tiprankstipranks
Trending News
More News >
Endeavour Mining Ord (TSE:EDV)
TSX:EDV
Advertisement

Endeavour Mining (EDV) AI Stock Analysis

Compare
315 Followers

Top Page

TSE:EDV

Endeavour Mining

(TSX:EDV)

Rating:73Outperform
Price Target:
C$50.00
▲(10.20% Upside)
Endeavour Mining's strong operational performance and robust financial health are the primary drivers of its stock score. The company's ability to generate significant free cash flow and maintain a solid balance sheet, despite higher costs and operational challenges, positions it well in the gold industry. The technical indicators support a bullish outlook, although the high P/E ratio suggests caution regarding valuation.
Positive Factors
Free Cash Flow and Capital Returns
The company has reached FCF inflection following the completion of the Lafigué (Côte d'Ivoire) and the Sabodala-Massawa BIOX (Senegal) projects and provides a peer-leading capital returns outlook.
Organic Growth Opportunities
Endeavour remains a top pick given its largely steady and low-cost asset base with a healthy outlook for organic growth opportunities.
Sector-Leading Free Cash Flow Yield
Endeavour's still boasts a sector-leading FCF/EV yield of ~16% for 2025.
Negative Factors
Operational Challenges
While there are operational challenges at Sabodala-Massawa and Mana that still need to be addressed, management's guidance does incorporate some of the risks.
Operational Performance Risks
Endeavour continues to trade at a discount to its peers, but there is potential for outperformance through delivery of steady operational performance.

Endeavour Mining (EDV) vs. iShares MSCI Canada ETF (EWC)

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 generates revenue primarily through the extraction and sale of gold. The company operates multiple mines, processing facilities, and exploration projects, which contribute to its gold production output. Revenue is driven by the volume of gold produced and the prevailing market prices for gold. Endeavour Mining also focuses on operational efficiencies, cost control, and strategic mine development to maximize profitability. Additionally, partnerships with local governments and adherence to regulatory frameworks help ensure stable operations and contribute to its earnings. The company may also engage in hedging activities to manage price volatility and secure favorable pricing for its gold sales.

Endeavour Mining Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: 6.48%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong operational performance with significant production and cash flow achievements, robust shareholder returns, and strategic advancements in exploration projects. However, these positives are tempered by increased costs in the second quarter, operational challenges at specific sites, and the impact of high tax payments on cash flow.
Q2-2025 Updates
Positive Updates
Strong Production and Cost Management
Produced 647,000 ounces of gold in H1 2025 at an average all-in sustaining cost (AISC) of $1,281 per ounce, representing a 16% improvement in throughput year-over-year.
Record Free Cash Flow Generation
Generated $514 million of free cash flow in H1 2025, equivalent to $794 per ounce produced, despite paying 70% of the 2025 tax bill in the first half.
Shareholder Returns
Announced a record first half dividend of $150 million, supplemented with $69 million of share buybacks, bringing total shareholder returns to $219 million for H1 2025.
Strong EBITDA and Margin Improvement
Adjusted EBITDA increased by 35% to nearly $1.2 billion in H1 2025, with an adjusted EBITDA margin increase of 5 percentage points to 57%.
Balance Sheet Strength
Reduced net debt to $469 million, decreasing leverage to 0.23x net debt to adjusted EBITDA, significantly below the target of 0.5x.
Exploration Advancements
Significant progress on the Assafou Project and other exploration programs, with promising results at several mines including Ity and Sabodala-Massawa.
Negative Updates
Higher Costs in Q2
Q2 2025 saw an increase in all-in sustaining costs to $1,458 per ounce, driven by higher royalty costs and increased power costs due to lower grid power availability.
Operational Challenges at Sabodala-Massawa
Slight decline in production due to lower grades milled through the CIL plant, and ongoing need to improve BIOX throughput and recoveries.
High Tax Payments
Paid approximately 70% of expected full-year 2025 cash taxes in H1, impacting cash flow for the first half.
VAT Receivables Build-Up
An $18 million buildup in VAT receivables primarily at Houndé, Mana, and Lafigué, posing challenges in cash management.
Company Guidance
During Endeavour Mining's Second Quarter 2025 Results Webcast, the company highlighted its robust performance, with H1 production reaching 647,000 ounces of gold at an all-in sustaining cost (AISC) of $1,281 per ounce, a 16% year-on-year improvement excluding Lafigué's output. The firm reported $514 million in free cash flow, equivalent to $794 per ounce produced, and announced a $150 million dividend supplemented by $69 million in share buybacks, totaling $219 million in shareholder returns. Endeavour's leverage remained well below its 0.5x target, with net debt reduced to $469 million. The company maintained strong operational performance with a 35% increase in adjusted EBITDA to nearly $1.2 billion and an EBITDA margin of 57%. Despite higher royalty costs due to increased gold prices, Endeavour remains in the first cost quartile among peers, focusing on productivity and low-cost project development to sustain future growth.

