I think a better way to look at the liability position is to mark it against current assets (cash, prepayments, inventory position, receivables). So that liabilities = $438 mil vs current assets = $190 mil. Leaving a deficit of $238 mil.
In the current environment, we're looking at FCF of about $100 mil... minus finance and exploration and corporate expenses of about $50 million. And we probably have a capacity to pay off $50m a year or about 5 years to get to a nil position.
We can also argue the other side of the coin, and say if the gold price increases to $1300 and we're laughing... and say $1400 and we're swimming in it (ie. in 5 years time, pay all debt and have Hounde up and running).
Anyway, me likes the risk/reward proposition.
EVR Price at posting:
65.5¢ Sentiment: Buy Disclosure: Held
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