Oceana Gold – Review

OceanaGold is under Algo Engine buy conditions.

Newcrest and Gold Road remain our preferred allocations, although Oceana Gold offers among the best long-term production growth opportunities through the Haile, Waihi and Golden Point mines.

The 3QCY20 operational result was weak, compared to market expectations with short-term production below estimates. The soft quarter was largely driven by impacts of exceptional rainfall and Covid-19 staffing related matters at Haile.

OceanaGold – Update

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.

GDX – Gold ETF

The below post is a copy of a publication on the 18th of October. Since making the post, gold stocks have performed well and we now look to trim the gains and rotate into oversold industrial & REIT names.

Vaneck Vectors Gold Miners  is under Algo Engine buy conditions following the entry condition earlier this year at $30. It is a current holding in our ALL ASX ETF model portfolio.

GDX ETF has corrected from $45 to $38 over the past 8 weeks. We feel buying support will now begin to increase.

Individual names are also now appearing on the radar, such as Newcrest Mining Northern Star Resources, Evolution Mining, OceanaGold and Gold Road Resources.


OceanaGold – Algo Buy Signal

OceanaGold is under Algo Engine buy conditions and is seeing increased buying interest as the stock rallies from the $3.90 support level.

Gold prices hit a three-month high this month as investors flee to the safe-haven bullion amid escalated trade tensions and lower global interest rates.  Additionally, if we see the US dollar weaken, gold will appreciate as it becomes cheaper for investors holding other currencies. 

Buy OceanaGold and look for a rally to $4.50+