Time to buy, page-12

It is impressive stuff indeed.
Generated net cash flow of $85m in the fourth quarter, of which:
$73m was used to reduce the drawn facility debt from $273m to $200m
$12m was added to the bank raising cash on hand to $73m from $61m

Liquidity on hand;
Cash $73m
Manageable investment $70m
Undrawn facility $30m

Debt $200m
Equipment leases $43m

Haile has achieved commercial production with strong higher production expected in 2018 due to above name plate capacity, strong recoveries and planned expansion . The substantial reduced AISC should generate healthy margin to retire debts.

This in conjunction with higher grade production from coronotion north at Macreas will certainly see us debt free by 2019.

We have generated surplus free cash flow of $85m to pay debt of $73m and add $12m to cash on hand, I would anticipate another three to four quarters to be debt free.

Average OGC share price was $4.45 when average gold price was $1309
Average OGC share price was $3.35 when average gold price was $1281

I strongly believe that a rerating is justified taking into consideration the rising gold price to $1400 this year, strong performance of Haile and Macreas in 2018
Further reduction of AISC due to
decrease interest charge on the reduced debts.

$5 this year is possible and $4 by February is fair, God ‘s will.

My thoughts.