I see from the second page of the announcement that we are in for additional dilution this year to assist with funding for the Venezuelan Project.
Maybe this took the gloss of the main thrust of the announcement today and hence the static share price.
I am not too concerned about this, especially if the dilution is via a rights issue as opposed to a quick flick to institutional mates with retail holders missing out.
At least with a rights issue it give us the OPTION of participating. I'll e-mail the company and bring up this point.
EVG is now building up a good portfolio of projects that by the end of 2013 should see it producing significant quantities of gold. The trick will be each project operating and cash flow positive so that they can fund the development and construction of subsequent projects:
Las Lagona: Production 1Q 2011 - 65k oz pa Venezuela: Production 1Q 2012 - 100k oz pa 2 x Ecuador: Production 1Q 2013 - 100k oz pa Peru: Production by the end of 2013 - 75k oz pa
If all goes well then within 4 years EVG COULD be producing 340k oz pa; and I am sure that additional projects will be added between now and then also.
There is a lot of promise with this little company.
Since finding this only several weeks ago via HC I am already a T20 holder (this should concern me!) and I think I'll continue to add more.
Having Mac Bank on the register and the MD madly buying options and shares is a good sign .. follow the smart money.
Cheers John
EVG Price at posting:
8.4¢ Sentiment: Buy Disclosure: Held
