Endeavour Mining plc T.EDV

Alternate Symbol(s): EDVMF

Metals & Mining Gold

Endeavour Mining plc is a United Kingdom-based multi-asset gold producer focused in West Africa. The Company has five operating assets consisting of the Hounde and Mana mines in Burkina Faso, the Ity and Lafigue mines in Cote d’Ivoire, and the Sabodala-Massawa mine in Senegal, two greenfield development projects (Assafou and Kalana) in Cote d’Ivoire and Mali and a portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Cote d’Ivoire, Senegal, and Guinea. The Hounde mine is located in the northern part of the highly prospective Hounde Greenstone Belt, approximately 60 kilometers (km) south of the Mana mine. The Ity mine is located in western Cote d'Ivoire, 480 km west-northwest from Abidjan, in the prefecture of Zouan-Hounien. The Mana Mine is located approximately 200 kms west of Ouagadougou, the capital of Burkina Faso. The Sabodala-Massawa Mine is approximately 640 kms southeast of Dakar, the capital of Senegal.

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Endeavour Mining plc

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Post by scissors14on Sep 29, 2010 11:53am

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Post# 17506813

Canaccord Has $4.65 Target

Endeavour Mining Corporation | Nicholas Campbell, 1.604.643.7027
EDV : TSX : C$2.65 | C$300.2M | Speculative Buy , Target C$4.65

• Consolidation and growth: A new gold producer emerges in West Africa;
initiating coverage with a SPECULATIVE BUY and C$4.65 target
Investment recommendation
We are initiating coverage on Endeavour Mining Corporation with a
SPECULATIVE BUY rating and a target price of C$4.65 per share.

Investment highlights

• Organic growth profile: Through the development of the Agbaou and Finkolo
projects, Endeavour has the potential to ramp up gold production to more
than 175,000 ounces in 2013.
• Revaluation as gold producer: Endeavour is trading at 0.57x P/NAV (5%, spot)
versus the junior producer average of 1.0x. As investors recognize
Endeavour’s transition to a gold producer, we expect to see a re-rating of the
company.
• Executing on an M&A growth strategy: Endeavour has US$180 million in cash
and an untapped US$100 million acquisition facility, which puts it in a strong
position to grow through acquisition.

Valuation

We estimate a peak gold price NAVPS of C$4.65 (5%, US$1,300/oz Au) for
Endeavour. Our target price is based on a 1.0x multiple to our peak gold NAVPS
estimate, in line with the average junior gold producer market valuation. This
gives us a 12-month target price of C$4.65 per share. We initiate coverage on
Endeavour Mining Corporation with a SPECULATIVE BUY recommendation.