Endeavour Mining (TSE:EDV)

News and comment on investment in mining
Forum rules
Please read: 24Knews Forum Rules

Endeavour Mining (TSE:EDV)

Postby Pixel8r » Wed Feb 03, 2010 3:47 pm

Endeavour Financial - http://www.endeavourfinancial.com/s/Home.asp

Endeavour Financial is an independent merchant banking company focused on the global natural resources sector. Endeavour offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies as well as some oil and gas companies.

It is their stated aim to be working to towards building a mid tier gold miner by combining various junior miners. They have recently completed the first stage in the strategy by buying a stake in Etruscan Resources (153,123,000 common shares at C$0.30 per share for a cost of US$43 million). They announced on Monday their next stage which is a purchase of 37.88% acquired interest in Crew Gold Corporation (CRU.TSX; CRU.OSE).

I hold some of these and am excited about their prospects as this gold bull develops and attracted by the discount to book value and past results.

Here's a link to the stockhouse BB on endeavour - http://www.stockhouse.com/Bullboards/SymbolList.aspx?s=EDV&t=LIST

Here's a chart for EDV - Link for updated chart

Image
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Tue Feb 09, 2010 11:13 pm

Cloned from a stockhouse post;

From the recent webcast:

Tangible Assets

90 mil Merchant Banking Related Investments at Market Value
175 mil Market Value of Etruscan and Crew Equity Investments
10 mil Cash

275 mil Total Tangible Assets

100 mil Approx shares out

Tangible Assets per share = $2.75

EDV has no debt, so it is selling at a big discount (40%) to tangible assets per share using an EDV share price of $1.70. Total assets are now about 75% focused on gold, so the price of gold and how well these new mines can produce and manage cash costs per share are now the big drivers for EDV's share price.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Fri Feb 12, 2010 10:25 am

Endeavour now has a Net Asset Value of $3.41 per share while the share price is $1.83. This share is selling at a large discount to it NAV which is rising. Earnings from the last quarter were $0.25 per share.

Their recent 2nd leg accusation of their 3 legged gold merger Crew Gold (TSX:CRU) looks to be a good buy.

This share looks to me that it will at least double over the next year, I am looking forward to the dividends kicking back in.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Mon Feb 15, 2010 4:51 pm

Endeavour Financial Announces Q2 Results

By Eric Pratt
Feb, 12th

Endeavour Financial announced its quarterly results on February 11, with management repeating to the market that they intend to merge several junior gold producers together, as they see this as the most undervalued part of the gold market.

Their own stock – EDV-TSX – is a perfect example.

Endeavour announced in its Q2 report that the company’s NAV (Net Asset Value) was $3.41, while the stock was trading at $1.75 – basically a 50% discount. Now more than 70% of their portfolio is two junior gold producers in West Africa – Etruscan Resources and Crew Gold.

The prize in their Gold Strategy is a re-valuation, much like Endeavour got with New Gold (NGD-TSX) two years ago when 3 junior producers – Peak Gold, New Gold and Metallica Resources – were all trading at 0.7 NAV. After the merger the company was able to get to achieve a 1.5x NAV valuation.

While Endeavour’s financial statements showed their book value has increased by $98 million in the last 9 months, their stock has not kept up. Investors can actually buy Endeavour for cheaper than the valuation of just their two major gold positions.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Book Value $4.16

Postby Pixel8r » Mon Feb 15, 2010 4:53 pm

EDV owns:

1. 810,083,211 CRU shares at $.215 as of Friday = C$174 million.
2. 179,438,789 EET shares at $.39 as of Friday = C$70 million.

Total market value of EDV's gold strategy investments = C$244 million.

With 97 million issued and outstanding shares the value of the gold strategy investments, per share, is $2.51.

Adding the per share value of EDV's advisory business as at Dec. 31, 2009(C$.57) and the book value is $3.08.

During the CRU conference call EDV said that it had approximately US$10 in cash, and US$90 million in their general merchant banking portfolio, after the purchase of CRU. The per share value of this cash and the general merchant banking portfolio is approximately C$1.08.

Adding the per share value of EDV's gold strategy portfolio, plus advisory business, general portfolio, and cash the total, per share, book value is $4.16.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Mon Feb 22, 2010 4:58 pm

I have just noticed there is massive volume in this one today. Someone has just bought 440,200 shares in one hit (16:40 @ $1.9)

This is usually a good sign that the share is about to take off.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Mon Feb 22, 2010 5:03 pm

From: http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=27951423&l=0&r=0&s=EDV&t=LIST

EDV owns:

1. 810,083,211 CRU shares at $.23 as of Friday = C$186 million.
2. 179,438,789 EET shares at $.40 as of Friday = C$72 million.

Total market value of EDV's gold strategy investments = C$258 million.

With 97 million issued and outstanding shares the value of the gold strategy investments, per share, is $2.66.

