Pixium Vision — ESGO financing deal shores up balance sheet

Pixium Vision (PAR: PIX)

Last close As at 19/04/2024

EUR0.15

−0.04 (−21.05%)

Market capitalisation

EUR1m

More on this equity

Research: Healthcare

Pixium Vision — ESGO financing deal shores up balance sheet

Pixium has entered into a convertible notes financing arrangement with US-based healthcare investor European Select Growth Opportunities Fund (ESGO), for up to €30m of notes redeemable in cash and/or in shares, without interest, for a period of up to 36 months. The first tranche of €5.5m (gross) in notes was received on 14 July, and Pixium expects the funding will enable it to maintain operations to the end of Q123. While the possibility of a conversion of note tranche(s) to shares would increase the number of shares outstanding, this arrangement provides funding stability, thus enabling Pixium to execute on its Prima development strategy, which we believe could reach EU market approval in H125.

Written by

Pooya Hemami

Analyst - Healthcare

Healthcare

Pixium Vision

ESGO financing deal shores up balance sheet

Financing update

Healthcare equipment
& services

27 July 2022

Price

€0.23

Market cap

€14m

$1.00/€

Pro forma net debt (€m) at 30 June 2022 excluding €0.9m in lease liabilities

0.9

Shares in issue

59.8m

Free float

67%

Code

ALPIX

Primary exchange

Euronext Growth Paris

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(53.7)

(53.6)

(67.3)

Rel (local)

(54.7)

(51.9)

(65.0)

52-week high/low

€1.3

€0.2

Business description

Pixium Vision develops bionic vision systems for patients with severe vision loss. Its lead product, Prima, is a wireless subretinal implant system designed for dry-AMD. The company started implantations as part of a European pivotal study in early 2021.

Next events

Complete recruitment for PRIMAvera study

H222

Analyst

Pooya Hemami, OD, MBA, CFA

+1 646 653 7026

Pixium Vision is a research client of Edison Investment Research Limited

Pixium has entered into a convertible notes financing arrangement with US-based healthcare investor European Select Growth Opportunities Fund (ESGO), for up to €30m of notes redeemable in cash and/or in shares, without interest, for a period of up to 36 months. The first tranche of €5.5m (gross) in notes was received on 14 July, and Pixium expects the funding will enable it to maintain operations to the end of Q123. While the possibility of a conversion of note tranche(s) to shares would increase the number of shares outstanding, this arrangement provides funding stability, thus enabling Pixium to execute on its Prima development strategy, which we believe could reach EU market approval in H125.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/20

2.1

(8.7)

(0.26)

0.0

N/A

N/A

12/21

2.7

(10.9)

(0.23)

0.0

N/A

N/A

12/22e

1.8

(12.3)

(0.22)

0.0

N/A

N/A

12/23e

0.8

(18.2)

(0.29)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Funding to be used to advance the Prima programme

The financing arrangement is intended to allow Pixium to continue the PRIMAvera registration-enabling European pivotal study and complete patient enrolment, as well as to help fund the ongoing US early feasibility study. PRIMAvera is designed to assess the Prima bionic vision system in 38 patients with geographic atrophy associated with dry age-related macular degeneration (dry-AMD). Pixium recently announced the implantation of the first patient in the Netherlands. Assuming no significant new COVID-19 restrictions affect the European study sites, we remain confident that Pixium can meet its guidance of enrolment completion by year-end FY22. We maintain our estimate that primary 12-month data will be released in late 2023 or early 2024, leading to potential European approval in H125.

Valuation: Minor changes to basic equity value/share

As of 26 July, Pixium’s share price had declined c 56% from the €0.52 closing price on the day preceding the 14 July announcement, which we believe is likely due to investor concerns about the possibility of share dilution should note tranche(s) be converted to equity (as the amount of shares issued on a conversion request will depend on the prevailing share price). Nonetheless, we believe the ability of the company to raise funding in a challenging capital market environment demonstrates continued support and market interest for Pixium’s underlying technology and its potential in patients with severe vision loss attributed to dry-AMD. Pixium reported H122 results with expenditures slightly above our forecasts. After raising our FY22e and FY23e expense rates and updating our €/$ forex assumptions, we obtain a pipeline risk-adjusted net present value (rNPV) of €136.5m, versus €130.0m previously. After adding pro forma H122 €0.9m net debt, we determine an equity value of €135.6m, or €2.27 per basic share (vs €2.31 previously). Conversion of the outstanding drawn ESGO convertible notes at €0.22/share would adjust our equity valuation to €1.69/share.

