re: Ann: Further Delays to Financing Las Lagu...
Hi cy7,
Agree with your numbers.
Basically the market is applying a +90% discount to the EV/POG due to the still-to-be resolved risks.
ie, EV/oz $92 vs. the actual projected margin when LL is in production of circa +$1,000 per oz.
At current POG LL will produce free cash flow p.a. of $65m. (ie 65k oz x $1,000 cash margin). Whilst Mac Bank and the Dom Government take a reasonable chunk, the LL project ALONE is expected to throw out $160m to EVG over its project life.
As you say cy7, the SP is overly conservative IMO and not correctly pricing in the risk.
Cheers john
EVG Price at posting:
4.6¢ Sentiment: Buy Disclosure: Held
