WHAT THE BROKERS SAY: Kevin Andrusiak...

WHAT THE BROKERS SAY: Kevin Andrusiak
http://www.theaustralian.news.com.au/story/0,25197,22858101-5005200,00.html

Oceana Gold (OGC)
Austock Securities
Strong buy recommendation
Share price target of $3.87
Last traded at $2.74

DOWN, down, down went Oceana Gold's share price over the past month as copper and gold prices went up, up, up.

Clearly this scenario doesn't make sense in a logical world, but then again Oceana has had to deal with development issues at its Didipio project in the Philippines and low grades at its Macraes mine in New Zealand.

Are the negative issues fully priced in to Oceana shares? You bet, writes Austock analyst Hunter Hillcoat. "Oceana Gold is one of the cheapest gold companies in our universe," he said. "It is trading at a discount to our valuation of $3.87 a share and at some of the lowest gold multiples in terms of EV/reserve or resource ounce, EV/ounce of forward productions, forwards EV/EBITDA, etc.

We expect earnings to improve from the $US16.7 million loss in calendar 2008 to a profit of $US54.6m and $US114.5m respectively."