News

July 25, 2008

European Goldfields Delivers A DFS On Its Two Million Ounce Certej Project, But Bears Are Still Setting The Share Price

By Rob Davies

A share price that craters from higher than 300p down to 160p in the space of just a few months is not an encouraging context for a mining company to attempt to talk up a whole new project. Even so, Mark Rachovides, Executive Vice President of European Goldfields, was able to give Minews some background information on the Certej project in Romania.

First, though, the little issue of the share price. At 160p, the market is valuing the company at just £292 million, on a fully diluted basis, yet European Goldfields has US$219 million in cash, two operating mines another two in development. What’s more it made a profit of over US$4 million in the first quarter of 2008. Mr Rachovides says the company has checked all the major shareholders and none of them are selling.

In fact the European Goldfields shareholder base is quite...