Smart Investment - mexicomike.ca

swannmex · Joined: 06 Jan 2005 Posts: 1940 Location: Mexico

IMO, this is a very good move. Getting hedge free asap will enable them to go forward with Didipio much sooner.

Hopefully it can now be debt financed without further dilution. This stock is still dirt cheap.

*************************************************************
OceanaGold Announces Equity Offering

The net proceeds of the Offering and the Private Placement, if completed, will be used to fund the restructure of the Company's existing gold hedging facilities.

4:48 PM ET, February 17, 2010

MELBOURNE, AUSTRALIA, Feb 17, 2010 (Marketwire via COMTEX)

OceanaGold Corporation (OGC)(ASX:OGC)(NZSE:OGC) (the "Company") is pleased to announce today that it has filed and received a receipt for a preliminary short form prospectus in all of the provinces of Canada, except Quebec, in connection with a proposed overnight marketed offering (the "Offering") of subscription receipts in the Company (the "Subscription Receipts"). Each Subscription Receipt will entitle the holder to receive, without payment of additional consideration or further action, one common share of the Company upon satisfaction of certain release conditions which include approval of the Offering by shareholders at a Special Meeting scheduled to be held on 25 March 2010.

The Offering will be priced in the context of the market with the final terms of the Offering to be determined at the time the underwriting agreement is executed. The offering of Subscription Receipts is scheduled to close on or about 4 March 2010 and is subject to certain customary conditions and regulatory approval, including the approval of the Toronto Stock Exchange.

Concurrently with the Offering, the Company is also conducting a private placement of ASX listed Chess Depository Interests ("CDI's"), at the Australian dollar equivalent of the price of the Subscription Receipts issued under the Offering (the "Private Placement"). The issue of CDIs is also subject to approval by shareholders at the Special Meeting referred to above.

The Offering will be conducted by a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd.

The net proceeds of the Offering and the Private Placement, if completed, will be used to fund the restructure of the Company's existing gold hedging facilities. The remainder of the net proceeds (if any) are expected to be used by the Company for other working capital requirements and/or general corporate purposes.

This media release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction outside of Canada, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to or for the account or benefit of, any U.S. person, as defined in the Regulation S under the 1933 Act ("U.S. Person") absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

The preliminary short form prospectus relating to the Offering has been filed with securities commissions or similar authorities in each of the provinces of Canada, other than Quebec. A copy of the preliminary prospectus will also be lodged with the Australian Securities Exchange. The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus may be obtained on SEDAR (www.sedar.com). There will not be any sale or any acceptance of an offer to buy the securities issued under the prospectus until a receipt for the final prospectus has been issued.

About OceanaGold

OceanaGold Corporation is a significant Pacific Rim gold producer with projects located on the South Island of New Zealand and in the Philippines. The Company's assets encompass New Zealand's largest gold mining operation at the Macraes complex in Otago which is made up of the Macraes open pit and the Frasers Underground mines. Additionally on the west coast of the South Island, the Company operates the Reefton open-pit mine. OceanaGold produced more than 300,000 oz of gold from the New Zealand Operations in 2009 and expects to produce 270,000 - 290,000 oz in 2010(1). The Company also owns the Didipio Gold-Copper Project in northern Luzon, Philippines.

OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.

(1) For further information on production guidance, see January 22, 2010 press release.

swannmex · Joined: 06 Jan 2005 Posts: 1940 Location: Mexico

Big move in OGC today on good volume. Up 12% today. Maybe the market is finally figuring out how undervalued this stock is. IMO worth $4.00cdn now and $6.00cdn when the hedges come off in 11 months with gold anywhere over $1,000.00usd per oz. If we have $1500 gold in 12-18 months OGC is a 5+ bagger I believe. Of course, I could be wrong so do your own DD as always.

FWIW, OGC.to is now my largest holding.

Good luck to all of us, Andrew

mauta · Joined: 03 Jan 2008 Posts: 42 Location: Sweden

For people interested in producing gold companies, and Norton Goldfields in particular, I hope this analysis may turn out to become valuable.

Excerpt:

"Norton Goldfields (NGF) on ASX, Revaluation Imminent
A Fundamental Value Case Ready for Turn Around with Very High Upside Potential

A comparison between Norton Goldfields, Oceana Gold, New Gold, Semafo, Gammon Gold and Jaguar Mining gives some very interesting result. Based on a 150 USD/oz value of P&P and M&I in ground, this gives a target of 1,65 AUD/Share, a 569% increase, from the current AUD 0,29 in the Norton Goldfield case. Norton is priced less than 3 times (Oceana) and even less than 15 times versus other peers in this regard, way to low also considering cash cost/oz production.

With gold at 1100 USD/oz, a head to head Market cap/EBITDA ratio comparison also shows Norton is priced way to low in comparison to peers. In comparison with best in group competitor Oceana Gold, Norton is priced at 61% of Oceana Gold 2010, and after adjustment for cash and debt (i.e. EV), Norton is priced at 38% of Oceana Gold.

