Down 11% since the Q2 NR....
Inspite of a decent NR on Q2 earnings, EDV fell to .89 from its of high of $1.00. That is an 11% drop. Gold price at 1306 is not that different from what it was on the day of the NR.
So, what has changed that market has discounted the price by 11% ??. IMHO, that the market was disappointed because of lack of guidance re: debt issue. Also, the excitement around Hounde project is being seen as a negative for the stock price as market is most probably fearing more debt issue / shareholder dilution coming. Couple that with the fact that EDV does not pay any dividend to its shareholders, this is a stock which may be "dead money" for a while. There is a lot of uncertainty around Gold price outlook and EDV is very highly leveraged to the Gold price as they are pretty much "unhedged" at this point. Then there is the West Africa Risk Premium (now including the Ebola outbreak).
I was expecting a lot more clarity and decisiveness around strategic issues wrt debt repayment, hedging, etc, from Neil and his group on the Q2 conference call but I have to admit I was a tad disappointed. I think the market feels the same way too.