European Gold Share Discussion Threads

[wassapper] 15/11/2006 09:06

Er ... very probably at some time caiman27. This is a quality company with quality assets. It will go for a lot more than £250m

"Within their list, the average takeover in recent years was made at an equivalent value of US$273 per reserve oz. gold and US$132 per resource oz. gold. This compares with a historical average of US$130 and US$75 per oz., "



see also

Taking only the gold and leaving out the base metals and silver ..

Hellas: Resource 6.09m oz and reserve 5.05m oz
Romania: Resources 1.8m oz and reserve 1.41m oz

Totals: Resource 7.89m oz and reserve 6.46m oz = total of 14.32 m oz

(Note Goldcorp just paid $8.6bn for Glamis Gold with total resources and reserves of just over 14m oz)

Recent: Resource 7.89 x $132 = $1,041m and reserve 6.46 x $273 = $1,764m
Combined value of $2.9bn or $25.46 per share or £14 per share

Historic: Resource 7.89 x $75 = $592m and reserve 6.46 x $130 = $839m
Combined value of $1.43bn or $12.55 per share or £6.90 per share.

Note - base metals of which they have

Lead 976,000 tonnes current 3 mth LME price c$1,500/t - gross value $1.46bn
Copper 1,191,000 tonnes current 3 mth LME price c$6,900/t - gross value $8.2bn
Zinc 1,298,000 tonnes current 3 mth LME price c$4,300/t - gross value $5.58bn

DYOR

[caiman27] 15/11/2006 08:09

Er, no, actually.



PRESS SPECULATION

The CEO and the Board of European Goldfields has noted speculation in today's
media concerning a possible offer for the Company and confirms that at this time
no formal offers or approaches have been made to the Company.

[hardcarbon] 15/11/2006 07:59

YES!

Barrick Gold makes 250 mln stg approach to European Goldfields - report


LONDON (AFX) - Barrick Gold, the world's largest gold producer, has made a
250 mln stg offer to European Goldfields, the Times reported without citing
sources.
The offer is understood to be one of several that European Goldfields, which
is listed in London, has received in recent months.
European Goldfields, which has a mine in production in Greece and three
others in development, has rebuffed the approaches, saying that it is currently
being undervalued.
The company reported its third quarter results yesterday, with a profit
before tax of 5.4 mln usd in the first nine months of this year, compared with a
loss of 8.7 mln last year. European Goldfields is said to be attractive because
its exploration work has just started to generate earnings for the company.
[e-mail]

[chipperfrd] 14/11/2006 11:06

Seymour Piece have a buy rec on EGU today.

[caiman27] 14/11/2006 11:00

dunno why Frank T was bothered - he sold out months ago.

[wassapper] 13/11/2006 22:57

"With rapidly increasing cash flows and one of the largest proven gold and
base metal reserves in Europe, we remain on track to become a leading mid-tier
producer over the next few years." David Reading

[mattybuoy] 13/11/2006 18:51

Q3 results are out:



Sales are up 84% quarter on quarter and we have net earnings for the first time.

Top banana :)

[seagreen] 13/11/2006 09:31

Frank T very very hopeful over next drilling and proving up of assets programme when I met him briefly again in late October at a broker charity bash...8-)

[wassapper] 13/11/2006 07:18

Tipped in S Telegraph.

[simon54] 10/11/2006 19:57

Well, I bought some today but I don't think I can really be credited with the high volume!

[wassapper] 10/11/2006 19:47

Very high volume today - over 1m in the UK alone. Keep buying.

[chipperfrd] 10/11/2006 10:53

Evolution reiterates buy and 290p target for EGU today.

[andy] 08/11/2006 16:37

wassaper,

I wonder who that could be?

Terrific chart here BTW!

[wassapper] 08/11/2006 16:33

If you run the presentation you get to see the slides which may be available n the compnay website - my view is they will "beat the street".

You are more than welcome at Minesite any time - the December one will be worth it. A special guest to be announced soon. 12 Dec

[mattybuoy] 08/11/2006 16:18

I've been registered at Minesite for ages. One of my prime research tools is trying to read between the lines of what they say. Or indeed noticing what they do and don't say is most of it.

The problem is my PC has no audio (deliberately) so videos aren't much use. Hence the idea of using the POTS to listen in next Tuesday ...

I'm saving up for a train ticket to visit the forums one of these days ;)

[wassapper] 08/11/2006 16:02

I'd love to Matty but will be at the Minesite forum - I have no doubt we will beat forecasts - listen to David Readings presentaion at the recent Minesite (23 mins)

In fact, as a treat for us all on this board you can see him on video - my own exclusive access here - no registration required, but you could do worse than register on Minesite anyway

[mattybuoy] 08/11/2006 13:52

Next Q's results are out next week. Should be interesting.

