European Gold Share Discussion Threads

[wassapper] 03/7/2007 08:30

chip - that sort of valuation is more appropriate. Rough and ready but closer to the price that we will see one way or another.

[chipperfrd] 02/7/2007 11:36

With 95% of the Greek projects now attributable to EGU I now make the in-ground reserves as follows:

Gold - 7.38m oz
Silver - 62.7m oz (although 12m oz already forward sold from Stratoni)
Copper - 749kt
Lead - 664kt
Zinc - 889kt

with contribution of Au & Ag from Certej that makes approx $17b worth of in-ground reserves at current spot prices.

A 10% rough valuation would put the shares at £6 assuming 143m shares in issue after the recent fundraising. It does not look expensive to me!

Chip

[rambutan2] 26/6/2007 15:43

lead has been going great guns - a nice bonus.

[wassapper] 18/6/2007 09:58

I think this is what is called a breakout, but not a chartist so I will just say it seems to be doing well. From memory we have now reached some of those broker targets so they they will have to get out their calculators again, put their finger on the air and come up with a new number until that is breached.

[mr ashley james] 16/6/2007 04:26

Rambutan Read The Report, I am slightly concerned that certain players want to sell certain Silver Producers so desperately.


Why are they so desperate to sell?

[wassapper] 15/6/2007 20:15

off to the races for EGU! Too many of my shares doing well at present. Time to sell a few (sold half my uramin this afternoon). But EGU is a core holding. Take a look at TIO - it has been shorted down from the placing, but I reckon that is over. I would no be surpised to see that hit 75p next week. Same happened at WNG which is now bouncing strongly.

[rambutan2] 15/6/2007 16:08

seems to have gone down well in canada...

CDN$135 Million Equity Offering

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES

15 June 2007 - European Goldfields Limited (TSX / AIM: EGU) (the "Company" or "
European Goldfields") is pleased to announce that it has entered into an
underwriting agreement for an equity financing with RBC Capital Markets as lead
manager to a syndicate of underwriters including Evolution Securities Ltd,
Raymond James Ltd, Dundee Securities Corporation and Orion Securities Inc. The
total offering of 27 million common shares of the Company (the "Shares")
consists of a treasury offering of 24 million shares and a secondary offering of three million shares on the same terms as the treasury offering, as disclosed in the Company's press release of June 1, 2007. The offering was priced at Cdn$5.00 (or GBP 2.375) per common share for gross proceeds to the Company of Cdn$120 million and Cdn$15 million to the selling shareholder. The Company will not be entitled to any of the proceeds of the secondary offering.

The underwriters will have an option, exercisable for a period of 30 days from
the date of closing, to purchase an additional 3.6 million common shares of the
Company at a price equal to the offering price to cover over-allotments and for
market stabilization purposes.

The Company intends to use the net proceeds of the treasury offering for the
development of its projects in Greece and Romania, and for general corporate
purposes.

Closing of the offering is subject to certain conditions, including, but not
limited to, receipt of all necessary securities regulatory approvals (including
the approval of the Toronto Stock Exchange). The preliminary short form
prospectus has been filed on SEDAR at www.sedar.com.

[mikeroberts] 13/6/2007 11:11

Thanks for reply to my post Simon54,am surprised but please that it is eligible for ISA:)

[simon54] 12/6/2007 23:08

Mike, it's listed in Canada, so it is eligible. Barclays won't do companies incorporated in another country as a 'business decision' - some stuff about extra costs - but others will. The 'regulations' regarding eligibility are pretty ambiguous, but basically a share that's elsewhere listed on a recognised exchange (i.e., not the Berlin Third Tier! ;-)) is eligible, regardless of its AIM listing. You won't get BATR on this share for that very reason!

[mikeroberts] 12/6/2007 22:47

I dont understand all talk about putting in an ISA,its on AIM so its not eligible.

[wassapper] 05/6/2007 20:01

Story on Minesite today

[wassapper] 05/6/2007 11:39

Looks like the price will slide until this deal and fundraising is sorted. Will then be a great screaming buy.

[rambutan2] 05/6/2007 01:37

bit out of date after today's news, but mirabaud's recent thoughts can be read at below link...

May 4th, 2007 - Mirabaud Mining Weekly - Mirabaud


is too late for me to get my head round today's news.

[maxim1999] 04/6/2007 14:58

Spoke to the broker on the Hellas deal and the placing and this is what they said.All is as one would expect,good strategic logic, deal accretive, strong local partner, lock up on Aktor's stock etc etc...on the 2 licences they seem convinced only one signature outstanding and that will be done no later than end of Sept 07...if that is the case then as a ratio of price to NAV stock is around 60p too cheap ie should trade 300p +.

[chipperfrd] 18/5/2007 01:29

Fine with Hargreaves Lansdown Simon.

[rambutan2] 17/5/2007 22:50

no prob with jarvis.

[bangor] 17/5/2007 16:51

Selftrade do.

