- Endeavour Mining released its Q4 and FY2020 results last week and is getting ready to graduate to senior producer status this year with two transformative acquisitions last year.
- Given the strong cash generation expected in FY2021, the company has announced a competitive dividend, an aggressive buyback program, and is taking a pause on M&A for the time being.
- Despite this stronger investment case, Endeavour can be bought at a ~18% free cash flow yield assuming FY21 free cash flow of just $950 million, and barely 2.1x FY21 sales.
- In a market where investors are willing to pay over 20x sales, 3% free cash flow yields, and more than 100x earnings for high-flyers, Endeavour continues to look like a solid bet for investors hunting for value.
For further details see:
Endeavour Mining: A High-Margin Producer With An Enviable Organic Growth Profile