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Hi Friggy Do you feel there is any upside left in this after yesterdays climb on the news and is the vote likely to go ahead on the 22nd still. Would value your opinion.
One of Canada’s biggest mining groups is mounting a high-stakes move to gatecrash a deal involving a Qatari sovereign wealth fund and a London-listed gold miner, I can reveal. Eldorado Gold Corp, which is listed on the Toronto Stock Exchange, is understood to have approached European Goldfields about an outright takeover of the company in recent weeks. The move threatens to scupper a transaction announced in October that would see Qatar Holding, owner of the Harrods department store, become European Goldfields’ largest shareholder. A vote to approve the deal, which would include an initial $750m outlay by the Qataris, is scheduled to be held in Toronto on December 22. The reason that this is so intriguing is that the Qatari deal had the backing of the Greek government and was positioned as an act of friendship from cash-rich Qatar coming to the aid of the crisis-hit Eurozone’s most troubled economy. Last year, the two countries signed a $7bn memorandum of understanding to co-operate on a variety of economic projects, followed by another $5bn deal in September. European Goldfields, which is also listed on the Toronto market, had sought the funding from Qatar in order to construct two new gold mines in northern Greece which it hopes will eventually produce 350,000 ounces of gold annually, making it Europe’s largest gold producer. I’m told that Eldorado’s offer values European Goldfields at a premium to the value attached to the company by the Qatari deal (which is understandable, since the Qatari transaction is structured in a way that wouldn’t give it control). That may make it difficult for the board of European Goldfields to reject an offer, despite the fact that Eldorado’s intervention has raised the political stakes for all of those involved. Qatar’s prime minister attended the signing of the European Goldfields deal alongside senior members of the Greek government. It’s unclear whether Eldorado’s offer for European Goldfields, which I’m told is in the form of shares, has similar political backing from the Greek government but it would be logical not to overlook such factors at a time when the country is in such a state of crisis. With a market value of around £6bn, Eldorado is substantially larger than European Goldfields, which has a market value of just over £1bn. And there's certainly logic to a deal: Eldorado operates mines in Brazil, China, Greece and Turkey. The exact status of the contact between Eldorado and European Goldfields is unclear, although I’m told that the offer was made some days ago. However, I'm led to believe that the two companies are not in active talks which implies that any premium offered by Eldorado is insufficient to convince the European Goldfields board. Another complicating factor will be the attitude of the largest shareholders in European Goldfields to the rival proposals and whether Qatar Holding would respond
thats a big spike- usually followed by some sort of news using past experience.
theyre meant to be coming out tomorrow...will be very interesting to see what they have to offer.
European Goldfields Ltd (LON:EGU, TSE:EGU) said executive chairman and president Martyn Konig has taken a medical leave of absence as he recovers from a sudden illness. He is already making excellent progress in his recovery and looks forward to his return to the company in the near future.
are still interested but just in case i'll provide news on whats going on with the company from time to time
Beggars can’t be choosers and, with Greece now having been reduced to the eurozone’s biggest mendicant, getting $680 million of funding for goldmines there and in Romania was never going to be easy. So the Greek Government has allowed the sale of a bit of the family gold and cleared the purchase of 9.9 per cent of the shares in European Goldfields by the Qatari sovereign wealth fund, writes the Tempus column in the Times. The Qataris are also lending $600 million over seven years at a rate of Libor plus 7 per cent, which is a rather better deal than is on offer to most Greek corporates. The company is raising another $150 million from the issue of unsecured loan notes with warrants, so there is now enough funding in place for the existing prospects to be developed. The 19 per cent jump in the shares yesterday to 622½p says it all; better some sort of funding and a new supportive investor than no funding at all. The Qataris, who a couple of months ago agreed the funding for the merger of a couple of Greek banks, could take their holding to almost 30 per cent. It is just feasible that the deal could tempt out another bidder with a more attractive price, so those with an appetite for risk, or who want to continue to participate in what will be Europe’s biggest gold producer, should hang on. Others might consider taking some profits, suggests the Times.
