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Endeavour Mining (TSE:EDV)
:EDV
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Endeavour Mining
(TSX:EDV)
Rating:74Outperform
Price Target:―
Positive Factors
Financial Performance
Endeavour's still boasts a sector-leading FCF/EV yield of ~16% for 2025.
Growth Opportunities
Endeavour has the building blocks of a quality asset portfolio in place with a 1.2-1.3Moz production profile and significant brownfield and greenfield growth opportunities within the portfolio.
Project Development
Endeavour released the results of a positive pre-feasibility study (PFS) for the Assafou-Dibibango project on the Tanda-Iguela property in Côte d'Ivoire, less than three years since its discovery in late-2021.
Negative Factors
Economic Impact
Lower-than-expected production ramp-up at Sabodala-Massawa and higher costs at Hounde negatively impact EBITDA by approximately 12%.
Operational Challenges
There are operational challenges at Sabodala-Massawa and Mana that still need to be addressed, management's guidance does incorporate some of the risks.
Regulatory Risks
The potential new mining code in Côte d'Ivoire could reduce Endeavour Mining's stake in Assafou from 80% to 75%.
Endeavour Mining (EDV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.20B
Dividend Yield3.26%
Average Volume (3M)627.60K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth59.60%
EPS Growth-74.74%
CountryCA
Employees5,659
SectorBasic Materials
Sector Strength64
IndustryGold
Share Statistics
EPS (TTM)1.25
Shares Outstanding241,398,970
10 Day Avg. Volume569,332
30 Day Avg. Volume627,604
Financial Highlights & Ratios
PEG Ratio-1.41
Price to Book (P/B)2.49
Price to Sales (P/S)0.00
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$49.09Price Target Upside16.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Endeavour Mining Business Overview & Revenue Model
Company DescriptionEndeavour Mining plc, together with its subsidiaries, operates as a gold mining company in West Africa. Its project portfolio includes 90% owned Houndé, Mana, Boungou, and Wahgnion mines in Burkina Faso; 85% owned Ity mine located in Côte d'Ivoire; 90% owned Sabodala-Massawa mine situated in Senegal; and Fetekro, Kalana, Bantou, Nabanga, and Afema development projects. The company was incorporated in 2021 and is based in London, the United Kingdom.
How the Company Makes MoneyEndeavour Mining makes money primarily through the sale of gold produced from its mining operations. The company's revenue model is based on the extraction and processing of gold ore from its mines, followed by the sale of the refined gold on the global market. Key revenue streams include the production and sale of gold bars and other gold products. Endeavour Mining's earnings are significantly influenced by the market price of gold, production levels, and operational efficiencies. The company also engages in strategic partnerships and joint ventures to optimize production and expand its resource base, contributing to its profitability.
Endeavour Mining Financial Statement Overview
Summary
Endeavour Mining shows strong revenue growth and efficient cash flow management, with robust EBITDA margins suggesting good operational efficiency. However, the negative net income over several periods highlights challenges in profitability, impacting return on equity. The balance sheet remains solid with prudent leverage levels, but profitability concerns need addressing for improved shareholder value.Income Statement
Endeavour Mining has demonstrated significant revenue growth, with a TTM (Trailing-Twelve-Months) revenue of $3.25 billion, marking a 21.26% growth compared to the previous year. Despite strong revenue and gross profit margins of 39.17% for TTM, the company faced challenges in profitability, indicated by a negative net profit margin of -3.29% due to consistent net losses over several periods. The EBITDA margin is robust at 39.29%, indicating strong operating performance before interest, tax, depreciation, and amortization.65
Positive
Balance Sheet
Endeavour Mining's balance sheet reflects stability with a debt-to-equity ratio of 0.41, indicating conservative leverage. The equity ratio stands at 49.03%, showcasing strong equity backing relative to assets, although slightly lower compared to the previous year. However, the company's return on equity is negative due to net losses, signaling challenges in delivering shareholder returns.72
Positive
Cash Flow
The company exhibits strong cash flow generation with a TTM operating cash flow of $1.38 billion. Free cash flow has grown substantially by 197.00% year-over-year, showcasing effective management of capital expenditures. The operating cash flow to net income ratio is high, reflecting efficient cash generation relative to accounting profits, despite net losses.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.25B | 2.68B | 2.11B | 2.51B | 2.78B | 1.42B | Gross Profit |
| 1.27B | 868.70M | 745.30M | 759.70M | 890.80M | 490.04M | EBIT |
| 739.70M | 367.80M | 442.70M | 587.70M | 710.00M | 338.23M | EBITDA |
| 1.27B | 857.90M | 1.10B | 1.20B | 1.14B | 700.37M | Net Income Common Stockholders |
| -106.80M | -300.20M | -208.90M | -31.00M | 215.50M | 133.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 761.90M | 418.60M | 517.20M | 962.30M | 906.20M | 644.97M | Total Assets |
| 5.82B | 5.51B | 5.86B | 6.41B | 6.77B | 3.88B | Total Debt |
| 1.16B | 1.17B | 1.11B | 871.80M | 893.00M | 725.47M | Net Debt |
| 424.50M | 777.00M | 593.40M | -79.30M | -13.20M | 80.50M | Total Liabilities |
| 2.63B | 2.52B | 2.31B | 2.33B | 2.39B | 1.64B | Stockholders Equity |
| 2.85B | 2.71B | 3.23B | 3.66B | 3.92B | 2.06B |
| Cash Flow | Free Cash Flow | ||||
| 765.10M | 257.60M | -116.10M | 503.70M | 643.60M | 507.64M | Operating Cash Flow |
| 1.38B | 943.30M | 646.50M | 1.02B | 1.17B | 748.93M | Investing Cash Flow |
| -527.30M | -630.00M | -820.80M | -521.40M | -511.70M | -160.11M | Financing Cash Flow |
| -593.60M | -439.10M | -276.60M | -385.00M | -431.10M | -70.71M |
Endeavour Mining Technical Analysis
Positive
42.25
Price Trends
36.62
Positive
32.51
Positive
30.54
Positive
Market Momentum
1.15
Negative
65.45
Neutral
81.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EDV, the sentiment is Positive. The current price of 42.25 is above the 20-day moving average (MA) of 39.47, above the 50-day MA of 36.62, and above the 200-day MA of 30.54, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 65.45 is Neutral, neither overbought nor oversold. The STOCH value of 81.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EDV.
