Decent volume for EGA today, touched the all time high at 34c, then settled back at the close.
There is a bit of resistance at 34c, but once through it, things should improve. I like that we are going to see two MRE upgrades before the DFS. Should finally have consistent news flow over the next 6 months.
Also like the fact there may be another high grade lode to mine close to surface and the existing decline.
AISC is going sub $100o and capital required to access these new lodes is minimal. The biggest CAPEX increase is likely to be a larger processing plant to deal with the extra tonnage. Probably looking at a 400kt plant up from 200kt. But the positive will be production closer to 100k p.a, so any additional debt would be quickly paid back.
EGA Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
