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
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
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.