Unfortunately there is a discount marked into the price of EGO due to it's inglorious history.
Whilst we are willing to bet that the new management is miles above what we had before the market is still not prepared to gamble the same way at this stage.
At the moment we basically have RG#1 and the gas plant with currently negative cashflow.
Until EGO can prove to be cashflow positive over a period of time (not sure what the market would view as sufficient time but I'd say it would need to be at least two quarters) and can prove up more reserves then we will struggle to get up to, or above, 1c.
The other uncertainties for the market is the planned consolidation, why buy 10m shares at $0.005 when feasibly you could wait for consolidation and buy 200k shares at say $0.18? and then there is a potential farmin deal or sale & lease back of the gas plant.
August will be the start of the positive news cycle with the commencement of tranche 2 and then in the following months, preparation for RGN#1 and release of the aerial survey results and possibly an updated reserves figure for RG given the aerial survey and production figures.
EGO Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
