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EDV Endeavour Mining Plc

-7.00 (-0.39%)
Last Updated: 12:57:05
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Endeavour Mining Plc LSE:EDV London Ordinary Share GB00BL6K5J42 ORD USD0.01
  Price Change % Change Share Price Shares Traded Last Trade
  -7.00 -0.39% 1,809.00 26,284 12:57:05
Bid Price Offer Price High Price Low Price Open Price
1,808.00 1,810.00 1,816.00 1,793.00 1,805.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gold Ores USD 2.51B USD -57.3M USD -0.2324 -132.57 7.6B
Last Trade Time Trade Type Trade Size Trade Price Currency
12:57:05 AT 96 1,809.00 GBX

Endeavour Mining (EDV) Latest News (3)

Endeavour Mining (EDV) Discussions and Chat

Endeavour Mining Forums and Chat

Date Time Title Posts
21/11/202310:41Endeavor : New Mining Investment Bank181

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Endeavour Mining (EDV) Most Recent Trades

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Endeavour Mining (EDV) Top Chat Posts

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Posted at 07/12/2023 08:20 by Endeavour Mining Daily Update
Endeavour Mining Plc is listed in the Gold Ores sector of the London Stock Exchange with ticker EDV. The last closing price for Endeavour Mining was 1,816p.
Endeavour Mining currently has 246,600,000 shares in issue. The market capitalisation of Endeavour Mining is £7,597,746,000.
Endeavour Mining has a price to earnings ratio (PE ratio) of -132.57.
This morning EDV shares opened at 1,805p
Posted at 21/11/2023 10:41 by redbaron10
Can anyone here give an accurate market capitalisation for EDV.The lse share price charts give a valuation of 1.38bn.....HL give a market cap of 4.19bn and ADVFN says over 7bn! I'm well confused...not difficult I know....
Posted at 28/6/2022 09:35 by aim_trader
EDV will be presenting at the Proactive One2One Investor Forum on Wednesday 29th June from 6pm UK time. You can register on the Proactive website.
Posted at 19/5/2022 10:24 by ram376s
Pop up EDV . 300 nurses to train for GDR new game changer test .News anticipated . Possible multibagger .
Posted at 25/6/2021 07:29 by tomps2
Mark Bentley ‘slams’ Endeavour Mining (EDV) in the latest PIWORLD/Stockopedia StockSlam at 33m56s

Watch the video here:

Or listen to the podcast here:
Posted at 23/8/2011 06:31 by energyi

August 21, 2011
GEORGE TOWN, Grand Cayman and PERTH, Western Australia, - Endeavour Mining Corporation ("Endeavour") (TSX:EDV) and Adamus Resources Limited ("Adamus") (ASX:ADU, TSX-V: ADU, FSE: AXM) are pleased to announce they have entered into a definitive Merger Implementation Agreement ("MIA") to combine through an all-stock merger of equals transaction creating a new growth focused West African gold producer (the "Merged Entity"). Endeavour intends to invest at least US$160 million from its current cash balance to relieve the constraints of Adamus' Nzema project finance structure, including repayment of the US$60 million project loan and at least US$100 million towards reduction of hedged gold volumes. The Merged Entity is forecasting 2011 gold production of 172,000 ounces from two mines (Youga Gold Mine in Burkina Faso and Nzema Gold Mine in Ghana) at a cash cost per ounce of US$575- $625(1). The gold production rate is expected to be approximately 250,000 ounces per year by the end of 2013 from existing assets (including Agbaou). In addition, the Merged Entity has an acquisition growth strategy to more than double this gold production rate by the end of 2013(2).

The merger will be implemented as a Scheme of Arrangement under the Australian Corporations Act ("Scheme"). Adamus shareholders will receive 0.285 of an Endeavour share for each Adamus share they hold. This exchange ratio has been determined using the ratio of Endeavour's and Adamus' volume weighted average trading prices over the 20 trading days ended on August 19, 2011 on the TSX and ASX, respectively. Upon completion of the Scheme, existing Endeavour shareholders and Adamus shareholders will own approximately 47.2% and 52.8%, respectively, of the issued common shares of the Merged Entity. On a fully-diluted basis, which assumes all existing Endeavour and Adamus options, warrants and share rights are exercised, the existing Endeavour securityholders and Adamus securityholders would own approximately 55% and 45%, respectively, of the issued shares of the Merged Entity.

