Overall, I see 2 main effects. Both good IMHO The first effect...

Overall, I see 2 main effects. Both good IMHO

The first effect is along the line that @JID made in earlier posts today. It can be viewed similar to a streaming agreement. EVN are paying upfront to buy 11 years of gold supply at $850 per oz. That is good business if price of gold doesn't crash.

The second effect is it helps the production and financial metrics for EVN. It keeps EVN producing at around the 800k oz mark and also drops the AISC cost for EVN below the $1000. The LOM is 11 years and all together those numbers will be liked by the run of the mill analysts floating around and about the market. That will help EVN become very popular when lame stream investors start getting steered into gold miners. Of course, that steering happens well after the bull market for goldies takes off. We are only on the runway at the moment and heaps of variables could crash the plane at take off.

Therefore, my view on this deal is positive. I'm guessing the analysts will lap it up eventually regardless of the increased debt burden. If so, it will be accretive in the long run. How long that takes is anybody's guess. I've sold out of EVN and was waiting to buy back in at a lower price during this cooling off period in goldie sentiment. I'll now have to reconsider my strategy and tactics relative the outcome of the bookbuilds etc etc

GLTAH as my points above do not consider any blue sky benefits or alternatively the risks that might come from the exploration of the additional ground surrounding the current mine

Cheers