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Currency in GBP
Last close As at 30/03/2023
GBP19.17
▲ 34.00 (1.81%)
Market capitalisation
GBP4,357m
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 Q422 preliminary results confirmed 10 consecutive years of achieving guidance, with FY22 production totalling 1,400koz and AISC roughly US$928/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. FY16–FY21 exploration yielded 11.4Moz indicated gold resources, a second five-year plan aims to discover a further 15–20Moz by FY26 (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$35.07/share.
Metals & Mining
Metals & Mining
Metals & Mining
Director, Energy & Resources
Jack Garman
IR manager
Joanna Pearson
CFO
Martino De Ciccio
VP Strategy & Investor Relations
Sebastien de Montessus
President and CEO
Srinivasan Venkatakrishnan
Chairman
Forecast net cash (US$m)
115.5
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 13.0 | 8.4 | 2.8 |
| Relative | 18.1 | 8.1 | 5.1 |
| 52 week high/low | 2068.0p/1461.0p |
Endeavour closed a strong FY22 with production of 1,400koz, achieving the top end of the guided 1,315–1,400koz range, while all-in sustaining costs (AISC) amounted to c US$928/oz, within the guided range of $880–930/oz. This marks the 10th consecutive year in which the company has either achieved or exceeded both its production and AISC cost guidance. In light of its positive performance, Endeavour boasted adjusted net earnings of US$65m, or US$0.26/share in Q422, totalling US$405m, or US$1.63/share for FY22. The company looks set to reinvest in organic growth throughout FY23 via the Sabodala-Massawa expansion and Lafigué greenfield project construction, while committing to various exploration projects. FY22 results follow recent announcements about FY23 production guidance, which is broadly comparable to FY22 at 1,325–1,425koz, AISC of US$940–995/oz and H222 dividend payments of US$100m confirming a total dividend of $200m in FY22, 33% above its minimum committed level of US$150m.
| Y/E Dec | Revenue (US$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 | 11.4 | 4.1 |
| 2022A | 2508.1 | 1261.3 | 527.2 | 125.44 | 18.5 | 4.7 |
| 2023E | 2493.8 | 1235.0 | 545.4 | 127.45 | 18.2 | 4.5 |
| 2024E | 2235.7 | 1228.0 | 708.5 | 187.85 | 12.3 | 4.7 |
