Last close As at 06/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Research: Metals & Mining
Endeavour’s Q318 results were materially ahead of our expectations, driven by better than expected operational performances at Karma and Ity and lower operating expenses and depreciation relative to Q2, notwithstanding the usual rains during the quarter. These were partially counteracted by a higher tax charge. However, we have still materially increased our forecasts for FY18 in light of the Q318 results and in expectation of a further improvement in Q4. Higher than expected net debt reflected merely the acceleration of Ity CIL capex from H119 into H218.
Endeavour Mining |
Materially ahead of expectations |
Q3 results |
Metals & mining |
3 December 2018 |
Share price performance
Business description
Next events
Analyst
Endeavour Mining is a research client of Edison Investment Research Limited |
|||||||||||||||||||||||||||||||||||||||||||||||||
Endeavour’s Q318 results were materially ahead of our expectations, driven by better than expected operational performances at Karma and Ity and lower operating expenses and depreciation relative to Q2, notwithstanding the usual rains during the quarter. These were partially counteracted by a higher tax charge. However, we have still materially increased our forecasts for FY18 in light of the Q318 results and in expectation of a further improvement in Q4. Higher than expected net debt reflected merely the acceleration of Ity CIL capex from H119 into H218.
Year |
Revenue (US$m) |
EBITDA (US$m) |
PBT* |
Operating cash flow per share (US$) |
Capex (US$m) |
Net debt** (US$m) |
12/16 |
566.5 |
213.9 |
103.4 |
1.91 |
212.3 |
21.4 |
12/17 |
652.1 |
201.2 |
51.6 |
2.25 |
441.4 |
216.8 |
12/18e |
720.5 |
261.0 |
74.8 |
1.53 |
456.5 |
475.4 |
12/19e |
762.1 |
372.1 |
153.3 |
2.77 |
81.4 |
305.9 |
Note: *PBT is normalised, excluding amortisation of acquired intangibles, discontinued operations and exceptional items; **includes restricted cash.
FY18 production and cost guidance to be met easily
In the aftermath of its third-quarter results, Endeavour’s operations seem likely to broadly meet their production guidance, with the notable exception of the Ity heap leach operation, which has already surpassed its own target and now seems likely to produce a further 15koz gold in Q4. Similarly, all operations appear likely to achieve their AISC cost guidance, with the exception of Tabakoto, which was expected since at least Q2 and which has been sold as a consequence. Group-wide guidance for FY18 is now for production to be at the upper end of the 555–590koz range (Edison 582koz) at an all-in sustaining cost (AISC) at the bottom end of the US$760–810/oz range (Edison US$773/oz).
Adjusted net EPS forecast upgrades
As a result of its operational outperformance in Q3, Endeavour reported adjusted net EPS of minus 1.3c compared with our prior forecast of a loss of 9.9c (ie a positive 8.6c variance). In anticipation of continued improvements in the aftermath of the traditional Q3 rains, we have also increased our expectations for Q4, from 2.0cps to 2.8cps (ie a positive 0.8c variance) and for the full year, from 23.3cps to 32.7cps (a positive 9.4c variance – see Exhibit 2).
Valuation: US$30.74/sh vs US$29.76 previously
In valuing Endeavour, we have opted to discount potential cash flows back over four years from end-FY18 and then to apply an ex-growth, ad infinitum terminal multiple of 10x (consistent with a discount rate of 10%) to forecast cash flows in that year (FY22). In the case of Endeavour, our estimate of cash flow in FY22 is US$3.36 per share (including exploration expenditure), in which case our terminal valuation of the company at end-FY22 is US$33.63/share, which (in conjunction with forecast intervening cash flows) discounts back to a value of US$30.74/share (cf US$29.76/share previously) at the start of FY19.
Investment summary
Endeavour’s Q318 results were materially ahead of our expectations, driven by better than expected operational performances at Karma and Ity, partially offset by a worse than expected performance at Agbaou. From a financial perspective, operating expenses were US$9.1m (9.6%) better than our prior forecast (see Exhibit 2), while depreciation was US$10.2m lower (owing to lower mined tonnages) and there was a US$24.8m gain on financial instruments (which we declined to forecast). These were partially counteracted by a US$15.6m higher tax charge to result in profit after tax US$33.4m higher. However, this was mostly offset by a US$25.9m negative variance in net profits from discontinued operations (ie Tabakoto) – although this figure included a non-cash US$32.0m impairment to the related assets. A full comparison between Endeavour’s actual results and both those of Q218 and our prior expectations is provided in Exhibit 2.
