Good news but it did not set the share price alight on the TSX,...

Good news but it did not set the share price alight on the TSX, which was closed last night for a national holiday.

For some reason EVR is doing better on the ASX than the TSX. There are less than 10k shares on sale below 90 cents, and nothing above that level. There are now fewer than 60m CDIs listed on the ASX after tens of millions were converted into TSX listed shares, so perhaps that is influencing their Oz share price.

While I expect the June quarterly report to be sound as far as progress on cost reduction and output, I would not be surprised if total net debt has increased to around USD240m. The positive is that most of the capital expenditure for 2014 has now been finalised so the net debt level should start to drop in the subsequent quarters (assuming the POG does not crack). I am betting that AISC will be under or very close to USD1,000/ounce by the end of the year.

EVR will make serious inroads into its debt if the POG heads back up to around USD1500, but perhaps that will not happen for another 12-18 months once the Indians are back buying gold at the former levels pre-import restrictions.

Will the POG stay above USD1300? I dunno, but there are expectations of it dropping down under that level in the short term.

loki