European Goldfields (EGU) retained its "buy" rating from Evolution Securities, with a 1,000p target price. The securing of a 600 million dollar (386.9 million pound) seven year loan facility from Qatar Holding has removed the broker's financing concerns for future development projects. Evolution notes that Qatar Holding has also take an 9.9% stake in the mining company's equity and has entered into a call option agreement to by a further 9.4 million shares at 13 Canadian dollars (7.99 pounds) each. Shares in European Goldfields flew 97.5p to 622.5p.
Martyn Konig, Executive Chairman and President commented, "This Facility from Qatar Holding represents not only a significant commitment to the Company, but also to Greece. In these very uncertain times, these financings will provide all of the development capital required to bring the group's entire project portfolio into production and allow us to accelerate the development of all our projects. As such, this marks another very significant milestone on our path towards becoming the largest gold producer in Europe. Furthermore, we are delighted to welcome Qatar Holding as a significant shareholder and key strategic partner, particularly as this is their first investment into the gold sector. These transactions deliver a definitive solution to a number of key issues overhanging the Company: we have secured debt financing which, in terms of both size and coupon, is otherwise unavailable in today's challenging market conditions, thereby delivering a complete financing solution for our projects; the presence of Qatar Holding as a strategic partner further demonstrates great confidence in Greece as well as securing a liquidity event for our Greek partners Ellaktor, without direct market impact. " Commenting on the transaction, Mr. Ahmad Mohamed Al-Sayed, Managing Director and Chief Executive Officer of Qatar Holding, said: "This transaction reflects an outcome of the Memorandum of Understanding between the State of Qatar and the Hellenic Republic of Greece, signed in New York during 2010. Our latest investment helps to further diversify our investment portfolio in the commodities sector, with a specific position in gold resources and another long-term partner secured for the future. We see the transaction as one that will create a lot of value for all shareholders, and represents our positive view on Greece in general."
3 October 2011 - European Goldfields Limited (TSX / AIM: EGU) ("European Goldfields" or the "Company") is pleased to announce that it has agreed heads of terms ("Heads of Terms") with Qatar Holding LLC ("Qatar Holding") for the provision of a US$600 million 7 year Senior Secured Loan Facility with Equity Participation (the "Facility"). Pursuant to the Heads of Terms, the Facility will be structured as a US$600 million 7 year loan at an interest margin of 7% above 6-month Libor per annum and will be repayable in 8 equal instalments commencing in 2015 (the "Facility Agreement"). The loan will be secured over the Company's Greek assets, including a pledge of the shares of all intermediate holding companies, and will contain certain informational and financial covenants. The Equity Participation feature of the Facility will encompass the issuance to Qatar Holding of warrants (the "Warrants") for the purchase of 40,444,913 shares in the Company at a strike price of C$9.08 per share (equivalent to the 5 day VWAP on the TSX). The Facility will be used primarily for the development of the Company's Skouries and Olympias gold projects in Greece, for which the Environmental Permit was recently granted, as well as general corporate purposes. The Company also proposes to offer unsecured loan notes with warrants for US$150 million (the "Loan Notes") to be made available to existing shareholders on the same economic terms as the Facility. These Loan Notes will be listed on an international exchange and will include the normal terms and conditions for such an instrument. The aggregate proceeds of US$750 million from the Facility and the Loan Notes are expected to fully finance the Company's entire project portfolio. The Company has also been advised that in two separate transactions, Qatar Holding has acquired from Aktor Construction International Limited ("Aktor") and Mr. Dimitrios Koutras collectively, an aggregate 18,202,687 shares at C$10 per share (representing 9.9% of the undiluted share capital of the Company) and has entered into a call option agreement allowing it to acquire a further 9,373,390 shares in the Company at a price of C$13 per share. As a result and prior to the exercise of the call option, Aktor now holds 22,447,246 shares (representing 12.2% of the undiluted share capital of the Company) and Mr. Koutras holds 5,521,387 shares (representing 3.0% of the undiluted share capital of the Company). The Facility and related issuance of warrants are subject to exclusivity, definitive documentation and shareholder and regulatory approval.
http://www.investegate.co.uk/Article.aspx?id=201110030700293722P
My previous trade here was similar, something like IN @ 680 and OUT at 880 a week later, back when the licences were approved. This must simply be being held back by the connection to Greece. Looks attractive for a re-entry because surely Greece needs all the inward investment and job creation that it can get; default or no default. Worth watching IMO.
the last time i came to look at this board i sold at £9. then i see it in the top fallers list?! when gold is at these prices... had to re-buy at 590 thats about the share price I bought into before the mine was allocated.
