Oceana Gold trucks seized at Didipio

Oceana Gold has had some of its trucks seized by local government agencies in the Philippines while discussions over interpretations of tax exemptions continue.

Oceana Gold, which operates gold mines at Macraes and Reefton, provided a market update yesterday which alerted investors to the seizure of trucks used for transporting concentrate. Transportation of copper-gold concentrate from its Didipio Mine had been temporarily suspended.

However, while those discussions took place, mining and processing operations continued, a spokesman said.

Didipio was the first project to be built and start operations in the Philippines under the Financial and Technical Assistance Agreement.

Craigs Investment Partners broker Peter McIntyre said the latest update was another dilemma for investors and the share price.

The company results came out on February 15, and while they were ''reasonable'' and guidance was good, the share price had fallen 17% since then, he said.

''The truck seizures are another complication for the company and one it does not need.

''No-one knows what the outcome will be but they will be hopeful. Markets don't like uncertainty and this is another uncertainty.''

Oceana Gold's reported earnings for the year ended December were $20.7 million. The company received an average $1675 per ounce of gold received and sold 230,119 ounces.

The company has been revising its guidance downwards. Adding to the uncertainty were

falling gold prices and news large global investors such as George Soros were selling out of gold, Mr McIntyre said.

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