OceanaGold: Outlook Improving On Didipio Restart

Oct. 31, 2021 1:20 AM Seeking Alpha article

Summary

OceanaGold released its Q3 results last week, reporting quarterly production of ~79,200 ounces at all-in sustaining costs of $1,200/oz.

The major news was the restart of mining at Didipio, following a 25-year renewal of the Financial or Technical Assistance Agreement.

With significant contribution from Didipio once it reaches full production, and operations continuing to improve at Haile with a focus on free cash flow, the outlook is improving considerably.

Given OceanaGold's path towards higher production at significantly lower costs starting in 2023, I would view any pullbacks below US$1.60 as low-risk buying opportunities.