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 May 14, 2021 9:39am

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Post# 33202543

Scotia Positive Target $51.00 Sector Outperform

Latest Research (May 13, 2021):

OUR TAKE: Positive. Endeavour reported Q1/2021 financial and operating results with production of 347koz (7% higher than our 326koz est; sales: 364koz) with AISC of $868/oz (12% lower than our $989/oz est). Q1/21 adjusted EPS was $0.50, beating our estimate of $0.39 and cons. $0.42. EDV ended Q1/21 with net debt of $162M (cash of $868M with debt of $1.03B). EDV's first dividend of $60M was paid on Feb 5/21 and $13M of shares were repurchased post the quarter-end through the NCIB.

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. We expect solid free cash flow (FCF) in 2021. The company generated $87M in FCF in Q1/21 and at spot, we expect EDV to generate FCF of $765M in 2021 (FCF yield: ~14%) and ~$735M in 2022 (this is assuming capex spend commencing in Q1/22 at Fetekro and Sabodala/Masawa expansion). EDV shares are rated SO with a C$51 price target.