Investment View: ? Neutralising to HOLD (was Buy) and lowering 12-month price target to $3.95 (was $4.20) due to the delay in Didipio. ? Clearly a solid result, with no major unaccounted discrepancies from our estimates, and in line with consensus. ? In our view, the company remains inexpensive on valuation metrics compared to its peer group and considering its current production levels. But, Didipio is now delayed into 2013. ? The push-back to the Didipio timetable means that contribution from this project will not occur until FY13, and results in these earnings being pushed out accordingly. We understand some of this delay may be due to the company revisiting final optimisation decisions.
OGC Price at posting:
$2.64 Sentiment: LT Buy Disclosure: Held