Ongoing metallurgical process development
On 6 April, Lepidico announced that it had lodged a provisional patent application for the production of nominal battery grade specification lithium carbonate from a LOH-Max intermediate crude lithium hydroxide via the sequestration of carbon dioxide from the upstream L-Max process, followed by refining. The new process is designed so that it can be integrated with either L-Max and/or LOH-Max technology or, potentially, in the chemical conversion of spodumene concentrates. The significance of the process is that it:
■
materially reduces chemical plant carbon dioxide emissions by consuming c 25% of upstream emissions (or 0.6t CO2 per tonne of lithium carbonate produced) and recycling them into lithium carbonate production; and
■
creates the opportunity to produce either lithium hydroxide or lithium carbonate – depending on market conditions – from the same chemical conversion facility.
Apart from the need for carbon dioxide reticulation and gas sparges, both process flowsheets use similar equipment and it has been estimated that it will cost no more than US$1m in capital expenditure to retrofit the proposed Phase 1 chemical plant in Abu Dhabi with the required infrastructure to achieve this functionality from production year 2 of the project. In the meantime, Lepidico perceives that lower CO2 emissions from a process that is already relatively low in emissions will provide it with a competitive advantage in tendering to supply lithium chemicals to battery manufacturers. To this end, two further alternatives to minimise chemical plant CO2 emissions are being evaluated, namely:
■
the caustic scrubbing of surplus CO2 to produce sodium carbonate/bicarbonate (which is a fairly common industrial chemical used, among other applications, in conventional spodumene conversion); and
■
compression of the majority of CO2 emitted, with the surplus being directed to industrial use (NB the global commercial CO2 market was estimated to amount to 230Mtpa, or US$7.9bn, in 2020).
Concurrent with its technical and strategic announcements, Lepidico announced on 19 April that it has successfully raised A$2.925m (effectively) via the issue of 134.0m shares to Acuity Capital under the terms of the Controlled Placement Agreement (CPA) already in place between the two since December 2019. The shares had a deemed price of A$0.0218 representing an 8.0% discount to the 15-day volume-weighted average price immediately prior to their issuance. This issue reduces the number of collateral shares already issued to Acuity, but which Acuity would otherwise be required to return to Lepidico upon termination of the CPA, to 96.0m (from 230.0m, previously).
In the aftermath of this issue, we calculate that Lepidico has 5,091.9m shares in issue excluding the 96.0m returnable shares, deemed to be effectively ‘in Treasury’, and 5,187.9m including them. Given their returnable nature, Edison’s valuation of Lepidico below is conducted on the basis of a net 5,091.9m shares being in issue, currently. The balance may be assumed to be a constituent part of the A$27.5m equity fund-raising that we expect to be conducted by Lepidico (now assumed to be in the coming FY22 financial year) in order to achieve a peak leverage (net debt/[net debt+equity]) ratio of 66.0% on its Phase 1 Plant project in mid-FY23.
Project
Lepidico’s DFS (see our note, Developing to the (L-)Max, published on 29 May 2020) calculated a project NPV8 for the integrated Karibib mining and chemical plant operation of US$221m, or A$284m (5.6c/share on the enlarged share base) at the current foreign exchange rate of A$1.2831/US$ (cf A$1.3511/US$ at the time of our last note in December 2020).
In our report Gold stars and black holes, we calculated a mean enterprise value (EV) for companies with projects at the definitive feasibility study (DFS) stage of development of 30.9% of project net present value (NPV) (ranging up to 133.5%). This alone would imply an immediate valuation for Lepidico of 1.7c/share, ranging up to 7.4c/share.
Company
Our valuation of Lepidico varies from our value of the integrated Karibib mining and chemical plant project in that it takes into account Lepidico’s 80% interest in the Namibian mine (but 100% of the Abu Dhabi chemical plant), which will give rise to both a tax paying position in Namibia and a minority interest in the profits generated from mining operations. It also assumes ongoing corporate costs in the order of A$3.1m pa. Hitherto, our company model has assumed that Lepidico will raise this equity at a price of 2.9c/share (as set out in our report Valuation update pending feasibility study, published on 6 April 2020). This price is at a 26.1% premium to the current share price of 2.3c. However, given that Lepidico’s shares have appreciated by 283.3% from their level of 0.6c in May 2020 and by 130.0% from their level of 1.0c in December 2020, we believe that a near-term share price of 2.9c is achievable, especially in the event of the successful conclusion of additional offtake negotiations and/or US DFC debt funding on preferential terms (see our note Enter the US government, published on 5 November 2020). In addition, management has indicated that it would be unlikely to commit to raising equity at much below this price. Hence, we continue to show the results of our analysis on this basis. However, we also show the results of the analysis with equity raisings conducted at a series of different prices in the ‘Future equity funding price’ section of the note, below.
