Ann: Financing of Las Lagunas Gold Project, Domin, page-18

re: Ann: Financing of Las Lagunas Gold Projec... Hi Guys,

I've been pretty quiet on EVG lately for reasons that will become clear soon.

However, Ubid, I am still bullish on EVG.

Some quick numbers however that are in the public domain and accessible to all:

Previous LL NPV inputs:

POG USD $900
Cost per oz USD $325
AUD rate: 0.75

Current LL NPV inputs:

POG USD $1,232
Cost per oz USD $325
AUD rate: 0.88

Affect on calculations in AUD:

Then:

Price of Gold in AUD: $1,200
Cost of prod per oz in AUD: $433
Margin in AUD: $767
LL NPV in USD: $78m

Now:

Price of Gold in AUD: $1,382
Cost of prod per oz in AUD: $369
Margin in AUD: $1,013

Difference in operating profit = +32%

Most of this will drop down to an improvement in the NPV of the LL project. There will be increased Dom Republic Government royalties, taxes, profit share but...

... the LL project will now have a significantly greater NPV than previously reported.

NPV of LL project in USD MAYBE up to $103m ( AUD $117m)

Hedge at these rates (50% of first 4 years production) will lock in part of this NPV now with upside benefit if POG continues to rise.

cy7 - I understand (from the source, not Chinese whispers) that a hedge contract will allow for 'roll forward' provisions if production does not meet expectations or is delayed at 'minimal costs', thus reducing the risk to EVG that has previously been talked about.

Cheers
John