Review of financing characteristics

The ESGO financing facility is comparable to a previous financing facility that Pixium had entered into with ESGO in 2019, and it consists of zero-interest 12-month convertible notes. This new facility is divided into several tranches of notes, with each note having a nominal value of €10,000 and a maturity date of 12 months from the date of issue. The first three tranches amount to €9.5m and can be drawn in total within 140 calendar days of 13 July, with the remaining tranches drawn after an additional 140 days as required. Up to 3,000 notes can be issued as part of the facility over the 36-month duration, and the first tranche has now been drawn. This first tranche, which is for 550 notes and drawn on 13 July, provides Pixium with €5.5m in gross proceeds, of which €0.5m was used to repay a prior loan to ESGO. After factoring in issuance costs and the repayment of the prior loan, Pixium received about €4.615m net from this first tranche.

Pixium can draw down the second tranche (€2m, or 200 notes) in 70 calendar days (from 13 July), and the third tranche (also €2m, or 200 notes) in 70 calendar days following the second tranche. Subsequent tranches (up to 2,050 notes, or €20.5m) can be drawn 140 calendar days after the third tranche.

The notes are exercisable under usual circumstances at 95% of the lowest of the volume-weighted average daily price of Pixium shares in the 10 consecutive trading days immediately preceding the date of receipt of a conversion notice by Pixium (but excluding any trading days during which the investor sold any Pixium shares on the market). ESGO also has the option of requesting payment in cash or in shares.

To date, 30 notes (representing €0.3m in nominal debt) have been converted to equity, leading to the issuance of 1.06m shares. Altogether, at the 26 July closing price of €0.23/share, the conversion of the remainder of the first tranche (520 notes) at a hypothetical conversion price of €0.22/share would lead to the issuance of 23.8m additional Pixium shares. Hence, this would dilute existing shareholders by c 28% (ie an investor with a 1% theoretical interest in Pixium would have their equity interest reduced to 0.72%).

We note that Pixium Vision is not obliged to draw on any of the remaining €24.5m in tranches covered by the ESGO agreement. The company continues to engage in dialogue with potential investors and is seeking additional potential sources of funding.

H122 financial update

Pixium reported H122 results, which showed a slightly higher loss compared to our prior estimates, with an operating loss of €6.1m (H121: €4.8m), above our €5.2m estimate. R&D costs of €4.1m (+11% y-o-y) came above our €3.7m forecast, with the yearly rise driven by increased activity as the PRIMAvera study increased enrolment as it covers more study sites. SG&A (including depreciation) was €3.1m (+4% y-o-y) versus our €2.3m estimate. The increase in SG&A was attributed by management as due to legal costs incurred as the company explored financing options, but we note that in H121 the company had also reported increased legal and other costs in relation to the unsuccessful Second Sight transaction. Altogether, Pixium reported a free cash outflow (net operating cash flows plus net capex outflows) of €7.1m (H121: €6.1m), above our €5.2m estimate. The company reported a gross cash position of €7.22m, and €8.38m in total gross debt, resulting in a net debt position of €1.16m, excluding €0.9m in lease liabilities. This compared to a net cash position of €6.4m at YE21 excluding lease liabilities. Subsequent to quarter-end, €0.3m of the first ESGO tranche was converted to equity and hence we assume H122e pro forma net debt is €0.86m.

Operationally, the company maintains its guidance for reporting 12-month data for the PRIMAvera pivotal study at around YE23. The recent announcement of the first implantation at Rotterdam Eye Hospital in the Netherlands follows successful implantations within the PRIMAvera study in sites across the UK, France and Germany. The company expects new sites to open in Spain and Italy. We continue to estimate that the company could receive potential European market approval and launch the product in H125. Pixium also expects to complete enrolment for the five-patient US feasibility study (PRIMA-FS-US) before YE22.

