I have no issue … ... making this one of my core holdings ( although I own many gold royalties, AEM, NEM, many more junior producers, etc)
EDV has 3 issues at the moment:
- rebuilding their gold oz production back up after divesting some mines in a less favourable country (BF) in favour of newer bigger mines in more favourable countries ( IC, Senegal)
- pending CEO appointment ( and swirling rumours on overblown irregularities and ambulance chasers)
- perception of higher risk - yielding a lower than warranted multiple ( vs peers)
All of the above will be cured within 6-12 months, along with some additional catalysts:
- repayment of debt
- increasing cash flow redirected to dividends and buybacks
- rising price of gold ( = exponential margin growth and cash flows )
- US retail investors ( finally!) returning to gold equities ( after a 8+ year hiatus)
Not worried in the least about this one.
MM