{"id":63475,"date":"2023-09-20T11:13:38","date_gmt":"2023-09-20T15:13:38","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/endeavour-mining-good-potential-in-the-gold-mining-sector-tsxedvca\/"},"modified":"2023-09-20T11:13:56","modified_gmt":"2023-09-20T15:13:56","slug":"endeavour-mining-good-potential-in-the-gold-mining-sector-tsxedvca","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=63475","title":{"rendered":"Endeavour Mining: Good Potential In The Gold Mining Sector (TSX:EDV:CA)"},"content":{"rendered":"
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Introduction<\/h2>\n

The London-based Endeavour Mining plc<\/strong> (TSX:EDV:CA<\/span>), (OTCQX:EDVMF)(LSE:EDV) is one of the largest gold producers in West Africa. The Company has four operating assets consisting of the Hound\u00e9<\/strong> and Mana<\/strong> mines in Burkina Faso, the <\/span>Ity<\/strong> mine in C\u00f4te d\u2019Ivoire, the <\/span>Sabodala-Massawa<\/strong> mine in Senegal, two greenfield development projects (<\/span>Lafigu\u00e9 and Kalana<\/strong>) in C\u00f4te d\u2019Ivoire and Mali and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, C\u00f4te d\u2019Ivoire, Mali, Senegal, and Guinea.<\/span><\/p>\n

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EDVMF Map Assets West Africa (EDVMF Press Release)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Endeavour Mining <\/strong>released its second-quarter 2023 results on August 2, 2023.<\/p>\n

Important note:<\/strong> This article is an update of my May 8, 2023 article. I have been following EDVMF on Seeking Alpha since 2021.<\/p>\n

1 – 2Q23 Results Snapshot<\/strong><\/h3>\n

On August 2, 2023, Endeavour Mining announced that gold production for the second quarter of 2023 was <\/span>267,619 Au ounces<\/strong> and sold <\/span>268,684 Au ounces<\/strong> at an AISC of approximately <\/span>$1,000\/oz.<\/strong><\/p>\n

Note: <\/strong>On March 10 2022, the Company completed the sale of its Karma<\/strong> mine in Burkina Faso, and on October 17 2022, the Company launched the construction of the Lafigu\u00e9 project, with the first gold production scheduled for 3Q24. Also, on June 30, 2023, the Company sold its 90% interest in the Boungou and Wahgnion<\/strong> non-core mines in Burkina Faso.<\/p>\n

CEO Sebastien de Montessus said in the conference call:<\/p>\n

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The quality of our portfolio is set to further increase as our 2 growth projects the Sabodala-Massawa BIOX project in Senegal and the Lafigue project in Cote d’Ivoire are progressing well. Both are on budget, are on schedule to commence production in Q2 and Q3 ’24, respectively.<\/p>\n<\/blockquote>\n

Revenues for 2Q23 were $524.1 million<\/strong>, with a net loss of $109.3 million<\/strong>. Adjusted earnings were $53.7<\/strong> million or $0.22<\/strong> per share. The company said it was on track to achieve FY23 Guidance. BIOX (Sabodala-Massawa)<\/strong> and Lafigu\u00e9<\/strong> Projects are on budget and schedule.<\/p>\n

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EDVMF H1 2023 Highlights (EDVMF Presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Finally, Endeavour Mining is paying a semi-annual dividend of $0.40<\/strong> per share or a dividend yield of 3.95%. <\/strong>The company also has a share buyback program. The company repurchased $9.2 million or 0.4 million shares<\/strong> in 2Q23 and $20.0 million or 0.8 million shares in H1-2023.<\/p>\n

Sabodala-Massawa and Lafigu\u00e9 greenfield project update 2Q23:<\/strong><\/h4>\n