Endeavour Mining - Q2 outperforms ahead of likely Q3 index inclusion

At US$0.727/share, Endeavour’s net adjusted EPS, released on 4 August, was unequivocally above both Edison’s and the top end of the range of analysts’ forecasts (of US$0.43–0.65/share) for Q221 (source: Refinitiv, 3 August 2021). Teranga’s assets were reported to have integrated well into the group structure and all seven of its operating mines hit their stride together, as a result of which the company is on target to achieve the top end of its production guidance range of 1,350–1,475koz for the year (see Exhibit 4). An above par interim dividend also suggests a full-year payout above the minimum guided level. Results in Q321 will almost inevitably be adversely affected by the seasonal rains in West Africa. We have now adjusted our forecasts for Endeavour for the remainder of the year in the light of Q221 results (see Exhibit 6), ahead of likely FTSE and MSCI index inclusion in September after MSCI Russell confirmed that it had passed liquidity tests for a company listed in its country of incorporation.