130 articles)

[JBmurc]

FY2012 & FY2013 Production Guidance
As reported in December 2011, FY2012 production guidance has been set at 230,000 - 250,000 ounces of gold at cash costs of US$900 - $980 per ounce (assumes NZD/USD exchange rate of $0.80).
With the start of production at Didipio, preliminary FY2013 production guidance is estimated to be 300,000-350,000 ounces of gold at cash costs of less than US$500 per ounce (net of copper credits).

[gonzo56]

Cheers JB, can't wait!!

[elZorro]

Not a bad qtr report out today (http://tmx.quotemedia.com/article.php?newsid=47678872&qm_symbol=OGC), looks like OGC made a cash surplus of US$50mill on their mining for the quarter. Extra capital and overhead costs come off that, but not too shabby.

This from NZResources today..


Gold grades dip at Globe-Progress

Simon Hartley — 20 January 2012
New Zealand’s premier gold miner OceanaGold Corporation (ASX, NZX & TSX: OGC) did not attain its target production from the Globe-Progress open cut mine at Reefton.
Guidance for OceanaGold's full calendar year production from New Zealand operations was a “conservative” 230,000 to 250,000 ounces of production at a cash cost per ounce of $US900-$980/oz ($NZ1125-$1225/oz) per ounce, according to chief executive Mick Wilkes in a trading update earlier this week.
“Though the Macraes open pit and Frasers underground [mines at Macraes, in East Otago] have performed to plan, our expectations for the Reefton mine at the beginning of the [2011] year were higher than they should have been,” Wilkes said.
He said there was a “negative reconciliation” between mined gold grades and expectations from OceanaGold's geological model during 2011, particularly at Reefton, with the company being “more cautious on predicted grades,” though there had been more accurate reconciliations recently.
Craigs Investment Partners broker Peter McIntyre said Reefton's lower gold grades would have been “disappointing” for Oceana, but in the year ahead, gold and copper prices globally looked positive.
“This could be a good year for Oceana, but headwinds remain in the volatility of the [New Zealand] dollar," he said.
Mick Wilkes said Oceana's budgets had been struck using a “conservative” exchange rate of US80c and oil at more than $US100 per barrel.
He expected production and operating costs for this year to be similar to the past three quarters of 2011, but with production to “increase significantly” during 2013, when the Didipio gold and copper mine boosts production by 70,000 ounces of gold, plus copper, during 2013.
The year 2013 was also expected to see better gold grades recovered from the Macraes open pit, with total gold production at 300,000-350,000 oz, but operating costs expected to be below $US500/oz, because of copper by-product credits.
*Simon Hartley is senior business reporter for the Otago Daily Times.

[elZorro]

There might be a good report out on Sam's Creek soon..worth keeping an eye on MOD:ASX. Can't help wondering if Mr Louthean has shares in some of these..


Drilling advances on Sams CreekRoss Louthean — 25 January 2012
First results from the nine hole diamond drilling programme on the Sams Creek gold project in the north west Nelson region may be detailed by Perth-based MOD Resources Ltd (ASX: MOD) when it releases its December quarter report late this month.
MOD Resources wasted no time starting a quantifying drill programme on Sams Creek late last October after striking a joint venture late last year with owner OceanaGold Corporation (ASX, NZX & TSX: OGC).
The drilling programme of about 2,000 metres is more than half complete and up to six drill holes are now being assessed with core being sent for assay.
The drilling has focused on the area where OceanaGold and its predecessor GRD undertook drilling that established a resource of 770,000 ounces of gold.
MOD Resources can earn up to 80% in Sams Creek by sole funding exploration to establish a commercial resource.
The resource is within a strike of 600 metres on a structure known to have a strike of more than 6 kilometres.
In a recent presentation MOD Resources said intrusive-related gold deposits (IRGDs) like Sams Creek are often large – up to the 4 million oz range.
MOD Resources is chaired by Miles Kennedy who in the mid 1980s was managing director of Macraes Mining which started the Macraes gold project and then acquired the Reefton goldfield and Sams Creek from Rio Tinto subsidiary CRA Exploration.
The company has a dwelling in Takaka to support its exploration team and project manager Paul Angus is a Dunedin-based mining consultant who held senior positions at Macraes for many years, under GRD and later OceanaGold.
The company is using Golder Associates as a project consultant.
MOD Resources also has an advancing copper-silver project in Botswana, where it holds 8,300 square km in the Kalahari Copper Belt.

[elZorro]

Not that I've been looking, but not much has popped up about OGC lately. Its shareprice seems to be offering opportunities regularly, and it's dropping back at the moment. Here's an interesting chart, if it keeps going like this a simple equation gives you an average value: OGC (Canadian cents) = 0.145x Gold price (US$). This means that OGC is following gold like it should, no-one is selling out too much, but there's no immediate news to help it along.

[adamcz]

Annual results are due Thursday which should be interesting, hopefully get a nice resource update as well. Most importantly will be the commentary on how the construction at didipio is progressing although all looks like it is progressing on target:

OceanaGold sees supply deal for Didipio mine

Reuters
Posted at 02/10/2012 6:29 PM | Updated as of 02/10/2012 6:29 PM


MANILA, Philippines - Australian miner OceanaGold expects to sign an off-take agreement in six months with a trading firm for gold and copper from its flagship $350-million Didipio mine in northern Philippines, set to begin production at the end of 2012, a top company official said on Friday.

Chief Executive Mick Wilkes said the firm would spend up to $10 million for exploration projects this year around Didipio, in Nueva Vizcaya province, to boost the mine's output and extend its life beyond 16 years.

The mine has 1.68 million ounces of gold deposits and 229,000 tons of copper.

"We're in negotiations with a number of companies for an off-take agreement at present," Wilkes told reporters after speaking at industry forum in Manila.

"We will bring Didipio into production at the end of this year."

Mine construction is now underway and gold production will ramp up to 100,000 ounces a year by the end of 2014 from an initial annual rate of 18,000 ounces next year.

Wilkes declined to name the trading firms OceanaGold was talking to. It was previously in talks with commodities giant Glencore, which owns the Philippines' sole copper smelter and refiner PASAR, about supplying gold and copper from Didipio.

PASAR, or the Philippine Associated Smelting and Refining Corp, has shut its smelting and refining facilities after a fire in early January.

Wilkes said OceanaGold, which now produces gold from two mines in New Zealand, will use funds raised from shareholders to fund the Didipio project.

[elZorro]

Yes, having somewhere handy to offload the copper is one of their issues I guess. The PASAR plant is Swiss-owned, they're working to get it back up and running. http://www.abs-cbnnews.com/business/01/18/12/glencores-pasar-copper-operations-shut-after-fire . Not sure where the gold will be going, or how that is separated from the main copper ore. I think the first part of the diggings is mostly copper, should still be profitable. I'm not sure about this line:


Wilkes said OceanaGold, which now produces gold from two mines in New Zealand, will use funds raised from shareholders to fund the Didipio project.

What that means is: We delayed, put it on the back burner, talked about borrowing the amount, JV etc, waited for the shareprice to motor up on the gold price, and heavily diluted the share virtually overnight with a previously unannounced placement. Some of the big investors and insiders knew all this well in advance, and had sold down near the top. I guess it'll all be worth it in the end.

[elZorro]

Annual report out yesterday, Fairfax had this positive item (http://www.stuff.co.nz/business/industries/financial-results/6434382/Gold-price-bumps-up-miners-profit):

OGC seemed to respond overnight, partly the gold price helping it. Costs to mine each ounce have gone up quite a bit as many have noticed, annual production dropping hasn't helped that. I wonder if the bottleneck autoclave system at Macraes is getting worse with the lower grades. For some reason they don't seem to want to sort that out with more gear.

Cash seems to be holding steady, but some more spending planned for 2012, and Didipio commissioning will use up a fair bit of what's left. However the profit line will look better by 2013.

The full annual report has a new section 23: Related Parties, page 36, towards the end. This seems to be a new requirement: divulges what the directors and some executives received (as a group) in the way of compensation for the year. There are 7 directors including the Chairman, some of these are also on the executive. Non-executive directors (5) were set a higher aggregate fee of $830,000 at the last AGM ($166,000 each, was $110,000). Remember a vote on gifting away unspecified major chunks of the company to directors was abandoned.

In the 2010 year, the value of all director and senior executive fees/shares compensation was $4.024 million. For 2011, it's $5.818 million, a 45% increase.

A new presentation dated February 2012 gives lots of detail about Didipio (http://www.oceanagold.com/assets/documents/Presentations/2011-OGC-Corporate-presentation111216FINAL.pdf). All looks fine, OGC looks undervalued by the market, as per usual. Macraes to stay fairly flat in production for years yet. The website has also been tidied up.

[elZorro]

NZResources today:
Analyst sees OceanaGold cashed up for growthDene Mackenzie — 20 February 2012 A Dunedin-based stockbroker who follows the resources sector said while OceanaGold Corporation (ASX, TSX & NZX: OGC) did not quite meet its production and cash cost targets it was well cashed up and had strong reserves.Craigs Investment Partners’ Peter McIntyre was commenting on the reported profit of $US44.2 M for 2011 which was marginally below 2010.McIntyre said the Didipio gold-copper project, in the Philippines, was keeping analysts and investors intrigued.Once the project started, the copper production should easily offset production costs for the new gold project and provide a large free cash flow back to shareholders.OceanaGold chief executive Mick Wilkes said the Didipio project continued to make strong progress throughout the year.The company met key construction milestones, including starting the concrete pour, nearly completing the construction accommodation camp, mobilisation by the mining contractor to the site and the arrival of the first shipment of structural steel.All major construction contracts for the project had been awarded or were in the process of being tendered.“Our NZ operations posted relatively stable earnings in 2011 and continue to generate positive free cash flows,” Wilkes said.“With construction of the Didipio project progressing according to plan, and scheduled to commission in fourth quarter 2012, combined with exploration opportunities in New Zealand and the Philippines, the company is on the right track to achieve its strategic targets.”McIntyre said OceanaGold contributed greatly to the Otago and Dunedin economies and it was pleasing to see the company continue to report strong operating profits and cash flows.A presentation by the company to analysts and media showed a high degree of exploration in NZ.At Macraes surface drilling is testing potential extensions to mineralisation – targeting open pit and underground.At Reefton diamond drilling continued at Big River, 4 km north of the Reefton plant where a resource assessment was underway, while at Crushington, 4 km north of the plant seven holes were completed in the December quarter but no additional drilling was planned this year.At Blackwater, 15 km south-west of the Reefton plant a deep drilling programme was targeting ore systems to 1,270m depth, below the old mine, while at Happy Valley, 4 km south of the plant, assays were awaited from a diamond drilling programme.--extra reporting by Ross Louthean.*Dene Mackenzie is business and political editor of the Otago Daily Times

Fair enough, it's not looking too bad. This time last year I was predicting a change of Chairman to Jake Klein, and I got that wrong. At that stage Jim Askew had not completed a 5 year term. He has now. Here's the Board's updated charter:


4.2 Role of chairman
In accordance with clause 11.5 of the constitution, the Board has resolved to appoint a chairman and may determine the period of office.The chairman in place from time to time will be selected on the basis of relevant experience,skill and leadership abilities that the Board recognises from time to time. The Board at the first board meeting following each annual general meeting will consider the position of chairman. It is envisaged that the normal term for a chairman will be a period of five years subject to satisfactory performance.



Jake Klein chairs the powerful nomination and remuneration committee. The board rules were modified to accept that situation. In addition, the new Head of Human Resources is via Sino Gold and Eldorado (http://www.oceanagold.com/about-us/management/), so has probably worked with Mr Klein before. I just get the impression of ducks being lined up in a row.. which direction are we going in, that's the question.


The AGM is sometime in June 2012.
(http://www.oceanagold.com/investors-and-media/events-calendar/)

[elZorro]

Not such good news..might be a buying opportunity downside of this.

http://tvnz.co.nz/national-news/workers-exposed-mercury-4746510

[adamcz]

Probably find not much of an effect on the price the problem was 2 years ago now.

Some more pics are up on the oceanagold site of the didipio progress and a new presentation
http://www.oceanagold.com/assets/documents/Presentations/2012-OGC-Corporate-presentation-120224-FINAL2.pdf

Looks like everything is going to plan which is good to see and from the looks of the pics the commissioning should be in end november... only 8 months to go

Also read that the last royalty on the Globe Progress mine will be payable this year (currently 5,000 oz p.a.) as it should have produced 400,000oz (over its life) this year. I haven't really had the opportunity to confirm this

[elZorro]

OGC did drift down for various reasons over the week. It just doesn't look too great at the moment.

As many predicted, there have been buyouts in the mining sector in 2012 too. Quadra FNX, a big copper miner formed from the merging of Quadra and FNX mining, has been bought out by a cashed-up Polish mining firm. Quadra had no debt, valuation of about 3 billion. The announcement that it was the subject of a buyout offer seemed to take the market by surprise in late 2011, the share had drifted down a bit. Quadra (TSX:QUX) has just been delisted.

Bill Myckatyn was a co-founder of Quadra, CEO until 2006, and until recently was Vice-Chairman and Lead Director designate. He is a fairly new member on the board of OGC (April 2010).

He stated that he looks forward to helping OGC build from its already solid base. Hmm, cashed up now (http://www.investorpoint.com/stock/qux:ca-Quadra FNX Mining Ltd./insider/All Insiders/All Types/), maybe he'll be buying some OGC shares?


http://www.vancouversun.com/business/Quadra+Shareholders+billion+sale+Poland+KGHM/6180826/story.html

Background to the bid: not a huge offer. http://www.vancouversun.com/business/Does+KGHM+Quadra+stage+bidding/5831113/story.html

[elZorro]

Remember the merger of Conquest Mining and Catalpha Resources last year? Jake Klein and Jim Askew are heavily involved there, and the newly named Evolution Mining (ASX: EVN) is the result.

http://www.evolutionmining.com.au/companyBoardOfDirectors.html

They look to be producing as much gold as OGC by 2013. Where do they find the time.. Big Mcap, well over a billion dollars. Their trend looks a lot better than OGC's at the moment.

EVN news, 20th Jan 2012:
Meanwhile, Evolution on Wednesday also reported that MD Bruce McFadzean would step down, as part of the company’s ongoing management restructure following the merger. Going forward, the responsibilities of MD would now be combined into the executive chairperson’s role, which is currently being filled by Jake Klein.


Cheers, thanks for that work Bruce..


(http://www.evolutionmining.com.au/_content/documents/479.pdf)Mr McFadzean is still a director. The MD compensation was over $1mill per annum.

What's the bet that there will be some more good news from EVN towards the end of this month? http://www.sydneyminingclub.org/future_events.htm

See this post from last year about CQT: (http://www.sharetrader.co.nz/showthread.php?8389-CQT-Conquest-Mining-preparing-for-merger&p=344316&viewfull=1#post344316)

If Mr Klein took up those CQT shares for 30c, 27 mill of them, and swapped at 0.3 x EVN shares on the merger, he'd have at least 8.1 mill shares for $1 each. At the moment, on paper, he's possibly worth an extra $7 mill in just a few months (shareprice is A$1.90 now). I really should give up my day job.

I don't think there's any doubt that OGC's shares will move up quite a bit with Didipio producing. At the moment it's a sitting duck for a takeover or merger.

[adamcz]

Touch wood, but nice to see the SP hold up in all markets even with a $30 drop in POG overnight.

[elZorro]

News today, Jim Askew (via a company) bought about $100k of OGC back in February 2012 (http://www.asx.com.au/asxpdf/20120323/pdf/4256pbrtpgdf91.pdf)for A$2.45 each, off-market. Two things to note - the gold price dropping meant that he could have purchased cheaper later on, and it was the first notified change in his holdings since 2010. Sounds like (all other things being equal) if the gold price stabilises or moves up from here, Jim thinks OGC won't be going any lower for awhile, and it might be an accumulation opportunity. We'll see if Jim's right.


Mr. Askew, a mining engineer with extensive experience in property acquisitions, mine development, and mine finance, is President of International Mining & Finance Corporation, a private venture capital and investment group targeting international gold and base-metal opportunities.

In July 2011, this company also bought into about 6% of CRP, Chatham Rock Phosphate.

[gonzo56]

News today, Jim Askew (via a company) bought about $100k of OGC back in February 2012 for A$2.45 each, off-market. Two things to note - the gold price dropping meant that he could have purchased cheaper later on, and it was the first notified change in his holdings since 2010. Sounds like (all other things being equal) if the gold price stabilises or moves up from here, Jim thinks OGC won't be going any lower for awhile, and it might be an accumulation opportunity. We'll see if Jim's right.

Sweet, sounds good. :) He would be classed as the vital few right... http://www.amazon.com/Vital-Few-vs-Trivial-Many/dp/0471681954

[elZorro]

Sweet, sounds good. :) He would be classed as the vital few right... http://www.amazon.com/Vital-Few-vs-Trivial-Many/dp/0471681954

Yep, Gonzo, that's for sure. Jim has/had a few shares in CRP too, via the same corporate vehicle, these did a lot better. If I was jaded with the sharemarket (and today I am), I might suggest that what we have here with OGC is a normal buy/sell that went pear-shaped, it was off-market so who could tell. Maybe these trades are going on quite frequently. A corporation is one level of protection for what can be a private holding. Lots of entities with the words "corporation" in them, also hail from one of numerous tax havens.

[elZorro]

Ho hum, not a great deal of movement with OGC for quite a while. Back a year or two, a few on here were pointing out to me the rising cost of OGC's production. They were right to raise a flag to optimism.