Adding the per share value of EDV's advisory business as at Dec. 31, 2009(C$.57) and the book value is $3.23.

During the CRU conference call EDV said that it had approximately US$10 million in cash, and US$90 million in their general merchant banking portfolio after the purchase of CRU. The per share value of this cash and the general merchant banking portfolio is approximately C$1.08.

Adding the per share value of EDV's gold strategy portfolio, plus advisory business, general portfolio, and cash the total, per share, book value is $4.31.

EDV continues to win mandates for its investment banking operations, and WWI should soon be public as the market for juniors also becomes healthier again. Given the concentration of assets in its gold strategy portfolio the market now has transparency concerning EDV's investments, and with the completion of the CRU acquisition it is also increasingly clear what EDV's intentions are concerning its gold strategy. It is working on combining undervalued junior producers to create a million ounce producer to achieve a re-rating.


"The prize in their Gold Strategy is a re-valuation, much like Endeavour got with New Gold (NGD-TSX) two years ago when 3 junior producers – Peak Gold, New Gold and Metallica Resources – were all trading at 0.7 NAV. After the merger the company was able to get to achieve a 1.5x NAV valuation."

http://resourcexinvestor.com/news.php?id=7921
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Fri Feb 26, 2010 2:37 pm

This shares is still a massive bargain. Currently trading at $2.10, it CRU investment alone now is worth $2.42 per share. All you need to do is buy and wait for the next results in April, when the CRU investment will show up in the reported book value.

Sir_Holler over at stockhouse has calculated the current book value to be $4.82;

http://www.stockhouse.com:80/Bullboards/MessageDetail.aspx?p=0&m=27965999&l=0&r=0&s=EDV&t=LIST
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Mon Mar 01, 2010 9:56 am

Another good sign, director buying.

  • Feb 25/10 Koutsouras, Bill, Acquisition in the public market 100,000 $2.000
  • Feb 24/10 Koutsouras, Bill, Acquisition in the public market 15,000 $1.870
  • Feb 23/10 Koutsouras, Bill, Acquisition in the public market 85,000 $1.850
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Mon Mar 01, 2010 3:54 pm

Income for the last 4 quarters = $1.05, which equals a P/E of 2.17.

This has much further to go, buy, buy, buy. ;)
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Mon Mar 01, 2010 5:20 pm

Pixel8r wrote:I have just noticed there is massive volume in this one today. Someone has just bought 440,200 shares in one hit (16:40 @ $1.9)

This is usually a good sign that the share is about to take off.

Share price a week ago = $1.9

Share today = $2.52

EDV book value as of today is around $5.52, so this is still trading at a massive 50%+ discount to book.

TSX:CRU which they bought 811,213,211 shares of at $0.29 is now trading at $0.38. :thumbup:
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Wed Mar 03, 2010 12:50 am

Others catching on to what I noticed last week.

Merchant bank undervalued compared to its investments

West Africa gold companies will drive gains for natural-resources bank

Endeavour Financial (TSX: T.EDV, Stock Forum) is a Canadian merchant bank that has always traded at a discount to its Net Asset Value (NAV), but now the company trades at a discount to the value of just one of its investments – Crew Gold (TSX: T.CRU, Stock Forum).

The Crew Gold position alone is worth 10% more than the current share price - $214.67 million, while EDV’s market capitalization of $233 million, based on a $2.41 share price.

This market anomaly recently happened as Endeavour’s US$92 million investment in Crew Gold – which was completed only one month ago, in January 2010 - has more than doubled from 12 cents to its current 26 cents.

As a merchant bank, Endeavour Financial is a hybrid company. The majority of its value lies in what is effectively a closed-end fund of natural resource equity holdings, virtually all publicly traded. The rest of the value lies in Endeavour’s merchant bank, which provides advisory services to many of these same natural resource focused companies, and generates fees from arranging equity and debt financings as well as merger & acquisition advice.

...

Summary

EDV is trading at a significant discount to the sum of its identifiable assets. The Crew Gold position alone is worth 10% more than the current share price. The sum of the investment portfolio, taking a discount for EDV’s fees, is worth $3.80, a 90% premium to the current share price. Including a fair value for the advisory business would increase that to over 120%.

At the current EDV price the market seems to be putting a value on that business of negative C$200M. Not only does the current valuation discount seem excessive, but the opportunity for the NAV to expand both through the appreciation of the existing underlying assets and through additional deals/investments seems likely.

Finally, the unique investment model that EDV provides equity investors, along with their solid long-term record of value creation (NAV compounded a net 50% p.a. from 2002-2007 before being admittedly pummeled in 2008) would leads this analyst to believe that a premium to NAV should at some point be warranted.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Mon Mar 08, 2010 11:57 am

DJ Severstal To Make $400M Bid For Crew Gold Next Week - Report

Posted on: Sun, 07 Mar 2010 06:54:05 EST

Russian steelmaker OAO Severstal (CHMF.RS) will formalize a $400 million bid for London-based gold miner Crew Gold Corp. (CRU.T) next week, The Independent On Sunday reports without citing sources.

