Endeavour Mining — Ready to finish strong

Metals & Mining

Endeavour Mining

Ready to finish strong

Q323 results

Metals and mining

20 November 2023

Price	1,648p
Market cap	£4,017m
C$1.3805/US$, US$1.223/£
Net debt (US$m) at end-September 2023, excludes lease liabilities, option premium and restricted cash		472

Shares in issue	246.1m
Free float	81.32%
Code	EDV

Primary exchange	LSE
Secondary exchanges	TSX, US OTC

Share price performance

%	1m	3m	12m
Abs	2.3	6.9	3.8
Rel (local)	4.1	6.5	3.8

52-week high/low

2,184p

1,498p

Business description

Following its acquisitions of SEMAFO and Teranga, Endeavour Mining has become one of the top 10 major gold producers globally, with four mines in Côte d’Ivoire, Burkina Faso and Senegal plus a portfolio of development projects, all in the West African Birimian greenstone belt.

Next events

Tanda-Iguela resource update	Q423
Sabodala-Massawa expansion first production	Q224
Lafigué first production	Q324

Analysts

Thomas Batho	+44 (0)20 3077 5700
Lord Ashbourne	+44 (0)20 3077 5700

mining@edisongroup.com

Edison profile page

Endeavour Mining is a research client of Edison Investment Research Limited

In the wake of Endeavour’s Q323 results we have updated our FY23 estimates. Endeavour remains on track to achieve its production guidance of 1,060–1,135koz at an AISC of US$895–950/oz (792koz produced year-to-date at an AISC of US$974/oz). Endeavour has reaffirmed its performance is still set to be weighted towards H223 as previously guided, with Q323 recording the strongest performance this year (production of 280.8koz) and Q423 on track to beat this (estimated at 324.4koz). Q323 results were driven by impressive production at Houndé, reporting 109koz (cf estimates of 84koz). Following the overperformance at Houndé, Q423 is set to be driven by increasing production at its other assets, namely Sabodala-Massawa and Mana.

Year end	Revenue (US$m)	EBITDA (US$m)	PBT* (US$m)	Operating cash flow per share** (US$)	DPS (c)	Yield (%)
12/21	2,903.8	1,517.3	756.5	4.83	56	2.2
12/22	2,508.1	1,261.3	527.2	4.12	81	4.0
12/23e	2,170.5	1,108.0	530.1	2.63	81	4.0
12/24e	1,921.7	997.0	565.2	3.70	95	4.7

Note: *PBT is normalised, excluding amortisation of acquired intangibles and exceptional items. **Operating cash flow per share is calculated after cash tax paid.

Committed to shareholders

Endeavour has continued with its shareholder returns programme, confirming the payment of a US$100m (US$0.40/share) interim dividend for H123, which on an annualised basis represents US$25m, or 14%, more than the minimum dividend commitment for the year of US$175m. This dividend payment takes total shareholder returns to US$777m since Q121, representing roughly 15% of Endeavour’s current market capitalisation and US$354m more than its minimum commitment during this period.

Valuation: Still beating peers

Using an absolute valuation methodology, whereby we discount back four years of cash flows and then apply a perpetual ex-growth multiple to steady-state terminal cash flows in FY26, our valuation of Endeavour is US$34.90 (C$47.97 or £28.09) per share, using a 10% discount rate. Using a capital asset pricing model (CAPM) derived using a (real) discount rate of 6.34% (based on inflation expectations of 2.4499% derived from US 30-year break-even rates) Endeavour is valued at US$59.31 (C$81.51 or £47.74) per share (cf US$55.79, previously). To these valuations a further US$4.30–7.45/share may be added to reflect the value of Endeavour’s five-year exploration programme (see The second five-year plan, published on 20 October 2021). In the meantime, we note that Endeavour is trading at a discount to its peers on at least 84% of common valuation measures when consensus forecasts are used and 77% if Edison forecasts are used. The average valuation measures of its peers imply a share price for Endeavour of US$24.50 (C$33.83 or £20.04).

Q323 results

As stated throughout the year, Endeavour still expects production from its remaining assets to be weighted towards H223, which has been reaffirmed by Q323 results. It expects to achieve FY23 production of 1,060–1,135koz at an all-in sustaining cost (AISC) of US$895–950/oz. The strong Q323 production figure of 280.8koz was principally the result of better-than-expected output at Houndé, which reported 109koz (cf estimates of 84koz) as stripping activity came to a close at the Kari Pump pit, providing access to higher grades. The increased production at Houndé was somewhat offset by decreases at both Ity and Sabodala-Massawa (owing to lower throughputs and lower average grades). However, our forecasts for Q423 expect production to increase at both these assets, including Mana, which will ultimately drive production in Q423.

