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Endeavour Mining (EDV.t) : 3 Gold Mines, with Growth

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Endeavour Mining (EDV.t) : 3 Gold Mines, with Growth


Original headline:



Endeavor has been tracking it more and more closely


EDV.t vs. CDNX ... update



Weekly EDV ... update



EDV-Weekly-Updated-Nov.2011 ... update



Endeavour is an industry leader in creating and growing natural resource companies and has a proven track record of creating successful investment opportunities and long-term advisory clients.


Endeavour's success is derived from its ability to integrate financial advisory services with timely capital investments. Since 2002, Endeavour has advised on M&A transactions valued at over US$27 billion and the arrangement of US$3.5 billion of equity finance and US$2.2 billion of debt finance.


With a team of 25 professionals and a significant capital base, the company is well positioned for continued growth as it continues to originate merchant banking investments and develops long-term client relationships within the global natural resources sector.


Endeavour Financial is listed on the Toronto Stock Exchange, symbol EDV (listed warrants, EDV.WT.A).



2013 Guidance


============ PRODUCTION ----------- : CASH COST ---

Mine-by-mine. : 2012-Act : 2013 estimate : 2013 Guidance

Nzema,Ghana : 109,446 : 100- 110,000 : $ 780 - $ 820 :

Youga, Burk. F : 091,030 : 075- 085,000 : $ 740 - $ 780 :

Tabakoto, Mali : 110,301 : 135- 150,000 : $ 830 - $ 870 :


Tabakoto, Mali : 310,777 : 310- 345,000 : $ 790 - $ 830 :


/source: http://www.endeavour...012-Guidance...


= = = = =


EDV website-- :: http://www.endeavour....com/s/Home.asp

Presentations :: http://www.endeavourmining.com/s/Presentations.asp

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  • 1 year later...


11/10/2009 1:31 PM - Canada NewsWire


GEORGE TOWN, Grand Cayman, Nov. 10, 2009 (Canada NewsWire via COMTEX News Network) --

Toronto Stock Exchange: EDV


Endeavour Financial Corporation ("Endeavour" or the "Corporation") today reported net income of US$41.5 million or US$0.43 per share for the quarter ended September 30, 2009.


Revenue for the quarter of US$47.0 million includes US$41.6 million investment income and US$5.4 million of advisory fees, including US$0.7 million of mark-to-market gains on advisory fee securities held.


At September 30, 2009 the Corporation had cash and cash equivalents of US$132.7 million and investments of US$101.4 million. The Corporation's book value was US$290 million (or approximately CDN$3.17 per issued and outstanding share).


The Corporation's capital base is deployed in a series of merchant banking transactions; as a result, the capital base is principally deployed in companies in which the Corporation is actively involved in guiding corporate development or providing a transaction-based service.


At September 30, 2009, approximately 92% of the Corporation's US$101.4 million investments by value were held in these strategic, merchant banking positions. Approximately 35% of the investment portfolio is invested in the gold sector and 30% in the oil & gas sector.


The Corporation's cash is currently invested in short-term government treasury securities. It is anticipated that this cash will be deployed into gold-sector investments in the near term. The investment in Etruscan Resources Inc. (see News Release, October 23, 2009) was the first such strategic gold-sector investment. Subsequent to the investment in Etruscan, approximately 67% of the investment portfolio is now invested in the gold-sector.


Neil Woodyer, Chief Executive Officer commented "we are extremely pleased to announce robust financial results for the first quarter. We continue to maximize returns on our strategic investments and we continue to actively generate and secure new advisory mandates. Subsequent to the quarter end we are delighted to have closed our investment in Etruscan Resources Inc. which is the first strategic gold investment in our new gold-focused investment strategy".



Advisory Transactions


During the quarter ended September 30, 2009, Endeavour was an advisor and

earned transaction success fees on several advisory transactions, including:


- Arranged a US$235 million debt package for Bisha Mining Share

Company, a subsidiary of Nevsun Resources, to fund the Bisha Gold

Project, Eritrea. The lending group was comprised of seven

institutions from Europe and South Africa.


