gold flake

A strong opening

Endeavour Mining 17 May 2022 Update
Download PDF

Endeavour Mining

A strong opening

Q122 results

Metals & mining

17 May 2022

Price

1,853p

Market cap

£4,595m

C$1.2851/US$, US$1.2322/£

Net cash (US$m) at end-March 2021, excludes lease liabilities, option premium and restricted cash

182.4

Shares in issue

248.0m

Free float

75.2%

Code

EDV

Primary exchange

LSE

Secondary exchange

TSX, USOTC

Share price performance

%

1m

3m

12m

Abs

(9.0)

3.2

N/A

Rel (local)

(6.5)

6.5

N/A

52-week high/low

2,100p

1,510p

Business description

Following its acquisitions of SEMAFO and Teranga, Endeavour Mining 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.

Next events

Sustainability report

Q222

Lafigue DFS

Mid-2022

Sabodala-Massawa Phase 2 construction launch

Q222

Wona underground production

Q322

Analyst

Lord Ashbourne

+44 (0)20 3077 5724

Endeavour Mining is a research client of Edison Investment Research Limited

Endeavour’s Q122 adjusted net EPS from continuing operations were within 4% of our prior estimate, at US$0.49/share, with gold sold exceeding our forecasts by 7%, led by outperformance at the company’s flagship assets, Hounde, Ity and Sabodala-Massawa. In the wake of these first quarter results, we have revised our earnings estimates for the company – in this case downwards (see Exhibit 4), albeit the reductions reflect non-operational issues such as 1) a downward revision to the gold price, 2) the inclusion of a systematic method for estimating share-based payments on a quarterly basis for the first time and 3) a change in our assumptions regarding interest income. In the aftermath of these changes, however, our forecasts for adjusted net EPS are no more than 9.5% from the market consensus for FY22. By contrast however, our valuation of Endeavour has increased as a result of the inclusion of the Sabodala-Massawa expansion project into our medium- and longer-term cash flow forecasts.

Year end

Revenue (US$m)

EBITDA (US$m)

PBT*
(US$m)

Operating cash flow per share (US$)

DPS
(c)

Yield
(%)

12/20

1,847.9

910.3

501.2

5.35

37

1.6

12/21

2,903.8

1,517.3

756.5

4.83

56

2.5

12/22e

2,543.8

1,360.3

688.6

4.97

62

2.8

12/23e

2,219.0

1,223.2

763.0

3.81

70

3.1

Note: *PBT is normalised, excluding amortisation of acquired intangibles and exceptional items.

Sabodala-Massawa adds US$3 to valuation in FY26

In addition to our short-term forecast revisions, we have now incorporated detailed Sabodala-Massawa expansion project operating parameters into our longer-term forecasts. In this case, inclusion of the Sabodala-Massawa expansion project increases our estimate of cash flows in FY26 to US$4.28/share, which implies a terminal valuation of the company at end-FY26 of US$42.78/share – representing an increase of US$3.11/share relative to our prior terminal valuation of US$39.67/share. This may be compared with Endeavour’s standalone valuation of the project at US$3.47/share (albeit with the caveat that Endeavour used a 5% discount rate in its calculation, rather than the 10% employed by Edison).

Valuation: First stop US$32 (C$41, £26)

Based on the average multiples of its gold major peers, we estimate a value for Endeavour of US$31.52 (C$40.50 or £25.58) per share. By contrast, using an absolute valuation methodology, whereby we discount back five years of cash flows and then apply an ex-growth, ad infinitum multiple to steady-state terminal cash flows in FY26, implies a present valuation for the company of US$35.96 (C$46.21 or £29.18) per share if performed using a standardised discount rate of 10% or US$60.40 (C$77.62 or £49.02) per share if performed using a CAPM-derived (real) discount rate of 6.31%. To these valuations a further US$4.30–7.45/share may be added to reflect the value of Endeavour’s five-year exploration programme (see The second five-year plan, published on 20 October 2021). Otherwise, it is trading at a discount to the average multiples of its peers on at least two-thirds of common valuation measures despite its being the largest premium LSE-listed pure gold producer in the FTSE 100 Index.

Q122 results summary

A summary of Endeavour’s Q122 results relative to both Q421 and our prior expectations is provided in the table below:

Exhibit 1: Endeavour Mining Q122 results cf prior expectations and Q421

US$000s (unless otherwise indicated)

Q421a
(underlying)

Q122e

Q122a

Q122a
(underlying)

Change
(%)

Variance
(%)

Variance
(units)

Houndé production (koz)

77.3

59.2

73.1

73.1

-5.4

23.5

13.9

Agbaou production (koz)

0.0

0.0

0.0

0.0

N/A

N/A

0

Karma production (koz)

20.5

10.3

0.0

10.2

-50.2

-1.0

-0.1

Ity production (koz)

60.0

67.8

72.4

72.4

20.7

6.8

4.6

Boungou production (koz)