Endeavour Mining Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$10.20B | ― | -3.12% | 3.26% | 59.60% | -74.74% | |
50 Neutral | $1.99B | -1.06 | -21.34% | 3.71% | 2.03% | -30.65% | |
| $4.07B | 12.36 | 8.91% | ― | ― | ― | ||
| $3.87B | 4.69 | 28.42% | ― | ― | ― | ||
| $4.43B | ― | -17.61% | 4.18% | ― | ― | ||
| $11.04B | 42.11 | 7.85% | 0.38% | ― | ― | ||
| $11.16B | 20.70 | 47.31% | 1.76% | ― | ― |
* Basic Materials Sector Average
Performance Comparison
TSE:EDV
Endeavour Mining
42.25
13.92
49.14%
EGO
Eldorado Gold
19.81
3.93
24.75%
IAG
IAMGOLD
6.73
2.64
64.55%
BTG
B2Gold
3.36
0.66
24.44%
AGI
Alamos Gold
26.24
9.23
54.26%
LUGDF
Lundin Gold
46.39
32.05
223.50%
Endeavour Mining Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 13.12%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Endeavour Mining, with record free cash flow, a solid financial position, and robust production figures. Despite challenges like VAT receivables in Burkina Faso and potential tax and royalty increases, the company is on track to meet its guidance and deliver increased shareholder returns.Q1-2025 Updates
Positive Updates
Record Free Cash Flow Generation
Endeavour generated a record $409 million of free cash flow during the first quarter of 2025, representing $1,199 for every ounce of gold produced. This marks the fourth consecutive quarter of free cash flow growth.
Strong Gold Production
Produced 341,000 ounces of gold at an all-in sustaining cost of $1,129 per ounce, placing the company on track to achieve its full-year guidance.
Improved Financial Position
The company reduced its net debt by $354 million, with leverage significantly reduced to 0.22x net debt to adjusted EBITDA, well below the long-term target of 0.5x.
Record Shareholder Returns
Increased dividends and share buybacks, with $52 million of share buybacks completed year-to-date, reflecting a commitment to delivering increased shareholder returns.
Positive Exploration Outcomes
The Assafou project is on track for a resource update in the second half of the year, with a focus on increasing the endowment and advancing the definitive feasibility study.
Strong Safety Performance
The group reported a lost time injury frequency rate (LTIFR) of only 0.05 during the quarter, indicating strong safety measures.
Successful Commissioning of Solar Plant
Completed the commissioning of a solar plant at Sabodala-Massawa to support the improvement in emissions intensity and reduce fuel consumption and power costs.
Negative Updates
Slightly Lower Production Expectation for 2H 2025
Production is expected to be slightly lower in the second half of the year due to mining sequence and seasonal impacts.
Challenges with VAT Receivables in Burkina Faso
Endeavour continues to face challenges with VAT receivables, resulting in a small impairment during the quarter.
Potential Increase in Royalty Rates
Discussions in Côte d'Ivoire and Burkina Faso regarding potential increases in royalty rates could impact future financials.
Higher Cash Taxes Expected in Q2 2025
The company anticipates significantly higher cash taxes in Q2, which will impact cash flow.
Company Guidance
During Endeavour Mining's Q1 2025 results call, the company provided comprehensive guidance and metrics reflecting a strong start to the year, with production totaling 341,000 ounces of gold at an all-in sustaining cost (AISC) of $1,129 per ounce. They achieved a record free cash flow of $409 million, with a free cash flow margin of 39%, contributing to a significant reduction in net debt by $354 million, bringing leverage down to 0.22x net debt to adjusted EBITDA, well below the long-term target of 0.5x. The company also reported a 12% quarter-over-quarter growth in adjusted EBITDA to $613 million. Endeavour is on track to exceed its minimum dividend commitment for 2025 after already conducting $52 million in share buybacks year-to-date, contributing to a total return commitment of $277 million for 2025. Looking forward, the company anticipates slightly lower production in the second half of the year but aims to maintain cost discipline and operational efficiencies. Endeavour is also focused on its long-term growth pipeline, with its Assafou project targeting a 35% production growth to 1.5 million ounces by 2030, and it plans to provide a resource update in the second half of 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.