FY20 Results CallAs usual, I participated in today's results call, asked some questions and got some useful answers (all paraphrased & not verbatim):
Q1: Will you publish a new 5 year exploration plan and if so, when?
A1: This is a key task for Patrick Bouisset. We anticipate announcing the outcome of a review and ranking of targets in Q3.
Q2: Do you agree that further exploration and resource increase is necessary before Kalana will meet Endeavour's development criteria?
A2: Yes, that is the plan. Subject to the DFS, Fetekro looks ready for development, but more work is needed on Kalana.
Q3: Can the convertible bond be redeemed early, to help remove distortions to GAAP earnings as the opton value of the bond varies with the share price, and the share price can be distorted by bondholders delta-hedging activities?
A3: Yes, the board has considered redeeming the bond but, at present, we believe more shareholder value is created by buying back equity at sufficiently low prices.
Q4: Once phase 1 of the Sabodala-Massawa plant upgrade is completed, can we expect production ITRO 400koz p.a.?
A4: Not quite. Following completion of phase 1, we expect steady state production of around 90koz/qtr=360koz p.a. Q4 production this year will be a good indicator of future production from that mine (until phase 2 is implemented).
Best,
Mark