$2.31 gap was a reasonable place to park, but i added more at $2.34 to be safe.
LGL rejection of NCM and POG moving up $10/oz, plus OGC announcement that being unhegded will result in cash operating margins increasing by approximately 200% compared to recent margins.
So everything aligned at once for todays surge.
Based on 300koz /pa US$1080/oz revenue US$465/oz cost AUD$ 0.92
I estimate EPS at approx 49.4 cents.
Applying PE of 10 is not unreasonable, hence my share price target $4.90.
Also lets not forget Didipio (as posted by hammerhead1) "Mark Cadzow also reportedly said that several companies had expressed interest in a joint venture on Didipio but no move would be made until Oceana has completed an evaluation on the project."
OGC Price at posting:
$2.53 Sentiment: LT Buy Disclosure: Held