34.9

34.4

33.8

33.8

-3.2

-1.7

-0.6

Mana production (koz)

53.8

51.5

52.6

52.6

-2.2

2.1

1.1

Sabodala-Massawa

104.6

89.6

96.3

96.3

-7.9

7.5

6.7

Wahgnion

47.2

30.7

28.9

28.9

-38.8

-5.9

-1.8

Total gold produced (koz)

398.3

343.5

357.1

367.3

-7.8

6.9

23.8

Total gold sold (koz)

391.0

343.5

359.1

369.2

-5.6

7.5

25.7

Gold price (US$/oz)

1,783*

1,878

1,911

1,904*

6.8

1.4

26

Mine level cash costs (US$/oz)**

639

723

609

-1.6

-13.0

-94

-1.6

Mine level AISC (US$/oz)

865

958

809

828

-4.3

-13.6

-130

Revenue

– Gold revenue

697,174

645,064

686,200

703,400

0.9

9.0

58,336

Cost of sales

– Operating expenses

249,921

248,320

217,500

232,200

-7.1

-6.5

-16,120

– Royalties

44,917

40,441

41,000

42,700

-4.9

5.6

2,259

Gross profit

402,336

356,303

427,700

428,500

6.5

20.3

72,197

Depreciation

(201,668)

(156,234)

(152,000)

(153,900)

-23.7

-1.5

2,334

Expenses

– Corporate costs

(20,000)

(8,276)

(14,000)

(14,000)

-30.0

69.2

-5,724

– Impairments

0

0

0

N/A

N/A

0

– Acquisition etc costs

(992)

(200)

-100.0

N/A

0

– Share based compensation

(7,425)

(7,700)

(7,700)

3.7

N/A

-7,700

– Exploration costs

(5,061)

(5,000)

(7,100)

(7,100)

40.3

42.0

-2,100

Total expenses

(33,478)

(13,276)

(29,000)

(28,800)

-14.0

116.9

-15,524

Earnings from operations

167,190

186,793

246,700

245,800

47.0

31.6

59,007

Interest income

Interest expense

(25,392)

3,987

(15,200)

(15,200)

-40.1

-481.2

-19,187

Net interest

(25,392)

3,987

(15,200)

(15,200)

-40.1

-481.2

-19,187

Loss on financial instruments

15,642

(178,800)

-100.0

N/A

0

Other expenses

(2,051)

(2,000)

-100.0

N/A

0

Profit before tax

155,389

190,780

50,700

230,600

48.4

20.9

39,820

Current income tax

39,394

45,965

74,700

77,800

97.5

69.3

31,835

Deferred income tax

(34,000)

0

11,200

11,200

-132.9

N/A

11,200

Total tax

5,394

45,965

85,900

89,000

1,550.0

93.6

43,035

Effective tax rate (%)

3.5

24.1

(169.4)

38.6

1,002.9

60.2

14.5

Profit after tax

149,995

144,815

(35,200)

141,600

-5.6

-2.2

-3,215

Net profit from discontinued ops.

0

0

14,800

N/A

N/A

0

Total net and comprehensive income

149,995

144,815

(20,400)

141,600

-5.6

-2.2

-3,215

Minority interest

(6,559)

18,078

21,800

22,600

-444.6

25.0

4,522

Minority interest (%)

(4.4)

12.5

(106.9)

16.0

-463.6

28.0

3.5

Profit attributable to shareholders

156,554

126,738

(42,200)

119,000

-24.0

-6.1

-7,738

Basic EPS from continuing ops (US$)

0.628

0.510

(0.23)

0.48

-23.6

-5.9

-0.03

Diluted EPS from continuing ops (US$)

0.623

0.506

(0.23)

0.48

-23.0

-5.1

-0.03

Basic EPS (US$)

0.628

0.510

(0.17)

0.48

-23.6

-5.9

-0.03

Diluted EPS (US$)

0.623

0.506

(0.17)

0.48

-23.0

-5.1

-0.03

Norm. basic EPS from cont. ops (US$)

0.569

0.510

0.49

0.48

-15.6

-5.9

-0.03

Norm. diluted EPS from cont. ops (US$)

0.565

0.506

0.49

0.48

-15.0

-5.1

-0.03

Adj net earnings attributable (US$000s)

118,770

126,738

122,300

122,300

3.0

-3.5

-4,438

Adj net EPS from continuing ops (US$)

0.477

0.510

0.49

0.49

2.7

-3.9

-0.02

Source: Endeavour Mining, Edison Investment Research. Note: *Includes Karma stream. **Excludes royalty costs.

