Ferret's stock to watch09:52 AEST Thu Oct 7 20101 day 9 hours 32 minutes agoAAPVIEWS: 0| FLOCKS: 0| 0 comments so far
"A sudden trough in a quality gold producer/explorer like OceanaGold Corporation (ASX:OGC) is something not to be missed.
The company retreated 11c to $3.75 yesterday but held a price of $3.80 for a week as the gold price surged towards $US1,400 oz and hit a record high of $US1,345 oz on COMEX on Tuesday.
OceanaGold Corporation is a significant Pacific Rim gold producer with projects located on the South Island of New Zealand and in The Philippines.
The company's assets encompass New Zealand's largest gold mining operation at the Macraes goldfield in Otago which is made up of the Macraes open pit and the Frasers underground mines.
Additionally on the west coast of the South Island, the company operates the Reefton open-pit mine.
OceanaGold is 100 per cent unhedged and produces between 270,000 and 300,000 ounces of gold per annum from the New Zealand operations.
The company also owns the Didipio gold-copper project in northern Luzon, Philippines.
OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges.
The disparity between the last price of $3.80 and the disclosure of an effective $3.54 looks to have been too much for the market and brought out the sellers.
Shareholders might have been disappointed if they missed out on the bookbuild deal.
Yesterday, OceanaGold reported it had completed the book build of $C115.5 million in special warrants in connection with its equity raising.
The warrants are being privately placed with investors in Australia, Canada and internationally at $C3.50 ($3.54) each.
Settlement is on October 20 and the CDIs will be freely tradable on the ASX the following business day.
The underwriters have confirmed orders for 33 million special warrants to acquire common shares and CDIs in the company for gross proceeds of $C115.5 million.
Macquarie Capital Markets Canada and Citigroup Global Markets Canada led a syndicate of underwriters which included GMP Securities, Cormark Securities, BMO Nesbitt Burns, Raymond James and Northland Capital Partners.
The offering is subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange.
Meanwile, OceanaGold Corporation announced two appointments associated with the September 20 announcement of the re-optimisation of the Didipio gold-copper project in Luzon.
Martyn Creaney has been appointed as project director and a member of the OceanaGold senior executive team.
He will oversee all aspects of construction and project management for the Didipio project.
Mark Cadzow, currently the chief operating officer of the company's New Zealand operations, will assume the duties of group chief operating officer which will encompass all of the company's operations.
Mr Creaney is a civil engineer with over 30 years of construction and project management experience, primarily in the mining industry.
He has been actively involved in the development of projects in Australia, Asia and the Americas including 25 years with Placer Dome, where from 2000-2006 he was vice president, design & construction, overseeing all design and construction activities for the company.
Mr Cadzow has been involved with the New Zealand operations for 19 years including overseeing the development of the Reefton open cut and Frasers underground mines in 2007/2008 before taking over the operations role.
Shares of OceanaGold Corp yesterday fell 11c to $3.75 and touched a low of $3.72. Rolling high for the year is $4.17 and low $1.015. No dividend. Earnings per share is 4.22c while price/earnings ratio is 88.86. The company has 228.8 million shares on issue with a market cap of $858.2 million
Last month CEO Paul Bibby resigned for personal reasons, and the Board has commenced an executive search for his replacement.
Mr Bibby said "OceanaGold is now in a very strong position both operationally and financially, we have increased international market awareness and the exploration efforts continue to produce outcomes that will sustain the New Zealand operations."
BACKGROUND
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OceanaGold Corporation was listed on the ASX on June 19, 2007, and also trades on the NZ and Toronto Exchanges.
The company is best known for operating New Zealand's largest gold mine - Macraes, has been steadily growing its business since its listing on the Australian and New Zealand stock exchanges.
In the last three years the company has achieved some significant milestones.
In 2007 the Company commissioned its second mine - Reefton on the west coast of the South Island of New Zealand and listed on the Toronto Stock Exchange.
In early 2008 its third mine - Frasers underground, was commissioned.
The company currently produces between 270,000 and 300,000 ounces of gold per annum.
Evolving out of the gold assets of GRD Ltd (an engineering and development firm) the company was established with a diverse portfolio of operating, development and exploration assets in the South Island of New Zealand, and a strategy to grow through organic growth and acquisition.
Today, the company has three operating mines, assets in New Zealand and the Philippines."
Newminer.
OGC Price at posting:
$3.72 Sentiment: Buy Disclosure: Held
