EVG - Envirogold Limited

[exberliner1]

Issue price was 0.001 per option 1 for 2 at the time i thought it was pretty silly but im just a lowly investor..what do i know :dunno: so i just paid up the $30 odd dollars it was....just one of the benefits of being a long term holder with a little vision and belief.

The screen shot below is from the second last half yearly (linked) report...page 18.

http://www.asx.com.au/asxpdf/20100315/pdf/31p8dn1m8wvwn7.pdf
~

My mitsake then ... I was not a holder back then so I wasn't paying attention.

That $30 should give you one of the biggest percentage gains in history - shame it was only $30

Thanks for clarifying.

I paid just above 3c average for mine.

EB

 

[exberliner1]

Thanks guys for your feedback.

EVGO is in my speccy portfolio at the moment but it is getting close to being promoted to my super fund.

Delighted with the negative comments as well as the positive.

I left Sydney a few years ago and now live in Kiev so sometimes forums like HC and ASF are the only place to discuss the stocks I own. Not many Ukrainians have a view on the Australian stock market

Have a good weekend all.

EB

 

[Sean K]

Delighted with the negative comments as well as the positive.

I suppose all we've done is identify the risks. But with risk there is danger and opportunity. High risk = High reward. Some people may judge it to be lower risk, but that's why they will perhaps take the risk and reap the reward. Or otherwise.

 

[exberliner1]

I suppose all we've done is identify the risks. But with risk there is danger and opportunity. High risk = High reward. Some people may judge it to be lower risk, but that's why they will perhaps take the risk and reap the reward. Or otherwise.

Indeed but Macquarrie seems happy with the risks as they have put up $37.5mn in loans with a chunk of it to be repaid by forward gold sales (that Macquarrie arranges) so if those forwards cannot be covered by actual production then Macquarrie will have to deliver from other means ... such as buying gold on market.

I am sure Macquarrie's analysts were able to see a bit more management data than is available to us mere motals before they committed to lend the money and obviously liked what they saw.i

Anyway, many thanks I saw all the risks outlined and so far seem to have missed none.

Watch this space, based upon last week's upward movement and an apparent lack of stock together with good management reporting I think EVG is showing all the signs of being a bit more lively over the next week.

 

[ubid]

Mr Johnson must be pretty happy with the risks also has anybody seen how many shares he has bought on market since he arrived? It's mind boggling!

He has spent far more than he has earned since he took the helm.
I think anyone who wonders if he has been payed too much should go back and do their homework lol.

This will be 20c by Christmas and beyond .... Who know's ?? One thing is for certain he is a man on a mission and if anyone can get the ball rolling in a big way it is him!


Good Luck to the long termers this is just the start imo!

 

[Sean K]

Watch this space, based upon last week's upward movement and an apparent lack of stock together with good management reporting

They do report a lot, but I'm not sure about 'good'. Have continuously promised and failed to deliver actually. Going back through their anns over the past few years and it's just failed forecast after failed forecast.

Talk of the Trujillo Project in Peru a case in point.

13 March 2008

SUBJECT: ENVIROGOLD ADVANCES 150,000 OUNCE PER YEAR TRUJILLO GOLD PROJECT IN PERU

Mr Brian Johnson, Executive Chairman of EnviroGold Limited (ASX Code “EVG”), advises that the Company has further defined its objectives for the Trujillo Gold Project in northern Peru following an extensive review of opportunities to source high grade gold and silver polymetallic concentrates from mines in the region east of Trujillo, the capital of La Libertad Province.

EnviroGold has committed to pursuing the development of a centralised processing plant in two stages utilising Xstrata Technology’s Albion Process, each with the capacity to extract approximately 75,000 ounces of gold equivalent per year (refer equivalency calculation – Appendix 1).

The plant will be constructed in two stages, with one to be wholly owned by EnviroGold and the other possibly partially owned by a Peruvian mining company, Corporation Minera San Manuel (“CMSM”), which has expressed an interest in a joint venture and which is in the position to provide high grade concentrate from its existing Cascajal and Sayapullo gold and silver mines.

