21 August 2020 Endeavour’s Q220 results were materially ahead of both Edison and consensus estimates. Adjusted EBITDA of US$120.2m was within 7.5% of the first quarter’s record, while adjusted net earnings reached a new recent record of US$52.8m, or 47.6c/share. At least as importantly, all operations were reported to be continuing to operate at near-normal levels, despite COVID-19. As a result, we have upgraded our FY20 forecasts materially, driven by sharply increased production in Q4 in particular, combined with a materially higher gold price. Given its current rate of deleveraging, we calculate that Endeavour could be net debt free early in FY21, at which point it is likely to transition to dividend payments and a focus on shareholder returns at the same time as developing new projects, such as Fetekro (currently valued at US$1.68/share – see page 12). Year end Revenue (US$m) EBITDA (US$m) PBT* (US$m) Operating cash flow per share (US$) Capex (US$m) Net debt** (US$m) 12/18 1,048.6 378.9 75.8 2.31 689.5 ***518.6 12/19 1,362.1 618.4 220.4 3.30 401.2 525.2 12/20e 1,816.0 1,002.4 639.8 4.98 352.5 29.9 12/21e 2,034.0 1,027.0 668.3 5.19 191.5 (503.8) Note: Pro forma basis. *PBT is normalised, excluding amortisation of acquired intangibles and exceptional items. **Excludes restricted cash. ***Pre-acquisition basis. Elimination of net debt and new listing beckon The integration of Mana and Boungou into Endeavour’s well established West African operating model has now been almost completed only a month after the SEMAFO acquisition. In the wake of La Mancha’s 3 July injection of US$100m into the enlarged group, pro forma net debt has fallen to just US$309m, which equates to a gearing (net debt/equity) ratio of c 20.4% and a leverage (net debt/[net debt+equity]) ratio of c 16.9%. Perhaps more significantly, given the much stronger performance that we expect from the enlarged group’s six mines in H220, coupled with a stronger gold price environment, we believe that Endeavour could be net debt free as early as the beginning of FY21, at which point it will be in a position to make dividend distributions to shareholders. In the meantime, its exploration programme continues apace, with the company having successfully achieved 83% of its five-year target of discovering 10–15Moz by the end of FY21. Finally, in recognition of its achievements, management has confirmed that it is pursuing a secondary listing in either London or New York in the near future. Valuation: US$43.34/share plus US$1.68/share Since 29 June, our forecasts and valuation have reflected Endeavour’s acquisition of SEMAFO. Within this context, our terminal valuation of the combined entity at end-FY22 is now US$51.74/share – little changed from our previous valuation – which (in conjunction with forecast intervening cash flows) discounts back to a value of US$43.34/share in FY20, to which a further US$1.68/share may also be added for the Fetekro PEA (see page 12). In the meantime, on a relative basis, the enlarged Endeavour remains materially cheaper than the ranks of the world’s major gold producers on at least 88% (32 out of 36) of common valuation measures regardless of whether Edison or consensus forecasts are used (see Exhibit 9). Endeavour Mining Q220 results Strong Q2 tees up strong H2 Price C$35.80 Market cap C$5,835m C$1.3206/US$ Net debt (US$m) at end June 2020* 472.6 *Pre-acquisition, excludes convertible premium. Shares in issue 163.0m Free float 75.2% Code EDV Primary exchange TSX Secondary exchange US OTC Share price performance % 1m 3m 12m Abs 10.0 11.7 36.0 Rel (local) 6.9 0.3 33.8 52-week high/low C$37.03 C$20.01 Business description Following its acquisition of SEMAFO, Endeavour joins the ranks of the major gold producers, with two mines in Côte d’Ivoire (Agbaou and Ity) and four in Burkina Faso (Houndé, Karma, Mana and Boungou) plus three major development projects, all in the West African Birimian greenstone belt. Next events Kari West, Center & Gap maiden reserve Q320 Updated Le Plaque reserve Q320 Updated Fetekro PEA Q420 Kalana updated feasibility study H220 Analyst Charles Gibson +44 (0)20 3077 5724 [email protected]Edison profile page Metals & mining Endeavour Mining is a research client of Edison Investment Research Limited
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21 August 2020 Endeavour’s Q220 results were materially ahead of both Edison and
consensus estimates. Adjusted EBITDA of US$120.2m was within 7.5% of
the first quarter’s record, while adjusted net earnings reached a new recent
record of US$52.8m, or 47.6c/share. At least as importantly, all operations
were reported to be continuing to operate at near-normal levels, despite
COVID-19. As a result, we have upgraded our FY20 forecasts materially,
driven by sharply increased production in Q4 in particular, combined with
a materially higher gold price. Given its current rate of deleveraging, we
calculate that Endeavour could be net debt free early in FY21, at which
point it is likely to transition to dividend payments and a focus on
shareholder returns at the same time as developing new projects, such as
Fetekro (currently valued at US$1.68/share – see page 12).
