Endeavour Mining plc T.EDV

First quarter results

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Endeavour Mining Capital - first quarter results The Toronto Stock Exchange: EDV GEORGE TOWN, GRAND CAYMAN, Jan. 13 /CNW/ - Endeavour Mining Capital Corp. ("Endeavour" or "Corporation") recorded a net income of US$19.8 million or US$0.86 per share (or approximately CDN$1.02 per share) for the first quarter ended November 30, 2004. This compares with net income of US$26.9 million or US$1.54 per share (or approximately CDN$2.00 per share) reported for the quarter ended November 30, 2003. The Corporation's continued profitable financial performance reflects the strength of its growing merchant banking business, where it is providing financial and intellectual capital to a growing list of clients. The Corporation reported total investment income of US$22.6 million for the first quarter with operating expenses of US$2.8 million, leading to an operating margin of 88% during the period. The Corporation captured US$11.7 million of realized gains, interest, loan fees and dividends and recorded unrealized gains of US$10.9 million during the quarter. During the first quarter, the Corporation's merchant banking positions continued to perform well and certain of these holdings were liquidated. As of November 30, 2004, the Corporation's investment capital base has grown to US$93.3 million (or approximately CDN$4.79 per share), which gives us the financial resources to augment our business strategy to take advantage of growth opportunities in a broader range of natural resource sectors. The core merchant banking positions remain metals-based and a number of special situations in coal, platinum and oil and gas have been recently added. Endeavour Mining Capital Corp. is a publicly traded merchant banking company focused on the global natural resources sector. The Corporation offers a unique combination of financial and intellectual capital to help build companies and create shareholder value. Our shares are listed on the Toronto Stock Exchange under the symbol EDV and offer a distinctly different way to invest in the natural resources sector. For additional information, please visit our corporate website www.endeavourminingcapital.com. On behalf of Endeavour Mining Capital Corp. "Bill Koutsouras" Chief Financial Officer, Director & Secretary The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking statements relating to the future performance of Endeavour Mining Capital Corp. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation's filings with the appropriate securities commissions. << ENDEAVOUR MINING CAPITAL CORP. Consolidated Balance Sheets (Expressed in Thousands of United States Dollars) November 30, August 31, 2004 2004 (Unaudited) ------------ ------------ ASSETS Cash and cash equivalents $ 12,877 $ 5,301 Investments (cost: Nov.30, 2004 $48,107- Aug.31, 2004 - $45,995) 82,536 69,871 Receivables and other assets 317 119 ------------------------------------------------------------------------- $ 95,730 $ 75,291 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES Investment advisor fees payable $ 140 $ 115 Performance fees accrued 2,192 1,551 Accrued expenses and other liabilities 80 104 ------------------------------------------------------------------------- 2,412 1,770 ------------------------------------------------------------------------- ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital 51,745 51,745 Warrants 240 240 Contributed surplus 536 84 Retained earnings 40,797 21,452 ------------------------------------------------------------------------- 93,318 73,521 $ 95,730 $ 75,291 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ENDEAVOUR MINING CAPITAL CORP. Consolidated Statements of Operations & Retained Earnings (Expressed in Thousands of United States Dollars, except per share amounts) Three months ended November 30, 2004 2003 (Unaudited) (Unaudited) -------------------------- INVESTMENT INCOME Net realized gain on investments $ 11,476 $ 5,864 Change in net unrealized appreciation/depreciation of investments and foreign currencies 10,883 26,609 Interest 225 19 Dividends, net of withholding taxes 5 - Loan facility fees 27 - ------------------------------------------------------------------------- 22,616 32,492 ------------------------------------------------------------------------- EXPENSES Performance fee 2,192 5,001 Investment advisory fee 405 312 General office and administrative 183 200 Professional fees 39 43 ------------------------------------------------------------------------- 2,819 5,556 ------------------------------------------------------------------------- NET INCOME 19,797 26,936 RETAINED EARNINGS, BEGINNING OF PERIOD, AS PREVIOUSLY REPORTED 21,452 8,003 ADJUSTMENT FOR STOCK-BASED COMPENSATION (452) - ------------------------------------------------------------------------- RETAINED EARNINGS, END OF PERIOD $ 40,797 $ 34,939 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BASIC EARNINGS PER SHARE $ 0.86 $ 1.54 ------------------------------------------------------------------------- ------------------------------------------------------------------------- DILUTED EARNINGS PER SHARE $ 0.85 $ 1.54 ------------------------------------------------------------------------- ------------------------------------------------------------------------- WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING 23,120,578 17,445,945 ------------------------------------------------------------------------- ------------------------------------------------------------------------- DILUTED WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING 23,193,883 17,531,925 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ENDEAVOUR MINING CAPITAL CORP. Consolidated Statements of Cash Flows (Expressed in Thousands of United States Dollars) Three months ended November 30, 2004 2003 (Unaudited) (Unaudited) -------------------------- OPERATING ACTIVITIES Net income $ 19,797 $ 26,936 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Net realized gain on investments (11,476) (5,864) Change in net unrealized appreciation/depreciation of investments and foreign currencies (10,883) (26,609) Increase in receivables and other assets (198) (213) Increase in investment advisor fees payable 25 61 Increase in accrued performance fees 641 1,564 (Decrease) increase in accrued expenses and other liabilities (24) 676 Purchase of investments (10,674) (18,984) Proceeds from the sale of investments 20,368 17,157 ------------------------------------------------------------------------- 7,576 (5,276) ------------------------------------------------------------------------- FINANCING ACTIVITIES Received from the issue of common shares - 19,626 Share issue costs - (1,250) ------------------------------------------------------------------------- - 18,376 ------------------------------------------------------------------------- NET INCREASE IN CASH AND CASH EQUIVALENTS 7,576 13,100 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 5,301 5,840 ------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 12,877 $ 18,940 ------------------------------------------------------------------------- ------------------------------------------------------------------------- >> https://www.newswire.ca/en/releases/orgDisplay.cgi?okey=23835 For further information Vanguard Shareholder Solutions, 1-866-801-0779 or [phone], email: [e-mail]