The first plant to be developed by EnviroGold is planned for commissioning in late 2009, and the second, one year later subject to security of feed and technical and commercial viability.


HUH? What ever happened to that? There is not one ann specific to this project following this? Maybe it was hidden in a Quarterly.


And, on funding for Las Lagunas mid 09:

22 July 2009

SUBJECT: SHARE PLACEMENT FINALISES EQUITY FUNDING FOR LAS LAGUNAS GOLD TAILINGS PROJECT, DOMINICAN REPUBLIC

Mr Brian Johnson, Executive Chairman of EnviroGold Limited (ASX code “EVG”), advises that the Company has placed 40.0 million shares with clients of Stockbrokers Lodge Partners, at 5 cents per share in accordance with Australian Securities Exchange Listing Rule 7.1.

The $2.0 million raised together with cash in hand will be applied to EnviroGold’s outstanding equity requirement for the Las Lagunas Gold Tailings Project in the Dominican Republic.

Mr Johnson is confident that with falling local construction costs the project will now be fully funded and further capital raisings will only be required if they are to be applied to new opportunities in Latin America.


I've lost count of the number of times they have raised money since.

Add it todays ann......

 

[So_Cynical]

I've lost count of the number of times they have raised money since.

Add it todays ann......

LOL...While we are on the subject of placements and raising money

EVG announced today that they are placing another 65 million shares at 0.11 cents each to oh so sophisticated investors to raise 7.15 million, dollars to be used to advance the Ecuador project and buy out there oh so helpful local minority partner...by my rough calculations a 16% dilution.

Market seemed to like it, EVG up another 4% (intra day 12%) at the close and EVGO up 10% intra day before falling back to hold at the 0.033 level....this long term holder is pretty happy.

 

[exberliner1]

I think we are seeing many new investors joining the register - I am one of them - people who are not affected by issues in the past.

I am more interested in the short term future which to me looks very positive and causes me to personally value EVG at a higher price that the current market price, which is why I bought the options for leverage.

I am firmly of the belief that EVG has turned a corner and my viewpoint on the company is not "poisoned" by legacy baggage issues.

I saw a simillar situation with CQT back in 2006 when historic mistakes and earlier exagerated claims by the management caused many investors to ignore the stock and thus miss out on some pretty spectacular gains.

Still we wouldn't have a market without opposing views and I for one like to hear both sides of the argument.

Although having said that I still think the positives for EVG far outweigh any negatives.

EB

 

[Sean K]

I am firmly of the belief that EVG has turned a corner and my viewpoint on the company is not "poisoned" by legacy baggage issues.

Although having said that I still think the positives for EVG far outweigh any negatives.

EB

Sorry to be negative EB, but they deserve it. It's still the same management promising the same stuff, to date.

Although, they have poured some concrete so the wheels are definately in motion at the moment.

Brian Johnson has an interesting background in this company when you do a little research.

A Director of the major Shareholder, Moonstar.
Was a Director of the company that Envirogold bought that owned Lagunas.
Owns the company that Envriogold have bought the license for the Albion process off.

Looks like he's putting his heart and soul into this.

 

[exberliner1]

kennas - as I said every market has 2 sides.

In the current situation you would be a seller and I would be a buyer.

The broker would take his 0.3% and the wheels would continue revolving.

Time will tell.

I think EVGO is worth a bag or two before the year's out.

EB

 

[speculator101]

Hi Kennas and Exberliner,

good to have a little discussion on EVG.
Been sooo quiet for so long.
I have been a holder since it listed.. and am happy to keep holding. As you have discussed, EVG has had a BIIIG pile of issues.
However.. my beacon is their eventual cost basis for production.. this is what makes me feel confident enough to not sell even though the share has gone up from 3c ( yes... %400 profit...) to 12c.

However, after following Brian J from Mount Gibson ( Which he made from the ground up) I have every confidence that he will do it again.

Yes, he has pretty much put a lot of his own money on the line, which I respect in itself, but for me more importantly, he believes that this is a great investment...and if the production does happen as planned... this could... one day be a share that I can sell and pay off the house with.

