Bought into these this morning on a BUY recommend from RHPS. Traded on Toronto SE plus a listing on AIM since September.

Seems like there's lots of proven gold and copper near the surface 10 miles from the main railway line from Moscow to China to take this commodity straight to the current major growth area in the world.

Proven reserves of gold 1.876m tr oz, copper 215.6m lb - at today's prices worth 584m.

Assuming gold at $375 per tr oz gold and $1 per lb of Cu with operating costs of $170 per tr oz (8th lowest out of 44 gold producers) gives a NPV of 157m. Heavily discounted at 10% (K'stan generally discounted at 7.5%) still gives a 60M NPV compared to current market cap of 27.5m.

Debt financing from Barclays Capital is in place for development, but a 20-30m placing is coming up shortly. This could present the opportunity to buy in a few more at a disount after I have got to know the stock a bit better.

Seems like a worthy punt to me. DYOR

SD

Stockdog - do you have a web site for them?
Cheers Stock bunny LOL

Hi stock bunny

here's the website < >

I don't suppose you'd like me to chase you would you - nah, didn't think so, anyway it's illegal now isn't it. OK a quick one round the House of Lords if you insist. LOL :))

SD

LOL woof!
You can't start chasing me about or Golddog will get jealous
;>)
Sadly the website isn't showing above - would you mind trying
again to put the details up?

Sorry - don't knwow hy it didn't show. It's www.europeanminerals.com.

Apologies to Golddog!

SD

Up 7p today - well done woofer!
;>)

By the way don't worry about golddog, he knows the bunny LOL

Yes, but sadly BEFORE I bought! Looking to average down on dips when they place the new shares.

SD

Well this is a sleepy old thread and no mistake. Just thought, with all this talk about the FTSE due for a dive and gold coming into its own over the rest of the decade, you might be interested that Charlemagne Capital (IOM) Limited have quietly increased their holdings from 9.57 to 13.69% over the last couple of months - including the recent new issue of capital.

Bought this a while ago on the recommendation of Tom Bulford in RHPS - unfortunately before I knew how to read a chart and consider timing, so am currently 23.5% down. However, with production due to start in about a year's time and gold looking up for the mid to long-term, I'm happy to hold and double my money over two years.

sd

Having risen recently to 50p bid, putting me nicely in profit whilst waiting for the real event to start later this year, I see it has now fallen back 20% to 40p bid currently - anyone have any views as to why?

Still seems solid on a 2 year view.

sd

sd,

yesterday's RNS will give you the answer regarding probs with site construction company

can't see the RNS on Squaregain or Digital Look - can you post it please.

Is it serious?

Thanks

sd

You can access it on MoneyAM by using the Quote Button and EPIC Code and either select Company News or click on the news icons below the charts. Here it is any way SD:


FOR: EUROPEAN MINERALS CORPORATION

AIM SYMBOL: EUM
TSX SYMBOL: EPM

January 16, 2006

EMC Puts Contractor On Protective Notice

LONDON, ENGLAND--(CCNMatthews - Jan. 16, 2006) - European Minerals Corporation ("EMC" or "the
Company") (TSX:EPM)(AIM:EUM) is currently constructing a gold/copper mine at Varvarinskoye in
Kazakstan.

EMC is in discussion with MDM Ferroman Pty Limited (MDM) respecting EMC's concerns regarding the lump
sum turnkey contract ("LSTK") for the supply and construction of the Varvarinskoye process plant and
associated infrastructure (referred to in EMC's press release dated December 1, 2005). Under the terms
of the LSTK, MDM is obliged to supply the equipment for and build a process plant to treat a minimum
of 4.2 million tonnes of ore per annum from the Varvarinskoye deposit, at a cost of US$55.7 million.
The LSTK contains standard mining industry undertakings, including an obligation for MDM to provide,
at its cost, a Performance Security, within a reasonable period of time after the date of execution of
LSTK. To date, MDM has not delivered the Performance Security to the Company.

