$EDV @EndeavourMining: Q3 Results Digest

Consensus	No. of	CFPS pre-WC	Adj. EPS	Production	AISC
	Estimates	($/sh)	($/sh)	(koz)	($/oz)
Bloomberg	11	1.06	0.41	344	n.a.
Company Surveyed	17	1.05	0.42	343	969
Actual		1.30	0.61	382	904
Beat / Miss		Strong Beat	Strong Beat	Strong Beat	Strong Beat

·     Q3 Broker consensus vs. actuals

Endeavour Mining just published Q3-2021 results. The press release is quite lengthy, below is a quick digest.

›         Positioned to beat full-year production guidance of 1,365-1,495koz within the guided AISC range of $850-900/oz; which would mark the ninth consecutive year of meeting guidance. 

·     Healthy balance sheet with Net Debt reduced to $70m despite having returned $105m to shareholders during Q3-2021; Net Debt to EBITDA leverage ratio stands as near zero

·     Continued strong focus on shareholder returns with $224m paid year to date

›         As a reminder, dividend strategy is to distribute at least $500m over the next three years, with supplemental returns by way of additional dividends and buybacks if the gold price prevails above US$1,500/oz and leverage remains below 0.5x Net Debt to adjusted EBITDA

›         Paid H1-2021 interim dividend of $70m during the quarter, which is over half the FY-2021 minimum dividend, demonstrating commitment to paying supplemental returns over the fixed minimum

›         Completed $35m of buybacks during the quarter; a total of $94m of buybacks have now been completed since the start of the program in April 

Click the link to view short video with our CEO, Sébastien de Montessus, presenting a summary of our Q3 Results: 
https://youtu.be/-e3ubUmUCKg

·     Organic growth remains on track

›         Construction of Sabodala-Massawa Phase 1 on track for completion by year-end

›         DFS for Sabodala-Massawa Phase 2 expansion, Fetekro and Kalana expected in Q1-2021 to allow for new resources at Sabodala-Massawa and Fetekro to be incorporated into studies

›         Group on track to discover more than 2.5Moz of Indicated resources in 2021 with significant recent discoveries at Ity, Houndé, Sabodala-Massawa and Fetekro

·     LSE listing, indexation and liquidity have performed well

›         Subsequent to Endeavour's premium listing on the London Stock Exchange ("LSE"), Endeavour was included in the FTSE All Share, FTSE 250, FTSE 350 and FTSE 350 Lower Yield indexes as part of the FTSE Q3-2021 rebalancing, which became effective on 20 September 2021

›         Strong liquidity in the UK (LSE, CBOE, CXE, BXE, OTC) since listing, equivalent to 25% of total trading

›         Upcoming FTSE 100 inclusion potential as our current market capitalisation positions us within the top 100 companies (FTSE market cap review date is 30^th November)

·     Upcoming catalysts:

TIMING	CATALYST
Q4-2021	Exploration	Resource updates at Sabodala-Massawa, Houndé, Ity and Fetekro
Q4-2021	Sabodala-Massawa	Completion of Phase 1 plant upgrades
Q1-2022	Sabodala-Massawa	Completion of Definitive Feasibility Study for Phase 2
Q1-2022	Fetekro	Completion of Definitive Feasibility Study
Q1-2022	Shareholder Returns	H2-2021 dividend
Q1-2022	Kalana	Completion of Definitive Feasibility Study

 www.endeavourmining.com/

 

#Uranium getting some love from #HedgeFunds in bet on #GreenEnergy

Global energy crunch has highlighted role of uranium, in a transition away from fossil fuels

After years of stagnant prices, 37% rally in prices for nuclear fuel uranium has helped attract investors back to the sector.

Uranium mining equities have rallied 58% this year

Funds such as Ben Melkman's New York-based Light Sky Macro, Anchorage Capital and Tribeca Investment Partners have been positive on the outlook for the raw material, as a global energy crunch highlights the role of nuclear power in a transition away from fossil fuels.

- price of raw uranium, known as yellowcake, rose to $50 a pound last month, its highest level since 2012 when buying by investors drove the price from $20/lb. to a record high of $136 in June 2007.