Ha... yes I am optimistic... but... after buying Mount Gibson at 18c and selling for $3.37c.... I have a right to be I believe.

I also have ah... quite a few options as there have been people willing to sell for almost nothing in the past.

I would put up my calcs regarding valuations.. and future production. But to be honest, I don't really want others to get into this share.

Goodluck to all holders...
AND DO YOUR OWN RESEARCH..... ( I could be a teenager that works at safeway!)

 

[ubid]

Hi speculator101,

I would be interested in your Calculations in EVG.

I think we should see some more movement in the next few weeks with a few announcements expected from Equador and then hopefully the done deal on the minority holder on the 6th of December.

I am confident we will see 20c by end of the year.

EVG could be worth anything if we prove up more ounces on adjacent leases if we get them.

I am very bullish on Gold also so hopefully should be a terrific 5 years minimum coming up.

Cheers,

Ubid.

 

[prawn_86]

Hi Kennas and Exberliner,

good to have a little discussion on EVG.
Been sooo quiet for so long.
I have been a holder since it listed.. and am happy to keep holding. As you have discussed, EVG has had a BIIIG pile of issues.
However.. my beacon is their eventual cost basis for production.. this is what makes me feel confident enough to not sell even though the share has gone up from 3c ( yes... %400 profit...) to 12c.

However, after following Brian J from Mount Gibson ( Which he made from the ground up) I have every confidence that he will do it again.

Yes, he has pretty much put a lot of his own money on the line, which I respect in itself, but for me more importantly, he believes that this is a great investment...and if the production does happen as planned... this could... one day be a share that I can sell and pay off the house with.

Ha... yes I am optimistic... but... after buying Mount Gibson at 18c and selling for $3.37c.... I have a right to be I believe.

I also have ah... quite a few options as there have been people willing to sell for almost nothing in the past.

I would put up my calcs regarding valuations.. and future production. But to be honest, I don't really want others to get into this share.

Goodluck to all holders...
AND DO YOUR OWN RESEARCH..... ( I could be a teenager that works at safeway!)

So in this whole post what analysis is there giving a reason it should go up in our opinion, aside from the fact that the MD has done it before with a different company.

This is very close to a ramp, and in the future more analysis would be appreciated

Thanks

 

[speculator101]

Hi Ubid and Prawn...

Ah, so in my earlier post I was simply posting what has happened in the past... Facts that is. Of course EVG could go belly up like many other companies in the past, however as I stated it has a few things going for it, and after speaking to Mr Brian J last week, to get an honest opinion of what he thinks this company is capable of, I will go so far as to say that I would repeat my earlier post, and times it by 2 regarding my positivity.

I highly doubt there would be many other Managers of company willing to go to the lengths he has to make EVG into a company that will continue to try its very best to reward both those that work in it as well as own part of it.

( Note - I suppose this could also be seen as ramping, but surely I am allowed my own thoughts and opinions as long as state that they are just that?)

So.. Positives... ( Please read through the past Company announcements for proof)
Forward sold Gold sales... ( at a good price )
Long term plans, with lots of other mines just waiting to be leached...
Production will soonish (in the world of Mining companies that is!).. commence
Very strong support from Institutional investors regarding recent rights issues to ensure funding.
* Therefore have enough money to now reach production stage.
Dare I repeat: great management.

If you just wait a couple more days, there will hopefully be some more positive news from the company regarding future projects.. no inside information I assure you, just what has been spoken about in past company announcements.

As Ubid mentioned - soon to be sorted issue with the very annoying joint venture partner who has almost... well.. tried to ruin the company.. for reason I am not privy too.

Right.. so... you want numbers.... figures... proof that this company is going to do great things... well.. As i stated, I won't be putting them up ( and yes, please post any criticism's).
Also, after reading comments from people like Kennas and Agentm (for example) I really don't feel confident enough to put them up. As this is not really my area of expertise.
Sorry to disappoint anyone who reads this.

Perhaps the information that best shows this company has something going for it, is last week they did a capital raising, at 11c. and.... the share price is at 12.5c. Proof is in the pudding.