Year end Revenue
(US$m) EBITDA (US$m)
PBT* (US$m)
Operating cash flow per share (US$)
Capex (US$m)
Net debt** (US$m)
12/18 1,048.6 378.9 75.8 2.31 689.5 ***518.6
12/19 1,362.1 618.4 220.4 3.30 401.2 525.2
12/20e 1,816.0 1,002.4 639.8 4.98 352.5 29.9
12/21e 2,034.0 1,027.0 668.3 5.19 191.5 (503.8)
Note: Pro forma basis. *PBT is normalised, excluding amortisation of acquired intangibles and exceptional items. **Excludes restricted cash. ***Pre-acquisition basis.
Elimination of net debt and new listing beckon
The integration of Mana and Boungou into Endeavour’s well established West
African operating model has now been almost completed only a month after the
SEMAFO acquisition. In the wake of La Mancha’s 3 July injection of US$100m into
the enlarged group, pro forma net debt has fallen to just US$309m, which equates
to a gearing (net debt/equity) ratio of c 20.4% and a leverage (net debt/[net
debt+equity]) ratio of c 16.9%. Perhaps more significantly, given the much stronger
performance that we expect from the enlarged group’s six mines in H220, coupled
with a stronger gold price environment, we believe that Endeavour could be net
debt free as early as the beginning of FY21, at which point it will be in a position to
make dividend distributions to shareholders. In the meantime, its exploration
programme continues apace, with the company having successfully achieved 83%
of its five-year target of discovering 10–15Moz by the end of FY21. Finally, in
recognition of its achievements, management has confirmed that it is pursuing a
secondary listing in either London or New York in the near future.
Valuation: US$43.34/share plus US$1.68/share
Since 29 June, our forecasts and valuation have reflected Endeavour’s acquisition
of SEMAFO. Within this context, our terminal valuation of the combined entity at
end-FY22 is now US$51.74/share – little changed from our previous valuation –
which (in conjunction with forecast intervening cash flows) discounts back to a
value of US$43.34/share in FY20, to which a further US$1.68/share may also be
added for the Fetekro PEA (see page 12). In the meantime, on a relative basis, the
enlarged Endeavour remains materially cheaper than the ranks of the world’s major
gold producers on at least 88% (32 out of 36) of common valuation measures
regardless of whether Edison or consensus forecasts are used (see Exhibit 9).
Source: Endeavour Mining, Edison Investment Research, Refinitiv (consensus estimates), Bloomberg. Note: Company reported basis; *Compares Q220 actual figure with Q220 Edison estimate.
Endeavour Mining | 21 August 2020 4
Items included in the reconciliation between adjusted net earnings attributable and total net and
comprehensive earnings are losses from discontinued operations, deferred income tax effects,
gains/losses on financial instruments, other expenses, share-based compensation and acquisition
costs (all shown independently in the table above), plus the tax impact of adjusting items, non-cash
and other adjustments and the minority interest attributable to the adjusting items (not shown
independently).