From NZResources:

Investors look to stronger second half for OceanaGoldSimon Hartley — 30 April 2012
Crucial gold production costs for East Otago based OceanaGold Corporation (ASX, TSX & NZX: OGC) almost doubled on a year ago as plant maintenance costs and the high New Zealand dollar took their respective tolls.
For the quarter ended March, Oceana posted revenue of $US88.6 million ($108.5NZ M), earnings before interest and tax of $US23.2 M and after tax loss of $US3.86 M; the latter comparing to a $US14.7 M profit for the same quarter a year ago.
A year ago it cost Oceana $US687 to produce an ounce of gold, which then rose to $US947 in the quarter to December then to $US1,126 for the quarter to March -- the latter adjusted to combine administration costs of three different offices.
Gold production was down 23%, from 65,750 ounces in the quarter to December to 50,842 oz.
The company cited several reasons for the decline, including lower grade ore, planned plant maintenance, underground access restrictions and adverse foreign exchange movements.
OceanaGold retained its guidance forecast for the calendar year, of producing between 230,000 to 250,0000 oz at a costs of $US900 to $US980/oz, with the second half production boosted by better ore grades and return to normal underground operations.
“As a result of the higher production expected in the second half, cash costs are expected to be lower in this period assuming constant exchange rates,'' the company said.
Brokers from Forsyth Barr and Craigs Investment Partners are expecting improvements in second half trading, having been disappointed with the first quarter result.
Craigs' broker Peter McIntyre said while the quarter's result would have been disappointing for Oceana, it remained “in a relatively strong cash position,” at $123 M and construction work on its Philippines gold and copper development project was about half way complete.
“If gold holds around $US1,600/oz the [future] copper offsets will be a huge contribution to keeping production costs down,” McIntyre said.
Forsyth Barr broker Peter Young said Oceana's first quarter production was a “lowly” 50,842 oz, noting it was a 23% decline compared to the previous quarter and full year profit expectations were downgraded 48% to $US25.5 M.
"This low production figure meant cash costs per ounce blew out to $US1,126. Costs in absolute terms were slightly up, but that is more currency related than anything else,” he said. It was important that Oceana had maintained its full year production guidance of 230,000 to 250,000 oz, but Young estimated production volumes would be at the lower end, being 13,000 oz down to 238,000, which would affect after-tax profit.
*Simon Hartley is senior business reporter for the Otago Daily Times.


Looks like the company is so focussed on Didipio that they let the cashflow from home operations drop. There are ways round most bottlenecks and maintenance procedures. Guess we'll know when the share is about to take off again.

[elZorro]

Notice on the ASX today: Baker Steel have been selling shares in OGC all through April, after buying up in January this year. They made a good profit on the first block sold, but have helped pull the market right back by the end of April. The share price is dropping away from the gold price, and this is down to management also - not tweaking the NZ production data up. There are three mines in the SI, all of them having issues.

ASX:RCO looks to be a benefactor of future expansion on the West Coast.


Royalco dependency on Reefton royalty may grow
Ross Louthean — 2 May 2012

The royalty cash flow from the Globe-Progress gold mine at Reefton on the West Coast may have greater importance for Melbourne-based Royalco Resources Ltd (ASX: RCO).
Royalco said in its March quarter report that it had received income from three of 10 royalty interests it held and one of these was the Mount Garnet base and precious metals mine in Queensland, where owner Kagara Ltd had mothballed operations.
On Monday, the troubled Kagara was placed in voluntary administration and Royalco’s executive chairman Peter Topham commented that this royalty interest “is not considered material to Royalco’s ongoing activities and financial position.”
Meanwhile, in the March quarter the Globe-Progress royalty received 1,250 ounces of gold which, after NZ withholding tax was 1,062.5 oz.
The price of delivery for the quarter was $A1,565/oz which equated to $A1.663 M ($NZ2.118 M).
Topham said Reefton mine operator OceanaGold Corporation had provided encouraging updates on exploration with activity at the Blackwater and Big River prospects which were also subjected to a royalty entitlement.
“Scoping studies for Blackwater suggest an annual production rate of 50,000 oz per annum. If achieved and using the current spot price for gold, this would equate to approximately $A2.4 M per annum payable to Royalco,” the company said.

[elZorro]

I noticed yesterday that Van Eck (an outfit like Baker Steel?) has been buying more OGC. Seemed to help the share price along.

Today I received the voting papers for the AGM. Mr Askew and Mr Klein are still going for office, as expected.

The Performance Share Rights Plan is back on the agenda. Remember this was dropped last year, was not voted on. I've had a look at the two texts to compare them. This time there is a cap in the amount of shares to be gifted in a year, of 6% of the company shares, it was 10%. However there is new wording restricting individual employees to a 5% cap, and non-employees to a maximum of 1% of the company in total. That restriction wasn't there last time. There is also a subtle change in the wording about whether this plan applies to directors who are not employees.

2011: Whilst not anticipated, Directors of the Company may also participate in the PRP.

2012: Non-employee directors of the company may have limited participation in the PRP.

Let's see- sometimes OGC gets to be worth over a billion dollars. 1% of that is $10million. :scared:

[elZorro]

I found this document on the web: shipments weights for the ball mill components for Didipio, around 2007-2008. Getting these mines going takes ages, if no funds are available.

http://minasco.com.au/oceanagold/OceanaGoldBallMillTechnicalInformation.pdf

I can't help comparing this stuttering start, for a mine that has less than 2Moz of gold (lots of copper, sure) with GEL's WKP (perhaps 3-5Moz, near Waihi's existing mill. There they have the huge capital of Newmont Mining waiting.

Back to OGC. I had a quick look through the OGC Financial and Governance statements booklet. It's all in black and white, (literally). No colour photos, no flash promotion from the Chairman etc. It's almost like:


Please don't take any notice of us until we get past the AGM.

While the proposed Performance Share Rights Plan (PSRP) has been toned down and some limits placed on it, we're talking about a big company that has trended down while gold output was lowered, hundreds of millions of dollars of shareholder value is gone, (on paper), but these could just as easily return when Didipio is online and the NZ mines get asked to perform. The company is already loaded up with cash (remember new shareholders paid that in, and we all got diluted) and can fund Didipio easily.

This meeting is being held during a temporary low in the gold price, most likely, making the finances look less exciting. After the AGM, I still say it's likely that Mr Klein will be voted in as Chairman (replacing Jim Askew, who has served over 5 years) and will stoke the fire under OGC. He'll be extra keen if the PSRP is voted in, and we can all go along for the ride.

But do any of the board deserve more than the extra fees they've already voted themselves? That is the question.

[troyvdh]

Thanks el..,.,much appreciate your posts..no doubt many other folk do as well.

[elZorro]

Looks like OGC is heading up for sure. Haven't had time to look into details.

[adamcz]

Probably a few things coming together at once:
Been a while since Baker have sold down (from memory the SP has fallen most times they have sold down and then recovered)
Gold Price has bounced and is looking healthier
NZD has finally come back a bit
Oil price has fallen a nice amount

Hopefully these all stay around these levels. Just have to wait for AGM and hopefully more info on Didipio. Think i read somewhere there might be some cost overruns which they would offer more info on in June (or was it in June results).
Depending on how much these over runs are im more interested in didipio finishing either on time or earlier

[gonzo56]

In the Dompost this morning:


OceanaGold is further extending its Macraes pit-mine life in Otago out towards 2021 with a new drilling plan looking for extra gold reserves.

Mick Wilkes, chief executive of the Australia-headquartered gold miner, said OceanaGold was drilling around the Macraes open pit.
‘‘It looks like we might have another two years of open-pit-mine life there in addition to current reserves,’’ he said.
Investor relations officer Nova Young said the extra drilling programme potentially took the mine life from around 2019 to 2021, though she understood there might be extra consents needed from the local authority for the period after 2020.
The company was also drilling at its Blackwater, Reefton, mine below previously mined workings, with gold found in the first hole.
‘‘This gives us great encouragement that the ore body continues well below previous workings,’’ Wilkes said.
Despite maintenance of plant at Macraes and Reefton and unforeseen difficulties at the Frasers underground mine, near Macraes, OceanaGold was maintaining its guidance for the full 2012 calendar year at 230,000 to 250,000 ounces of gold at a cash extraction and production cost of between US$900 and US$980 (NZ$1167-$1271) an ounce.
This guidance is unchanged from December 2011. Gold prices were currently above US$1600 an ounce.


‘‘We’re expecting the second half to be better than the first half. That’s why we haven’t changed our guidance,’’ Young said.
The difficulties at Frasers included higher-than-expected ground movement due to the mining. Some of the areas had been closed but more recently a redevelopment had been completed ‘‘and we’ve seen a turnaround in underground operations’’.
Wilkes said the company recently took senior managers toview its Didipio project in the Philippines.
The gold-and-copper mine plant should be commissioned in the December quarter with production to start soon after. There were now about 1300 people working on the project with all mechanical equipment on site ready for assembly.
‘‘The project [cost] overall is a little higher than our first estimates and we will provide more details in the near future.’’
The best prospect the company had at the moment was an area known as Mogambos, only five kilometres north of the yet-to-becommissioned plant, which had surface expressions of high-grade copper and gold anomalies. ‘‘It’s 1km wide and 2km long and obviously we’re very keen to drill that.’’
There was a hiccup in terms of mining aspirations with a ‘‘fair bit’’ of exploration done, but drilling of prospects on hold due to a freeze on issuing permits across the Philippines at the moment, Wilkes said.
‘‘We haven’t been able to drill these prospects, not for want of trying, but we’re waiting on the government to renew the exploration permit for drilling.’’
The budget for New Zealand operations in 2012 was US$10 million while in the Philippines it was between US$5m and 10m.



(Originally printed in The Southland Times, written by Alan Wood)

[elZorro]

The AGM voting results are out. http://www.asx.com.au/asxpdf/20120615/pdf/426vrwwn6hg37q.pdf

This time, the Performance Share Rights Plan was overwhelmingly approved. Looks like some were even granted as the next vote. The ducks are lined up, I think I know what will be occuring at the next board meeting.;)

[mistymountain]

Been a while since posting but still monitoring and appreciate all comments. This is some worthwhile reading from today:

http://www.interest.co.nz/news/59971/major-gold-find-nelson-points-potentially-yield-worth-12-billion

[elZorro]

Been a while since posting but still monitoring and appreciate all comments. This is some worthwhile reading from today:

http://www.interest.co.nz/news/59971/major-gold-find-nelson-points-potentially-yield-worth-12-billion

Hi Mistymountain, I've been buying some OGC while it's down at this level. I see no reason for it to stay here. I just remembered this morning about the old trick of comparing goldie prices with ,well, the price of gold. Here's OGC in CAD against the US$gold price.

It's striking. For once, OGC is not drfting down against the gold price, it's holding fast here. So unless gold goes for a dive, OGC is a safer bet for goldbugs. It also means that the combined forces of all the management team and the employees of OGC have not raised an eyebrow amongst serious investors in 6 months of trading. Perhaps that's a great result, must be worth a few million shares to be divvied up amongst them for that stellar outcome..

So here we are, OGC has dropped back to where it looks a safer bet, a likely change at the top is indicated, and the chocks could be pulled away from this slumbering beast as Didipio gets ready to start on copper production towards the end of the year.

This is not a company I feel endeared to any longer, but it might make an interesting investment in the next few months.

[corran]

I recently sold most of my holdings in OGC. I have a gut feeling there's going to be delays and additional costs at Didipio and if that happens along with a falling gold price and a much tougher environment to raise capital I reckon the share price will get decimated.

Of course if they can get Didipo up and running on schedule OGC could well be a great investment. So I'm definitely keeping them on my watch list...

[elZorro]

I recently sold most of my holdings in OGC. I have a gut feeling there's going to be delays and additional costs at Didipio and if that happens along with a falling gold price and a much tougher environment to raise capital I reckon the share price will get decimated.

Of course if they can get Didipo up and running on schedule OGC could well be a great investment. So I'm definitely keeping them on my watch list...

All that is possible Corran, they had big problems like that before. When the price got clobbered last time (to a stupidly low price), it started a bull run on the recovery side that even I could spot and make a bit of profit from. But there doesn't appear to be many issues that could stop the Didipio startup. The locals they are using for the construction, many thousands of them, should be a relatively cheap labour force, and used to the environment there. Some of the other local initiatives like healthcare and cropping ideas look to be winning over any local oppostion to the mining. Soon the locals will be getting training in NZ to run the mine, if that isn't already happening.

Very soon, they won't need any capital, as they can take all the profits from Didipio's copper and gold until the capital cost is paid off. So all that can really stop an upward share price movement is a sharp decrease in the price of gold, in my opinion.

Of interest to me, with a small shareholding that I will add to if I see the right signs, is whether all this good impending news will be added to the reputation of mover and shaker Jake Klein, who has been in the company for only three years, but could well be the new Chairman soon.

[corran]

Hi El Z,

I hope you're right as I've still got a few OGC stashed away.

This statement from CEO Mike Wilkes at the beginning of June raised warning bells for me...


...we are seeing some cost pressure on construction of the process plant. The project overall is a little higher than our first estimates and we will provide more details in the near future.

I've been waiting for the details but haven't seen anything released yet. It doesn't sound good to me.

later in the same interview he said...

we also are in advanced talks with several highly rated banks for a revolving credit facility which will help us for our financing needs over the next couple of years. This should be finalised in the next few weeks.

There hasn't been an update yet. I recall there's a lot of debt that OGC needs to repay at the end of 2012 ($58m) and at the end of 2013 (approx $110m) thus I would think getting the credit facility sorted is pretty crucial.

Anyway good luck to you El Z... I was also lucky enough to jump on the OGC bull from early 2009 and it was a great run, it'd be nice to see that again but I think there's a lot of head winds they need to get past first...

[elZorro]

Hi El Z,

I hope you're right as I've still got a few OGC stashed away.

This statement from CEO Mike Wilkes at the beginning of June raised warning bells for me...


...we are seeing some cost pressure on construction of the process plant. The project overall is a little higher than our first estimates and we will provide more details in the near future.

I've been waiting for the details but haven't seen anything released yet. It doesn't sound good to me.

later in the same interview he said...

we also are in advanced talks with several highly rated banks for a revolving credit facility which will help us for our financing needs over the next couple of years. This should be finalised in the next few weeks.

There hasn't been an update yet. I recall there's a lot of debt that OGC needs to repay at the end of 2012 ($58m) and at the end of 2013 (approx $110m) thus I would think getting the credit facility sorted is pretty crucial.

Anyway good luck to you El Z... I was also lucky enough to jump on the OGC bull from early 2009 and it was a great run, it'd be nice to see that again but I think there's a lot of head winds they need to get past first...

Thanks for the heads up Corran, the last time they needed cash they made all sorts of noises about JVs etc, and hid the issue for a while, letting the shareprice move up with the gold price. Then whammo, massive dilution with more shares being sold left right and centre. So do they have a revolving credit lined up with a bank; why would they need it for two years if the Didipio mine is going to be so profitable; and when and how are they proposing to pick up the NZ output again? A lot rests on the gold price, no guarantees it'll go for another run, it might stay where it is or even drift back.

Apparently Jake Klein is good at organising funding, he does have good contacts.

[elZorro]

This latest news release has the hallmarks of some of the other Klein mining operations, where initial refining of the ore is done on site, and then the concentrate is sold to another party. This will save on smelter costs, and gets everything up and running fast. They'll even drop by and pick up the ore from Didipio, another hassle gone. Not much interest being shown on the ASX, but there's nothing much stopping Didipio now.


http://www.asx.com.au/asxpdf/20120710/pdf/427b956n3c04n9.pdf

Trafigura is run by a billionaire from Switzerland. (http://worldfinancialpost.com/trafigura-in-south-sudan-oil-row.html)


Galena Asset Management, based in London and FSA registered, is the subsidiary through which Trafigura has established and manages a fund management business. Lord Strathclyde, the leader of the Conservative Party in the House of Lords, is a non-executive director on the board, although he has stated his intent to stand down from this post.[52]

Weird coincidence, Galena has been/is a big shareholder in Glass Earth.

Powerful traders.. (http://www.reuters.com/article/2011/10/28/us-commodities-houses-idUSTRE79R4S320111028)

Singapore based now, 5% tax, not too bad is it? (http://www.ft.com/intl/cms/s/0/63df6cce-a409-11e1-84b1-00144feabdc0.html#axzz20CsiupEC)

[elZorro]

The funding for a credit facility has been approved by shareholders, it's for US$220mill for 3 years with a group of mining banks. Jake Klein worked for Macquarie Bank previously, so this could be one of the banks involved.

http://www.macquarie.com.au/mgl/au/corporations/financing/metals

More connections here:
(http://www.nzpam.govt.nz/cms/news/2006/8-june-2006-grd-sells-50-interest-in-oceanagold/)
The price to establish Didipio went up 19%, about 1/5 of a year's production. 1600 construction workers on the job at the moment.

[adamcz]

I definately wasnt expecting such a big jump in costs. Bit disappointed about how much it has overrun I guess there is a bit of a clawback with the tax breaks so not quite as bad as it sounds.

[elZorro]

I definately wasnt expecting such a big jump in costs. Bit disappointed about how much it has overrun I guess there is a bit of a clawback with the tax breaks so not quite as bad as it sounds.

This from the NBR, the comment afterwards is interesting.

http://www.nbr.co.nz/article/oceanagold-says-didipio-costs-blow-out-us35m-wb-123674

[geezy]

The SP is dropping like a big thud... El Zorro, what are your thoughts? Surely it all cant be attributed to the cost overblown only?

[elZorro]

The SP is dropping like a big thud... El Zorro, what are your thoughts? Surely it all cant be attributed to the cost overblown only?

I think the price has ended up near the TSX price from last night geezy. They are having a tough time over there too. Money is coming out of the markets and into bonds, maybe gold as a safe haven later, if it'll get moving.