In general, the depredations of the rainy season were more muted than we had expected – especially at Ity and Karma. Houndé, in particular, continued to perform well, with the plant continuing to operate nearly 30% above nameplate capacity and despite the rains limiting access to higher grade ore and the utilisation of fresh ore resulting in increased processing costs. At Agbaou, mining was constrained to low-grade areas and mill feed continued to be supplemented from low-grade stockpiles. The proportion of fresh ore also increased, from 28% to 32%, at the same time that the plant was subject to scheduled maintenance. Despite lower mining rates on account of the rainy season, production at Karma increased as it benefited from the higher grades and better recovery rates associated with Kao oxide ore. At the same time, notwithstanding lower grades stacked on account of supplemental feed from stockpiles and a lower recovery rate, opportunistic mining based on equipment availability at Ity resulted in an increase in ore stacked as a result of high plant availability and utilisation, such that production materially outperformed our expectations and has already surpassed Endeavour’s production guidance of 60–65koz for the full 12-month period. Finally, production at Tabakoto remained flat, despite the effect of heavy rainfall, as slightly higher mill throughput was offset by a slightly lower average processed grade.
Endeavour has a good history of meeting its production and cost guidance targets. For FY18, the overall guidance ranges for both production and costs remain unchanged, albeit with the following qualifications:
Exhibit 1: Current Endeavour production and AISC cost guidance, by mine
Mine |
Production guidance (koz) |
AISC cost guidance (US$/oz) |
Hondé |
Top end of 250–260koz |
Low end of US$580–630/oz |
Agbaou |
Lower end of 140–150koz |
Low end of US$860–900/oz |
Karma |
Low end of 105–115koz |
Top end of US$780–830/oz |
Ity (heap leach) |
Already surpassed guidance of 60–65koz |
Bottom half of US$790–850/oz |
Continuing operations |
Upper end of 555–590koz |
Bottom end of US$760–810/oz |
Tabakoto |
Low end of 115–130koz |
Above US$1,200–1,250/oz |
Source: Endeavour Mining
The current year is a transitional one for Agbaou, in particular, with a focus on waste capitalisation activities, which are expected to provide access to higher-grade areas in the latter part of Q418. Karma’s profile also is expected to improve slightly in the fourth quarter, following the end of the rainy season. Our financial forecasts for Q418 and FY18, within this context (reflecting, in particular, a general recovery from the rains of Q3) are as follows:
Exhibit 2: Endeavour Mining FY18 earnings forecasts, by quarter (US$000s unless otherwise indicated)
Q3/Q2 |
Q3 vs Q3e |
Previous |
Current |
||||||||||
*Q118 |
Q218 |
Q318e |
Q318 |
Change (%) |
Variance (%) |
Variance (units) |
Q418e |
FY18e |
Q418e |
FY18e |
|||
Houndé production (koz) |
73.8 |
66.9 |
58.4 |
60.7 |
-9.3 |
3.9 |
2.3 |
58.4 |
258 |
63 |
264 |
||
Agbaou production (koz) |
32.1 |
33.7 |
34.3 |
31.2 |
-7.4 |
-9.0 |
-3.1 |
39.8 |
140 |
37 |
134 |
||
Karma production (koz) |
28.2 |
21.0 |
22.0 |
26.1 |
24.3 |
18.6 |
4.1 |
33.5 |
105 |
29 |
104 |
||
Ity heap leach production (koz) |
18.3 |
25.0 |
11.1 |
21.0 |
-16.0 |
89.2 |
9.9 |