Endeavour’s results for the quarter were distorted by an exceptional loss on financial instruments of US$178.8m and the fact that Karma was reclassified as a discontinued operation after its sale in February. For the purposes of like-for-like comparison, therefore, the former has been excluded from the column entitled ‘Q122a (underlying)’ in Exhibit 1, above, while the latter has been reconsolidated back into Endeavour’s income statement and the associated US$14.8m profit from discontinued operations (including a US$17.8m profit on the mine’s sale) removed. Note therefore that the US$3.3m difference between ‘profit attributable to shareholders’ and ‘adjusted net earnings attributable’ in this column is accounted for by the US$3.3m underlying attributable loss that we calculate was reported by Karma during the quarter after deduction of the appropriate US$0.3m minority interest.

Within that context, gold produced and sold was 7% ahead of our forecasts, with the outperformance accounted for almost exclusively by Endeavour’s flagship assets, Hounde, Ity and Sabodala-Massawa. This outperformance in production was complemented by a realised gold price that was 1.4% better than the actual gold price recorded during the quarter to result in revenue that was 9% ahead of our prior forecasts. In combination with costs that were 6.5% lower in aggregate (13.0% lower at the level of unit cash costs), this in turn resulted in gross profit that was 20.3% better than our expectations and profit before tax that was similarly 20.9%, or US$39.8m, better. However, this outperformance was itself largely offset by a current tax charge that was US$31.8m higher than our prior expectations (owing to an increase in taxable income relative to a reduction in tax provisions in Q421 at Mana and a tax expense relating to the start of mining at the Massawa pits) and which was also augmented by a deferred tax charge of a further US$11.2m (which Edison has historically typically declined to attempt to forecast) to result in adjusted net EPS from continuing operations that were within 4% of our prior forecast, at US$0.49/share.

Items included in the reconciliation between adjusted net earnings attributable and total net and comprehensive earnings are losses from discontinued operations, gains/losses on financial instruments, other expenses and acquisition costs (all shown independently in the table above), plus the tax impact of adjusting items, non-cash and other adjustments and the minority interest attributable to the adjusting items (not shown independently). As noted previously, Endeavour has now changed its definition of adjusted net earnings attributable, such that deferred tax effects and share-based payments are no longer included in the adjustments to total net and comprehensive earnings, and this is now the manner in which our forecasts (below) are presented. Readers are also reminded that Endeavour changed its definition of cash costs in Q420 to include royalties. The decision was made so that Endeavour may be more consistent in reporting within the context of its peer group. For reasons of comparability with past results, however, as well as ease of forecasting (given that royalties are reported as a discrete item distinct from operating expenses), we are continuing to calculate total cash costs excluding royalties. A comparison between Endeavour’s actual results and both our and the market’s prior forecasts for the quarter is as follows:

Exhibit 2: Edison adjusted net EPS from continuing operations estimates cf consensus FY22 by quarter

(US$/share)

Q122e

Q122a

Variance
(%)

Edison

0.510

0.49

-3.9

Mean consensus forecast

0.465

0.49

+5.4

High consensus forecast

0.570

0.49

-14.0

Low consensus forecast

0.422

0.49

+16.1

Source: Refinitiv, Edison Investment Research. Note: Consensus as at 28 April 2022.

FY22 forecasts

Endeavour updated its production and cost guidance for FY22 in the aftermath of its sale of the Karma mine in February to 1,315–1,400koz at an all-in sustaining cost (AISC) of US$890–930/oz. This remains unchanged. However, in addition to incorporating its Q122 actual results into our full-year forecasts, in recognition of recent metals price moves, we have also reduced our gold price forecast for the remainder of the year, from US$1,890/oz previously to US$1,823/oz currently (the prevailing price at the time of writing). Note that, apart from this, our longer-term gold price forecasts remain unchanged. Other changes to our forecast treatments are as follows:

Corporate costs. Where before we had generally declined to attempt to forecast share-based payments, in recognition of the fact that Endeavour has now changed its definition of adjusted net earnings attributable, such that deferred tax effects and share-based payments are no longer included in the adjustments to total net and comprehensive earnings, we have altered our treatment of share-based payments such that it is now a function of the company’s share price, according to the historical relationship between the two demonstrated in Exhibit 3, below. Note that while a broadly negative relationship can be observed between Endeavour’s share price move during any particular quarter and its quarterly share-based payments charge, with a Pearson Product Moment (correlation) Coefficient of -0.21, the relationship cannot be described as statistically significant at the 5% level, given the number of data points in the analysis. That is to say, at this stage there is no evidence, yet, of a significant relationship between these two parameters. This may, at least in part, reflect the distorting effects of Endeavour’s acquisitions of SEMAFO and Teranga during the period in question (end-Q419 to end-Q122). It is also possible that a statistically significant relationship may develop over time (note that this is the case for other, comparable companies). In the meantime, however, as may be observed from the chart below, the share-based payment charge recorded in Q122 was nevertheless very close to that forecast by the (albeit retrospective) analysis, as shown by the point marked ‘Q122’.

Exhibit 3: Historical relationship between quarterly Endeavour share price change (US$) and quarterly share-based payments (US$000s)

Source: Edison Investment Research (underlying data: Endeavour Mining, Bloomberg).

