GEORGE TOWN, Grand Cayman, Nov. 10 /CNW/ -- Endeavour Financial Corporation ("Endeavour" or the "Corporation") today reported net income of US$41.5 million or US$0.43 per share for the quarter ended September 30, 2009.
Revenue for the quarter of US$47.0 million includes US$41.6 million investment income and US$5.4 million of advisory fees, including US$0.7 million of mark-to-market gains on advisory fee securities held.
At September 30, 2009 the Corporation had cash and cash equivalents of US$132.7 million and investments of US$101.4 million. The Corporation's book value was US$290 million (or approximately CDN$3.17 per issued and outstanding share).
The Corporation's capital base is deployed in a series of merchant banking transactions; as a result, the capital base is principally deployed in companies in which the Corporation is actively involved in guiding corporate development or providing a transaction-based service.
At September 30, 2009, approximately 92% of the Corporation's US$101.4 million investments by value were held in these strategic, merchant banking positions. Approximately 35% of the investment portfolio is invested in the gold sector and 30% in the oil & gas sector.
The Corporation's cash is currently invested in short-term government treasury securities. It is anticipated that this cash will be deployed into gold-sector investments in the near term. The investment in Etruscan Resources Inc. (see News Release, October 23, 2009) was the first such strategic gold-sector investment. Subsequent to the investment in Etruscan, approximately 67% of the investment portfolio is now invested in the gold-sector.
Neil Woodyer, Chief Executive Officer commented "we are extremely pleased to announce robust financial results for the first quarter. We continue to maximize returns on our strategic investments and we continue to actively generate and secure new advisory mandates. Subsequent to the quarter end we are delighted to have closed our investment in Etruscan Resources Inc. which is the first strategic gold investment in our new gold-focused investment strategy".
During the quarter ended September 30, 2009, Endeavour was an advisor and
earned transaction success fees on several advisory transactions, including:
- Arranged a US$235 million debt package for Bisha Mining Share
Company, a subsidiary of Nevsun Resources, to fund the Bisha Gold
Project, Eritrea. The lending group was comprised of seven
institutions from Europe and South Africa.
- Arranged additional commitments totaling US$25 million for Pacific
Rubiales Energy Corp. as part of the previously arranged US$250
million, senior secured revolving credit facility. During 2009,
Endeavour advised Pacific Rubiales on a total of US$500 million in
- Provided a US$9.5 million bridge loan to Petroamerica Oil Corp.
(formerly Cantrell Capital Corp.) to acquire certain oil and gas
interests in Colombia.
Subsequent to the quarter ended September 30, 2009:
- Corporation completed its strategic investment in Etruscan Resources
Inc. on October 23, 2009. Endeavour invested approximately US$56
million, resulting in the Corporation holding 179,438,789 common
shares, representing 54% of the issued and outstanding shares of
Etruscan Resources Inc. The investment has facilitated Etruscan's
senior debt restructuring, reduced its hedge position and provided
much needed working capital. The current market value of Endeavour's
investment is approximately US$90 million. This investment is the
first of a series of strategic investments Endeavour intends to make
in the junior gold sector as part of its gold-focused investment
- Endeavour's subsidiary, Endeavour Financial International Corporation
was appointed Project Finance advisor to Augusta Resource Corporation
with respect to financing the Rosemont copper project in Arizona.
- Corporation finalized the sale of Orsu Metal's Varvarinskoye gold-
copper mine, Kazakhstan to OJSC Polymetal.
- Endeavour earned advisory fees on Petroamerica Oil Corp. private
Change to Board of Directors
Following the Corporation's Annual General Meeting held in Monaco today, Patrick J. Mars' three year term of office expired and Mr. Mars did not stand for re-election to the board. Michael E. Beckett, Chairman of the Board of Directors said, "On behalf of the Board of Directors, I would like to sincerely thank Patrick for his valuable contribution as a director to the Corporation".
Conference Call Details
Management's discussion of the financial results for the quarter ending September 30, 2009 will be webcast by V-Call on Thursday, November 12, 2009 at 11:00am Eastern Standard Time and can be accessed from the Corporation's website at www.endeavourfinancial.com by calling the operator at 201-689-8049 or toll free 1-877-407-9210 prior to the scheduled start time. The call will be archived for later playback on Endeavour's website until November 12, 2010.
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 has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies.
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/EndeavourQ1.pdf
On behalf of Endeavour Financial Corporation
Executive Vice President and Chief Financial Officer
+ 377 97 98 7130
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.