In July 2015 in what can be described as a “brave move”, OceanaGold (OGC.TO) (OGC.ax) bought Romarco for CAD$856m in order to get its hands on the Haile gold project, framed as a 540,000 oz Au per year operation that would be able to produce at U$600/oz cash cost.
What could possibly go wrong? Apparently quite a lot.
Un-named observers of matters Haile have learned that the changes, framed as “design enhancements” by OGC in its February 2016 NR, are anything but that. Those that really know about these things believe Haile has turned into a migraine-level headache for OGC, with overruns in capex and timeline to production (first ore through the mill was supposed to happen 4q16…kiss that goodbye).
As usual, IKN vouches for its sources. Don’t say you weren’t warned.