Hi Loki,I'm not sure why you'd consider them to be on of the...

Hi Loki,

I'm not sure why you'd consider them to be on of the more "speccie" goldies, for the following reasons:

1) They have JORC resources of 600koz Au at LL
2) They have started construction at LL
3) Production scheduled in 14 months time at LL
4) They are fully funded through to LL production
5) They have three other projects (Venezuela, Ecuador, Peru)
6) 4 different countries spread soveriegn risk
7) Costs, revenues, debt all in USD
8) Recent capital raising of $3.6m to fund upcoming drills
9) LL and Venezuela will be in lowest production quartile
10) Insto's on register eg Mac Bank
11) MD buying shares aggressively
12) NPV of LL was $79m at $900oz - market cap EVG $27m
13) Every $100+ in POG = $10m USD profit increase
14) Within 3 years COULD be producing 265koz pa, 170koz attributable to EVG
15) Venezuela and Ecuador could add 2 x 1moz to JORC resource

IMO this one stacks up well against those that have found "gold anomalies" and trying to work out if gold is there (eg MEI, COV) or those producing in Australia and incurring margin squeeze as costs are in AUD and revenue in USD (eg SLR, SBM, etc)

Personally, I think that it would be conservative to expect a 100% SP re-rating in each of the next four years from here (ie 8-9c per year for at least a 4 bagger, although I would not be surprised if it much more looking at other 170-250koz producers market caps and the additional PE respect that occurs when explorers/ developers turn into producers).

Cheers
John