OceanaGold Corp completed a CAD$150m equity raising, the proceeds of which will be used to fund growth projects and exploration and for corporate and working capital purposes.
Although no debt will be retired, Macquarie assesses the new funds will improve OceanGold’s net debt position and ease funding concerns for its capital programmes. Also, 2020 has been challenging with covid-19 limiting access to a higher grade, the broker believes the company is through the worst.
The Outperform rating is maintained with a price target of $2.80.
Sector: Materials.
Target price is $2.80.Current Price is $2.15. Difference: $0.65 – (brackets indicate current price is over target). If OGC meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