In calendar 2011 and 2012, Market cap/EBITDA shows Norton is priced at 81% and 72% respectively, and after debt and cash adjustment (i.e. EV) Norton comes out priced at 51% and 45% of Oceana. This, with a CONSERVATIVE, author expected TOTAL cash cost in the Norton case vs peers OP. cash cost. (Further sensitivity analysis, please see detailed comparison below)

Worthwhile to mention is that the other peers in this comparison all come out worse versus these two outstanding Gold Companies.

In addition, the calculation above includes the annual gold hedge of 70koz in Norton, which MIGHT be cancelled out, if counter party Lehmann Brothers remains in administration, acc. to CEO presentation. This is an ADDED VALUE potential of Norton. In any case, Norton doesnt have to pay during the legal process, thus accumulating cash on top of above EBITDA analysis."

I should mention I own both Norton and Oceana
BR Mauta

http://mautastocks.solobis.net

Bobwins · Joined: 05 Feb 2007 Posts: 1157 Location: Seattle, Wa

Hi Andrew,

Sorry I was so tardy responding. I have given up on OGC.to. This is a crazy bargain but the market just doesn't want to give them any value. I would agree that the stock should be at least a triple if you can wait until the hedges fall off. Of course, then you have the problem of static production. Company is saying that 2010 may be slightly lower than 2009 in gold production.

Key to valuation (good or bad) will be decision on Didipio project. Didipio would give them a big increase in production but requires more risk. Their current undervaluation is because of the hedges required by previous construction projects.

Results should improve as gold increases in price and the high copper prices are positive for Didipio development.

I am still holding a few thousand shares but sold off most during the past two months. Trying to find gold producers and explorers that will move faster than OGC. I also moved into silver producers more heavily.

My OGC.to money went into CGA.to, FR.to, FVI.v, KGN.to, PG.to and REX.v. All much smaller positions than OGC but so far have done ok. KGN.to has done the best, moving up 68% since I bought in late Sept.

CGA.to and FVI.v have lagged. CGA.to should report it's first full qtr of production in Q3 and I think should get revalued as a producer. FVI.v is a long term pick. I like the long term thinking of mgmt and they have one mine producing around 2million oz of silver and will start construction on a second mine that will be producing in 2011. Will raise production over 5million oz in 2012. They have most of the cash on hand to build the mine. Bobwins

Capone1947 · Joined: 19 Apr 2006 Posts: 111 Location: Toronto,Ontario

MELBOURNE, Australia, Nov. 5 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") is pleased to announce the appointment of Paul Bibby as Chief Executive Officer, commencing immediately.

Paul is a metallurgist with broad international operations and business development experience across many commodities, with leadership roles in recent years at Capral, Zinifex and most recently, as London based Chief Development Officer with Nyrstar, which was created through the IPO of Zinifex's smelting operations. Prior to this, he had some 23 years at Rio Tinto in a broad range of operating and business development roles. Paul is Australian and based in Melbourne.

With this appointment, Marcus Engelbrecht will cease the role of Interim CEO and continue his duties of CFO. Additionally, Jim Askew will revert from his position of Executive Chair to Non-Executive Chairman of OceanaGold.

Commenting on the appointment, Jim Askew said "The appointment of Paul comes as OceanaGold continues to deliver into sustainable operating performance and positions the Company to address the challenges of growing the business from a production base of some 300,000 oz of gold per year. The immediate objective of substantially increasing mine reserves to underpin the long term future of the business is already well in hand and will provide the platform for future growth. The Company was indeed fortunate that Marcus so ably managed the Interim CEO role for some months. The Executive Group is now at full strength."
_________________
Capone life!!

swannmex · Joined: 06 Jan 2005 Posts: 1940 Location: Mexico

Bobwins, this looks like a very good report to me. I still hold a good chunk of OGC. I would love to hear your comments and what you think this looks like when the hedges roll off at the end of 2010. I think this stock will act like SMF did when they finally got hedge free. SMF as I know you know was better than a triple once the hedges came off.

Do you think OGC has that kind of potential 12-15 months down the road if gold holds over $1,000.00usd per oz.

Always interested in what you are thinking.

Thanks and good luck, Andrew

Bobwins · Joined: 05 Feb 2007 Posts: 1157 Location: Seattle, Wa

OGC.to earns .07eps with on 70,020 oz produced. Actually earned money on hedges due to strong performance of NZ$ compared to US$. Cashflow was stable at 21.6million and cash costs rose to $473/oz due to strong NZ$. Good qtr.

OceanaGold earns $13.8-million (U.S.) in Q3

2009-10-29 08:30 ET - News Release

Mr. Darren Klinck reports

OCEANAGOLD THIRD QUARTER 2009 MANAGEMENT DISCUSSION & ANALYSIS

OceanaGold Corp. has provided its third quarter financial results for the period ended Sept. 30, 2009.

