Endeavour Mining (LSE: EDV)

Currency in GBP

Last close As at 25/01/2023

GBP19.36

−1.00 (−0.05%)

Market capitalisation

GBP4,766m

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

Endeavour’s Q322 results put it on track to achieve its guidance for the year of 1,315–1,400koz of production at an AISC of US$880–930/oz. It has added US$340m in value to Fetekro and Kalana via updated pre-feasibility studies (100% basis) and has announced a comprehensive shareholder returns programme. Exploration in FY16–FY21 yielded 11.4Moz in indicated gold resources and a second five-year plan aims to discover a further 15–20Moz by FY26 (of which 1.1Moz at Tanda-Iguela represents an excellent start). An expansion at Sabadola-Massawaa and the launch of Lafigue (NPV US$477m) are also now underway. Our most recent analysis of Endeavour valued it at US$35.46/share.

Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director, Energy & Resources

Key Management

  • Jack Garman

    IR manager

  • Joanna Pearson

    CFO

  • Martino De Ciccio

    VP Strategy & Investor Relations

  • Sebastien de Montessus

    President and CEO

  • Srinivasan Venkatakrishnan

    Chairman

Balance Sheet

Forecast net cash (US$m)

161.2

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 9.3 25.9 18.8
Relative 5.2 13.9 15.9
52 week high/low 2090.0p/1461.0p

Financials

Only a year into a five-year exploration programme, Endeavour achieved one of its primary objectives in the form of a standalone greenfield discovery at its Tanda-Iguela property in Côte d’Ivoire, where it has successfully delineated 1.1Moz indicated and 1.9Moz inferred resources in less than a year. Almost simultaneously, it announced a 0.75Moz increase in measured & indicated (M&I) resources at Ity (excluding 2022 mine depletion), putting it on track to meet its total exploration target of 15.0–20.0Moz by 2025. Updates for its remaining assets are anticipated in early 2023.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2020A 1847.9 910.3 501.2 181.51 13.0 3.6
2021A 2903.8 1517.3 756.5 203.21 11.6 4.2
2022E 2459.8 1263.2 570.0 106.00 22.2 4.4
2023E 2219.0 1223.2 763.3 181.58 13.0 5.1

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