In addition, after two quarters in which Endeavour has closed the quarter with net cash, but has still recorded a negative net interest charge for the quarter, we have changed our treatment of net interest to substantially remove the assumption of any interest income from positive cash balances held.

As a result (and with the usual caveat around quarterly estimates), our updated forecast for adjusted net earnings attributable to shareholders for FY22 for Endeavour in the wake of its Q122 results is now as follows:

Exhibit 4: Endeavour Mining FY22 forecasts, by quarter

US$000s (unless otherwise indicated)

Q122a

Q222e
(prior)

Q222e

Q322e
(prior)

Q322e

Q422e
(prior)

Q422

FY22e

FY22e
(prior)

Houndé production (koz)

73.1

76.4

76.4

68.8

68.8

57.3

57.3

275.5

261.6

Agbaou production (koz)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Karma production (koz)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

10.3

Ity production (koz)

72.4

67.8

67.8

63.2

63.2

63.2

63.2

266.5

261.9

Boungou production (koz)

33.8

35.3

35.3

29.9

29.9

30.4

30.4

129.4

130.0

Mana production (koz)

52.6

49.3

49.3

40.6

40.6

43.1

43.1

185.6

184.6

Sabodala-Massawa

96.3

85.9

85.9

98.2

98.2

98.2

98.2

378.5

371.8

Wahgnion

28.9

32.8

32.8

33.4

33.4

43.1

43.1

138.2

140.0

Total gold produced (koz)

357.1

347.5

347.5

334.0

334.0

335.1

335.1

1,384.0**

1,360.1

Total gold sold (koz)

359.1

347.5

347.5

334.0

334.0

335.1

335.1

1,385.8**

1,360.1

Gold price (US$/oz)

1,911

1,903

1,866

1,890

1,823

1,890

1,823

1,848

1,890

Mine level cash costs (US$/oz)*

609

692

713

656

688

665

699

681

684

Mine level AISC (US$/oz)

809

959

973

908

933

874

900

907

925

Revenue

– Gold revenue

686,200

661,475

645,167

631,340

605,278

633,282

607,151

2,543,796

2,571,160

Cost of sales

– Operating expenses

217,500

240,605

247,732

219,069

229,786

222,841

234,301

929,320

930,835

– Royalties

41,000

41,263

39,306

39,017

36,641

39,100

36,656

153,603

159,821

Gross profit

427,700

379,606

358,129

373,254

338,851

371,340

336,194

1,460,874

1,480,504

Depreciation

(152,000)

(157,461)

(151,311)

(155,594)

(152,389)

(159,997)

(160,581)

(616,281)

(629,286)

Expenses

– Corporate costs

(14,000)

(8,276)

(13,000)

(8,276)

(12,000)

(8,276)

(11,000)

(50,000)

(33,104)

– Impairments

0

0

0

– Acquisition etc costs

(200)

(200)

0

– Share based compensation

(7,700)

(6,777)

(6,999)

(6,999)

(28,474)

0

– Exploration costs

(7,100)

(5,000)

(5,000)

(5,000)

(5,000)

(5,000)

(5,000)

(22,100)

(20,000)

Total expenses

(29,000)

(13,276)

(24,777)

(13,276)

(23,999)

(13,276)

(22,999)

(100,774)

(53,104)

Earnings from operations

246,700

208,869

182,041

204,384

162,463

198,067

152,614

743,818

798,114

Interest income

0

Interest expense

(15,200)

(14,373)

(12,726)

(11,156)

(53,455)

83,828

Net interest

(15,200)

13,164

(14,373)

26,662

(12,726)

40,015

(11,156)

(53,455)

83,828

Loss on financial instruments

(178,800)

(178,800)

0

Other expenses

(2,000)

(2,000)

0

Profit before tax

50,700

222,033

167,668

231,046

149,737

238,083

141,458

509,563

881,942

Current income tax

74,700

48,976

44,173

48,543

40,387

47,372

38,175

197,435

190,856

Deferred income tax

11,200

0

0

0

0

0

0

11,200

0

Total tax

85,900

48,976

44,173

48,543

40,387

47,372

38,175

208,635

190,856

Effective tax rate (%)

(169.4)

22.1

26.3

21.0

27.0

19.9

27.0

40.9

21.6

Profit after tax

(35,200)

173,057

123,495

182,503

109,350

190,711

103,283

300,928

691,086

Net profit from discontinued ops.

