Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) can reward shareholders with dividends and share buybacks, and drive its market valuation significantly higher - that’s the view of analysts at Berenberg.
The European Bank rates Endeavour as a ‘buy’ with a 2,100p price target, versus the market price of just over 1,500p.
But, the analysts also highlight the need for the gold miner to up the ante, when it comes to shareholder returns.
“A broad theme for gold investors over the past decade (and even before that) has been the need to see excess capital returns from gold miners (and the broad mining universe) in periods of high commodity prices – in effect, the theme is show me the money,” analyst Richard Hatch said in a note.
He added: “we think that the gold sector has sought to create better value for shareholders, but it has not always been successful. 2025 is, for us, Endeavour’s time to show the market the money that it creates from its assets now that capex has rolled away at its major projects (Lafigue in Côte d’Ivoire and the Sabodala-Massawa expansion in Senegal) and deliver excess capital returns in a period of balance sheet de-gearing,”
“We calculate a c5% three-year forward dividend yield and think that Endeavour can complement this with more aggressive share buybacks over the course of 2025, with more on buybacks to come with its 2024 results, we think.”