- Ben Cleary, of Tribeca Investment Partners in Singapore, whose fund is up 345 per cent net of fees this year. "Clearly there's speculative money coming back into the sector, there were massive price moves in September."

- Sprott's Physical Uranium Trust  has catalyzed the price rise with significant buying of uranium, but investors say the broader energy transition is highlighting the key role of nuclear — a low-carbon source of baseload power.

… 

energy crisis in Europe and China, and has "placed uranium back in the spotlight", said Rob Crayfourd at CQS New City Investment Managers.

"The political fallout of this energy crisis will be a greater willingness in the west to extend the life of the existing reactor fleet," he said. "It has focused governments on the benefits of secure supply of energy from the nuclear fleet. We expect that to lend support [to prices]." 

…

"Light Sky Macro sees an immediate and sizeable opportunity in the uranium sector, making it one of our highest conviction views for 2021," he wrote in a note to clients, seen by the Financial Times, earlier this year.

"The growing focus on 'green energy' at a political level and the growing demand for [sustainable] assets in the investment community should turn uranium into one of the most asymmetric trades for the coming years," he wrote, meaning that the possibility of potential gains far outweighs the risk of losses.

Also profiting is Sean Benson, founder of London-based Tees River. His uranium fund, which buys equity stakes in uranium miners, is up 115 per cent this year.

Read the whole piece on the FT here: https://www.ft.com/content/e4a7c920-a5da-4c00-8994-d2bef944e81c?

bit.ly/MasterMetals

Visualizing Copper’s Role in a Low-Carbon Economy

#Copper is considered the most essential metal in the transition to #RenewableEnergy and #electrification. 

Goldman Sachs predicts copper demand for low-carbon technologies will grow to 5.4 million tonnes by 2030, up from around 1 million tonnes in 2021.

Meanwhile, the number of operating mines and proposed projects are not meeting projected demand and the supply scenario looks quite constrained over the medium term.

From VisualCapitalist.com

Visualizing Copper's Role in a Low-Carbon Economy

October 5, 2021

The following content is sponsored by Teck

Climate change is top of mind for much of the world's population.

The transition to renewable energy and electrification will require tons of metals, and copper is considered the most essential.

The above infographic from Teck outlines copper's role in low-carbon technologies, highlighting why the red metal is essential for a low-carbon future.

Why Copper? 

Copper has been an essential material to man since prehistoric times. In fact, it is the oldest metal known, dating back more than 10,000 years and one of the most used because of its versatility.

The metal has four key properties that make it ideal for energy storage, propulsion for electrical vehicles (EVs), and renewable energy:

• Conductivity: Copper has the highest electrical conductivity rating of all non-precious metals.
• Ductility: Copper can easily be shaped into pipes, wires or sheets.
• Efficiency: Copper's thermal efficiency is about 60% greater than aluminum, so it can remove heat far more rapidly.
• Recyclability: Copper is 100% recyclable and can be used repeatedly without any loss of performance.

In addition to its unique properties, copper remains relatively affordable, making it a key part of the energy transition.

A Cornerstone of the EV Revolution

EVs can use up to four times as much copper when compared to an internal combustion engine (ICE) passenger car. The amount goes up as the size of the vehicle increases: a fully electric bus uses between 11 and 18 times more copper than an ICE passenger vehicle.

Copper is used in every major EV component, from the motor to the inverter and the electrical wiring. In fact, a fully electric vehicle can use up to a mile of copper wiring.

Currently, there are few alternatives to copper. Aluminum is the closest one, but despite it being lighter and almost three times cheaper, aluminum cables require double the size of any copper equivalent to conduct the same amount of electricity.

The Most Essential Metal for Renewable Energy 

Copper is an essential element for almost all electricity-related technologies. According to the Copper Alliance, renewable energy systems can require up to 12x more copper compared to traditional energy systems.