14,800

0

0

0

0

0

0

14,800

0

Total net and comprehensive income

(20,400)

173,057

123,495

182,503

109,350

190,711

103,283

315,728

691,086

Minority interest

21,800

20,012

18,046

19,295

15,996

18,754

15,086

70,928

76,139

Minority interest (%)

(106.9)

11.6

14.6

10.6

14.6

9.8

14.6

22.5

11.0

Profit attributable to shareholders

(42,200)

153,045

105,449

163,208

93,355

171,956

88,196

244,800

614,947

Basic EPS from continuing ops (US$)

(0.23)

0.616

0.424

0.657

0.376

0.692

0.355

0.926

2.475

Diluted EPS from continuing ops (US$)

(0.23)

0.611

0.422

0.651

0.374

0.686

0.353

0.921

2.454

Basic EPS (US$)

(0.17)

0.616

0.424

0.657

0.376

0.692

0.355

0.985

2.475

Diluted EPS (US$)

(0.17)

0.611

0.422

0.651

0.374

0.686

0.353

0.980

2.454

Norm. basic EPS from cont. ops (US$)

0.49

0.616

0.424

0.657

0.376

0.692

0.355

1.646

2.475

Norm. diluted EPS from cont. ops (US$)

0.49

0.611

0.422

0.651

0.374

0.686

0.353

1.638

2.454

Adj net earnings attributable (US$000s)

122,300

153,045

105,449

163,208

93,355

171,956

88,196

409,300

614,947

Adj net EPS from continuing ops (US$)

0.49

0.616

0.424

0.657

0.376

0.692

0.355

1.648

2.475

Source: Endeavour Mining, Edison Investment Research. Note: *Excludes royalty costs. **Includes 10.2koz produced and 10.1koz sold from Karma in Q122.

As before, items included in the reconciliation between adjusted net earnings attributable and total net and comprehensive earnings are losses from discontinued operations, gains/losses on financial instruments, other expenses and acquisition costs (all shown independently in the table above), plus the tax impact of adjusting items, non-cash and other adjustments and the minority interest attributable to the adjusting items (not shown independently). As noted previously, Endeavour has now changed its definition of adjusted net earnings attributable, such that deferred tax effects and share-based payments are no longer included in the adjustments to total net and comprehensive earnings, and this is now the manner in which our FY22 forecasts are presented. Readers are also reminded that Endeavour changed its definition of cash costs in Q420 to include royalties. The decision was made so that Endeavour may be more consistent in reporting in the context of its peer group. For reasons of comparability with past results, however, as well as ease of forecasting (given that royalties are reported as a discreet item distinct from operating expenses), we are continuing to show total cash costs excluding royalties.

Within this context, a comparison between our quarterly and full-year forecast and consensus forecasts for FY22 is as follows:

Exhibit 5: Edison adjusted net EPS from continuing operations estimates cf consensus FY22 by quarter

(US$/share)

Q122a

Q222e

Q322e

Q422e

Sum Q1–Q422

FY22e

Edison

0.493

0.424

0.376

0.355

1.648

1.648

Mean consensus forecast

0.49

0.41

0.44

0.50

1.84

1.82

High consensus forecast

0.49

0.58

0.55

0.71

2.33

2.17

Low consensus forecast

0.49

0.32

0.24

0.38

1.43

1.44

Source: Refinitiv, Edison Investment Research. Note: Consensus at 16 May 2022.

Of particular note, within the context of our financial and operating forecasts for the individual quarters, is the absence of any material decline in either production or profitability in Q3 (being the quarter historically most susceptible to disruption from the seasonal rains in West Africa). In this case, however, we are expecting a material increase in production at Sabodala-Massawa in Q322 and H222. Mining activities are expected to continue at the Massawa Central Zone for the remainder of the year along with additional mining at the Sofia North and Sofia Main pits, while mining at the Massawa North Zone is expected to commence mid-year, with non-refractory ore available for immediate treatment in the carbon-in-leach (CIL) plant, while refractory and transitional material is stockpiled. Mined and processed grades are therefore expected to decline in Q222, given the greater focus on waste extraction at the Massawa Central and North Zones ahead of the rainy season, but are then expected to increase in the second half of the year.

Self-evidently, one of the main assumptions behind our forecasts is that there are no major deleterious effects to ongoing operations as a result of the COVID-19 pandemic. It also assumes no collateral escalation of war between Russia and Ukraine into West Africa. To date, the effect of COVID-19 on Endeavour’s operations in West Africa has been negligible and is expected to remain so, as the company has now been able to vaccinate more than 50% of its workforce in an ongoing programme of pandemic mitigation. In addition, Endeavour has further mitigated future risks as far as possible by setting itself up to operate under level 2 COVID-19 restrictions (see our note, New senior gold major looking to join FTSE 100, published on 17 December 2020) and by preparing multiple different levels in its pits from which to produce, thereby affording it greater operational flexibility in the event of disruptions.

Sabodala-Massawa expansion launch

On 4 April, Endeavour announced its decision to proceed with the development of its Sabodala-Massawa expansion project, based on the results of a recently completed definitive feasibility study (DFS). A summary of the salient features of the DFS’s results is as follows:

The Sabodala-Massawa expansion project will supplement the current 4.2Mtpa CIL plant with a 1.2Mtpa biological oxidation (BIOX) plant to process the high-grade refractory ore from the Massawa deposits.