In general, all four of Endeavour’s mines recorded lower stripping ratios in Q2 than Edison had
forecast. In addition, there was evidence of a close control in costs in the fact that capital
expenditure (either sustaining or non-sustaining, or both) was also lower at all four mines. A full
explanation and description of the factors and forces affecting operations in Q220 cf Q120 is
provided in Endeavour’s press release accompanying its results and also its management
discussion and analysis (MD&A). However, a brief summary of each of its mines’ performances
during the quarter is as follows:
Exhibit 2: Endeavour Mining operations’ performance in Q220
Mine Mining and processing Costs Grade Recovery
Ity Operated at close to normal levels, despite COVID-19, but focused on accelerated waste extraction and a tailings storage facility (TSF) raise in order to provide increased future operational flexibility. Pre-stripping commenced on the Colline Sud pit.
Unit mining costs increased with higher drill and blast and equipment maintenance costs associated with mining a higher proportion of fresh ore. Processing unit costs broadly flat despite increased downtime and lower mill throughput.
Processed grade declined 2.5% as mill feed was supplemented by lower-grade oxide stockpiles as mining focused on waste extraction.
Recovery rates declined 7pp, as a result of processing greater quantities of transitional and fresh ore from Daapleu.
Houndé Operated at near-normal levels, despite COVID-19. Stripping ratio decreased as scheduled waste capitalisation deferred to later in the year and mining focused on the lower strip Vindaloo Central and Bouéré pits.
Mining costs declined as a result of lower drill and blast activity required for mining oxidised ore at Vindaloo Central. Processing costs increased on account of higher reagent costs. Non-sustaining capital up reflecting compensation and resettlement for the Kari Pump area as well as a TSF raise.
Processed grades increased as waste capitalisation in Q120 resulted in access to higher-grade ore. Also, less material from low-grade stockpiles used to supplement mill feed.
Recovery rates improved 1pp in Q220 (cf Q120 when recoveries declined as proportion of material from Bouéré increased).
Agbaou Operated at near-normal levels despite COVID-19. Tonnes mined decreased owing to focus on the deeper elevations of the North and South pits plus higher rainfall and lower equipment productivity as mining concentrated on the fresh material horizons, which also depressed tonnes milled. Lower overall stripping ratio.
Mining costs increased as a result of the increase in the proportion of fresh material mined from deeper elevations in the North and South pits. Processing costs increased on account of a greater proportion of fresh ore in the blend. Sustaining capex declined owing to lower capitalised waste. AISC flat overall.
Processed grades declined as a result of higher tonnage from the lower-grade South pit and the use of low-grade stockpiles to supplement the plant feed.
Recovery flat after Q120 decline when the percentage of fresh ore increased.
Karma Operated at near-normal levels despite COVID-19. Total tonnes mined remained relatively flat cf Q120, albeit a higher proportion of ore was sourced from the lower-grade GG1 pit. In the meantime, a waste stripping campaign commenced at the Kao North pit. Ore tonnes stacked increased owing to the benefit of the recently completed conveyor and stacking system upgrades. Mining operations successfully transferred to a local contractor on 8 June.
After increasing in Q120 on account of higher load and haul costs from the GG1 pit and the mining of lower elevations in the Kao North pit, mining costs remained flat in Q2.
Processing costs increased owing to the higher use of cyanide and cement associated with the lower-grade GG1 material stacked.
Sustaining capital costs increased owing to increased capitalised waste at Kao North. Non-sustaining capital costs increased owing to security and process plant upgrades.
Stacked grade decreased as lower-grade ore sourced from GG1 pit (cf Q120 when grade increased as high-grade ore was mined from the Kao North pit).
Recovery declined owing to stacking of transitional material and an increase in gold locked in the heap, which is expected to be recovered in future quarters.
Source: Endeavour Mining, Edison Investment Research
Ity Plant feed will continue to be sourced from the Daapleu and Bakatouo pits supplemented by material from the old heap leach dumps. In general, more fresh ore will be mined as the pits deepen. Mined and processed ore grades are anticipated to be approximately flat for the remainder of the year. Having declined in Q2, metallurgical recoveries are expected to recover in Q3 and Q4. Carbon-in-leach (CIL) plant should naturally be less affected by the Q3 rainy season than the historical heap leach operation.
