Looks like its above the 20 and 34 day MA which has not been for...

Looks like its above the 20 and 34 day MA which has not been for quite a while.

Maybe has bottomed now.

https://unauthorised investment adv...-could-be-the-worst-house-in-the-best-street/

and

https://seekingalpha.com/article/4315647-oceanagold-good-proxy-for-gold-bull-market
OceanaGold A Good Proxy For Gold Bull Market

Jan. 7, 2020 3:20 PM ET
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14 comments

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About: OceanaGold Corporation (OCANF), Includes: BKRRF, EQX, GLD, LMCNF

Ron Struthers

Long/short equity, special situations, contrarian, Growth
Struthers Resource Stock Report


(1,580 followers)
Summary
More QE as the Fed continues expansion.
Fed policy and global tensions will push gold higher.
OceanaGold is undervalued compared to peers.
Blackrock Gold releases the first drill results.
Leagold spikes after the merger with Equinox.
The Fed has added almost 1/2 trillion to its balance sheet since September 2019. These funds have helped push equities higher and this new round of QE is bullish for gold (GLD).

My last comment on gold in late December was that a break above resistance around $1430 would mean a test of the $1670 highs and that is what happened. Comex Gold price shot up in price, as high as $1590 this past Sunday evening at 5 pm, a little delayed response to the US eliminating the Iranian military leader Soleimami. As often happens, the price was knocked down at the US Comex open on the heavy volume between 9 AM and 9:30 AM Monday morning but only down to $1562.

Oil prices jumped Sunday evening as well with Brent crude topping $70 a barrel for the first time since September. I believe oil needs to go over $77 a barrel to prove a larger rally is underway that would cause an inflation rise, damage economies, and stock markets. I plan a more in-depth look at the oil market, but one thing is certain. Iran knows that besides terror, higher oil prices are a way to hurt Americans driving their gas guzzling SUVs.
And the other bullish factor for gold I have been harping about since I predicted the peak in interest rates is not only lower rates but we are also heading to 'Zero'. Seems the Fed now agrees. Low global interest rates are here to stay "These factors are basically the hand we've been dealt for the next five to 10 years." It is important to stick to their 2% inflation target, according to New York Fed President John Williams.

The escalation in Iran should be taken very seriously. I have no doubt this will lead to much more conflict. Some are talking an eventual WWIII and now more than ever gold and gold-related investments should be part of your investment portfolio.
I think a great buy among gold stocks now is OceanaGold (OTCPK:OCANF). Most volume trades on Toronto under symbol OCG.
Shares outstanding - 622 million.
OceanaGold has a very good record of return on investment, profits, dividends, and balance sheet management, until late this year. OceanaGold operates four mines with three of them in very save jurisdictions - Haile in the USA, with Waihi and Macraes in New Zealand. Their 4th mine is in the Philippines, called Didipio and, unfortunately, had a set back that started July 1st of this year.
The company was applying for the mine license (FTAA) renewal, but local government units from the province of Nueva Vizcaya impeded access to and from the mine site in response to an unlawful directive from the Governor to restrain any operations of the company. The regulatory authority over the Didipio mine rests with the national government. The local government code of 1991 (Republic Act No. 7160) does not grant the power or authority to the provincial Governor or any local government officer to restrain any aspect of the Didipio operation. A legal process was started, so normal operations could resume, but this is still going through the courts. With supply restrained to the mine, they had to shut down operations at Didipio in mid-October 2019.
Since July, the stock has slid from around $3.00 to a recent low of $1.65 as a result. This will be a temporary problem. I expect the FTAA to be renewed given it has received support from the Department of Natural Resources and Mining and Geosciences Bureau and is awaiting sign-off from the Office of the President. There has been slow progress that one can expect dealing with courts and government. Therefore, I am predicting Q2 or Q3 2020 before this is resolved. As is the case with these sorts of things, a carrot will have to be given to the local government. In the end, these things are always about getting some $$.

I believe this is an opportunity to buy a position very cheap in this stock. Given this risk, I also consider that the majority of the company's gold reserves are in the safe jurisdictions. This graphic is from the company presentation and reveals that only 1.2 million ounces of reserves or 21% of total reserves are at Didipio in the Philippines. M&I resources at Didipio are 1.3 million ounces representing 15% of total resources. The graphic also shows a nice breakdown of the company operations and the revised all-in sustaining costs that have been estimated much higher, adjusted for no production at Didipio.

Their flagship or most important asset as this time is Haile in South Carolina U.S. This is the project that will propel some growth over the next few years. All-in sustaining costs have been high because this reflects capital for development and expansion.

This next slide is the projection for production growth from about 130,000 ounces in 2018 to 200,000 by 2022.

OceanaGold reported a loss in Q3 announced October 31. Third quarter revenue of $133.6 million, EBITDA of $33.9 million, and a net loss of $21.9 million (including $16.6 million of unrealized losses on undesignated hedges after tax). Third quarter consolidated AISC of $1,122 per ounce on sales of 94,347 ounces of gold and no copper sales. Oceana did not record any gold or copper sales from Didipio during the quarter and that adversely impacted financial results. OceanaGold ended the third quarter with approximately $56 million in cash, available liquidity of $106 million, and a modest level of debt.

A look at Q2 results and you can see more clearly the negative impact of Didipio. Second quarter revenue was $186.0 million with EBITDA of $70.7 million and a net profit of $15.3 million.
Conclusion

The stock has priced in all the negative news from Didipio. It is in everyone's interest to resolve the issues here as the mine is very important to the local economy and jobs. This will get resolved in 2020, and at some point, the stock will reflect this. This is a chance to buy a good gold producer cheap. This slide from their presentation sourced at RBC Capital markets points out the large discount.