(1) Excludes royalties, refining, freight and non-cash adjustments
(2) There are no acquisitions currently being negotiated

Highlights of the Merger:

-- Creates a leading West African gold production, development and
exploration company as a platform for future growth and

-- Combines experienced management teams and board of directors.

-- Strong cash generation from two operating gold mines with pro
forma 2011 gold production of 172,000 ounces (Youga Gold Mine,
in Burkina Faso and Nzema Gold Mine, in Ghana) - de-risking the
standalone companies.

-- With a construction decision to be made in Q1 2012 for the
Agbaou feasibility stage project in Côte d'Ivoire, the
production growth profile is expected to be approximately
250,000 ounces per year by the end of 2013 from existing

-- Adamus' proven mine building track record, having successfully
commissioned the Nzema Gold Mine, will enhance the construction
of the Agbaou feasibility stage project in Côte d'Ivoire.
-- Extensive exploration portfolio in highly prospective regions
of Ghana, Burkina Faso, Côte d'Ivoire, Liberia and Mali with a
land package totaling over 10,400km(2).
-- Pro forma financial strength totalling US$516 million from
Endeavour's US$195 million cash and marketable securities,
Adamus' US$21 million cash, a new, undrawn, credit-approved
US$200 million revolving corporate loan facility provided by
Unicredit Bank AG (subject to completion of the Scheme,
execution of final facility agreements and satisfaction of the
facility's conditions) and approximately US$100 million from
any future exercise of all Endeavour options and warrants with
an exercise price of CDN$2.50 or less.

-- Financial strength will relieve constraints from Adamus' Nzema
project finance structure and support the Merged Entity's
growth objectives. Post-closing, the Merged Entity intends to
fully repay the Nzema US$60 million project debt and intends to
invest at least US$100 million to significantly reduce gold
hedging volumes. This will result in greater leverage to the
gold price, increased operating cashflow and EBITDA, and
increased management flexibility.

Management & Governance
On completion of the Scheme, Neil Woodyer from Endeavour will be Chief Executive Officer and Mark Connelly from Adamus will be Chief Operating Officer, of the Merged Entity. The Merged Entity's operational management will be led from Perth, Australia and will report to the Chief Operating Officer.
Posted at 31/12/2009 14:16 by energyi
11/10/2009 1:31 PM - Canada NewsWire

GEORGE TOWN, Grand Cayman, Nov. 10, 2009 (Canada NewsWire via COMTEX News Network) --
Toronto Stock Exchange: EDV

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".
Posted at 12/2/2007 10:15 by mikkydhu
I don't know what interest in UUU is still retained by EDV, but the takeover of UUU announced today should do no harm to EDV's share price.
Posted at 24/6/2006 21:05 by mikkydhu
As has been pointed out on the EDV Stockhouse BB, Endeavour have put into practice, in exemplary fashion, the simple principle "Buy low, sell high". In March and April, as commodity and pm stocks were going parabolic, Endeavour were selling. So they built up a war chest, some of which they have now probably reinvested so that they will be able once again to repeat the performance.
Posted at 19/10/2005 06:36 by energyi
12 CORE POSITIONS- what are they??

"The merchant banking transactions (excluding the early stage opportunities) consisted of approximately 12 core positions which generated approximately 53% of total investment income"

- -

Here's a link to a write-up on EDV, I suggest you read it:

