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Endeavour Mining: Robust Results From Updated Fetekro Study

Mar. 01, 2021 6:50 PM ETEndeavour Mining plc (EDVMF), EDV:CA33 Comments
Taylor Dart profile picture
Taylor Dart


  • Endeavour Mining recently released a positive Pre-Feasibility Study for its Fetekro Project in Cote d'Ivoire.
  • The study has shown significant improvements from the previous Preliminary Economic Assessment, with the projected production profile boosted to 209,000 ounces per annum.
  • Endeavour Mining already had an enviable organic growth pipeline ahead of the recent Fetekro Pre-Feasibility Study, and this project could push Endeavour closer to the 1.8-million ounce mark.
  • Given Endeavour's solid organic growth pipeline and transition into a lower-cost producer, thanks to Sabodala-Massawa and Boungou, I see this violent correction as a buying opportunity.

It's been a rough 15 months for Endeavour Mining (OTCQX:EDVMF), given that the stock has continued to lag its peers following its failed bid to acquire Centamin Egypt (OTCPK:CELTF). However, this failed bid ended up being a blessing in disguise for the company because it was able to scoop up Semafo at the COVID-19 Crash lows and recently completed a merger with Teranga Gold (OTCQX:TGCDF). This has transformed the company from an intermediate producer to a senior gold producer in less than a year, and its recent Pre-Feasibility Study results out of Fetekro suggest that further growth to 1.75~ million ounces could be attainable by FY2024. Given the continued robust results out of Endeavour's project pipeline, I see this violent correction as a buying opportunity. All figures are in US Dollars unless otherwise noted.

(Source: Company Presentation)

Endeavour Mining released its FY2021 guidance last week, with its outlook set at 1.45~ million ounces at all-in sustaining costs of $865/oz. This is a massive boost from its FY2019 results of 651,000 ounces at $818/oz, given that the company is on track to more than double production while maintaining a similar cost profile. As we've seen elsewhere in the sector, growing production while keeping costs low is not easy, with Northern Star's (OTCPK:NESRF) acquisition of Pogo and Evolution's (OTCPK:CAHPF) acquisition of Red Lake being a recent example of this. Fortunately, Endeavour has accomplished its growth through shrewd acquisitions with favorable timing, with its Kalana, True Gold, Semafo, and Teranga acquisitions all being recent examples. However, one of its best investments could end up being its decision to focus its exploration efforts towards Fetekro in 2017, and increasing its stake from 65% to 80% recently on the project.

(Source: Company Presentation)

As noted earlier, Endeavour Mining released an updated study for its Fetekro Projet, and

This article was written by

Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I am/we are long GLD, EDVMF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

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