As a longer term believer in EGA I also wonder what is holding back EGA. The best I have been able to come up with is:
1. Not being hyped. EGA management seem to be more interested in actually getting on with the project and mining than hyping the project to do another CR.
2. Pretty tightly held. It is not a very liquid stock and moves around alot on the basis of small buy-ins or sells. If you want to buy in you need to be patient or pay a 20% premium.
3. Terrible name. It is an mining engineering in-joke. It does not sound like a gold stock.
4. The DFS was pushed back 6 months because they found more gold. I think this is the main reason for the underpricing. People don’t look at why the DFS was delayed, just that it was delayed and assume the project is off-track. What should have been a plus has become a negative.
5. Change in brokers. Brokers at this end of the market can be petty.
The only downside to a low SP is it increases our dilution once EGA needs to raise to build, but I am hopeful the drill results will get the SP up into the low 30s before the beginning of March and the DFS will kick it up into the 40s by May. If not I am just going to have live off the dividends
EGA Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