OGC slavishly following the gold price most days, if it drifts lower than the gold trend then that is a worry. But most of us are a bit disappointed with cost overruns at Didipio, NZ output predicted to only stay where it is for 2 years, and a contract for concentrate offtake might or might not be a good deal.

At least we're in such good shape the banks are giving OGC a revolving credit facility. Er, wait a minute, if NZ's annual output had been 50,000oz higher for the last 2 years, we'd have an extra NZ$200mill in the bank.

[elZorro]

A very strange spike in OGC's price late today. The POG has dropped, OGC went up around 3.10pm in Aussie. I think there will be some news out tomorrow, or we'll see it on the TSX.

[elZorro]

OGC has had a good ramp in price recently, even the news about the need to arrange finance from a cluster of banks hasn't dented it yet. At least they didn't dilute everyone's holdings this time. But here's a company with three established goldmines in NZ, the price of gold hasn't dropped away too much from a dollar record figure, and they're still in debt and making poor returns. Didipio will need to perform.

http://www.stuff.co.nz/business/industries/7530452/Mining-firm-agrees-to-hedge-gold-price

Here's some PR from the news release, sounds OK. Of course even if NZ mines produce 250,000 oz this year, it's 50,000oz less than what they have done in the past. No mention about how that will be picked up.

http://www.asx.com.au/asxpdf/20120823/pdf/428683ml69k8ww.pdf

Trafigura has a contract for 5 years of concentrate production at Didipio, that's a long time. But by all accounts, cashflow should be good in 2013, as long as the gold price holds up. That's the reason for the bank funds.

[gonzo56]

Hey elZorro, do you still hold? I'm back to cost again today. Exciting ;)

Didipio can't be far off now...

[elZorro]

Hey elZorro, do you still hold? I'm back to cost again today. Exciting ;)

Didipio can't be far off now...

No, I sold mine in the dip you see on the chart a month or two ago. This is my brilliant timing at work again. I'm consoling myself that GEL should give a better percentage increase when it gets going, as they are now producers too. But as far as a safe bet, OGC would take some beating at this point.

[gonzo56]

Oh ok, ouch. Good luck with GEL. Btw, my glory didn't last long, back to $3.50 :mellow:

[adamcz]

I'm bak to about even finally as well... Picked up a few more recently to bring my average down a bit more. Things are looking pretty good for OCG now. Didipio is getting pretty close to commissioning and Price of gold keeps rising. Will be interested to see what the Denver presentation brings news wise. Am expecting that construction will b complete in the next month (although I'm always the optimist). Sounds like some interesting things are happening at black water as well

Market awaits results from deep Blackwater hole
Ross Louthean — 10 September 2012
*
The New Zealand gold sector and market investors are awaiting details on a deep drill hole at Blackwater near Reefton – reputed to be the deepest drill hole for minerals in the country.
OceanaGold Corporation (ASX, NZX & TSX: OGC) has been undertaking drilling below workings on the historic Blackwater mine at Waiuta, 15 kilometres from the Reefton township.
At last month’s AusIMM NZ Minerals Conference in Rotorua, OceanaGold chief executive, Mick Wilkes, confirmed that the deepest hole into Blackwater – reputedly more than 1,300 metres – had just hit the reef at depth.
The company is viewing re-opening Blackwater as the company’s second modern mine in the Reefton goldfield with operations now beginning to mature at the Globe-Progress open cut mine.
Longevity for the Globe-Progress operation could come from expansion of the existing open cut or from scope to go underground on a target known as the Globe Deeps.
OceanaGold, and its corporate predecessors have long held Blackwater as a prime target and several years ago put a new headframe over the old Prohibition shaft at Blackwater only to find that the shaft at depth was not as sound as consultants had indicated.
Blackwater, which operated from 1907 to 1951, was one of New Zealand’s richest gold producers and was mined to a depth of about 800m to produce 740,000 ounces at a head grade of about 14 grams/tonne gold.
One of the blueprints OceanaGold has for Blackwater is to develop a decline access near the Snowy River to get access into reef targets below the old Blackwater workings.
One deep drill hole in April hit a 1m section (true width 0.5m) of the reef for an assay of 23.3 g/t gold.

[elZorro]

Let's just say I had other investments that were more important. Wish I could have done both.

Here's someone else with a bigger decision on OGC: Baker Steel are still backing out of the share.

http://www.asx.com.au/asxpdf/20120913/pdf/428p5dq8b94csr.pdf

[adamcz]

Maybe they shoulda stayed in! Onward and upward I say! :)

[adamcz]

So this would mean OGC would basically sell off part of the Phillipines operation to the public? or move to a quadruple listing?

THE LOCAL UNIT of Australian miner OceanaGold Corp., which is developing a gold project in Nueva Vizcaya, plans to list at the Philippine Stock Exchange (PSE) once it starts commercial operations, an official said yesterday.

OceanaGold (Philippines), Inc. Chairman Jose P. Leviste, Jr. told reporters on the sidelines of the Mining Philippines 2012 Conference and Exhibition at Sofitel Philippine Plaza Manila that the firm hopes to make its stocks “available on the Philippine Stock Exchange soon.”
“As a company registered with the BoI (Board of Investments), we want to comply with the Investment Code which encourages all BoI-registered firms to list in the PSE,” Mr. Leviste added.
OceanaGold is already listed on the Australia, Toronto and New Zealand stock exchanges.
Rule 8 of the Public Participation Requirement under Executive Order No. 226, or the Omnibus Investments Code of 1987, states: “A registered enterprise, unless otherwise exempted, shall, at anytime within 10 years from date of registration, be required by the Board to offer for sale to the public 10% or more of its total subscribed capital stock, voting, non-voting and any increase thereof.”
The mining firm is looking to begin commercial production at its Didipio project in the first quarter of 2013.
Mr. Leviste maintained that the venture’s development remains on track. “We’ve secured our funding requirements and construction is progressing well. We will be commissioning by the start of next year,” he said.
Details of the listing, he added, will be ironed out once operations are under way. “Of course, the start of the operation has to come first,” he stressed.
OceanaGold’s Didipio venture, located in Nueva Vizcaya, is currently in the latter part of its construction phase.
The firm expects the mine to produce 100,000 ounces of gold and 14,000 metric tons of copper per year over its 16-year mine life.
In February, Mick Wilkes, OceanaGold managing director and chief executive, had said in an interview that the firm plans to spend $10 million more on explorations in the Philippines, with 80% of this to go to the expansion of the Didipio project. The remaining 20% will go to the exploration of some 22 mining tenements nationwide.
According to its Web site, OceanaGold had spent $65.6 million thus far as of end-2011 for the development of the venture.
In July, the firm also announced it had already signed an initial offtake agreement with Trafigura Group, an Amsterdam-based international commodity trader, for the sale of all copper and gold concentrate produced from the Didipio mine. The agreement will be for a minimum of five years from the commencement of commercial operations at the site.
OceanaGold’s comprehensive income fell 32.6% to $41.3 million last year from $61.3 million in 2010. -- Bettina Faye V. Roc

[adamcz]

Thought there might have been an announcement today. Sounds like an interesting company to buy into if their el dorado comes off:

OceanaGold Corporation Takes Placement in Pacific Rim Mining Corp. at 25% Market Premium
Marketwire - Canada
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 25, 2012) - Pacific Rim Mining Corp. ("Pacific Rim" or the "Company") (TSX:PMU)(OTCQX:PFRMF) and OceanaGold Corporation ("OceanaGold") are pleased to announce Pacific Rim's intent to complete a non-brokered private placement financing whereby OceanaGold will purchase 42,150,000 common shares of Pacific Rim at CAD $0.10 per share, for total proceeds of CAD $4,215,000. Closing of the financing is expected to take place on or before October 3, 2012 and is subject to receipt of all required regulatory approvals.
Highlights:
-- Purchase price represents a 25% premium to Pacific Rim's 20-day volume weighted average closing price on the Toronto Stock Exchange -- Financing at a premium to a single investor minimizes dilution to Pacific Rim shareholders and provides "big brother" shareholder with synergistic exploration and management philosophy -- Funds raised will move El Dorado arbitration forward -- High quality of El Dorado gold project underscores OceanaGold's investment
"This investment is a win-win for both companies and we are thrilled to have the backing of OceanaGold," states Tom Shrake, President and CEO of Pacific Rim. "OceanaGold is a very solid mining group with the proven ability to efficiently build and operate mines in challenging jurisdictions, and we have no doubt that their expertise will be a valuable asset in support of our endeavors. Importantly, this strategic financing enables Pacific Rim to move forward with the final stage of the El Dorado arbitration case. We remain optimistic the Government of El Salvador will see the economic benefits of our precedent-setting environmental design for the El Dorado mine and we can work together to develop a Salvadoran mining industry that places the highest priority on environmental protection and social responsibility at a time when jobs and tax revenues are so critically needed."
Mick Wilkes, Managing Director and CEO of OceanaGold Corporation commented, "We are pleased to make this investment in Pacific Rim Mining which gives OceanaGold exposure to the high quality El Dorado gold-silver project. We are particularly excited about the exploration potential in the district and view this equity placement akin to an exploration investment in an advanced, high-grade gold-silver project. We appreciate the quality of the Pacific Rim Board and management team who operate to the same high standard of environmental management and social responsibility as our own, and we look forward to seeing the El Dorado project advanced."
OceanaGold currently does not own or control any shares of Pacific Rim, either alone or together with any joint actors. Upon closing of the transaction, OceanaGold will own and control approximately 19.98% of Pacific Rim's issued and outstanding share capital. The acquisition of the shares is for investment purposes only. The shares acquired by OceanaGold through this financing will be subject to a four-month trading restriction beginning on the day of issuance. If, following this hold period and prior to 24 months from the date of closing of the private placement, OceanaGold wishes to sell any shares of Pacific Rim, Pacific Rim has the right to identify a qualified purchaser for such shares. Pacific Rim has granted OceanaGold the right to maintain its share ownership on a percentage basis, and to increase its ownership to a maximum of 25% of Pacific Rim's issued and outstanding share capital should future financings be undertaken within 24 months of the date of closing of the private placement, subject to regulatory and shareholder approval. The proceeds of the financing will be used for legal expenditures, exploration work, and for general corporate purposes.
The shares offered in this financing are not currently qualified by prospectus or registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the laws of any state, and may not be offered or sold in the United States, or to, or for the account or benefit of United States persons (as defined in Regulation S under the Securities Act) or persons in the United States absent registration or an applicable exemption from the registration requirements. The securities are subject to resale restrictions under applicable securities laws.

[troyvdh]

...gee folk are really making pigs of themselves today.....nigh on historic highs......to.

[gonzo56]

...gee folk are really making pigs of themselves today.....nigh on historic highs......to.

Well, here's a good report that puts it into perspective: http://www.stuff.co.nz/business/industries/7765813/Broker-says-OceanaGold-shares-still-undervalued

It shows that Forsyth Barr values OGC at $5.18, and that Didipio will transform OceanaGold from a high-cost producer at about US$970 an ounce to one of the lowest-cost producers, below US$600 an ounce eventually, in 2014.

Ore is currently being mined at Didipio and processing is expected to start in November.

[gonzo56]

I have never seen OGC so strong. I've been watching it for the last two years, and the SP usually falters at the slightest downward shift in the Gold price. Not anymore. Keep an eye out for a strong push upwards once this current Gold price correction is over.

[gonzo56]

The real action should start after the US election!

http://www.dillongage.com/PR-GoldandElections/default.aspx

http://beforeitsnews.com/gold-and-precious-metals/2012/10/are-gold-and-silver-capped-until-after-u-s-election-2453012.html

[adamcz]

Could be an interesting week price wise. Was expecting the SP in Canada to drop on friday with the $20 drop in POG but it held up well.
Also worthwhile to note that the December convertible notes might end up being converted rather than being repaid would. There is also a conference coming up on Wednesday. Not sure if we will get any further information from this with the results due out on the 30th.

[elZorro]

Could be an interesting week price wise. Was expecting the SP in Canada to drop on friday with the $20 drop in POG but it held up well.
Also worthwhile to note that the December convertible notes might end up being converted rather than being repaid would. There is also a conference coming up on Wednesday. Not sure if we will get any further information from this with the results due out on the 30th.

The Blackwater press release seemed to dampen the OGC market, as they had to drill a long way below the existing deposit before finding a seam containing gold. NZResources report implies they have to think carefully about costs, although quite a bit of the gold separates by gravity, which helps.


More positive deep drilling at BlackwaterRoss Louthean — 26 October 2012
The second round of deep drilling under the workings of the Blackwater mine at Waiuta in the Reefton goldfield has given OceanaGold Corporation (ASX, NZX & TSX: OGC) a firmer reason to re-establish mining at this abandoned settlement.
The drilling was below workings on the historic Birthday Reef which was one of the great historic gold producers on the South Island.
The company said yesterday that during the third quarter it successfully intersected the Birthday Reef on two occasions, about 680 metres vertically below previously mined workings.
Parent hole, WA22C, intersected 0.61 metres (estimated true width of 0.5m) grading 15.65 grams per tonne gold and daughter hole WA22D hit 1.13m (estimated true width 1m) at 85.2 g/t gold.
WA22C was drilled from surface to 1,632m downhole, and was considered the deepest drill hole undertaken for gold in New Zealand.
OceanaGold said both results were within the normal range of historically mined widths and grades and that, historically, each vertical metre of the reef corresponded with about 1,000 ounce gold resource.
The Blackwater mine was the largest historical producer in the Reefton goldfield with 740,000 oz recorded from 1.6 million tonnes, at a recovered grade of 14.6 g/t Au.
The Birthday Reef is a simple, relatively planar, steeply-dipping quartz vein striking NNE for about 1 km. The lode is remarkably persistent both along strike, and down-plunge, with the average widths and grades remaining consistent with depth.
The next drill hole (WA24) is designed to test the northern strike extent to the Birthday Reef beneath the workings. This hole is now underway and results are expected in the second quarter of 2013.
OceanaGold managing director Mick Wilkes was pleased with the continued success of drilling at Blackwater.
“To date, we have uncovered remarkable continuity in the Birthday Reef which gives us strong confidence of the continuation of the orebody below previously mined workings.
“Our project development team is now starting to assemble data in preparation for technical study work in the first half of 2013 while we also await results from the current hole testing the northern extent of the orebody.”
Waiuta is 37 road km south of Reefton and is 15 km from OceanaGold’s Globe-Progress mine.
A long-held blueprint for the company involves developing a decline mine near the Snowy River that would provide a lower profile access to the depths of the Blackwater mine.
Previous metallurgical studies highlighted optical sorting as a probable pre-treatment mechanism opening up the possibility of mechanised mining of this deposit.
Metallurgical test work has indicated recoveries in the 95% range with 70% of the gold reporting to a gravity concentrate.
OceanaGold may target production from Blackwater of between 50,000-60,000 oz of gold per annum.

[elZorro]

With gold expected to move up from here, OGC is trending back, but this is strange considering Didipio must nearly be online.

http://www.mining-technology.com/projects/didipio-project/

Yes, I thought so, first milling expected sometime in November 2012.

http://www.oceanagold.com/our-business/philippines/didipio-project/

Maybe the market is worried about the overhang of the options that are due in December I think. Plenty of drawdown facilities to sort that out in the meantime.

[gonzo56]

With gold expected to move up from here, OGC is trending back, but this is strange considering Didipio must nearly be online.

http://www.mining-technology.com/projects/didipio-project/

Yes, I thought so, first milling expected sometime in November 2012.

http://www.oceanagold.com/our-business/philippines/didipio-project/

Maybe the market is worried about the overhang of the options that are due in December I think. Plenty of drawdown facilities to sort that out in the meantime.

It might be the technical traders pulling out elZ. Thanks to Hoop I studied up on the double top pattern and I can now see an Eve and Adam Double Top on OGC: See link [ http://thepatternsite.com/eadt.html ]

This will be a self fulfilling prophecy, everyone else that sees this will also pull out, which will make more pull out and so on... IF the SP goes below $4.00 then keep a look out for $3.64 which will probably be the resistance. If it doesn't go below $4.00 then don't worry about it, as the DT would not have been confirmed. :)

...What do you mean when you say an overhang of the options?

[elZorro]

It might be the technical traders pulling out elZ. Thanks to Hoop I studied up on the double top pattern and I can now see an Eve and Adam Double Top on OGC: See link [ http://thepatternsite.com/eadt.html ]

This will be a self fulfilling prophecy, everyone else that sees this will also pull out, which will make more pull out and so on... IF the SP goes below $4.00 then keep a look out for $3.64 which will probably be the resistance. If it doesn't go below $4.00 then don't worry about it, as the DT would not have been confirmed. :)

...What do you mean when you say an overhang of the options?

OK, not options, my mistake. They are called convertible notes, and I think it means that OGC has to shell out about A$60mill to holders in December 2012, unless the shareprice goes up a bit more and the holders buy equivalent shares at a fixed price instead. More convertible notes are due in 2013. That's why they organised all the bank overdraft. But it also means they had a strong earnings case to put to the consortium.

[gonzo56]

Ok. Well for what ever reason, whether it be the convertible notes, the Gold price or the technical traders, the double top has been confirmed. This means it's not looking too good for the short-term. Look out for a bottom around $3.64...

[QOH]

I got back in this morning, happy to take a punt again.

[gonzo56]

I got back in this morning, happy to take a punt again.

Update: Well, it isn't below $4 now, which was the key for the DT formation. The best bet is to wait for the end of day price today and Monday, I got a bit ahead of myself ; )

This could be a consolidation period because the space between tops isn't more than a month: http://www.trending123.com/patterns/double_top.html

That's why it's best to wait to see if it closes below the confirmation point. i.e $4.00. But good luck to you!