Expansion is expected to increase production at the Sabodala-Massawa complex to c 373koz pa over the next five years at an average AISC of US$745/oz; over its 10-year life, the expansion project will produce 1.35Moz at an AISC of US$576/oz.

Initial capex of US$290m equates to a capital intensity of US$2,148 per average annual ounce of production and will be self-funded by the existing Sabodala-Massawa operation.

At a gold price of US$1,700/oz, the project is estimated to generate US$200m in incremental annual free cash flow in its first five years of operation to result in an NPV5% of US$861m (company calculations) and to generate a post-tax internal rate of return of 72% with a quick 1.4-year payback period.

Construction on the project will commence in the current quarter, with the first gold pour from the BIOX plant expected in early FY24.

Whereas, in our previous note (see Refining forecasts ahead of results, published on 28 April 2022) we had yet to incorporate the detailed Sabodala-Massawa expansion project into our longer-term forecasts (our previous valuation having been based on the outputs of the 2020 pre-feasibility study), our longer-term financial model has now been updated to rectify this omission. Thus its US$3.47/share standalone valuation (based on its NPV5% of US$861m – management valuation, see above) is now fully included in our company valuation (below). Note that this US$861m valuation is equivalent to US$560 per project ounce mined.

Valuation

Endeavour is a multi-asset company that has shown a willingness and desire to trade assets to maintain production, reduce costs and maximise returns to shareholders (eg the sale of Youga in FY16, Nzema in FY17, Tabakoto in FY18, Agbaou in FY20 and Karma in FY22, and the acquisition of SEMAFO in FY20 and Teranga in FY21). Historically, rather than our customary method of discounting maximum potential dividends over the life of operations back to FY22, in the case of Endeavour, we have instead opted to discount five years of forecast cash flows in FY22–26 back to the start of FY22 and then to apply an ex-growth terminal multiple of 10x (consistent with using a standardised discount rate of 10%) to forecast cash flows in that year (ie FY26). In the normal course of events, exploration expenditure would have been excluded from such a calculation on the basis that it is an investment. In the case of Endeavour, however, it was included on the grounds that it was a critical component of ongoing business performance in its ability to continually expand and extend the lives of its mines.

All other things being equal, excluding the Sabodala-Massawa expansion project from our calculations, our estimate of cash flows in FY26 would have remained unchanged in the wake of Q122 results at US$3.97/share. However, with it included, our estimate of cash flows in FY26 has instead increased to US$4.28/share. This estimate implies a terminal valuation of the company at end-FY26 of US$42.78/share – which represents an increase of US$3.11/share relative to our prior terminal valuation of US$39.67/share and may be compared with Endeavour’s standalone valuation of the project of US$3.47/share (albeit with the caveat that we habitually use a 10% discount rate where Endeavour used a 5% discount rate in its calculation, above). In conjunction with forecast intervening cash flows, this terminal valuation of US$42.78/share then discounts back to a present valuation of US$35.96/share as at the start of FY22, as follows:

Exhibit 6: Endeavour forecast valuation and cash flow per share, FY22–26e (US$/share)

Source: Edison Investment Research

Given its elevation into the ranks of the world’s foremost producers of gold, however, we believe Endeavour can increasingly attract lower-cost finance and, as such, a CAPM-derived WACC can also be considered (as discussed in our February 2021 initiation on Newmont Corporation). Long-term nominal equity returns have been 9% and 30-year break-evens are expecting an inflation rate of 2.5289% (source: Bloomberg, 17 May) compared to 2.5432% previously. These two measures imply an expected real equity return of 6.31% (1.09/1.025289) and applying this to our forecast cash flows would imply a terminal valuation for Endeavour of US$67.78/share (cf US$63.01/share previously) and a current valuation of US$60.40/share (cf US$59.48/share previously).

In the meantime, Endeavour’s valuation remains at a material discount to those of its peer group, as shown in Exhibit 7, below.

Relative Endeavour valuation

Endeavour’s valuation on a series of commonly used measures, relative to a selection of gold mining majors (the ranks of which it has now joined since its takeovers of SEMAFO and Teranga have been completed), is as follows:

Exhibit 7: Endeavour valuation relative to peers

Company

Ticker

Price/cash flow (x)

EV/EBITDA (x)

Yield (%)

Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

Endeavour (Edison)

EDV

4.6

6.0

5.2

4.1

4.6

4.6

2.8

3.1

3.6

Endeavour (consensus)

