We bought OceanaGold as a turnaround story at 40 cents and the stock has almost increased tenfold since then. We believe it is still undervalued compared to other gold companies with a production in the range of 250-300,000 ounces . As the company's great project in the Philippines, Didipio, moves closer to production and also considering the potential for large new discoveries in the surrounding land package, the stock should be able to provide us with at least another double. Didipio will eventually increase the company's production to 360,000 ounces and reduce cash costs through larger copper credits. Comparing the future cash cost to peers we estimate OGC to be in the lowest quartile, once full production at Dipidio is a fact. Read more about OceanaGold in our latest research report.

On January 12th 2011, we sent out the following in a newsletter to our subscribers:
Since our last update on OceanaGold new information has been made public by the company.
 
The company's new guidance for 2011 indicates approximately 10% lower production and over 10% higher cash cost compared to our previous estimates. As we have predicted, the company also points to the fact that Didipio, through negative cash cost, is expected to improve these numbers. This is however not until 2013 or almost two years away.
 
On the bright side, the lower production and higher cash cost is most likely due to the company lowering its cut off grade which will mean a longer minelife for New Zealand.
 
Summarizing all this means that we no longer believe that OceanaGold will substantially outperform its peers in 2011, and therefore we lower our target price to C$ 4.20 until the end of 2011. We also change our recommendation to Hold.
 
We still like the company and believe in its capable management and will therefore continue to monitor it closely and might very well in the future return with an upgrade when we feel the time is right to again overweight OceanaGold.

On February 4th 2011, we sent out the following in a newsletter to our subscribers:
A few weeks ago we changed our recommendation for OceanaGold from Buy to Hold and lowered our target price. The reason for this was the guidance of lower production and higher cash cost for 2011 compared to our previous expectations. We could add that the fact that we were so close to the conversion price of the convertible bonds also made us feel that there were more shares that should share future profits.
 
The stock has now (surprisingly fast) come down enough for us to again see great value in this favourite of ours. The unpopular second private placement of C$ 115 million at C$ 3.50 means that the company has a very healthy cash position compared to the current MCAP of less than C$ 700 million and is fully funded for the ongoing Didipio development. We therefore changed our recommendation to BUY at C$ 2.62 yesterday and keep our target price for 2011 at C$ 4.20.
 
To end, we would like to remind you of some of the great drill results that have come out from Reefton. Our hope has been and is that expansion at Reefton will increase production and lower cash cost in New Zealand. We look forward to further drill results as well as the coming reserve update.

OceanaGold October 4, 2010
OceanaGold April 26, 2010
OceanaGold December 4, 2009

One way which we know is very much appreciated both by investors/analysts and of managements, is to invite the companies to Stockholm to tell their story. On October 4^th 2010, we had about 170 people attending the presentation made by Jim Askew and Darren Klinck:

* Listen to OceanaGold - Stockholm Oct 4, 2010