European Gold Share Discussion Threads

[mpclag] 08/11/2011 13:26

Just dipped my toes in today-will gradually build a stake here-looks promissing medium term

[manics] 03/11/2011 14:26

..confirmed today.

RNS Number : 4320R
European Goldfields Ltd
03 November 2011

NOTIFICATION OF Q3 2011 RESULTS

3 November 2011 - European Goldfields Limited (AIM: EGU / TSX: EGU) announces that it will publish its results for the third quarter ended 30 September 2011 on Thursday 10 November 2011.

[manics] 30/10/2011 17:08

Q3 2011 results due 10th Nov.

[lucky_punter] 24/10/2011 10:50

European Goldfields' (LON:EGU) funding agreement with Qatar Holding is a "total game changer" for the miner, according to Evolution Securities.
Earlier this month it secured a US$600 million loan from the Arab investment fund, which owns Harrods and holds stakes in Sainsbury (LON:SBRY) and the London Stock Exchange (LON:LSE).
Existing shareholders stumped up an additional US$150 million.

[foot in mouth] 05/10/2011 15:30

FFS - every day this opens on the TSX it drops like a brick out of a window.

[kickstart] 05/10/2011 00:10

Whats the point of that wiki page , nothing on it ? looks like a waste of space.

[jbm] 04/10/2011 12:45

Hi,

There is a new ADVFN Wiki page for this company. It is pretty basic and needs expanding on. Anyone can edit it.



Apologies if this has been posted before.

Cheers,

Jon

[foot in mouth] 04/10/2011 08:46

As posted on III....................Questor share tip: European Goldfields' Qatar deal unlocks value



THIS weekend's $1bn (£645m) deal with the Qatari sovereign wealth fund is very good news for European Goldfields. Questor says buy.

By Garry White7:00AM BST 04 Oct 2011
European Goldfields
622.5p +97.5
Questor says BUY

The company is now fully funded to develop all of its mines – and the deal gives it more cash for exploration. What's more, the funding is very cheap for a company operating in Greece, with the loan, which is part of the package, having an interest rate of 7pc above the London inter-bank offered rate on drawn balances.
The deal makes Qatar Holdings, which manages the wealth of the royal family of the Middle Eastern nation, the largest shareholder in European Goldfields – one of Questor's underperforming tips of 2011.
The fund now owns 9.9pc of the equity and it has provided a loan facility of $600m, with a further $150m from existing shareholders. Other significant Qatar Holdings shareholdings include Barclays, Credit Suisse, Harrods, Iderdrola, J Sainsbury, the London Stock Exchange, Lagardere, Porsche and Volkswagen.
After gaining permission to start mining in July, this deal now completes all the major hurdles management have faced. It also appears to be a good deal for the Qataris.

The sovereign wealth fund is planning to spend between $5bn and $10bn gaining access to physical gold. This makes long-term strategic sense.
Buying mining companies is a leveraged way to play the high gold price – because shares in gold miners have been significantly underperforming this year.
Middle Eastern funds are swollen with petrodollars – and buying gold is a hedge on a devaluing currency. The recent plunge in the gold price is down to a strengthening dollar – the gold price tends to move inversely to the US currency. However, it
is likely that the long-term prospects for the dollar are for it to weaken.
There will be dilution for existing shareholders, as Qatar Holdings has a number of warrants as well. Analysts have calculated that the fund will own as much as 29pc of the group when a call option and all warrants had been exercised. But a rights issue could have been more dilutive for shareholders.
The huge advantage of this deal is that financing has been secured. It would have been almost impossible to secure funding in the current environment – would you lend to a Greek company at the moment? The market didn't believe the funding was available, given the backdrop, and this is why the shares have slumped by a third over the last month. But the market got this one wrong.
Indeed, now analysts are talking about the company as a potential consolidator in the sector or even a bid target itself. European Goldfields is now poised to become Europe's largest primary gold producer with production of 300,000 to 400,000 ounces a year when at full capacity. It has 18.1m ounces of gold in reserves.
Before being named as a tip of 2011, the shares were first recommended at 395p on March 21 2009, and they are up 51pc compared with a FTSE 100 up 31pc. The January tip was at 887p – the highest level at which they have been recommended. In 2011 the shares are down 33pc compared with a FTSE down 16pc. Buy.

[foot in mouth] 03/10/2011 10:11

If it wasn't for the big market fall today this would have risen much further.

It's nice EGU is the biggest riser on the market to day (so far). I'm sure they'll snap this up later when the exchange on TSX opens as well.

I added 4k£ more earlier to bring my average down. GLA.

[analyst008] 03/10/2011 07:41

Pre market opening - 575 v 600

[foot in mouth] 02/10/2011 16:50

My thoughts are how/whether this will effect in any way their full London listing now they have secured the necessary funds.

Hopefully the Qatari news will nicely raise the share price on Monday - I have no clue as to where it will go though.

Good luck all holders!

[analyst008] 02/10/2011 13:03

It might be worth attending the conference call.
Any ideas on the opening price?

European Goldfields will host a conference call to update investors and analysts on the contents of this release. The call will be held on Monday 3rd October at 8:00am EDT / 1:00pm London, UK time.
Participants may join the call by dialling the number below, approximately 5 minutes before the start of the call.

UK Free Call
0800 073 1806
UK Standard International
[phone]
USA Free Call
1866 223 0502
Conference ID
15796263

[analyst008] 02/10/2011 13:00

Check out the company website.
There is a news release there for the terms of the loan facility.

[analyst008] 02/10/2011 12:54

you are welcome.

[urbanyeti] 02/10/2011 11:21

More from the Telegraph

[bangor] 02/10/2011 11:20

(Part of Sky reference above from Analyst008):

"A Qatari sovereign wealth fund is this weekend in talks to buy a $1bn stake in the London-listed company behind one of the biggest gold mining projects in Greece, I can exclusively reveal.

Qatar Holding, owner of the department store Harrods, is poised to sign a deal that will give it a big shareholding in European Goldfields, which is listed on the London and Toronto stock exchanges.

The deal could be announced as early as today and, assuming it goes through, will be confirmed in a statement to the City on Monday."
End of quote.

This is confirmed by an article on the front page of today's Sunday Times business section and should put a rocket under the share price.

[bluelynx] 01/10/2011 17:21

Yes, nice find Analyst008, we needed some good news given the recent large fall. Thank you.

[foot in mouth] 01/10/2011 17:11

Nice find! A big piece of news and may be a game changer for EG - they could of course mount a bid in the future.

It's just a shame that the price has been hammered recently - hopefully this will be the start of the recovery.

[analyst008] 01/10/2011 13:31

Anyone picked up on this news?

[manics] 19/9/2011 22:06

Can't be long until we get an update regarding a new listing off from AIM?
Goldman Sachs better have been busy earning their fee's somehow.

[nermil] 19/9/2011 17:48

Well its good to hear it may be good for one of my stocks at least!