Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) earned a repeat 'Buy' rating and a price target of C$52 from Canaccord Genuity (TSX:CF, LSE:CF) after multiple first-quarter metrics for the miner came in ahead of the firm’s own estimates.
The firm’s adjusted earnings per share of $0.49 beat Canaccord’s projection of $0.42, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $407 million easily topped Canaccord’s estimate of $338 million.
“We attribute the beat to a strong operating quarter with higher production, sales, realized gold price, and lower operating and [general and administrative] costs versus our forecasts,” the investment bank wrote.
Shares of Endeavour gained 1.7% in Toronto to C$32.42 on Thursday and improved 2.3% to US$25.22 in New York. In London on Friday, the FTSE 100-listed stock was 0.9% higher at 2,040p.
READ: Endeavour Mining highlights rising adjusted net earnings, cash returned to shareholders in 1Q results
The miner also exceeded expectations in production, reporting 357koz compared to Canaccord’s 334koz estimate, and its cash costs of C$745/oz were lower than the firm’s projection of $798/oz.
“All of Endeavour's assets had stronger-than-expected or in-line performance versus our estimates with the exception of Wahgnion, which was slightly below our forecast,” the firm said.
Looking forward, Cannacord projects annual production for Endeavour of 1,359 koz at all-in sustaining costs (AISC) of C$935/oz. That’s within the miner’s guidance of between 1,315koz and 1,400koz of production, but exceeds its AISC projection of between $880/oz and $930/oz.
Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire and Burkina Faso, and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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