Where did Saville say he was pro EVR? Is there a link or do you subscribe to his newsletter?
As a general observation, I would make sure that I had plenty of funds on hand just in case the markets tank badly and there are heaps of opportunities to get back to square.
Goldies and gold will tank if the markets have a fit, just like they did in 2008. I have plenty of cash on hand (over 60%).
In relation to EVR, I agree with Saber - beats me why this is so unloved. Have a read of their latest quarterly report and see what is bad and good - I suppose you have done this. It is a long report, but worth reading.
Ever since ADU merged with EVR it has been a pretty illiquid share, and the share price has gone nowhere. However I see the mergers as positive because ADU were strapped for cash having to do a lot of work to keep the villagers happy so there would not have been any progress anyway until recently.
In addition the market is very different from when ADU peaked in early 2011. That was the top for the goldie indexes and due to the very high prices paid for the takeover of various companies eg AND (ASX listed) and Red Back Mining (TSX listed - $7 billion t/o). Semafo had to do a writedown for its takeover value and has struggled with that projects high costs. Other adverse factors for the goldies in west africa have been high opex and capex costs, instability in some regions, higher taxes, less willingness by investors to take risk and preferring dividend paying shares.
The strength of EVR are covered in the quarterly report - growth and plenty of cash on hand to cover debt, expansions to 450k ounce pa in train funded from internal operations. Just the same, when people need money they will sell the better shares because these have better retained their value relative to the specs and this will reduce the share price as there are not that many buyers these days.
Good luck with EVR, but do not expect rapid gains which are to be hard to come. May be in 2 years time when EVR has undertaken its currently planned expansions we will see a $3.50/share price tag. That would be still undervalued IMO but times are not what they used to be.
loki
EVR Price at posting:
$2.06 Sentiment: Hold Disclosure: Held
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