Endeavour Mining (TSE:EDV)

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Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Tue May 11, 2010 3:44 pm

Endeavour Financial second quarter results podcast;

http://edg1.vcall.com/2010/02/11/Endeav ... esults.mp3

From the Q&A in their podcast they paid $81 (CRU) & $107 (EET) per ounce for reserves in the ground in the two west african juniors they bought into recently. :thumbup:

Latest investor presentation which explains their strategy of combining junior gold producers and the value creation benefits.

http://www.endeavourfinancial.com/i/fla ... ar2010.swf
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Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Fri May 21, 2010 5:22 pm

Here's a good summary of EDV I found on stockhouse;

Endeavour Financial Corporation (EDV, TSX)

Last week Endeavour reported their quarterly results which were impressive. Revenue was US$241 million and net income US$213.5 million or US$2.20 per share. Nine month earnings are $2.88 and with the stock trading at CDN $2.60, EDV looks like one of the best undervalued stocks out there right now, trading at less than 1x earnings for one of the most profitable companies in the hottest sector of the market - GOLD!

Endeavour's mandate last year was to enhance their business model from "resource merchant banker" to "resource merchant banker and developing intermediate gold producer." This strategy has been paying off in spades. The gold producing side of the business represents US$454 million in asset value while the merchant banking side represents US$59 million.

These good quarterly results are primarily due to investments in two West African gold producing companies.

Over the past quarter, EDV increased their ownership of the high flying Crew Gold Corp. and now holds 43.21% of the company. EDV also holds 55% of Etruscan Resources. Both these assets represent a US$453.7 million valuation on EDV's books while the acquisition costs were US$196.6 million.

It's clear that the market at large is grossly discounting EDV's value as a gold producer and as such, EDV's shares seem like a conservative and astute buy.

It's safe to say that Endeavour was misunderstood by the market when they were primarily involved as resource merchant bankers. They always traded at a discount. Even when the resource market was red hot, EDV's share price was discounted by 10% to 20% compared to their net asset value.

Right now the discount is more like 50%. And that's with significant ownership in two gold producing mines operated by Crew Gold and Etruscan Resources.

When you factor in the valuation of Crew and Etruscan together versus other junior producers in their peer group you see a glaringly steep valuation discount attributed to those companies and respectively Endeavour shares. These two large positions account for 88% of Endeavour's capital so the market can now see what they own. This should compel investors to buy Endeavour now that it's obvious what they own- which should in turn reduce the discount moving forward.

For example, Crew and Etruscan combined have a market cap of $768.65 million and a production of 265,000 ounces of gold. Recently, a large brokerage firm listed a select group of 9 junior gold producers whose average 2010 production was about 269,000 ounces very nearly the same as Crew and Etruscan combined. The average price/net asset value ratio (P/NAV) in their coverage universe was 1.52.

Endeavour has a goal of becoming a 1 million ounce producer and given their large stakes in Crew and Etruscan, they've made a good first step. EDV's P/NAV is 0.59 which, if categorized as a junior producing gold company, would be considered ridiculously cheap.

No matter how you look at it, Endeavour as a resource merchant banker or as a producing gold company is trading at a steep discount.

Neil Woodyer, Chief Executive Officer summed it up best:

"Our gold strategy has had a successful start and its success has transformed our company. Over the last 12 months, our net tangible assets have grown from US$165 million to US$479 million and 88% of our capital is now strategically invested in gold producing companies. Endeavour's advisory team remains active and has generated US$11.2 million of fee revenue so far this fiscal year. This team provides the manpower, skills and market & industry intelligence to drive the primary gold investment business. We will continue to focus on implementing the gold investment strategy to build shareholder value."

Endeavour is the safest way I know of maximizing your leverage into growth oriented gold companies while maintaining low levels of risk under the astute eye of EDV's merchant bankers. It's interesting to note that when EDV traded at its all time high of $11.19, that price represented a slight premium to the NAV. Clearly there's a prospective upside right now.

http://www.stockhouse.com/Bullboards/Me ... 0&pd=2&r=0
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Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Mon Jun 28, 2010 1:18 pm

Halifax, Nova Scotia and George Town, Grand Cayman, June 28, 2010 - Etruscan Resources Inc. (“Etruscan”, TSX:EET) and Endeavour Financial Corporation (“Endeavour”, TSX:EDV) are pleased to announce that they have entered into a definitive arrangement agreement by which Endeavour will acquire all of the shares of Etruscan that Endeavour does not already own. Endeavour currently owns 55% of Etruscan and will acquire the remaining 45% of Etruscan via a court-approved plan of arrangement (the “Arrangement”).