Valuation and financials

Following the reported H122 financials, we have increased our operating expenditure (and primarily R&D cost) forecasts for 2022 and 2023, but have not revised our local-currency operating revenue projections, which remain comparable to those published in our previous note. We now expect FY22e and FY23e operating losses of €12.5m, and €16.5m, respectively, up from our prior estimates of €10.4m and €14.1m, respectively. We have raised our PRIMAvera trial expenditure cost forecasts for FY22 and FY23 given the H122 expenditure rate. As a reminder, we also expect FY23e R&D costs to increase year-on-year as our model projects that the company will potentially start a separate US pivotal study in 2023. The company is continuing to work with the FDA to potentially enable PRIMAvera to be used as part of the strategy for eventually obtaining US registration and we plan to revise our forecasts accordingly once greater clarity is provided on the US clinical development path.

We have rolled forward our valuation and updated our forecasts to reflect the significant appreciation of the US dollar (we assume euro parity to the US dollar, versus our prior estimate of $1.10/€). We have also made minor adjustments to our interest rate, working capital and depreciation forecasts. We assume a free cash outflow rate of €13.3m and €20.4m in FY22e and FY23e respectively, up from our prior respective estimates of €8.3m and €18.5m.

The first tranche (€5.5m initially, now reduced to €5.2m following conversions to date) of the ESGO facility is expected to enable Pixium to maintain operations through Q123. Including this tranche, we assume the company will raise €8.3m in total net debt in H222 (modelled as illustrative debt, although we believe this is likely to be funded by the ESGO facility), and a further €37m before the end of FY24, to complete the PRIMAvera study and all EU-related regulatory and preparatory commercial activities to bring Prima to commercial launch.

We now expect end-FY22 net debt (excluding leases) of €7.1m, up from €3.2m previously.

Following the adjustments described above, we now derive a pipeline rNPV of €136.5m, up from €130.0m previously. After including €0.9m pro forma H122 net debt, we determine an equity value of €135.6m, or €2.27 per basic share (previously €2.31 per share).

Exhibit 1: Pixium Vision rNPV assumptions

Product contribution

Indication

Status

NPV
(€m)

Probability of success

rNPV (€m)

rNPV/
share (€)

Launch year

Peak sales
(€m) in 2030

Prima (net of R&D and SG&A costs) in EU market

Age-related macular degeneration with geographic atrophy

Pivotal study

593.9

25.00%

135.4

2.27

H125

474

Prima (net of R&D and SG&A costs) in US market

Age-related macular degeneration with geographic atrophy

Human feasibility trials

492.0

20.00%

95.9

1.61

H226

539

Net capex, NWC & taxes (Global)

(412.5)

(94.9)

(1.59)

Total

673.5

136.5

2.28

Pro forma Net cash (debt) at 30 June 2022 adjusted for ESGO note conversions to equity

(0.9)

(0.9)

(0.01)

Total equity value

672.6

135.6

2.27

Basic shares outstanding (000)

59,756

Source: Edison Investment Research. Note: NWC refers to net working capital.

Assuming conversion of the €5.2m outstanding ESGO convertible notes from the first tranche at €0.22/share, and adjusting our net cash calculations accordingly, would adjust our equity valuation to €1.69/share from the addition of the resulting 23.8m shares.

Exhibit 2: Financial summary

€000s

2018

2019

2020

2021

2022e

2023e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

1,598

1,782

2,092

2,655

1,844

800

Cost of Sales

(41)

0

0

0

0

0

General & Administrative

(2,019)

(3,572)

(4,008)

(5,084)

(5,147)

(6,204)

Research & Development

(5,297)

(6,563)

(5,704)

(7,282)

(8,786)

(10,800)

EBITDA

 

 

(5,758)

(8,352)

(7,620)

(9,712)

(12,089)

(16,204)

Depreciation

(677)

(448)

(366)

(549)

(403)

(295)

Amortization

0

0

0

0

0

0

Operating Profit (before exceptionals)

 

(6,435)

(8,801)

(7,986)

(10,261)

(12,492)

(16,500)

Exceptionals

(5,859)

(69)

(448)

0

0

0

Other

0

0

0

0

0

0

Operating Profit

(12,294)

(8,870)

(8,434)

(10,261)

(12,492)

(16,500)

Net Interest

(1,277)

(1,006)

(699)

(669)

224

(1,673)

Profit Before Tax (norm)

 

 

(7,712)

(9,806)

(8,685)

(10,930)

(12,268)

(18,172)

Profit Before Tax (FRS 3)

 

 

(13,571)

(9,876)

(9,133)

(10,930)

(12,268)

(18,172)

