re: Ann: EVG commences construction on Las La... Thanks for your...

re: Ann: EVG commences construction on Las La... Thanks for your replies --- appreciate anyone who disagrees with my point of view.

It is after all a discussion board – pretty hopeless if we all had the same ideas.

I have been building a position in EVG since about Sept 2007 – the latest edition being the right issue at 3 cents --- and am now almost back to break even point.

So my questions arise from my observation of the company over this time – some very rosy projections in late 07 were not to eventuate --- and sometimes with company announcements they appear to shoot from the hip – so to speak. – we could do without clarifying statements and amendments.



I understand the point of view of other posters ---- and appreciate the advantage of working in South America (and potential disadvantages) ---- and being somewhat isolated from exchange rate fluctuations.



I posted as below under the Gold thread on 130609 --- I feel pretty confident that the break above $970/oz is no ordinary break and that $1500 is quite a reasonable target --- for this move.
I see much higher targets as possible.


“When Gold broke out of the former pattern in August 2007 it rose from $670 to $1000 – a 50% increase.

The break out point from the current Inverse H&S would be about $970 – a 50% increase on that price would be $1455 --- which is not dissimilar to some of the prices being put out there.

I’m not saying when or if it will break --- but if you were a betting soul --- the odds could well be in favour of the bulls --- from both a fundamental and technical perspective.

The longer the pattern takes to break – the bigger the move could be”



I don't care about being right or wrong from an ego point of view – but financially I would be disappointed after all the ups and downs of the last 2 years if EVG committed 50% of their production at current prices ---- prior to a substantial run in prices.


The downside of forward selling is not so much/only the potential of forgone revenue --- it is the potential unlimited losses that can arise in the event of a increase in the price of gold combined with a production/development issue.


I do not mean or wish to down ramp the company --- but in the long term interest of the company and its shareholders open and frank discussion should be encouraged and can be healthy.

Regards to all --- cy7