Two producers with new mines in sight

Article Excerpt

EUROPEAN GOLDFIELDS $14.36 (Toronto symbol EGU; SI Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 182.4 million; Market cap: $2.6 billion; No dividends paid) holds a 95% interest in Hellas Gold. 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 September 30, 2010, European Goldfields’ revenue fell 46%, to $9.2 million from $17 million a year earlier on lower production at the Stratoni mine. (All figures except share price and market cap in U.S. dollars.) The company lost $0.01 a share in the latest quarter, compared to a loss of $0.02 share. It holds cash of $82.8 million, or $0.45 a share, and has no debt. European Goldfields started production at Stratoni in September 2005, and the mine continues to generate revenue. But it’s the company’s development projects that give it appeal. European Goldfields has now won preliminary approval to build mines at…