I hardly think a 1st quarter cash flow similar to 4th quarter would be disappointing. Keep in mind, OGC adjusted cash cost per ounce in the 4th quarter, resulting in a deceptive $310 cash cost per ounce. I feel the accurate accounting treatment would have been to recognize those two adjustments over the whole year, but I assume it is the auditors who identified it and rarely will companies make prior period restatements for unaudited interims in their MDA disclosures - confusing and probably not neccessary. That being said, $20 million in cash flow would be fantastic, because if you use the roughly $400 cash cost prior to adjustments in fourth quarter, you reduce cash flow to about $15 million range.
OGC Price at posting:
79.0¢ Sentiment: Buy Disclosure: Held