I'm totally lost in the wilderness on this company.
As portrayed by their web site the comparitive market cap. and fundamentals of EMP with CRS, LHG etc. is most favorable. Great upside to price of gold, however its share price is languishing. The Dec. 02 presentation found at http://www.emperor.com.au/Presentations/EMP_Dec2002.pdf is spot on and shows why EMP is undervalued and poised for growth.
* DRD buys a 14% stake in the company in late 2December.
* Fully finded by ANZ to phase 2 which will see a dramatic 40% increase from 130k ounces per year to 180k ounces.
* Reduction in costs as phase 2 is established
* Resource of 3.5 million ounces.
* Mine life in excess of 10 years.
* EBITDA 30% compund growth over next 3 years from A$14.6 to A$33.2
* Great exploration potential
* Highly leveraged to gold price- 13% increase in the gold price to $350USDL would casue a 30% increase in tehse multiples, resulting in a jump to $1-73 share price (50% increase to $2-00 when totally unhedged in 2007)
Can some genius out there tell me why EMP is not trading in the high 90's now?
Was the 15,000,000 traded yesterday between 74-76c a bail out in anticipation of a big fall in the POG or what?
I can not for the life of me understand the weakness in EMP share price.
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