- Arranged additional commitments totaling US$25 million for Pacific

Rubiales Energy Corp. as part of the previously arranged US$250

million, senior secured revolving credit facility. During 2009,

Endeavour advised Pacific Rubiales on a total of US$500 million in

debt facilities.


- Provided a US$9.5 million bridge loan to Petroamerica Oil Corp.

(formerly Cantrell Capital Corp.) to acquire certain oil and gas

interests in Colombia.


Subsequent Events


Subsequent to the quarter ended September 30, 2009:


- Corporation completed its strategic investment in Etruscan Resources

Inc. on October 23, 2009. Endeavour invested approximately US$56

million, resulting in the Corporation holding 179,438,789 common

shares, representing 54% of the issued and outstanding shares of

Etruscan Resources Inc. The investment has facilitated Etruscan's

senior debt restructuring, reduced its hedge position and provided

much needed working capital. The current market value of Endeavour's

investment is approximately US$90 million. This investment is the

first of a series of strategic investments Endeavour intends to make

in the junior gold sector as part of its gold-focused investment



- Endeavour's subsidiary, Endeavour Financial International Corporation

was appointed Project Finance advisor to Augusta Resource Corporation

with respect to financing the Rosemont copper project in Arizona.


- Corporation finalized the sale of Orsu Metal's Varvarinskoye gold-

copper mine, Kazakhstan to OJSC Polymetal.


- Endeavour earned advisory fees on Petroamerica Oil Corp. private


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  • 1 year later...

EDV.t hasn't worked as a good proxy since 2008/9 - but it is CHEAP now


I bought some not long ago, and so was pleased to receive the following email...


A Deep Discounted Emerging Gold Producer

August 3, 2011


Shares of Endeavour Mining (EDV) rallied higher this morning after the company provided an operational update on their operating Youga Mine in Burkina Faso and feasibility-stage Agbaou project in Ivory Coast.


At Agbaou where infill drilling started in June 2011, results received to date demonstrate consistent continuity of grades and widths, confirming the quality and interpretation of the mineralized zones within the deposit. Intersections include 24 m at 10.66 g/t gold and 10 m at 17.06 g/t gold. In addition, significant new exploration results were obtained from condemnation drilling in areas being concept-ually considered for a tailings storage facility and the waste rock dump. Intersections from the waste rock dump area included 4 m at 9.75 g/t gold and 6 m at 3.58 g/t gold.


At the Youga Mine, positive technical evaluation work for the expansion of the Main and East pits was received, and the 2010 NI 43-101 resource estimate will be updated during the Q4 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 nearby Ouaré deposit, 40 km NW of the Youga Mine, include 8.8 m of 3.83 g/t gold and 6.4 m of 2.55 g/t gold, confirming earlier interpretation and demonstrating continuity at 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 be developed as a heap leach operation.


Management noted that in Q2 the Youga Mine produced 21,575 oz of gold. Based on actual production results of 41,631 oz for the first half of 2011 and the budgeted plan for the remainder of 2011, full-year guidance of approximately 84,000 oz was confirmed. EDV is scheduled to release its full Q2 2011 results on Wednesday, August 10.



Endeavour Mining (EDV) is a gold producer with an extensive exploration land position and various advanced-stage development gold projects in West Africa. They are executing on a compelling growth strategy, supported by deep financial resources and a strong management team with company-building expertise. The company's immediate goal is to gain market recognition and higher cash flow multiple as an intermediate gold producer, and achieve growth through both the drill bit and strategic acquisitions.


The company continues to make substantial progress, building on its already significant resources to increase shareholder value. The stock price however has languished. Given new highs in the price of gold as the metal trades through $1,670/oz, EDV seems disconnected even within an already deeply discounted gold producer sector. This provides a compelling and timely opportunity for investors.


We suspect savvy investors scouring the gold sector in this oversold "risk-off" environment will find EDV particularly appealing. Today we added 25,000 shares to the Model Portfolio at an average $2.396 per share to hold 125,000 shares with an average cost of $1.91/share.


