The price of gold has risen dramatically throughout 2020.In July it was trading at below $1800 an ounce and now an ounce sells for $1940 for an almost 10% rise.On the other hand,in July Oceanagold was trading at a 52 week high of $4.01 per share.Now it trades at $2.62 per share for a steady drop over the 2 months.Now should be a good time to buy.But Oceanagold (OGC) has one problem that is dragging down the share price.It's large Didipio mine in the Phillipines has been closed down for most of the year.
Production has been steady 
However OGC has been busy during 2020.They have gotten feasibility studies on all mines which includes mines in New Zealand (north and south island),and U.S.A. They have also developped their Martha Underground Project and their new WKP mine.They have discovered an increase in mineral reserves at their large Macraes mine of 250,000 ounces.Oceanagold tells investors that production guidance for 2020 will be 295,000 -345,000 ounces.And their Martha Underground project will commence in Q2 2021.
The Didipio Mine
The Didipio mine is being held up by concerns for the pandemic. According to a Manila website at this time there is no threat to OGC ownership but it needs an extension to it's operating permit.This website says also that apparently the Phillipines government believes that working in the mine could threaten the safety of the villages around the mine.Workers could bring the pandemic home with them and into the village.So at this time it seems that Oceanagold is awaiting a Covid -19 vaccine.However this blog believes that the Phillipines government could move faster on issuing a permit if they had a stake in the profitable Didipio mine.News on a covid-19 vaccine could send OGC back towards $3.25 per share.Selling the Phillipines government a small stake at a discount in Didipio might bring immediate news of a pending operational permit.Then OGC will surely head back to the $4.00 level.Especially if the price of gold beaks through the $2000/ounce level and this blog feels that it will soon.
