Endeavour hosts capital markets event to focus on its milestones and progressive dividend policy

Endeavour Mining Corp (TSE:EDV) (OTCQX:EDVMF) (FRA:E5Y1) said it will host a capital markets event on Monday to update shareholders on the company’s strategy and recent milestones, highlighting its long-term ability to reward shareholders. 

The event will take place on Monday at 2.00 pm BST and 9.00 am EST. 

In a statement, Endeavour CEO Sebastien de Montessus said: “Our team is excited to have the opportunity to provide greater visibility on our capacity to reward shareholders through the cycles while simultaneously investing in our future organic growth.”

“This is underpinned by our resilient business, disciplined capital allocation and competitive advantage in West Africa. Following the significant transformation of our business in recent years, we are now well-positioned within the senior gold producer peer group with a high-quality portfolio, a healthy balance sheet, and trusted partnerships with local stakeholders.

To reflect Endeavour’s “increase in size and scale” as the largest West African gold producer, it is implementing a more comprehensive Environmental, Social, and Corporate Governance (ESG) strategy.

“As part of the capital markets event, we will outline some of our more ambitious ESG initiatives aimed at supporting the social upliftment and socio-economic development in our host countries and local communities,” added de Montessus.

Key highlights to be presented at the event include:

• Implementing a minimum progressive dividend policy with a target of distributing at least $500 million to shareholders through to fiscal year 2023;
• Minimum dividends set at $125 million, $150 million, $175 million for FY2021, FY2022, and FY2023 respectively (which represents around $0.50 per share, $0.60 per share, $0.70 per share respectively based on current shares outstanding), up from its inaugural FY2020 dividend of $60 million or $0.37 per share, payable semi-annually, provided that the gold price remains above $1,500/oz;
• To provide shareholders with added value from prevailing higher gold prices above $1,500/oz, the minimum dividend can be supplemented with both higher dividends and by continuing its share buyback program;
• Strong commitment towards the current share buyback program, as evidenced with around $49 million (C$59 million) of shares already repurchased in April and May at an average price of C$28.45; and
• The company said it had the ability to reward shareholders due to its resilient business, high-quality portfolio of assets, diversified across three countries and seven mines, that can grow production above 1.5Moz annually while maintaining a competitive low AISC of under $900/oz.

The event will also focus on the senior gold producers’ ESG strategy, which is centered around two key pillars: investing in host countries and protecting the environment.

The Endeavour Foundation will implement the firm’s social investments and sustainability projects by focusing on health, particularly malaria, education, access to water and energy, and economic development.

“As part of Endeavour’s journey to net zero by 2050, the company is working on its roadmap to reduce its greenhouse gas emissions intensity by 30% by 2030,” said the company.

Similarly, among the “eight levers” identified to reduce emissions, switching to renewable power has the most potential, noted the company. Solar power is expected to form a core part of the group’s energy mix, starting with the construction of a solar power plant at the Houndé mine in Burkina Faso. Endeavour will also release its 2020 Sustainability Report on Monday.

Investors can register for the three-hour virtual capital markets event on Monday at 14:00 BST (9:00 EST) at this webcast link.

Alternatively, they can dial into the conference call using these dial-in numbers, no pin is required:

• Standard International Access: +44 (0) 33 0551 0200
• Canada Toll Free: +1 866 378 3566
• UK Toll Free: 0808 109 0700
• US Toll Free: +1 866 966 5335

A replay will be posted on Endeavour’s website.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors