GoochGland you liked the EVR PEA on the Hounde project. Been...

Gooch

Gland you liked the EVR PEA on the Hounde project.

Been holding a few EVR shares and in some ways I now prefer them to PRU (which badly needs to get costs down and a second project up). It looks like EVR could be a 600k ounce pa producer in 2016.

However, I note the high cost of constructing that mine (around $350m all up), which they should be able to fund from internally generated funds. I guess there will be no dividend until that project has been delivered.

Are you into EVR? I have had some shared since the ADU merger, although I did sell out briefly. I do not understand why EVR gets next to no mention on hotcopper. At least its share price responded today (and yesterday) to the announcements.

AS for the relation of the Hounde project (2gms/tonne) to AMX (2.6 gms/tonne for part of the project), what it says to me is that even a conventional CIL operation will cost a lot and result in heavy dilution to AMX shareholders given its current share price. They really need to find a lot of oxide ore to get the share price up so the dilution is minimised. That is where PIR (2.4 gms/tonne) has the advantage over AMX - the excellent grade across the project has helped to support the share price so they should be able to raise capital for a mine without massive shareholder dilution.

I think that if GRY's management can get its act together it could raise funds for a plant because they have a project with very good grade and ore quality and a fair amount of cash/investments on hand.

I view AMX more as a takeover prospect, same as AZM, and do not expect them to get into production before being taken over unless the POG gets above $2000/ounce. However, I could be wrong.

loki