Results released on Monday 13th Nov
Conference call to discuss at 2pm on Tue 14th Nov (try and listen in, it's free ...)

Details below:

[wassapper] 07/11/2006 22:34

Excellent performance here with our gold, zinc, lead, copper and silver. EGU will be a big compnay one day and will be bought by a major. It's a no brainer at some point.

Don't forget about Invernia on the TSX - a high quality lead mine in Australia and lead down to the last few church roofs! Whilst the uranium craze has been ongoing, people have forgotton about lead. Two days supply on the LME or some such.

[wassapper] 31/10/2006 10:00

Today I am buying back the stock I sold at 184p - this stock seems to be tradeable within a nice uptrend.

OT - rambutan - where are those WTI results! See my new BIP thread.

[rambutan2] 30/10/2006 22:18

matty, that's a nice spread of metals, base and precious. perhaps a bit complicated for mr mkt who is taking a while to get his head round it all. still, egu's time will come.

[andico] 30/10/2006 21:43

Not released as an RNS yet over here, but this should stand us in good stead for tomorrow:

Transmitted by CNW Group on : October 30, 2006 13:41
MRI Trading orders more Olympias gold concentrates

MONTREAL, Oct. 30 /CNW Telbec/ - European Goldfields Limited (AIM: EGU /
TSX: EGU) is pleased to announce that its subsidiary Hellas Gold S.A. has
entered into a second off-take agreement with MRI Trading AG of Switzerland
for the sale of an additional 18,000 wet metric tonnes (wmt) of gold bearing
pyrite concentrates currently located on the surface at Olympias in Greece.
This new order by MRI Trading follows the success of an initial trial
shipment of 3,000 wmt of concentrates announced in July 2006.
MRI Trading also has the option to increase its order by a further
12,000 wmt, exercisable by 31 December 2006. Shipments are scheduled to be
completed by October 2007.
Olympias benefits from an existing stockpile of gold concentrates
representing a reserve of approximately 258,000 tonnes grading 23.3 g/t gold
(containing 193,000 oz of gold), in addition to substantial underground
reserves of gold, lead, zinc and silver.
In May 2006, Hellas Gold entered into a first off-take agreement with
Shandong MIC BioGold Ltd (a subsidiary of Michelago Limited of Australia) for
the sale of an initial 18,000 wmt of Olympias gold concentrates. The agreement
with MIC Biogold also includes the possible sale of an additional 100,000
tonnes over a three-year period from April 2007.
European Goldfields and Hellas Gold are currently in advanced stages of
negotiations for the sale of the remaining tonnage of gold concentrates in the
stockpile.
Commenting on the agreement, David Reading, Chief Executive Officer of
European Goldfields, said: "These off-take agreements are a further example of
European Goldfields generating value from the substantial stockpile of gold
concentrates at Olympias. The off-take agreements also confirm that there is a
strong market for gold concentrates produced at Olympias and the viability of
Phase 1 of our business plan for Olympias, which involves the sale of
concentrates for the first few years. With no debt and the generation of cash
from production at Stratoni, this additional revenue will assist with the
financing of the development of our major gold and base metals projects of
Skouries and Olympias."

[mattybuoy] 30/10/2006 14:07

Well as usual zinc and lead are still in the stratosphere, and EGU remains stuck in the doldrums.

One day ... Next quarterly earnings are due mid-Nov, and they should be very good. Increased prices and increased tonnage shipped - it doesn't take a rocket scientist to work out that means more profit.

Anyway, in a quiet moment I did a quick spreadsheet to see just exactly what percentages of each metal comprise the company's total M&I resources.

Interestingly enough, copper is the biggest. Here is the table (based on last Friday's metals prices):

1. Cu at $5.10bn = 36.22% (Skouries)
2. Au at $4.65bn = 32.99% (Skouries, Olympias, Certej)
3. Zn at $2.82bn = 20.02% (Stratoni, Olympias)
4. Pb at $0.82bn = 5.87% (Stratoni, Olympias)
5. Ag at $0.69bn = 4.90% (Stratoni, Olympias, Certej)

That's not including the inferred resources in Romania, or any exploration upside from the 7 VMS and porphyry targets identified in Greece, or from the current Stratoni extension drilling, or from the other Romanian properties.

So, a total of at least $14bn of metals, for a market cap of $400m odd. Which is of course a silly way to look at it, but still ... ;)

[wassapper] 19/10/2006 15:15

Hello frizzers. Welcome aboard!

[frizzers] 13/10/2006 18:18

Saw the Minesite presentation. Good story. Chart looks set to break out. Bought in today via TSX. Hello everyone.