Endeavour Mining Financial Statement Overview

Summary
Endeavour Mining demonstrates robust revenue growth and solid profitability margins, particularly in gross profit and EBIT. The balance sheet is stable with moderate leverage, and cash flow generation is strong, though there is room for improvement in net profit margins and cash conversion efficiency.
Income Statement
75
Positive
Endeavour Mining has shown strong revenue growth with a 13.91% increase in the TTM period. The gross profit margin is solid at 43.40%, and the EBIT margin is healthy at 24.69%. However, the net profit margin is relatively low at 6.22%, indicating room for improvement in cost management or operational efficiency.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio of 0.40, suggesting a balanced approach to leveraging. The return on equity is modest at 8.06%, indicating efficient use of equity to generate profits. The equity ratio stands at 50.34%, reflecting a stable financial structure.
Cash Flow
68
Positive
Operating cash flow is strong, with a coverage ratio of 1.41, indicating good cash generation relative to net income. Free cash flow growth is positive at 2.01%, but the free cash flow to net income ratio of 0.56 suggests potential for better cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.70B2.68B2.11B2.07B2.64B1.42B
Gross Profit1.60B868.70M745.30M759.70M1.50B750.60M
EBITDA1.65B857.90M864.70M1.20B1.14B522.70M
Net Income229.90M-300.20M-208.90M-57.30M215.50M73.10M
Balance Sheet
Total Assets5.83B5.51B5.86B6.41B6.77B3.88B
Cash, Cash Equivalents and Short-Term Investments669.80M418.60M517.20M962.30M906.20M644.97M
Total Debt1.18B1.17B1.11B871.80M893.00M725.47M
Total Liabilities2.60B2.52B2.31B2.33B2.39B1.64B
Stockholders Equity2.93B2.71B3.23B3.66B3.92B2.06B
Cash Flow
Free Cash Flow780.50M257.60M-116.10M503.70M643.60M507.64M
Operating Cash Flow1.38B943.30M646.50M1.02B1.17B748.93M
Investing Cash Flow-503.60M-630.00M-820.80M-521.40M-511.70M-160.11M
Financing Cash Flow-700.20M-439.10M-276.60M-385.00M-431.10M-70.71M

Endeavour Mining Technical Analysis

Technical Analysis Sentiment
Positive
Last Price45.37
Price Trends
50DMA
42.60
Positive
100DMA
40.34
Positive
200DMA
34.26
Positive
Market Momentum
MACD
0.99
Negative
RSI
63.64
Neutral
STOCH
86.02
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 45.37 is above the 20-day moving average (MA) of 43.36, above the 50-day MA of 42.60, and above the 200-day MA of 34.26, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 63.64 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$10.99B33.648.03%3.04%78.26%
44
Neutral
C$923.76M-8.68-0.23%2.69%24.53%-41.45%
$4.58B11.3010.82%
$4.63B5.7226.28%
$4.98B-12.34%3.13%
$10.94B31.4110.18%0.39%
$13.99B22.6052.25%2.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:EDV
Endeavour Mining
45.45
18.84
70.80%
EGO
Eldorado Gold
22.64
4.96
28.05%
IAG
IAMGOLD
8.07
2.99
58.86%
BTG
B2Gold
3.83
1.25
48.45%
AGI
Alamos Gold
25.63
6.54
34.26%
LUGDF
Lundin Gold
57.42
39.42
219.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 06, 2025