Hi GreasyFast,Firstly I was playing devil's advocate with my...

Hi GreasyFast,
Firstly I was playing devil's advocate with my post trying to give the other side of the story. Not many of us are in front on this investment and so need to understand the future risks associated with this company.
I believe my attempt at estimating cashflow this year was a valid calculation - we are only interested in how much money will flow into their bank account from all this production(288,000 ozs of gold with 108,000 ozs hedged).It doesn't matter whether the item appears in Operating,Investing or Financing Activities - if it's a cash-in or cash-out item it needs to be listed.
You say from my analysis that adding $12.5mil in cash to the bank in 2009 represents value for a $30-40 million CDN market cap stock but if you looked at a two year view then they will generate negative cashflow over this period due to the extra 100,000 oz hedged in 2010.
Earlier in your first post you said that you can't look at gold hitting $1000 NZD in isolation but I disagree as the NZ goldprice is the only metric that counts with OGC as its operating gold mines are in NZ and therefore all its operating cash costs are in NZD - if their current cash costs are $US475/oz then that means their real cash costs are $NZ800/oz.
It would be great if the BOD decided to present their financial statements in NZD as it would give a truer statement of their financial performance without all those exchange rate movements that currently cloud their accounts.
You also defend current Management which I strongly disagree with.Any Management that commits $US120 mil of shareholder funds BEFORE doing an updated Feasibility Study to see how much Dipidio was going to cost to develop needs to be hung drawn and quartered and I wouldn't mind seeing them all fall on their swords.This is the sole reason that shareholders have seen the share price drop from $4 to 25c over the last 15 months.
I know of no other established large GOLD miner who has seen this sort of shareprice destruction over this period of time and shareholders have a right to be angry very angry - if Management can make this sort of blunder once then they're very capable of doing it again. And don't tell me this has anything to do with the current credit crisis because it clearly doesn't - they over-stretched the company financially to the extent that nobody could possibly lend them more money - and we haven't even started to talk about their substantial rental committments.
Having said that,I totally agree with the sentiment expressed in the last paragraph of your second post - the stock is risky on a two year view but is a great play on the gold price due to its large production(although only 80000 ozs is unhedged in 2010)if you are bullish but please understand that it's the NZ goldprice that currently counts.
The key test to see if there's any talent in current Management will come with how much value they can extract from the Dipidio investment(?)-read debacle.