European Gold Share Discussion Threads

[rambutan2] 13/10/2006 16:50

gold not flavour of the month at the mo - perhaps a name change to european leadandzincfields would help? !!

[mattybuoy] 13/10/2006 16:32

Well Lead has hit an all-time high of $1,500/mt this week, while Zinc continues to do very well.

Meanwhile EGU has doubled its shipments of zinc and lead concentrates compared to the previous quarter.

You'd think someone would notice really ...

[novicedave] 05/10/2006 08:58

Albion Licence for Certej

RNS Number:9942J
European Goldfields Ltd
05 October 2006



For Immediate Release 5 October 2006


LICENCE AGREEMENTS SIGNED FOR ALBION PROCESS AT CERTEJ


European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce that it
has entered into Licence Agreements securing the Albion Process Technology for
its 80%-owned Certej project in Romania.


The Licence Agreements were entered into with Xstrata Queensland Limited and
Highlands Frieda Limited, the co-owners of the technology.


Commenting on the agreements, David Reading, Chief Executive Officer of European
Goldfields, said: "We are delighted to be involved with companies such as
Xstrata, Highlands and their agent Core Resources in the development of the
Certej project. The Albion Process is an exciting technology which is well
suited to Certej and which should significantly increase the profitability of
the project."


Flexibility of two viable development options - European Goldfields is actively
pursuing two viable development options for the Certej project:

* the production and sale of high-grade gold/silver flotation concentrates
* the production of gold dore on site using the Albion Process.


Using the Albion Process to produce gold dore on site is expected to
significantly increase project profitability and returns.


The project can also be developed in phases, starting with the sale of
concentrates in the early years followed by the production of gold dore on site.


Sale of high-grade concentrates - In April 2006, European Goldfields announced
the conversion of resources into Canadian NI 43-101 compliant reserves for the
Certej deposit, based on the sale of concentrates option. This confirmed that
the project can support the necessary capital investment and produce a robust
return at a gold price of $425/oz and above.


This estimation followed the completion of extensive metallurgical testwork, an
in-house pre-feasibility study and subsequent pit optimisation and pit design
work by RSG Global, which included a geotechnical drilling programme and
geotechnical pit design parameters completed by Golder Associates of the UK.


The project is expected to involve the mining and processing of 3.0 Mt per annum
over at least nine years. This would yield approximately 275,000 tonnes of
concentrate per annum with high grades ranging realistically between 17 - 22 g/t
gold and 85 - 165 g/t silver (depending on the source of the ore in the
deposit), with a flotation gold recovery of approximately 88%. This translates
into an annual production of approximately 170,000 oz of contained gold in the
concentrate.


Production of gold dore on site - The Albion Process is an alternative
development route to the sale of concentrates at Certej. The Albion Process is a
combination of ultra-fine grinding and hot oxidative leaching at atmospheric
pressure.


European Goldfields announced in July 2006 that it had received additional
results of batch metallurgical testwork indicating a substantial increase in
gold recoveries from samples of flotation concentrates produced from Certej ore.
The new results using the Albion Process at optimised oxidation conditions
suggest recoveries from concentrates of approximately 96% for gold, compared to
previously reported recoveries of 84%. Silver recoveries remain stable,
averaging 92%.


Hydrometallurgy Research Laboratories (HRL, a subsidiary of Xstrata PLC) is
conducting the Stage III pilot plant scale continuous testwork programme using
the Albion Process, after which European Goldfields expects to publish Canadian
NI 43-101 compliant reserves based on this process in Q1 2007. HRL has already
successfully completed Stages I and II of the metallurgical testwork programme.


About European Goldfields


European Goldfields is a resource company involved in the acquisition,
exploration and development of mineral properties in Greece, Romania and the
Balkans.


Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. Hellas
Gold owns the three major gold and polymetallic deposits of Stratoni, Skouries
and Olympias in Northern Greece. Hellas Gold commenced production at Stratoni in
September 2005 and selling an existing stockpile of Olympias gold concentrates
in July 2006. Hellas Gold is applying for permits to develop the Skouries and
Olympias projects.


