Ann: OceanaGold Q3 2019 Results Presentation, page-6

Net debt increased by USD38m during this quarter to $140m, so interest payments are higher. They had been steadily reducing a significant debt burden but now they are going backwards. Thanks to the high gold price there was some useful net cashflow. They failed to make a profit because (not counting Dipidio issues) the profit figure adds in the costs of depreciation, amortisation, as well as tax.

OGC have been spending a lot on capex for years and will continue to do so because even once Haile is finally done, there is still more capex in NZ - they will need to do something about replacing the production from Macraes once it finally runs out of ore, and the story is they may move the plant to a deposit some 75km away. Waihi will need to develop some new underground mines.

Costs are still high when compared to the better Oz mid tier operators, but fortunately the USD POG held up this quarter at around USD1500.

With all the capex over the years I see OGC is being mostly a profitless miner generating little for shareholders. It has some value at higher gold prices given the ounces it pumps out.

I hope they get a favourable resolution soon on Dipideo.

Its hard to value this beast.

GLA.

loki