Endeavour Mining is undervalued vs global gold mining peers, said Barclays
Endeavour said it has met or exceeded production and cost guidance for eight consecutive years
Company
TSE:EDV
Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Côte d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets. A member of the World Gold Council, the company is committed to the principles of responsible mining and delivering meaningful value to people and society.
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Endeavour said it has met or exceeded production and cost guidance for eight consecutive years
Sebastien de Montessus, Endeavour president & CEO commented: “Our listing marks the start of the next phase of our evolution and will see us become the largest pure gold producer on the premium segment of the London Stock Exchange with acce
It is implementing a minimum progressive dividend policy with a target of distributing at least $500 million to shareholders through to fiscal year 2023
The West Africa-focused gold producer said it was 'well-positioned' to meet its production guidance for full-year 2021
Endeavour’s strategy is focused on increasing the quality of its portfolio to establish a leading West African gold producer with long life mines and low all-in sustaining cost (AISC)
The miner produced 344,000 ounces during the three-month period to end December 31, 2020, a 93% increase over the year-ago quarter, at an all-in sustaining cost of US$803 per ounce
The producer has increased guidance to between 1.35-1.475 million ounces to include production from the recently integrated Sabodala-Massawa and Wahgnion mines in West Africa
The document for Kalana in Mali envisages an 11-year project with an average annual production of 150,000 ounces at an all-in-sustaining-costs (AISC) of US$901 per ounce
Teranga shareholders received 0.47 of an Endeavour share for each Teranga share they held, resulting in the issue of over 78.7 million Endeavour shares
Endeavour runs six producing mines across Ivory Coast and Burkina Faso
Agbaou is an open-pit mine with carbon-in-leach processing
Once a mining permit is granted, the process for which is underway, Endeavour will be entitled to lift its stake to 80% from 65% currently, while SODEMI (the state-owned mining company) and the Government of Côte d’Ivoire will each own 10%
The combined company will boost its gold production to more than 1.5 million ounces per year and boast one of the largest exploration portfolios throughout West Africa’s Birimian greenstone belt
The miner also announced an extension to the mine-life at its two flagship operations at the Hounde and Ity mine
A transaction would only be pursued if its board believed that it represented a "compelling value creation opportunity"
The asset is now expected to generate between 130,000 and 150,000 ounces of the yellow metal at all-in-sustaining-costs of between US$680 and US$725 per ounce
Pearson has more than ten years’ experience as an audit partner at Deloitte, including six years as the audit partner responsible for Endeavour, and over 20 years’ experience serving clients in public practice, with a focus on multinational
The firm said 97% of the overall resource at the deposit is classified as indicated, so no further drilling is required to class it as a reserve
Gold prices are currently around US$2,000 an ounce, and if they stay there, Endeavour could achieve a net cash position by the end of the year
The West Africa-focused mining company produced 149,000 ounces of gold at an all-in-sustaining-cost of US$939 per ounce