Tax

0

0

0

0

0

0

Profit After Tax and minority interests (norm)

(7,712)

(9,806)

(8,685)

(10,930)

(12,268)

(18,172)

Profit After Tax and minority interests (FRS 3)

(13,571)

(9,876)

(9,133)

(10,930)

(12,268)

(18,172)

Average Number of Shares Outstanding (m)

18.5

22.3

34.0

48.5

56.5

63.5

EPS - normalised (€)

 

 

(0.42)

(0.44)

(0.26)

(0.23)

(0.22)

(0.29)

EPS - normalised and fully diluted (€)

 

 

(0.42)

(0.44)

(0.26)

(0.23)

(0.22)

(0.29)

EPS - (IFRS) (€)

 

 

(0.73)

(0.44)

(0.27)

(0.23)

(0.22)

(0.29)

Dividend per share (€)

0.0

0.0

0.0

0.0

0.0

0.0

BALANCE SHEET

Fixed Assets

 

 

3,666

4,507

3,410

2,684

2,176

1,901

Intangible Assets

2,623

2,361

1,727

1,341

1,162

1,162

Tangible Assets

1,042

2,145

1,683

1,343

1,014

739

Current Assets

 

 

17,756

9,107

12,721

16,945

13,360

5,904

Short-term investments

0

0

0

0

0

0

Cash

15,629

6,792

10,566

14,505

9,618

2,250

Other

2,126

2,316

2,155

2,440

3,742

3,654

Current Liabilities

 

 

(2,044)

(2,880)

(3,885)

(6,483)

(6,002)

(2,881)

Creditors

(2,044)

(2,880)

(3,349)

(4,895)

(3,728)

(607)

Short term borrowings

0

0

(536)

(1,588)

(2,274)

(2,274)

Long Term Liabilities

 

 

(8,023)

(7,033)

(7,682)

(7,332)

(15,099)

(28,099)

Long term borrowings

(7,870)

(5,787)

(6,604)

(6,500)

(14,425)

(27,425)

Other long term liabilities

(153)

(1,246)

(1,078)

(832)

(674)

(674)

Net Assets

 

 

11,355

3,700

4,564

5,814

(5,565)

(23,175)

CASH FLOW

Operating Cash Flow

 

 

(6,174)

(7,282)

(6,207)

(8,160)

(13,487)

(18,676)

Net Interest

(1,277)

(1,006)

(699)

(669)

224

(1,673)

Tax

0

0

0

0

0

0

Net Operating Cash Flow

(7,450)

(8,288)

(6,906)

(8,829)

(13,263)

(20,349)

Capex

(31)

(34)

(82)

(48)

(45)

(20)

Acquisitions/disposals

0

0

0

0

0

0

Financing

14,068

2,034

9,055

13,170

290

0

Net Cash Flow

6,587

(6,288)

2,067

4,293

(13,018)

(20,369)

Opening net debt/(cash)

 

 

(1,401)

(7,760)

(1,004)

(3,426)

(6,417)

7,081

HP finance leases initiated

0

0

0

0

0

0

Other

(228)

(468)

354

(1,302)

(480)

0

Closing net debt/(cash)

 

 

(7,760)

(1,004)

(3,426)

(6,417)

7,081

27,449

Lease debt

N/A

1,346

1,258

1,045

900

900

Closing net debt/(cash) inclusive of IFRS 16 lease debt

(7,760)

342

(2,168)

(5,372)

7,981

28,349

Source: Company data, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Pixium Vision and prepared and issued by Edison, in consideration of a fee payable by Pixium Vision. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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.

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.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Pixium Vision and prepared and issued by Edison, in consideration of a fee payable by Pixium Vision. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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.

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.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Pixium Vision

View All

Latest from the Healthcare sector

View All Healthcare content

Research: Metals & Mining

Wheaton Precious Metals — Incorporating Salobo Q222 operating results

Wheaton Precious Metals’ (WPM’s) Q222 results are scheduled for release after the market close in North America on 11 August. This note reduces our forecasts for Q2–Q422 and FY23–24 in light of details about Salobo’s operational performance contained in Vale’s Q2 production and sales update, released on 19 July, and of recent changes in precious metals prices. It also analyses WPM’s sale of its Keno Hill stream for a consideration of US$135m (which we calculate will provide the buyer with an internal rate of return of 3.06%).

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free