We expect EDV to attract a broader institutional interest as it extends the life of its operating Youga mine, optimizes the Agbaou gold project, and uses its substantial financial resources to add new production. In mid-July Endeavour had cash and marketable securities of ~US$195 million ($1.71 per share), was debt-free, and had available an undrawn US$100 million acquisition debt facility.


/more: http://vanguardsolutions.ca/i/pdf/11-08-03%20EDV%20Growth%20Stocks%20Weekly.pdf

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EDV.t ... is CHEAP now


At Agbaou where infill drilling started in June 2011, results received to date demonstrate consistent continuity of grades and widths, confirming the quality and interpretation of the mineralized zones within the deposit. Intersections include 24 m at 10.66 g/t gold and 10 m at 17.06 g/t gold.

. . .

We expect EDV to attract a broader institutional interest as it extends the life of its operating Youga mine, optimizes the Agbaou gold project, and uses its substantial financial resources to add new production. In mid-July Endeavour had cash and marketable securities of ~US$195 million ($1.71 per share), was debt-free, and had available an undrawn US$100 million acquisition debt facility.[/i]

Those are GREAT grades !

And that is a nice amount of cash per share for a company trading at === C$2.30


EDV.t / Endeavour Mining ... update : 1year


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Have some hopes for a stake of EDV in AXM


This event represents the fruition of months of work and is a key component of

management's expressed plan to bring the Passendro Mine into production. With

the assistance of Endeavour Financial, we are in advanced discussions with

additional debt facility arrangers for the balance of the funds."


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Those are GREAT grades !

And that is a nice amount of cash per share for a company trading at === C$2.30


EDV.t / Endeavour Mining ... update : 1year


Yes just the current production makes them amazingly cheap IMO, the exploration is the icing on the cake. Once you take out the cash per share and look at their earnings they are on an amazing P/E. Especially when you add into the mix that their hedge gets repaid next year.


Here's a post from the EDV 24K thread;


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


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.


I continue to have high hopes for EDV.


Video and pdf on this link - http://www.gowebcast...lay/stream/2046

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I am considering buying a few shares. Studying this here at the moment: http://www.endeavourmining.com/i/pdf/Presentations/EDV-2011-Q2-PPT.pdf


Why did they have such a hard time to recover from the 2008 plunge? Most miners I know have fared much better in terms of stock price.


They have changed their business model from financing company to mining company. That transition only happened reasonably recently. That could be part of it?

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I am considering buying a few shares. Studying this here at the moment: http://www.endeavour...2011-Q2-PPT.pdf


Why did they have such a hard time to recover from the 2008 plunge? Most miners I know have fared much better in terms of stock price.

Watch this video GF, it will explain most things;





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Don't hang around to long making your mind up GF. wink.gif


Endeavour Mining and Adamus Resources to Merge and Create a New Growth Focused West African Gold Producer

George Town, Grand Cayman and Perth, Western Australia August 21/22, 2011 - Endeavour Mining Corporation ("Endeavour") (TSX:EDV) and Adamus Resources Limited ("Adamus") (ASX:ADU, TSX-V: ADU, FSE: AXM) are pleased to announce they have entered into a definitive Merger Implementation Agreement ("MIA") to combine through an all-stock merger of equals transaction creating a new growth focused West African gold producer (the "Merged Entity"). Endeavour intends to invest at least US$160 million from its current cash balance to relieve the constraints of Adamus' Nzema project finance structure, including repayment of the US$60 million project loan and at least US$100 million towards reduction of hedged gold volumes. The Merged Entity is forecasting 2011 gold production of 172,000 ounces from two mines (Youga Gold Mine in Burkina Faso and Nzema Gold Mine in Ghana) at a cash cost per ounce of US$575- $6251. The gold production rate is expected to be approximately 250,000 ounces per year by the end of 2013 from existing assets (including Agbaou). In addition, the Merged Entity has an acquisition growth strategy to more than double this gold production rate by the end of 20132.
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Highlights of the Merger:


-- Creates a leading West African gold production, development and

exploration company as a platform for future growth and



-- Combines experienced management teams and board of directors.


