Endeavour Mining - EndAFO a good thing

On 23 March, Endeavour announced that it had entered into a definitive agreement with SEMAFO, whereby it will acquire all of the issued and outstanding securities of SEMAFO at a rate of 0.1422 Endeavour shares per SEMAFO share. At a stroke, the combination will create the largest gold miner in West Africa, with 26.9Moz Au of resources, 10.9Moz Au of reserves and c 1Moz pa Au of production, and project Endeavour into the ranks of the gold mining majors, ranking in the top 15 in the world in terms of both production and market capitalisation. On the terms announced, the acquisition will be accretive to Endeavour on the major measures of cash flow and profitability, as well as in terms of both resources and reserves.