Following its acquisitions of SEMAFO and Teranga, Endeavour Mining (EDV) 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.
In line with EDV’s strategy, the recent divestment of Boungou and Wahgnion supports growth of larger, lower AISC and longer life assets, such as the Lafigué greenfield project and the Sabodala-Massawa BIOX expansion. EDV aims to reinvest in organic growth throughout FY23 via the BIOX expansion (NPV US$861m) and Lafigué greenfield projects (NPV US$477m). After discovering 11.4Moz indicated gold resources during its FY16–21 exploration plan, the company has launched a second plan to find a further 15–20Moz by FY26, focusing on the new Tanda-Iguela prospect. Our most recent analysis valued Endeavour at US$36.73/share.
Metals & Mining |
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Jack Garman
IR manager
Joanna Pearson
CFO
Martino De Ciccio
VP Strategy & Investor Relations
Sebastien de Montessus
President and CEO
Srinivasan Venkatakrishnan
Chairman
Forecast net debt (US$m)
N/A
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 3.9 | (14.6) | (2.2) |
Relative | (1.5) | (15.8) | (6.8) |
52 week high/low | 2184.0p/1461.0p |
Following the divestment of non-core assets Boungou and Wahgnion, EDV has updated its FY23 guidance from 1,325–1,425koz to 1,060–1,135koz, with all-in sustaining cost (AISC) improving to US$895–950/oz (cf US$940–995/oz, previously). Q223 financial results suggest its performance is set to be weighted towards H223, as previously guided. As such, EDV remains on track to achieve FY23 guidance.
Y/E Dec | Revenue (US$m) | EBITDA (US$m) | PBT (US$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 2903.8 | 1517.3 | 756.5 | 203.21 | 10.2 | 3.7 |
2022A | 2508.1 | 1261.3 | 527.2 | 125.32 | 16.6 | 4.3 |
2023E | 2709.7 | 1378.4 | 668.7 | 161.42 | 12.9 | 4.0 |
2024E | 2235.7 | 1228.0 | 704.6 | 185.95 | 11.2 | 4.2 |