Endeavour Mining Faces Heightened Operational, Geopolitical Risks, Analyst Says: 'Challenging Position'

Endeavour Mining PLC EDVMF paused operations in early 2024 at its Hounde gold mine due to a prolonged worker's strike.

Operational and geopolitical risks have risen amid significant management changes this year, according to RBC Capital Markets.

Analyst Wayne Lam downgraded the rating for Endeavour Mining from Outperform to Sector Perform, while slashing the price target from CA$48 ($34.76) to CA$40.

The Endeavour Mining Takeaways: Two of the company's new projects being ramped up spell greater technical complexity than previous new builds, Lam said in the downgrade note.

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There is growing "investor aversion to West Africa given the volatility of economic stability agreements," he added.

Several management changes at Endeavour Mining, including the departures of Mark Morcombe (COO) and Jono Lawrence (EVP Exploration), have raised concerns around execution ahead, the analyst stated.

With costs in the first half of the year being driven higher by lower grid power availability and focus on lower grade phases, "we view EDV being in a challenging position to achieve guidance this year," he further wrote.  

EDVMF Price Action: Shares of Endeavour Mining had declined by 2.71% to $20.14 at the time of publication on Tuesday.

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