RE:News Out on Hounde !! ... (Might Explain today's move)
Here's my take on the NR today:
I believe this is an excellent way to start moving exploration on Hounde. The market had been concerned that EDV will need financing to start exploration on Hounde. But it is a great move by the management to let a junior explorer do the preliminary exploration work and also participate in the move up once the exploration results start materializing ( EDV will own 20% of Savary) . At the same time, EDV continues to grow towards its target of becoming a mid-tier producer.
I believe some of the banks which are actively involved in mine development financing have been short on EDV (holding the Share Price down) as they had been expecting EDV to approach them for financing Hounde. This news tells me that EDV management has other plans to develop Hounde base in the interim. Market, will probably, now start focussing on the production profile of EDV and the EPS fundamentals. IMHO, EDV share price should start moving up to a realistic market cap of approx $1.6 billion to $2.00 billion, as compared to its peers, which equates to a price of $4.00 - $5.00 share range. Long ways to go !!!
Cheers.