Endeavour Mining - Strong Q2 tees up strong H2
Endeavour’s Q220 results were materially ahead of both Edison and consensus estimates. Adjusted EBITDA of US$120.2m was within 7.5% of the first quarter’s record, while adjusted net earnings reached a new recent record of US$52.8m, or 47.6c/share. At least as importantly, all operations were reported to be continuing to operate at near-normal levels, despite COVID-19. As a result, we have upgraded our FY20 forecasts materially, driven by sharply increased production in Q4 in particular, combined with a materially higher gold price. Given its current rate of deleveraging, we calculate that Endeavour could be net debt free early in FY21, at which point it is likely to transition to dividend payments and a focus on shareholder returns at the same time as developing new projects, such as Fetekro (currently valued at US$1.68/share – see page 12).Endeavour Mining is engaged in the acquisition, exploration and development of gold properties in West Africa.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.