I think the 30% drop in price is excessive, if only based upon the article on the Manila Bulletin.
I am afraid there will be an issue with the restructuring of the hedge book, which is deeply in the red. What amazes me is how a few years back company executives could accept hedging by the banks when it is was clear that we were in a major bull market for gold. Newcrest and Lihir have paid lots of money to close their hedge books. Shareholders had to put funds up for it.
I think the Didipio project is very promising and has been so for over a decade, even when held by Climax. In spite of the Philippines making pro-mining declarations from time to time, the local governments keep interfering and making matters hard for miners. Even with hick-ups Didipio will go into production hopefully next year and provide a huge cashflow for the OGC.
OGC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held