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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

Post by Dale327845on Jan 23, 2024 7:00am
221 Views
Post# 35840317

Buy Buy Buy

Buy Buy BuyPretending to be an analyst here is what I come up with for EDV - '24.  

Numbers taken from latest year end, some from last year , and some I invented (opps not suppose to say that!) .
    Dividend                   $200m
    Share buy back        $70m    (2023)
    Royalties                  $150m
    Capital Expendture  $315m 
    Exploration               $65m
    Tax                           $360m (2023)
                    Total          $1160m
Throw in $40m for office etc.  Gives expences of $1.2 billion.

And with production of 1.25 m oz , and a realized price of ( my estimate for '24) $2200 /oz, together with a more or less cash cost ( all costs that will need to be paid this year - lots of AISC stuff is future cost)  of $800 / oz , that gives, wait for it, a total 'income' of $1.75 billion.  

Add divestments of perhaps $125m and we are left with a stunning $700m, um, left over.  
Now maybe a real analyst would find some more expenses, and be more conservative on realized price ( EDV does have some price protections in place which could lower that number) , but even reducing that by $200m leaves enough to pay off all the debt.  With the analysts having made an ave. target price of $37.58 on early 2023, and 2024 looking quite a little better production wise, and possibly gold price wise; seems the analysts are , if not on the same page, at least in the same ball park.  

So seems to me the present share price is one for the ages.  I have used up my lines of credit, and any 'normal' sources of cash to load up. And have sold some quite loved ( by me, and others) gold companies that don't have the potential for a big change like EDV.   Seems to me a pretty quick 30% jump
back to 'normal' ($30 these days) is at hand.  I am tempted to do a cash advance on my credit card. I figure the upcoming dividend ( Ex Div day 22 FEB 2024) would cover the outrageous CC interest charges for about 3 months.  





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