Endeavour Mining Capital is a merchant banking company focused on the resource markets. They have an incredible track record boasting an average 53% ROI in the last four years of business - consistently beating the indices every year. The Company pays a modest dividend and is one of the most profitable resource related companies on the TSX Stock Exchange.
The company marries money and management to mineralization – meaning they fund aggressive management teams who can source big, lucrative resource assets to build companies and create value. The first two years of business they focused on precious metals but have recently been involved in oil, gas, uranium, coal, and base metals. When you are buying Endeavour you are essentially getting a position in ground floor opportunities that offer incredible leverage.
Reflective of the companies success from 11/30/05 to 4/15/06 the the average 30% discount has narrowed to just about book. Caveat: the companies NAV is a bit of a black box as the company never offers a portfolio breakdown. It provides an unaudited NAV total monthly roughly 14 days after the end of each month and once a year on 8/30/05 it provides an audited NAV figure. Current Positions to the best of my knowledge include uuu.v, CMM.V, ccj.v, BGO, Bankers Petrolem, Yamiri Gold( Ygi.v), orl.v, fst.v, elr.to, epm.to. In the past the company had positions in BGO NTO SLW and may still have some. we just dont know.
On Thursday October 27th, 2005 the Company appointed Frank Holmes and U.S. Global Investors as Chairman and Equity Investment Advisor. Frank Holmes manages over $2B in the resource markets and the funds shareholders have benefited from peer leading performance year over year. His ability to time market cycles brings yet another unique advantage to Endeavour’s business model. In this market Endeavour should continue beating the indices substantially.
In the Company’s conference call on Tuesday Frank Holmes felt that the Company should trade a premium to NAV – not a discount to the books. When asked how this was going to be accomplished, the answer was simple. He said “Branding the Company’s superior track record and business model.” The Company now has a leader with incredible presence in the industry, media and investment community to let them know how the business model is going to benefit shareholders.
In late March '06 the company announced an up to 10% buy back of its shares commencing 4/3/06. I belive the company will buy back shares as long as they trade below book. Also Fidelity reported that it owns 13% of the shares.
Endeavour offers big leverage in a bull market and limited downside in a poor market as their track records says (2004 was a very poor market for precious metals and they still managed a 26% ROI). Endeavour also has exposure to a number of companies in a large range of development stages from private deals to producers giving a good asset mix to the portfolio. Currently the Company trades at book which still represents an opportunity to buy undervalued shares. The upside is twofold: 1) Increase in NAV potential in this resource bull market and 2) I expect ultimately move to a nice premium as investors seeking commodity diversification discover this financial gold mine.
This is a direct link the the company's NAV :
endeavourminingcapital.com
info on the coal investment- coalcorp.ca formerly AV.v soon to be CCJ.v.
info on Yamiri Gold and Energy (YGI.V) formerly Telco Plus- in june 2005 EDV owned about 18% of telco plus.
yamirigold.com
newswire.ca
Info on Eastern Platinum (ELR.to) (Gordon Keep and officer of Endeavour sits on the board along with David Cohen CEO of Norther Orion):
eastplats.com
Century Mining - www.centurymining.com
Mangements and sharholder interests are aligned as they earn an asset management fee but also a 20% incentive fee on the portion of the annual return on equity that exceeds 15%. Most comparable companies charge a 20% incentive fee on all profits. The company is domiciled offshore so tax considerations are minimal. I am projecting 20% equity growth for the next several years and that the shares will ultimately sell at a 40% premium to book to reflect the company's history and expertise.
As of 4/15/06 its far and away my largest investment but of course that could change at any time. |
