Plough, re the cash - I have just spent quite some time reading over the AR. From page 11 of the AR:
"In December 2008, the EnviroGold Consolidated Entity formally accepted a credit approved offer from Macquarie Bank Limited for a US$35 million financing facility for the Las Lagunas project, and is currently engaged in negotiations with the Bank for additional funding to avoid EnviroGold having to introduce a minority partner to the project to meet outstanding equity requirements"
From this I take it that EVG have a bit of paper saying that Mac Bank stumps up $35 mill when required during the construction of the LL project. Thus the 'cash' entry doesn't yet appear in the financial accounts, but in the notes they have a narrative saying that it is all in place.
Further down the AR from page 56, Note 20:
"The Company has also applied to a major Dominican Bank for a four year US$2.5 million project loan and a US$2.5 million overdraft facility for the Las Lagunas project to complete the financing arrangements."
This too, if completed, would not appear on the 30/06/09 accounts, but be ready and waiting to access during the appropriate phase of the construction.
I read with interest Note 22 that talks about the legal dispute with IME from Nov '08 where EVG is suing for $14.59 mill for breach of contract and misleading and deceptive behaviour, whilst IME is counter-suing for $1.87 mill in unpaid fees.
Whilst legal disputes are always a red flag for me as an investor, it appears that there COULD be greater upside than downside for EVG depending on outcome.
Cy7,
Re the hedging and put options, etc I am in unfamiliar territory here (simple equity investor :) here). Are you going to the AGM? or is someone else going who would be willing to raise the question?
Plough,
Thanks for heads up on other goldies. Have a few SLR. Charlie Aitken's very big on goldies for last several weeks and identified several smaller ones to look at today including RSG, IAU, BDG, DOM, OGC.
Cheers John
Cheers John
EVG Price at posting:
8.1¢ Sentiment: Buy Disclosure: Held