Following the divestment of Boungou and Wahgnion, discussed in our last note, Endeavour continues to support the growth of larger, low AISC and longer-life assets such as the Lafigué greenfield project and the Sabodala-Massawa BIOX expansion, which remain on budget and on schedule for start-up in Q224 and Q324 respectively. At the same time Endeavour continues with its exploration efforts, with US$78m of its intended US$80m FY23 budget now spent and it expects to come in slightly over its estimates for FY23.

As a result, we estimate Endeavour’s earnings from mining operations should continue to improve into Q423:

Exhibit 1: Endeavour Mining FY23 forecasts, by quarter

US$000s (unless otherwise indicated)	Implied Q123	Q223	Q323e (prior)	Q323 (actual)	Q423e (prior)	Q423e (current)	FY23e (current)	FY23e (prior)
Houndé production (koz)	46.6	72.1	84.0	109.4	80.0	80.3	308.4	282.6
Karma production (koz)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Ity production (koz)	91.1	85.9	71.0	72.6	73.2	77.4	327.1	321.2
Boungou production (koz)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Mana production (koz)	44.1	31.1	32.0	30.4	70.4	60.2	165.8	177.5
Sabodala-Massawa	61.5	78.6	74.9	68.5	100.9	108.3	317.0	315.9
Wahgnion	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total gold produced (koz)	243.5	268.0	261.7	280.8	324.4	326.3	1,118.3	1,098
Total gold sold (koz)	252.1	269.0	261.7	278.0	324.4	326.3	1,125.1	1,107
Gold price (US$/oz)*	1,892	1,941	1,916	1,898	1,838	1,947	1,922	1,894
Mine level cash costs (US$/oz)**	681	757	726	735	562	674	710	675
Mine level AISC (US$/oz)	899	951	961	927	769	883	915	890
Revenue
– Gold revenue	481,200	524,100	501,409	530,000	596,316	635,214	2,170,514	2,103,025
Cost of sales
– Operating expenses	171,400	201,800	189,907	205,300	182,429	219,835	798,335	745,535
– Royalties	29,700	31,800	30,703	31,900	36,067	37,912	131,312	128,270
Gross profit	280,100	290,500	280,799	292,800	377,820	377,467	1,240,867	1,229,219
Depreciation	(101,900)	(99,500)	(107,783)	(114,400)	(147,209)	(151,585)	(467,385)	(456,393)
Expenses
– Corporate costs	(13,500)	(14,000)	(15,000)	(10,400)	(15,000)	(10,400)	(48,300)	(57,500)
– Impairments/loss on disposals	0	(14,800)	0	0	0	0	(14,800)	(14,800)
– Acquisition etc costs
– Share based compensation	(8,400)	(8,200)	(6,615)	(5,300)	(7,315)	(7,315)	(29,215)	(30,530)
– Exploration costs	(12,500)	(14,500)	(13,000)	(14,900)	(13,000)	(13,500)	(55,400)	(53,000)
Total expenses	(34,400)	(51,500)	(34,615)	(30,600)	(35,315)	(31,215)	(147,715)	(155,830)
Earnings from operations	143,800	139,500	138,401	147,800	195,296	194,667	625,767	616,997
Interest income
Interest expense	(14,900)	(17,800)	(17,094)	(19,100)	(17,883)	(48,950)	(100,750)	(67,677)
Net interest	(14,900)	(17,800)	(17,094)	(19,100)	(17,883)	(48,950)	(100,750)	(67,677)
Loss on financial instruments	(72,000)	31,100	(2,970)	7,200	(654)	(3,960)	(37,660)	(44,524)
Other expenses	(5,100)	2,600		(7,200)			(9,700)	(2,500)
Profit before tax	51,800	155,400	118,337	128,700	176,759	141,757	477,657	502,296
Current income tax	48,200	91,400	38,718	53,500	50,722	50,510	243,610	229,040
Deferred income tax	(11,800)	(37,200)	0	1,600	0	0	(47,400)	-49,000
Total tax	36,400	54,200	38,718	55,100	50,722	50,510	196,210	180,040
Effective tax rate (%)	70.3	34.9	32.7	42.8	28.7	35.6	41.1	35.8
Profit after tax	15,400	101,200	79,619	73,600	126,037	91,247	281,447	322,256
Net profit from discontinued ops.	5,100	(188,600)	0	(400)	0	0	-183,900	(183,500)
Total net and comprehensive income	20,500	(87,400)	79,619	73,200	126,037	91,247	97,547	138,756
Minority interest	17,300	21,900	16,164	13,900	21,001	20,087	73,187	76,366
Minority interest (%)	84.4	(25.1)	20.3	19.0	16.7	22.0	75.0	55.0
Profit attributable to shareholders	3,200	(109,300)	63,455	59,300	105,036	71,161	24,361	62,391

