Endeavour Mining - New senior gold major looking to join FTSE 100
On 16 November, Endeavour (EDV) announced the all-paper acquisition of Teranga at a price of 0.47 EDV shares per TGZ share, reflecting a minimal premium. Teranga will contribute a new cornerstone asset to the group. It is expected to produce c 533koz Au pa over the next five years at an average AISC of US$785/oz and will underpin the combined entity’s production at 1.5Moz pa at a target AISC of US$800/oz, simultaneously projecting the new Endeavour into the ranks of the world’s top 10 gold producers and securing its position fourth from bottom of the cost curve (see Exhibit 4). After a US$200m equity infusion from La Mancha, we estimate that new Endeavour’s net debt after the combination will still only be US$185.5m. In the wake of the Teranga acquisition, EDV is seeking a secondary London listing, targeting FTSE 100 inclusion.Endeavour Mining is engaged in the acquisition, exploration and development of gold properties in West Africa.
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