In our last note on the company (see Convertible bond acquired with DLI fully retired, published 8 December 2020), we calculated a value for Lepidico’s shares of 4.65c plus 0.26c for the value of an envisaged loan to the minority shareholders in the upstream Namibian operation to give a total valuation for the company of 4.91c/share. We have now updated our valuation to take account of the following in our financial model:
■
interim results to end-December 2020;
■
an updated current and future FX rate of A$1.2831/US$ (cf A$1.3511/US$ previously and representing a 5.3% appreciation in the value of the Australian dollar relative to the US dollar); and
■
134.0m new, additional shares issued in FY21 with the balance of equity funding to now occur in FY22 (cf FY21 previously) in order to achieve a maximum peak leverage (net debt/[net debt+equity]) ratio of 66.0% in mid-FY23.
In the wake of these changes, our (discounted) valuation of Lepidico’s future (maximum potential) dividend stream to shareholders remains largely unchanged at 4.48c/share, as shown in the graph below:
Exhibit 3: Edison estimate of future Lepidico EPS and (maximum potential) DPS
|
|
Source: Edison Investment Research
|
To this valuation of 4.48c/share should then be added the value of Lepidico’s envisaged future loan to the minority shareholders in the Namibian mining and concentrating operation, which we estimate to be 0.29c/share to result in a total value for Lepidico’s shares of 4.76c/share (cf 4.91c/share previously), based solely on its Phase 1 project.
Future equity funding price
Our financial model assumes that Lepidico will raise A$27.5m in FY22 (cf A$37.8m in FY21 previously) at a share price of 2.9c in order to achieve an (unchanged) future, maximum net debt:equity ratio of 66:34. Exhibit 4 demonstrates the sensitivity of our valuation to variations in this price:
Exhibit 4: Lepidico valuation sensitivity to future equity funding price (Australian cents per share)
Equity funding price |
1.50 |
1.75 |
2.00 |
2.30 |
2.50 |
2.90 |
3.00 |
3.50 |
4.00 |
4.50 |
5.00 |
5.09 |
Lepidico valuation |
4.19 |
4.34 |
4.47 |
4.59 |
4.65 |
4.76 |
4.79 |
4.89 |
4.96 |
5.03 |
5.08 |
5.09 |
Source: Edison Investment Research
Exhibit 5: Financial summary
Accounts: IFRS, year end: June: A$000s |
|
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021e |
2022e |
Income Statement |
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
9 |
116 |
127 |
171 |
2 |
47 |
4,084 |
0 |
Cost of sales |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
(21,726) |
Gross profit |
|
|
9 |
116 |
127 |
171 |
2 |
47 |
4,084 |
(21,726) |
SG&A (expenses) |
|
|
(455) |
(617) |
(912) |
(5,284) |
(4,006) |
(4,904) |
(2,976) |
(3,146) |
Other income/(expense) |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Exceptionals and adjustments |
|
|
(16) |
(415) |
(878) |
(2,171) |
(1,150) |
(2,740) |
(338) |
0 |
Depreciation and amortisation |
|
|
(5) |
(6) |
(6) |
(6) |
(8) |
(1,208) |
(1,154) |
(1,154) |
Reported EBIT |
|
|
(467) |
(923) |
(1,670) |
(7,290) |
(5,162) |
(8,805) |
(383) |
(26,026) |
Finance income/(expense) |
|
|
(18) |
(5) |
128 |
70 |
57 |
17 |
0 |
26 |
Other income/(expense) |
|
|
(559) |
(448) |
(3,815) |
0 |
0 |
0 |
0 |
0 |
Exceptionals and adjustments |
|
|
0 |
(888) |
0 |
0 |
0 |
(2,026) |
0 |
0 |
Reported PBT |
|
|
(1,044) |
(2,263) |
(5,357) |
(7,220) |
(5,105) |
(10,814) |
(383) |
(26,001) |
Income tax expense (includes exceptionals) |
|
|
0 |
0 |
0 |
0 |
0 |
696 |
151 |
0 |
Reported net income |
|
|
(1,044) |
(2,263) |
(5,357) |
(7,220) |
(5,105) |
(10,118) |
(232) |
(26,001) |
Basic average number of shares, m |
|
|
178 |
465 |
1,802 |
2,624 |
3,272 |
4,568 |
5,024 |
5,566 |
Basic EPS (c) |
|
|
(0.0) |
(0.0) |
(0.0) |
(0.0) |
(0.0) |
(0.0) |
(0.0) |
(0.0) |
|
|
|
|
|
|
|
|
|
|
|
Balance sheet |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
9 |
4 |
8 |
27 |
20 |
1,904 |
1,952 |
44,791 |
Goodwill |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Intangible assets |
|
|
0 |
16,204 |
16,698 |
19,027 |
22,925 |
23,870 |
22,627 |
