OceanaGold – Update

Posted on | by Leon Hinde

OceanaGold is a multinational, mid-tier gold mining company with significant global operating, development and exploration experience. OceanaGold’s operating assets are located in the Philippines, New Zealand and the United States.

FH20 revenue $234mn with Earnings Before Interest, Depreciation and Amortisation (“EBITDA”) of $54.8 million. Cash balance and total immediately available liquidity of $147.7 million; net debt of $169.6 million.

FH20 consolidated production of 139,385 ounces of gold at All-In Sustaining Costs (“AISC”) of $1,237 per ounce on sales of 153,343 ounces of gold.

OceanaGold is dual-listed on the Toronto Exchange, it has raised C$150mn at C$2.06 to develop the Haile gold mine in South Carolina, as well as exploration and development at OceanaGold’s New Zealand projects.

Gold prices have recovered over the past 10 days from 1865 to 1913.

Oil – Are we nearing a buy signal?

Posted on | by Leon Hinde

The oil price continued to fall on worries about weakening demand and increasing supply.

The graph below shows oil going back to 1983 and the graph further below shows oil prices over the past 3 months.

We suggest investors watch the $35 – $38 price range for buying interest to increase. Should international travel recommence in 2021, oil prices will likely be a beneficiary, along with energy related equities.

Qube Holdings – Algo Signal

Posted on | by Leon Hinde

Qube Holdings is under Algo Engine buy conditions and has now been added to our ASX model portfolio.

FY21 revenue is forecast to increase 3% to $1.95bn and EBITDA flat at $300m. Qube may start to deliver 8 – 10% EPS growth into FY22 and FY23, which will support the forward yield of 2%.

We see price support developing within the $2.25 to $2.50 range.