Houndé The focus of mining operations at Houndé in FY20 will be waste mining and removal. After low-grade stockpiles continued to contribute to processed ore into Q220, in H220 both mined tonnages and grades are expected to improve, although waste extraction will remain high in order to access high-grade material. Endeavour has recently received a mining permit for Kari Pump, which we expect will contribute to mill feed in Q4. Sustaining capex in H2 is anticipated by slightly less cf H1 as sums deferred from the earlier period relating to waste removal are expended, but is expected to remain approximately unchanged for the full year (relative to our prior expectations). The mill is expected to continue to perform at or above nameplate capacity.
Agbaou Mining at Agbaou in 2020 will continue from the North and South pits but will cease at the West pit in H2. Throughput and recovery will decline in H2 as a greater proportion of hard, fresh ore is mined and processed. However, grades are now expected to improve in H220 relative to our earlier forecasts.
Karma Mining at Karma in 2020 will continue from the Kao North and GG1 pits. Having declined in Q2, as the grade in the Kao North pit declined, processed grades are expected to increase back up to Q419 and Q120 levels once again by Q420. In the meantime, Karma will continue to benefit from the installation of its new stacker system.
Mana Siou open pit mining activities are expected to be completed in H2, after which activity will focus solely on Wona. In the meantime, underground mining activity is anticipated to increase. Sustaining and non-sustaining capital expenditure for FY20 is presumed to remain unchanged compared to SEMAFO’s published guidance, amounting to US$70.0m and US$2.0m, respectively.
Boungou Boungou is expected to recommence mining activities in Q420, once a new mining contract has been awarded, the airstrip has been built and the necessary security protocols have been implemented within Endeavour’s operating model. In the meantime, processed grades and recovery rates are anticipated be on a declining trend as higher quality ore stockpiles are processed as a priority. Sustaining and non-sustaining capital expenditure expectations remain unchanged cf SEMAFO’s published guidance at US$10m and US$3m, respectively.
Source: Endeavour Mining, Edison Investment Research
In the wake of Q220 results, Endeavour’s production and cost guidance for FY20 remains
unchanged and compares with Edison’s updated forecasts as follows:
Exhibit 4: Endeavour production cost and AISC guidance, by mine, FY20 vs Edison forecast
Production (koz) AISC (US$/oz)
Mine FY20e guidance (koz)
Current Edison FY20e forecast (koz)
Previous Edison FY20e forecast (koz)
FY20e guidance (US$/oz)
Current Edison FY20e forecast (US$/oz)
Previous Edison FY20e forecast (US$/oz)
Houndé 230–250 250.8 244.0 865–895 877 936
Agbaou 115–125 114.0 113.1 940–990 979 1,021
Karma 100–110 100.2 103.9 980–1,050 975 1,027
Ity CIL 235–255 235.8 231.3 630–675 673 808
EDV assets’ total 680–740 700.9 692.3 *845–895 *874 *965
Mana 185–205 202.0 1,050–1,120 1,098
Boungou 130–150 132.0 680–725 689
SFO assets’ total 315–355 334.0 895–960 938
New EDV total 995–1,095 1,034.9 865–915 870
Source: Endeavour Mining, Edison Investment Research. Note: *Includes corporate general and administrative costs.
Endeavour Mining | 21 August 2020 6
EDV FY20 estimates (pre-acquisition and pro forma)
While Endeavour was not entirely unaffected by the coronavirus pandemic in Q220, it is clear that
the effects on its operations were limited to little more than maintenance schedules as a result of
travel restrictions on technical and engineering consultants. Significantly, there was little or no effect
on costs, which were particularly well restrained at both Houndé and Ity (Endeavour’s two most
consequential mines). In the meantime, Endeavour has insured itself as far as possible against the
unexpected in H2 by both setting itself up to operate under Level 2 COVID-19 restrictions (see
COVID-19, below) and also preparing multiple different levels in its pits, from which to produce as
well as de-watering and resupplying ahead of the traditional Q3 rains.
As a result, Edison has left its forecasts and assumptions relatively unchanged for H220, with the
exception of:
◼ Selected costs, which have been revised downwards in the light of Endeavour’s robust cost
control in Q220.
◼ The gold price, which has risen from c US$1,760/oz at the time of our last note (see Maiden
fully consolidated valuation (EDV+SFO), published on 29 June 2020) to over US$1,900/oz at
the time of writing.
◼ Royalty rates to reflect the new gold price.