5.6 |
60 |
15 |
79 |
||
Tabakoto production (koz) |
32.4 |
26.8 |
25.7 |
26.5 |
-1.1 |
3.1 |
0.8 |
32.7 |
117 |
27 |
112 |
||
Total gold produced (koz) |
152 |
147 |
126 |
139 |
-5.4 |
10.3 |
13 |
137 |
562 |
144 |
582 |
||
Total gold sold (koz) |
154 |
151 |
126 |
134 |
-11.3 |
6.3 |
8 |
137 |
568 |
144 |
583 |
||
Gold price (US$/oz) |
1,328 |
1,306 |
1,212 |
1,161 |
-11.1 |
-4.2 |
-51 |
1,225 |
1,249 |
1,225 |
1,237 |
||
Cash costs (US$/oz) |
524 |
608 |
758 |
643 |
5.8 |
-15.2 |
-115 |
667 |
633 |
680 |
612 |
||
AISC (US$/oz) |
669 |
768 |
924 |
820 |
6.8 |
-11.3 |
-104 |
828 |
790 |
846 |
773 |
||
Revenue |
|
|
|
||||||||||
- Gold revenue |
198,894 |
189,515 |
152,506 |
155,764 |
-17.8 |
2.1 |
3,258 |
168,189 |
709,104 |
176,341 |
720,514 |
||
Cost of sales |
|
|
|
||||||||||
- Operating expenses |
83,276 |
92,646 |
95,375 |
86,238 |
-6.9 |
-9.6 |
-9,137 |
91,547 |
362,844 |
97,860 |
360,020 |
||
- Royalties |
12,183 |
10,254 |
8,801 |
8,293 |
-19.1 |
-5.8 |
-508 |
10,005 |
41,243 |
9,854 |
40,584 |
||
Gross profit |
103,435 |
86,615 |
48,330 |
61,233 |
-29.3 |
26.7 |
12,903 |
66,637 |
305,017 |
68,627 |
319,910 |
||
Depreciation |
(39,504) |
(43,538) |
(46,120) |
(35,911) |
-17.5 |
-22.1 |
10,209 |
(47,034) |
(176,196) |
(40,786) |
(159,739) |
||
Expenses |
|
|
|
||||||||||
- Corporate costs |
(6,488) |
(6,130) |
(5,957) |
(5,888) |
-3.9 |
-1.2 |
69 |
(5,957) |
(24,532) |
(5,957) |
(24,463) |
||
- Impairments |
0 |
0 |
0 |
0 |
N/A |
N/A |
0 |
(13,195) |
(13,195) |
1,129 |
1,129 |
||
- Acquisition etc costs |
0 |
0 |
0 |
0 |
N/A |
N/A |
0 |
0 |
0 |
0 |
0 |
||
- Share based compensation |
(2,668) |
(10,109) |
(5,986) |
(4,007) |
-60.4 |
-33.1 |
1,979 |
(5,986) |
(24,749) |
(7,000) |
(23,784) |
||
- Exploration costs |
(2,754) |
(2,284) |
(1,720) |
(2,583) |
13.1 |
50.2 |
-863 |
(1,720) |
(8,478) |
(3,000) |
(10,621) |
||
Total expenses |
(11,910) |
(18,523) |
(13,663) |
(12,478) |
-32.6 |
-8.7 |
1,185 |
(26,858) |
(70,954) |
(14,828) |
(57,739) |
||
Earnings from operations |
52,021 |
24,554 |
(11,453) |
12,844 |
-47.7 |
-212.1 |
24,297 |
(7,255) |
57,867 |
13,012 |
102,431 |
||
Interest income |
0 |
0 |
N/A |
N/A |
0 |
0 |
0 |
||||||
Interest expense |
(7,496) |
(4,549) |
(4,818) |
(6,679) |
46.8 |
38.6 |
-1,861 |
(4,818) |
(21,681) |
(7,743) |
(26,467) |
||
Net interest |
(7,496) |
(4,549) |
(4,818) |
(6,679) |
46.8 |
38.6 |
-1,861 |
(4,818) |
(21,681) |
(7,743) |
(26,467) |
||
Loss on financial instruments |
(11,403) |
10,922 |
24,755 |
126.7 |
N/A |
24,755 |
(481) |
24,274 |
|||||
Other expenses |
(165) |
(818) |
(173) |
-78.9 |
N/A |
-173 |
(983) |
(1,156) |
|||||
Profit before tax |
32,957 |
30,109 |
(16,271) |
30,747 |
2.1 |
-289.0 |
47,018 |
(12,073) |
34,722 |
5,269 |
99,082 |
||
Current income tax |
10,772 |
17,095 |
1,823 |
17,443 |
2.0 |
856.8 |
15,620 |
5,000 |
34,691 |
5,540 |
50,850 |
||
Deferred income tax |
(4,881) |
4,432 |
0 |
(2,007) |
-145.3 |
N/A |
-2,007 |
0 |
(449) |
0 |
(2,456) |
||
Total tax |
5,891 |
21,527 |
1,823 |
15,436 |
-28.3 |
746.7 |
13,613 |
5,000 |
34,242 |
5,540 |
48,394 |
||
Marginal tax rate |
17.9 |
71.5 |
(11.2) |
50.2 |
-29.8 |
-548.2 |
61.4 |
(41.4) |
98.6 |
105.1 |
48.8 |
||
Profit after tax |
27,066 |
8,582 |
(18,094) |
15,311 |
78.4 |
-184.6 |
33,405 |
(17,074) |
480 |
(271) |
50,688 |
||
Net profit from discontinued ops. |
