OceanaGold is being penalised by more than Didipio’s value, Credit Suisse assesses, which signals investor aversion to the uncertainty in the Philippines.
The company has guided to 2020 production of 358-380,000 ounces at an all-in sustainable cost of US$1075-1125/oz.
The broker reduces estimates for earnings per share on the removal of Didipio and lowers the target to $4.20 from $4.75. Outperform maintained.
Target price is $4.20.Current Price is $2.63. Difference: $1.57 – (brackets indicate current price is over target). If OGC meets the Credit Suisse target it will return approximately 37% (excluding dividends, fees and charges – negative figures indicate an expected loss).