EDV

4.7

5.1

4.6

4.4

4.6

4.3

2.8

3.3

3.5

Majors

Barrick

ABX

7.9

7.4

7.4

7.0

6.4

6.6

3.0

4.5

4.8

Newmont

NEM

10.4

10.2

9.8

8.5

8.4

8.3

3.4

3.2

3.0

Newcrest

NCM AU

12.0

7.7

8.5

7.9

5.9

6.8

1.3

2.1

2.0

Kinross

K

3.8

3.7

4.1

4.5

4.1

4.6

2.8

2.8

2.8

Agnico-Eagle

AEM

9.2

8.9

9.0

7.7

7.4

7.7

3.1

3.1

3.1

Eldorado

ELD

4.2

3.4

3.3

3.5

3.1

2.9

0.0

0.0

0.0

Average

 

7.9

6.9

7.0

6.5

5.9

6.1

2.3

2.6

2.6

Implied EDV share price (US$)

39.28

26.22

30.47

37.36

31.28

33.53

27.47

26.82

31.25

Implied EDV share price (C$)

50.48

33.69

39.15

48.01

40.20

43.09

35.30

34.46

40.16

Source: Edison Investment Research, Refinitiv. Note: Consensus and peers priced at 16 May 2022.

Of note is that Endeavour’s valuation is materially cheaper than the averages of the majors on all of the measures shown in Exhibit 7 regardless of whether Edison or consensus forecasts are used. On an individual basis, it is cheaper than its senior gold mining peers on at least 36 out of 54 (66%) of valuation measures if Edison forecasts are used and 39 out of 54 (72%) valuation measures if consensus forecasts are used. Reverse engineered, the average valuation measures of its peers imply an average share price for Endeavour of US$31.52, or C$40.50 (or £25.58), per share.

Financials

According to its Q122 balance sheet, Endeavour had net cash of US$82.7m as at end-March, despite making US$69.3m in dividend distributions and US$31.1m in share repurchases during the quarter. This net cash figure compares with net cash/(debt) figures at the end of recent, comparable quarters, as follows:

Exhibit 8: Endeavour Mining net cash/(debt)*

Heading Left

Q420

Q121

Q221

Q321

Q421

Q122

Total

Net cash/(debt)

(43.3)

(220.2)

(147.6)

(143.6)

13.2

82.7

Change (US$m)

(176.9)

72.6

4.0

156.8

69.5

Dividends paid (US$m)

60.0

69.9

69.3

199.2

Minority dividends paid (US$m)

29.9

29.9

Share buybacks (US$m)

59.5

34.6

43.9

31.1

169.1

Underlying net cash/(debt) change pre-shareholder returns

(116.9)

132.1

138.4

200.7

169.9

Comment

Pre-Teranga acquisition.

Post-Teranga acquisition.

Source: Endeavour Mining, Edison Investment Research. Note: *As per reported balance sheet.

This figure of US$82.7m includes lease liabilities of US$47.1m and an option premium of US$52.6m which, if excluded, would result in an alternative net cash position of US$182.4m. This is equivalent to, but differs slightly from, the US$166.6m net cash figure calculated by Endeavour and quoted in its announcements owing to the discounting, variously, of certain committed future payments to present value. It also excludes US$31.2m held in the form of ‘restricted cash’ and US$40.0m in shares of Allied Gold received as consideration for the sale of Agbaou, both held in ‘non-current other financial assets’.

Note that, for the purposes of our financial modelling in Exhibit 9 and for simplicity’s sake, we have assumed that the consolidation of Endeavour’s and Teranga’s balance sheets took place retrospectively on 31 December 2020. In this case, we estimate Endeavour would have consolidated c US$242.6m in net debt on its balance sheet and c US$349.2m in gross debt as a consequence of its Teranga acquisition (as at end-December). As such, on a pro forma basis, we estimate that Endeavour would have had US$323.1m in net debt on its balance sheet at end-FY20, which we calculate would have equated to a gearing (net debt/equity) ratio of just 8.8% and a leverage (net debt/[net debt+equity]) ratio of 8.1% on the group’s enlarged equity base.

Exhibit 9: Financial summary

US$'000s

2019

2020

2021

2022e

2023e

2024e

December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

1,362,121

1,847,894

2,903,756

2,543,796

2,218,986

2,235,703

Cost of Sales

(884,869)

(1,061,891)

(1,675,393)

(1,183,696)

(995,810)

(1,007,684)

Gross Profit

477,252

786,003

1,228,363

1,360,100

1,223,175

1,228,019

EBITDA

 

 

618,443

910,295

1,517,263

1,360,300

1,223,175

1,228,019

Operating Profit (before amort. and except.)

