Ann: OceanaGold Announces 2018 Guidance, page-4

I guess I am cautious in my old age, but I decided to sell some OGC shares on the open in case there is some indigestion by the market of the latest announcement.

I was uncomfortable with the high capital spend in 2018, and concerned about its continuation in the subsequent 3 years due to work on the various mines -

1. upgrade of Haile
2. I think Dipidio underground only gets finalised in late 2019
3. Development of new mine/s for Waihi (need to firm resource/reserves)
4. A whole new mine is to be developed for Macraes some 70kms from where the plant currently stands and its to be moved to the new mine (they need to first confirm resource/reserves and get all sorts of approvals as well)

So while OGC is doing what it needs and should be doing and is a cash cow, its possible that the share price will stagnate until mid 2019 unless the gold price does a runner.

Forecast costs and ouput for 2018 looked OK to me to justify the current share price or somewhat higher. but the drain on cashflow from capex means that there will be little surplus for shareholders. Debt should not be a problem in 2018.

Just putting it out there. Happy to be told otherwise.

loki (chicken little freed up some money to buy goldies in case the gold price down.)