Endeavour Mining plc T.EDV

First Quarter Results

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Endeavour Mining Capital - First Quarter Results GEORGE TOWN, Grand Cayman, Dec. 21, 2005 (Canada NewsWire via COMTEX) -- Endeavour Mining Capital Corp. ("Endeavour" or "Corporation") recorded a net income of US$11.0 million or US$0.47 per share (or approximately CDN$0.55 per share) for the first quarter ended November 30, 2005. This compares with net income of US$19.8 million or US$0.86 per share (or approximately CDN$1.02 per share) reported for the quarter ended November 30, 2004. While the earnings in the first quarter of fiscal 2006 did not meet the record high recorded in the comparative quarter in the prior year, the strong financial performance builds on the strong results achieved in each of the four fiscal years since the implementation of our merchant banking business plan. As of November 30, 2005, the Corporation's investment capital base has grown to US$108.0 million, leading to a net asset value per share of US$4.67 (or approximately CDN$5.45 per share). During the first quarter of fiscal 2006, the Corporation reported total investment income of US$11.7 million and operating expenses of US$742,000, leading to an operating margin of 94% during the period. During the quarter, the Corporation earned US$3.6 million of realized gains, interest, loan fees and dividends received and recorded unrealized gains of US$8.1 million. The Corporation's core merchant banking positions have performed well and are positioned for future growth. We are experiencing strong levels of deal-flow, however, we remain highly selective regarding the new transactions we consider. Our financial performance reflects the Corporation's ability to recognize opportunities and market trends and execute our strategy. Management is conscious of the share price discount relative to net asset value per share and is in the process of developing strategies to reduce the discount. Endeavour Mining Capital Corp. is a publicly traded merchant banking company focused on the global natural resources sector. The Corporation offers a unique combination of financial and intellectual capital to help build companies and create shareholder value. Our shares are listed on the Toronto Stock Exchange under the symbol EDV and offer a distinctly different way to invest in the natural resources sector. For additional information, please visit our corporate website, www.endeavourminingcapital.com. On behalf of Endeavour Mining Capital Corp. "Bill Koutsouras" Chief Financial Officer, Director & Secretary << ENDEAVOUR MINING CAPITAL CORP. Consolidated Balance Sheets (Expressed in Thousands of United States Dollars) November 30, August 31, 2005 2005 (Unaudited) ------------- ------------ ASSETS Cash and cash equivalents $ 8,581 $ 5,702 Restricted cash - 3,500 Investments (cost: Nov 30, 2005 $57,799; Aug 31, 2005 $57,213) 99,189 90,664 Receivables and other assets 466 886 ------------------------------------------------------------------------- $ 108,236 $ 100,752 ------------------------------------------------------------------------- LIABILITIES Investment advisor fees payable $ 153 $ 146 Performance fees payable - 3,470 Accrued expenses and other liabilities 88 91 ------------------------------------------------------------------------- 241 3,707 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital 51,745 51,745 Warrants 240 240 Contributed surplus 536 536 Retained earnings 55,474 44,524 ------------------------------------------------------------------------- 107,995 97,045 ------------------------------------------------------------------------- $ 108,236 $ 100,752 ------------------------------------------------------------------------- ENDEAVOUR MINING CAPITAL CORP. Consolidated Statements of Operations & Retained Earnings (Expressed in Thousands of United States Dollars, except per share amounts) Three Months Ended November 30, 2005 2004 (Unaudited) (Unaudited) -------------------------- INVESTMENT INCOME Net realized gain on investments $ 3,224 $ 11,476 Change in net unrealized appreciation of investments and foreign currencies 8,081 10,883 Interest 311 225 Dividends, net of withholding taxes 30 5 Loan facility fees 46 27 ------------------------------------------------------------------------- 11,692 22,616 ------------------------------------------------------------------------- EXPENSES Performance fee - 2,192 Investment advisory fee 456 405 General office and administrative 223 183 Professional fees 63 39 ------------------------------------------------------------------------- 742 2,819 ------------------------------------------------------------------------- NET INCOME 10,950 19,797 RETAINED EARNINGS, BEGINNING OF PERIOD 44,524 21,000 ------------------------------------------------------------------------- RETAINED EARNINGS, END OF PERIOD $ 55,474 $ 40,797 ------------------------------------------------------------------------- BASIC EARNINGS PER SHARE $ 0.47 $ 0.86 ------------------------------------------------------------------------- ------------------------------------------------------------------------- DILUTED EARNINGS PER SHARE $ 0.47 $ 0.85 ------------------------------------------------------------------------- ------------------------------------------------------------------------- WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING 23,120,578 23,120,578 ------------------------------------------------------------------------- ------------------------------------------------------------------------- DILUTED WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING 23,243,667 23,193,883 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ENDEAVOUR MINING CAPITAL CORP. Consolidated Statements of Cash Flows (Expressed in Thousands of United States Dollars) Three Months Ended November 30, 2005 2004 (Unaudited) (Unaudited) -------------------------- OPERATING ACTIVITIES Net income $ 10,950 $ 19,797 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Net realized gain on investments (3,224) (11,476) Change in net unrealized appreciation of investments and foreign currencies (8,081) (10,883) Decrease (increase) in receivables and other assets 420 (198) Increase in investment advisor fees payable 7 25 (Decrease) increase in performance fees payable (3,470) 641 Decrease in accrued expenses and other liabilities (3) (24) Decrease in restricted cash 3,500 - Purchase of investments (7,656) (10,674) Proceeds from the sale of investments 10,436 20,368 ------------------------------------------------------------------------- 2,879 7,576 ------------------------------------------------------------------------- NET INCREASE IN CASH AND CASH EQUIVALENTS 2,879 7,576 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 5,702 5,301 ------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 8,581 $ 12,877 ------------------------------------------------------------------------- The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking statements relating to the future performance of Endeavour Mining Capital Corp. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation's filings with the appropriate securities commissions. SOURCE: Endeavour Mining Capital Corp. Vanguard Shareholder Solutions, Phone: [phone] or [phone], email: [e-mail] Copyright (C) 2005 CNW Group. All rights reserved.