I agree that mine supply needs to go down for the gold price to start moving up, or at least stabilise. However, the story going around is that global mine supply will peak next year - last year it rose about 10%, which I assume was around 250-300 tonnes.
I have only got 1,000 shares left in EVR, which are the only gold shares left in my portfolio. I just do not see any reason to hold them because of their high debt (some $350m if you include accounts payable plus there are some leases as well).
I have not bothered to read the full quarterly report or listen to the webcast. The summary I read indicates they are doing as I had expected, actually somewhat better, and I think are on track to get to AISC of USD950. However I expect the gold price will head down to that level and possibly lower (for a short period) so that they are likely to be in breach of their debt covenants. I do not know how the bankers will treat them - get special treatment because the CEO is an ex-banker and some of the directors are well connected?
I like EVR heaps (except for eboloa, debt, them being in west africa), and if they are one of the survivors they should have a good future.
loki
EVR Price at posting:
47.5¢ Sentiment: None Disclosure: Held
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