593 |
(24,025) |
(9,798) |
(35,705) |
48.6 |
264.4 |
-25,907 |
(2,466) |
(35,696) |
(56) |
(59,193) |
||
Total net and comprehensive loss |
27,659 |
(15,443) |
(27,892) |
(20,394) |
32.1 |
-26.9 |
7,498 |
(19,540) |
(35,216) |
(327) |
(8,505) |
||
Minority interest |
14,567 |
(132) |
(3,369) |
(3,619) |
2,641.7 |
7.4 |
-250 |
400 |
11,466 |
2,522 |
13,338 |
||
Minority interest (%) |
52.7 |
0.9 |
12.1 |
17.7 |
1,866.7 |
46.3 |
5.6 |
(2.0) |
(32.6) |
(771.1) |
(156.8) |
||
Profit attributable to shareholders |
13,092 |
(15,311) |
(24,523) |
(16,775) |
9.6 |
-31.6 |
7,748 |
(19,940) |
(46,682) |
(2,849) |
(21,843) |
||
Dividend |
0 |
0 |
0 |
0 |
N/A |
N/A |
0 |
0 |
0 |
0 |
0 |
||
Retained earnings |
13,092 |
(15,311) |
(24,523) |
(16,775) |
9.6 |
-31.6 |
7,748 |
(19,940) |
(46,682) |
(2,849) |
(21,843) |
||
|
|
|
|||||||||||
Basic EPS from continuing ops. (US$) |
0.116 |
0.037 |
(0.137) |
0.136 |
267.6 |
-199.3 |
0.273 |
(0.162) |
(0.102) |
(0.026) |
0.347 |
||
Diluted EPS from continuing ops. (US$) |
0.116 |
0.037 |
(0.136) |
0.136 |
267.6 |
-200.0 |
0.272 |
(0.162) |
(0.100) |
(0.026) |
0.339 |
||
Basic EPS (US$) |
0.122 |
(0.142) |
(0.228) |
(0.156) |
9.9 |
-31.6 |
0.072 |
(0.185) |
(0.433) |
(0.026) |
(0.203) |
||
Diluted EPS (US$) |
0.121 |
(0.142) |
(0.227) |
(0.155) |
9.2 |
-31.7 |
0.072 |
(0.185) |
(0.424) |
(0.026) |
(0.198) |
||
Norm. basic EPS from continuing ops (US$) |
0.222 |
(0.064) |
(0.137) |
(0.094) |
46.9 |
-31.4 |
0.043 |
(0.040) |
0.025 |
(0.036) |
0.111 |
||
Norm. diluted EPS from continuing ops (US$) |
0.221 |
(0.064) |
(0.136) |
(0.094) |
46.9 |
-30.9 |
0.042 |
(0.040) |
0.025 |
(0.036) |
0.111 |
||
Adj net earnings attributable (US$000s) |
24,411 |
9,189 |
(10,646) |
(1,408) |
-115.3 |
-86.8 |
9,238 |
2,150 |
25,104 |
3,070 |
35,262 |
||
Adj net EPS from continuing ops. (US$) |
0.227 |
0.085 |
(0.099) |
(0.013) |
-115.3 |
-86.9 |
0.086 |
0.020 |
0.233 |
0.028 |
0.327 |
||
Source: Endeavour Mining, Edison Investment Research. Note: *Q1 restated to reflect Tabakoto as a ‘discontinued operation’. Company reported basis.
Note that the US$32.2m non-cash impairment to the value of Tabakoto has contributed to the reduction in the value of its net assets from US$73.2m as at end-Q218 to US$58.9m as at end-Q319 and has therefore reversed our anticipated loss on its sale in Q4 for US$60m, from US$13.2m to a profit of US$1.1m (under forecast ‘impairments’ in the above table).
Valuation
Endeavour is a multi-asset company that has shown a willingness and desire to trade assets in order to maintain production, reduce costs and to maximise returns to shareholders (eg the sale of Youga in FY16 and Nzema in FY17). Rather than our customary method of discounting maximum potential dividends over the life of operations back to FY19, therefore, we have opted to discount potential cash flows back over four years from end-FY18 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 FY22). In the normal course of events, exploration expenditure would be excluded from such a calculation, on the basis that it is an investment. In the case of Endeavour, however, we have included it in our estimate of FY22 cash flows on the grounds that it may be a critical component of ongoing business performance in its ability to continually expand and extend the lives of the company’s assets.
