I suspect that the main issue holding back the share price is growth. While the Philippines operations are going strong and the company has considerable free cashflow, most investors are probably wondering 'what's next?' If you look at the company's most recent presentation, it seems clear to me that they are looking to expand operations but the real question is where? Australia? Elsewhere?
OGC may be an eager bigger for some of the Australia-based mining operations up for sale. That would be a good next step providing the price is right. They will almost certainly have strong competition for any of those assets.
Anyways, interesting times ahead. I like the profile.
Baron
OGC Price at posting:
$2.47 Sentiment: Buy Disclosure: Held