-- Strong cash generation from two operating gold mines with pro

forma 2011 gold production of 172,000 ounces (Youga Gold Mine,

in Burkina Faso and Nzema Gold Mine, in Ghana) - de-risking the

standalone companies.


-- With a construction decision to be made in Q1 2012 for the

Agbaou feasibility stage project in Côte d'Ivoire, the

production growth profile is expected to be approximately

250,000 ounces per year by the end of 2013 from existing



-- Adamus' proven mine building track record, having successfully

commissioned the Nzema Gold Mine, will enhance the construction

of the Agbaou feasibility stage project in Côte d'Ivoire.

-- Extensive exploration portfolio in highly prospective regions

of Ghana, Burkina Faso, Côte d'Ivoire, Liberia and Mali with a

land package totaling over 10,400km(2).

-- Pro forma financial strength totalling US$516 million from

Endeavour's US$195 million cash and marketable securities,

Adamus' US$21 million cash, a new, undrawn, credit-approved

US$200 million revolving corporate loan facility provided by

Unicredit Bank AG (subject to completion of the Scheme,

execution of final facility agreements and satisfaction of the

facility's conditions) and approximately US$100 million from

any future exercise of all Endeavour options and warrants with

an exercise price of CDN$2.50 or less.


-- Financial strength will relieve constraints from Adamus' Nzema

project finance structure and support the Merged Entity's

growth objectives. Post-closing, the Merged Entity intends to

fully repay the Nzema US$60 million project debt and intends to

invest at least US$100 million to significantly reduce gold

hedging volumes. This will result in greater leverage to the

gold price, increased operating cashflow and EBITDA, and

increased management flexibility.


Management & Governance

On completion of the Scheme, Neil Woodyer from Endeavour will be Chief Executive Officer and Mark Connelly from Adamus will be Chief Operating Officer, of the Merged Entity. The Merged Entity's operational management will be led from Perth, Australia and will report to the Chief Operating Officer.

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  • 3 weeks later...

Endeavour Mining Corp. (EDV, TSX) West African Gold Merger



A merger with Adamus Resources will make Endeavour a leading West African mid-tier gold producer


On August 9th I sent out a bottom fishing alert on Endeavour Mining citing their growth projections which would enable them to become a mid tier gold producer as they further developed their West African assets.


Last week Endeavour announced a merger plan with Adamus Resources (ADU, ASX) which will solidify their position as a mid tier gold producer in West Africa and give investors a potential double from today's current share price.


If you've been holding off on getting your position don't worry. The stock is up about 15% since my last update but we are still in the summer slow season and there still potential for a triple digit capital gain with EDV over the short term.


Here are the highlights of the deal...




Endeavour Mining announced that it has entered into a definitive agreement with Adamus Resources where ADU shareholders will receive 0.285 shares of EDV for every share of ADU they hold.


This merger will add Adamus' Nzema gold mine assets to Endeavour's Youga and Agbaou projects giving the new company an estimated production of 172,000 oz's of gold in 2011. Gold production is projected to grow to 250,000 ounces by the end of 2013.


Once the deal is completed, EDV will pay off ADU's $60 million debt facility and another $100 million will go toward paying down the Nzema gold hedge.


This is a good deal for EDV shareholders. Once the market comes back to life in the fall, investors will see that Endeavour is trading well below their peer group valuation. Continued positive news flow from EDV should quickly build up the share valuation over the next 12 to 15 months.


With this merger Endeavour has become a focused, growth oriented, West African gold producer.


Adamus Resources Nzema Gold Mine


The Nzema project is an open pit design with a CIL processing plant that has the capacity of 2.1 tonnes of ore per year. The mine has JORC compliant reserves of 1.07 million ounces plus another 1.049 million ounces of resources not included in the reserve category.


The mine began production earlier this year and the first full quarter of production was completed in Q2 where 26,015 ounces were produced with a cash cost of $544 per ounce.


Adamus management had been estimating total production for 2011 would come in at 88,000 ounces and increasing to 100,000 - 105,000 ounces over 2012. At this point the mine has enough reserves for an eight year mine life. This estimate will change once the resource numbers are added in to proven reserves.