Goodluck to all holders...
AND DO YOUR OWN RESEARCH..... ( I could be a teenager that works at safeway!)

p.s sorry for the long post. :headshake

 

[Sean K]

SUBJECT: ENVIROGOLD RELEASES RESULTS OF SCOPING STUDY FOR AZUAY GOLD MINING PROJECT, ECUADOR

EnviroGold Limited (ASX Code “EVG”) attaches herewith the results of its Scoping Study for the planned expansion of the Pinglio and Papercorp underground mines in the Azuay region of Ecuador.
EnviroGold is earning a 65% interest in the two high grade adjoining mines by spending US$6.5 million on a 27,000m drilling program and associated resource definition during 2011, prior to a planned expansion to a 100,000 oz gold per year operation.

I've never seen an exploration company come out with a 'Scoping Study' including income, when they haven't even got an initial JORC out, let alone a Resource. Quite incredible. A Feasibility without drilling a hole? Good stuff that.

The ultimate technical and commercial viability of the project is obviously dependent on the results of the 2011 drilling program, further metallurgical testwork, detailed mine planning, and final costings.

Really?

What they are saying is, 'if we find anything of substance down the track, and we can afford to build a mill, depending on the POG, and political situation in Ecuador, we might be able to mine.'

A formal Scoping Study for that?

WTF!?!

 

[exberliner1]

The market seemed to like it as it went up.

Base your valuations on the Dominican project for the moment that has proven reserves and will be producing gold in 2011.

Everything else is a bonus.

I am up 40% on my EVGOs in the last 4 weeks so I am not complaining.

EB

 

[So_Cynical]

The market seemed to like it as it went up.

Base your valuations on the Dominican project for the moment that has proven reserves and will be producing gold in 2011.

Everything else is a bonus.

I am up 40% on my EVGOs in the last 4 weeks so I am not complaining.

EB

Yep Ecuador is a side show, its all about the DR project and all the numbers for that are in perfect alignment....on the EVGO front i sold out today at 0.044 for a 4189% profit...must surely go down as the biggest percentage winner ill ever have and the easiest 1000 bucks ill ever make. my reasoning for the EVGO sell out was.

With EVGO selling at around 4.5 CPS, EVG shares would have to be trading at around 19 or 20 cents to be in the money for punters buying in at over 0.044 considering the conversion price is 15 CPS, and i cant really see EVG trading at 19 cents any time soon.

Sure the options have 11 months to go till there worthless and alot can happen in 11 months, but i just cant see it, and if i hung on to my EVGO and paid the 15 CPS to convert them to ordinary shares, the SP would still have to get to 19 or 20 CPS for me to make the 1000 bucks i just made.

And ive got 48000 EVG shares anyway so plenty of exposure to EVG upside...anyway a nice little Xmas punting bonus for myself considering i never really expected anything from my $30 odd dollar EVGO investment.

 

[exberliner1]

That's where we differ, I can see EVG at 20c+ sometime soon based on the DR project alone, I have given my reasons in earlier posts in this thread.

Given the upside on the DR project 4.5c premium is not too expensive for the EVGOs imo especially at it gives X3 leverage and has a year to run.

Although I can't blame you taking a 4000%+ profit.

EB

 

[Sean K]

That's where we differ, I can see EVG at 20c+ sometime soon based on the DR project alone, I have given my reasons in earlier posts in this thread.

Given the upside on the DR project 4.5c premium is not too expensive for the EVGOs imo especially at it gives X3 leverage and has a year to run.

Although I can't blame you taking a 4000%+ profit.

EB

I really like your fundamental approach to the DR project EB, and I hope all the assumptions come to fruition and it's rated accordingly. Should be a very handy return on the basic numbers. I still doubt execution of the plan however but hope I am well off mark. Wouldn't be the first time.

 

[Sean K]

Ref drilling in Ecuador this year, did they actually say 'drilling'? Or just rock chip sampling?

Technically, short term looks pretty positive on the close yesterday. If it follows through on volume, nice.




(I still think fundamentally this is highly speculative)