Currently OGC.ASX is right on the confirmation point: $3.17, though it looks like it has a bit of fight left in it ; )

[adamcz]

Seemed to be while there in the last couple weeks where the Canadian price was following the nz/oz movements. Now we appear to be back the other way around. I wouldn't be surprised if bakers was continuing to sell down and driving the price lower, and then in a months time finding that they have taken another significant holding. Can't see why they would have wanted to sell down with didipio commissioning just around the corner

[gonzo56]

What does today's announcement mean? Is this like dilution or something different?

https://nzx.com/companies/OGC/announcements/230639

[elZorro]

What does today's announcement mean? Is this like dilution or something different?

https://nzx.com/companies/OGC/announcements/230639

Yes, it means OGC has pulled a swifty again, pretended it was doing one thing and then 'changed their minds'. It was a big overdraft facility, and was turned into 30 million relatively cheap new shares for the banks. This does however set in place dilution of 10-11% for current holders, and values the NZ shares at about NZ$3.80 or so, unless the market is feeling generous. Once again Baker Steel got out first.

[adamcz]

Havent checked back at the announcement but the banks are underwriting at CAD$3.11. There is a book build process so isnt there a chance the final price might be higher?

Don't really understand what the need the money for, I dont recall seeing any concerning amounts of debt on the balance sheet on previous quarter reports. That overdraft that they organised should have been sufficient until the $ from Didipio started flowing. Unless there is something else in the pipeline

[gonzo56]

Sorry to the folks that suffered this drop.

I thought I'd re-post an interesting post I saw on Hotcopper:


I remember speaking to the management a couple of years ago about the debt levels of the company and their ability to repay it. They had this crazy idea that they could from the cash flow from the NZ operations, I had a nice chuckle. Cash flow from NZ is negative and the creditors want their money back and the company is DESPERATE.

They're selling shares to brokers (like Macquarie) for $3 and they will then on- sell these shares to clientele. Who will obviously dump the shares when they realise they've been sold a lie. I'm dying to hear Macquarie's sale pitch on this to gullible investors.

Key Points in Presentation:
"The views, opinions and advice provided in this presentation reflect those of the individual presenters only. No representation, or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusion contained in this presentation."

At this point I'd stop reading, but I was interested to see what lies were contained within.

"Increased production and decreasing cash cost profile"
"Increasing cash flows from four operating mines"

LMAO... did they not read their own financial summary posted on slide 31?

Production decreasing ~ -20%
Cash costs up ~ +25%
Cash flow decreasing -25%
Operating Profit crashing ~ -80%
Net Profit in the NEGATIVE in an increasing gold price environment.

Ref: http://hotcopper.co.nz/post_single.asp?fid=1&tid=1898914&msgid=11076608

[elZorro]

From NZResources:

Big new raising lowers OceanaGold’s share price
Simon Hartley — 14 December 2012
Shares in New Zealand’s premier gold miner OceanaGold Corporation (ASX, NZX & TSX: OGC) have dropped more than 15% during the past three weeks since raising $114 million in Canada -- having sold 30 M shares to a syndicate of underwriters.
Commissioning of Oceana's Didipio gold and copper mine on the northern Philippine island of Luzon was unscathed by typhoon Bopha earlier this week after sweeping through the main southern island of Mindanao, killing more than 700 people, with a further 900 reported missing.
OceanaGold announced the Canadian capital raising on December 4, and its shares subsequently plunged 16% from $4.10 to trade around $3.45-$3.50 yesterday.
From a year-low of $2.27 in mid-May, OceanaGold shares hit a high of $4.50 late-in October, before the start of the slump in early-December.
At the time of the Canadian capital raising, Craigs Investment Partners broker Peter McIntyre had cautioned about the likelihood of a share dilution and loss of value with the issuance of 30 M shares about to go to market.
The securities will be offered in each province of Canada by the purchasing syndicate, with the exception of Quebec, in a short form prospectus and possibly in Australia, but on a private placement basis.
The company said the Canadian cash raised would be used to reduce outstanding debt and provide balance sheet and operating flexibility.
McIntyre said yesterday the share dilution, softening of the global gold price, a weak US dollar, Federal Reserve fiscal stimulus and profit taking had all combined to undermine the share price.
Gold prices have waned in the face of some “relatively good news” in recent days on the fiscal cliff being faced by the US on January 1, when taxes are legislated to go up and public sector spending is to be cut.
“Oceana stock has captured attention, not just investors, but globally as its now one of the largest producers in Australasia,'' McIntyre said.
However, that popularity and a rising price meant some investors during the past year would be taking the opportunity to take their profit from the rising value.
OceanaGold has forecast increasing cash flows from its four operating mines - two at Macraes in East Otago; at Reefton on the West Coast; and Didipio in the northern Philippines, the latter which being commissioned and due to produce concentrate by next month.
*Simon Hartley is senior business reporter for the Otago Daily Times.


The direction of OGC's price now depends on the gold price, and early results from the new Didipio mine.

[gonzo56]

The direction of OGC's price now depends on the gold price, and early results from the new Didipio mine.

Check this out "OceanaGold to lift gold output as Didipio comes on stream": http://www.sharechat.co.nz/article/c55b56e6/oceanagold-to-lift-gold-output-as-didipio-comes-on-stream.html

[elZorro]

Check this out "OceanaGold to lift gold output as Didipio comes on stream": http://www.sharechat.co.nz/article/c55b56e6/oceanagold-to-lift-gold-output-as-didipio-comes-on-stream.html

That's fair enough, I assume the new cash position could also be used to crank things up in NZ, if the gold price recovers in 2013. Could be more dilution to come though.


OceanaGold completes major raising
21 December 2012 NZ Resources.

Gold miner OceanaGold Corporation (ASX, NZX & TSX: OGC) which is now commissioning its first mine outside of New Zealand has completed its major financing deal.

The company confirmed it had completed the announced $C93 million ($NZ112.9 M) financing that involved issuing 30 M shares at $C3.11/share ($NZ3.76).

The offering was underwritten by a syndicate of underwriters led by Citigroup Global Markets Canada Inc. and Macquarie Capital Markets Canada Ltd, and including lead underwriters Cormark Securities Inc., GMP Securities L.P. and BMO Capital Markets.

The underwriters have been granted an option to purchase up to an additional 15% of the number of securities, at the common share offering price or CDI offering price on the same terms and conditions as the offering.

The over-allotment Option is exercisable in whole or in part at any time within 30 days of the closing at the sole discretion of the lead underwriters.

OceanaGold reiterated that it intends to use the net proceeds from the offering to reduce outstanding debt and to provide balance sheet and operating flexibility.



Jake KleinBCom (Hons)
ACA
Executive Chairman


Formerly President and CEO of Sino Gold Mining Limited
Previously employed at Macquarie Bank and PricewaterhouseCoopers
Non executive director of Lynas Corporation Limited and OceanaGold Corporation
Previous President of the NSW Branch of the Australia China Business Council and served on the NSW Asia Business Council

[elZorro]

A quarterly report is out, annual gold production in NZ is down again - for the third year in a row. This quarter is up though, compared to Q3. But there has since been a wall collapse at Frasers and they are tidying it up. Didipio has started to send some gold/copper concentrate away, but an issue with the new tailings dam has stopped further production for a few weeks.

http://tmx.quotemedia.com/article.php?newsid=57373959&qm_symbol=OGC

[adamcz]

Pretty quiet thread these days.... has everyone else sold out??

I thought it was a solid result. Amazing what some good grades can do for what should be a reasonably profitable quarter. Cash costs were back down to $638 (thats $300 below what the average cost for the year is!) If they can continue mining some decent grades the NZ operations might start making some good money.
Not so concerned with didipio being down for a few weeks, at least its started to produce something so will start seeing some contributions in the March quarter hopefully things continue to ramp up faster than expected so the down time will have less of an effect.

[elZorro]

Pretty quiet thread these days.... has everyone else sold out??

I thought it was a solid result. Amazing what some good grades can do for what should be a reasonably profitable quarter. Cash costs were back down to $638 (thats $300 below what the average cost for the year is!) If they can continue mining some decent grades the NZ operations might start making some good money.
Not so concerned with didipio being down for a few weeks, at least its started to produce something so will start seeing some contributions in the March quarter hopefully things continue to ramp up faster than expected so the down time will have less of an effect.

Hi Adamcz, I'm keeping an eye on the share with some that I bought on the ASX. Did you see that AMP is no longer a significant shareholder after selling over a million shares in the last week or so. The day they sold, most of the volume was theirs. AMP has a lot of different companies and may have booked good gains from the earlier ramp up. But it would appear that they don't see too much scope for improvement in the near term.

Maybe this has something to do with it, less funds to play with.

(http://www.stuff.co.nz/business/money/8215646/AMP-urges-dropping-of-KiwiSaver-first-home-withdrawals)
Yes, the cost of gold recovery was a lot better in the quarter. Annual gold output in NZ is still dropping though. By quite big percentages. Are they stripping back overburden more on average, and waiting for the gold price to increase? These are the sorts of things that could be occurring.

[QOH]

I've found this a good stock to trade, been in and a few times lately, out at moment and think I'll stay out unless the price drops again.

[gonzo56]

@adamcz, I sold out before the share dilution; I wanted the cash for something else. Thank god I did. It was all going so well before that. Though the recent drops seem to be linked to the Gold price.

[elZorro]

From NZResources today, a report with plenty of typos in it, let's hope the numbers are correct:


OceanaGold chief sees 2013 as a transformational year
Ross Louthean — 15 February 2013 New Zealand’s premier gold miner OceanaGold Corporation (ASX, NZX & TSX: OGC) achieved a net profit of $US20.7 million ($NZ24.42 M) in calendar 2012 and sees the capital spent on commissioning the Didipio gold-copper mine in the Philippines as a gateway to a substantial lift in production.
The company’s financial results, released yesterday, showed the company also finished the year with cash funds of $US96.5 M ($NZ113.8 M) and with net current liabilities of $US13.6 M ($NZ16.08 M) – including a liability of the convertible bonds repayment due at the end of this year.
At the end of December the company had non-current assets were $US185.8 M compared to $US226.5 M at the end of 2011. Current assets were decreased by $US40.7 M, mainly due to decreased cash holdings with construction of Didipio.
Non-current assets increased to $US845.9 M, reflecting the construction and operating costs for Didipio.
Current liabilities were $US199.4 M at year end compared to $US123.6 M at the end of 2011, mainly due to reclassification to current from non-current of $US111.8 M of convertible notes maturing in December this year, partly offset by repayment of $US56.9 M of a convertible note that matured in December 2012.
Yesterday’s report also covered OceanaGold’s earlier reported 2012 full year production results, pointing out that cash costs in the December quarter of $US638/ounce ($NZ752/oz) represented a 41% decrease on third quarter costs – a factor attributed to higher grades, better recover and lower royalties. For calendar 2012 the cash cost averaged $US940/oz ($NZ1,132/oz).
The December quarter also reflected a sharp financial improvement to the high cost September quarter on NZ operations, which incurred an operating loss for the three months.
The Macraes operation produced 169,609 oz in 2012 while Reefton produced 63,300 oz.
First copper-gold concentrate was produced at Didipio in December and first shipment of concentrate trucked to port in January.
In December, OceanaGold completed a “Bought Deal” equity raising for gross proceeds of C$93.3 M ($NZ109.9 M) with net proceeds to be used to reduce outstanding debt and provide balance sheet and operating flexibility.
OceanaGold spent $US14.9 M ($NZ17.57 M) on exploration in 2012 with the majority of this expenditure being in NZ. The company continued to drill out the Blackwater deposit in the Reefton goldfield with favourable results consistent with the range of grade and width in the old workings.
The final drill hole of the programme is currently underway and results of this drill are expected in the first half of 2013.
OceanaGold managing director Mick Wilkes said: “We are very pleased with our performance in 2012. New Zealand operations had a strong fourth quarter as planned and Didipio continued to achieve each key milestone on schedule including the start of commissioning in October and the completion of construction in December.
“We’ve continued that momentum into 2013, which is a transformational year for our company as we ramp-up commissioning at Didpio and transition into steady-state operations.
“The focus of commissioning activities is now on increasing copper and gold recoveries and ramp-up of the plant throughput. We are on track to deliver on expectations to mill 2.5 Mtpa at Didipio in 2013.”
Attachments

http://www.sharetrader.co.nz/icons/pdf.jpg
OceanaGold 2012 Results. (Adobe PDF File) Download (2018KB) (http://www.sharetrader.co.nz/attachments/4189/OGC%20FY12%20MDA%20FINAL.pdf)

[GR8DAY]

.......a quick read and things are sounding very good as I would have expected........2013 may well shape up as their best year yet. HOLDER

[mistymountain]

With the recent Gold Price downtrend this article gives some insights and big picture overview giving reassurance to those invested in OGC.

http://wallstreetpit.com/98855-gold-price-extreme/

[Dej]

With the recent Gold Price downtrend this article gives some insights and big picture overview giving reassurance to those invested in OGC.

http://wallstreetpit.com/98855-gold-price-extreme/

Thanks mistymountain - gives an insights and some reassurance into the recent gold price plundge.

[Dej]

I think psychologists should do a 6-12 month stint with a trader to see the whole range of human emotions at play in the market, it really amazes me some times!



Is that you putting your name forward? ;)

[GR8DAY]

......your guess as good as mine or anyone's Moose?? The Death Cross is more often than not followed by a solid rebound.........I think the clever ones amongst us (not me) will be taking a punt and buying in at this low for today. Im now sitting on a paper loss that is costing me a new colour sounder for the boat........bugger!........back to using my landmarks!! As you well know OGC is a stock that can add 50c (or subtract as we have just seen) in a day or two. How big are ya testicles??

[GR8DAY]

........Im presuming your male Moose?? (apologlies madam if Im wrong)

[GR8DAY]

......yep good call (just to watch) but a fall like today is often decision time also....if your'e a trader. im pretty sure I wud be buying today if it wasnt for the fact Im already in.......patience is a vertue in this game and Im sadly lacking in that department. I know one thing for sure (well almost)...the SP WILL rebound, just a matter of when.....cud be as early as tomorrow.......?? The colour sounder will just have to wait for a while.

[Huskeez]

......yep good call (just to watch) but a fall like today is often decision time also....if your'e a trader. im pretty sure I wud be buying today if it wasnt for the fact Im already in.......patience is a vertue in this game and Im sadly lacking in that department. I know one thing for sure (well almost)...the SP WILL rebound, just a matter of when.....cud be as early as tomorrow.......?? The colour sounder will just have to wait for a while.Definetly keeping a close eye on this, very much so oversold, with the gold price expected to hit $2000 USD by the years end. A boune is sure to follow soon xx love Huskeez

[chippy52]

The next line of support is $2-60, then down to $2-31.

[Huskeez]

Wow, Thor's hammer being taken to the SP today!!!Sweet mother of god

[GR8DAY]

.........no point selling now, gotta be seen as a sweet buying opportunity.

[GR8DAY]

......yep she's a scary stock to own tis OGC. Blink for too long and it could be back up around $3.50........or back down around $2.50 If the GP keeps firming as it appears to be doing now, it will almost definitely be the former..........

[geezy]

Yes, the market is a real Jekyll and Hyde with this one. Great if you can play the swings, not so much if you can't! The downtrend remains solidly in place though, some very unhappy investors out there right now I'm guessing!

Sold out and looking to get back in , with the update released yesterday ! it shouldnt be good news!

[GR8DAY]

......then again if gold rises tomorrow they will hit $3.20......and if it keeps rising towards $1800 plus they will be $4.50 again. Lets see who's right and who's wrong. HOLDER (for now!)

[elZorro]

I'm going with downward for the short-term.

Does that mean you think Gold's going down too Moosie? Here you can see the normal link between OGC's TSX price and US$gold. It follows quite well unless there is unusual sentiment in the share. As Didipio commissioning news and the big bank overdraft was set up a few months back, OGC raced above the gold price. And then management saw their chance. The conversion to extra shares for the investment banks diluted the rest of us, bringing the SP back to following the gold price. Based on that, and assuming the board have no other smart ideas about how to dilute shareholders further, the Didipio sentiment and cashflow should again push OGC up above the gold price (see the 6 month chart for best analysis). Just watch the gold price though.

[adamcz]

Found this article about the trucks.


Oceana's copper-gold shipment barred in the Philippines tax row
BY:PAUL GARVEY From: The Australian February 26, 2013 12:00AM

Decrease Text Size
Print

A TAX dispute has prompted authorities in the Philippines to block shipments from OceanaGold's Didipio copper-gold project.

OceanaGold yesterday tried to talk down the significance of the dispute after local authorities prohibited the company's trucks from carrying the concentrate from the mine to the port.

The dispute centres on when local authorities are eligible to begin collecting excise tax, which equates to 2 per cent of revenue.

Some 2500 tonnes of copper-gold concentrate are already waiting at port, and another 2500 tonnes are awaiting transport. The total value of the excise tax liable to be paid on that production is estimated at $100,000 to $150,000. OceanaGold investor relations manager Nova Young told The Australian the dispute was a "teething problem" as the company brought Didipio on line.


"In my view, perhaps the local government got a bit too excited and tried to collect the taxes upfront," Ms Young said. "If they're holding up the trucks we can't make a sale, and therefore we haven't got anything to base the tax on to pay them."

The main tax agreement covering Didipio allows for OceanaGold to recover all its pre-operating costs and any other taxes paid before the company becomes liable to make payments under the net revenue-sharing agreement with the Philippines government.

Ms Young said any taxes paid to resolve the local dispute could be recovered under that main tax agreement.

OceanaGold's legal team in Manilla and a group of external advisers were working to address the dispute, which Ms Young expected to be resolved quickly.

The dispute marred the progress in commissioning Didipio, which the company said was tracking well.

