PMEA Blog

Melbourne-based Oceana Gold Ltd plans more acquisitions to follow up its A$80 million takeover of rival miner Climax Mining Ltd earlier this year to feed rising demand for the precious metal.

Chief executive Steven Orr told Bloomberg that the company is considering targets in Papua New Guinea and Australia with the aim of being a consolidator in the gold mining sector.

“There`s a significant number of undervalued assets which present opportunities for us to do very accretive transactions,” said Mr Orr.

Oceana, which is 11% owned by New York commodities hedge fund Ospraie Management, has a market capitalisation of A$480 million at A$0.73/share, with chiefly gold assets in New Zealand and the Philippines, which by 2008 are forecast to produce 550,000 oz/y of gold and equivalent.

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