You can find details about EVG in this presentation where the costing of the LL project is located (based on USD900/ounce gold). The NPV at the time was $USD78.8m. Obviously at a gold price of $USD1250 it should be considerably higher.
If you go through the press releases you will find the announcement about Macquarie Bank agreeing to provide finance on the basis of hedge for the LL project. The hold up in getting this finance is a technical issues to do with having the project partner with a 7.5% stake in the project agreeing to the registration of a MacBank mortgage in the Dominican Republic over their share in the project (EVG has already agreed to this for its 92.5% shares).
The most informative posts you will find are from poster JID who has updated the NPV figure for the higher POG, and provided a updates on the project (see his posts). JID has a considerable number of shares in EVG.
EVG is worthwhile as a longer term investment if they can get a second project up as LL has a limited life of around 7 years. Profits from LL will be used to fund other South American projects, with the next one likely to be the 100,000 ounce/pa project in Ecuador in which EVG has a 65% stake. The Venezuelan project mentioned in the above report is dead due to adverse circumstances there.
Once finance has been formally finalised for LL then I expect the share price to go to at least 8 cents, which is what other parties have recently been willing to subscribe funds at.
loki
EVG Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