The Nzema project has a hedge attached to it which Adamus needed to complete their project financing. As of June 2011, 275,887 ounces of gold were hedged at US$1075 per ounce. There is a hedge schedule which would account for about 50,000 ounces of gold per year over 5.5 years. Once the deal with Endeavour is completed, EDV plans to pay down this hedge which will cost them around $100 million. Having followed Endeavour for several years now I can tell you that their management is as bullish on the price of gold as I am, and being unhedged should pay off handsomely for all shareholders


/more: http://vanguardsolutions.ca/i/pdf/11-09-01%20EDV%20Winston%27s%20Growth%20Stock%20Report%20-%20West%20African%20Gold%20Merger.pdf

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Endeavour Mining Reports Positive Drilling Results at Ouare Including 1.8 g/t over 46m


Oct. 17, 2011


GEORGE TOWN, Grand Cayman - Endeavour Mining Corporation (TSX:EDV ) is pleased to report positive results from the ongoing reverse-circulation (RC) exploration and infill programs at its Ouaré gold deposit located 40km northeast of the Youga Gold Mine in Burkina Faso, West Africa. Drill intercepts from Ouaré West exploration included BITRC-11-342 with 11 metres (m) of 4.3 grams per tonne (g/t) gold and included 2m of 18.7 g/t gold. Drill results from Ouaré Main infill program included, BITRC-11-280 with 46m of 1.8 g/t gold and included 1m of 11.8 g/t gold and BITRC-11-283 with 19m of 3.2 g/t gold, including 1m of 17.6 g/t gold.


Neil Woodyer, CEO, comments, "We continue to be very encouraged by the results at Ouaré, particularly regarding the lengths of the mineralized intercepts which are suggestive of a broad mineralized zone even after correction for true width."


Ouaré West Exploration Program


A soil geochemical survey was completed in 2006-2009 over large portions of the Bitou property including the Ouaré Main and Ouaré West areas. At Ouaré West a 2km by 200m soil gold geochemical anomaly was drilled in 2008 with widely-spaced fences of RC holes which confirmed broad widths of low grade gold mineralization in 38 holes. In 2011 a further 3,260m in 32 RC holes was completed at Ouaré West. The first results have been received from 19 of these RC holes; Table 1 includes highlights of the results received to date.


Table 1 Ouaré Exploration 2011 RC Drilling Highlights




This area is 400m west of the current Ouaré Main mineral resource and provides encouragement for potential additional mineral deposits nearby. Further drilling will test the Ouaré West target in late 2011 and an additional program will follow up on other geochemical anomalies on the Bitou properties in 2012




Current Resource


The previously reported Inferred mineral resource, at a 0.5 g/t cut-off, for Ouaré was 4.738 million tonnes at 2.1 g/t gold containing 323,000 ounces gold (Internal Resource Estimate, dated June 16 2009). At the time of the initial resource estimate the deposit had been nominally tested on 50m spaced sections to a maximum depth of 100m for a 2,000m strike length. The 2011 drilling is decreasing the section spacing to 25m and reducing the hole spacing to 20m in order to provide measured and indicated classification of the resources. The resources will be updated for reporting in Q2 2012. A portion of the current program is also designed to extend the resources to at least 150m depth on selected sections.


Samples for metallurgical testwork were collected from diamond drill holes on the Ouaré Deposit. The testwork will be part of engineering studies that will examine the potential to process these resources through either hauling to the existing Youga plant or processing the ores as a heap leach operation at the Ouaré site.


== Press Release EXCERPT

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  • 1 month later...

Where there's smoke there's fire…


EDV-Weekly ... update : w-126wk.MA



Endeavour Mining posted a solid gain after confirming that 99.59% of shareholders have approved the merger with Adamus Resources. The completion of the merger remains subject to approval from Adamus shareholders at a meeting scheduled to be held on November 28, 2011 in Perth, Australia and from the Federal Court of Australia at a hearing scheduled for December 2, 2011, however by all accounts this deal seems to look like it will get the green light.


