A prospectus offer for Evolution Mining has just arrived in my email box. This offer does not look attractive at all. What is wrong with it:
1. Assets are not particularly solid. i.e. Cracow is mined out, the projects are small and have dubious or risky upside potential.
2. Newcrest will sell out - Even if they are getting vendor shares, I'd expect an investment bank to find a way to upload the stock through a CFDs platform.
3. The finance market is risk-averse to new project investments, and these gold projects are dubious.
Yes, I know, this is a gold stock, but I don't believe this company will ever reach anything near these production projections. This is an exit strategy.
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