22,627 |
Other non-current assets |
|
|
1,485 |
715 |
1,620 |
730 |
27,469 |
42,798 |
42,798 |
42,798 |
Total non-current assets |
|
|
1,494 |
16,922 |
18,326 |
19,783 |
50,414 |
68,573 |
67,377 |
110,216 |
Cash and equivalents |
|
|
53 |
650 |
3,307 |
4,860 |
13,660 |
4,793 |
5,213 |
5,213 |
Inventories |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Trade and other receivables |
|
|
4 |
3,886 |
706 |
712 |
1,869 |
1,767 |
227 |
6,338 |
Other current assets |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Total current assets |
|
|
57 |
4,537 |
4,013 |
5,572 |
15,529 |
6,560 |
5,440 |
11,551 |
Non-current loans and borrowings |
|
|
0 |
0 |
0 |
0 |
3,276 |
5,215 |
39 |
45,504 |
Other non-current liabilities |
|
|
0 |
0 |
0 |
0 |
0 |
10,055 |
10,055 |
10,055 |
Total non-current liabilities |
|
|
0 |
0 |
0 |
0 |
3,276 |
15,271 |
10,094 |
55,559 |
Trade and other payables |
|
|
105 |
614 |
1,663 |
804 |
10,940 |
565 |
396 |
2,404 |
Current loans and borrowings |
|
|
115 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Other current liabilities |
|
|
40 |
33 |
46 |
51 |
86 |
108 |
108 |
108 |
Total current liabilities |
|
|
260 |
647 |
1,709 |
856 |
11,026 |
672 |
503 |
2,511 |
Equity attributable to company |
|
|
1,292 |
20,812 |
20,630 |
24,500 |
53,252 |
52,404 |
55,533 |
57,010 |
Non-controlling interest |
|
|
0 |
0 |
0 |
0 |
(1,610) |
6,785 |
6,687 |
6,687 |
|
|
|
|
|
|
|
|
|
|
|
Cashflow statement |
|
|
|
|
|
|
|
|
|
|
Profit for the year |
|
|
(1,044) |
(2,263) |
(5,357) |
(7,220) |
(5,105) |
(10,118) |
(232) |
(26,001) |
Taxation expenses |
|
|
0 |
0 |
0 |
0 |
0 |
(696) |
(151) |
0 |
Depreciation and amortisation |
|
|
5 |
6 |
6 |
6 |
8 |
1,208 |
1,154 |
1,154 |
Share based payments |
|
|
450 |
40 |
1,736 |
2,138 |
520 |
1,027 |
338 |
0 |
Other adjustments |
|
|
(451) |
1,036 |
(162) |
2,066 |
664 |
4,716 |
0 |
0 |
Movements in working capital |
|
|
(10) |
132 |
133 |
(28) |
410 |
(1,509) |
1,371 |
(4,103) |
Interest paid / received |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Income taxes paid |
|
|
0 |
0 |
0 |
0 |
0 |
696 |
151 |
0 |
Cash from operations (CFO) |
|
|
(1,050) |
(1,049) |
(3,644) |
(3,038) |
(3,504) |
(4,676) |
2,631 |
(28,949) |
Capex |
|
|
(9) |
(63) |
(861) |
(3,057) |
(6,251) |
(7,452) |
(1,203) |
(43,993) |
Acquisitions & disposals net |
|
|
0 |
32 |
122 |
110 |
0 |
416 |
1,244 |
0 |
Other investing activities |
|
|
(563) |
(80) |
0 |
0 |
0 |
0 |
0 |
0 |
Cash used in investing activities (CFIA) |
|
|
(572) |
(111) |
(739) |
(2,947) |
(6,251) |
(7,036) |
41 |
(43,993) |
Net proceeds from issue of shares |
|
|
1,505 |
1,872 |
7,040 |
7,555 |
18,462 |
3,523 |
2,925 |
27,477 |
Movements in debt |
|
|
100 |
(115) |
0 |
0 |
0 |
0 |
(5,176) |
45,465 |
Other financing activities |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Cash from financing activities (CFF) |
|
|
1,605 |
1,757 |
7,040 |
7,555 |
18,462 |
3,523 |
(2,251) |
72,942 |
Increase/(decrease) in cash and equivalents |
|
|
(18) |
597 |
2,657 |
1,570 |
8,707 |
(8,190) |
420 |
0 |
Currency translation differences and other |
|
|
0 |
0 |
0 |
(17) |
93 |
(678) |
0 |
0 |
Cash and equivalents at end of period |
|
|
53 |
650 |
3,307 |
4,860 |
13,660 |
4,793 |
5,213 |
5,213 |
Net (debt) cash |
|
|
(61) |
650 |
3,307 |
4,860 |
10,385 |
(422) |
5,174 |
(40,291) |
Movement in net (debt) cash over period |
|
|
(61) |
711 |
2,657 |
1,553 |
5,525 |
(10,807) |
5,597 |
(45,465) |
Source: Company sources, Edison Investment Research
General disclaimer and copyright This report has been commissioned by Lepidico and prepared and issued by Edison, in consideration of a fee payable by Lepidico. Edison Investment Research standard fees are £49,500 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 2021 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 Lepidico and prepared and issued by Edison, in consideration of a fee payable by Lepidico. Edison Investment Research standard fees are £49,500 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 2021 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 |
|