Endeavour Mining plc T.EDV

RE:RE:RE:RE:RE:RE:what is next

[gold_diggers1]

riskybet wrote:

gold_diggers1 wrote:

riskybet wrote:
Normally i would agree. But the TGM holders get the same kind of exposure with EDV. Both are cheap and west afrika based. I think most investors just hold on.

During this period of uncertainty.... whether deal going thru or not, any other offer coming in, analyst disagreement on the merit of the deal (good or bad for EDV).... yada yada, EDV will be trading up and down until all things are set then people will evaluate the true values of EDV.   
.
Even the major shareholder of EDV (La Mancha Holding) who currently owns 30% of EDV (before the TGM deal) is willing to put more money into EDV to maintain its 30% ownership after the deal, it shows EDV does have values for them.  See excerpt below.
.
La Mancha will buy an additional around 7.54MM shares of EDV at $10.95 at a cost of $82.6MM in order to maintain 30% ownership of EDV.   So, EDV is currently trading below this $10.95..... cheap to buy at $10.65 than La Mancha?!
.
Everyone just sits tight..... Good things will come.... as I believe La Mancha Holding is not that stupid to put more money into EDV if the TGM were not good for EDV?!
.
.
Before the deal was announced: EDV O/S 60MM shares with market cap 60MM * $13 = $780MM.   La Mancha owns 30% = 18MM shares
.
The TGM deal: 400MM TGM shares * 0.044 = 17.6MM shares of EDV
.
After the deal: Total EDV O/S = 60MM + 17.6MM (TGM) + 7.54MM (La Mancha) = 85.14MM.    La Mancha will still own (18MM + 7.54MM) / 85.14MM = 30% of EDV.   That gives a current market cap 85.14MM * $10.65 = about $900MM.
.
So, an increase of only $120MM market cap to include TGM assets, 100K - 120K oz for 5 years, more properties from TGM, more cash from La Mancha, more FCF.... Is this good for EDV?   Go figure yourself.
.
.
Excerpt from NR....
.
Endeavour Mining Corp. has entered into a definitive arrangement agreement with True Gold Mining Inc., pursuant to which Endeavour Mining will acquire all of the issued and outstanding common shares of True Gold via a court-approved plan of arrangement. In conjunction with the acquisition, Endeavour Mining is pleased to announce that La Mancha Holding SARL, its largest shareholder with 30-per-cent ownership, intends to exercise an anti-dilution right that will result in an approximate $82.6-million ($61.5-million (U.S.)) new equity placement in Endeavour Mining.
.
.

 

Great post!

Hey riskybet, where is my 5-star rating? ....LOL..... Just kidding.
.
Kidding aside, may I also add that - in that $120MM market cap increase, EDV will have received cash $82.6MM from La Mancha Holding's (anti-dilution right) PP.  That is telling me that EDV, in effect, has a market cap increase of only ($120MM - $82.6MM) = $37.4MM for all TGM's assets including the soon producing mine at Karma?!
.
wow..... I just don't know what elephant is in the room to make people trading EDV down to this level?   Am I calculating this correctly or am I missing something?
.
GLTA