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Monday, March 29, 2010

Oceana Gold (TSE:OGC) Closes Hedge Book

Oceana Gold closing hedge book

Oceana Gold (TSE:OGC), like its competitors, has closed its hedge book, signaling their belief a stronger gold price is here to stay for some time.

After closing its hedge book this week, Oceana will generate around $2 million in free cash flow a week, assuming gold prices will stay at $1,100 or above; which is definitely has a good chance of doing, as evidenced by finding support in a very difficult economic environment in Europe, where the sovereign debt crisis weakened the euro and strengthened the U.S. dollar, putting downward pressure on gold prices.

Chief operating officer, Mark Cadzow, said, "Oceana is now in a position to present itself as an unhedged gold producer, and a significant one at that, at a time when gold is pretty strong and people are still looking for a safe haven."

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