Technology	2020 Installed Capacity (megawatts)	Copper Content (2020, tonnes)	2050p Installed Capacity (megawatts)	Copper Content (2050p, tonnes)
Solar PV	126,735 MW	633,675	372,000 MW	1,860,000
Onshore Wind	105,015 MW	451,565	202,000 MW	868,600
Offshore Wind	6,013 MW	57,725	45,000 MW	432,000

By 2050, annual copper demand from wind and solar technologies could exceed 3 million tonnes or around 15% of 2020 global copper production.

The Race for Copper

Goldman Sachs predicts copper demand for low-carbon technologies will grow to 5.4 million tonnes by 2030, up from around 1 million tonnes in 2021.

Meanwhile, the number of operating mines and proposed projects are not meeting projected demand and the supply scenario looks quite constrained over the medium term.

"We have deficits over the course of 2021 and next year. Inventories will be run down to very low levels, we believe, by the middle of 2022."

—Nick Snowdon, Commodities Strategist, Goldman Sachs

As the transition to renewable energy and electrification speeds up, so will the pressure for new copper projects in the pipeline.

Teck is one of Canada's leading mining companies committed to responsibly producing copper needed for a low-carbon future.

https://www.visualcapitalist.com/visualizing-coppers-role-in-a-low-carbon-economy/

Freeport $FCX took it on the chin today as #Copper got hit on the #Evergrande contagion

Its #Gold exposure couldn't save it from #China fears.

See more Mining Stocks Charts here.
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MasterMetals

@MasterMetals

Things ain't looking pretty for #Miners $RIO & $BHP

Those juicy yields are now at over 10% for both @RioTinto & @BHP.

See more Mining Stocks here.

@TradingView

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MasterMetals

@MasterMetals

This brought back some great memories! @VW 1979 4DR #Rabbit

This brought back some fantastic memories! 

MasterMetals Tweets: @pizdets17 Mine a @VW 1979 4DR #Rabbit bought for ...: @pizdets17 Mine a @VW 1979 4DR #Rabbit bought for $250 in 1990 https://bit.ly/3z4MUWI — MasterMetals (@MasterMetals) Sep 12, 2021 From M...

How does #GOLD stand up to other assets in terms of #Volatility?

Gold’s volatility increased less than that of equities and many commodities in 2020 

World @GoldCouncil analysis suggests Gold is still the most effective commodity investment in a portfolio, standing apart as a differentiated asset from the commodities complex.

Historically Gold has benefited from six key characteristics:

NGEx’s Los Helados #Copper-#Gold deposit $NGEX

Still waiting on NGEx’s Los Helados #Copper-#Gold deposit updated resource estimate based on current metals prices…

The original numbers were run on $3/lb. #Copper and

#LatAm #Gold Producer @CerradoGold reports 94.8% IRR for Monte do Carmo #Brazil $CERT

Cerrado Gold came out with an updated PEA for its Brazilian Gold mine, Monte do Carmo. Some excellent numbers:

• After-Tax IRR of 94.8%, NPV5% US$617MM 

• Gold Production of 150,000 oz/yr. for first 5 years

• AISC of US$431/oz over first 5 years

• Low Initial Capex of US$126MM (incl. US$25MM contingency)

Here are some highlights and a comment from Mark Brennan, CEO. 

#MiningStocks Financings continue to drop, average deal size at 70-week low

ORENINC INDEX - Monday, August 16th 2021

  Last Week: 19.28

This week: 18.49

The Oreninc Index decreased

$550BN will shift from #Commodities importers to exporters in 2021, nearly 2X the $280BN reverse transfer in 2020 as prices collapsed.

Winners & Losers From Surge in Commodity Prices 

Gains for commodity exporters will easily outweigh their losses last year as the pandemic spread and crushed demand for raw materials: 

Bloomberg Economics estimates that $550 billion will shift from importers to exporters in 2021, nearly double the $280 billion reverse transfer last year when prices collapsed.

In absolute terms, Russia will benefit the most. China's net exports will drop by around $218 billion — far higher than the figures of around $55 billion for the next-worst off countries, India and Japan. 

See the whole article on Bloomberg here: https://www.bloomberg.com/news/articles/2021-07-30/here-s-who-wins-and-who-loses-from-the-surge-in-commodity-prices

bit.ly/MasterMetals

#Tesla co-founder JB Straubel’s @RedwoodMat-erials #Battery recycling #startup raises $ 700MM to upend #EV supply chain

JB Straubel’s ambitious battery recycling start-up Redwood Materials has raised more than $700m in a funding round as it seeks to upend the US supply chain for electric vehicles.

