re: Ann: EVG commences construction on Las La... Hi CY7,We both...

re: Ann: EVG commences construction on Las La... Hi CY7,

We both obviously want the same thing - for the POG to keep going north and for EVG to make truckloads of money for us.

Just as you are concerned about production hiccups and EVG's ability to deliver into any hedge commitment, I am concerned about any possible fall in the spot price of gold in the future.

As you are correct in saying that nothing goes perfectly in setting up a new business operation and production delays could occur, I think that history shows that most (if not everything) reverts to the historical average trend over time.

Time will tell, and I am sure that BJ will be well advised when he makes his decision on when/ whether to hedge or not.

I'm definately hoping that you are correct and that the spot price of gold does in fact go to $1,500oz and stay there and that under that scenario BJ hasn't hedged 50% of LL production... that will mean that I was wrong and both you and I will be very very rich !!! :-)

I am probably being too risk adverse in thinking it may not be a bad idea to take the bird-in-the-hand now instead of the two-in-the-bush, even for 50% of the production. That would still leave 50% exposure to any upside in POG (and downside too!).

Either way mate, I think that your 2007 investment is about to pay off!

Cheers
John