Analysts at Haywood Securities Inc said they see "attractive" return on invested capital potential for Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF)'s Sabodala-Massawa mine in Senegal.
On April 4, 2022, Endeavour Mining told investors that it will soon launch the construction of its Sabodala-Massawa expansion project in Senegal, supported by a recently completed definitive feasibility study.
Haywood Securities continues to rate Endeavour a ‘Buy’ and the leading West-Africa-focused gold miner’s shares received a $4 boost to $50. Analysts on average target the shares at $43.54. There's plenty of upside potential as Endeavour Mining’s stock currently trades at around $32.21.
In a note to clients Haywood Securities highlighted the company's track record of delivering development projects into production on time, if not before, and on-budget.
“Given the established nature of the infrastructure and workforce we see schedule and budget risks more related to extrinsic factors (e.g., supply chain, and weather) rather than any inherent capacity issues,” said analysts.
Meanwhile, Endeavour Mining has already completed a positive Pre-Feasibility Study (PFS) for both its Fetekro and Kalana projects as part of its focus on organic growth opportunities.
At Fetekro, the firm’s exploration efforts have resulted in the discovery of a project with the potential to become a cornerstone mine with annual production of over 200,000 ounces at low all-in sustaining costs over at least 10 years while boasting robust economics.
“The Fetekro feasibility is due soon, and we believe that time and opportunity cost is lost if development is deferred in any meaningful period, whereby liquidity, projected balance sheet and human resource capacity are considered sufficient to cater for temporally overlapping, but non-identical projects," said the analysts.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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