The fundraising, which is more than six times bigger than the electric carmaker achieved in its first six equity rounds combined, values the start-up at $3.7bn, according to two people familiar with the matter. Redwood declined to comment on the valuation.

The Nevada-based company’s ultimate aim is to create a “closed-loop supply chain for electric vehicles” in the US, with the renewal and re-use of car battery materials eliminating the need for the environmentally damaging process of mining for new raw ingredients.

Se the whole story on the FT here: Tesla co-founder’s battery recycling start-up raises $700m

August 15, will mark the 50th Anniversary of when the US stopped pretending #Dollars were worth their weight in #Gold.

In a few weeks, August 15, we’ll be hitting the 50th Anniversary of when the US—and thus, the rest of the world— stopped pretending that #Dollars were worth their weight in #Gold. Its effects have since been felt across the board, as #USD’s Purchasing Power has steadily declined https://t.co/5K9pw2hXfx

— MasterMetals (@MasterMetals) July 23, 2021

In a few weeks, August 15, we’ll be hitting the 50th Anniversary of when the US—and thus, the rest of the world— stopped pretending that #Dollars were worth their weight in #Gold. Its effects have since been felt across the board, as #USD’s Purchasing Power has steadily declined…

MasterMetals Tweets: In a few weeks, August 15, we’ll be hitting the 50...:

#Gold - #GoldenCross at hand?

The daily chart of the gold futures shows the 50-day moving average (blue line) crossing the 200-day moving average (red line).

This is called a golden cross. The golden cross is a technical chart pattern indicating the potential for a major rally.

The MACD (lower chart) is very oversold and crossing the red line. This supports higher prices. The Relative Strength (RSI) (upper chart) is also pointing higher.

There's a feeling that the gold price is currently being held back by silver prices, as the July silver futures contract is in the delivery month and the open interest, which is high, indicates holders of the contracts are demanding delivery.  😥 

The 30-minutes Silver Chart (1 bar every 30 minute), shows how the Big Boys are putting pressure on silver prices for this very purpose.  Once this is done, we could expect higher prices for Gold & Silver across the board. 

Stay tuned! 

https://bit.ly/MasterMetals

#Azimut continues to hit it out of the park at #Elmer! Drills 24.0 g/t #Gold Au over 18 m, incl. 38.7 g/t Au over 9 m, in the expanding #Patwon Gold Zone, Elmer Property, #Quebec

Azimut continues to hit it out of the park! 

Highlights from the news release of June 22, 2021

• Patwon remains wide open below 450 metres, with a possible gold grade increase with depth.
• Azimut's management considers Patwon to be one of the largest gold discoveries in the James Bay region since the discovery of the Éléonore deposit in 2004.
• The mineralized body is currently defined over a strike length of 500 metres and a minimum depth of 450 metres, where the mineralized system remains robust and open.

Don't Sleep on @RupertResources! 👀 at these widths! $RUP.v

#Finland #Gold Explorer @RupertResources on track to deliver. 

#Cormark & @Scotiabank with comments on Rupert Resources' latest drill results from #Ikkari. 

Below is Scotiabank's comment:

 

The Gold Price Pullback Can't Overshadow What is Shaping Up to be an INCREDIBLE Discovery…: 

Earlier this week, Rupert Resources (RUP-CN, Not Covered) reported yet another set of impressive drill results (according to Scotia Mining Sales - look at these widths!)  from its 100%-owned from its Ikkari prospect, the focus of its ongoing exploration program at the 100% owned Pahtavaara Project in the Central Lapland Greenstone Belt, Finland. The mineralized strike length at Ikkari is at least 650m in total with mineralization on all sections intersected to a depth of at least 300 to 500m. 

