Endeavour Mining - Showing its mettle as well as its metal

Endeavour’s Q121 financial results exceeded our expectations and were towards the top end of the range of analysts’ forecasts. In summary, Endeavour produced c 20% more gold than we expected during the quarter and sold c 30% more. This (positive) variance was then partially offset by a fractionally higher (negative) variance in operating expenses (albeit these were artificially inflated by US$22.6m of non-cash operating expenses) to give rise to a positive variance in adjusted net earnings attributable to shareholders from continuing operations of 16.6% relative to our prior expectations (see Exhibit 1). Perhaps more significantly, the results demonstrate that the integration of the Teranga assets into Endeavour’s portfolio is progressing smoothly (as expected) ahead of the latter’s London listing next month.