Two Aggressive European Gold Buys

Article Excerpt

EUROPEAN GOLDFIELDS $5.22 (Toronto symbol EGU; SI Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 178.3 million; Market cap: $930.7 million) owns properties in Greece and Romania. The company is headquartered in the UK. European Goldfields holds a 95% interest in Hellas Gold, after its recent purchase of an additional 30% interest. Hellas owns three gold and base metal deposits in Northern Greece. The deposits are the Stratoni zinc/lead/silver property, the Olympias gold/zinc/lead/ silver project and the Skouries copper/gold property. Production started at Stratoni in September 2005. The company is also selling off a stockpile of goldbearing ore concentrates from the former-producing Olympias mine. Permits to develop the Skouries and Olympias projects are moving steadily forward. The company expects to more than double production at Stratoni by 2009, from 2006 levels. This will steadily add to cash flow. In the three months ended June 30, 2007, European Goldfields had cash flow of $11.7 million U.S. or $0.10 a share. The company holds…