Under the Arrangement, Etruscan shareholders will receive total consideration of C$0.48 per Etruscan share comprised of C$0.26 in cash plus 0.0932 of an Endeavour share, representing a premium of 33% using the 20-day volume weighted average prices of Endeavour and Etruscan on the TSX for the 20 trading day period ending June 25, 2010.

The cash component of this transaction will utilize approximately C$43 million of Endeavour’s US$100 million revolving Acquisition Facility announced on June 25, 2010.

Click to download complete press release
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Re: Endeavour Financial (TSE:EDV)

Postby Pixel8r » Wed Sep 08, 2010 6:35 pm

Current share price $2.51, book value $4.07.

=======================================================================
Endeavour Reports Net Income of US$118.6 Million for Year Ended

June 30, 2010
=======================================================================

George Town, Grand Cayman, September 8, 2010 -- Endeavour Financial Corporation ("Endeavour" or the "Corporation") today reported revenue of US$158.2 million and net income of US$118.6 million or US$1.23 per share for the year ended June 30, 2010. The financial performance was primarily the result of successful investments in two West African gold producing companies.

At June 30, 2010 the Corporation had gold strategy investments valued at US$297 million and general merchant banking investments of US$33 million. The Corporation's book value was US$375 million or approximately CDN$4.07 per issued and outstanding share.

During fiscal 2010, the Corporation invested a total of US$198 million to acquire 55% ownership of Etruscan Resources Inc. ("Etruscan") and 43% ownership of Crew Gold Corporation ("Crew Gold"). As of June 30, 2010 these investments had appreciated in market value to US$297 million and thereby generated US$98.5 million of investment income for the year. In addition, during the year the Corporation generated US$49.5 million of investment income on its general merchant banking resource investments and US$10.3 million of Advisory fee revenue for services provided to clients...
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Sun Nov 07, 2010 12:10 pm

Endeavour Financial has recently changed their name to Endeavour Mining, so I have changed the name of this thread. They have kept the same symbol on the TSE.

With their name change they have dropped of the CREST settlement system, so are no longer able to be held in an ISA. I am being told that I am going to be sent a certificate for the stock.

They have also restructured their website to reflect the fact that they are now specialising more on mining with their purchase of the two West African miners.

http://www.endeavourmining.com/
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Mon Nov 29, 2010 6:57 pm

New website up for Endeavour Mining now at http://www.endeavourmining.com/s/Home.asp
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Mon Feb 28, 2011 11:25 am

Found this on stockhouse.com, from a gold newsletter;

Endeavour Mining reports that its Youga Mine in Burkina Faso, which it acquired a 90% interest in when it completed the purchase of Etruscan resources in September 2010, produced 82,400 ounces of gold in 2010. The production makes 2010 a milestone year in Endeavour’s conversion from a purely merchant banker to a producing gold company.

For 2011, the production from the Youga Mine is expected to remain at about the same level as 2010, or 84,000 ounces. cash costs should also be about the same, $600 per ounce, excluding royalties. Assuming an average gold price of $1,350, which may be a bit rich, the mine is forecast to generate US$32 million of free operating cash during for 2011.

Endeavour also repaid the US$28 million Youga project debt facility, making it effectively debtfree. At year-end, the company had cash and marketable securities of about US$200 million and an untapped acquisition credit facility of US$100 million.

On the exploration front, Endeavour has budgeted US$10 million to drill more than 50,000 meters in 2011, and the program has already begun. The goal is to increase proven and probable reserves at Youga, which, as of december 2009, stood at 5.9 million tonnes at an average grade of 2.5 g/t gold, or 473,000 ounces, assuming a $700 gold price.

An updated resource estimate was expected by the end of december 2010, but the company has not yet commented on the delay or when it is now expected. last year’s exploration along the Youga Gold Belt discovered new drill targets, including not only extensions to the A2NE and Zergoré deposits, but also a new “Triple ‘A’ Zone” to the east of the main pit.

