Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Endeavour Financial — Investor Presentation (January 2009)
31 slides from Endeavour Mining's investor presentation, January 2009
Slide 1: Investor Presentation January 2009
ENDEAVOUR FINANCIAL CORPORATION INVESTOR PRESENTATION JANUARY 2009 Toronto Stock Exchange: EDV
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward-looking information relating to the future performance of Endeavour Financial Corporation. Forward-looking information, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ mat
Slide 3: Endeavour Financial
ENDEAVOUR FINANCIAL • Endeavour Financial Corporation (“Endeavour” or “EDV”) is an independent merchant banking company, providing specialist financial advisory services to the global natural resource sector • Listed on the Toronto Stock Exchange (EDV) • Offices in Monaco, George Town, London, and V
Slide 4: Corporate Overview
CORPORATE OVERVIEW • Issued & Outstanding Shares 30,373,145 Earn Out Shares* 2,389,779 Options 2,877,500 (average exercise price CDN$9.61) • Fully Diluted 35,640,424 • Current Share Price** CDN$2.26 • Market Capitalization (basic) CDN$68.6 million • Current BV/share*** CDN$4.75 to CDN$5.00 (mana
Slide 5: Offering Summary
OFFERING SUMMARY Issuer Endeavour Financial Corporation Amount $● (“the Offering”) Issue ● Units, comprised of a common share and ½ share purchase warrant Price In the context of the market Warrants Each full warrant entitled to purchase a common share for $● for a period of five years from the Clos
Slide 6: Investment Opportunity
INVESTMENT OPPORTUNITY • Unfolding opportunities in the Gold sector Net proceeds to be used for investments in the natural resource sector Market opportunity to acquire mining assets (primarily gold) at attractive valuations in a dysfunctional market • Endeavour is well positioned Strong exper
Slide 7: Investment Opportunity
INVESTMENT OPPORTUNITY • Attractive offering terms and entry point EDV shares are trading at an approximate 25% discount to tangible book value per share (cash & investments). See Appendix II for further details Endeavour’s Advisory business (acquired in July 2007) is currently given no value in
Slide 8: Gold Market Opportunity
GOLD MARKET OPPORTUNITY • We are in a very attractive valuation environment for long-term gold Primary Gold Production in Decline Supply flows five-year average 2650 Source : World Gold Council (2002-2006) Mine Production (net hedging) 61% Net central bank sales 14% 2600 Recycled gold (scrap) 25% 25
Slide 9: Gold Market Opportunity
GOLD MARKET OPPORTUNITY • We are in a very attractive valuation environment for long-term gold Central Bank Gold Agreement – Supply from the official sector expected to decrease ¾ First CBGA (1999-2004) – gold sales very close to 400 t annual limit ¾ Renewed in 2004 – gold sales limit increased to 5
Slide 10: Gold Market Opportunity
GOLD MARKET OPPORTUNITY • We are in a very attractive valuation environment for long-term gold Global Economic Factors – Gold investment demand expected to increase Governments are fighting global financial stress with limited success – the battle between policy reflation and economic recession is
Slide 11: Gold Market Opportunity
GOLD MARKET OPPORTUNITY • We are in a very attractive valuation environment for long-term gold Gold demand – Jewellery sector provides solid base Demand for gold has special characteristics that set it apart from other financial assets and commodities 69% of identifiable demand comes from the je
Slide 12: Gold Market Opportunity
GOLD MARKET OPPORTUNITY • Very bullish gold price signals Demand is increasing A flood of global liquidity & fiscal stimulus – devalued fiat currencies Jewellery sector provides solid base Supply is decreasing Expectation of reduced supply from the official sector Expectation that primary go
Slide 13: Dysfunctional Market – Gold Share Prices
DYSFUNCTIONAL MARKET – GOLD SHARE PRICES • Significant valuation gap – Endeavour 250 TED Spread spikes in August 2007, Credit Crisis starts impacting global markets tracks a universe of 50 junior gold Gold Price producers (25,000 to 250,000 ozs per Senior Producers year). Aggregate market cap has 20
Slide 14: Senior Management Team
SENIOR MANAGEMENT TEAM • Endeavour has assembled a strong, stable ¾ Neil Woodyer: Chief Executive Officer Chartered Accountant and former Chief Executive Officer of management team Lloyds International Trading • A team of over 20 highly experienced ¾ Bill Koutsouras: Executive VP, Chief Financial
Slide 15: Fiore Financial – Exclusive Advisor
FIORE FINANCIAL – EXCLUSIVE ADVISOR • Fiore is a private, boutique merchant banking firm focused on creating, financing and launching investment opportunities in the natural resource ¾ Frank Giustra: President & Chief Executive Officer sector Former President and later Chairman and CEO of Yorkton
Slide 16: Merchant Banking Model
