On the TSE EVG ended the session at $1.130 per share yesterday, or about 3% higher than the previous close, on a four times the daily average turnover. But this was not due to a climb during the day: actually the stock price declined as the selling turned out to be stronger than the buying.
This a little dubious behaviour of the shares comes along with several newly released by the company updates on its Rattlesnake Hills project in central Wyoming. Intensive infill and step-out drill program is undergoing in different zones of the property. As announced, it continues to intersect “long intervals” of gold mineralization.
According to science, infill drilling means drilling between existing well locations for the purpose of increasing reserves or productive capacity.
For now the disclosed assay results have not made big impression to investors, and the share price has not moved noticeably up. Probably, measures similar to “infill drilling” is what the managers of Evolving Gold Corp. need if they want to increase the value of the shares and allow better profits from trading the stock.
For the time being, however, there is no reason for a huge concern. The company’s financial report for Q3 of 2010 reveals that Evolving Gold has substantial funds at disposal: $17.3M of working capital and over $20M of cash, a gain of 67% compared to the relevant period in 2009.
There are some warning signs too: Evolving Gold Corp. has recorded a net loss of 1.207M for the third quarter of last year and has not yet put into production any of its mineral properties. It is dependent solely on the equity markets as a source to generate working capital. The company will certainly require more funds to satisfy the further exploration and drilling expenditures on its numerous properties.
