Oceanagold shows a Drop in Production but Constant Earnings

    On October15 Oceanagold released it's third quarter results.There were some small surprises but not big ones.First it has temporarily suspended operations at it's Didipio mine in the Phillipines since mid-July.It is awaiting a Court of Appeals injunction decision which should reverse a lower court decision.Secondly as reported in another blog on Wordpress   (Blogdaleup dated October 5,2019) their Waihi (New Zealand) mine has found a much larger ore body at the Martha underground project near the old mine.Production will not change in Q4 but is expected to in Q2 of 2020.In their other mine in New Zealand production was flat year over year.But it will increase in Q4.
         Changes in the Structure of OGC Mines
   Investors may have to look past this quarter and even Q4.But Oceanagold has some very positive results coming in quite soon.This blog foresees that operations will be running again by yearend at Didipio.While their Macraes mine found new higher grades of ore at their Golden Point project.They are working on an economic study to examine opening a new underground operation.Furthermore their Waihi project found a new 2.5 to 3 million ounce deposit close to the existing mine. It also has a sizeable silver deposit (in several veins) available for silver streaming.Oceanagold tells shareholders that it recently bought another 178 hectares near the Waihi operation.These changes, along with the silver operation could change OGC from a small to a large mid-tier gold stock  by 2021.             

         Year-end Results
  The temporary suspension at the Didipio mine will not have a big impact on OGC's annual earnings.The Didipio mine would have represented the growth in 2018.But the CEO  says that production for the year will be 470,000 to 480,000 ounces of gold and 10,000-11,000 tons of copper.Using a copper price of $US $2.85 /pound and costs at 50% of the price this blog sees  2019 net income as almost flat with 2018.This ,of course, is partly explained by the increase in the price of gold and more efficient operations by Oceanagold.But in Q1 2020 investors should see some increased production from their Waihi  mine and hopefully the Didipio        mine.This blog done in January of 2020 will be much more hopeful.                  https://www.vaneck.com/row/ https://www.sprott.com/