HIGHLIGHTS

- Sold 71,492 ounces of gold during the third quarter which was in line with plan bringing total sales for the nine months ended September 2009 to 227,904 ounces.

- EBITDA (earnings before interest, taxes, depreciation and amortisation and excluding unrealised gains/losses on undesignated hedges) was $24.4 million for the quarter.

- Achieved cash flow from operations of $21.6 million bringing the total for the nine months ended September to $65.0 million.

- Announced further drill results and a preliminary resource estimate for the Panel 2 Deeps deposit at the Frasers Underground mine.

- Scope and optimisation study of Didipio Gold Copper Project is being progressed.

- Successfully completed a capital raising by way of an institutional equity placement for A$24.2 million (gross proceeds).

* All statistics are compared to the corresponding 2008 period unless otherwise stated.

(xx)OceanaGold has adopted USD as its presentation currency and all numbers in this document are expressed in USD unless otherwise stated.

OVERVIEW

Results from Operations

OceanaGold New Zealand operations achieved gold sales of 71,492 ounces for the third quarter 2009. This was 5% below the previous quarter with lower mill feed grades and floatation recoveries at Macraes accounting for most of the difference. Gold sales for the nine months ended September 30, 2009 totaled 227,904 ounces and was in line with plan.

Operating cash costs for the third quarter were $473/oz bringing the YTD average cash costs to $388/oz. A stronger New Zealand Dollar (NZD) against the U.S. Dollar (USD) was a significant contributing factor to higher costs per ounce.

The NZD averaged $0.673 for the quarter up from $0.604 in Q2 2009 and $0.535 in Q1 2009.

Total material movement during the quarter was higher across all the operations as equipment utilisation improved and increased efficiencies were achieved through the continuous improvement programme at the mines. Combined material through the process plants was on plan with mill feed grade slightly lower compared to the previous quarter.

EBITDA (earnings before interest, tax and depreciation and amortisation and excluding gains/losses on undesignated hedges) for the quarter was $24.4 million and $77.9 million for the nine months ended September 30, 2009.

Cash flow from operating activities was $21.6 million, bringing total cash flow from operations for the nine month period ended September 30, 2009 to $65.0 million.

Didipio Gold - Copper Project

The Didipio project remained on care and maintenance during the quarter. The Company is continuing to progress an internal technical and optimisation study to establish the maximum value inherent in developing the project. Site accommodation and office facilities continue to be maintained for security, maintenance personnel, environmental and community relations staff at the project.

The company continues to fulfill all it's community commitments and pursued a number of initiatives during the quarter. Key areas of focus were community health, education and the provision of ongoing financial support to the local community development association for certain priority projects.

FY 2009 Production Guidance Revised

Production guidance for FY2009 has been increased to 297,000 - 303,000 ounces. Cash cost guidance has also been adjusted upwards to $405 - $435 per ounce, largely due to the stronger New Zealand Dollar.

FY 2010 Preliminary Production Guidance

Preliminary production guidance for 2010 is in the range of 270,000 - 290,000 ounces. The Company will provide further production and cash cost guidance in early 2010.

- Table 1 -
Key Financial and Operating Statistics

-------------------------------------------------------------------------
Q3 Q2 Q3 YTD YTD
Financial Sep 30 Jun 30 Sep 30 Sep 30 Sep 30
Statistics 2009 2009 2008 2009 2008
-------------------------------------------------------------------------

Gold Sales
(Ounces) 71,492 75,319 62,753 227,904 189,308

USD USD USD USD USD
--- --- --- --- ---
Average Price
Received ($ per
ounce) 838 730 861 747 895
Cash Operating
Cost ($ per ounce) 473 423 640 388 620
Cash Operating
Margin ($ per
ounce) 365 307 222 359 273

Non-Cash Cost
($ per ounce) 249 203 181 204 198
Total Operating
Cost ($ per ounce) 722 626 821 592 818

Total Cash
Operating Cost
($ per tonne
processed) 19.83 18.59 23.29 17.13 23.35
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Combined Q3 Q2 Q3 YTD YTD
Operating Sep 30 Jun 30 Sep 30 Sep 30 Sep 30
Statistics 2009 2009 2008 2009 2008
-------------------------------------------------------------------------

Gold produced
(ounces) 70,020 74,240 63,270 228,297 184,394

Total Ore Mined
(tonnes) 1,521,202 1,026,082 1,381,744 4,036,145 4,069,329
Ore Mined grade
(grams/tonne) 1.71 2.32 1.66 2.10 1.64

Total Waste
Mined
(tonnes) -
incl
pre-strip 16,437,702 15,059,680 12,644,334 45,847,924 39,946,451

