Endeavour Mining plc T.EDV

Alternate Symbol(s): EDVMF

Metals & Mining Gold

Endeavour Mining PLC is a gold mining company with operating assets across Senegal, Cote d'Ivoire and Burkina Faso. It has a portfolio of advanced development projects and exploration assets in the Birimian Greenstone Belt across West Africa. It operates Hounde, Ity, Mana, and Sabodala-Massawa Mines. The Ity Mine is located approximately 480 kilometers (km) northwest of Abidjan in southern Cote d'Ivoire. The Hounde Mine is located approximately 250 km southwest of Ouagadougou, the capital city of Burkina Faso. Its projects consist of Lafigue Project and Others. The Other projects includes Kalana, Bantou, and the Nabanga Project. The Kalana Project is located approximately 250 km south of Bamako, the capital city of Mali. The Bantou Project is part of the Dynikongolo permit which is located along the Hounde Greenstone Belt that hosts both the Mana and Hounde mines. The Nabanga project is an early-stage project which consists of three exploration permits covering 178.5 square kilometers.

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Endeavour Mining plc

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Post by echo2on May 14, 2021 9:39am

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Post# 33202543

Scotia Positive Target $51.00 Sector Outperform

Latest Research (May 13, 2021):

OUR TAKE: Positive. Endeavour reported Q1/2021 financial and operating results with production of 347koz (7% higher than our 326koz est; sales: 364koz) with AISC of $868/oz (12% lower than our $989/oz est). Q1/21 adjusted EPS was $0.50, beating our estimate of $0.39 and cons. $0.42. EDV ended Q1/21 with net debt of $162M (cash of $868M with debt of $1.03B). EDV's first dividend of $60M was paid on Feb 5/21 and $13M of shares were repurchased post the quarter-end through the NCIB.

2021 guidance was reiterated for production of 1.365M-1.495Moz Au with at an AISC of $850-$900/oz, including Teranga assets and sale of Agbaou. We expect solid free cash flow (FCF) in 2021. The company generated $87M in FCF in Q1/21 and at spot, we expect EDV to generate FCF of $765M in 2021 (FCF yield: ~14%) and ~$735M in 2022 (this is assuming capex spend commencing in Q1/22 at Fetekro and Sabodala/Masawa expansion). EDV shares are rated SO with a C$51 price target.