Top member reports
No meetings
Consensus community valuation
The consensus valuation is for members only and has been removed from this chart. Click for membership options.
No value forecast available for this company
Contributing Members
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#Company/Corporate Update
stale
Added 4 years ago

28-Aug-2020:  OceanaGold Provides Corporate Update

Another reminder here about the sovereign risk associated with gold mining in various geographies, like West Africa and in OGC's case, the Philippines.  We're not talking about the chance that a national government's treasury or central bank will default on their sovereign debt, or else implement foreign exchange rules or restrictions that will significantly reduce or negate the worth of its forex contracts, that being the most obvious example of sovereign risk, but the type of sovereign risk where the government of a country can move the goalposts or pull the rug out from under a foreign company operating in their country, for instance by nationalising an industry, or refusing to renew a permit, or by changing the operating conditions under which a company must comply to stay operating within the country.  There are other risks, such as political instability (Mali) and sudden dramatic royalty or tax increases or additions.  

Concerning their Didipio mine in the Philippines, OGC said today:  "The Company continues to engage with the Philippine National Government on advancing the renewal of the FTAA which is currently with the Office of the President pending a decision.  The Company has not been provided any timeline on when a decision will be made on the renewal.  Since mid-April, the Company has temporarily laid-off approximately 500 workers and is required to either reinstate or terminate the workers effective mid-October.  The Company will be required to provide notices to the workforce of its intent in mid-September."

There's more, but the crux of it is that the future of the Didipio mine is completely in the hands of the Philippines Government now.  And that's why I avoid companies like OGC, as I explained in my straw on RSG's results this morning.

Read More