GEORGE TOWN, Grand Cayman, Sept. 28 /CNW/ -- Endeavour Financial Corporation ("Endeavour" or the "Corporation") today reported net income of US$27.7 million or US$0.29 per share for the quarter ended June 30, 2009.
At June 30, 2009 the Corporation had cash and cash equivalents of US$121.8 million and investments of US$71.0 million. The Corporation's cash is currently invested in short-term government treasury securities.
On September 23, 2009, Endeavour announced that it has entered into a binding agreement with Etruscan Resources to invest US$43.0 million in Etruscan common shares at a price of C$0.30 per share and purchase a 19.98% Etruscan share and warrant package for approximately US$12.6 million to own an aggregate of 54% of Etruscan's issued and outstanding common shares. This is the first strategic equity investment as part of Endeavour's macro gold-focused investment strategy.
The Corporation's book value was US$247 million (or approximately C$2.94 per issued and outstanding share) at June 30, 2009.
Quarter Ended June 2009 Highlights
- Revenue of US$35.7 million, comprised of US$30.3 million investment
income, US$5.5 million of realized advisory fees and negative
US$0.1 million of mark-to-market losses on advisory fee securities
held. (Quarter ended June 30, 2008: Revenue of US$73.4 million,
comprised of US$55.7 million of investment income, US$15.4 million of
realized advisory fees and US$2.3 million of mark-to-market gains on
advisory security fees held).
- Net income of US$27.7 million, or US$0.29 per share (Quarter ended
June 30, 2008: Net income of US$53.1 million, or US$1.79 per share).
Year Ended June 2009 Highlights
- Negative Revenue of US$188.1 million, comprised of a US$197.5 million
investment loss, US$12.7 million of realized advisory fees and
negative US$3.3 million of mark-to-market losses on advisory fee
securities held (Year ended June 30, 2008: Revenue of US$108.1
million, comprised of US$60.2 million investment income,
US$44.3 million of realized advisory fees and US$3.6 million from
mark-to-market gains on advisory fee securities held).
- Net loss of US$207.5 million, or US$3.71 per share. (Year ended
June 30, 2008: Net income of US$56.5 million or US$1.90 per share).
- On February 4, 2009 the Corporation closed an equity offering,
raising gross proceeds of C$115 million through the issuance of
65 million units
Neil Woodyer, Chief Executive Officer commented "we experienced a
challenging start to the fiscal year and suffered acute investment losses
during Q1 and Q2 associated with the global market turmoil. Our business
has recovered as reflected in our Q3 and Q4 results. With our significant
cash balance and a focused plan, we are positioned to advance our
investment strategy and our advisory business".
During the 2009 fiscal year, Endeavour was an advisor and earned
transaction success fees on a number of resource transactions including:
- Pacific Rubiales Energy Corp. Endeavour helped to arrange a US$200
million financing of a 235km long, oil pipeline in the Republic of
Colombia. The financing was provided by Grupo Aval, a consortium of
Colombian banks led by Banco de Bogota.
- Endeavour structured and arranged a one year, US$50 million bridge
financing for the principal Colombian operating subsidiary of Pacific
Rubiales Energy Corp. The financing was provided by Citibank N.A.
- Endeavour helped Pacific Rubiales Energy Corp. arrange a senior
secured revolving credit facility totaling up to US$250 million. The
facility consists of commitments from each of BNP Paribas, Calyon,
Banco Davivienda S.A., and West L.B. A.G
- Endeavour advised Orsu Metals Corporation's sale of its Varvarinskoye
Gold-Copper Project, Republic of Kazakhstan for consideration
totaling approximately US$235 million.
- Endeavour advised Rusoro Mining on its US$25 million acquisition of
Hecla Mining's, Venezuelan gold assets, including the Isidora Mine
and Twin Shear Project
Subsequent to June 30, 2009, the Corporation completed a transaction with Bisha Mining Share Company, a subsidiary of Nevsun Resources Ltd., by arranging a US$235 million debt package with a lending group comprised of seven institutions from Europe and South Africa to fund the Bisha Gold Project, located in Eritrea. Advisory fees for this transaction will be reflected in the financial statements for the quarter ending September 30, 2009.
About Endeavour Financial Corporation
Endeavour is an independent merchant banking company focused on the global natural resources sector. The Corporation offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also provides equity and bridge loans in support of clients, transactions, and other market opportunities. Accessing its global industry networks, Endeavour creates and launches new growth companies as both an advisor and investor.
Endeavour Financial Corporation is listed on the Toronto Stock Exchange, symbol EDV. Listed warrants trade on the Toronto Stock Exchange, symbol EDV.WT.A.
For additional information, please visit our corporate website at www.endeavourfinancial.com. In order to access the Corporation's financial statements directly, please click the following URL: http://files.newswire.ca/509/Endeavour-YearEnd09.pdf
On behalf of Endeavour Financial Corporation
Chief Executive Officer
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking statements relating to the future performance of Endeavour Financial Corporation. Forward- looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation's filings with the appropriate securities commissions.