Endeavour Mining plc T.EDV

Alternate Symbol(s): EDVMF

Metals & Mining Gold

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.

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Endeavour Mining plc

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Post by echo2on Mar 19, 2021 9:46am

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Post# 32836875

Scotia Very Positive - $51.00 Target

Latest Research (March 19, 2021):

OUR TAKE: Positive. We have updated our estimates following the release of EDV's Q4 results. The company reported Adj EPS of $1.02 vs. cons of $0.90, and CFPS of $1.91 (vs. cons of $1.95). Q4/20 production of 344koz was pre-reported. FY2020 AISC of $873/oz was within the FY guidance range, with AISC improvements due to stronger performance across all mines, specifically at Hound (due to higher grades) and Boungou (due to mining restart). This marks EDV’s eighth consecutive year of achieving annual production and AISC guidance.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.

EDV paid its first dividend of $60M on Feb 5/21 and announced an NCIB program, whereby EDV may purchase up to 12M shares (up to 5% of total issued and outstanding shares). EDV ended Q4 with a strong balance sheet and $75M in net cash, having generated ~$190M in cash in Q4/20.
Following model updates, our SO rating and C$51 PT are maintained.We continue to forecast solid FCF in
2021; at spot, we expect EDV to generate $692M in 2021 (or a FCF yield of ~13%) and $645M in 2022 (this is assuming capex spend commencing in Q1/2022 at Fetekro and Sabodala/Masawa expansion).