Mill Feed (dry
milled
tonnes) 1,705,948 1,707,220 1,722,753 5,156,198 5,046,451
Mill Feed Grade
(grams/tonne) 1.59 1.65 1.46 1.71 1.46
Recovery (%) 78.3% 80.4% 81.9% 80.1% 78.6%
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Q3 Q2 Q3 YTD YTD
Combined Sep 30 Jun 30 Sep 30 Sep 30 Sep 30
Financial 2009 2009 2008 2009 2008
Results $'000 $'000 $'000 $'000 $'000
-------------------------------------------------------------------------
EBITDA
(excluding
unrealised
gain/(loss)
on hedges) 24,425 22,484 18,991 77,941 41,812
-------------------------------------------------------------------------
Earnings/(loss)
after income
tax and before
undesignated
gain/(loss) on
hedges (net of
tax) 1,859 5,397 2,806 17,894 (5,462)
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Reported EBITDA
(including
unrealised
gain/(loss)
on hedges) 41,484 72,081 (596) 142,332 (9,677)
-------------------------------------------------------------------------
Reported earnings/
(loss) after
income tax
(including
unrealised
gain/(loss)
on hedges) 13,800 40,114 (10,905) 62,968 (41,309)
-------------------------------------------------------------------------

PRODUCTION

Production for the third quarter of 2009 was 70,020 ounces of gold resulting in total production of 228,297 ounces for the nine months ended September 30, 2009. Total gold sales for the quarter were 71,492 ounces and 227,904 ounces for the nine month period ended September 30, 2009.

Total combined operating cash costs for the operations were $473/oz for the quarter. This was higher than Q2 2009 on account of lower gold sales and a stronger NZD/USD exchange rate which averaged 0.673 in the quarter compared to 0.604 in Q2 2009. The appreciation of the NZD contributed to an additional $30 per ounce in this quarter's cash costs compared to Q2 2009.

Production for the year to date is slightly ahead of expectation and is a result of steady operations at both Macraes and Reefton. Company production guidance for FY 2009 has been upgraded to 297,000 - 303,000 ounces (from the previous 280,000 - 300,000 ounces). Cash cost guidance has also been raised to $405 - $435 per ounce (from previous US$365-$405 per ounce) mainly due to the appreciating New Zealand Dollar.

Cash flow generated from operations for the quarter was $21.6 million, bringing the total to $65.0 million for the nine months ended September 30, 2009.

OPERATIONS Macraes Goldfield (New Zealand)

The two Macraes mining operations (Macraes open-cut and Frasers underground) incurred one lost time injury (LTI) in the third quarter bringing the year to date total to four. Safety continues to be a key focus at the New Zealand operations and a formal job safety analysis (JSA) to further develop safety standards for high risk areas is scheduled to be undertaken in Q4.

Production from the Macraes Goldfield was 48,065 gold ounces, which was down slightly lower than recorded for Q2 2009. Planned changes to the mining sequence and lower recoveries from the material mined at the Frasers 4C area of the pit were the main contributing factors to the variance.

Total waste and ore mined was 14.74 million tonnes compared with 13.08 million tonnes in the previous quarter. Movements were positively affected by higher equipment utilisation, favourable weather conditions, and improved efficiencies achieved through a continuous improvement programme with initiatives such as hot seating. Ore tonnes mined were 63% higher when compared to the previous quarter. Shorter haul distances and improved efficiencies were the main contributors to the improved movements. As a result, a higher percentage of material mined was from the open pit with the average ore grade mined from the combined Macraes operations being lower than the previous quarter at 1.47 g/t.

Frasers underground mine produced another record quarter with 233,800 ore tonnes being mined improving on last quarter's total by approximately 10,000 tonnes. The mine is now operating at a rate of between 900,000 and one million tonnes per annum. Better ground conditions have led to less dilution than expected and this combined with slightly higher grades than modeled has resulted in a mined ore grade that is exceeding plan. Development metres for the quarter were slightly above plan with an additional development also started from Panel 2 for an exploration drive.

Processing Plant throughput was according to plan for the quarter with mill feed of 1.39 million tonnes processed compared to 1.40 million tonnes in Q2 2009. Mill feed grade was 1.38 g/t and generally consistent with Q2 2009.

Recoveries at the Macraes process plant were lower than plan during the quarter and are the key area for operational focus. Process recoveries were 77.6% down from 80.3% achieved during Q2 2009. The main factor causing the underperformance was associated with lower than expected floatation recovery from the Frasers 4C open pit material on account of some subtle differences in ore characteristics which resulted in slower floatation response times. Additional test work and adjustments to the flotation circuit have resulted in the overall recovery now delivering in the 79-80% range. A number of additional recovery enhancement initiatives have been identified and will be actioned over the next two quarters. These include higher unit cell recoveries, improving the effectiveness of the classification cyclones and increased electrowinning efficiency. The expectation is that these initiatives should result in recoveries returning the 81-82% range.