"The plant still continues to operate. We're still commissioning and that's going well," she said.

"This is just a small hiccup as part of working in the Philippines, and the worst case scenario is we pay (the excise tax) earlier than expected. Under our (tax agreement) we can recover those expenses, so it's just the opportunity cost and the time value of money."

Didipio, which is being built for a total cost of $US370 million ($360m), is expected to produce an average of 14,000 tonnes of copper and 100,000oz of gold over an initial 16-year mine life.

Shares in OceanaGold fell 7c to $2.20.

[elZorro]

Thanks for the info Adamcz, I'm not sure why OGC would stick their neck out over a small fee that they can get back within a short while, because all local fees become part of the big percentage they have to pay after the mine capital cost is recovered. It'll all come out in the wash. Sometimes I think they are penny pinchers. They had a big staff turnover in NZ.

Interesting data there about the value of the shipment. 5,000 tonnes worth about $7.5mill. That's $1500 a tonne, must be about what Trafigura? are paying for it. They still have to ship it somewhere and smelt it down. If it was ready to split out, it would have about 15 grams of gold and 100kg of copper in it, per tonne, based on the weight percentages they hope to extract. More copper comes out at first from Didipio. But it will be more highly mineralised than that, OGC aren't paying for the big extraction costs and equipment. Let's hope OGC struck a good deal. Copper price is dropping back a bit, about $3.50 a pound now.

[GR8DAY]

I think gold still has a ways to fall and this little hiccup will continue to depress the price as long as it continues. The 10% rise today was ridiculous and smacked of speculation or someone pumping the stock. I'd still be very careful on this one...

....LOL MOOSE......Just wait for the real action now, when OZ fires up......probbably another 10percenter for the day........TRADERS DREAM!,,

[GR8DAY]

wow.........someone showing confidence in OGC......that's the largest single buy order (34000) I think Ive ever seen.

[GR8DAY]

.......I see it's just gained $3 on the Spot Market. Someone betting it (GOLD) might have bottomed for a while?? I hope they're right. HOLDER

[elZorro]

An estimated 300,000 oz still at Blackwater. Worth spending 3 years to get to it.


OceanaGold applies to reopen Blackwater mineRoss Louthean — 13 March 2013
Forward planning for a mine to replace the maturing Globe-Progress open cut mine in the Reefton goldfield has seen OceanaGold Corporation (ASX, NZX & TSX: OGC) apply to re-open the Blackwater mine at Waiuta.
The abandoned town of Waiuta, 17 kilometres south west of Reefton, was scene of the last of yesteryear’s gold mines at Reefton when it closed after a shaft collapse in the early 1950s as one of New Zealand’s most prolific producers.
The Blackwater mine had tapped into the deep and rich-grade Birthday Reef.
The Greymouth Star said OceanaGold plans to access the lower workings of the mine via a twin-tunnel decline near the Snowy River.
This lower profile area near the Snowy River has been a blueprint the company has had for several years, after it abandoned reopening the Prohibition vertical shaft when it was found to be unsound, contrary to an earlier technical report.
That blueprint was for the decline development to access the Birthday Reef below the old underground workings, where deep diamond drilling in the past year has improved confidence about a continuation of the reef system at depth.
The Greymouth Star said it was estimated wages and salaries for an estimated 70 to 90 workforce would be in a collective range of $8-11 million per annum. The construction phase was expected to be three years.
The company said water removed from flooded workings would go to a treatment plant, discharged to a constructed wetland at Snowy Rd.
The Greymouth Star reported that no surface disturbance would occur on Department of Conservation land, or at the Prohibition Shaft – a site being supported by the historic group Friends of Waiuta.
The new data base gold section in Mineral Resources of New Zealand - soon to be put up on NZResources.com - says that old-timers mined the Birthday Reef over 1.05 kilometres but the northern and southern boundaries are faulted.
The reef was described as a typical quartz fissure lode in a shear zone which strikes at 30 degrees and dips westerly and geoscientists have reported there is evidence that the lode continues at least to the north. Quartz reefs average 67 cm width from a few cm up to a maximum 4m.
A corporate forerunner to OceanaGold, GRD, said in 2000 that there was a polygonal resource estimate for Blackwater of 450,000 tonnes grading 21.2 grams/tonne for 310,000 oz, including a measured 40,000t @ 20.56 g/t.
One deep hole by GRD below the workings intersected the reef below level 19 with an intercept of 0.4m @ 24.6 g/t and a daughter hole hit 0.5m @ 59.7 g/t. Drilling in 2012 by OceanaGold confirmed a continuity of mineralisation below the workings and in November NZResources.com said the company’s then last diamond hole at Waiuta intersected the Birthday Reef on two occasions, about 680m vertically.
Parent hole WA22C intersected 0.61 m (estimated true width of 0.5m) grading 15.65 g/t Au and daughter hole WA22D hit 1.13m (true width 1m) at 85.2 g/t gold. This hole was drilled from surface to 1,632m downhole, and was considered the deepest drill hole undertaken for gold in NZ.
Recorded historic production from the Blackwater mine was 1.58 Mt at a recovered 13 g/t Au for 683,504 oz.
Sources: NZResources.com data base and greystar.co.nz

[tosspot]

thank flip there operations resume now at Didipo. I bought it back at 3.50 and has been the biggest thorn in my side. hopefully gets back up there soon.

[GR8DAY]

thank flip there operations resume now at Didipo. I bought it back at 3.50 and has been the biggest thorn in my side. hopefully gets back up there soon.

........dont worry TOSSPOT, a couple of lifts in the goldprice and it will be right back there...........but dont make the mistake of selling just to get your money back cos Im betting OGC will go well beyond $3.50 before the years out...........try $4.50plus for starters once the benefits of Didipio start flowing thru.

[tosspot]

........dont worry TOSSPOT, a couple of lifts in the goldprice and it will be right back there...........but dont make the mistake of selling just to get your money back cos Im betting OGC will go well beyond $3.50 before the years out...........try $4.50plus for starters once the benefits of Didipio start flowing thru.
Yea its a tough call though I want to free these up for PEB which at the moment seems like it will have a larger and quicker return than this.

[adamcz]

Saw via the announcement yesterday that the trucks have now been released. Interesting no mention of the taxes payable. However found this, looks like the 2% is payable.

OceanaGold settles tax row
By Anna Leah G. Estrada | Posted on Mar. 14, 2013 at 12:02am | 104 views


OceanaGold Corp. of Australia said Wednesday it was allowed to resume transportation of copper-gold concentrates from the Dipidio mine in Nueva Vizcaya to the nearby port, after it paid “under protest” the 2-percent excise tax to the government.

“We paid under protest the excise tax to the Bureau of Internal Revenue because we are exempted under the BIR ruling in 2007 during the recovery period,” OceanaGold Philippines chairman Jose Leviste Jr. said in a text message to reporters.

Local government agencies earlier held the company’s trucks transporting copper-gold concentrates over tax issues.

The Bureau of Internal Revenue issued a circular stating that mining companies covered by financial and/or technical assistance agreement should pay taxes even during their recovery period.

Didipio mine is the first mining project to commence operations under the FTAA structure, which allows foreign investors full ownership of a mining project for 25 years.

OceanaGold, however, said under the FTAA, foreign investors who own 100 percent of a mining venture and whose permit was issued by the Mines and Geosciences Bureau, should be granted a five-year tax holiday.

The miner said after the payment of excise taxes, a third of the 9,000 tons of copper-gold concentrates produced from the Didipio mine had been delivered to the port, allowing it to make the first shipment next month.

“The trucking capacity is being increased to reduce the site stockpiles of concentrate in advance of the first shipment from the port in April,” the company said.

Transportation of copper-gold concentrates from the Didipio mine was temporarily suspended, as the company discussed the interpretation of tax exemptions with various government departments.

OceanaGold said due to these clarifications on tax exemptions, some trucks used for transporting concentrate were held by local government agencies and, thus, transportation of copper-gold concentrate was temporarily suspended.

The BIR issued Revenue Memorandum Circular No. 17 which clarified a provision under Republic Act. 7942, or the Philippine Mining Act of 1995.

The provision states that “collection of government share in financial or technical assistance agreement shall commence after the financial or technical assistance agreement contractor has fully recovered its pre-operating expenses, exploration, and development expenditures.”

[GR8DAY]

...........FINALLY!!!............now watch this puppy fly if GP keeps improving.

[adamcz]

New presentation up for anyone who is interested
http://www.oceanagold.com/assets/documents/Presentations/130315OGC-Corporate-presentationMarch-2013-FINAL.pdf

[GR8DAY]

......thanks for that ADAMCZ. I particularly like their claim that " Didipio will become one of the two lowest cost gold mines IN THE WORLD" (or something to that effect)

Still high on my list to outperform the market for 2013FY........the numbers are looking good already.

[GR8DAY]

OGC rose over 9% last night on the TSX, can expect a similar showing here this morning. Looks like risk off is back in favour. Still holding I hope GR8DAY!

Kiaora moose....good news, havnt been monitoring canada. Yes to still holding and will look hard at topping up if gold price continues with this steady climb of late....looking pretty good at the mo.....but we all know what gold stocks are capable of!!

[GR8DAY]

Ouchie, gold taking another beating today. Hope you sold out of the unhedged bets of OGC while you could and bought NTL GR8DAY!



......yep saw that cumn Moose, grabbed a small profit while I cud. Wudnt touch NTL with a bargepole (though I do hold a few 100k of them from years gone by).......it'll be 5 yrs before they start making money........if any.

[GR8DAY]

.........so long ago I cant remember sorry mate, but definitely out of pocket there!!

[elZorro]

The first shipment of 5,000 tonnes of copper/gold concentrate has been shipped from Didipio by Trafigura to Japan, for smelting. Its value was meant to be around $7.5mill, payment will turn up in the middle of the month. The process looks quite labour intensive from the photos. No major reaction from the market.

[elZorro]

Some very good news from the old Blackwater Mine in the South Island today. They've had to send drills below the last workings (1100mtrs), but there they have been able to intercept the thin high-grade gold vein again. The photo shows visible gold in the ore. When it was assayed, the best grade was just over 4oz/tonne, which is truly a Bonanza grade. The total resource has been updated to 600,000oz, much of it can be gravity separated, and Newmont is keen to go after the same amount of lower grade gold under Waihi.

[mistymountain]

Market doesn't like something about that release today. Gold is still looking slightly weak near term though. Oversold?

Market didn't digest data and is too preoccupied by price of gold. Downside risks in short term price is affecting SP.

[elZorro]

I just have a small indication amount of OGC at this stage, Moosie. I still remember the 10-20 bagger run OGC had in 2008-2009 and I will want to get it right next time. OGC will be a favoured gold producer later on, as their net recovery costs should be low on average. I don't think the bank consortiums will be too worried about their investment longer term. However there was no major reason for OGC to sell them a whole lot of shares, diluting the rest of us. They could have paid interest on the overdraft or loans they were offered, in the interim.

[tosspot]

If this gets under $2 I obviously depending on how fast its sinking could be a great opportunity for a bounce back. because their conference on the 29th will not include results from the recent gold price drop.

[elZorro]

Here is a management circular as required by the TSX for the AGM. After the AGM the (new/same) board will discuss the position of Chairman. Jim Askew has been there as Chair for over the five year term mentioned in the charter. Jake Klein is Chairman of the 3-person Remuneration and Nomination committee, and was absent from one of two meetings they held last year.

http://nzresources.com/attachments/4445/Oceanashareholderinfolr.pdf (http://nzresources.com/attachments/4445/Oceanashareholderinfolr.pdf)

[elZorro]

And here is your gold market manipulator. No surprise, it's Goldman ball-Sachs as usual:

http://www.kitco.com/reports/KitcoNews20130423DeC.html I wonder how much the bet was for. Reading between the lines, they are now neutral on gold because worldwide economic indicators aren't as good as expected yet, and they were surprised gold dropped as low as it did. I'm looking for a long-term change in the price of energy worldwide to lower levels, this would help all economies. That's not likely to happen in the next few years. The opposite is more likely. This is the bottom line behind a gold price bet.

[tosspot]

Also Financials and agm on monday. Results should be better than what the current share price reflects

[GR8DAY]

Thought some people might like this. If the highlighted part does come true, expect a BIG bounce in gold:

Physical demand for gold continues unabated in the Far East and Europe. Except for silver Eagles, where supplies remain tight (remember, don’t chase the premium), the North American market has dealers with a well stocked inventory of gold coins. The argument was that the price drop created a cheap entry point. To some extent that is true but gold in the low $1,300’s is not cheap if the global economies are mending. This is not a capital gains trade; for our global neighbors it continues to remain a “fear” trade. The lower price action over the past two weeks was a bonus. On this side of the pond, the rumors have begun that the Fed is considering “extending” their bond buying.

I have raised the stop on the long gold position to $1,426 on a close basis. Gold has retraced 50% from the $1,600 level drop to the low of $1,301 seen in Asia. This gives me pause. We will now want to see gold breach and maintain a close over $1,455 with an initial target of $1,477. For those trading the ratio, silver is $1.50 behind gold on the retracement. Everything else being equal, silver should be showing a print with a $25 in front of it.

Thanks to Peter Hug from Kitco.

Next FOMC meeting is in 5 days. With OGC's new financial report coming out and being oversold at the moment, I rate OGC a BUY.

Disc - Do not hold OGC and take no responsibility for anyone's actions. You will, after all, have to explain your losses to your accountant, if it goes pear-shaped, as being attributable to a talking internet Moose...



THANKS FOR THE RESEARCH MOOSE.......PLEASE KEEP IT COMING M8 FOR US "LAZY" INVESTORS!! (hope you picked up some of the recent OGC bounce?

[glasszon]

The problem is it would be hard to pick when the carnage is over, with the volatility being so high it would take some strong stomach to take it on right now even as a long-term holder.

[False Profit]

Call me....Strong Stomach....I've just gone in at $2.19 to increase my stock (bought at $2.44).

This is the turning point or I'm a Dutchman....

[False Profit]

The Dutchman has arrived!!! Call me Raymond Van Barneveld. Just seen this extract from US analysis in the Herald online

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10884228

As for the outlook for commodities, it's bleak, according to a poll by Credit Suisse. Gold will trade at US$1,100 an ounce in a year and below US$1,000 in five years, according to Ric Deverell, head of commodities research at the bank. "Gold is going to get crushed," Deverell told journalists in London today, Bloomberg Businessweek reported.

But what a bounceback we're going to be looking at...in a few years...

[False Profit]

I admire (and bow) to your greater knowledge, moosie. But there are 3 trades on OGC pre-market opening and I'd bet my holdings that they are sells. Happy to hold as I love the adrenaline rush. Hopefully people will not bother selling soon as the price will be so low it won't be worth doing so.

[geezy]

Trying to get in :) , gold will still be around :) lots of ppl buying physical gold due to lower prices

[JBmurc]

Yes OGC looking good if they can much the numbers provided


Production Guidance
The Company has reviewed production guidance for 2013 taking into account commercial production at Didipio commencing on 1 April 2013. Guidance remains unchanged and is as follows:
Didipio: 50,000-70,000 ounces Au & 15,000-18,000 tonnes Cu @ cash costs of negative US$370 to negative US$50 per ounce (net of by-product credits)
New Zealand: 235,000 – 255,000 ounces Au @ at cash costs of US$880 to US$950 per ounce
Total: 285,000 – 325,000 ounces Au @ cash costs of US$650 to US$800 per ounce (net of by-product credits)


disc -in at 1.845 ASX

[elZorro]

Looks like Didipio has come onstream at just the right time for OGC. This from NZResources.


Oceana shareholders told Didipio a key for war on mining costsRoss Louthean — 20 May 2013
New Zealand’s premier gold producer OceanaGold Corporation (ASX, NZX & TSX: OGC) has told shareholders that commissioning of the company’s new mine in the Philippines was a key to reducing group costs for the company.
OceanaGold told shareholders at the company’s annual general meeting in Melbourne on Friday that the Didipio gold-copper mine in the Philippines should be a key to increasing free cash flow over the next five years.
This would see, the company said, the company moving from being a “relatively high-cost producer to a much lower-cost producer.”
The company’s established New Zealand gold mining operations at Macraes and at Reefton had worked on a guidance for fiscal 2012 of producing between 225,000-230,000 oz and cash costs in the range of $US1,000-1,050/ounce.
First concentrate from Didipio was produced in December and the company has made it clear in recent reports that the copper credits from this mine will help produce dramatically lower group costs.
Looking ahead for the NZ operations the company said the Blackwater mine at Waiuta in the Reefton goldfield had demonstrated a continuity of high grade gold systems below the old mine’s historic workings.
The inferred resource at Blackwater had grown to 600,000 oz at an average grade of 21 grams/tonne gold. The operation was being seen as the company’s next mine in the Reefton field where the existing Globe-Progress open cut was now maturing.
Friday’s annual meeting saw all resolutions passed with minimal opposition from shareholders, including the re-election of chairman James Askew, managing director Michael Wilkes and director Denham Shale.
There was also minimal opposition to the often thorny issue of approving an increase of aggregate fees for non executive directors.


Other points, Blackwater likely to be a source of NZ profits at that high grade of 21oz/tonne. Jim Askew is voted in as Chairman again.

[False Profit]

Certainly makes for a salivating read. Hopefully it's not an empty threat but at least the price for OGC has stabilized somewhat in the last couple of weeks.

[False Profit]

The current market might be 212 but you can buy them at Direct Broking for 227. Somethings happening at last.

[JBmurc]

Reefton report out now:

https://www.nzx.com/companies/OGC/announcements/236633

Basically costs will average $800-900oz USD...production till least 2017 at reefton....all depending on future gold prices

[JBmurc]

Took a quick squizz through yesterday, grades seem to be pretty low. Is it possible they may shelve this project until gold price picks up again?

