Oceana has been carrying two idled operations (Waihi and Didipio) for the best part of 12months - Didipio costing a staggering US$44m in care and maintenance whilst Waihi produced just 7.5koz as they built out the Martha UG. On top of this their other two operations encountered significant issues with Covid. And they had some poorly structured hedges and prepayments.
Waihi will be back producing Q2, Haile is in high grade for at least the first half of the year and less impacted by covid and Didipio decision could be very soon. They’ve also got a revised (more flexible) revolving credit facility.
If you normalise operating cashflow for Q4 for the hedges and prepayments and Didipio care and maintenance I have them making US$100m. Now if you add earnings from Waihi and Didipio that figure could be closer to US$150m. The hedges are gone, there’s one prepay left (40koz in Q2). Plenty of upside without Didipio but if you get a favourable decision there I think this goes a couple x
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