Highlights from Wednesday's release include:

·       Hole 121063 demonstrated multiple zones of higher grade gold mineralisation re-emerging at depth in the western section of Ikkari contained within a broad intercept of 1.9g/t gold over 142m

·       Hole 121028 intersected 3.1g/t Au over 76m from 248m as part of the infill program in the central portion of the discovery and a step back Hole 121030 beneath this intersected two strongly mineralized zones of 3.7g/t gold over 77m from 245m and 2.8g/t Au over 65m from 346m

·       Hole 121029 is a shallow step out hole to the northwest and intersected 2.1g/t Au over 25m from 124m

·       Hole 121032 intersected mineralisation both at surface and in multiple zones including 1.6g/t Au over 74m from 396m, with mineralisation extending to >450m vertical meters.

·       The Mineralized system at Ikkari remains open in all directions

1)       RUPERT is WELL-FUNDED: RUP's existing cash plus the recent funding totals around $60M.Taking into account and outstanding Agnico Eagle warrants (AEM already owns 10% of RUP), as well as  in the money options, RUP has a fully diluted cash position of over $80M and is very well funded for the critical valuation uplift stages of project development. Most importantly, RUP has locked in its required drilling capacity for the foreseeable future including the BoT rig that has been its primary exploration tool for the last two years.

2)      KEY CATALYST AHEAD - MAIDEN IKKARI RESOURCE COMING SUMMER 2021: Resource work is progressing with RUP's maiden Ikkari resource still planned for this summer. According the company, preliminary work on project economics, as well as work on permitting has commenced. Lab turnarounds have slowed with increased activity in the region and sector generally but the  critical mass of drilling and assay results were delivered over the winter to allow the resource work will all culminate in the near-term!

Attached is an excerpt from Cormark Securities' research comment on June 17th. 

bit.ly/MasterMetals

#GOLD: Getting ready to break out —UPDATED! $GLD

GOLD looking to break through the 200 Day Moving Average. 

The 20 Day Moving Average has also crossed the 100 Day Moving Average to the upside portending better times ahead for the "Barbarous Relic". 

That’s what it looked like this morning May 17, 2021 before Gold broke out. 

This is what it looked like after:

Looking bullish! 

See more Metals Charts here:

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$EDV @EndeavourMining Q1 Results beats on all numbers

Beat across all metrics driven by production beats at Boungou, Mana and Houndé, and AISC beats at Boungou, Ity and Mana

 

FY-2021 #Gold production guidance of 1,365-1,495koz at AISC of $850-900/oz  

Through its control of #Cobalt & #BatteryMetals, @Glencore warns of future China dominance in #EV's. $GLEN.L

What happens [when] the Chinese say we are not going to export batteries, we are going to export electric vehicles. Where are the batteries going to come from? 

The car industry in the US and Europe risks being left behind by their Chinese rivals unless they secure supplies of cobalt, according to the world's biggest producer of the key battery metal.

Glencore chief executive Ivan Glasenberg told the FT Future of the Car Summit on Wednesday that western carmakers would be naive to think they could always rely on China to supply the batteries for electric vehicle fleets.

Glasenberg said Chinese companies had been quick to realise the vulnerability of their supply chains and "tied up" lots of cobalt from the Democratic Republic of Congo.

Chinese companies already control about 40 per cent of the DRC's output and have also signed long-term supply agreements with Glencore, the only major western miner operating in the country.

China has also built a dominant position in cobalt processing and is investing directly in mines. Earlier this year CATL, the Chinese battery group that has a market value of $130bn, paid $137m for a 25 per stake in China Molybdenum's Kisanfu copper-cobalt mine.

Glasenberg said Glencore would consider selling a stake in one of its DRC mines to a western carmaker, although it had not received any approaches.

Glencore is expected to produce about 35,000 tonnes of cobalt this year, a figure that could increase by 25,000 to 30,000 if the company decides to develop a new ore body at Mutanda, a mothballed mine in the DRC. "I think that will come on stream in the next 18 months," said Glasenberg.

See the whole article on the FT here: https://www.ft.com/content/0ee4a6cb-9dbe-4fee-84d0-3f48f3190935?desktop=true&segmentId=d8d3e364-5197-20eb-17cf-2437841d178a#myft:notification:instant-email:content

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MasterMetals

@MasterMetals