re: Ann: Company Interview. Strong Outlook f... Thanks. I read...

re: Ann: Company Interview. Strong Outlook f... Thanks. I read that Macquarie update today and they have OGC as an outperform with their $2.50 target maintained.
They suggest buying two stocks as the standouts for the sector and OGC is one of them.
They forecast gold production to grow through 2013-2015 and all in sustaining costs to fall (US$774 for 2014 and then $531 for 2015). $774 for next year is a very low AISC but that $531 for the following year is outstanding. These are not the old C1 cash costs/oz but all in sustaining costs/oz.
Great numbers and an excellent company even in a low gold price environment.
I especially like the company’s recent guidance that they will pay down $40mill of debt this quarter. That is $160mill free cash flow on an anualised basis! What other gold producer in Oz will achieve that? Maybe bigger brother RRL (only guessing) but that is more fully valued. OGC is looking very undervalued on its free cash flow at these low gold prices. This is one of only three gold stocks I have a straight out buy sentiment on (although one of those - MML- I consider a higher risk buy until they ramp up as promised).