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Endeavour Mining plc T.EDV

Alternate Symbol(s):  EDVMF

Endeavour Mining plc is a United Kingdom-based senior gold producer with operating assets across Senegal, Cote d’Ivoire and Burkina Faso. The Company has a portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa. It operates mines that include Hounde Mine, Ity Mine, Mana Mine and Sabodala-Massawa Mine. The Hounde Mine is located approximately 250 kilometers (kms) southwest of Ouagadougou, the capital city of Burkina Faso. The Hounde Mine is owned by the Company (90%) and Government of Burkina Faso (10%). It owns approximately 85% of Ity Mine, which is located 480 kms northwest of Abidjan in southern Cote d'Ivoire. 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. It owns approximately 80% of the Lafigue project. Its other projects include Kalana, Bantou and Nabanga.


TSX:EDV - Post by User

Bullboard Posts
Comment by December3on Jan 27, 2013 6:51pm
248 Views
Post# 20896883

RE: The debate about a dividend..

RE: The debate about a dividend..

OK, I'm going to be un-PC here... but I think what this debate over a dividend demonstrates is the misunderstanding of many of the capital intense nature of starting up a mine and employing the proper  investment strategy  - namely a growth company - to a junior miner. Yeah, the Barricks, Newmonts, AngloGold Ashantis and Goldcorps of the world should pay a dividend - not the juniors with 1/10th the production.

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>>>How long should we wait for the market to  recognize the growth story?<<<

You wait as long as it takes to get the double, triple or four-bagger.  er, unless one is an "efficient market" theorist who believes that the growth is already factored in.  I think the reasons you suggested all demonstrate why EDV is under-valued and with time will get fixed. So here-in lies the opportunity - buy while perception is skewed.  It just requires patience.

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>>>What if a low-ball takeover happens in the meantime, robbing us of our reward?<<<

Hey, that can happen, but I suspect it will be a nice +35% to +45% premium to a weighted 20-day moving average.  That will be a nice bump and "reward" for those that didn't employ a buy & hold strategy and are sitting on shares with a cost of over $5.  I think management is smarter than selling out here at a low ball offer.  Don't we have a shareholder's rights plan anyway?  But hey, I already got a nice premium for AVR shares....so doing it again will be gravy.

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>>>With the current cash flow, this company can continue to grow AND pay a worthwhile dividend of 10c or so <<<

First, I'd like to see someone dig into the financials and NRs and demonstrate, with real numbers how EDV has the cash for a divi?   But, Huh?  How fast do you think one is going to get their money back by capturing a 10-cent dividend per year?  Once the market "wakes up" to EDV's growth we should easily double in price.  At your proposed dividend rate, doubling your money would take 18-years.  I'll take a double in the share price in the next 12-18 months instead.

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>>>This will give a big boost to the share price as it will attract a much wider range of investors.<<<

Those who are looking for a "re-rating" are going to dump EDV if its strategy is to pay dividends.   I think paying a dividend tends to attract those looking for stability and cash flow, not growth.  But to suggest that dividends would increase share price and allow for better equity fund-raising?  Huh?  So you want a dividend so in the future the company can further dilute your position by issuing MORE SHARES?  The beauty of EDV's strategy is that is is self-funding from cash flow and doesn't need to dilute shareholders.  All of the growth goes directly to shareholders.

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>>>For an example, look at MMT last year, an oil producer in Nigeria.<<<

Huh? Your example is an oil & gas company?  That is like comparing apples to skateboards.   I sure hope guys like you aren't able to  "convince management" and in essence wreck this great growth story for some piddly dividend.  Such a shame that anyone would be willing to sell out  a multi-bagger investment for a few pennies worth of dividend.

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jmho

Bullboard Posts