Group production of 108,000 ounces at an all-in sustainable cost of US$980/oz were in line with forecasts. Didipio remains in limbo, pending the outcome of the mining licence renewal process.
Waihi is also in transition, with mining to temporarily cease in the March quarter before a resumption at the Martha underground in 2021.
UBS believes the share price reflects the situation, failing to lift with the gold price over 2019. Buy rating maintained. Target is steady at $4.
Sector: Materials.
Target price is $4.00.Current Price is $3.06. Difference: $0.94 – (brackets indicate current price is over target). If OGC meets the UBS target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
