Endeavour Mining (TSE:EDV)

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Pixel8r
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Endeavour Mining (TSE:EDV)

This is my first post to this great looking site. I would like to draw to the attention of fellow TFM's a promising junior Gold miner called Endeavour Mining (EDV).

Endeavour has long been a financial company providing merchant banking services focused on the global natural resources sector. Over the last year they have transformed themselves into a junior producing gold miner via their acquisition of Etruscan Resources who where based in West Africa. Using their skills and capital they have transformed the resources of Etruscan and now have a very profitable producing mine in Burkina Faso called the Youga Gold Mine.

As well as their producing mine they also currently have 6 expolration and development properties in surrounding West Africa.

I think EDV are in an enviable position and have great potential for future expansion.  Their aim is to acquire some more junior miners and combine them to bring about a re-rating of EDV from junior to a mid tier miner.

Here's some ballpark figures to show you why I think they are so attractive;

Market cap = $300m

cash and receivables = $200m

Earnings from mining Q1 = 8.5M

300m - 200m = 100m Price

8.5m x 4 = 34m Earnings

P/E = 100 / 34 = 2.94

This current yearly projected P/E i also while they have a hedge on gold which is due to run out in August 2012 (has another 45,000 oz to run). Imagine where their P/E goes to when this is finished and that is without any other developments in their other properties.

I understand there is some location risk with mining in West Africa but I feel this has been more than factored into the price already.

Here's a presentation by Endeavour Mining at the recent Denver Gold Group's European Gold Forum;

http://www.gowebcasting.com/events/denver-gold-group/2011/04/15/endeavour-mining-corporation/play/stream/2046

EDV Website - http://www.endeavourmining.com

I have also had a thread running on my own forum site (24Knews) on EDV for a year which can be read here - http://www.24knews.com/viewtopic.php?f=8&t=184&start=40

Edited by admin on 11/08/2014 - 06:20

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Pixel8r
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EDV to be included in GDXJ

One other bit of important news is that EDV is due to be included in the Market Vectors Junior Mining Index (GDXJ) at the close of trading on Friday 17th June.

I think this should lead to some additional volume in the stock and should be good for the price going forward.

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loriewil
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Endeavour's warrant is the way to go

If you are very optimistic about the future prospects for Endeavour you should seriously consider buying their long term warrant (EDV.wt.A) that does not expire until February 2014. It currently is priced approx. 70% less than the stock which means you get the same exposure to the asset at a 70% discount. In addition warrants usually outperform their associated stock by 50% to 100+% in any major move upward.

I have written many articles on the subject (I seem to be the only one doing so) over the past 7/8  years. I have developed 2 proprietary indexes - the Gold and Silver Warrants index (GSWI) and the broader Commodity-related Company Warrants Index (CCWI). You can get all the details here:

1. The “Secret” World of Gold & Silver Company Warrants http://www.munknee.com/2011/05/the-secret-world-of-gold-silver-company-warrants/

2. Gold & Silver Warrants Index (GSWI) Update  http://www.munknee.com/2011/06/gold-silver-warrants-index-gswi-update/

3. Buying Gold & Silver Company Warrants is Easy & Profitable – Here’s How (and Why!)  http://www.munknee.com/2011/06/buying-gold-silver-company-warrants-is-easy-profitable-%e2%80%93-here%e2%80%99s-how-and-why/

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