Not unless gold goes much lower sub 1000oz....no I think they'll work it too 2017 then unless there's good exploration/resource upgrade focus on the other projects for growth

[JBmurc]

Glad to have increased my holding yesterday 1.745 asx ...1.81 looking strong so far today...always seem to start strong of late to end weaker....

[JBmurc]

And onwards it goes 2.09 high today

[elZorro]

I like to keep an eye on OGC. NZ's biggest goldminer, current MCap is down from over a billion in previous times, to about C$520mill.

Having a look at the shareprice over the last 11 months, it has basically tracked US$gold, even though there have been some extra shares issued. There is obviously a positive Didipio response to that event, which is keeping the balance. The NZ mines are not replacing their gold as quick as it is being mined out. This means that to value OGC against their resources and reserves, considering the lower gold price and poorer grades, what sort of a valuation applies?

OGC has 3.64Moz of P&P reserves that are being mined, or nearly mined. Total resources including M&I and Inferred, is 10.13Moz.

So crudely, the reserves are worth about C$110 an ounce inground, and the rest is worth about $20 an ounce, according to the market. This will improve sharply if the gold price moves back up. But it does help gives some valuation ideas for other gold miners.

[False Profit]

I love limbo dancing as much as the next man so how low can you go? $2.00. $1.90. $0.50c?????

[GR8DAY]

This isn't even on the back of lower gold prices either (last time it hit $1.69 AUD gold was near $1320). This industry is just getting absolutely pummelled, it's quite incredible to watch!


.....thank the lord I bailed when I did! Will be buying back in tho' when things start to line up again.......still a viable company to invest in with some BIG upside potential in my opinion.

[False Profit]

This is the one to watch. The losses have been dramatic to say the least. I never thought I'd say this but it'll plumb the depths of $2.00 for sure. When the love affair for 'the colour' returns you'd all better have your slice tucked away!!

[GR8DAY]

The value investor in me is quite piqued.

It is trading at a historical low, and could get lower yet.

Can anyone tell me what the breakeven price point is for OGC in mining gold? Is it roughly $1000 an oz USD?




Elz should have that info for you Sparky.........give him a nudge!

[whatsup]

The value investor in me is quite piqued.

It is trading at a historical low, and could get lower yet.

Can anyone tell me what the breakeven price point is for OGC in mining gold? Is it roughly $1000 an oz USD?

Sparky What you said is incorrect , in 2009 I bought at sub .90 , IMHO we have quite a way to go before it falls to that level, mind you there were several mitigating factors then but they could be revieled again, cheers.

[tosspot]

im gonna put a number on it. If it hits 1.75 im in. obviously excluding any abnormal events that havnt happened yet.

[GR8DAY]

.......I CANT BELIEVE PEOPLE ARE STILL TRYING TO CATCH THIS FALLING KNIFE........AND TO THINK I HAVE IT AS A "PICK" IN THE COMP!! (no wonder Im pretty much last!).....I must have seen it coming tho and cleverly (more like luck) bailed at $3.10. OGC is the ultimate gamblers stock........wake up the next day and it's either gonna be "OUCH" or "YEEHA".........you take your chances. Personally I dont think the carnage is over yet, $1.50 cud be hit any day now BUT if your'e a holder just hang in there folks and it can turn upwards just as easily,..... at the blink of an eye! Meantime I'm happy to watch and wait.

[GR8DAY]

I believe $1300 is going to be re-tested and broken. We're going for broke on this one. Should be a nice little bounce after the panickers have sold out as well since the stock is already vastly oversold. If one can wait for that bottom in the POG and buy with an extremely low P/E then this company will spit out capital gains and dividends for years to come.

Just look at what happened back in 2009. 20 cents per share for a major gold producer?!?!



.....yea mate, timing is just soooooooo important with this one. Hard to hold back (from buying) at times but patience "cud" pay big dividends. Im gonna take my chances and wait..........20c sounds about right!!

[GR8DAY]

..........agree you've usually gotta be fast on your feet with OGC............remember it's easy to buy at times but hard to sell most of the time. SP now at a level where Im happy to NOT panik into re-purchasing.......watching/waiting has become easier I suspect for the majority which is only contributing to the slide. Plenty of time yet in my opinion.

[JBmurc]

wow once it broke though the 1.73-1.80 asx support level it has been a good shove lower glad to have taken a small profit on my lot back at 1.875.......will wait to the gold price finds support before looking to make another ST trade

[GR8DAY]

..........GOLD PRICE STILL ON A SLIPPERY SLOPE (down another $4 as I write).......take a braver person than me to be buying back in yet!!

[GR8DAY]

.........crazy stuff, $1.50 here we come!

[Dej]

Based on fundamental value of the company, has the share price passed this point and has the company placed as being seriously undervalued? I realise their earnings are dependent on gold, and that will have a huge impact on the value of the company, would just be interested to see what people think the value of the company is!

[Logen Ninefingers]

'OceanaGold: bloodbath at the mine'

[futurist]

Based on fundamental value of the company, has the share price passed this point and has the company placed as being seriously undervalued? I realise their earnings are dependent on gold, and that will have a huge impact on the value of the company, would just be interested to see what people think the value of the company is!

It is difficult to evaluate, or to be exact to link the evaluation with a prediction. OGC is a good share to speculate: it moves big steps in either directions and it has been doing that for a while. Of course, its long term trend should associate with gold price but the short term volatility could get some people interested in it. I admit I am even I don't hold any at this moment.

Once one could be honest about their views and be comfortable, then there is no need to over rationalise everything. At least I don't think this particular share (with its current form) deserves the effort which one could put in other places. If I am in the game, I will make sure I play it like a game, buying and selling based on chance alone. I truly don't see anything wrong with that except not being honest about it.

[troyvdh]

I think I last bought in at 40-50 cents...sold a few at mid $4...Im not a trader...but man some folk must have made a killing out if this outfit...over the years....cheers...

[Thor]

Interesting news release by OCG just now:

http://www.oceanagold.com/assets/documents/filings/2013-Press-Releases/130620-OGC-Didipio-Performs-Strongly-Growth-Outlook-FINAL.pdf

Some relevant exerts:

companyinsight.net.au
The recent decline in the gold price has impacted gold equity performance significantly and resulted in the majority of the industry re-evaluating capital expenditure plans and undertaking cost cutting measures. How is OceanaGold placed for this new environment with its operations and what steps are you taking to maximize profitability in this lower price environment?

Managing Director, Mick Wilkes
At our operations in New Zealand we've always been focused on the marginal ounce to maximise profitability there. We're not strangers to a tight margin environment and we'll continue to focus on productivity and costs in New Zealand and at Didipio.
We're currently reviewing the mine plan at Macraes and more particularly Reefton in light of the lower gold price. We're looking to minimise the amount of capital expenditure, particularly on pre-stripping for future production and we're also looking at wages freezes and reviewing all discretionary expenditures to reduce unit operating costs. We will update the market on Reefton within the next six weeks but can expect that the mine schedule will likely reflect a shorter mine life with these new economic realities. We will ensure the New Zealand operations remain cash flow positive after sustaining capital expenditure and only spend capital that is absolutely necessary to meet the production plan.
I want to assure investors that no one operation will be subsidized by cash flow from another. In other words each operating mine will have to support its own capital expenditure requirements.


companyinsight.net.au
The general consensus amongst the mining analysts in Australia and Canada is that OceanaGold continues to be an undervalued company. What are the key catalysts for investors to look for moving forward?


Managing Director, Mick Wilkes
Primarily the market is looking for us to demonstrate the profitability of Didipio and therefore net cash flow received from the operation and cash at bank will be key catalysts for the market. The market will also be looking to see that the New Zealand operations are cash flow positive and contributing to the overall profitability of the Company. We hope to demonstrate this through our reporting over the next couple of months.
We will also be looking to add to mineral resources around Didipio, in other parts of the Philippines and in other countries and any success should also lift the share price.
We believe OceanaGold is in a very strong position relative to its peers. We have a strong balance sheet that is getting stronger, a new low cost operation in Didipio where we have spent the capital and now have cash flow coming in, continuing positive cash flow from our New Zealand operations, significant exploration upside, potential to pay dividends next year and we are in a position to take advantage of low cost growth opportunities in the current environment. Within the next 5 years, we can see OceanaGold operating 3-4 mines in different countries, and we are well placed in the current market to take advantage of that.



It's not all doom and gloom people - there is some light at the end of the tunnel!

[futurist]

I think I last bought in at 40-50 cents...sold a few at mid $4...Im not a trader...but man some folk must have made a killing out if this outfit...over the years....cheers...

This is beautiful; I think the earliest point I told everyone I know to dip into gold was when it was priced around $300. Even if we exited at the peak the return could never compare to your tenfold record. Brilliant.

[Flugenbear]

moosie, we dipped below $1290....!
Currently sitting at $1295....where to from here.
This is carnage. But could get a lot worse yet.

[GR8DAY]

OMG.......OGC..........down another 11-12% on the TSX overnight........gold absolutely hammered, down $70plus .......brace yourselves folks, this cud make yesterday's pullback look like a walk in the park. To sell? to buy? to do nothing?........as a non-holder I think I'll opt for the latter.

[GR8DAY]

.......I READ THERE IS SERIOUS TALK OF THE INDIAN GOVT PUSHING TO REDUCE ITS GOLD RESERVES BY UP TO 30%........ANOTHER HUGE DEATH KNELL FOR THE GP IF THIS WAS TO HAPPEN. GOLD IS NOW IN A REAL DOWNTREND AND MAY EVEN HIT $1000-1100US IN THE NEAR FUTURE........not that anyone really has a clue but the so-called experts are now using these numbers.

[Logen Ninefingers]

Now that the morning shorters have been seen off on a day when there literally has been some 'good news from the mine', can see sellers digging in and not prepared to fling their shares away for song. But if gold is savaged on a day when the Dow is down by over 300 points, what happens when the Dow goes up again?

[futurist]

It may sound strange, but this could actually be a good news to gold:

http://www.shibor.org/shibor/web/html/index_e.html

13.44% for SHIBOR overnight .... it is getting increasing dry in China right now. If a panic happens, it will counter every possible good indicators from the States and bring the world down again.

[Logen Ninefingers]

The US economy is a mess; now the US dollar is king again because Bernacke talked up the US economy on the back on some so-so data & that erases all the money printing? The US stock market is like Enron.....share price soaring while the company itself is tanking. Europes a basket case, Japan's QE may not be working, China's looking shaky : and gold gets sold off as no-one needs a safe haven anymore(?) Widespread delusion out there is anyone thinks that the US is on the up and up. It's on life support @ USD 65 billion a month.

[JBmurc]

The US economy is a mess; now the US dollar is king again because Bernacke talked up the US economy on the back on some so-so data & that erases all the money printing? The US stock market is like Enron.....share price soaring while the company itself is tanking. Europes a basket case, Japan's QE may not be working, China's looking shaky : and gold gets sold off as no-one needs a safe haven anymore(?) Widespread delusion out there is anyone thinks that the US is on the up and up. It's on life support @ USD 65 billion a month.

Yeah cracks me up how the market listen to a guy thats has been getting it so wrong ....a few years ago they talked of reducing debt now it's tapering of the 80bill per month some time next year .....funny how we no longer here about the out of control debt.....If the FED stopped the QE rates would have to rise ....the DEBT cost would also get out of control ....the Q.E would then have to increase to much higher levels to control this ....it's the never ending problem only high inflation could Fix....but they can't seem to get Inflation to kick in Japan is trying and will continue pumping new Fiat money till they get it..

[futurist]

The US economy is a mess; now the US dollar is king again because Bernacke talked up the US economy on the back on some so-so data & that erases all the money printing? The US stock market is like Enron.....share price soaring while the company itself is tanking. Europes a basket case, Japan's QE may not be working, China's looking shaky : and gold gets sold off as no-one needs a safe haven anymore(?) Widespread delusion out there is anyone thinks that the US is on the up and up. It's on life support @ USD 65 billion a month.

Whether it is a mess or not, it is relative isn't it? Besides, nothing is truly effective after QE2, and so it is always a matter of time for the Feds to prepare the sentiment of retraction. At the end of the day, the States could survive a bad economy but not defaulting from their government.

Comparatively, the government of Japan would have a higher chance of defaulting. After 2 decades of deflation, this is their last chance of a radical reform but the timing is really bad globally speaking. At a local level, they do have all the politics they need. Still, it is not a wise choice to QE when their brother is about to finish. If JPY stays in Japan, then it does help the economy. But if JPY flows out of Japan, then QE does not help to lower the interest payment for their government (or increase their ability to borrow), which means higher chance for them to default.

As of China ... the SHIBOR does tell us something. All the negative effects of the 4 trillions RMB injection are appearing now. The wasteful and wrongful investments are biting all businesses and governments, from local to central.

Well should we be optimistic with gold then, and just treat the recent correction as, merely short term correction? I would be careful about that. The mentality of traders and brokers is not as complex as we think. The majority of them want to invest in dollars or dollar-based security. There is no point to dispute that. The only thing stopping them from doing so in the past few years is the intervention from the Feds by printing unlimited amount of dollars. So instead of calling gold a safe haven, I think gold is more of a counter to the Feds' printing machine, or to a larger extend the trust to the States' government. Again I am not talking specifically about the economy, but the trust of the government of USA to pay their debt (of course I mean interest). Therefore, even we may feel the economy of the States is not doing well enough for people to flock back to the dollars; it may still happen just because the anti-condition for the traders and brokers to put their bets on dollars and dollar-based security is about to disappear.

[futurist]

While I said there was no point to dispute the fact that most traders and brokers want to bet on dollars and dollar-based security, I feel that could be a bit presumptuous to some here. So let me share a bit of how I think about the American Dream.

If finance is an act of educated gambling, then the financial market perhaps is a casino and definitely the States own the biggest one in the world. Why? Because they have the most visitors and gamblers. You are never bored once you step foot inside their lobby because there are so many entertainments available. If you like politics, you could watch Obama; if you like gadgets, you could watch Apple fighting against Google; if you want humor, you could watch the Hollywood or just Fox News. The States have everything, from the best to the worst. As a country, either they are fighting with this nation, or trying to be friends with some, or pretending they care about others.

In short, they manufacture their importance and in exchange they collect ALL OUR ATTENTIONS. I don't think the States is the best place on earth because as I said it has both the best and the worst sides of a lot of things; but overall that makes it an ideal place for running a casino because it is engaging with a huge diversity of events that would suit almost everyone. Constantly they have new problems and new solutions. When they print money, it affects the world. When they stop printing money, it affects the world again. Because of this never ending cycle, traders and brokers have been hypnotised to bet on the dollars and the dollar-based security, as we all know, that's the biggest casino and what do traders and brokers rely on? Transactions!

[Valuegrowth]

Very interesting thread. Globally gold miners are falling.

For exampleABX:CN prices down by more than 50% during last 12 months.

I am thinking about taking some contrarian approach during next couple of months. I believe there will be some great opportunities in some badly beaten down commodity stocks in the coming quarters. I think it is better to keep OceanaGold under our radar. At different times different stocks and commodities will become out of favour stocks and commodities. So majority will neglect these assets. Value players with long term horizon will have some great opportunitiesin these out of favour sectors. Those commodities and stocks which under preformed during last couple of years will outperform others now. It is time to study to identify next cycle in Gold.

I like to invest in individual commodity stocks than buying commodity index or trading commodity futures etc.

My ideas are not arecommendation to either buy or sell any security, commodity or currency.Please do your own research prior to making any investment decisions.

[Sideshow Bob]

From today's ODT:

http://www.odt.co.nz/news/business/261992/thrift-oceanas-nz-mines

Oceana Gold has released a bold market update, predicting it will be operating up to four mines in several countries within five years, but fired a surprise warning shot across the bows of its mainstay New Zealand operations.

[futurist]

Very interesting thread. Globally gold miners are falling.

For exampleABX:CN prices down by more than 50% during last 12 months.

I am thinking about taking some contrarian approach during next couple of months. I believe there will be some great opportunities in some badly beaten down commodity stocks in the coming quarters. I think it is better to keep OceanaGold under our radar. At different times different stocks and commodities will become out of favour stocks and commodities. So majority will neglect these assets. Value players with long term horizon will have some great opportunitiesin these out of favour sectors. Those commodities and stocks which under preformed during last couple of years will outperform others now. It is time to study to identify next cycle in Gold.

I like to invest in individual commodity stocks than buying commodity index or trading commodity futures etc.

My ideas are not arecommendation to either buy or sell any security, commodity or currency.Please do your own research prior to making any investment decisions.

This is well thought, I start to enjoy the discussion :)

I suggest we include another two indicators here: the stock level of gold for business that needs them and the amount of short contracts among hedgers. No matter where you collect those information, both of them are pretty low right now.

Then I do think it is wise to at least mentally separate the trend of gold price with the share price of gold mining companies. Obviously they are correlated, but that is a too easy observation or underlying assumption to make. Also during bad periods, there are always winners among others in a heavily hit sector. Just like Google survives the dot com collapse. I agree there are opportunities among gold miners when their share price has dropped so much which has nothing to do with how operationally efficient they are in doing what they do best.

[elZorro]

Another article on OGC, adds a bit more detail (http://www.stuff.co.nz/business/industries/8827710/Goldminer-looks-at-pay-freeze-in-South-Island). While I'm surprised that gold has dropped again, if it dropped so quickly, then in different circumstances it could rise again just as fast (or nearly as fast). It's all perception, but in behind that is the reality of miners being unable to derive a profit dollar from larger amounts of their reserves. They will have safety in their mining decision numbers, but US$1300 prices will force a revision for many.