Romania - European Goldfields owns 80% of the Certej project in Romania.
Resources were recently converted into Canadian NI 43-101 compliant reserves,
underpinning the value of the project. European Goldfields is now completing a
feasibility study for submission to the Romanian government in Q1 2007, in
support of a permit application to develop the project.


For further information please contact:

[wassapper] 22/9/2006 17:29

David Reading will be presenting at the next Minesite Forum on 10 October, Great Eastern Hotel, Liverpool St. All are welcome to listen, question, network and lunch with wine.

[mattybuoy] 13/9/2006 14:22

I would prefer to see organic growth, especially since there should be no need for additional funding. There's very little chance of that happening though.

As long as whoever it is coughs up at least $1bn I won't complain too much ;)

[wassapper] 13/9/2006 13:21

yes a good point - we certainly should be in a win-win situation here.

[andico] 13/9/2006 10:18

Important sector news below, in the form of more takeover activity in the European mining sector. This follows Eurozinc and Lundin agreeing to join forces last month. When EGU is fully derisked after getting the go-ahead for Skouries and Olympias, we are going to be snapped up too, I'm sure. Not certain if that's a good thing or a bad thing though. Think I'd prefer things to stay how they are actually so we can enjoy the growth story to the full. Should have four mines in production by end of 2009, producing Zn, Pb, Ag, Cu and Au - a fast-track to a bona fide diversified mid-tier miner.

BHP Billiton Declines to Comment on Report of Bid for Boliden
By Claudia Carpenter

Sept. 12 (Bloomberg) -- BHP Billiton Plc, the world's biggest mining company, declined to comment on a newspaper report that it offered 205 kronor ($28.09) a share for Boliden AB, Scandinavia's only copper producer.

Melbourne-based BHP made the offer to Boliden's board through its investment bank Goldman, Sachs & Co., newspaper Dagens Industri said today on its Web site, citing unidentified people familiar with the matter. Shares of Boliden rose 10 kronor, or 7.5 percent, to close at 143 kronor in Stockholm, valuing the company at 41.4 billion kronor ($5.67 billion).

Ulf Soderstrom, a spokesman for Boliden in Stockholm, declined to confirm or deny the report. BHP spokesman Illtud Harri in London also declined to confirm or deny the report.

Record prices for metals including copper and zinc have spurred more than $100 billion of mining-industry takeover offers this year, data compiled by Bloomberg show. BHP Chief Executive Officer Charles ``Chip'' Goodyear told CNBC television in a Sept. 7 interview that producers will continue acquiring assets as they use profits from a rally in commodity prices to boost reserves.

BHP had record net income of $6.1 billion in the six months ended June 30. Boliden's profit soared 10-fold to a record 1.74 billion kronor in the second quarter, benefiting from record prices for copper and zinc.

[maxim1999] 08/9/2006 12:48

Positive Effect on NAV. We have run these new prices through our European Goldfields model. As a result, our 2006 NAV increases from C$5.55 per share C$6.15 per share, and our 2006 CFPS has increased from $0.19 to $0.26. We continue to apply a 1.0x NAV multiple to derive our target price for EGU. Accordingly, our target has increased from C$5.50 to C$6.00 per share.
Meeting With Management. We recently met with company CEO David Reading, who reaffirmed that the ramp-up at Stratoni is progressing smoothly. The mill is currently being fed at an average rate of 800 tonnes per day, with a 1,000 tpd targeted for Q4/06. EGU is on track to process 160,000 tonnes at Stratoni in 2006, in-line with its stated objective.
Exploration Upside. In addition, an extensive drill program is scheduled to begin at Stratoni later in September. In our view, Stratoni has excellent exploration upside. We see the potential for Stratoni's mine life to be extended from 6 to 8 years, with the possibility for an additional 2 years. We currently model a 6-year mine-life for Stratoni.
Key Permitting Dates. The company plans to submit its Environmental Impact Study (EIS) for the Olympias and Skouries projects in Q4/06, followed by a bankable feasibility study for Skouries during Q1/07. As EGU continues to deliver on the permitting timeline that it has outlined, we expect investors to gradually reduce the risk premium that is currently being applied to EGU's shares.
Investment Rationale. EGU is becoming a mid-tier metals producer. We expect that steady cash flow generation from Stratoni will allow the company to advance its three development projects, which in turn should provide good upside to EGU's shares. As an emerging unhedged producer, we continue to highlight EGU's leverage to metals prices (Exhibit 1).
Valuation. Our one-year target price of C$6.00 (£2.80) is derived by applying a 1.0x multiple to our 2006 NAV of C$6.15/sh, using discount rates of 8% and 10.8%, depending on individual project risk....RBC Buy note

