I would imagine that future projects (Venezuela, Ecuador, Peru, others) will be largely funded from the cashflow of operational projects as they cummulatively come on stream.
With their first project, LL looking to provide an estimated $35m USD per year onwards from when it is commissioned (lots of assumptions here) and the Dec 2011 options(assuming they are in the money) I would hope there will be no further serious dilutions.
The only caveat to this is if drilling or PFS results are so good for either Venezuela or Ecuador BJ may decide to accelerate the development plans to take advantage of the sky rocketing gold price. In that case, I would be okay with dilution as the benefit would flow through to us, even though dilution had occurred.
On another matter - How much REAL sovereign risk in Venezuela is there for EVG? Sure it's a left/ socialist country but I think EVG has covered itself as best it can:
1) JV with Government owned company 2) Venezuela is only one of four known projects (Peru shelved and not being looked at until LL is commissioned)
Time will tell..
Cheers John
EVG Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
