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UPDATE 1-Endeavour Mining declares first dividend, eyes secondary listing

Published 2020-11-12, 10:12 a/m
© Reuters.
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* Endeavour declares first annual dividend

* Raises production outlook for core mines Ity and Houndé

* Miner targets secondary listing in NY or London in Q2 2021

* CEO will consider share buyback if underperformance continues (Adds analyst and management quotes)

By Helen Reid and Jeff Lewis

JOHANNESBURG/TORONTO, Nov 12 (Reuters) - West Africa-focused gold miner Endeavour Mining EDV.TO on Thursday declared its first annual dividend, saying it will pay out $60 million, or $0.37 per share, to investors after it reported higher third-quarter production.

Shares in the company rose 3.7% by 1445 GMT, with Credit Suisse (SIX:CSGN) analysts welcoming the dividend, to be paid out to shareholders a quarter earlier than expected in the first three months of 2021.

Endeavour's third-quarter production jumped 64% from the previous quarter to 244,000 ounces of gold.

"We've worked hard and invested heavily in recent years to build the platform we have today," said Endeavour CEO Sébastien de Montessus.

"I really believe this work is now paying off and we are looking good for the end of the year and into the future."

De Montessus said the Toronto-listed company was weighing the merits of London versus New York for a secondary listing, which he aimed to announce in year-end results. The planned listing plan, initially unveiled in August, is targeted for the second quarter of next year.

De Montessus also said he would consider a share buyback "if and only if" the share price continues to underperform.

Endeavour also extended the mine life and production outlook of its two core mines, Ity in Ivory Coast and Houndé in Burkina Faso, in updated plans.

Houndé is expected to produce an extra 106,000 ounces of gold per year on average over the next five years, up 27% from Endeavour's previous projection. Ity is seen producing an additional 170,000 ounces over the next 10 years, up 58% from the previous mine plan.

Endeavour on Tuesday said it was in talks to combine with smaller miner Teranga Gold TGZ.TO .

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