The merger would add ADU’s Nzema gold mine to EDV’s Youga gold mine and Agbaou gold project with pro forma production of 170-180,000 ounces in 2011E, growing to 260,000 ounces by 2014E. Once complete, $60 million is earmarked to repay ADU’s debt facility, with another $100 million (minimum) to be spent paying down the Nzema gold hedge. Canaccord Genuity Mining Analyst Nicholas Campbell likes the combination.


The new company has a more diversified production and cash flow base (moving from single mine producers to a multi-producing company), significantly more leverage to the price of gold, and it combines EDV’s financial and transactional expertise with ADU’s operating and development strength.


Campbell is forecasting operating cash flows of US$160-215 million per year from 2012-2015 for the combined company. He believes the NewCo should be able to more than finance the development of the Agbaou project with the operating cash flows from 2012 alone. Also, Campbell would not be surprised to see the NewCo announce the decision to entirely pay down the Nzema gold hedge book in the second half of 2012, which would leave it entirely exposed to the spot gold price from 2013-onwards. In addition, this deal should further bolster EDV’s balance sheet. By the end of 2011, Campbell estimates a pro forma balance sheet of roughly US$65 million in cash, plus $39 million in marketable securities and no long-term debt.

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Endeavour Mining has closed out the gold hedge book


Monaco, November 29, 2011 - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV ) is pleased to announce it has closed out the gold hedge book (" Hedge Book") relating to its Youga Gold Mine ("Youga") in Burkina Faso. The closeout of the Hedge Book means that all gold production from Youga is now available to be sold into the spot market.


As of September 30, 2011, the remaining ounces covered by the $700 per ounce call options totalled 29,200 ounces with the last commitment deliverable in August 2012. Call options totalling 5,668 ounces were settled with regular scheduled deliveries from Youga gold production during October and November 2011. The residual balance of 23,532 ounces was settled for a cash payment of $24.0 million, which implies an effective gold price of $1,719.97 per ounce inclusive of transaction costs and contango charges.


Neil Woodyer, CEO, stated: "The early elimination of the Youga gold hedge improves our cashflow for 2012 and increases our corporate flexibility. With the pending completion of the merger with Adamus, we anticipate further de-hedging of the Nzema hedge book."

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Once the deal with Endeavour is completed, EDV plans to pay down this hedge which will cost them around $100 million. Having followed Endeavour for several years now I can tell you that their management is as bullish on the price of gold as I am, and being unhedged should pay off handsomely for all shareholders

Then why did they hedge first place? Also, how can they know what the buy-back will cost them a year out from now? Gold might have doubled again by then.


EDIT: I simply wonder how costly this Nzema hedge will turn out to be in the end.

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  • 2 months later...

Endeavour’s Youga Life of Mine Increases 80%


by Gold Editor on FEBRUARY 7, 2012 .. February 6, 2012


When Adamus Resources merged with Endeavour Mining Corp (EDV-TSX; EVR-ASX) on December 19, 2011 they became a $600 million gold mining company focussed on West Africa.


On January 30, 2012 EDV announced it met 2011 production targets producing 177,290 ounces of gold at a cash cost per ounce of $614 (excluding royalties), comprised of 90,026 ounces from Nzema (Ghana) and 87,264 ounces from Youga (Burkina Faso).


The exploration program at the Youga mine resulted in the Life of Mine being extended from 4 years to 7.2 years - creating about half a billion dollars in additional projected revenue at current spot prices.


For 2012, Endeavour expects production to be in the range of 170,000 to 190,000 ounces at a cash cost per ounce (excluding royalties) of $645 to $685, with additional near-term production growth of approximately 100,000 ounces per year anticipated from its Agbaou Gold Project.


Endeavour's 2012 exploration budget of $30 million includes over 200,000 metres of drilling with objectives including resource delineation at its two mines, testing of multiple additional targets within the mine permit areas, resource expansion on two development projects, and early stage exploration of key properties in Burkina Faso, Côte d'Ivoire, Ghana, Liberia, and Mali.


Most exploration companies would have to raise money in the market to pay for such an aggressive program but EDV's current 180,000 ounces of production will provide sufficient cash flow.


