In less, than 12 months EVG will be producing earnings of 6c per share from the Dominican Republic gold tailings project. With the current share price at 6c, this works out at a P/E of 1 fully diluted. Even if we assign a P/E Ratio of 5 (which is very conservative), we would be looking at 30c share price once production has been confirmed just on this one project. Hopefully, by then EVG will have proven up 1,000,000 oz from their project in Equador and they will be on their way to getting it into production, if this happens it would have to add a further 20c to the market cap IMO. So that is why I am hanging in here, we could have a company that is worth 50c in 12 months time.
Injection of funds from the options at the Dec 2011 will bring in $30 m which should be pretty helpful for funding EVGs Equador and Peru projects. I would like to see just how much cash these projects will require, but hopefully these can be funded by profits from the Dominican Republic tailings project and cash from the options.
There could also be other left field things that could happen between now and 12 months into the future aswell, especially if the cap raising with the South American investor comes off.
EVG Price at posting:
6.3¢ Sentiment: Hold Disclosure: Held
