New European mines a step closer

Article Excerpt

EUROPEAN GOLDFIELDS $12.14 (Toronto symbol EGU; TSINetwork Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 184.8 million; Market cap: $2.2 billion; No dividends paid) holds a 95% interest in Hellas Gold. Aktor S.A., Greece’s largest construction company, owns the other 5% of Hellas, as well as 19.3% of European Goldfields’ shares. Hellas owns three gold and base-metal deposits in Greece: the Stratoni zinc/lead/silver property, the Olympias gold/zinc/lead/silver project and the Skouries copper/gold property. In the three months ended December 31, 2010, European Goldfields’ revenue fell 2.6%, to $18.2 million from $18.7 million a year earlier on lower overall production. (All figures except share price and market cap in U.S. dollars.) The company lost $0.09 a share in the latest quarter, compared to a loss of $0.04 share. It holds cash of $57.1 million, or $0.31 a share, and has no debt. European Goldfields started production at Stratoni in September 2005. The mine continues to generate revenue, but it’s the company’s development projects…