2020 guidance is slightly better than UBS forecast. Production ex Didipio is expected to be 360-380,000 ounces at an all-in sustainable cost of $1025-1075/oz.
Disruption (Didipio) and transition (Waihi) means the 2020 earnings outlook is not indicative of the underlying asset, in the broker’s view.
Moreover, the stock is lagging peers and the 40% lift in the gold price. UBS maintains a Buy rating and $4 target.
Sector: Materials.
Target price is $4.00.Current Price is $2.83. Difference: $1.17 – (brackets indicate current price is over target). If OGC meets the UBS target it will return approximately 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