In the wake of its Q318 results, our estimate of Endeavour’s cash flow in FY22 is, to all intents and purposes, unchanged at US$3.36 per share (cf US$3.38/sh in our note Endeavour: From the ground upwards, published on 16 October 2018), on which basis our terminal valuation of the company at end-FY22 is US$33.63/share (cf US$33.76/sh previously), which (in conjunction with forecast intervening cash flows) discounts back to a value of US$30.74/share (cf US$29.76/share previously) at the start of FY19.
Exhibit 3: Endeavour forecast valuation and cash flow per share, FY18–FY22 (US$/share)
|
|
Source: Edison Investment Research |
Financials
Endeavour had US$509.2m in net debt on its balance sheet at end-Q3, compared with US$399.9m at end-Q218, after US$110.8m in ‘mining interests’ capex. This level of net debt equates to a gearing (net debt/equity) ratio of 52.1% and leverage (net debt/[net debt+equity]) ratio of 34.3%. Note that US$509.2m accords with Endeavour’s accounts; it differs from the figure of US$535.4m quoted in some of the company’s other materials, since the formal accounting treatment of the finance leases on the balance sheet in particular requires future cash flows to be discounted back to present value – whereas the higher figure is quoted on an undiscounted basis. In addition, the higher figure does not include restricted cash.
The company has embarked on a major period of capital expenditure in FY18 relating to the Ity CIL project. Construction is reported to be progressing on budget and ahead of schedule, with overall project completion standing at 75% and tailings storage facility completion standing at over 70%. To achieve this, capital expenditure was brought forward from FY19 into FY18. As at 30 September therefore, project capital expended amounted to US$276m (out of an estimated total of US$351m), including c US$232m in cash outflow, US$33m in leased equipment and US$11m in non-cash working capital. Cash outflow for Q418 is expected to be c US$50–60m (almost completely offset by US$60m in cash proceeds from the Tabakoto sale, which we assume will be received by Endeavour in Q4), with the remaining expenditure of c US$62-72m expected to occur by end-H119. As a result, we now forecast that Endeavour will have US$475.4m in net debt as at end-FY18 (cf US$304m previously, which assumed an equal split of Ity CIL capex between FY18 and FY19), which will equate to a gearing ratio of 48.2% and a leverage ratio (see above) of 32.5%. First gold is now expected from the Ity CIL plant early in Q219. Thereafter, net debt should decline rapidly (notwithstanding capex related to the Kalana project) such that we estimate the company will be net debt-free in FY21, at which point it will potentially be able to make dividend distributions to shareholders.
Exhibit 4: Financial summary
US$'000s |
2016 |
2017 |
2018e |
2019e |
2020e |
||
December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
PROFIT & LOSS |
|||||||
Revenue |
|
|
566,486 |
652,079 |
720,514 |
762,133 |
1,002,952 |
Cost of Sales |
(376,794) |
(597,528) |
(458,343) |
(390,076) |
(441,940) |
||
Gross Profit |
189,692 |
54,551 |
262,171 |
372,057 |
561,012 |
||
EBITDA |
|
|
213,916 |
201,166 |
261,042 |
372,057 |
561,012 |
Operating Profit (before amort. and except.) |
127,981 |
70,379 |
101,302 |
200,811 |
377,829 |
||
Intangible Amortisation |
0 |
0 |
0 |
0 |
0 |
||
Exceptionals |
(36,272) |
(149,942) |
25,403 |
0 |
0 |
||
Other |
(1,989) |
(2,242) |
(1,156) |
0 |
0 |
||
Operating Profit |
89,720 |
(81,805) |
125,549 |
200,811 |
377,829 |
||
Net Interest |
(24,593) |
(18,789) |
(26,467) |
(47,540) |