Basic EPS from continuing ops (US$)	(0.008)	0.321	0.257	0.242	0.426	0.289	0.842	0.843
Diluted EPS from continuing ops (US$)	(0.008)	0.321	0.257	0.242	0.426	0.289	0.842	0.843
Basic EPS (US$)	0.013	(0.442)	0.257	0.240	0.426	0.289	0.098	0.099
Diluted EPS (US$)	0.013	(0.442)	0.257	0.240	0.426	0.289	0.098	0.099
Norm. basic EPS from cont. ops (US$)	0.284	0.255	0.269	0.213	0.428	0.305	1.055	1.056
Norm. diluted EPS from cont. ops (US$)	0.284	0.255	0.269	0.213	0.428	0.305	1.055	1.056
Adj net earnings attributable (US$000s)	65,000	53,700	65,822	69,500	105,581	74,249	262,257	262,449
Adj net EPS from continuing ops (US$)	0.263	0.217	0.267	0.281	0.428	0.301	1.062	1.063

Source: Endeavour Mining, Edison Investment Research. Note: *Average realised price (including Sabodala-Massawa stream). **Excludes royalty costs.

Note that Endeavour changed its definition of cash costs in Q420 to include royalties. The decision was made so that Endeavour could be more consistent in reporting in the context of its peer group. For reasons of comparability with past results, however, as well as ease of forecasting (given royalties are reported as a standalone item distinct from operating expenses), we are continuing to present total cash costs excluding royalties.

In the wake of the changes made to our forecasts, a comparison between our quarterly and full-year forecast and consensus forecasts for FY23 adjusted net EPS is as follows:

Exhibit 2: Edison-adjusted net EPS from continuing operations estimates versus consensus FY23 by quarter

(US$/share)	Q123	Q223	Q323	Q423e	Sum Q1–Q423e	FY23e
Edison	0.263	0.217	0.281	0.301	1.062	1.063
Mean consensus forecast	0.263	0.217	0.281	0.444	1.205	1.054
High consensus forecast	0.263	0.217	0.281	0.580	1.341	1.360
Low consensus forecast	0.263	0.217	0.281	0.300	1.061	0.548
Number of consensus estimates	N/A	N/A	N/A	6	N/A	11

Source: Refinitiv, Edison Investment Research. Note: Consensus at 12 November 2023

Readers should note the discrepancy between the ‘FY23e’ column and the ‘Sum Q1-Q423e’ column in the exhibit above, which strongly suggests that the analysts who are publishing quarterly forecasts are not the same as the ones who are publishing annual forecasts.

Valuation

Endeavour is a multi-asset company that has shown a willingness and desire to trade assets to maintain production, reduce costs and maximise returns to shareholders (eg the sale of Youga in FY16, Nzema in FY17, Tabakoto in FY18, Agbaou in FY20, Karma in FY22 and Boungou and Wahgnion in FY23, and the acquisition of SEMAFO in FY20 and Teranga in FY21). Historically, rather than our customary method of discounting maximum potential dividends over the life of operations back to FY23, for Endeavour we have opted to discount four years of forecast cash flows in FY23–26 back to FY23, then apply an ex-growth terminal multiple of 10x (consistent with using a standardised discount rate of 10%) to forecast cash flows in that year (ie FY26). We would normally exclude exploration expenditure from such a calculation on the basis that it is an investment. In the case of Endeavour, however, we include it because it is a critical component of the company’s ability to continually expand and extend the lives of its mines.

We have updated our FY26 cash flow estimate to US$4.31/share (cf US$4.08/share previously), which implies a terminal valuation of Endeavour at end-FY26 of US$43.0/share, calculated using a discount rate of 10%. With forecast intervening cash flows, this terminal valuation then discounts back to a present valuation of US$34.90/share (cf US$33.52/share, previously) at the start of FY23, as shown in Exhibit 3.

Exhibit 3: Endeavour forecast valuation and cash flow per share, FY23–26e (US$/share)

Source: Edison Investment Research

Now that Endeavour is one of the world’s most important producers of gold, we believe it can increasingly attract lower-cost finance, which leads us to also consider a CAPM-derived valuation. Long-term nominal equity returns have been 9% and 30-year break-evens indicate an inflation rate of 2.4499% (source Bloomberg, 13 November 2023) versus 2.4197% previously. These two measures imply an expected real equity return of 6.34% (1.09/1.024499) and applying this to our forecast cash flows would imply a terminal valuation for Endeavour of US$67.97/share (US$63.46/share previously) and a current valuation of US$59.31/share (US$55.79/share previously).

