RE:RE:RE:RE:RE:RE:RE:Nice InfoThanks Patientguy - very important article, which I had not seen. Peel Hunt's Stoner needs educating, he says:
“The biggest weakness in Endeavour’s otherwise very robust investment case is the relatively short mine lives versus Acacia, Randgold and Centamin,” said Peel Hunt analyst Michael Stoner. “Acacia’s long-life Bulyanhulu mine is therefore likely to be the core asset around which the company is built.”
EDV made it very clear in their last presentation that the only reason our mines appear to have short lives is because, in the period up to Sawiris' entry, explo. expenditure was pared to the bone, to save costs & protect the balance sheet. Now that we're investing in explo. again, mine lives are expected to be extended substantially, and this is a key management priority.
I look forward to publication of the end of year statement of reserves & resources. [published at the end of February, last year]
I just hope Sawiris has taken a long hard look at this deal, is fully satisfied that it will add value, and that he will obtain the right terms for EDV shareholders, given the higher quality of our assets. One key factor we don't know is how much influence he can exert over the Tanzanian government - he may be able to open doors than Acacia's management haven't been able to.
A couple of things I would like about this deal:
- It should bring a London listing in addition to the TSX one. From a purely personal POV (living in the UK), that would be very convenient and make it much easier & cheaper for me to trade EDV stock. It may also bring a better valuation for the combined entity.
- It should immediately bring us into the ranks of dividend payers, which I'd also regard as a plus. Subject to the gold price, management should be able to institute a progressive dividend policy, as development projects come to fruition & production grows.
If Sawiris is behind this move, then as long as terms acceptable to both sets of shareholders can be reached, there is a good chance that this deal can go through.
Interesting times ahead! [but then, life is never dull at Endeavour!]
Cheers,
Mark