(30,592) |
||
Profit Before Tax (norm) |
|
|
103,388 |
51,590 |
74,835 |
153,271 |
347,237 |
Profit Before Tax (FRS 3) |
|
|
65,127 |
(100,594) |
99,082 |
153,271 |
347,237 |
Tax |
(27,643) |
(32,945) |
(48,394) |
(55,962) |
(95,285) |
||
Profit After Tax (norm) |
73,756 |
16,403 |
25,285 |
97,309 |
251,952 |
||
Profit After Tax (FRS 3) |
37,484 |
(133,539) |
50,688 |
97,309 |
251,952 |
||
Average Number of Shares Outstanding (m) |
80.6 |
98.5 |
107.7 |
107.8 |
107.8 |
||
EPS - normalised (c) |
|
|
(37.8) |
(6.5) |
(43.9) |
63.5 |
185.9 |
EPS - normalised and fully diluted (c) |
|
(37.5) |
(6.5) |
(42.9) |
62.2 |
181.8 |
|
EPS - (IFRS) (c) |
|
|
28.8 |
(114.5) |
34.7 |
63.5 |
185.9 |
Dividend per share (p) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Gross Margin (%) |
33.5 |
8.4 |
36.4 |
48.8 |
55.9 |
||
EBITDA Margin (%) |
37.8 |
30.8 |
36.2 |
48.8 |
55.9 |
||
Operating Margin (before GW and except.) (%) |
22.6 |
10.8 |
14.1 |
26.3 |
37.7 |
||
BALANCE SHEET |
|||||||
Fixed Assets |
|
|
1,073,562 |
1,331,745 |
1,477,848 |
1,387,960 |
1,390,711 |
Intangible Assets |
29,978 |
6,267 |
6,267 |
6,267 |
6,267 |
||
Tangible Assets |
1,039,529 |
1,317,952 |
1,464,055 |
1,374,167 |
1,376,918 |
||
Investments |
4,055 |
7,526 |
7,526 |
7,526 |
7,526 |
||
Current Assets |
|
|
283,536 |
361,766 |
143,578 |
324,970 |
614,291 |
Stocks |
110,404 |
141,898 |
147,044 |
155,537 |
204,684 |
||
Debtors |
36,572 |
95,212 |
103,734 |
107,155 |
126,948 |
||
Cash |
124,294 |
122,702 |
(135,884) |
33,594 |
253,974 |
||
Other |
12,266 |
1,954 |
28,684 |
28,684 |
28,684 |
||
Current Liabilities |
|
|
(149,626) |
(241,185) |
(213,632) |
(186,496) |
(205,283) |
Creditors |
(145,311) |
(223,527) |
(195,974) |
(168,838) |
(187,625) |
||
Short term borrowings |
(4,315) |
(17,658) |
(17,658) |
(17,658) |
(17,658) |
||
Long Term Liabilities |
|
|
(246,811) |
(451,705) |
(391,894) |
(391,894) |
(391,894) |
Long term borrowings |
(146,651) |
(323,184) |
(323,184) |
(323,184) |
(323,184) |
||
Other long term liabilities |
(100,160) |
(128,521) |
(68,710) |
(68,710) |
(68,710) |
||
Net Assets |
|
|
960,661 |
1,000,621 |
1,015,900 |
1,134,540 |
1,407,824 |
CASH FLOW |
|||||||
Operating Cash Flow |
|
|
164,522 |
244,092 |
185,719 |
354,338 |
532,191 |
Net Interest |
(19,626) |
(15,212) |
(26,467) |
(47,540) |
(30,592) |
||
Tax |
(10,625) |
(22,301) |
(21,357) |
(55,962) |
(95,285) |
||
Capex |
(212,275) |
(441,396) |
(456,481) |
(81,358) |
(185,934) |
||
Acquisitions/disposals |
32,098 |
(37,332) |
60,000 |
0 |
0 |
||
Financing |
174,702 |
116,536 |
0 |
0 |
0 |
||
Dividends |
(2,612) |
(5,177) |
0 |
0 |
0 |
||
Net Cash Flow |
126,184 |
(160,790) |
(258,586) |
169,478 |
220,380 |
||
Opening net debt/(cash) |
|
|
152,856 |
26,672 |
218,140 |
476,726 |
307,248 |
HP finance leases initiated |
0 |
0 |
0 |
0 |
0 |
||
Other |
0 |
(30,678) |
0 |
0 |
0 |
||
Closing net debt/(cash) |
|
|
26,672 |
218,140 |
476,726 |
307,248 |
86,868 |
Source: Endeavour Mining, Edison Investment Research. Note: includes discontinued operations; *excludes restricted cash.
|
||||||||||||
|
||||||||||||
Research: Real Estate
Palace Capital (PCA) has published its interim results for the six months to 30 September 2018 and has also exchanged contracts for the sale of 50 low-yielding, non-core residential units, acquired as part of last year’s RT Warren acquisition. After a year of significant developments at PCA, preparing the ground for the next stage of growth, H119 has been a period of consolidation, although the company has continued to deliver income and capital growth, generating a NAV total return of 4.0% in the period.