[bangor] 08/9/2006 09:23

Good to see this as a main IC tip which can only increase its profile. I managed to buy this at the top in April at 227p so am relieved to see the steady increase.

For those not aware, while this is an AIM stock it is dual listed so can be slipped into PEPs and ISAs. This is a long term PEP hold for me.

[chipperfrd] 08/9/2006 09:10

Morning Dave - they all count!

[novicedave] 08/9/2006 08:58

Looks like i should have put more into here. Only a small bet, ahh well :-)

[chipperfrd] 08/9/2006 08:50

Cheers gardenboy! I was rather hoping that the early rise was due to a good size order being placed. Perhaps the markup is just due to the IC.

Was the article a good one?

[gardenboy] 08/9/2006 08:45

tipped in IC today

[wassapper] 06/9/2006 19:47

Excellent performance today.

[mattybuoy] 06/9/2006 13:39

£2.80 is still a massive bargain.

Assuming EGU doesn't get taken over, it should be worth easily a couple of billion dollars in 2/3 years time. Which would be about £8.00 ...

In fact you might say it's almost worth that now, if metals prices stay anywhere near the current levels.

VMS deposits are the dogs nads, and I fully expect EGU to expand what they've got and/or find more in the same area. Only Nickel/PGMs are more valuable, and not all the time either.

[chipperfrd] 06/9/2006 13:31

Cheers seagreen! This should be a nice steady performer over the next few months imo.
Chip

[seagreen] 06/9/2006 13:13

RBC new NAV calculation of Can $6/£2.80 with an outperform speculative risk recomendation in their research note of Today, plus highlight potential of drilling upside too.

[liveit2] 24/8/2006 21:21

Nice find Chipper - Thanks

[mattybuoy] 24/8/2006 17:28

It's nice but on low volume. Mind you, when has EGU ever had high volume? ;)

Value will out in the long-term.

[wassapper] 24/8/2006 09:16

Intro to above story

European Goldfields Gets Flying Start To Strong Growth Profile

By Rob Davies

Second quarter results from European Goldfields provide good support to this rapidly emerging gold producer. Capitalised at £178million and with £17million in the bank it is in a strong financial position and the production figures indicate that it has yet to get into its stride. Sales in the first half were US$17.4million on which the company made a net profit before tax of US$1.3million and generated an operating cash flow of US$4.5million. Production at the 65 per cent owned Stratoni mine in Greece reached nearly 18,000 tonnes of zinc and lead/silver concentrate meaning that the operation has achieved half its full year production target despite still being in the start- up phase.

Ore production is forecast to achieve the annual rate of 170,000 tonnes by the end of 2006 on the way to attaining the 400,000 tonnes per year rate in 2010. The company is planning to increase ....

[chipperfrd] 23/8/2006 23:04

Bit of useful PR from Minesite ...

[liveit2] 22/8/2006 21:49

I'd like to see some news before the next move up - It can't be long now given the volumes recently - you must admit its looking good

[liveit2] 18/8/2006 20:33

Good luck Andico - A wise move

[andico] 18/8/2006 13:07

I'm in again today.