For those holding or contemplating buying, it would pay to read...

For those holding or contemplating buying, it would pay to read and understand what the company is saying in this note to the September accounts.

Oceana produces a good volume of gold and it might have a future if it clears the fx hedging and sells/ JV’s/starts Didipio – but the immediate challenge is to survive. It’s not being over simplistic. Be wary.

The company states:

1 BASIS OF PRESENTATION AND GOING CONCERN

For the three and nine months ended September 30, 2008, the Company incurred a loss of $10.9 million and $41.3 million respectively. As at September 30, 2008 the current liabilities of the company EXCEED current assets by $45 million and the company has capital commitments of $6.7 million. The company has cash on hand of $17.2 million and based on current cash flow estimates additional funding may need to be secured over the next twelve months. In the absence of securing additional funding, these circumstances generate SUBSTANTIAL DOUBT as to the ability of the Company to meet its obligations as they fall due and, accordingly, whether the application of the going concern principle is appropriate.

The Company is pursuing a number of alternatives to secure additional capital including, a combination of asset sales or restructure, additional funding facilities or equity raisings. Nevertheless, there is no assurance that these initiatives would be successful or sufficient.

The Company's ability to continue as a going concern is dependent upon its ability to generate positive cash flows - either from operations, additional financing or the sale or restructure of assets. These financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary where the going concern assumption is inappropriate. These adjustments could be material.

Discl: no direct or indirect interest in Oceana. Highlighted solely for posters info.