Severstal must make a formal offer for the entire company after increasing its stake in Crew to 26.59% - above the minimum threshold before the company is required to make a formal offer under Canadian law.

However, rival shareholder Endeavour Financial Corp. (EDV.T) has amassed more than 40% in Crew by acquiring shares in Norway, the paper reports. Crew is listed in Oslo, Toronto and Frankfurt. Under Norwegian law, Endeavour isn't required to make a formal bid, the newspaper reports.

The paper reports that Severstal and other minority shareholders have complained to Canadian regulators that Endeavor's shareholding is against the spirit of takeover rules.

Endeavor isn't expected to accept Severstal's offers since it represents less than what Endeavor paid for the stock, the newspaper reports.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby DoctorSolar » Thu Mar 18, 2010 3:53 pm

EDV seems to be stuck between 2.25 and 2.50 yet their main holdings seem to be up and away.

What's going on?

Their CRU position alone is worth more than their current market cap :shock:
User avatar
DoctorSolar
Silver Eagle Member
Silver Eagle Member
Progress to next rank:
24.8%
 
Posts: 155
Joined: Sun Dec 06, 2009 6:27 pm

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Thu Mar 18, 2010 5:06 pm

DoctorSolar wrote:EDV seems to be stuck between 2.25 and 2.50 yet their main holdings seem to be up and away.

What's going on?

Their CRU position alone is worth more than their current market cap :shock:

It's just taking a break, as it has put on around 45% over the last month or so. :)

It can only be a matter of time before this takes off again. If you add their CRU & EET together they are already trading at a massive discount to just them, the rest of the company and other holdings come for free. There long term plan is to merge three African juniors together to make a mid tier, which would get the merged company a better price/NAV ratio.

Should be very good when they next update their accounts, NAV is going to surge. Buying EDV is a good way to buy juniors on the cheap.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby DoctorSolar » Thu Mar 18, 2010 5:10 pm

Seriously folks what on earth is going on with this stock.
CRU is up over 20% today yet EDV is down! :shock:
EDV is now trading at less than 50% of its NAV.

EDIT: sorry posted this just after pix replied above. Yeah this one surely has to take off sometime soon.
Last edited by DoctorSolar on Thu Mar 18, 2010 5:19 pm, edited 1 time in total.
User avatar
DoctorSolar
Silver Eagle Member
Silver Eagle Member
Progress to next rank:
24.8%
 
Posts: 155
Joined: Sun Dec 06, 2009 6:27 pm

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Thu Mar 18, 2010 5:15 pm

DoctorSolar wrote:Seriously folks what on earth is going on with this stock.
CRU is up over 20% today yet EDV is down! :shock:
EDV is now trading at less than 50% of its NAV.

You been buying EDV is now up 6% :lol:
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby DoctorSolar » Thu Mar 18, 2010 5:23 pm

Pixel8r wrote:
DoctorSolar wrote:Seriously folks what on earth is going on with this stock.
CRU is up over 20% today yet EDV is down! :shock:
EDV is now trading at less than 50% of its NAV.

You been buying EDV is now up 6% :lol:

:D Hey pix. Yeah just saw that.
I got in a few weeks back so happy days.
Folks finally seem to be waking up to how cheap this thing is.
User avatar
DoctorSolar
Silver Eagle Member
Silver Eagle Member
Progress to next rank:
24.8%
 
Posts: 155
Joined: Sun Dec 06, 2009 6:27 pm

Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Thu Mar 18, 2010 5:39 pm

DoctorSolar wrote:
Pixel8r wrote:
DoctorSolar wrote:Seriously folks what on earth is going on with this stock.
CRU is up over 20% today yet EDV is down! :shock:
EDV is now trading at less than 50% of its NAV.

You been buying EDV is now up 6% :lol:

:D Hey pix. Yeah just saw that.
I got in a few weeks back so happy days.
Folks finally seem to be waking up to how cheap this thing is.

I put out a buy signal on this on the 22nd Feb, just before the recent surge. :thumbup:

viewtopic.php?f=2&t=143&start=80#p2937
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: Endeavour Financial (TSE:EDV)

Postby DoctorSolar » Thu Mar 18, 2010 5:58 pm

Pixel8r wrote:I put out a buy signal on this on the 22nd Feb, just before the recent surge. :thumbup:

http://www.24knews.com/viewtopic.php?f= ... t=80#p2937

Nice call. Just read on stockhouse a calculation that:

Current CRU Price=$3.53 per EDV Share

Is that right?
User avatar
DoctorSolar
Silver Eagle Member
Silver Eagle Member
Progress to next rank:
24.8%
 
Posts: 155
Joined: Sun Dec 06, 2009 6:27 pm

Next

Return to Mining Equity Investment

Who is online

Users browsing this forum: No registered users and 1 guest


cron