EVN - Evolution Mining

[elZorro]

Evolution Mining (EVN)

[Daytr]

Bought into these guys today. Basically at 12 month lows. They have a smart management, reasonable costs & good sized (420k) production. They also have 140k of hedging at A$1600 so a good cushion if the POG reverses. Market cap around $375M and they should clear around $180M in cashflow not including capex spend. Net of capex should make somewhere close to $100M. And they even pay a dividend !

[Joshuatree]

HI Daytr; are you reasonably confident of missing falling knives; some technicals giving you confidence? Ive been sitting on the sidelines wondering when /if to average down on my Goldies.

[Daytr]

Well that's what stops are for. Its at 12M lows & basically I'm willing to risk 5-10% to make what I think could be 25-75%.
Its a bit of a gold play as well as I think gold may have a good run into the end of the year. I like the way gold has been trading in the last 2 weeks or so, it looks relatively strong.
But I also like the hedge they have in place, it gives them basically on average A$75/ounce premium on their entire production.
I've known the CEO for about 12 years, he's a smart bloke & his decisions in running EVN & SINO prior are evidence of that.

[Joshuatree]

Thanks for that Datyr and a real good edge/ advantage knowing and having confidence in CEO, good to know.. Unfort my ASB account doesn't have trailing stops and i can't be bothered or forget to reset it daily. Also have to log in continualy all bloody day so am looking for another platform. cheers JT

[Daytr]

I'm trading CFDs through Trade Direct365, it has a few issues, but its pretty good & the cost of trading is very reasonable.

[Daytr]

Another stock that I flicked in & out of last week for a great profit & like RSG its lower than where I bought in last time.
These guys are purely A$gold production and with Aussie gold a lot higher they will be doing very well. SP certainly isn't picking up the rise in AUD.

[Joshuatree]

For longer term investors ; food for thought

EVN MD remuneration package is over $2million mkt cap re $346mill
NST MD package re $900,000 mkt cap re $633 mill Fantastic management
RRL MD package re $650-$700,000 Mkt cap$717 mill
SBM Remun MD package $1 mill plus mkt cap re $35 million!!!! oink oink

[Daytr]

JT, suggest concentrating on the bigger ticket items that make a fundamental difference to value in the company.
I'm not advocating ridiculous CEO packages, but its never a major consideration for me as an investor or trader.
Performance of the CEO yes, pay definitely not, unless its a penny dreadful.
SBM, is interesting though... I give you that.

[Daytr]

Nice day, up 8%!
Huge short position in EVN, the equivalent of 15-16 days of average trading volume.
Up much more & there will be a huge short covering rally imo.