Endeavour peer valuation

Endeavour’s valuation on a series of commonly used measures relative to a selection of gold mining majors (the ranks of which it has joined since its takeover of SEMAFO and Teranga) is as follows:

Exhibit 4: Endeavour’s valuation relative to peers

Company	Ticker	Price/cash flow (x)			EV/EBITDA (x)			Yield (%)
Company	Ticker	Year 1	Year 2	Year 3	Year 1	Year 2	Year 3	Year 1	Year 2	Year 3
Endeavour (Edison)	EDV	7.7	5.3	4.3	4.4	4.5	3.7	4.0	4.8	7.3
Endeavour (consensus)	EDV	6.4	5.0	4.7	5.4	4.9	5.0	3.9	3.9	4.7
Majors
Barrick	ABX	6.8	5.7	5.5	7.5	6.2	5.8	2.7	3.2	3.9
Newmont	NEM	8.1	6.5	6.3	10.7	6.5	6.4	4.8	4.5	4.6
Kinross	K	4.3	4.6	5.0	4.9	5.2	5.6	2.3	2.3	2.3
Agnico-Eagle	AEM	8.9	8.4	8.9	7.3	7.4	8.0	3.4	3.4	2.8
Eldorado	ELD	5.7	5.3	4.7	5.1	4.5	4.1	0.0	0.0	0.0
Average		6.8	6.1	6.1	7.1	6.0	6.0	2.6	2.7	2.7
Implied Endeavour share price (US$)		17.70	15.96	15.88	30.19	25.04	25.10	30.68	30.09	29.89
Implied Endeavour share price (C$)		24.44	22.03	21.92	41.68	34.57	34.65	42.35	41.53	41.26

Source: Edison Investment Research, Refinitiv. Note: Prices as at 13 November 2023.

Of note is that, without exception, Endeavour’s valuation is lower than the averages of all nine of the measures shown in Exhibit 4 when consensus forecasts are used and eight of the same nine measures when Edison’s forecasts are used. On an individual basis, it is lower than its senior gold mining peers on at least 38 out of 45 (84%) valuation measures if Edison forecasts are used and 35 out of 45 (77%) valuation measures if consensus forecasts are used. Reverse engineered, the average valuation measures of its peers suggest a share price for Endeavour of US$24.50 (C$33.83 or £20.04), implying the share price is at a 17.8% discount. The current London Stock Exchange share price is £16.48, equivalent to US$20.16 at an exchange rate of US$1.2230/£.

Exhibit 5: Financial summary

	US$'000s	2019	2020	2021	2022	2023e	2024e	2025e
Year end 31 December		IFRS	IFRS	IFRS	IFRS	IFRS	IFRS	IFRS
PROFIT & LOSS
Revenue		1,362,121	1,847,894	2,903,756	2,508,100	2,170,514	1,921,651	2,313,963
Cost of Sales		(884,869)	(1,061,891)	(1,675,393)	(1,607,100)	(1,077,362)	(924,633)	(1,071,077)
Gross Profit		477,252	786,003	1,228,363	901,000	1,093,152	997,018	1,242,885
EBITDA		618,443	910,295	1,517,263	1,261,300	1,107,952	997,018	1,242,885
Operating Profit (before amort. and except.)		281,400	546,072	859,409	645,300	640,567	603,729	798,798
Exceptionals		(199,159)	(201,532)	(266,000)	(382,600)	(52,460)	0	0
Other		(9,392)	8,886	(32,263)	(51,900)	(9,700)	0	0
Operating Profit		72,849	353,426	561,146	210,800	578,407	603,729	798,798
Net Interest		(51,607)	(53,774)	(70,623)	(66,200)	(100,750)	(38,545)	(32,906)
Profit Before Tax (norm)		220,401	501,184	756,523	527,200	530,117	565,184	765,892
Profit Before Tax (FRS 3)		21,242	299,652	490,523	144,600	477,657	565,184	765,892
Tax		(97,253)	(158,466)	(178,253)	(175,600)	(196,210)	(113,588)	(146,523)
Profit After Tax (norm)		123,148	342,718	578,270	351,600	333,907	451,596	619,369
Profit After Tax (FRS 3)		(76,011)	141,186	312,270	(31,000)	281,447	451,596	619,369
Net loss from discontinued operations		(4,394)	0	0	9,100	(183,900)	0	0
Minority interests		33,126	44,719	64,486	35,400	73,187	68,610	106,829
Net profit		(80,405)	141,186	312,270	(21,900)	97,547	451,596	619,369
Net attrib. to shareholders contg. businesses (norm)		90,022	297,998	513,784	316,200	260,721	382,986	512,539
Net attrib.to shareholders contg. businesses		(109,137)	96,466	247,784	(66,400)	208,261	382,986	512,539

