Capital costs to complete Las Lagunas Project US$ 39.0M Project Finance: US$ 22.0M Partner (Dominican Republic): US$ 4.5M EnviroGold Ltd: US$ 12.5M ** Total in US: $ 39.0M
** At an exchange rate of US$0.83 to A$1.00, A$15,150,000 is equivalent to US$12,574,500. At an exchange rate of US$0.90 to A$1.00, A$15,150,000 is equivalent to US$13,635,000. Any funds not required for the Las Lagunas Project will be used for working capital. ----------------------------------------------------------------------------------------------------------
As of today the 29th Feb with an exchange rate of US$94.88 to A$1. The same A$15,150,000 (which is similar to the A$15.36 mil balance as @ Dec 07) is equivalent to US$14,374,000.
So that puts EVG A$2 million ahead with its construction budget as construction starts. --------------------------------------------------------------------------------------------------------
I notice a Steven Saville article dated 27th Feb 08: (he does not relate this to EVG, but to Gold stocks in general) -- Neither of these is true, so should we conclude that the gold sector's performance simply doesn't make sense? Well, that depends on what is meant by "sense." It wouldn't make sense if the stock market were a machine that assigned prices based on an accurate measurement of value, but the stock market is not now and has never been such a machine. In fact, when it comes to value the stock market is totally clueless. Some analysts talk about the market as if it was an all-seeing, all-knowing oracle, but if that was true then dramatic price adjustments would never occur. That such price adjustments occur quite often reflects the reality that the stock market is, in effect, a manic-depressive mob that spends most of its time being either too optimistic or too pessimistic --- --------------------------------------------------------------------------------------------------------- I tend to agree with Saville --- to price EVG @ 12 to 15 cents is in my opinion totally clueless.
EVG has cash of 7.5 cents per share.
It has project finance arranged for Las Lagunas. The project to be up and running by Feb 2009
It has interests in Peru which it says could be producing Dec 2009. They are a bit behind schedule with Lagunas – so maybe make that early 2010.
These are only my thoughts – so treat them as such.
Regards cy7
EVG Price at posting:
0.0¢ Sentiment: None Disclosure: Held