That Endeavour is fully committed to its role as a gold producing company should no longer be in doubt: The company has agreed to sell its 47.3% interest in rockwell diamonds back to rockwell, and is also in the process of spinning out its Namibian rare earth assets into a new, publicly traded entity.

On the gold front, the company is conducting a 20,000-meter drill program on its Agbaou Gold project in the ivory coast, and is also conducting engineering and technical studies to optimize the project’s feasibility study. And the company hopes to make good use of its cash hoard, with several gold potential gold production acquisitions now under evaluation in Africa, South America and other regions.

Endeavour’s management team believes in gold. They expect the price of the yellow metal will continue to rise in coming years, and their goal is to leverage that gain through the aggressive growth of gold production through development and acquisitions. I don’t know of any group more qualified to undertake that mission, and so Endeavour remains a strong hold.

Endeavour Mining Corporation

Recent Share price:c$2.77
Shares Outstanding:113.3 million
Market cap:c$313.8 million
Shares Outstanding Fully diluted:159.2 million
Market cap Fully diluted:c$441.0 million
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Re: Endeavour Mining (TSE:EDV)

Postby Gold_bee » Tue Apr 19, 2011 11:25 am

Endeavour is my favorite the chart says it all. (The chart would be here if I knew how)
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Tue Apr 19, 2011 11:37 am

Gold_bee wrote:Endeavour is my favorite the chart says it all. (The chart would be here if I knew how)

Classic swiss stair. For info on how to post charts look here - viewtopic.php?f=7&t=121

Image
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Mon May 30, 2011 7:12 pm

EDV Have released some good drill results for Youga;

http://www.endeavourmining.com/i/pdf/2011-05-30_NR.pdf
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Sun Jun 05, 2011 3:35 pm

Here's a presentation by Endeavour Mining at the Denver Gold Group's European Gold Forum (thanks CP for posting the link in chat :thumbup: )

Sally Eyre gives a run down of Endeavours current operation, exploration and development. Listen in particular to the comment right at the end, which shows that they expect be on a P/E of 2 in 1.5 years. :shock:

I continue to have high hopes for EDV.

Video and pdf on this link - http://www.gowebcasting.com/events/denv ... tream/2046
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Re: Endeavour Mining (TSE:EDV)

Postby DoctorSolar » Sun Jun 05, 2011 5:47 pm

Pixel8r wrote:I continue to have high hopes for EDV.


Me too. Pity they hedged almost half the yearly production from Youga at only slightly more than what it cost them to get it out the ground:

2011 hedge delivery is 35,736 ounces at US $700 per ounce


This hedge does not expire for another year. Still it looks a good story.
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Sun Jun 05, 2011 8:46 pm

DoctorSolar wrote:
Pixel8r wrote:I continue to have high hopes for EDV.


Me too. Pity they hedged almost half the yearly production from Youga at only slightly more than what it cost them to get it out the ground:

2011 hedge delivery is 35,736 ounces at US $700 per ounce


This hedge does not expire for another year. Still it looks a good story.

I thought the situation was that Etruscan, who they took over last year, already had the hedge in place. The endeavour management has the money to clear the hedge but has chosen to leave it in place as the they can make better use of the cash and they will be able to clear the hedge with production this year. Target production from Youga is 84,000 ounces @ cost of $600 per ounce.

Profit 2011 calculation

35,736 @ $100 ($700-$600) = $3,573,600 Profit on hedge delivery

84,000 - 35,736 = 48264 @ $900 ($1500-$600) = $43,437,600

Mining profit for 2011 = $3,573,600 + $43,437,600 = $47,011,200

So even while clearing the hedge this year the should make around C$0.41 per share which I make a P/E of 5.6 for 2011. When you factor in the cash they have they are incredibly cheap.