EDV currently has a cash balance of $115 million and has drawn $100 million of its $200 million revolving corporate credit facility.


With $215 million of cash and credit facilities and a forecast cash operating margin from mining operations of approximately $150 million during 2012, Endeavour has the financial resources for capital expenditures, exploration programs and acquisitions.


/more: http://www.metalinvestmentnews.com/endeavour%e2%80%99s-youga-life-of-mine-increases-80/

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  • 6 months later...

Endeavour Mining (EDV-T) plans to buy Avion Gold (AVR-T)


...in a $389-million all-stock deal to increase its foothold in West Africa, and expand its annual production to over 450,000 oz. gold in 2015. Endeavour will provide a US$20- million loan to Avion as part of the plan of arrangement, and the cash-strapped producer can use the loan to resume mill expansion at the Tabakoto property in Mali. The acquisition values Avion at 88¢ per share, or a 56% premium to its Aug. 7 closing price and a 70% premium over its 20-day volume-weighted average price. Under the agreement, Avion shareholders will receive 0.365 of an Endeavour share for each share held, and upon completion will own 40% of Endeavour. "The proposed acquisition by Endeavour Mining appears to offer reasonable value and would create an appealing mid-tier West African gold producer," BMO analyst Andrew Breichmanas, who covers Avion, writes in a recent note.

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Endeavour Bids for Avion


SOURCE: [Northern Miner] Having grown and transformed itself from a gold investment company to a substantial gold producer in just a few short years, Endeavour Mining is now poised to expand annual production to 450,000 oz. in 2015 with the proposed acquisition of Avion Gold. The proposed acquisition "would create an appealing mid-tier West African gold producer," according to BMO analyst Andrew Breichmanas, In this issue of Gold Editor, The Northern Miner highlights the transformative impact of the Avion acquisition on this dynamic and growing gold producer.

=== ===


As posted in DrB's Diary:


THis stock looks pretty interesting - I may add some more soon


EDV.t / Endeavour Mining ... update




/see-thread : http://www.greenenergyinvestors.com/index.php?showtopic=3035


EDV.T : $1.98 +0.09

Open: 1.93 / High: 1.98 / Low: 1.90

Volume: 494,520

Percent Change: +4.76%

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  • 3 weeks later...

$500million potential legal liability removed - for $1.5 million


Endeavour Mining Announces Full and Final Settlement With Gold Reserve


September 20, 2012


Endeavour Mining Corporation ("Endeavour") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) reported today that it has reached a settlement agreement with Gold Reserve Inc. ("Gold Reserve") (TSXV:GRZ) whereby, in exchange for a full and final settlement of all the claims between the parties and without any admission as to liability, Endeavour will pay CAD$1.5 million to Gold Reserve.


On December 16, 2008 Gold Reserve brought a claim for US$500 million in damages, in addition to US$50 million in punitive damages, against Endeavour's financial advisory business and a co-defendant. Endeavour filed a statement of defence and counterclaim on August 19, 2009. On June 16, 2010, Gold Reserve amended the Statement of Claim and reduced the damages claimed against the defendants to US$150 million plus US$50 million in punitive damages. Endeavour sold its financial advisory business at the end of 2011.

Neil Woodyer, CEO, commented:

"We are pleased to put this litigation behind us to avoid further legal expenses and use of management time. We are now a rapidly growing West African gold producer and resolution of this issue will assist Endeavour in focusing on the implementation of its strategic growth plans."



About Endeavour Mining Corporation

Endeavour is a gold producer delivering growth. Endeavour owns two gold mines producing approximately 200,000 ounces per year in Ghana and Burkina Faso that are generating significant operating cash flows to fund exploration and development growth. In addition to upside potential at its current operations, Endeavour's third gold mine, Agbaou in Côte d'Ivoire, has entered the construction phase for an additional 100,000 ounces per year starting in Q1 2014. Endeavour has a strong financial base from which to invest in long-term operational growth, exploration to replace and increase reserves, and funding for acquisitions.