Reefton Goldfield (New Zealand)

There were two LTI's in the third quarter bringing the year to date total to six.

Movements for the quarter were above plan at 3.41 million tonnes. This compares favorably to Q2 2009 (3.01 million tones). Improved weather conditions and better equipment availabilities were the main factors contributing to improved performance. The completion of the new Globe Progress South haul ramp has also shortened haul distances to the waste rock stack. This should continue to assist productivity in future quarters.

Gold production from Reefton concentrate was 21,955 gold ounces. Mill throughputs continue to run above design capacity and were slightly higher than the previous quarter, with 309,762 tonnes being processed. Mill feed grade of 2.55 g/t was 6% lower than the previous quarter, nevertheless the average grade over the YTD period is still slightly ahead of plan. Overall recovery was 81.5% and 1.3% lower than Q2 2009 as a result of treatment of some higher clay content material.

A review of the process plant resulted in some minor changes to the circuit. Froth crowders in the cleaner scavenger flotation cells and some adjustments to the water treatment regime were implemented and should both contribute to improved recoveries. Additionally, improved ore feed strategies have been identified as part of our continuous improvement programme. This will result in a more steady process plant operation as they are implemented.

Community Relations

The OceanaGold Tours programme recorded a 12% increase in visitors over the same period last year. More than 150 people took in the mine tour which brings tourists to the region. The tour also links in with one of the more popular tourist attractions in central Otago, the Taieri Gorge railway tour which is fully booked for the summer season.

Both the Macraes and Reefton operations are regular supporters of local education initiatives and during the quarter support was provided to various schools in the district for the purchase of gym equipment and to assist with various school fieldtrips.

DEVELOPMENT

Didipio Gold & Copper Project (Philippines)

Development at the Didipio Gold and Copper project in Luzon Philippines, remains under care and maintenance. The Company maintains a reduced workforce at the project site. Site based work has been limited to care and maintenance focused activities primarily in the areas of environmental, safety, and security. The successful equity raising during the quarter has enabled the Company to advance the technical and optimisation study for the project.

During the quarter three lost time injuries (LTI's) occurred at the project. These were as a result of injuries sustained following a vehicle roll over during a security patrol.

Throughout the care and maintenance period, the Company has continued to fulfill all its community and social commitments relating to the project. Community activities during the quarter focused on the continued financial support provided to the Didipio community under a Memorandum of Agreement (MOA) with the Didipio Community Development Association Inc. (DCDAI). Funding for this MOA contributed to the construction of a new community hall facility, in addition to the ongoing support for the local school to cover the salary costs of additional teachers. The construction of two floodway bridges was completed to provide safe river crossings for the local community, particularly during high rainfall periods. The local municipal council undertook the project using local labor and equipment funded by OceanaGold.

The Company continued to work in partnership with municipal health units and the municipal and provincial governments in the region to improve access to medical care in remote parts of Luzon. Three medical missions were held in local communities throughout Nueva Viscaya and Quirino provinces during the quarter with hundreds of patients treated for various medical and dental needs.

EXPLORATION

The Company successfully raised sufficient funds during the last quarter to finance a focused brownfields exploration programme in New Zealand. This programme commenced during the latter part of the quarter.

Total exploration expenditure for the quarter was $772,000.

New Zealand

Macraes Goldfield (Macraes and Frasers mines)

Recruitment of additional staff, including two exploration geologists and a second field technician took place as a part of the ramp-up of the brownfields exploration programme commencing during the quarter.

Seven drill holes were completed as part of an expanded diamond drill twinning programme within a potential cut-back to the Round Hill pit. All holes successfully sampled through the Hangingwall Shear to the Footwall Fault and early assay results indicate strong correlation with the adjacent RC holes completed previously. Two more holes are expected to be completed during early Q4 followed by a full review of the programme results.

Drill planning is well advanced on six surface drill holes down-dip of the Frasers Underground mine targeting Panel 3. A similar number of drill holes are also planned down-dip of the Round Hill orebody. Additional drill rigs are scheduled to arrive onsite during Q4 for these programmes.

Compilation of regional soil results across the northern strike extension of the Hyde-Macraes Shear Zone (HMSZ) has identified a number of geochemical anomalies ready for targeted trenching and drilling in Q4 and into H1 2010.

Development of the Frasers underground exploration drilling drive has progressed well. To date, two diamond drill holes have been completed from the exploration drive, and drilling targeting down-dip extensions of Panel 2 will continue through into 2010.

A Panel 2 Deeps preliminary resource estimate has been completed and was reported on September 14th (see company website for details). This estimate outlined 42,800 ounces of Indicated resource and 71,400 of Inferred resource. The deposit remains open and infill and extension drilling is continuing here from the exploration drive. A preliminary mine design of the Panel 2 Deeps area has commenced.