In light of MDM's non-delivery of the Performance Security, the Company has given 14 days notice to
MDM that the Company has the right under the LSTK, but not the obligation, at the expiry of the notice
period, to terminate the LSTK. Whether the Company exercises this right will depend on the
circumstances prevailing at the expiry of such notice period.

The Company is seeking to clarify MDM's position over the next 14 days and is continuing to progress
the Project via its own project team.

In light of the situation and as part of a precautionary set of measures, management of the Company is
reviewing all its construction options for completion of the Project should the LSTK be terminated. In
addition, management has been in contact with all major equipment suppliers and has confirmed that
equipment deliveries are on schedule. While the lenders of the debt facility to the Project have
indicated their support of the Company's actions, including the possible termination of the LSTK,
certain defaults may be called under the debt facility agreement in connection with the termination of
the LSTK. The Company intends to seek waivers of such defaults from the lenders if it terminates the
LSTK. If such waivers are not forthcoming and defaults are called by the lenders, the lenders would be
entitled to cancel the debt facility.

To date, the Company has spent approximately US$49 million out of the total project capital cost of
approximately US$125 million and has not drawn down any of the debt facility. If the LSTK is
terminated and the existing debt facility is not immediately available, management of the Company
believes that, under existing market conditions, it would be able to raise alternative facilities to
fund completion of the Project. This may nevertheless result in a delay to the Project's scheduled
completion date.

Given the evolving nature of this situation, management will provide updates on a regular basis as
appropriate in the circumstances.

The Company's public documentation is available on
www.sedar.com


Not sure quuite what Performance Security is but assume it is a Capital Payment to EUM to hold in case the plant doesn't work??? Make your own judgement on whether serious or not, as depends upon how far the construction work has progressed etc and how easy it would be to get someone else to take over.

Could be an independent insurtance contract to guarantee Performance - or pay overcosts or late penalties - they have not provided one - does not mean their performance is not happening, just it's not insured aqs required under the LSKT - so they are threatening termination until it is remedied. No physical detriment to operation perceived YET.

sd

PS thanks for posting the RNS

anyone know why EUM's falling back so far?

sd

why the further fallback today, on raising new capital and some good volume buying?

sd

long again 40 (seem to have been watching for ages);

I drew this chart this morning, since when the price has snuck out the top of the wedge a little bit

(chart is a bit messed up - seems to be a problem with their Java charts today)

note:
- being listed in Toronto, it is ISAable;
- mkt.cap = £110m

it has been a bit weak because of:
- general slide since May
- slight delay due to contractor problems
- sorting out financing
those problems now largely sorted out;

today's buying is probably partly due to the rather bullish article in "Resource Investor" yesterday -
http://www.resourceinvestor.com/pebble.asp?relid=26951
...from which:
- revised reserve and resource estimate in the next couple of weeks
- from Oct07, will produce 140,000+ oz gold + 40m pounds copper p.a.
- cash inflow $120m in 2008
- plan to double production in year 3 after a small boost in year 2 (the expansion could be financed out of cash flow)
- 5+moz gold reserves
- that + several hundred million dollars p.a.cash flow = takeover target
- "should be trading at C$2 per share right now"
- "12-18 month target price of C$5 per share"
- "almost a 6 bagger in the stock from current levels (C$0.84)" (more for Canadian warrants)
- "arguably the cheapest emerging gold producer out there"
- "a value, cash flow, reserves, growth and critical-mass monster"
- "The updated reserve report coming out some time in the next couple of weeks should catalyze this story, and astute investors who climb aboard before then should make superior multi-bagger returns."

What more can I say?!

oh - Toronto 5-year chart

Well, I might as well continue the monologue (save for stockbunny, silvermede and mikehardman). I had no idea gold was so boring.

Happy to see a substantial breakout above previous high of 72p to 85p. Even happier to report a 112% profit since I bought in at an average of 39p 2.5 years ago (35% pa), and we're still not producing yet.

Any other holders out there?

looks like the retracement over now that's have some volume and away we go.