Endeavour Mining

CN: EDV

C$2764.6m market cap

C$25.15 last close

Endeavour Mining is an intermediate gold producer, with four mines in Côte d’Ivoire (Agbaou and Ity) and Burkina Faso (Houndé and Karma) and two major development projects (Ity CIL and Kalana) in the highly prospective west African Birimian greenstone belt.

Investment summary

For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with Endeavour Mining. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriate) in accordance with the requirements of the Code.

Consequently we have removed our estimates until the Offer Period ends.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 652.1 201.2 49.3 (6.45) N/A 7.7
2018A 752.0 264.8 70.5 (7.51) N/A 7.5
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Industry outlook

EDV’s exploration programme is intended to extend and maintain near-term production rates into the foreseeable future. In valuing Endeavour, we have opted to discount forecast cash flows back over four years and then to apply an ex-growth multiple to terminal cash-flows consistent with a 10% discount rate, which results in a value for EDV of US$27.58/share. We have recently increased our FY19 earnings forecasts to reflect the higher gold price environment. Q319 results are scheduled for 5 November.

Last updated on 04/12/2019
Share price graph
Balance sheet
Forecast net debt (US$m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 8.4 (6.5) 53.7
Relative* 7.0 (9.0) 37.1
52-week high/low C$28.8/C$16.7
*% relative to local index
Key management
Michael E. Beckett Chairman
Martino De Ciccio VP Strategy & Investor Relations
Sebastien de Montessus President and CEO
Vincent Benoit Executive VP and CFO