$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/