Business
Endeavour reports net income of US$213.5 million for quarter ended March 31, 2010
Endeavour reports net income of US$213.5 million for quarter ended March 31, 2010
About this update from Endeavour Mining Plc
[{"type":"text","content":"\n\n\n\n May 11, 2010 (Canada NewsWire Group) -- Toronto Stock Exchange: EDV\n\n Endeavour Financial Corporation ("Endeavour" or the "Corporation") today reported revenue of US$241 million and net income of US$213.5 million or US$2.20 per share for the quarter ended March 31, 2010. The financial performance was primarily the result of successful investments in two West African gold producing companies.\nAt March 31, 2010 the Corporation had gold strategy investments valued at US$454 million and general merchant banking investments of US$59 million. The Corporation's book value was US$532 million or approximately CDN$5.54 per issued and outstanding share.\nDuring the quarter ended March 31, 2010 the Corporation implemented its second strategic gold investment and invested US$132.8 million to acquire 920,195,430 common shares representing 43% ownership of Crew Gold Corporation ("Crew"). Subsequent to March 31, 2010 Endeavour acquired additional Crew common shares and it currently holds 924,068,078 common shares of Crew representing 43.21% ownership.\nIn addition to the Crew investment, the Corporation owns 201,902,657 common shares of Etruscan Resources Inc. ("Etruscan"), representing 55% ownership. Both Crew and Etruscan are gold producers active in West Africa. Their primary assets are the Lefa Gold Mine in Guinea and Youga Gold Mine in Burkina Faso. As of March 31, 2010 the value of the Crew and Etruscan investments totaled US$453.7 million and the total acquisition cost is US$196.6 million.\nEndeavour is implementing a gold investment strategy to create value by investing in junior gold producers at attractive entry points and by becoming actively involved with the companies. The ultimate creation of an intermediate-sized gold producer is anticipated to drive higher valuation multiples.\nNeil Woodyer, Chief Executive Officer commented "Our gold strategy has had a successful start and its success has transformed our company. Over the last 12 months, our net tangible assets have grown from US$165 million to US$479 million and 88% of our capital is now strategically invested in gold producing companies. Endeavour's Advisory team remains active and has generated US$11.2 million of fee revenue so far this fiscal year. This team provides the manpower, skills and market & industry intellig...