[simon54] 17/5/2007 13:17

I've just tried to buy some more of these in an ISA with Barclays, but they won't accept it since it's incorporated in Canada.... are others here holding this in an ISA and, if so, would you care to mention which brokers will accept it? Cheers :-)

[simon54] 17/5/2007 12:31

Seymour Pierce note:



We maintain our 400p in-production valuation of the group following these
results, and believe that the key trigger for the attainment of this valuation
will be the receipt of the various permits – expected mid-year. As we
believe that these will be awarded, we reiterate our recommendation

[maiseymouse] 15/5/2007 12:50

a broker called numius - suspect is numis - is making some reassuring noises on this one Is it all steady as she goes at the moment, or are there any near to mid term catalysts that are likely to excite?

[wassapper] 15/5/2007 07:15

David Reading delivers ....

European Goldfields Limited

RESULTS FOR Q1 2007

STRATONI INCREASES PRODUCTION

STRATONI SILVER RESERVE SOLD TO SILVER WHEATON


15 May 2007 - European Goldfields Limited (AIM: EGU / TSX: EGU) ('European
Goldfields' or the 'Company') today reports its results for the first quarter to
31 March 2007. Highlights during 2007 are:


Financial highlights:

• Sales of US$17.1m in Q1 2007, compared to $9.1m in 2006 - Sales up 88%
• Profit (before tax) of $5.7m in Q1 2007, compared with $1.0m in 2006
• Operating cash flow increasing to $7.3m in Q1 2007, up $4.9m over 2006
• Working capital of $45.2m at 31 March 2007; $102.7m post sale of the
Stratoni silver stream in April


Operational highlights:

• Attractive price secured on Stratoni silver stream sold to Silver
Wheaton
• Best production to date from Stratoni mine and mill
• New economic mineralisation discovered at Stratoni
• Two new contracts signed for the sale of Olympias gold concentrates
• Skouries technical feasibility study nearly completed
• Albion Process Technology achieved 92% gold recovery on Certej composite
sample
• Technical feasibility study submitted to Romanian government
• Target exploration under way to extend Certej life-of-mine


Commenting on the results, David Reading, Chief Executive Officer of European
Goldfields, said: 'Our Stratoni operations continue to ramp up and produce
strong operating cash flow. This combined with the proceeds of the sale of the
silver stream to Silver Wheaton means we now have approximately US$100 million
in cash, which we intend to use to accelerate the development of our major gold
projects in Greece.'

[chipperfrd] 06/5/2007 14:22

Further to this silver sale to Wheaton:

EGU actually state a P&P reserve of 12Moz Ag at Stratoni (but of course they will probably produce more than that over the LOM).

However, using the 12Moz reserve, Wheaton have paid $4.79/oz upfront with a further $3.9/oz on delivery. Hence a total of $8.69/oz as an effective forward hedge on the POS.

With POS at around $14/oz currently, this forward sale equates to 62% of current spot price and can (perhaps) be usefully used to extrapolate an approximate in-ground valuation for the much larger Olympias silver reserve of 54Moz (42.9Moz attrib to EGU).

Hence, 42.9 x $14 x 62% = $372m (or £1.56/share!) for just the silver.

Another aspect of this deal is the complete lack of market reaction. The upfront cash of $57.5 would be $37.3m attributable to EGU (or £18.7m). Which equates to 15.7p/share - yet at 256p the share price stands at the same level as on the day of the announcement!
Chip

[wassapper] 24/4/2007 08:30

fee per ouce is pretty low at $3.50, but it is only 13% of Stratoni assets and this "monetisation" will help move things forward, with perhaps less dilution later on.

[mikehardman] 24/4/2007 07:42

Stratoni - offtake agreement - all silver (by-product of lead-zinc operations) to be sold to Silver Wheaton - for upfront payment to EGU of US$57.5 million in cash, plus a fee per ounce (reserve = 10Moz) - cash used to accelerate Skouries Cu-Au project -- nicely done

[wassapper] 16/4/2007 15:33

Key extract:

Key metals on the rise
As of 16 April 2007, we have transferred coverage of European Goldfields to Scott Finlay.
Event
Canaccord Adams' mining group has published its quarterly revision to commodity price assumptions. European Goldfields is most exposed to gold, copper, zinc, silver and lead (in decreasing order of sensitivity). Most of the company's value lies in the development projects (Skouries, Olympias and Certej), which are not due to enter production until 2009. Therefore, changes to long-term price assumptions have the largest impact on our valuation. However, the importance of the Stratoni operating mine continues to increase given the recent strength in the zinc markets.

Impact
As a result of the revision to our commodity price assumptions, we are upgrading our NAV-based, 12-month target price to £2.82 from £2.20. We continue to apply discounts to the front end of our NPV estimates on the development projects (Skouries, Olympias and Certej), as there are still a number of technical and permitting hurdles that we believe must be resolved before we would expect the market to recognise the full value of the assets. On an unrisked basis, we see the value of the company closer to £3.44/share. Our revised target price represents 11% upside potential from current levels; we are retaining our BUY rating.

Next Catalyst
The ramp up of Stratoni to 250kt annualised should be closely followed by the submission of EIS permits in both Greece and Romania in JQ07. It is anticipated that a response will be received in the DQ07, which if successful would allow the Skouries, Olympias & Certej projects to proceed.