OGC had a strong 4th quarter and appears to continue to fund Didipio from the cash flow generated from the N.Z. mines. Gold production was up substantially from the 3rd quarter (65,750 oz vs 59,090 oz). Despite higher production, total operational expenses decreased from $57.5m to $55.6m. Based on 65,750 oz produced, cash costs decreased by $111 per oz. Assuming all gold produced had been sold at $1705 per oz, a cash flow estimate is as follows.
REVENUE 112.1M OPERATIONAL EXPENSES 55.6M ADMINISTRATION 4.0M LEASE PAYMENTS 4.0M NET INTEREST 3.3M N.Z. MINE DEVELOPMENT 11.0M EXPLORATION 3.4M
SURPLUS PRIOR TO DIDIPIO 30.8M DIDIPIO DEVELOPMENT 30.9M NET DEFICIT .1M
With the Aus. $ rising from $.96 to $1.01 U.S. during the quarter, there will be some FX gains on the substantial cash holdings.
OGC Price at posting:
$2.38 Sentiment: LT Buy Disclosure: Held
