RE:RE:RE:RE:RE:Record Q4 and 2021 guidance.A thought on the current share price action: I wonder whether it's due to delta-hedging by holders of the convertible notes? Not an expert on this, but AIUI to hedge declines in the conversion value of the notes, hoders may short ordinary shares - and bigger declines in the share price require a larger short position (bit of a vicious circle).
For some evidence, see this notice when EDV was in takeover talks with Centamin, last year:
https://www.sharesmagazine.co.uk/news/market/LSE20200114150006_14383804/Form-8-point-3-Endeavour-Mining-Corporation Citadel held $26.8m of notes and were short of 690,000 ordinary shares.
May become clear when we see the next IIROC short report.
May make sense for EDV to just repay the notes in cash (they've now got an $800m RCF to cover any extra cash needs, e.g. for projects). If I'm right, repaying the notes would trigger a surge in the SP, as the hedges get closed. Would be wise to do this before the London Listing, to remove the liability of the notes and clean up the balance sheet.
Issuing the notes (convertible at the company's discretion) was a brilliant move, to secure cash needs, but with $718m of cash and the RCF ISTM that the notes have now outlived their purpose and should be repaid.
Cheers,
Mark