It is a solid result along the lines of what I expected. The problem is the interest on the loans and the net borrowings of about USD250m plus over USD120m in accounts payables (at end December 2014).
At the current cash margins means it will take about 3 years to clear the loans and reduce the accounts payables, when factoring interest payments, some ongoing exploration and capital expenditure.
They will be depleting their ore reserves while the shareholders get nothing.
Then there is the approx. USD320m extra they need to develop the Hounde project. Its a good project but ..........
EVR is the sort of company you want to own in a rising gold price environment, but if the gold price tanks then they look pretty sick with the banksters wanting their pound of flesh.
I will look again at the situation later in 2015, but for now EVR is not worthwhile holding, unless you are concerned about not being able to get into at as good a goldie when the gold price bottoms. I do not have that concern.
loki
EVR Price at posting:
65.0¢ Sentiment: None Disclosure: Not Held
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