re: Ann: Further Delays to Financing Las Lagu...
Hi sduncan,
LL wont be in production by the end of 2010. Commissioning was scheduled for March 2011 (9 months away). I would now add another month to that given the additional delays in accessing funding and the required slow down on the construction site.
In terms of the share price I think it will be dictated by several key announcements for the remainder of 2010. These could include:
(1) Bringing JV partner into line (2) Completion of Mac Bank process and access to funding (3) Hedging of gold at a high price (4) Consultants report on Ecuador (5) Critical milestones in construction process at LL (6) Commencement of drilling in Ecuador (7) Something from left field - corporate activity ??
Give it enough time, and assuming BJ can pull this off I firmly expect the SP/ MC to be around 20c/ $100m within 2 years.
LL is now estimated to spit out $160m in cash to EVG over the project life, still using some conservative later years POG inputs. NPV >USD $100m.
Cheers John
EVG Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held