 

 

281,400

546,072

859,409

744,018

758,879

703,822

Exceptionals

(199,159)

(201,532)

(266,000)

(179,000)

0

0

Other

(9,392)

8,886

(32,263)

(2,000)

0

0

Operating Profit

72,849

353,426

561,146

563,018

758,879

703,822

Net Interest

(51,607)

(53,774)

(70,623)

(53,455)

4,164

5,731

Profit Before Tax (norm)

 

 

220,401

501,184

756,523

688,563

763,044

709,552

Profit Before Tax (FRS 3)

 

 

21,242

299,652

490,523

509,563

763,044

709,552

Tax

(97,253)

(158,466)

(178,253)

(208,635)

(215,584)

(149,307)

Profit After Tax (norm)

123,148

342,718

578,270

479,928

547,459

560,246

Profit After Tax (FRS 3)

(76,011)

141,186

312,270

300,928

547,459

560,246

Net loss from discontinued operations

(4,394)

0

0

14,800

0

0

Minority interests

33,126

44,719

64,486

70,928

89,538

88,053

Net profit

(80,405)

141,186

312,270

315,728

547,459

560,246

Net attrib. to shareholders contg. businesses (norm)

90,022

297,998

513,784

409,000

457,922

472,193

Net attrib.to shareholders contg. businesses

(109,137)

96,466

247,784

230,000

457,922

472,193

Average Number of Shares Outstanding (m)

157.4

160.8

250.7

248.4

248.4

248.4

EPS - normalised (c)

 

 

57.20

185.34

204.95

164.64

184.33

190.07

EPS - normalised fully diluted (c)

 

 

56.95

181.51

203.21

163.76

183.34

189.06

EPS - (IFRS) ($)

 

 

(0.72)

0.60

0.99

0.99

1.84

1.90

Dividend per share (c)

0

37

56

62

70

82

Gross Margin (%)

35.0

42.5

42.3

53.5

55.1

54.9

EBITDA Margin (%)

45.4

49.3

52.3

53.5

55.1

54.9

Operating Margin (before GW and except.) (%)

20.7

29.6

29.6

29.2

34.2

31.5

BALANCE SHEET

Fixed Assets

 

 

2,330,033

5,093,409

5,404,900

5,301,598

5,429,146

5,523,626

Intangible Assets

5,498

24,851

10,000

10,000

10,000

10,000

Tangible Assets

2,254,476

3,968,746

4,980,200

4,876,898

5,004,446

5,098,926

Investments

70,059

1,099,812

414,700

414,700

414,700

414,700

Current Assets

 

 

652,871

1,168,382

1,366,000

1,631,695

1,790,720

2,022,480

Stocks

266,451

305,075

311,300

317,975

277,373

279,463

Debtors

83,836

104,545

139,900

174,486

217,482

218,856

Cash

288,186

751,563

906,200

1,309,435

1,466,065

1,694,361

Other

14,398

7,199

8,600

(170,200)

(170,200)

(170,200)

Current Liabilities

 

 

(354,931)

(661,171)

(567,100)

(649,950)

(591,931)

(598,161)

Creditors

(312,427)

(612,862)

(552,700)

(635,550)

(577,531)

(583,761)

Short term borrowings

(42,504)

(48,309)

(14,400)

(14,400)

(14,400)

(14,400)

Long Term Liabilities

 

 

(963,736)

(1,647,799)

(1,818,100)

(1,818,100)

(1,818,100)

(1,818,100)

Long term borrowings

(770,902)

(1,026,337)

(878,600)

(878,600)

(878,600)

(878,600)

Other long term liabilities

(192,834)

(621,462)

(939,500)

(939,500)

(939,500)

(939,500)

Net Assets

 

 

1,664,237

3,952,821

4,385,700

4,465,243

4,809,835

5,129,845

CASH FLOW

Operating Cash Flow

 

 

628,617

1,046,370

1,415,306

1,431,763

1,162,762

1,230,786

Net Interest

(35,413)

(53,774)

(26,900)

(53,455)

4,164

5,731

Tax

(109,494)

(186,332)

(205,573)

(197,435)

(215,584)

(149,307)

Capex

(401,227)

(335,599)

(587,496)

(512,979)

(591,844)

(618,678)

Acquisitions/disposals

3,654

(19,000)

(4,700)

15,000

5,000

0

Financing

2,402

100,000

(89,400)

(79,725)

0

0

Dividends

(6,154)

(88,288)

(159,800)

(199,934)

(207,867)

(240,237)

Net Cash Flow

82,385

463,377

341,437

403,235

156,630

228,296

Opening net debt/(cash)

 

 

518,607

525,220

323,083

(13,200)

(416,435)

(573,065)

Other

(88,998)

(261,240)

(5,154)

0

(0)

0

Closing net debt/(cash)

 

 

525,220

323,083

(13,200)

(416,435)

(573,065)

(801,361)

Source: Company sources, Edison Investment Research. Note: Presented on a pro forma basis including SEMAFO from FY18 balance sheet and Teranga from FY20 balance sheet. EPS normalised from FY18 to reflect continuing business only. *Excludes restricted cash.



General disclaimer and copyright

This report has been commissioned by Endeavour Mining and prepared and issued by Edison, in consideration of a fee payable by Endeavour Mining. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Endeavour Mining and prepared and issued by Edison, in consideration of a fee payable by Endeavour Mining. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Share this with friends and colleagues