RE:Q1 ResultsAsked management about the large cash pile. Response was that since the quarter end they have paid down $150m of the RCF.
Post the London listing Endeavour will be looking at a more comprehensive refinancing package and "cleaning up the balance sheet".
During the Q&A it was pointed out that Endeavour was positioning as the "new Randgold" but that whereas Randgold traded at a premium to its peers, EDV was at a discount. What levers could management pull to improve the rating?
Sebastien responded that this was largely a question of time: Randgold & Mark Bristow had built their reputation up over many years. He expected that as EDV delivered on its promises and produced consistent results it should be rewarded with a better rating.
Echoing some of tC's past comments, I do think that the market may have been unsettled by the sharp flurry of acquisitions and may need to see those bedding in and no further unexpected announcements before rewarding the company.
A "Capital markets virtual teach-in event" is to take place later this month, ahead of the London listing. EDV should be included in FTSE indexes at the September quarterly review, but not before then.
Cheers,
Mark