This isn’t entirely unexpected, I will wait for the full details...

This isn’t entirely unexpected, I will wait for the full details before stating my opinions one way or another. For the mean time, here’s two things the punters should keep in mind.

One, a capital raising at a discount doesn’t need to permanently subdue the share price. Check out AVZ, posted a CR about 3 weeks ago at a discount but returned to its pre-CR share price ($0.30) within a few weeks. What really matters is sentiment, which remains bullish for OGX due to all the good news we have received, and are expected to continue to receive.

Secondly, looking beyond the near future shows that this company is still incredibly undervalued. I know any old poster can say that but I have some modelling that I feel can back that sentiment up. Based on the following very negative assumptions, here is the value I derive for gold production at Cascavel alone (not including any of the other tenements, or credits from silver or anything else).

Assume:
-Gold price per ounce at $1,700 AUD (current price)
-Au per tonne at 36.17 grams (our current average yield from all samples to date)
-Daily tonnage at 210 tonnes (less than half of the medium target stated by Richard Crew, also matches the 50k per annum production specified by current exploration permits).
-Production only occurring on 20 days per month, which IMO is low-balling it.
-AISC at $1200, which I believe is very conservative given that Richard Crew has stated an expected total cash cost of $500-$600. Not to mention the tailings pile full of gold, which should have a far far lower processing cost due to the fact that it is just sitting there.
-A P/E ratio of 4, which low in relation to other gold miners.

This gives a share price of $0.12 on a fully diluted basis (pre-CR obviously) and including full debt repayment to Cartesian Royalty Holdings.

Now try these assumptions:
-500 tonnes per day (likely based on fourth hammer mills, plus this is the stated medium target of Richard Crew. Assumes we get necessary permits, which I expect based on recent Brazilian regulation changes to foster more mining).
-Same gold price and Au grams per tonne.
-AISC of $900.
-Production 25 days per month.
-Still a P/E ratio of 4, but this is likely to increase as these other assumptions are confirmed. For now leaving as it is.

This gives a fully diluted share price of $0.60

And this is just Cascavel, and just gold. You can work out what success at other tenements would mean.

Don’t freak out, and DYOR guys.