Oceana Gold share prices retraced some losses yesterday after the East Otago miner's share price slumped to a low of A44c, further slashing its market capitalisation to $80 million.
During the past 15 months, Oceana's market capitalisation has plunged 88%, from $A668 million to $A80 million, as it wrestles with funding issues compounded by the worldwide credit crunch.
Dual-listed Oceana shares slumped to A44c on Wednesday, an all-time low since its June 2007 principle relisting on the mining-friendly Toronto stock exchange of $A4.15, but retraced 22% to trade around A55c yesterday, following a spike in global gold prices.
ABN Amro Craigs broker Peter McIntyre said the global credit crunch was Oceana's main problem as it sought to raise $US185 million for a gold-copper development mine in the Philippines.
The Didipio project requires a total $US320 million injection after development costs blew out by 100% in May this year, which was followed by 85% of development work ceasing on the site.
"New Zealand cashflow is holding up the whole business at the moment," Mr McIntyre said of Oceana's open-pit mine in Reefton and open-pit and tunnel operations at Macraes, in East Otago.
The two sites are forecast to deliver up to 275,000oz of gold this year, with the 18-year-old Macraes mine having produced more than 2.5 million ounces during its lifetime.