Average Number of Shares Outstanding (m)		157.4	160.8	250.7	247.8	247.0	247.3	247.3
EPS - normalised (c)		57.20	185.34	204.95	127.59	105.56	154.84	207.22
EPS - normalised fully diluted (c)		56.95	181.51	203.21	125.32	104.08	152.67	204.32
EPS - (IFRS) ($)		(0.72)	0.60	0.99	(0.23)	0.10	1.55	2.07
Dividend per share (c)		0	37	56	81	81	95	137

Gross Margin (%)		35.0	42.5	42.3	35.9	50.4	51.9	53.7
EBITDA Margin (%)		45.4	49.3	52.3	50.3	51.0	51.9	53.7
Operating Margin (before GW and except.) (%)		20.7	29.6	29.6	25.7	29.5	31.4	34.5

BALANCE SHEET
Fixed Assets		2,330,033	5,093,409	5,404,900	4,968,300	5,328,390	5,479,102	5,386,681
Intangible Assets		5,498	24,851	10,000	0	0	0	0
Tangible Assets		2,254,476	3,968,746	4,980,200	4,517,000	4,877,090	5,097,802	5,005,381
Other**		70,059	1,099,812	414,700	451,300	451,300	381,300	381,300
Current Assets		652,871	1,168,382	1,366,000	1,446,400	1,081,158	1,085,987	1,445,658
Stocks		266,451	305,075	311,300	320,700	271,314	240,206	289,245
Debtors		83,836	104,545	139,900	163,400	234,898	214,444	246,689
Cash		288,186	751,563	906,200	951,100	516,346	572,737	851,124
Other		14,398	7,199	8,600	11,200	58,600	58,600	58,600
Current Liabilities		(354,931)	(661,171)	(567,100)	(1,045,600)	(724,078)	(704,388)	(762,966)
Creditors		(312,427)	(612,862)	(552,700)	(690,800)	(699,278)	(679,588)	(738,166)
Short term borrowings		(42,504)	(48,309)	(14,400)	(354,800)	(24,800)	(24,800)	(24,800)
Long Term Liabilities		(963,736)	(1,647,799)	(1,818,100)	(1,281,800)	(1,595,500)	(1,595,500)	(1,595,500)
Long term borrowings		(770,902)	(1,026,337)	(878,600)	(517,000)	(877,000)	(877,000)	(877,000)
Other long term liabilities		(192,834)	(621,462)	(939,500)	(764,800)	(718,500)	(718,500)	(718,500)
Net Assets		1,664,237	3,952,821	4,385,700	4,087,300	4,089,970	4,265,201	4,473,873

CASH FLOW
Operating Cash Flow		628,617	1,046,370	1,415,306	1,211,200	892,273	1,028,890	1,220,180
Net Interest		(35,413)	(53,774)	(26,900)	(66,200)	(100,750)	(38,545)	(32,906)
Tax		(109,494)	(186,332)	(205,573)	(189,200)	(243,610)	(113,588)	(146,523)
Capex		(401,227)	(335,599)	(587,496)	(534,300)	(888,575)	(614,000)	(351,667)
Acquisitions/disposals		3,654	(19,000)	(4,700)	12,900	145,000	70,000	0
Financing		2,402	100,000	(89,400)	(101,200)	(19,938)	0	0
Dividends		(6,154)	(88,288)	(159,800)	(223,800)	(249,154)	(276,365)	(410,696)
Net Cash Flow		82,385	463,377	341,437	109,400	(464,754)	56,391	278,387
Opening net debt/(cash)*		518,607	525,220	323,083	(13,200)	(79,300)	385,454	329,063
Other		(88,998)	(261,240)	(5,154)	(43,300)	0	0	0
Closing net debt/(cash)*		525,220	323,083	(13,200)	(79,300)	385,454	329,063	50,676

Source: Company sources, Edison Investment Research. Note: Presented on a pro forma basis with SEMAFO fully consolidated (income statement, balance sheet and cash flow statement) from FY18 balance sheet and Teranga from FY20 balance sheet. EPS normalised from FY18 to reflect continuing business only. *Excludes restricted cash. **Includes restricted cash and investments.

General disclaimer and copyright

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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.

Australia

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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.

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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.

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London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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