Endeavour Mining plc T.EDV

Cash piles

[templetooth2]

In a year's time, EDV will have a very strong balance sheet. It raises the question of whether the $200 million equity infusion from the Sawazri (sp?) family is really necessary?

There's a lot of excess cash piling up elsewhere, too. Centerra Gold backed out of the Premier deal just recently. Not because they were short of cash. Was just looking at SSR Mining: they're pretty flush, too, and getting more so by the day. I'm sure there are plenty of other examples.

One of tthese days we're gonna wake up and discover a bidding war has broken out for Skeena (about 5 million ounces) or even Sabina (9.2 million and counting) or 3 or 4 Ozzies you've never heard of. Tietto, anyone?

[RONNIE111]

Totally agree.  It is a very sweet deal for the Sawazri's.  Lots more cheap shares for them.  In the previous merger when they also took lots of shares on the cheap, it made a little more sense because it helped pay down the debt quicker.  That is totally not needed now. In their news release, EDV talked about at some point buying back shares with all the money that is and

[theCurse]

That's part of the man from la mancha's agreement.  You can't dilute The Dude (ha "the rug really tied the room together").  I expect he could have topped up his position at the market and for much less than he paid.  And any share EDV buys back are going to be more than they sold for....or one would hope not including semefo merger shares, There is an air of

[marben100]

Totally agree tC, but it's the disparity between EDV's valuation and that of other majors that gets me. Was just looking at the Barrick numbers this morning: looks to be around 4x the scale of EDV (production & reserves - but EDV's AISC is a bit lower), so EDV ought to trade ITRO 0.25 Barrick's market cap... which would be around US$9bn. I added another tranche to my CFD long

[Nickphil]

Mark, did you take into consideration that Barrick's trading currency is USD? I have no special interest in Barrick, however, yahoo finance shows their mc about USD 25B. If this is true then 1/4 of Barrick's market cap is about CAD 11B.  

[Nickphil]

Well, I to take a loock at Barrick's cash/debt level for a full evaluation comparisson, not just market cap.

[marben100]

Mark, did you take into consideration that Barrick's trading currency is USD? I have no special interest in Barrick, however, yahoo finance shows their mc about USD 25B. If this is true then 1/4 of Barrick's market cap is about CAD 11B. Yes, that's right.