Anyone who is more familiar with EGO care to comment? I'm relatively new to the stock and not much of an analyser of gold mining production, exploration, etc. anyway. Hard to tell what market reaction is due to the strong downdraft in the price of gold this morning.
EGO lost less money on lower total Gold ( Oz sold)sales for 12 mos. Received higher sale price for Gold sold. What bothered me was that the President forecasted about 15% lower Gold Oz sales for 2005, due to lower gold being mined at their biggest operating mine. Figured EGO would decline on the news, so I sold out and will watch. PM stocks are about to "pop" after Gold bottoms Around 425 / 430 and XAU hits about 95 / 97. Do not think EGO will lead the PM stks up, and IMHO I felt EGO should decline on the bearish 2005 forecast.Its holding its own on the open !!!!!!!!! However, we will see and I am a novice at "valuing" PM stocks
Just to give my opinion on EGO. Used to be an analyst a way back. The problem with this company is that its too conservative. I listened to the whole cc - and they are still evaluating china, which is taking them forver to get in. Also, these guys are the most undervalued Gold company out there - in speaking of junior producers but with great debt and cash levels. They said that there will be announcement in the coming days of a $400 mil project in Brazil. He was frustrated that he could not announce it today....but it should be done shortly. Personally, I like this company even though it has done crap for me lately. I believe that it is a take-over target if consolidation hits the industry again - as it is trading much lower than peers. Won't give a reccomendation because this stock has been not moving...but to disclose my position, im holding 13500 shares. So im hoping for news later this week or next and then Im gonna cut my position. This mainly because the cc did not sound overly optimistic on future earnings and growth for 2005.