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.
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 6/30 it provides an audited NAV figure. I dont know what the companies current positions as they have stopped giving out much information in that regard. I suppose one of the best indications might be is whether or not the company has a representative in managment or on the board of directors. The company has indicated to me in emails that it plans to improve their disclosure. the company now reports on a quarterly basis- what industries they are in, what geographical areas, new investments they have made, and the percentage of various types of investments, for examples warrants now represent about 25% of their portfolo and cash 10%.
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.
The latest conference call on 5/4/07 was a gem listen to it and view the slide presentation on the company's website. As of 5/4/07 the shares sell at a 16% discount to NAV, while I estimate the p.e. ratio to be around 3! I believe that sooner or later, as investors realize what a gem this company is, it will trade as p.e multiple rather than on an NAV basis. By then I am looking for a minimum price of $40.
EDV.to is currently the largest position in my portfolio. Of course this could change at any time without my updating this
here.
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
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 a 2% asset management fee but also a 20% incentive fee on the portion of the annual return on equity that exceeds 8%. Most comparable companies charge a 20% incentive fee on all profits. The company is domiciled offshore so tax considerations are minimal. |
