Endeavour Mining plc T.EDV

$EDV Update ($$$$$)

[cool888]

https://stockhouse.com/news/press-releases/2020/11/10/endeavour-responds-to-press-report

[mercedesman]

Likely a large buying opportunity will be presenting itself. People will likely assume that EDV, being the larger entity, is the acquirer (deserving of a discount) whereas Teranga is the acquiree (deserving of a premium) Endeavour is not stupid... Synergies are likely in the hundreds of millions EDV are smart operators/acquireres (Semafo being the most recent example) Like the sounds of a 1

[theCurse]

I don't like the timing of this at all both short term and mid term - though it sounds like the news was forced out.  A couple days before what should be a killer qtr is announced.  And hopefully solid news of a dividend.  Also some chance of way too much over the course of a year. EDV has shed 3x more market cap today than Teranger has gained.  tC

[mercedesman]

Earnings timing could have been worse (e.g. yesterday) If an all share deal or merger the Dividend may appear, but it would not surprise me if it does not (yet) What do you mean -" some chance of way too much over the course of a year?" I own a fair bit of Teranga as well, it's had an amazing last 12-18 months.   Lots of synerrgies I would expect.

[mmoital]

In my view this is the time to do it. Before the bull resumes and these companies become too expensive /unwilling to merge. Teranga has 400m in debt, quite a bit for the company but little for the merged company. When Teranga is debt free, the incentive to merge will be lower.

[theCurse]

oh FFS - 400m debt.  and for good reason.  this deal smells.  and half a million shares so far today think the same way.  semafo was run by clowns **forever** you can bet on an ongoing bull market but always a great deal of uncertainty/risk. and my comment was two large acquisitions within such a short time isn't a great idea. and yeah, i bought some in the hopes of qtr

[BobMabena]

Teranga would be a very synergistic merger,  both operate in the same region for the most part and TGZ has done a great job of building itself into a very compelling operation which is reflected in the huge increase in it's share price over the last 18 months.   TGZ has basically done all the hard work to make itself something worth owning by juditious exploration, 

[mercedesman]

Hey Bob M Fancy meeting you over here.   I haven't posted on TGZ in a while, still own about 1/2 or more of my position You're right the Massawa deal has put TGZ on the map.  They co-exist in BF, so I think the synergies, at least there, would be real.  I also think that together, they could gooble up/consolidate some other local gold exploration companies to expand

[Lazer65]

I trust EDV management more than any other company I'm invested in and will continue to trust their judgement. Picked up more shares today ahead of the news tomorrow. IMO picking up shares close to $30 will look great in a year or so.

[marben100]

Good call Lazer. After today's announcement, time for those who've been slagging off management over the years to eat their words. Before today's announcement I was a bit worried that if they go ahead with the Teranga deal, it might push back their ability to pay dividends, due to the debt Teranga brings. Those fears thoroughly allayed in today's results. Besides having already

[marben100]

Re Teranga - we can be reassured that this won't go through unless the terms are right. Management have shown their ability to walk away from deals. Remember Acacia & Centamin? I hope TC is happier (as am I), now that a dividend has been declared! Expect a London or NY listing in the next 6 months: this was mentioned in the Q&A on today's call. preparation work is underway

[theCurse]

I sure am!  And i totally agree with you - i was worried Teranga would give them an excuse not to put a dividend in place.  It definitely is time and will bring in new investors/funds. tC

[marben100]

One slight dampener, now that I've studied the results more carefully: the big reduction in net debt this quarter was aided by a couple of one offs. These are: the cash from Semafo and the $100m from La Mancha exercising anti-dilution rights. Without those, net debt would only have reduced by $105m, so it would take a few quarters to repay Teranga's debt.

[mercedesman]

Good to know...thx Keep in mind that Teranga is becoming a serious cash flow machine in it's own right (now that Massawa is ramping up)...and should be able to handle the repayment of its own debt without requiring EDV's cash flow. That is likely one of the major reasons behind the decison to continue with the plan of paying a dividend. That, and the fact that the combined entity should