MERCHANT BANKING MODEL • Long-term client relationships and transaction oriented culture Provides company with unique deal making and investment opportunities in global natural resource sector • Specialist financial advisory services Integrated with company’s strategic capital investments signif
Slide 17: Extension of Current Business Plan
EXTENSION OF CURRENT BUSINESS PLAN • Endeavour to continue with its existing merchant banking business plan Offering advisory services and providing equity and bridge loans in support of clients, transactions, and other market opportunities • Unfolding market opportunities in the Gold sector Buy
Slide 18: Endeavour Approach
ENDEAVOUR APPROACH • Deal driven and financially oriented • Use merchant banking skills to acquire, trade, restructure and refinance • Use merchant banking skills to exit • An intelligent approach is needed – focus on quality assets through technical expertise • Ability to source assets and create “
Slide 19: Investment Track Record
INVESTMENT TRACK RECORD • Endeavour is one of the leading transaction origination firms in resource finance • Historically, Endeavour has funded its deals from its own account, and brought in outside investors on a deal-by-deal basis through independent public companies • Building shareholder value
Slide 20: Company Building – The Wheaton River Example
COMPANY BUILDING – The Wheaton River Example • In 2001, Wheaton River had C$20 million cash, a mine in closure, and no strategic plan • Endeavour made an investment with strategic partners to acquire ~20% and gained control of the board • Introduced Ian Telfer as CEO to implement a “growth through a
Slide 21: Conclusion
CONCLUSION • Now is an ideal time to recapitalize and focus on gold opportunities • Value creation through: Buying at distressed levels in dysfunctional markets Deal making Combining and re-packaging assets Solving financial problems and pressures to maximize value Exit strategies Apprec
Slide 22: Conclusion
CONCLUSION • Endeavour is well-positioned Track record of creating wealth through transactions Investing alongside experienced professionals Access our network and deal flow Deal making team is in place and ready to implement Exploring the opportunity to source third-party capital, possibl
Slide 23: Appendices
Appendices ENDEAVOUR FINANCIAL 23
Slide 24: Appendix I: Board of Directors
APPENDIX I: BOARD OF DIRECTORS Directors • Michael Beckett, Chairman (independent) • Neil Woodyer, CEO • Patrick Mars, Director (independent) • Jorge Gamarci, Director (independent) • Wayne McManus, Director (independent) • Bill Koutsouras, EVP and Chief Financial Officer ENDEAVOUR FINANCIAL 24
Slide 25: Appendix II: Current Book Value Per Share
APPENDIX II: CURRENT BOOK VALUE PER SHARE AS AT SEPTEMBER Value Per Share Per Share • No Asset Backed Commercial Paper 30, 2008 (US$ US$ CDN$ millions) • No CDO, CDS or complex derivatives • No financial leverage or use of margin Equities $ 136.9 US$ 4.53 CDN$ 4.82 • 95% of Total Investments in curr
Slide 26: Appendix III: Endeavour Tombstones
APPENDIX III: ENDEAVOUR TOMBSTONES COMPANY SERVICE SUMMARY AMOUNT Mergers and Acquisitions Advised on the merger with Yamana Gold Inc. 9800 million Mergers and Acquisitions Advised on the merger with SXR Uranium One 5100 million Mergers and Acquisitions Advised on the merger with Goldcorp Inc. 5000
Slide 27: Appendix III: Endeavour Tombstones
APPENDIX III: ENDEAVOUR TOMBSTONES COMPANY SERVICE SUMMARY AMOUNT Corporate Finance Structure and arrangement of Equity Capital 442 million Mergers and Acquisitions Advised on the takeover of Bolivar Gold by Gold Fields 360 million Mergers and Acquisitions Structure and arrangement of the acquisitio
Slide 28: Appendix III: Endeavour Tombstones
APPENDIX III: ENDEAVOUR TOMBSTONES COMPANY SERVICE SUMMARY AMOUNT Mergers and Acquisitions Structure and arrangement of Reverse Takeover 200 million Mergers and Acquisitions Advised on the acquisition of Peak Mine 200 million Advised on acquisition of Colombian coal assets and Mergers and Acquisitio
Slide 29: Appendix III: Endeavour Tombstones
APPENDIX III: ENDEAVOUR TOMBSTONES COMPANY SERVICE SUMMARY AMOUNT Endeavour Financial acted as financial adviser to Uranium One Debt on their $100 million corporate loan facility, which was Co-Lead 100 million by Bank of Montreal and The Bank of Nova Scotia Advised on the Acquisition of 12.5% intere
Slide 30: Appendix III: Endeavour Tombstones
APPENDIX III: ENDEAVOUR TOMBSTONES COMPANY SERVICE SUMMARY AMOUNT Mergers and Acquisitions Advised on the Acquisition of Petrex (Proprietary) Limited 66.7 million Advised on the acquisition of Mena Resources and Mergers and Acquisitions 64.4 million arrangement of Equity Capital Advised on the struc
Slide 31: Endeavour Financial Corporation
ENDEAVOUR FINANCIAL CORPORATION Endeavour Financial Corporation is an independent merchant banking company focused on the global natural resource sector. The Corporation offers advisory services in the project, corporate and debt capital markets; equity financings; mergers and acquisitions; and stra
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