Reefton Goldfield

The exploration team at Reefton has also been bolstered to accelerate the exploration programme with the addition of three exploration geologists. The ensuing programme will augment existing exploration with data review, detailed relogging of existing drill core and interpretation.

The major geological review and structural analysis of the goldfield continued during the quarter with a structural geologist contracted to focus solely on this initiative. This programme will continue in Q4 and into 2010 and is expected to identify additional in-pit and near-mine targets at Reefton. As a part of this programme, the Company intends to reconstruct historical underground workings in a 3D format from archived data to facilitate regional structural interpretation.

The regional stream sediment sampling programme discussed in the Q2 report continued during the quarter, with the programme expected to be completed in early 2010. Results from this programme will assist with drill hole targeting in 2010.

The drilling programme over the next six months at Reefton is expected to focus on three key areas: 1) deep extensions of the Globe Progress, General Gordon and Empress ore bodies with a view to underground mining; 2) an infill reverse circulation drill programme at the Souvenir deposit for improved resource definition in preparation for mining in 2010 and 3) high-grade targets that are near-surface and along strike.

Philippines

Exploration activities in the Philippines continued while the Didipio project remained on care and maintenance.

Preliminary work commenced on the six Didipio regional exploration permits that were received late in the second quarter. Community relations, stream sediment sampling and mapping programmes were all undertaken in the quarter. Assay results from the sampling programmes are expected in Q4 with followup fieldwork studies to be planned, based on this data.

FINANCIAL SUMMARY

The table below provides selected financial data comparing Q3 2009 with Q2
2009 and Q3 2008.

-------------------------------------------------------------------------
Q3 Q2 Q3 YTD YTD
Sep 30 Jun 30 Sep 30 Sep 30 Sep 30
2009 2009 2008 2009 2008
STATEMENT OF OPERATIONS $'000 $'000 $'000 $'000 $'000
-------------------------------------------------------------------------
Gold sales 59,928 55,010 54,038 170,208 169,369
-------------------------------------------------------------------------
Cost of sales, excluding
depreciation and
amortisation (32,972) (31,456) (39,658) (86,770) (115,611)
-------------------------------------------------------------------------
General & Administration (2,512) (930) (3,784) (5,497) (12,377)
-------------------------------------------------------------------------
Foreign Currency
Exchange Gain/(Loss) 35 (154) 8,367 (6) 330
-------------------------------------------------------------------------
Other expense/income (54) 14 28 6 101
-------------------------------------------------------------------------
Earnings before
interest, tax,
depreciation &
amortisation (EBITDA)
(excluding gains/
(losses) on
undesignated hedges) 24,425 22,484 18,991 77,941 41,812
-------------------------------------------------------------------------
Depreciation and
amortisation (18,199) (15,403) (11,420) (47,075) (37,674)
-------------------------------------------------------------------------
Net interest expense (3,938) (3,337) (4,823) (10,639) (14,163)
-------------------------------------------------------------------------
Earnings/(loss) before
income tax and gains/
(losses) on
undesignated hedges 2,288 3,744 2,748 20,227 (10,025)
-------------------------------------------------------------------------
Tax on earnings/loss (429) 1,653 58 (2,333) 4,563
-------------------------------------------------------------------------
Earnings after income
tax and before gain/
(loss) on
undesignated hedges 1,859 5,397 2,806 17,894 (5,462)
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Release from OCI of
deferred unrealised
gain/(loss) on
designated hedges - - - - 279
-------------------------------------------------------------------------
Gains/(losses) on
fair value of
undesignated hedges 17,059 49,597 (19,587) 64,391 (51,489)
-------------------------------------------------------------------------
Tax on (gain)/loss on
undesignated hedges (5,118) (14,880) 5,876 (19,317) 15,363
-------------------------------------------------------------------------
Net earnings/(loss) 13,800 40,114 (10,905) 62,968 (41,309)
-------------------------------------------------------------------------

Basic earnings/
(loss) per share $0.08 $0.25 ($0.07) $0.38 ($0.26)
-------------------------------------------------------------------------
Diluted earnings/
(loss) per share $0.07 $0.21 ($0.07) $0.33 ($0.26)
-------------------------------------------------------------------------

-------------------------------------------------------------------------
CASH FLOWS
-------------------------------------------------------------------------
Cash flows from
Operating Activities 21,647 20,399 (2,730) 65,008 27,807
-------------------------------------------------------------------------
Cash flows from
Investing Activities (20,572) (17,919) 8,940 (50,063) (87,667)
-------------------------------------------------------------------------
Cash flows from
Financing Activities 15,456 (1,198) (30,650) 10,174 (44,610)
-------------------------------------------------------------------------

RESULTS OF OPERATIONS

The Company reported earnings before interest, tax, depreciation and amortisation excluding gains/losses on undesignated hedges (EBITDA) in Q3 2009 of $24.4 million compared with $18.9 million in Q3 2008 and $22.5 million in Q2 2009. The results for the period were characterised by increased revenue from higher gold prices and production, compared to the prior year, and supported by lower operating costs year on year. In comparison to the prior quarter gold sales volumes reduced 5.1% and costs in USD increased as the NZD strengthened. The average gold price received in the quarter increased to US$838 per ounce. The Company delivered approximately 30% of its production for the quarter into "out of the money" hedges. This was in contrast to Q3 2008 when all production was sold into the spot market and the gold price received year on year has declined marginally.

