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Endeavour Mining plc T.EDV

Alternate Symbol(s):  EDVMF

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.


TSX:EDV - Post by User

Bullboard Posts
Comment by December3on Dec 31, 2012 4:50pm
318 Views
Post# 20785626

RE: RE: Solid

RE: RE: Solid

Ah, maybe I am missing something here, but....

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Prior to the take-over of CGA Mining (not yet complete 100%), BTO operated only in Nicaragua.  Since the end of the civil war it has been a stable country that needs jobs and foreign investment in order to prosper.  BTO is one of the country's largest employers and has excellent relations with the government.  I'm sure it doesn't hurt that the la Libertad mine is located in the President's home town.  So I can't see how one says that BTO has any risk?  Sure BTO is building a mine in Africa, in Namibia.  Have not heard anything about al Qaeda rebels in Namibia at any point.

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On top of that this BTO team has clearly "been there, done that!"  They built Bema from a small junior to a 3 Billion market cap.  So far the BTO team is at it, doing it again.  So plenty of reasons for BTO to be rated much higher in value.   Sure EDV has a few Bema cast-offs, but not the same cohesive team that can say they took $50Million to $3Billion.

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Now that said, once the situation gets stabilized in Mali, or investors get over their geographic ignorance, then a premium will be given to the Tabikoto project.  I think also, investors are going to want to see that EDV can finish the build and deliver the 150,000 opy level they promised.  The bad reputation of the plant doesn't go away because they changed the design at the entrance.  remember that mine was built by Nevsun and they failed and shut it down - so it has a long history of disappointment.  A couple of quarters of on target production should help that reputation a lot.

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Also EDV is getting slammed because of the new Tax in Cote d'Ivoire.  Many knee-jerk reaction posters have been flooding BBS with messages suggesting that the mine will never be built and EDV will abandon the project.  I don't think the economics on this project as so tight that some extra taxes will knock it out of the box.  The company seems to be progressing with the build.

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So once that situation gets negotiate with the government and the knowledge seeps out to investors, that drag on EDV's share price should vanish.  With the projects in the pipeline, EDV has one of the best growth profiles of any mid-tier company.  Key will be the 3 PEAs that come out and EDV's ability to self-fund those projects and grow internally.  If it looks like the costs on those PEAs will be too high, then that could hurt - otherwise they add credence to the growth story and should bring investor interest.

Bullboard Posts