On the chart below, I highlight a morning doji star reversal pattern in the circle. This also occurred on high volume, much more pronounced on the Toronto market where 5 million shares traded on that day of the reversal.

Leagold (OTCQX:LMCNF) spiked after news on December 16th that they are merging with Equinox Gold (EQX). My more in-depth article from October can be found here. I hope some of you picked up the bargain then or on the dip in November as the recovery has been dramatic.
The combined entity will continue as Equinox Gold and be headquartered in Vancouver, Canada. All dollar amounts are in U.S. dollars unless otherwise indicated.
Transaction highlights:

• Gold production of 700,000 ounces in 2020, increasing to one million ounces annualized production during 2021 and beyond, based on analyst consensus estimates
• Diversified operating platform with six operating mines in the United States, Mexico, and Brazil
• Substantial gold reserve and resource base
• Robust revenue, EBITDA (earnings before interest, taxes, depreciation, and amortization), and free cash flow
• Concurrent $670 million financing package: an at-market $40 million equity investment from Ross Beaty, a new $130 million convertible debenture issued to Mubadala Investment Company, and $500 million in underwritten commitments from a syndicate of lenders to refinance existing credit facilities
• Strong balance sheet and operating cash flow fully fund growth from two development projects and two expansion projects
• Operating and administrative synergies in excess of $10 million annually
• Pro forma market capitalization of $1.3 billion providing scale, liquidity, and rerate potential
• Board of directors, led by Mr. Beaty as chairman, will have eight members with four from each company
• Experienced, integrated management team led by Neil Woodyer as chief executive officer, Christian Milau as executive vice-president, corporate, Attie Roux as chief operating officer, and Peter Hardie as chief financial officer.

Pursuant to the transaction, Leagold shareholders will receive 0.331 of an Equinox Gold share for each Leagold share held. For those that have followed mining a long time, Imagine having Ross Beaty and Frank Giustra together. This is what the two of them had to say about the merger.
Ross Beaty, chairman of Equinox Gold, stated:
This merger will create one of the world's largest gold companies operating entirely in the Americas. In addition to having strong financial and operating metrics, our large scale will provide improved liquidity, greater asset and country diversification and a lower-risk profile for all shareholders. This is the kind of gold company investors want today and I'm very pleased we are combining forces to achieve it."
Frank Giustra, chairman of Leagold, stated:
The combination of Leagold and Equinox Gold will deliver on a promise we made to our shareholders when we launched Leagold three years ago: to create a major gold producer in a short time frame in anticipation of a new phase to the gold bull market that started in 2001. I will be stepping down as chairman and director to focus on my global philanthropic work but will remain an enthusiastic shareholder as I believe that together, Ross Beaty, Neil Woodyer and their management team will continue to grow Equinox Gold and deliver value to our shareholders."
The stock is being re-rated higher and both Leagold and Equinox have broken out on their respective charts. Over the medium and longer term, I expect the combined company under Equinox will perform better than peers.

I highlighted Blackrock Gold (OTCPK:BKRRF) back in a July 2019 article before they started drilling on their Silver Cloud Project in Nevada.

On Monday, Blackrock announced the first drill results and geologic interpretation from parts of drill holes 1, 2 and 3, from that program.
As is often the case in the past few years, juniors are sold off on drill news, good or bad. These are very good results because it provides more substantial results that their east-west vein orientation is correct. And more drill assays pending.
Highlights are:

• Five HQ core holes were drilled at Silver Cloud totalling 2,207 metres (7,240 feet). Partial assay results are received for SBC19-001, SBC19-002, and SBC19-003. Drilling focused on evaluating a potential east-west vein system between the Silver Cloud mercury mine and Northwest Canyon
• Drilling confirms the existence of an east-west low-sulphidation epithermal quartz veining system and potential for vein-hosted gold and silver as well as mineralized rhyolite porphyry intrusives
• SBC19-001, adjacent to the Silver Cloud mine, intersected 0.7 metre grading 3.95 grams per tonne gold starting at 290 metres (951 feet). This drill hole followed up on historic Teck drilling from 2000
• SBC19-002, drilled in Northwest Canyon (1,550 metres west of the Silver Cloud mine), intersected a 1.5-metre vein zone grading 8.32 g/t Au starting at 263 metres (864 feet). This drill hole followed up on historic Placer Dome drilling from 2002
• Downhole acoustic televiewer data confirmed the gold mineralization is aligned with east-west structures offset by north-northwest-oriented postmineral faults
• The breccia, veins and associated fine-grained sulphides, in addition to trace element geochemistry, indicate drilling encountered the upper portion of a low-sulphidation epithermal gold system
• SBC19-004 and SBC19-005 have significant alterations starting at approximately 335 metres
• SBC19-004 encountered quartz veins and veinlets below 381 metres. Assays are pending

There are more drill assays coming from drill holes SBC-001, including the bottom 135 metres, and SBC-002. Assays for drill holes SBC-004 and SBC-005, both of which have significant visible alteration starting at roughly 335 metres are also pending.

Most trading is on the TSXV, so I am using a C$ chart and the action is very significant as well, pointing to a good buying opportunity. The stock sold off on heavy volume of 1.16 million shares, the highest volume since Oct. 15, 2019. It also exhibits pretty close to a candlestick hammer, another bottom indicator. The stock also bounced of support around 16 cents last tested end of October and the 200-day MA, both good bottom indicators. The chart is very bullish unless we see a close at 14 cents, but I expect the stock is heading back up.

Disclosure: I am/we are long GLD, OCANF, LMCNF, BKRRF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.