Section 1: Company Overview and Fundamental Insights

1.1 Company Overview:

Endeavour Mining Corp (TSX: EDV) is a leading global gold producer and the largest gold miner in West Africa, which is engaged in operating four mines in West Africa. Besides, it is also having project development and exploration assets.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~55.79% of the total shareholding. La Mancha Global Holdings, Ltd. and BlackRock Investment Management (UK) Ltd. holds a maximum stake in the company at ~­­­19.44% and ~11.54%, respectively.

1.4 Key Metrics:

The company is recording higher numbers in term of revenue and EBITDA and net income. Moreover, on the sequential basis the company reported higher margins and made a turnaround in its operating margin, reflecting its resilience, which is a key positive. Furthermore, it flashed healthy performance from its cash from operations.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as announcement regarding an acquisition and expanding its operations in U.S:

2.2 Insights of Q1 2022:

Section 3: Key Risks, Company Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Cash Flow Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavorable movement in the stock prices.

Disclaimer

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