Re your comments regarding exposure to AUD/ USD. After reading your post I read the annual report just to make sure:
EVG incurs both its costs and revenues in USD. The LL project, in Dominican Republic will incur its operational costs in USD. EVG has also borrowed all funds in USD as far as I can see.
Given that they will be receiving their revenue in USD this removes all operational forex risk, unlike Aussie miners who have to worry about operational costs being in Aussie dollars, that with an appreciating exchange rate cut their profit margin as their revenue is earned in USD.
The POG will continue to rise as long as the USD is falling. In following on from cy7's discussion about hedging, it would be best (if EVG can time it correctly) to hedge/ put their gold production when the POG in USD is high (due to the falling dollar) for a long time into the future.
Then, as the AUD/ USD inevitability reverses (as all things do over time), they will have locked in an excellent USD POG, have a wide operating margin, and then also be able to covert their USD profits into AUD over the coming years as the AUD falls, thus increasing their profit even further.
Obviously easier said than done.
I can't stop buying this little fellow, especially before the 18th December when you effectively get a FREE 15c Oppie for every 2 heads you buy.
Cheers John
EVG Price at posting:
8.4¢ Sentiment: Buy Disclosure: Held
