Teranga Gold Corporation T.TGZ

RE:RE:RBC on EDV

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temple - Unable to post the charts but here's the narrative portion of page 5. GLTA

London listing could be key to unlocking trading liquidity

In our view, the planned London listing could be a central component to unlocking liquidity in EDV shares, which have been less liquid versus peers particularly when considering the relative size of the company. We believe the dilution of the La Mancha position to 19% (from 24%) and share based structure of the acquisition could result in greater liquidity given a larger notional float, and will also help to smooth out quarterly earnings volatility, which had been a prior issue due to Endeavour’s relatively low share count.

More importantly, in conjunction with Endeavour’s increased size, the company is targeting filling in the gap left by Randgold leading to a dearth of large-scale precious metals companies listed in London, and appealing to a wider investor base that is also more receptive to West African producers.

With the planned premium listing on the London Stock Exchange, EDV is targeting potential inclusion in the FTSE indices in 2021, and with a corporate office already in place it could garner consideration based on certain liquidity requirements, or by redomiciling into London. Based on a market cap of US$5.7B, we estimate Endeavour would be one of the largest companies within the FTSE250, but would be towards the bottom end cut-off of the FTSE100, making inclusion into that index less certain.