Oceanagold meets Guidance,gold price rises, but Share Price Falters

    The gold price has risen for the last six months and now trades at almost $1575 an ounce -a 25% rise since June 2018.As the currencies,including the American dollar, start to be less stable investors move into gold.And this has been the case again in 2019-2020.But not all gold stocks have reacted  in parallel to this rise. Oceanagold which is listed on the Australian index(ASX) and the TSX took a tumble in the fall and has not yet bounced back.In fact, in June 2018 OGC traded at $3.60.The  main cause  of the drop was the closing of their mine in the Phillipines called Didipio.Still Didipio produced 83,000 ounces of gold and 10,000 tonnes of copper.The mine closing was started by a local court but  Oceanagold appealed and won in a federal court.Now the matter is being reviewed by the President of the Phillipines and a victorious decision is expected by the end of Q1.However this blog expects some conditions to be attached to the upcoming victory.
          New Production
   Oceanagold (OGC) has not been dormant while waiting for the Didipio decision.In the back half of 2019 Oceanagold has completely replaced the earnings and the lost production in the Phillipines. This was forecasted in my blog on Workathon of 23/10/2019.Their mines in America and New Zealand have increased production by 20-26%.In addition, they have discovered new gold ore at their Waihi mine and especially in their Martha Underground project.Production at their Waihi mine will likely increase in 2020 and the Martha Underground in Q2 2021.Production guidance will rise in 2020 with or without their Didipio mine.And some experts ( such as Jaimie Carasco) are predicting a $1600 price of gold in 2020.
      New Gold Reserves at old Mines          

  The main reason for increased guidance will be the new reserves they have located.And these new reserves are mostly extensions of existing mines.So they are analyzing their properties more thoroughly than in the past with quite effective results.Often the best place to look is just beside your old mine.They also bought a considerable amount of land around their Macraes discovery and expect a substantial ore body.Lastly they found a new gold discovery in New Zealand not too far from their other New Zealand mine.This reduces the Didipio mine to being a wild card although a nice wild card to have.