EVN impressed earlier this month delivering record quarterly cashflows, which were helped by a sector-leading All-In-Sustaining-Cost (AISC) of A$1,543/oz. We remain big fans of EVN in the medium-term, and we will need a rich price to consider taking profit from our position. However, never say never—the stock has corrected 15-30% on three occasions in less than 18 months, illustrating how it and the sector can be volatile. We will continue to adopt an if in doubt, stay long approach to EVN, but if it’s trading, say, above $6.50, if/when gold tests $US3,000, which is likely to a $A5,000 local price, we will be tempted to adopt a more active approach.
- We can see EVN trading well above $6 before its next meaningful pullback – MM is long EVN in its Active Growth Portfolio.
MM is long and bullish EVN
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