Endeavour Mining is heading into 2024 in good shape, according to analysts at Barclays, helped by geopolitics and its own efforts.
An upcoming resource upgrade on Tanda-Iguela should trigger NPV upgrades, says the bank while the gold price looks interesting given ongoing elevated geopolitical risk, low current VIX levels and record central bank buying.
“We expect a material increase in total resources at Tanda-Iguela to be announced in December, underpinning its position as EDV's next tier 1 mine development.”
Overall, Endeavour offers triple-digit earning per share growth in growth in 2024, the highest free cash flow yields in the global gold sector and 37% re-rating potential versus the sector.
Options to use the cash are limited other than deleveraging and cash returns to shareholders, adds the broker, which has an 'overweight' view.
Shares in the FTSE 100 gold miner rose 2% to 1,834p.