Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF)’s entry into the FTSE 100 on 21 March should be a positive catalyst for the shares, according to Berenberg.
The broker has a price target of 2,600p/C$44 and highlights the dividend potential with a yield of 2.4% on a minimum payout this year of US$150mln, though the broker thinks it can do more than this.
“We believe that, with US$535mln of FCF and a net cash position, Endeavour is well positioned to pay above this level.”
The gold miner has 43% of its assets in Burkina Faso where there was a coup in January and although this has not affected production to date it is still a risk but Berenberg remains a 'buyer' at the current price of 1,940p for the potential of its new projects and superior margins.