RE:RE:RE:RE:RE:EDV in 2018 (new try)PS: I see that the ASX listing only came about in 2011, after the acquisition of Adamus (bringing Nzema). After that, the number of shares in issue rose to 244.61m (24.46m post-consolidation).
It's quite interesting to look back at the history and see what was bought in and what Endeavour management developed. So, after transitioning from an investment firm in 2010, they started with just the operating Youga mine, from Etruscan - and the undeveloped Agbaou project. As we know, they've done a great job on Agbaou, which has become a far more valuable asset than Youga ever was. Then came the acquisition of Adamus in 2011, bringing Nzema.
They then took a bigger step in acquiring Avion in 2012, which is what brought me in as an Endeavour shareholder (being a former Avion shareholder) - and thank goodness for that! It turned out that Avion really weren't doing a very good job of managing their Tabakoto asset, suffering from a stretched balance sheet - and without the Endeavour takover, I have little doubt that Avion would have gone bust during the gold price crash. From the POV of Endeavour shareholders, however, Avion brought a couple of "hidden gems": most sparkling, of course is Hounde, which should bring far greater cashflow than Tabakoto ever could, once developed. Another, less obvious, "gem" is Kofi, which was also undeveloped at the time, which we've now started producing from, and which is providing good, low cost, ore to the Tabakoto mill. I note the comments in the January presentation about Kofi being "on-trend" from Randgold's 11Moz Loulo property and that good exploration targets in the Kofi Nord area have been identified.
Similary Ity brought a producing mine with development and explo. potential and, with TGM, we have another variation on this theme: an acquisition with an about-to-be-producing mine and lots of exploration and development upside.
So, we have a management with a track record of acquiring operations at fair prices, using shares for the acquisitions to maintain a strong balance sheet, optimising the operations and then using that balance sheet strength (and a skilled operations team) to successfully develop the upside that those acquisitions bring. This balance sheet strength allows the necessary CAPEX to be invested without taking on excessive debt resulting in the need for extensive hedging.
I think the next few years should be very exciting indeed, as the true value of all the acquisitions is revealed, as further exploration and development work progresses. ISTM that Endeavour as a whole, with its strong financial foundations, is worth rather more than the sum of its parts.
Mark