09:52 AM EDT, 05/13/2024 (MT Newswires) -- OceanaGold Corporation ( OCANF ) was down 2.5% early Monday after the company announced that its wholly owned subsidiary, OceanaGold Philippines, Inc., has completed the initial public offering of 20% in the outstanding common shares of OGPI on the Philippines Stock Exchange. The shares are listed under the ticker 'OGP', and trading began on May 13, 2024.

A statement noted OGPI holds the company's interest in the Didipio Mine and, pursuant to the terms of the renewed Financial or Technical Assistance Agreement, was required to list its common shares on the PSE. The Offering was a secondary offering of common shares and the proceeds were received by a wholly-owned subsidiary of OceanaGold ( OCANF ).

Monday's statement also noted the final Offering price was 13.33 Philippine peso per share for 456,000,000 common shares of OGPI and gross proceeds totalling 6.08 billion pesos (approximately US$106 million) were raised. Available proceeds from the Offering, net of fees and taxes, will be applied to the repayment of OceanaGold's ( OCANF ) debt. The company had $160 million of debt at March 31, 2023.

In a note on the update, National Bank -- which has an Outperform rating and C$4.50 target on Oceanagold ( OCANF ) -- said it currently values Didipio (80% basis) at C$717 million making up near 19% of its mining asset value of its overall NAV.

OceanaGold ( OCANF ) remains National's Top Pick in the intermediate precious metal space for its significant near-term production and EBITDA growth as the Haile U/G ramps up in 2024. When coupled with the proceeds from the Didipio listing and Blackwater project sale, the bank currently estimates OGC moving into a zero debt position before year-end. National derives its C$4.50 target price for OceanaGold ( OCANF ) from a 100% weighted 3.50x NTM EV/EBITDA target multiple, which implies a 1.00x P/NAV multiple. As of Friday's close, OceanaGold ( OCANF ) was trading at 3.3x and 2.7x National's 2024 and 2025 estimates on an EV/EBITDA basis and 0.73x NAV on a cash-adjusted basis.

Price: 3.12, Change: -0.09, Percent Change: -2.66