[elZorro]

NZResources has this story on the press release from Friday:


Brokers warm to Oceana CEO’s speech but union unhappySimon Hartley — 24 June 2013
OceanaGold Corporation (ASX, NZX & TSX: OGC) released a bold market update - predicting it will be operating up to four mines in several countries within five years - but fired a surprise warning shot across the bows of its mainstay New Zealand operations.
While its newly commissioned gold and copper mine in the northern Philippines is ramping up with relatively spectacular results, given the declining global spot gold price, New Zealand operations in Otago and the West Coast face mine reviews, minimisation of capital expenditure and a possible wage freeze - catching staff and unions unawares on Friday.
OceanaGold chief executive Mick Wilkes said the company was reviewing the mine plan at Macraes, “and more particularly Reefton” on the West Coast because of the lower global spot gold price.
“We're looking to minimise the amount of capital expenditure … we're also looking at wages freezes and reviewing all discretionary expenditures to reduce unit operating costs,” he said.
Amalgamated Workers Union spokesman Calvin Fisher was contacted and said “No,” he was not aware of any wage freeze proposals.
He said the union and OceanaGold management were due to begin talks next week, which covers five collective agreements, covering at times up to 600 workers.
“It has to be acknowledged the mine [Macraes] may be in its twilight years. No doubt Wilkes wants investors to see his long-term appetite is for the Philippines,'' Fisher said.
He highlighted Wilkes' having talked-up OceanaGold's long term prospects at mining conferences in recent years, and with negotiations starting next week, called on him to “do the right thing by the staff and community.”
On the question of the improving Philippine operations, Fisher said noted that New Zealand investors “would be left out in the cold” having not had any OceanaGold dividends during 23-years, while the mine was “plundered” by a series of owners.
The company did not responded to inquiries about Mr Wilkes' wage freeze comments. Mick Wilkes had said: “I want to assure investors that no one operation will be subsidised by cash flow from another.
Craigs Investment Partners broker Peter McIntyre welcomed Oceana's decisions to reduce debt, scrutinise production and maintenance costs and its mines' profitability.
“It's good to see Oceana is taking control of the issues, but it is bear market.
“The big question is the [future] gold price, which can't be controlled,” McIntyre said. In the short term, gold's price would stabilise around $US1,200/ounce ($NZ1,540/oz) but there was more negative risks, such as waning Asian demand, the likelihood of the US dollar gathering strength and European countries' need to sell gold to fulfil European Central Bank commitments.
The catalyst for Oceana's optimistic outlook appears to be copper production in the Philippines offsetting the high cost of gold production there, and in New Zealand, meaning the company’s overall costs are cushioned by copper sales.
Forsyth Barr broker Peter Young said while the Reefton mine has challenges at the current gold price, the Macraes mine had a bit more headroom and Didipio was doing well.
However, Young cautioned that the falling global price copper price would not be helping Oceana. At a time when competitors' cash costs to produce an ounce of gold are edging beyond $US1,000/oz ($NZ1,283/oz), the copper cushioning means gold in the Philippines is being produced for between negative $US350/oz to negative $US50/oz, which averaged across the group translates to costs of between $US650-850/oz.
Mick Wilkes had said the market wants OceanaGold to “demonstrate” Didipio's profitability, see cash in the bank and NZ operations being cash flow positive.
“We hope to demonstrate this through our reporting over the next couple of months,” he said.
OceanaGold had a “strong balance sheet that is getting stronger,” new low cost operations at Didipio with cash flow, continued positive cash flow from NZ operations and positive exploration results.
“Within the next five years, we can see OceanaGold operating three to four mines in different countries. We are well placed in the current market to take advantage of that,” he added.
For the past 23-years, OceanaGold's Macraes mine in East Otago has been the mainstay of gold production, but it has always been acknowledged as a marginal producer; from low grades.
*Simon Hartley is senior business reporter and deputy chief reporter for the Otago Daily Times.


That's right, where have those dividends been, even in the good times? The shareholders have been robbed to pay for Didipio capital costs up front. And now Didipio is needed just to stay cashflow positive, until the gold price recovers.

[Thor]

Some additional commentary on OCG:

http://jutiagroup.com/20130621-five-miners-chen-lin-expects-to-buck-the-trend/




CL: OceanaGold Corp. (OGC:TSX; OGC:ASX) (http://www.theaureport.com/pub/co/1382) is doing quite well. It is starting up a world-class Didipio mine in the Philippines, and everything is going quite smoothly. OceanaGold has about $50 million ($50M) of debt due at the end of this year, but it has already arranged a credit line against that just in case it needs to pay it off. So OceanaGold is quite self-sufficient.The company is guiding about 300,000 oz gold production this year at $650–800 cash costs. Its costs are highly influenced by the New Zealand dollar, which is dropping. The Philippine peso is also dropping. If energy prices drop, that will also help it a lot. So its costs can change with the market conditions. Next year, OceanaGold will be in a much better situation with the Didipio mine fully commissioned, and I believe it will be looking at a dividend policy next year.

[Flugenbear]

I agree moosie.
There is a good chance this puppy will continue it's downward slide...
But it's going to be hard to call the bottom on this one....!

[elZorro]

Someone's on the ball, the Reefton output has been hedged for the next two years, the mine will go into care and maintenance unless the gold price improves by then.

http://oceanagold.createsend4.com/t/ViewEmail/r/E3740385EED1D7182540EF23F30FEDED/442A2E961AFE0C324415EB25BE999822

[JBmurc]

well, that certainly changes things! the SP is going to be hit accordingly, but at least hedges are now in place and didipio is cash cost negative. so what can we expect sp wise now?

All depends on Shareholders ....many are selling like the sky is falling ....mad mania sell-off in most of the resource sector shares esp PM shares...forget fundamentals on why the like of Gold has moved from $250oz ++ and how nothing has changed outside bullish talk on Western economy's of late to drive the paper price of gold downwards...mark my words as fast as Gold has come down of late it will rise just as fast when the masses see the Q.E cannot ever end ....and rates can't rise without causing a major recession in the many debt laden nations...

[JBmurc]

I'm sure skol over on the asx thread would love to argue that point with you. I don't think QE is ending anytime soon, but while equities rise and inflation stays low gold is going nowhere. I don't doubt gold will have its day again, but its far, far away.

Really last time Gold was this oversold T/A wise ... "May 2012" & "DEC 2011" both times it moved upwards some $270 in the following months.......

[GR8DAY]

........IVE JUST REMOVED OGC FROM MY WATCHLIST. THE TEMPTATION TO BUY WAS GETTING TO ME BUT THANKFULLY I RESISTED. I THINK THE TRICK HERE GUYS AT THE MOMENT IS TO IGNORE IT COMPLETELY UNTIL YOU HEAR THE GP IS TURNING. TRYING TO CATCH THIS KNIFE COULD BE SUICIDAL. I COULDNT BELIEVE WHAT I WAS SEEING YESTERDAY (after an overnight $50 drop in the GP).......PEOPLE STILL TRYING TO BUY IN AT $1.40sh??...........MADNESS IN MY OPINION, BUT WHO KNOWS I COULD STILL BE PROVED WRONG. PATIENCE IS THE KEY.

[GR8DAY]

......YUP FOLLOWER OF KITCO..........gotta read it with a large degree of objectivity tho'! $1000 poz cud actually happen. I have a mate who is involved in the gold mining industry having just returned from PNG. He is sitting on quite a large loss himself (physical gold) and was the first to mention the $1000 number to me. He believes it's quite realistic to expect.

[Balance]

......YUP FOLLOWER OF KITCO..........gotta read it with a large degree of objectivity tho'! $1000 poz cud actually happen. I have a mate who is involved in the gold mining industry having just returned from PNG. He is sitting on quite a large loss himself (physical gold) and was the first to mention the $1000 number to me. He believes it's quite realistic to expect.

For what it is worth, I understand from a resources analyst that the marginal cost of production of gold is around US$800 oz for most of the big producers.

Pre GFC before gold became super fashionable as a hedge against economic meltdown, gold consistently traded below US$800.

So until it approaches US$800, best to watch from the sidelines.

[JBmurc]

For what it is worth, I understand from a resources analyst that the marginal cost of production of gold is around US$800 oz for most of the big producers.

Pre GFC before gold became super fashionable as a hedge against economic meltdown, gold consistently traded below US$800.

So until it approaches US$800, best to watch from the sidelines.

Citi-bank analyst believe total costs to produce 1oz gold is much high for 90% of miners ...stating many will fall over even if Gold holds current levels

[Balance]

For everyone out there, please be careful of this latest bounce thinking that the carnage is over. It's not if you take a look at this page and see how little ETF's have been selling out. The blood has not soaked the floor yet, so this may be one last chance to get in and out for a lucky play of OGC...

http://finance.yahoo.com/blogs/the-exchange/gold-slide-isn-t-over-184734466.html

Looks like Warren Buffett is bang on again - never invest in anything which does not actually do anything and is dependent upon sentiment!

[JBmurc]

Great trade for bargain buyers of late up another 12% so far today ASX ....nice 20% return for a couple days hold ....was very close to buying a few yesterday darn it.......

[JBmurc]

I was so close to, if I wasn't already holding a loss in another share and unwilling to sell. I keep getting this opportunities and keep passing them up! Next leg of the fall I will hopefully be in ;)

PS. TRY.ASX could still be a buy if you're game...

Yes TRY good buying I ended up buying PAN yesterday 21.5c got a sell 23c for a quick $100 return after costs.....(didn't get much of my order filled before moving funds to PCL) paid 5.4c for PCL sold half 5.7c $300 24hr profit ...I like doing more day-swing trading during winter when I not working much .....(trying to make back some of my losses be it slowly)

[JBmurc]

Good man, treat it all like a cold shower and you'll get those losses back faster than you know it. Take those profits and run.

Yeah pays to rather than getting to greedy ...had I left my OGC order in place yesterday I'd be up 1k for 24hrs

[GR8DAY]

.....i see golds slipped back under the $1250 support level again..........where to from here chartists??

[GR8DAY]

...gold price up $25.......oceania (aust) up over 12% nz up only half that??

[GR8DAY]

...gold price up $25.......oceania (aust) up over 12% nz up only half that??

.....oops spoke too soon.....now on a par with oz. Another spike in the gold price like today and it'll be back over $3 b4 you know it!!

[GR8DAY]

.....OOPS OOPS , SHE'S FLYING NOW FOLKS, GET READY FOR BLAST OFF........GOTTA BE IN TO WIN ON THIS ONE!! (and yes, picked up a few this morning......finally)

[GR8DAY]

,,,,,,,,sometimes Moosie you've just gotta let yourself get a little excited and join in. Today I allowed myself that novelty........in and out and $850 banked.......not too shabby and a bit of fun on a rainy cold day!!

[JBmurc]

Yes bullish move more profits for the smart buyers of undervalued PM producers

[elZorro]

OGC up 8% in toronto over night. gold punching above 1323 key level as well. looks like some quick money out there to be made as a slight uptrend is in place

Gold moving sideways at the moment, and so is OGC. Have a look at the six month trend of OGC against the gold price, a very strong correlation, and it means investors are fairly neutral about OGC at the moment. This is better sentiment than usual, as OGC has drifted backwards against the gold price sometimes.

[GR8DAY]

gold moving sideways at the moment, and so is ogc. Have a look at the six month trend of ogc against the gold price, a very strong correlation, and it means investors are fairly neutral about ogc at the moment. This is better sentiment than usual, as ogc has drifted backwards against the gold price sometimes.


spot price firming right now.......currently up $6.80 and rising......might be the start of another run up after having settled down for the past week??

[GR8DAY]

.....hmmmm, now up $8.20 somethings starting to cook Moosie??

[elZorro]

NZResources must have sent Ross Louthean to Diggers and Dealers. OGC's CEO Mick Wilkes was a speaker.


Moving gold plant may extend Macraes mine life another two decadesRoss Louthean — 9 August 2013
A long-term concept for the Macraes gold project could be moving the substantial milling and mineral processing complex to another area to allow opening up of new gold mining areas that may extend the operating life for a further two decades.
Based on known reserves the Macraes operations have adequate ore to continue through until 2018.
Managing director Mick Wilkes told the Diggers & Dealers Forum in Kalgoorlie that it’s a significant option to consider.
He told NZResources.com that for a change of heart on mothballing the Globe-Progress open cut at Reefton in mid 2014 there would need to be seen a sustainable gold price of $NZ2,000 an ounce within the next six months.
Currently it was fluctuating between $NZ1,600-$NZ1,700/oz.
If there was a significant lift in the gold price then this would not only trigger a re-think but consideration for accessing some of the deeper ore below the originally-planned cutback of the open cut.
Also there were resources in the Reefton goldfield totalling about 1 million ounces.
Wilkes said should there be no improvement in the gold price over time then OceanaGold may consider putting the project up for sale.
This potential rationalisation does not include the separate Blackwater project at the old Waiuta mining camp. Exploration and project studies are continuing for a decline mine to be developed to access reserves below the old high-grade Blackwater mine workings which closed in the early 1950s as one of New Zealand’s leading historic gold operations.
Blackwater would stand on the figures to be produced by a definitive feasibility study.
Wilkes told delegates that the Dipipio gold-copper mine in the Philippines was commissioned on time for $US250 M after two years of construction start. This was above the original cost estimate, but he considered being on time was a more critical factor for cash flow.
Didipio is bringing down group operating costs primarily through the copper by-product putting gold output there into negative cost.
He told a media briefing that the gold price dive several months ago prompted immediate reaction because at one stage it represented a drop of $NZ500/oz and at least $NZ100 M less in income.
Despite that major gold price correction, the mines at Macraes were still in the money, though OceanaGold had altered its mineable targets to hone costs.
His personal opinion was that the gold price may go “sideways” for a couple of years partly through economic recovery in the United States. One positive for producers could be that this would then put more pressure on the $A and $NZ against $US.
The identified $US100 M reduction in costs take in the pause on the Reefton mine cutback, deferring the Frasers 6 open cut mine cutback, scaled back exploration in NZ, decreases in other capital costs, wage freezes (senior staff and directors have accepted a reduction), and reducing costs from contractors.
On Didipio production began on April 1 and six shipments of 5,000 tonnes of concentrates have been made to date, with the gold grade in concentrates increasing, and the copper grade lifting to between 26-28%.
Attachments

http://www.sharetrader.co.nz/icons/pdf.jpg
OceanaGold presentation at Diggers and Dealers. (Adobe PDF File) Download (2454KB) (http://www.sharetrader.co.nz/attachments/4826/DiggersOceana.pdf)

[elZorro]

double bounce off resistance last night for gold. very low volume has not confirmed this rally. being setup for the next leg lower. get your funds ready for that next short term bounce after!

Always hard to tell which way gold is going, even when it was on its 10 year ramp up. OGC are being careful with their costs in NZ, now they have a comparison with Didipio settings. I don't think OGC were great payers in the gold heyday of a couple of years ago, and they had relatively high staff turnover, probably to Aussie mines. It's a new situation now, and the belt is being tightened.


OceanaGold workers see rationalisations aheadSimon Hartley — 19 August 2013
Redundancies at OceanaGold Corporation (ASX, NZX & TSX: OGC) - whether from a sweeping company review or separate collective contract negotiations – are being seen as inevitable.
OceanaGold has been hard hit by spiralling production costs in New Zealand and softening global gold prices, though the significant lift to above $US1,400/ounce late last week may have been encouraging.
The company is closing in on a new pay deal with staff at its Macraes site following a month's bargaining over five expired collective contracts. Recently OceanaGold invoked a salary cut across the board for executives and senior staff.
Under OceanaGold's operational review, its Dunedin office is also under restructuring scrutiny, while the use of contractors at mine sites, or supplying sites, has already been cut back.
About $US100 million ($NZ125 M) in operational savings have been identified so far from the review, with the proposed mothballing of Reefton on the West Coast by 2015, leaving 260 jobs in question, and the scaling back of exploration and deferral of earthmoving work at both Reefton and Macraes.
The 23-year-old Macraes open pit and Frasers underground operations, which have given up more than 3.7 M oz of gold, employ 600-700 staff and is estimated to contribute up to $100 M to Otago's economy annually.
OceanaGold and the Amalgamated Workers Union (AWU) started collective agreement negotiations four weeks ago, with neither party releasing updates.
AWU spokesman Calvin Fisher was contacted on Friday and said he was “optimistic of a settlement” and that “offers on the table” from Oceana would be presented to staff for consideration/
“We could be in a position to seek ratification [of the offers] the following week,” Fisher said.
As negotiations were still underway, he declined to give any indication of Oceana's offer to staff, possible changes to conditions or whether jobs are at stake.
Fisher said the negotiations covered pit and underground staff, plant operators and maintenance, plus geo-technicians. Oceana has held recent meetings with office staff, with one source claiming up to 10 Dunedin office jobs may go, but with new roles being created at Macraes and Reefton, plus others at OceanaGold's Melbourne head office.
Another source understood up to 15 of the 60 office jobs face restructuring. OceanaGold's head of business development Darren Klinck was contacted in Melbourne and asked about the 10 Dunedin jobs, and whether they were being redistributed elsewhere, but he responded with few details.
“A proposal to staff in Dunedin has been submitted discussing a possible restructuring of some roles to improve efficiency at the mine sites,” he said.
The company-wide review of its business units was ongoing, no decisions had been made and the “initiatives” would continue to be discussed with staff “over the coming weeks”, Klinck said.
While the review has left staff unsettled, the company’s gold and copper operations in the Philippines are gathering impetus and are contributing consistently to its bottom-line.
Earlier this month OceanaGold lodged resource consent applications in Otago for a proposed Coronation pit adjacent to Macraes, which could extend mine life a year, to 2021.
*Simon Hartley is senior business reporter for the Otago Daily Times and assistant chief reporter for the Otago Daily Times.

