RE:RE:EDV delivers 466,000 oz in 2014 to exceed guidanceHi davgro,
Thanks. Can't say that the non-cash impairment troubles me overmuch. Whilst it will clearly hit the P&L, in reality it represents a judgement on past investments made by the company: those investments don't look too clever, in the light of the gold price collapse over the last two and a half years (hindsight is wonderful thing ;0)).
However, this has no bearing on the future or on the company's ability to pay down its debt and, ultimately, to pay dividends. That's what really counts for me.
To some extent these impairments will bring the company's book value more in line with its market cap. Worth noting that last reported net book value of US$783m makes the market cap. of C$223m look a bit silly! [so can easily stand some impairment and still look exceptional value on a crude book value basis].
My other comments are that over the course of the year, the performance of Agbaou, and the 2015 outlook for it has been stunning. This was supposed to have been a 100,000oz p.a. mine, but it looks like a its turned out to be a 150,000oz one - a beat on that scale is as rare as hens teeth! OTOH, Tabako has been a disappointment in 2014: it should have been a 150,000-200,000oz operation, but has turned out closer to 125,000oz. Just as well that Agbaou has rescued the overall situation. Hope that management's promises on Tabakoto for 2015 are delivered and that operation finally starts firing on all cylinders, with Kofi-C and Segala both fully ramped up.
I should think that EDV must be looking like quite a tasty morsel for a predator - especially with Hounde waiting in the wings for a sufficiently attractive gold price outlook.
Cheers,
Mark