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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

Comment by marben100on Feb 02, 2022 4:43am
288 Views
Post# 34388056

RE:What!

RE:What!Thanks for highlighting that - hadn't spotted it in the announcement. However, I can see the sense. The company says:

 

In order to protect Endeavour against gold price volatility during its upcoming construction phase...


The key point is that over this quarter, the Company is likely to announce a significant CAPEX  programme, for (at least) Fetekro and Sab-Mas Phase 2. As the announcement says, whilst the gold price remains at or around current levels they can both fund that and continue to make substantial shareholder returns from cashflows. However, were the gold price to fall substantially without any hedging, the company would either have to curtail its shareholder distributions or run into net debt, neither of which it wants to do.

In my fairly long experience of mining investments, "better safe than sorry" is a good policy, so I support this move by Endeavour, whilst they have a major CAPEX programme underway.

Cheers,
Mark


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