Cash costs per ounce in the third quarter were higher than Q2 2009 due to lower production which in part was a reflection of the planned mining sequence and slightly lower recoveries. US$ costs also increased due to the exchange rate impact and higher maintenance costs were offset in part, by lower operating costs for diesel and power compared to the prior year.

Sales Revenue

Gold revenue of $59.9 million in Q3 2009 was higher than the prior quarter with increased gold prices offsetting lower sales volumes. Sales revenue also increased 10.9% when compared to Q3 2008 when the Company reported revenue of $54.0 million. This was supported by increased ounces combined with the higher gold price.

Gold sales volume for Q3 2009 was 71,492 ounces which was higher than Q3 2008 by 13.9% and 5.1% lower than last quarter. Production was constrained due to changes in the mining sequence and lower recoveries of 78.3% compared to the prior quarter.

The average gold price received per ounce was $838, an increase of 14.8% over the prior quarter. This reflects the increased spot gold price achieved over the period and contributed to the hedged production level decreasing to 30% of sales from 44% the previous quarter.

Undesignated Hedges Gains/Losses

Unrealised gains and losses calculated on the fair value adjustment of the Company's undesignated hedges are brought to account at the end of each reporting period and reflect changes in the spot gold price. This also includes the adjustments made to take account of the delivery of gold into the hedge book as the derivative liability was released. These valuation adjustments, as at June 30, 2009, reflect a gain of $17.1 million for Q3.

The derivative instruments used to manage the impact of movements in gold prices are summarised below under "Current and Non-current Derivative Liabilities".

Operating Costs & Margins

Cash costs per ounce sold were $473 which was $167 (26%) lower when compared to Q3 2008. This reflects the decline of input costs from the peaks experienced in mid 2008.

The cash margin of $365 per ounce resulted in earnings before interest, tax, depreciation & amortisation (excluding undesignated hedge gains/losses) of $24.4 million for the quarter, compared to $22.5 million in Q2 2009 and $19.0 million in Q3 2008.

Administration costs of $2.5 million were in line with plan and 33.6% lower than Q3 in 2008.

Depreciation and Amortisation

Depreciation and amortisation charges are calculated on a unit of production basis totaling $18.2 million for the quarter. These charges were higher in USD when compared to Q2 and Q1 2009 in part due to the strengthening NZ dollar and also combined with an additional allocation of deferred costs attributable to an increase in ore mined which was 48% higher when compared to last quarter.

The depreciation and amortisation charges include amortisation of mine development and deferred waste stripping costs and depreciation on equipment.

Net Interest expense

The net interest expense of $3.9 million is broadly in line with Q2 2009 but has increased slightly in US$ due to the exchange rate effect.

Despite low interest rates, the stronger Australian and New Zealand dollars have contributed to an increase in the outstanding debt in the reporting currency of USD.

Net earnings/(loss)

The Company reported a net profit of $13.8 million in Q3 2009, compared with a net profit of $40.1 million in Q2 2009 and a net loss of $10.9 million in Q3 2008. The impact of non-cash charges for mark to market gains and losses is influential between the periods. This does not immediately affect cash flow in the reporting period but can have a significant impact on reported net earnings. As a result, EBITDA before undesignated hedge gains/losses is reported as a measure of operating performance on a consistent basis.

As a result of the increase in average gold price received in the period, the EBITDA before fair value adjustment for the period increased marginally compared to Q2 2009.

We seek Safe Harbor.

ferd98bull · Joined: 09 Mar 2006 Posts: 191

OceanaGold announces updated drill results & resource estimate for Panel 2 Deeps deposit

MELBOURNE, Australia, Sep. 14, 2009 (Canada NewsWire via COMTEX News Network) --
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OceanaGold Corporation ("OceanaGold" or "the Company") is pleased to report further results from the Panel 2 Deeps deposit which was first announced in April this year. Panel 2 Deeps is a sub-parallel zone located approximately 10 to 20 meters below the current area of mining at the Frasers Underground mine in the Macraes Goldfield in the South Island of New Zealand.

