Thu, Jun 16, 2011 - 5:09pm
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;
EDV Website - https://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 - https://www.24knews.com/viewtopic.php?f=8&t=184&start=40
Edited by: Pixel8r on Nov 8, 2014 - 5:20am