Yes EVN, keep reducing the debt and SP will fly, just like other mid tier miners SBM, RRL and NST since Dec 2016. All one year highs last few weeks except EVN. EVN's last high $3.10 on 11/7/2016. So very close too. SBM, RRL & NST repaid their debts in full during 2016-17 or earlier and their SPs flew since. An investor feels better when they are not sharing profit with a lender and without loan covenant or dividend controls! Closer to full debt repayment for EVN means the owners reap more and more of the rewards, so SP should move positively at each announcement.
In fact, so much cash generation (any company's lifeblood!) happening across these 4, paying increasing dividends (absolutely unusual for gold miners) and some involved in JVs which have had only old technology or shallow level, historical exploration. Earn ins, buy ins are growing and ongoing.
For me, having all 4 companies in my portfolio provides a geographical spread across Australia and reduces weather event impacts, cyclones etc. (Gwalia mine had 400m of water a few years ago!) Only one has offshore jurisdiction. SBM has Simberi mine. Australia is a great country to invest in world class goldmining technology, even water and heat management (in the desert!). Average AISC of these 4 is approx AUD$950 vs AUD Price of Gold of over $1,650 and higher, almost continuously since October 2017. What a great Gross Profit Margin!
For comparables clues, look at each comp's gold sales hedge book (disclosed in each comp's annual report and regular announcements) and consider what percentage of production for each. Wouldn't take out a hedge unless you knew you could mine that quantity! The proven and probable gold reserves are there for each mine for some 3-10 years and near mine exploration is ongoing at many locations.
Only problem, the historic usual, is to keep CEOs / directors from left field, speculative off shore expansionism for growths sake, when they can't think of anything else to do. Be careful spending shareholders money or dilutive capital raisings.
Macro issue? or not? - Rising interest rates. Only US Fed. Had 3 US rises now. POG hardly hiccups any more.
Hope this post is not seen as ramping, or for that matter, a gold rant. I own all these 4 companies about the same $ amount each and intend to hold & reinvest divs where possible. Just feel so addicted about Aussie second tier gold! Not interested in the majors, in any industry. Not so keen on junior golds, but expect 2nd tiers to cherry pick the better options.
Not just gold. I also like copper, coal / gas / energy, rare earths, health, no banks and a couple of other things.
GLTA DYOR.
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