Endeavour Mining - A strong opening
Endeavour’s Q122 adjusted net EPS from continuing operations were within 4% of our prior estimate, at US$0.49/share, with gold sold exceeding our forecasts by 7%, led by outperformance at the company’s flagship assets, Hounde, Ity and Sabodala-Massawa. In the wake of these first quarter results, we have revised our earnings estimates for the company – in this case downwards (see Exhibit 4), albeit the reductions reflect non-operational issues such as 1) a downward revision to the gold price, 2) the inclusion of a systematic method for estimating share-based payments on a quarterly basis for the first time and 3) a change in our assumptions regarding interest income. In the aftermath of these changes, however, our forecasts for adjusted net EPS are no more than 9.5% from the market consensus for FY22. By contrast however, our valuation of Endeavour has increased as a result of the inclusion of the Sabodala-Massawa expansion project into our medium- and longer-term cash flow forecasts.
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.