[baller18]

crazy!!! $2.5!! What????

[elZorro]

OGC has dropped a massive 9.3% on the TSX overnight, despite gold going up. They've been holding tight with the gold price for months. There must be some bad news brewing.

[Hoop]

The drop can be explained by a combination of negative factors all happening at once and overpowering the gold price increase last night (NZ time)

Bad day for Equities globally last night NZ time
Big drop in the NZ$ last night
Money exiting equities and emerging countries to safe havens (USA) India the gold loving country has an emerging market status.
Emerging market problems seem to be having a slight effect on NZ (NZ is not an emerging market) atm.

TA wise OGC has hit a major resistance point $2.60ish...Its huge run up with high volume recently looks exhausted.
It is a stock that seems to be attracting the shorter term investors noted by that flat line look OBV has under recent rapidly rising prices/high volume, which indicates no one is accumulating much, just trading.
This stock has a high incidence of gapping (up & down) as seen on the chart below.
Today has all the factors required for locking in capital gain e.g profit taking...

As for the longer term the yesterdays chart is still showing promise

http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosettings=1&symb=NZ%3aogc&uf=0&type=4&size=3&sid=2768474&style=320&freq=1&entitlementtoken=0c33378313484ba9b46b8e24ded87dd6&time=8&rand=45819011&compidx=aaaaa%3a0&ma=0&maval=9&lf=1&lf2=1024&lf3=8&height=820&width=720&mocktick=1

[elZorro]

Thanks for that, Phaedrus, err, Hoop. I still think there might be more to it, 10% is a big drop, I wonder if OGC has any other big projects or costs that they think they might be able to nobble the shareholders for. If it is profit-taking, the price could revert quickly to a multiple of the gold price, especially if gold continues to improve. I'm still sitting back here and watching.

[BigBob]

Thanks for that, Phaedrus, err, Hoop. I still think there might be more to it, 10% is a big drop, I wonder if OGC has any other big projects or costs that they think they might be able to nobble the shareholders for. If it is profit-taking, the price could revert quickly to a multiple of the gold price, especially if gold continues to improve. I'm still sitting back here and watching.

I don't think you should worry too much about OGC in this environment.... US and TX gold juniors got hammered overnight, despite the rise in POG.... I suppose the $1430 per ounce level is crucial, and breach of this may finally turn sentiment around.... here's hoping anyway... By the way, the current trend of the POO doesn't help either..... anyway, I think it is just the overall multi-year, negative sentiment for junior gold stocks that still prevails....

[JBmurc]

Probably good for a very short-term bounce in PoG...

http://www.stuff.co.nz/world/americas/9223572/US-govt-heads-for-crisis-over-Obamacare

I agree just don't know which PM play or BEAR to Buy ..TRY,OGC ...

[JBmurc]

TRY would be the better bet IMHO, not looking so flash right now though!

Decided on OGC(after looking at a Doz or so Goldies) now hope my order gets filled

then a close above 1.70 asx and we should get another good run-up ..20% profit would be nice for Oct

[JBmurc]

NZX or ASX? Where you sitting at if you don't mind me asking? ;)

Asx -- but only cause that's where I have my funds ...
Looks like I only got a quarter of my order 1.635 close 1.665 hopefully get the rest tomorrow
Also buying TRY.asx

[JBmurc]

Got my fill today 1.62 ....should have waited with a 1.58 close on ASX ...good to see Gold spiking higher 1334 be good to see this continue

[JBmurc]

Got my fill today 1.62 ....should have waited with a 1.58 close on ASX ...good to see Gold spiking higher 1334 be good to see this continue

Well wasn't that bad timing close today 1.56 asx still will see how these runs with the debt ceiling ...

but how can you not like OGC at this levels with the Didipio Mine estimated to be one of the lower cost gold mines (net of by-product credits) globally....fy 2013 target 285-325koz large resource base ...just need that GOLD price to kick into gear

[JBmurc]

gold more divided on price direction than a Labour party binge drinking session!

YES it sure is esp. round the US Nymex trading sessions

[JBmurc]

I'm overall disappointed to see OGC again pressured downwards(been it on low volume) ..I think the Pacific rim takeover as being very good move OGC aren't stupid they haven't been producing GOLD for 20yrs not to understand the industry and have a forward plan which IMHO won't be here in NZ with low grades and higher costs to operate but these emerging economy's with very high grades and lower costs of labour >>
-Of course the PR takeover comes with a Arbitration claim Being heard at International Center for the Settlement of Investment Disputes (ICSID) in Washington, DC.but is it's Final phase of Arbitration (I don't think OGC wouldn't have made the move if they didn't think the issues would be sorted)....Overall OGC are looking at picking up a high-grade resource for only $7per oz far better than years of exploring spending 10's millions and time(time is money)
I wouldn't be surprised to see OGC fast track this new takeover at the cost of some or all of NZ operations being sold down or even listed into the new company etc

[Bobcat.]

I also was suprised to see the sp drop below early August's support at 170c. I've bought some more today after the drop. I like this stock. Their Pacific Rim acquisition moves them into the $650-$800/oz low cost diggers on the ASX, in good company with Troy, Alacer, Perseus, Gryphon, Silver Lake, Kingsgate, etc, and in my view with superior management to most of them.

I would not be surprised if we see this stock trading much higher once FP or some other analyst group pushes out a revised recommendation next week.

BC

[JBmurc]

I also was suprised to see the sp drop below early August's support at 170c. I've bought some more today after the drop. I like this stock. Their Pacific Rim acquisition moves them into the $650-$800/oz low cost diggers on the ASX, in good company with Troy, Alacer, Perseus, Gryphon, Silver Lake, Kingsgate, etc, and in my view with superior management to most of them.

I would not be surprised if we see this stock trading much higher once FP or some other analyst group pushes out a revised recommendation next week.

BC


Yes I only wished I didn't buy more last week when I could have brought even more today .... looking forward to this downtrend ending like the last two have in the last year with strong double bottom and a move back on a strong upward trend north of $2 ASX....

they have the assets -now near 10moz Gold eqif resource
The history -23yrs of gold production experience over 3moz+ produced at Macraes alone....
The Future >>> mid cap high grade low cost Gold/Silver/Copper producer with 1000+ staff ....a real Blue chip in mining PM sector

[JBmurc]

I agree with you JB, but you need to remember the elephant in the room (eg tapering and a concordant PoG fall). I know you hold the view that gold should be going up right now, but you need to realise that fighting the market will not work. OGC was the darling of the market this time last year with ForBar calling for over a $5 NZD shareprice. now look at it. the tide will take the boat in, and the tide will take the boat out, sometimes regardless of the individual companies financials. in saying that, gold has failed to breach any resistance level and remains in a downtrend, even during a potentially catastrophic political standoff. that speaks volumes as to where gold is heading soon. caution and skeptecism are your best friends here as goldied are still the most hated sector right now.

I have a feeling I'm going to see only cents in front of the OGC price before I buy again.

Maybe fact is OGC has 4 different mining operations currently producing metals,,, if Gold did dive to stupid low levels (current Gold price is equal to $400's in 1980's dollars currently) say it went to $700oz and stayed at this levels for years etc OGC would still survive unlike the vase majority of the PM miners worldwide as they have a higher grade/lower cost structure mine in the Philippines that would still be profitable at lower metal prices..they also no longer have hedges ...they do have debt but as long as they can afford the interest and be able to roll over the debt etc
Overall I see OGC a fairly safe longer term investment (yes I know I'm more of a ST investor)
Gold would have to crash with much higher interest rates to put this mid-cap in the trouble the market seems to think is happening

[JBmurc]

4897

crazy China Imports of GOLD aren't slowing down yet GOLD is hated by the west




Yeah OGC seems to trend rather than chop trade .....gutted as I was 50-50 on putting my funds into BEAR.asx(was my first choice at the time) decided OGC had some upside to come from Debts issues -Gold increased last time etc >>>yet another 50-50 stuff up call of late ....

Will 1.30 asx hold and form some support ...larger volume today mostly likely on the back of lower Gold price and OGC change of direction to lower cost/higher country risk future operations ?

Now we know OGC all in cost average across all four operations are round $1000oz USD
NCM is round $1400oz
EVN $1430oz
SLR $1325oz

[JBmurc]

OGC finding some support low 1.30's asx low 1.50nzx .....? Copper prices holding much better than PM

[JBmurc]

TGR: Can you bring us up to date on some of the companies that you talked about last time that you still like and think have potential?

"I focus on miners that can be self-funding and do not need to come to the market to issue shares that dilute existing shareholders."
CL: OceanaGold Corp. (OGC:TSX; OGC:ASX) is doing quite well. It is starting up a world-class Didipio mine in the Philippines, and everything is going quite smoothly. OceanaGold has about $50 million ($50M) of debt due at the end of this year, but it has already arranged a credit line against that just in case it needs to pay it off. So OceanaGold is quite self-sufficient.

The company is guiding about 300,000 oz gold production this year at $650–800 cash costs. Its costs are highly influenced by the New Zealand dollar, which is dropping. The Philippine peso is also dropping. If energy prices drop, that will also help it a lot. So its costs can change with the market conditions. Next year, OceanaGold will be in a much better situation with the Didipio mine fully commissioned, and I believe it will be looking at a dividend policy next year.

http://www.theaureport.com/pub/na/five-miners-chen-lin-expects-to-buck-the-trend

[Bobcat.]

Yep, this is good stock - I've been buying more (averaging down)...and look, the POG has started heading north.

If that holds overnight on the NYMEX, tomorrow's trading could be positive... but until the Pacific Rim El Dorado arbitration against the El Salvador government is judged in OceanaGold's favour with or without the 300m losses sought as damages (due Jan 2014), I expect there will be somew overhang and resistance to the sp rising quickly.

BC

[JBmurc]

Yep, this is good stock - I've been buying more (averaging down)...and look, the POG has started heading north.

If that holds overnight on the NYMEX, tomorrow's trading could be positive... but until the Pacific Rim El Dorado arbitration against the El Salvador government is judged in OceanaGold's favour with or without the 300m losses sought as damages (due Jan 2014), I expect there will be somew overhang and resistance to the sp rising quickly.

BC

Be surprised if a 10mill purchase of asset worth least five times that will affect OGC too much going forward as say the Gold/cu price also lower oil price would help OGC....i.e we see Gold close the year $1450+ etc then OGC will be over $2 before arbitrationis know

[JBmurc]

Great start to the Day up 7.8%

[JBmurc]

You'll be glad to know I'm in JB :)

very good now bring on a few more strong spikes higher for the Gold price and we'll both be happy

[winner69]

Not much action today for OGC

[Bobcat.]

Not much action today for OGC

Price of Gold (PoG) is flat, which is not bad given that Equity markets rose last Friday (CAC 40 up 1%, etc). When they go off, I expect the PoG to lift again (it has now broken through a month long bearish downward trendline). OGC meanwhile is heading toward its Friday high with ASX trading up 1.8% at 145c and NZX bids now matching at 164c. Most analysts agree that this is a well run company and well under fair value but a) the PoG will need to hold above 1300USD, and b) the court proceedings againgst the El Salvadorian government will need rule in OGC's favour (expected January) re the Pacific Rim El Dorado arbitration.

My expectation is that if the PoG drifts between 1300 and 1330, OGC will likewise trade between 160 and 180 through to January. If however the PoG spikes and holds above 1330USD then watch this Gold digger fly (and it won't be the only one).

BC

[GR8DAY]

...Gold Price slowly firming and SP "creeping" up slowly in tandem (which is unusual for OGC!)......might dip my toe in again. Any calls anyone on direction of GOLD at the moment??

[Logen Ninefingers]

http://online.wsj.com/article/PR-CO-20131030-900285.html?dsk=y

[Bobcat.]

...Gold Price slowly firming and SP "creeping" up slowly in tandem (which is unusual for OGC!)......might dip my toe in again. Any calls anyone on direction of GOLD at the moment??

Have a look at the Gold thread on the ASX forum. Also:

http://www.kitco.com/

[elZorro]

http://online.wsj.com/article/PR-CO-20131030-900285.html?dsk=y

28% net profit on turnover for OGC, based on the super profits at Didipio, that has to be good. And US Gold is just starting a ramp back up, or so I would hope.

OGC has been following the gold price for a long time. This might see a mini-break occur overnight and tomorrow, depends on how much of the profit is free cash. Based on their history, if the shareprice goes up too well, they'll quickly flog some of the new capital to pay off debt, by issuing new shares. Management don't appear to favour bank loan facilities. They are already warning that they'll use profits to pay down debt.

[Bobcat.]

OGC has revised guidance upward on 2013 copper production (from 15-18 tonnes to 18-20 tonnes) and have reported 3rd quarter gold production of 75koz with very good cash costs (reduced from $650-$800/oz to $550-$650/oz) although I'm still looking for their All-in-sustaining cost figure - anybody see it?

EBITDA of $76m and NPATof $44m (compared to $43m and $71m (loss) last year).

Looking to strengthen further their balance sheet by reducing debt.

All good. Anyone else joining the company webcast (10am NZ time tomorrow)?

BC

[elZorro]

On the TSX overnight, OGC up by about 17%. The gold price got close to $1360 before the US market started playing.

[GR8DAY]

......had a quick read, all sounding very very good for future growth (profits).......the numbers are now lining up. GOING LONG ON OGC.

[GR8DAY]

ps.......the "GOTOMETER" was telling me all this 3 days ago. Thankfully I listened,acted AND topped up!

[GR8DAY]

.....might see even more action when Oz opens in half an hour or so??

[GR8DAY]

.......Yep Oz opened strongly also, up 10.5% as I write.

[GR8DAY]

......... currently up over 17% in Oz. Wasn't that long ago OGC was trading at around $3.......(I know this cos I bought some, ouch!)

[Bobcat.]

Time to start taking profits as gold fails to capitalise on Fed's accomodative stance and further bond-buying is a no-go:

[]

Many years ago I would've but now I never take profit on the first day of a momentum shift, like we've seen today with OGC. On the third day, perhaps...but never on the first - there is more grunt yet in this digger.

[GR8DAY]

Very true, but look at the PoG; falling amid more taper talk from the Fed. The latest rally has been on very low volume (PoG, not OGC). There is no conviction in that rally and I'm afraid we might see $1000 gold by December. I've alreayd taken my lot off the table, better places for it now in safer havens...


....Moose I think this jump is far more than a link or perception to a rising (or falling) GP. This latest report makes for very positive reading.....the numbers can't be ignored and the current scramble for stock is in recognition of the promised turnaround and the flowing revenues from Didipio. Costs down/revenue up..........SP heading north and still a long long way to go. $3buks in no time........you know how this one fires when things line up.

[Logen Ninefingers]

Re the Fed's comments, they are just trying to go "boo" and scare up the kind of reaction that they want. It's all about endlessly trying to get the market used to a day when tapering will finally be here. Investors won't be worried about 'talk' when tapering ends, they will be looking at the profit announcements & will react accordingly. Supernormal profits are being sustained by the Fed's intervention. Meanwhile the debt ceiling / budget fiasco will shuffle back into view in a short while, with Repubs and Demo's a canyon's width apart - the Fed is looking around and pretending it cannot see the elephant (and the donkey) in the room.

[Bobcat.]

I'll be continually moving a sell order up 10c above the market price, anticipating a spike sometime early next week. There are some big buyers coming in on this stock (today's volume is twice this year's VA) and they will keep lifting this stock until either a) a big seller arrives to dump (not likely short-term) or b) the big buyers complete their order(s) with a spike (which is where my offer is gonna be hit).

That's my plan, and I'm sticking to it. Of course a selling strategy is just as (perhaps more) important than a buying strategy, and today was not the time to sell. It may quite a few days (or possibly weeks depending on the PoG) before it is.

BC

[Bobcat.]

Still holding, and moving my offer up a few notches daily. ASX closed on a high of 179c. All very bullish given the sliding PoG. It helps when a big boy comes to town laying a fat wallet on the table...

BlackRock are buying.

http://www.asx.com.au/asxpdf/20131101/pdf/42klfhfwqtdjkm.pdf

[elZorro]

I am worried about OGC. Worried that I didn't buy a few weeks ago. Wondering where the new valuation on the share is coming from.

Because even though the PoG has played around, but is back where it was around the time of the latest quarterly announcement, OGC has seen a strong and continuing shareprice movement upwards. The company has certainly been revalued by the bigger players. But at what, I wonder?

Current MCAP is C$575mill, and the company has been over the $1bill figure in NZ$ once or twice. The latest quarterly report shows a clear NP of $43.7mill. This is an annual clear profit, if it keeps going, of $175mill. If the PoG increases, it could get a lot better.

If someone who knows how to knock out an NPV could update this thread on where the price is heading, it would be much appreciated. OGC normally strongly follows the gold price over a short-term window, unless there is any positive or negative sentiment.

[Bobcat.]

I am worried about OGC. Worried that I didn't buy a few weeks ago. Wondering where the new valuation on the share is coming from.

Blackrock and others are buying mainly as a result of OGC's 3rd quarter results published a week ago, in particular its cash acosts and all-in-sustaining-costs decreasing (to $271/oz and $950/oz) but also its increased guidance on Copper production and being on-track with its gold production. I suspect also there is an implied endorsement of their takeover of Pacific Rim. If you think the sp is healthy now, wait until (probably mid-January) if and when the legal case with the El Salvadorian government is settled in favour of Pacific Rim/OGC.

http://www.asx.com.au/asxpdf/20131031/pdf/42khfn1mnzclxj.pdf

Discl: Holding (still) but plan to sell half once the Price of Gold has another good run, and then buy back sometime in Jan.

This stock has great potential mainly due to the quality of its management, increasing production guidance and low operating costs.

[Logen Ninefingers]

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.