◼ Estimates of sustaining and non-sustaining capital expenditure, which have been revised in line
with Endeavour’s updated guidance in the wake of its Q2 results (see both Endeavour’s news
release and its management discussion and analysis).
◼ We have shifted some of the advisory fees relating to the SEMAFO acquisition that we had
expected in Q220 into Q320.
In the light of these changes, our updated forecasts for Endeavour (on both a pre-acquisition and a
pro forma basis) for the remainder of the year are as follows in Exhibit 5, overleaf. Readers wishing
to compare the updated forecasts with our prior forecasts may do so by comparing the numbers in
Exhibit 5 with those in Exhibit 1 of our last note.
Opening net debt/(cash) 218,140 518,607 525,220 29,851 (503,833)
HP finance leases initiated
0 0 0 0 0
Other
33,489 (88,998) 0 0 0
Closing net debt/(cash) 518,607 525,220 29,851 (503,833) (1,043,112)
Source: Company sources, Edison Investment Research. Note: Presented on pro forma basis (except FY18 balance sheet). EPS normalised from 2018 to reflect continuing business only. *Excludes restricted cash.
Endeavour Mining | 21 August 2020 14
Appendix
Risks and sensitivities
Gains or losses on financial instruments
Gains/losses on financial instruments are usually of a non-cash nature and invariably excluded from
analysts’ forecasts. In the recent past, they have arisen from two sources at Endeavour: 1) its gold
revenue protection programme (which has now been discontinued); and 2) unrealised gains/losses
on its convertible senior bond derivative, which is a notional accounting entry, ironically, reflecting
rises in Endeavour’s share price (see Exhibit 14). As such, they are both of an ‘exceptional’ nature
and ignored by most (if not all) investors. A discussion of each of these items is conducted here for
no other reason than to make readers aware of the potential for gains/losses in the future – despite
the fact that they will almost certainly be of a non-cash nature relating to the derivative notionally
assumed to be embedded in the convertible – and the magnitude of these, albeit paper, losses.
During the year ended 31 December 2019, Endeavour put in place a gold revenue protection
programme in order to maximise cash flow certainty during its debt reimbursement phase. Similar
to the strategy it put in place during its recent construction phases, this comprises a deferred
premium collar strategy using written (sold) call options and bought put options to (effectively)
create a synthetic short position. The programme began on 1 July 2019 and ended on 30 June
2020 and covered a total of 360,000oz, with a floor price of US$1,358/oz and a ceiling price of
US$1,500/oz. As at 31 March, 120,000oz remained outstanding under the collar derivative liability,
implying (among other things) that contracts over this number of ounces were exercised in Q220,
which we estimated at the time of our last note could have resulted in a net loss of US$33.6m, but
which, in fact, only gave rise to a US$10.171m loss (see Exhibit 13).
Exhibit 13: Gain/loss on gold revenue protection programme (US$000s)
At first glance, a US$10 appreciation in Endeavour’s shares giving rise to a US$63.4m loss on its
convertible would suggest a loss of US$6.4m per US$1 by which Endeavour’s shares appreciate.
In fact, as at end-Q220, Endeavour’s share price was very slightly above its conversion price of
US$23.90 – hence the Q2 loss is likely to have been close to its maximum possible, given that both
the intrinsic value of the presumed embedded option will have been increasing rapidly at the same
time as its option value. Beyond this level, while the intrinsic value of the embedded option will
continue to increase, the option value should moderate. Given the number of shares into which the
bond is convertible, we estimate that for each US$1 appreciation in the price of its shares beyond
US$23.90, Endeavour should record a loss of no more than US$13.8m. As before however, given
the inherent uncertainties surrounding gains (or losses) from financial instruments, they have been
excluded from our forecasts in Exhibits 5 and 12 and are anyway excluded from the calculation of
adjusted net earnings and analysts’ forecasts.
