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 indicatons might be is whether or not the company has a representative in managment or on the board of directors.
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.
Frank Holmes continues to believe 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.
Although in late March '06 the company announced an up to 10% buy back of its shares commencing 4/3/06. As far as i know the compnay actually repurchased a small fraction of that amount some 22000 shares. At one point Fidelity reported that it owns 13% of the shares but in its latest filing it only owned some 8% 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.
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. I am projecting 20% equity growth for the next several years and that the shares will ultimately sell at a premium to book to reflect the company's history and expertise.
I sold my shares as the discount evaporated but recently when the discount climbed back to 20% I re-established a decent position in anticipation of future growth and if the discount narrows that will only improve my rate of return on this investment. |