Martyn Konig, Executive Chairman and President, commented: "The recent formal approval of our Greek EIS in the form of the final Joint Ministerial Decision announced by the Greek Government is a key milestone for European Goldfields. This approval represents the culmination of over five years of tireless effort, particularly on the part of our Greek colleagues at Hellas Gold, and allows us to progress towards our goal of becoming the largest primary gold producer in Europe. With build-out timelines clearly defined, we were able to revisit our business plan, review our reserve base and update the project economics. Accordingly, we have increased our total mineral resource base by approximately 10% to 24 million oz gold equivalent and while the majority of the industry is experiencing rising capital costs, we have successfully contained both our operating and capital costs at highly competitive levels. With the EIS approval in hand and under the stewardship of our newly appointed COO, we have hit the ground running both at Olympias and Skouries and we are firmly on schedule for first gold production from our Olympias tailings project in Q2 2012. In Romania, we have been building out the technical team and intensive training on project management software is currently underway. Our longer term exploration programmes are focused on increasing our resource base significantly over the coming years. We are looking forward to drill testing near mine targets in Greece and also working toward defining a resource at our three advance-stage exploration targets, with Piavitsa our first priority. We also aim to provide an update on drilling in Turkey in the next couple of months."
Highlights Greece · Greek State delivers Joint Ministerial Decision to formally approve EIS · Major progress on Olympias plant refurbishment · On schedule at Olympias for first gold production Q2 2012 · Bid document for Skouries project construction ready for issue Romania · Local public consultation complete, final cross-border consultation well advanced · Pre-qualification of equipment suppliers complete · Expansion of project team with technical software training underway Exploration · Aiming to define maiden resource at 3 targets in Greece in 2012 Financial · Sales of US$11.1 million · Gross profit of US$2.8 million · Working capital US$31 million Corporate · Appointment of David Cather as COO · London Main Market evaluation initiated
http://www.investegate.co.uk/Article.aspx?id=201108120700172453M
Commenting on the announcements, Martyn Konig, Executive Chairman & President, noted: "We are delighted to have received approval of our EIS from the MOE following the comprehensive review and public consultation process in Greece. The importance of this approval cannot be overstated and we are extremely grateful to our Greek colleagues at Hellas Gold, for their huge and tireless efforts throughout this lengthy and rigorous process. It allows us to progress towards our goal of becoming the largest primary gold producer in Europe and will provide the Greek economy with much needed and significant investment, contributing to both the financial and social environment in the region as new long-term jobs are created. As we embark upon the development of our Greek projects, we have undertaken a comprehensive Resource and Reserve update. This has involved a thorough capital and operating cost review reflecting the EIS approval and prevailing economics of our projects. The update will show that we have been able to largely avoid the current capital cost and operating cost inflation being experienced by the mining industry globally. As a result, we are pleased to announce that our forecast average cash costs of production (on a gold equivalent basis) remain well within the lowest quartile of the global average, notwithstanding some fairly significant scope changes. For example, we have opted for an underground mining method at the end of the Skouries open pit life, that we believe is best suited to the prevailing economic climate and underscores our commitment to the best practices of environmental stewardship. We are also very happy that David Cather has accepted the position of COO and we are confident that his vast experience gained with De Beers, Anglo American and Miller Mining will be invaluable to us in bringing the development projects into production on time and on budget. Finally, from a corporate development perspective, the potential move to the London Main Board is a logical step for the Company. We firmly believe that there is a considerable level of European investor demand for exposure to our unique proposition of EU based gold production."