The risk comes with where they are operating in West Africa, it sounded in the presentation above that they are looking to expand into other areas.
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Re: Endeavour Mining (TSE:EDV)

Postby DoctorSolar » Sun Jun 05, 2011 8:59 pm

Yes it does look very cheap here and most of the downside seems to be priced in already e.g. take over costs, location risks etc. I wonder who they have their sights on as a take over target
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Sun Jun 05, 2011 9:15 pm

DoctorSolar wrote:Yes it does look very cheap here and most of the downside seems to be priced in already e.g. take over costs, location risks etc. I wonder who they have their sights on as a take over target

Whoever they start to buy will be worth buying into is my thinking.
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Mon Jun 13, 2011 2:35 pm

Nice 10% bounce in EDV this morning on the release of the 1st quarter figures. :D

http://www.endeavourmining.com/i/pdf/2011-Q3.pdf
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Tue Jun 14, 2011 8:58 pm

Due to be included in the GDXJ on this Friday at close - viewtopic.php?f=8&t=370&p=12924#p12924
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Wed Aug 03, 2011 7:23 pm

Good grades being reported from one of the EDV exploration sites in West Africa. IMO this stock is a very good buy right here and now, their current producing Youga mine puts them on a very low P/E and the exploration sites are the icing on the cake. They have a large cash bank and are looking to acquire other miners to combine with to take them from the junior space producers to the mid-tier.

News Release - Wednesday, August 03, 2011

Endeavour Mining Reports Exploration Results At Côte D'Ivoire Development Project and from Burkina Faso Properties


George Town, Grand Cayman, August 3, 2011 - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV) today announces positive exploration results on development projects in Côte d'Ivoire and Burkina Faso, and operational results for the second quarter of 2011.

Infill drilling program at the Agbaou feasibility-stage project in Côte d'Ivoire resumed in June 2011. The results received to date have consistently demonstrated continuity of grades and widths and confirmed the quality and interpretation of the mineralised zones within the deposit. Intersections include 24 metres at 10.66 g/t gold and 10 metres at 17.06 g/t gold.

In addition, significant new exploration results were obtained from the Agbaou condemnation drilling campaign in areas which were being conceptually considered for the location of the tailings storage facility and the waste rock dump. Intersections from the waste rock dump area included 4 metres at 9.75 g/t gold and 6 metres at 3.58 g/t gold.

Positive technical evaluation work for the expansion of the Youga Main and East pits and the 2010 NI 43-101 resource estimate will be updated during the second half of 2011 to include the encouraging exploration results on the periphery of the current pits.

Exploration results from a resource delineation and expansion program at the Ouaré deposit, located 40 kilometres northwest of the Youga Mine in Burkina Faso, include intersections of 8.8 metres at 3.83 g/t gold and 6.4 metres at 2.55 g/t gold which confirm earlier interpretations and demonstrate continuity of the Ouaré Main Zone.

Metallurgical testwork is being initiated at Ouaré in preparation for scoping studies to evaluate whether the deposit will be fed to the Youga mill or potentially be a heap leach operation.

During Q2 2011, the Youga Mine in Burkina Faso produced 21,575 ounces of gold. Based on actual production results of 41,631 ounces for the first half of 2011 and the budgeted plan for the remainder of 2011, the Corporation anticipates achieving its full year guidance of approximately 84,000 ounces. Endeavour is scheduled to release its full Q2 2011 results on Wednesday, August 10, 2011...
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Re: Endeavour Mining (TSE:EDV)

Postby Capitalist_Pig » Wed Aug 03, 2011 9:17 pm

The one thing that put me off this one, was during a presentation (I think it was the European Gold Forum one), they mentioned they halted operations in Côte d'Ivoire due to violence at the time ...

But my thinking now is, with all that cash, they can acquire a mine somewhere safer. You any idea whom, and where they might be looking to buy?
A lot of the time, the stock market is just like Tescos ... You just gotta find the value packs, reduced to clear, and buy one get one free offers!
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Re: Endeavour Mining (TSE:EDV)

Postby Pixel8r » Wed Aug 03, 2011 9:30 pm

Capitalist_Pig wrote:The one thing that put me off this one, was during a presentation (I think it was the European Gold Forum one), they mentioned they halted operations in Côte d'Ivoire due to violence at the time ...

But my thinking now is, with all that cash, they can acquire a mine somewhere safer. You any idea whom, and where they might be looking to buy?

They don't seem to be giving many clues as to where or who they are looking at, which is to be expected from this professional outfit. As soon as it got out that they were starting to get interested in anyone there would be a lot of buying, raising their possible buy price.

They have mentioned recently that they have been analysing a few and have been close but things are have not been right yet. The Youga mine is making very good returns currently, the hedge gets cleared in 2012 and they will be on a P/E from current mining operations of 2.5, which is more than paying you for the possible risk IMO.
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