COVID-19
National and regional response
Since the onset of the pandemic, governments in West Africa have acted decisively to implement
appropriate response measures, using (where appropriate) their recent experience in dealing with
Ebola in the region as a precedent. Out of three states of alert, West Africa is currently at a ‘Level 1’
state of readiness (ie that the virus remains predominantly outside West Africa), with the potential to
escalate this to ‘Level 2’. In practice, this means that both Burkina Faso and the Ivory Coast have
closed their borders and commercial flights both into and out of the countries have been
suspended. Within this framework however, ‘key industries’ are allowed to remain operating and, in
both countries, ministers are reported to be very keen that gold mining should continue. For their
own protection therefore, mines have been isolated from the rest of the country.
Whether as a direct result of these measures or not, of all of the (populated) continents in the world,
Africa to date appears to have been the least affected by COVID-19, albeit this may, in part, reflect
Africa’s relatively youthful population dynamic (the median age in Africa being just 19.7).
Company response
Endeavour has been supporting the national response in close collaboration with the health
authorities in its host countries. In addition, it has mobilised and dispatched an expert medical
response team to the region to provide it with an on-hand unit to respond rapidly to any infections
that might arise at its mines.
In early March 2020, Endeavour put in place a business continuity plan to mitigate the risks and
potential impact of the global COVID-19 pandemic, which has three levels of response:
◼ Level 1 involves a range of preventative measures including temperature checks, restricted
access to sites, social distancing, increased hygiene standards and mandatory quarantine
periods for employees arriving in-country, while otherwise continuing operations as normal.
◼ Level 2 is designed to be initiated should COVID-19 become more prevalent in the countries in
which the group operates and involves comprehensive restrictions on movement into and out of
the mines. Under these circumstances, Endeavour’s mines would be isolated, but mining
operations and the shipment of gold would continue.
◼ Level 3 involves the full or partial suspension of mining and processing operations.
To date, the group is operating under Level 1 restrictions only. In addition, the group has also taken
a number of pro-active steps, including:
Endeavour Mining | 21 August 2020 16
◼ Assessing its supply chains with a focus on ensuring continuity of supply in a range of
scenarios. In this case, Endeavour’s shift to national suppliers located within host countries
over the past 12 months has mitigated the impact of closed borders.
◼ To ensure that it has access to substantial liquidity and financial flexibility to operate under
various stress-test scenarios, Endeavour drew down the entirety of its available revolving credit
facility (RCF) in Q120, albeit it has now commenced repaying the RCF and expects to continue
to reduce the drawn amount throughout Q320 and Q420.
◼ It has assessed its ability to curtail its operations to selectively mine higher-grade ore at low
stripping ratios should mining activity need to be reduced in response to an increase in COVID-
19 prevention measures.
At the current time, each of the company’s operations are continuing to manage and respond to
COVID-19 within the framework of the company’s incident management and response plan, which
was activated at the outbreak of pandemic and has been validated by an epidemiologist special
advisor to the company. As part of the response, a business continuity programme has been put in
place to protect employees while ensuring the safe operation of the company and its mines. Since
early March, access to all mine sites has been strictly controlled with health screening in place for
visitors, employees and contractors, and all non-essential travel has been cancelled. Endeavour
has also asked any employee or contractor who is feeling unwell to stay at home and office workers
are required to work from home. Subsequently, it further augmented its preventive measures by
introducing a mandatory 14-day quarantine period for any employees or contractors arriving in
West Africa.
Consequently, Endeavour states that it has not witnessed any impact to production or operations at
any of its mines or exploration activities as a result of COVID-19. In the meantime, suppliers have
confirmed that placed and forecast orders are intact and the company has stated a readiness to
charter its own planes, if necessary, in order to keep its operations supplied.
From a financial perspective, Endeavour calculates its cash-burn rate to be of the order of
c US$70m per month (for its four pre-acquisition mines), with the potential to reduce to US$25–30m
per month (including paying all salaries) in the event that its mines are put on care and
maintenance. As such, its (pre-acquisition) cash balance of US$352m equates to approximately five
months’ worth of costs at current rates of operation or approximately one year’s worth at reduced
rates.
Endeavour Mining | 21 August 2020 17
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Neither this document and associated email (together, the "Communication") constitutes or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company in the proposed placing should be made solely on the basis of the information to be contained in the admission document to be published in connection therewith.
This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document (nor will such persons be able to purchase shares in the placing).
This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.
United States
Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.