On August 7, 2012, Endeavour announced a definitive agreement to acquire Avion Gold (TSX:AVR) to become one of the largest West African gold mining companies with three producing mines, a fourth mine currently in construction, and an attractive pipeline of exploration and resource development properties. The Avion transaction is expected to close in October 2012.

Endeavour Mining Corporation is listed on the TSX (symbol EDV) and ASX (symbol EVR), and also trades on the OTCQX (symbol EDVMF).

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  • 4 weeks later...

Behaving well, now nicely in profit


I took some profits on P.t and invested in EDV.t recently






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From the Frank Guistra thread


Guistra's Stocks - Popped, then pullback - Upwards impulse next ?


EDV / Endeavour ... update



GG / Goldcorp ... update



EDV in close-up ... update



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  • 3 weeks later...

EDV may be set to soar - News could be the trigger... not long to wait


Endeavour Mining To Release Q3 Results On November 14, 2012


EDV.t / Endeavour Mining vs GDXJ index ... update : EDV-alone : w/987d-MA




EDV's stock is now trading on the "right side" of the MA's : 18wk, 52wk and 200 wk MA's.

This kind of set-up can lead to a sharp upwards move, and a long lasting one too, like to $3.50-4.00, even higher.


A move above $2.50 with volume would break the long term down channel, and could lead to a strong move upwards.

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NOTES - from the Recent 9/10/12

Info Circular on the Merger between Endeavour & Avion


+ The intention is to create a new mid-tier gold mining business, focused on West Africa, listed on both the TSE and ASX

+ Gold production should rise from about 300,000 to approx. 450,000 oz. pa, with completion of the Agbaou gold project & mill expansion at Tabakoto


+ P&P Gold reserves will increase by 31% to 2.8 million oz. / At C$1000mn MktCap / 2.8mn = $357 per PP oz., $113 per PM&I (8,818k oz)

+ New projects coming in W.Africa: A's Hounde Project in Burkino Faso (893k Ind + 712k Inf.), A's Koji project in Mali (500k Ind + 702k Inf.)


+ Strong financials : Cash C$51mn + access to a $200mn facility, and cash flow from three operating mines

+ Combined Market Cap was estimated at C$977mn (Aug. 7, 2012) : so is big enough to attract institutions


+ Warrants : Nov. 30, 2012 @C$2.49 x 135,347 // Dec.24, 2013 @C$0.338 x 544.390

+ Options : 17.38 million from C$1.18 - C$44.96 - and expiry from Oct.25, 212 to July 6, 2020


Resources and Reserves

======== Proven R : Probable : P&P Resv. / Meas. : Indica. : = PM &I / Inferred = PMI &I

Old EDV- :

New EDV : 1,620k oz 1,758k oz : 3,381k oz. / 2,558k : 4,787k. 10,726k / 4,073k = 14,799k :: Pro-forma Total

New EDV : 1,373k oz 1,423k oz : 2,796k oz. / 2,151k : 3,871k = 8,818k / 3,292k = 12,110k :: Pro-forma Attributable


Income stmts-- Old EDV- : New EDV- : Per Qtr ( /2)


Revenue, 6mos* : $156,562 : $233,841 : $116,920

Earnings, mines : $050,043 : $067,788 : $033,884 / 407mnShOS = $0.083 x4: $.332

Net Earnings---- : $012,949 : $015,409 : $007,705 / 407mnShOS = $0.019 x4: $.076

Fully Dilluted---- : $007,705 / 472mShOS = $0.016

(note: because 544k wts are struck at $0.338 and maybe 2.5mn below$2.50, use 410mn)


Balance Sheet--- Old EDV- : New EDV- :

Cash & equiv.--- $136,110 : $151,410

Total Assets------ $999,862 $1,485,953

Tot.Debt,incl.CP : $100,000 : $131,154

Total Liabs.----- : $318,355 : $442,555

Equity, EDVshs. : $651,004 : $994,569 / BV=$2.43 / MC=410 x $2.50 = $1,025mn


EARNINGS REPORT, over 2 cents, would be positive : that's a PE of about 30, but with growth coming

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