Nevsun Resources Ltd. (NYSE MKT:NSU) Q2 2018 Earnings Conference Call - Final Transcript
Jul 27, 2018 • 11:00 am ET
Good morning, ladies and gentlemen. Welcome to Nevsun Resources 2018 Second Quarter Results Conference Call and Webcast. I would now like to turn the call over to David Jan, Investor Relations Manager. Please go ahead, David.
Thank you, operator. Heather Taylor is on maternal leave and I will be looking after you for the next year.
Good morning, everyone, and welcome to the Nevsun Resources 2018 Second Quarter Results Conference Call and Webcast. A news release was issued last night, announcing the Company's financial results for the second quarter of 2018. It is available on our website at nevsun.com and SEDAR, along with our MD&A and financial statements.
(Forward-Looking Cautionary Statements)
All financial numbers referred to today are in US dollars, unless otherwise stated.
Our presenters today are Peter Kukielski, Nevsun's President and CEO; and Ryan MacWilliam, our CFO. Following the conclusion of formal remarks by Peter and Ryan, we will host a question-and-answer session.
I'd now like to turn the call over to Peter. Peter?
Thanks, David. And thanks to everyone for joining us on today's call. The key thing for Nevsun in 2018 is the notion of delivery. That is, delivering on our multipronged strategy of optimizing Bisha, advancing Timok and driving exploration across our portfolio. As we cross the midway point of 2018, I am pleased to say, we've been delivering against all of our key strategic objectives, and we've done so in spite of the fact that for much of 2018, we have been dealing with speculation about the future of the Company.
On that note, let me thank and congratulate our team for remaining focused and disciplined, despite what can be a very large distraction. And let me also take a moment to address the latest developments as they relate to takeover speculation.
Yesterday, Lundin Mining issued a news release announcing a formal unsolicited bid for all the outstanding shares of Nevsun Resources. This follows a long history of Lundin attempting to acquire Timok. Over the last several months, we have received several highly conditional proposals from Lundin. And over that period, our messaging was clear and consistent that a full and fair offer for the entire Company in a structure that made sense for shareholders would be given due consideration by our Board of Directors. Clearly, with this hostile offer, Lundin has chosen a different path. We were surprised by the value they have presented with their formal offer of CAD4.75 in cash for all shares of Nevsun.
This offer is lower than a proposed -- proposal delivered to me and the Board of Directors on July 3, which indicated Lundin was prepared to offer $5 per share for the Company in a combination of cash and Lundin shares with an established miner as a new partner for Bisha. We engaged with their new partner, signing a confidentiality agreement and granted access to a data room, only to be surprised by Lundin's sudden announcement on July 16 to launch a bid on their own. In