Endeavour Mining PLC (LSE: EDV)

Endeavour Mining PLC (LSE: EDV) is an FTSE 100 index listed one of the largest gold producers in West Africa. The Company has a portfolio of advanced development projects and exploration assets. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Rationale – Sell at GBX 1,868.00

• Profit Booking: EDV’s stock price came closer to the R1 level suggested in the previous report published on 22 November 2023. Considering the market conditions and the price action, it is prudent to exit the stock and book profit.
• Decline in Production Volumes & Profitability: The Company has witnessed a drop of around 9% YoY in Gold production volumes during Q3 FY23. On the profitability front, the adjusted EBITDA went down 14% YoY during H1 FY23.
• Macroeconomic Risk: The market sentiments can remain weak in the short-term due to 40-year high inflation, subdued consumer disposable income, geopolitical tensions, and political risks.

Share Price Chart  

Conclusion

Based on the notional gains, decline in profitability during Q3 FY23, and price action stance, a "SELL" recommendation on Endeavour Mining PLC (LSE: EDV) has been given at the current market price of GBX 1,868.00 (as of 01 December 2023 at 12:22 PM GMT).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 01 December 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: 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.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.