RE:RE:RE:Update june 25
Yes, not that bad of a news release but I am not sure if this would have even helped the share price in any meaningful way as the move this week is all about end of quarter window dressing and rebalancing.
IMHO, EDV will only move meaningfully higher once the management can come out and give some clear direction and outlook going forward as to how:
1). EDV is going to pay off the 300 million debt they owe.
2). Decision regarding Hounde development which will involve a CAPEX of another 300 million
3). At 1300 avg Gold price, how does EDV plan to use the $100 million net cash flow ie, share buyback, debt repayment, dividend or a combination of all of these.
I believe that out of the issues listed above, 1), is probably the most significant as the market really hates the uncertainty around debt servicing regardless of the fact that it is not due till 2016. As an example, look at LSG recent NR where they have started paying down debt and the share price as well as market cap for LSG is now higher than EDV although, on a fundamental level, EDV is a much better play than LSG. and don't forget SMF.... which is trading at a "ridiculously high premium' to EDV, notably, because they have no debt !!.
So, debt is a very important issue for the market and I hope that EDV management addresses this sooner than later.
GLTA.