OCEANAGOLD CLOSES OUT HEDGEBOOK TO CREATE 100% UNHEDGED GOLD PRODUCER
(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the Company) is pleased to announce that the Company has successfully closed out all remaining hedge facilities resulting in the Company immediately becoming a 100% unhedged gold producer.
In conjunction with the previously announced institutional equity raising that was undertaken in February and overwhelmingly approved by shareholders on March 25th, the Company has bought back all remaining fixed forward contracts and call options that were set to mature throughout the remainder of 2010. In total, 74,880 fixed forward contracts averaging NZ$773 (US$549) per ounce and 78,018 call option contracts averaging NZ$1062 (US$754) per ounce have been closed out for a total cost of C$73,005,298 (US$71,612,357).
The hedgebook closeout means that OceanaGold will now sell all of its gold production into the spot market for the remainder of 2010 resulting in cash operating margins increasing by approximately 200% compared to recent margins.
OGC Price at posting:
$2.34 Sentiment: LT Buy Disclosure: Held
