There has been heavy selling of EDV on the TSX since the merger with Avion was announced. This is driving the share price down on the ASX although our volumes here have been much lower.
The POG is having a bit of a run and if it lasts then perhaps EDV/EVR will do a lot better.
You are right in saying that there has not been much of a gain for Oz shareholders over the last 2-3 years. The current price of $1.835 equates to 52.3 cents per Adamus (ADU) share. ADU reached a high of 89 cents in late 2010, but that was because of the the very bouyant market conditions resulting from several major mergers, especially the $7 billion Kinross acquisition of Red Back Mining in 2010.
Market conditions are very different now. The positive is that the POG is much higher. The negatives are the increasing costs of production and capital, instability in west Africa, a more depressed goldie and Oz market, and the new tax regime on goldies in Ghana (an extra 10%). Ghana now has a 35% tax rate, a 10% free carried interest, plus the depreciation allowance on capital has been made less generous. All goldies in Ghana have gone backwards, including PRU.
loki
EVR Price at posting:
$1.84 Sentiment: LT Buy Disclosure: Held
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