I do not agree “snout”. The truth is that this stock has been significantly over sold in the last 6 months based upon high capital requirements to sustain production and lingering doubts about the Phillipines government and its impact on Didipio as it transitions to underground. An overly conservative guidance from management and lack of exploration news compounded the analysts views. So what’s happened now? Production guidance is improving; no damaging news coming from government; exploration success at Waihi and Haile is beginning to hit its straps!
The numbers support the above argument - OGC share price is still trading at just below its net asset value (0.95x) when its peers are averaging about 1.3x NAV. This is exactly why the price guidance is hovering around $5 per share....the maths at today’s share price is $3.65/0.95 x 1.3 = $4.99!
So, in my opinion you are selling too soon; this share still has a long way to go even at these modest gold prices.
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