Resources and Reserves Updated Economics Confirmed Chief Operating Officer Appointed Goldman Sachs Appointed 15 July 2011 - European Goldfields Limited (AIM: EGU / TSX: EGU) ("European Goldfields" or "the Company") is pleased to make the following announcements now that the Environmental Impact Study ("EIS") submitted by the Company's 95% owned subsidiary Hellas Gold S.A, has received the approval of the Ministry of Environment, Energy and Climate Change ("MOE"): · The Company has completed an update to its Resource and Reserve Statement ("NI 43-101") for the Skouries and Olympias projects to reflect the current environment for costs and commodity prices, to account for the timing in the receipt of the permit and the implementation of the Business Development Plan approved under the EIS. The key elements of the update for the Greek assets are as follows: - A net increase in the total Skouries and Olympias Measured and Indicated Mineral Resources (over previously filed NI 43-101 report) to 9.6 million ounces of gold and 1,205kt of copper. In addition there is a newly declared Inferred Resource of 828,000 ounces of gold and 288,000t of copper at Skouries; - This update increases the Company's total Measured and Indicated Resources inclusive of Reserves to 23.8 million gold equivalent ounces and attributable Proven and Probable Reserves to 18.1 million gold equivalent ounces; - Projected total initial capital expenditures to primary gold production of US$300 million for Skouries and US$165 million for Olympias; - Forecast combined average life of mine cash operating costs in the lowest quartile globally at US$350-US$400/oz. · David Cather has been appointed as Chief Operating Officer with immediate effect. Mr. Cather has a 25 year track record in the mining industry and previously worked for De Beers and Anglo American. · Goldman Sachs International has been appointed to assist in the evaluation of a potential move from AIM to the Main Market of the London Stock Exchange. Lazard & Co., Limited will also provide financial advice in connection with such evaluation.
http://www.investegate.co.uk/Article.aspx?id=201107150700084505K
European Goldfields' shares jumped on Thursday on speculation coming from Greece that the permit was on the verge of being issued. On Friday, it was confirmed. The decision has given Goldfields permission to continue operations at its 95pc-owned Stratoni project. It also approved the next stage of the Olympias project, which involves the mining and processing of ore and treatment of the concentrate. Goldfields is also awaiting permission for its Certej project in Romania. Once these projects are up and running, the company will be the largest gold producer in the European Union. The company is expected to move into profit in 2013 and the average price target of the 12 analysts with buy ratings on the shares that are covered by Bloomberg is £11.28. The shares remain a speculative buy, so should be avoided by widows and orphans, recommends the Questor column in the Sunday Telegraph.
Finally some progress after all the delays and they can start developing their assets, much needed boost shareholders.
yeah its still going up! after a dull start. i have a feeling youre right because there have been some big sells but its not causing a retrace. quite the opposite in fact. so yeah they may not have enough shares atm. its funny how this hasnt gotten on to the radar of many pi's but thats probably due to the high share price and they all prefer penny shares.
GREEK EIS APPROVED BY MINISTRY OF ENVIRONMENT 8th July 2011 - European Goldfields Limited (AIM: EGU / TSX: EGU) ("European Goldfields" or the "Company") is pleased to announce that: Confirming the press release issued today by the Ministry of Environment Energy and Climate Change ("MOE"), Mr. Giorgos Papakonstantinou in his capacity as Minister of the MOE has today approved the Environmental Impact Study ("EIS") submitted by the Company's 95%-owned subsidiary Hellas Gold SA for the development of the Company's Greek assets (the "Project"). The Project consists of: . Continuation of operations at the Mavres Petres deposit of the Stratoni Mine; . The next stages of the Olympias project, namely the mining and processing of ore and metallurgical treatment of the concentrate; C. The development of mining and processing at the Skouries project; and D. The expansion of the port facilities at Stratoni in service of the above projects' operations. The press release issued by the MOE can be accessed on the Ministry's website:
Don't know about the lack of volume - but noticed it keeps going up! I also noticed that a lots of buys were placed from 810 down to 750 yesterday so maybe the MM's haven't enough to complete all the orders
what do you make of these lack of volumes?