39 holes from surface and underground drilling were reported in April. Since that time, a further 23 holes for 646 metres of underground drilling have been completed into the deposit. The recent drilling has extended the resource extent by approximately 200 meters to the northeast and the deposit remains open to the south and east (see Figure A).
Results from the additional 23 holes drilled from underground are detailed in Appendix A which continue to demonstrate good thicknesses with grades of a higher average tenor than what is currently being mined in Panel 2. They include UDH5404 with 7.2m at 4.72 g/t Au and UDH5410 with 7.0m at 4.31 g/t Au.

A resource of the Panel 2 Deeps deposit has been calculated based on results from 63 holes completed up to July 31, 2009. This estimate is outlined in Table 1 below:

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Development on an exploration drive from Panel 2 has commenced (see inset in Figure A) which will provide access for further drilling for extensions at Panel 2 Deeps and also be used to target additional mineralization down dip from Panel 2. Drilling from this drive is expected to commence in late September.

Marcus Engelbrecht, Interim CEO & Chief Financial Officer commented, "The Panel 2 Deeps deposit is an exciting new area of the Frasers Underground that we believe has the potential to expand further to the south and east. While it is still early in the exploration process, the grades and widths look promising and we are hopeful that we can continue to expand and advance this deposit to a stage where it can be integrated into the mine plan by late next year."

This resource estimate disclosed in this release is an ordinary kriged estimate using a geologically constrained wireframe. Raw assays cut to the 97.5 percentile (14 g/t Au) were used to create the composites for block modelling. The Panel 2 Deeps deposit is located within the Frasers Underground mine at the Macraes Goldfield. This is an active mining operation that is fully permitted and holds the required environmental consents. The Company is not aware of any relevant issues at this time that could materially affect the validity of this resource estimate.
Quality Control

Mr Jonathan Moore, B.Sc (Hons) Geology and Dip.Grad. Physics, is the Resource Geologist with Oceana Gold (NZ) Ltd and is the Qualified Person under National Instrument 43-101 - Standards of Disclosure of Mineral Projects ("NI 43-101") for the technical disclosure in this release and has verified the data disclosed, including sampling, analytical and test data underlying the information contained in this release. The geological interpretation was completed by Mr Sean Doyle, Senior Underground Geologist, BSc (Hons), MAusIMM. Based on the current interpretation, the assay intervals as presented are believed to represent true thicknesses. Samples, collected at approximately 1m intervals from sawn diamond core, were prepared and assayed by fire assay methods at the OceanaGold facilities at Macraes, New Zealand. Standard reference materials were inserted to monitor the quality control of the assay data.
For further scientific and technical information (including disclosure regarding mineral resources and mineral reserves) relating to the Macraes project, please refer to the NI 43-101 compliant technical report entitled "Independent Technical Report for the Macraes Project located in the Province of Otago, New Zealand" dated May 9, 2007, prepared by J. S. McIntyre, I. R. White and R. S. Frew of Behre Dolbear Australia Pty Limited, N. A. Schofield of Hellman and Schofield Pty Ltd., B. L. Gossage of RSG Global Pty Limited and R. R. Penter of GHD Limited available at www.sedar.com under the Company's name.

About OceanaGold
OceanaGold Corporation is a significant Pacific Rim gold producer with projects located on the South Island of New Zealand and in the Philippines. The Company's assets encompass New Zealand's largest gold mining operation at the Macraes complex in Otago which is made up of the Macraes open pit and the Frasers Underground mines. Additionally on the west coast of the South Island, the Company operates the Reefton open-pit mine. OceanaGold expects to produce 280,000 - 300,000 ounces of gold from the New Zealand operations in 2009. The Company also owns the Didipio Gold-Copper Project in northern Luzon, Philippines.
OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol "OGC".

Cautionary Statement
Statements in this release may be forward-looking statements or forward-looking information within the meaning of applicable securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Such forward-looking statements include, without limitation, statements with respect to any future reserves attributable to the Panel 2 Deeps zone and estimated production form the Company's existing properties. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including, among others, the accuracy of mineral reserve and resource estimates and related assumptions, inherent operating risks and those risk factors identified in the Company's Annual Information Form prepared and filed with securities regulators in respect of its most recently completed financial year. There are no assurances the Company can fulfil such forward-looking statements and, subject to applicable securities laws, the Company undertakes no obligation to update such statements. Such forward-looking statements are only predictions based on current information available to management as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control. Accordingly, readers should not place undue reliance on forward-looking statements.
This announcement does not constitute an offer of securities for sale in the United States, or to any person that is, or is acting for the account or benefit of, any "U.S. person" (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") ("U.S. Person")). The securities have not been, and will not be, registered under the U.S. Securities Act and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. Persons unless the securities are registered under the U.S. Securities Act or an exemption from the registration requirements of the U.S. Securities Act is available.
Note: all assays top cut to 10g/t Au. UDH drill holes are collared from underground development.
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SOURCE: OceanaGold Corporation
Mr. Darren Klinck, Vice President, Corporate & Investor Relations, OceanaGold Corporation, Tel: 61 3 9656 5300