gold water

Endeavour Mining

CN: EDV

Market CapC$7076m

Last Close C$28.75

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

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Investment summary

Endeavour will announce its Q321 results on the morning of 11 November and, post quarter end, we are largely reiterating our forecasts for Q321, with the exception of a minute adjustment to the gold price (from US$1,792/oz to US$1,790/oz – see Exhibit 5). In the meantime, Endeavour has announced an ambitious five-year exploration programme to discover 15.0–20.0Moz in the indicated category of resources, while also refinancing its credit lines.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 1362.1 618.4 220.4 56.95 41.0 5.8
2020A 1847.9 910.3 501.2 181.51 12.9 3.6
2021E 2718.8 1370.3 707.0 166.56 14.0 5.3
2022E 2495.1 1417.0 881.2 234.78 9.9 4.2
Industry outlook

Exploration has yielded 84% of a five-year target of 10–15Moz Au after four years, which has already increased medium-term production levels at Ity and Hounde to 0.5Moz pa (combined) until 2028. It is hedge-free, has announced a progressive minimum dividend policy, added US$342m in value (100% basis) to Fekekro and Kalana via updated PFSs and also announced a share buyback programme. With Teranga’s assets now fully integrated, we value Endeavour at US$35.46/share and potentially as high as US$55.59/share.

Last updated on 14/06/2021
Content on Endeavour Mining
Endeavour Mining – The second five-year plan
Metals & mining | Update | 20 October 2021
gold flake
Endeavour Mining – Picking up the crown
Metals & mining | Update | 14 June 2021
gold flake
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net debt (US$m) 131.1
Forecast gearing ratio (%) 3
Price performance
%
1m
3m
12m
Actual 3.6 (0.7) (15.6)
Relative* 3.5 (6.0) (33.0)
52-week high/low C$38.9/C$23.6
*% relative to local index
Key management
Michael E. Beckett Chairman
Louis Irvine CFO
Martino De Ciccio VP Strategy & Investor Relations
Sebastien de Montessus President and CEO