Basically EDV is a cheap way to go long on metals and mining since the stock is selling at about a 30% discount from its Net Asset Value, or the value of the investments it holds in its portfolio. The discount to NAV might partly be explained by the hefty fees paid to EDV's investment advisors (or portfolio managers if you will) Endeavour Financial. In 2004, the fee was $3M on assets of $75M and in 2003 the fee was $4M on assets of $45M. The fee is two-tiered: 1) an investment advisory fee, calculated as 2% on the first $50 million of net assets, 1.5% on the next $50 million of net assets, and 1% on net assets in excess of $100 million, payable as to 1/12th monthly. 2) The investment advisor also receives an annualized performance fee of 20% of the Corporation¡¦s net income from operations in excess of a 15% return on the weighted average Shareholders¡¦ Equity during the fiscal period. Notice that this fee structure is a lot like a hedge fund, although this alone is no guarentee that the advisory services add any value to EDV, it is nevertheless an indicator that EDV believes that this is the case. Indeed two distinguishing traits of Endeavour Financial compared to your typical mutual fund managers are 1) They invest a lot in private opportunities, hence acting a lot more like a VC firm, with an intimate (EDV sits on the board of 40% of its invetsments) and specific knowledge of the junior mining industry and 2) an active investment approach with a high turnover of assets (in 2004 EDV sold $44M worth of its portfolio and invested $55M worth in new opportunities).

Ok now that I've set the context EDV sits in, let me explain why I believe there might be a short-term opportunity here with a potential upside of 10-15% to be earned in just a few days (I've been long this stock for a while but intend to doubel my position this week - you can play it however you want, short term trade or long term)

The company publishes its Net Asset Value (NAV) on its website every month (7-14 days from end of month) and I believe that EDV will report an increase in NAV in the range of 20-25% for February, something that EDV's stock has failed to discount (at least entierly) since its stock is up only 10% since the beginning of the month. Furthermore considering EDV's high volatility I believe a small position could be established at 3.45 -3.50$ (5% below current levels) within the week.

How exactly do I know that? Well as might be expected, EDV's share price will be strongly correlated to the performance of its investments; furthermore the market's expectations as to its "present" and future performance will stick closely to that of the sector of investments it is weighted in. Originally EDV was strongly invested in Gold and other precious metals, and EDV's performance in 2003 mirrored closely that of the Phily Gold and Silver Index ^XAU

To this day EDV is strongly weighted in Gold and Precious Metals stock (in their 2004 annual report they again provide the XAU index as a backdrop for analysis), however in 2004 EDV has likely diversified its holdings to include more base/industrial metals and mining stocks, as evidenced by their annual reports for the last 2 years (I included excerpts at the end of the write up). Furthermore I do not believe that the ^XAU index ever was an appropriate framework for EDV since the latter has a strong focus on junior mining companies, which are inherently more risky and hence offer better returns on a sector bull market than their XAU counterparts. I believe that a better framework is the S&P/TSX CANADIAN MINING INDEX, ^GSPTTMN, although EDV's portfolio is only 20% weighted in North American stocks, I believe that the smaller and more diversified nature of ^GSPTTMN's components more closely reflects EDV's current portfolio. This is evidenced by the close correlation of EDV to that index in the past 2 years:

In February the ^GSPTTMN index has rallied 25% (mainly because of a broad rally in industrial metals while the gold index has only rallied 8%, mirroring EDV's roughly 10% appreciation sicne February)

To be more specific I've extracted EDV's Core Merchant Banking Positions from their 2004 annual and included a $2,5M position in AV.V announced in January:Here is the Performance for the month of February

February January December 12Months Jan03-04:

BGO.TO: 5% 0% (13%) 68%

BGC.TO: 50% (13%) (10%) 150%

CMM.V: 15% (13%) (4%) 10%

NNO.TO 8% 14% 1% 27%

SLW.TO 25% (8%) (1%)

WRM.TO 4% 6% 0% 20%

AV.V: 25%

Average Return 19% (2.5%) (4.5%) 50%

EDV NAV: ? (0.005%) (2.5%) 0%

^GSPTTMN 24% 1% 2% 25%

I do not know to what extent these positions are representative of EDV's portfolio because the weights of these investmenst arent provided. However I note that 4 of the 6 were also mentionned as core merchant banking positions in 2003 (hence 2 positions were initiated sometime in 2004, these are CMM.V and SLW.TO ), 75% of the 2003 portfolio was turned over in 2004 and two major positions were shed at some point during the year GGG.TO (down 40%) and OXS.L (down 20%).You can draw your own conclusions from the relative performance of the portfolio to that of EDV's NAV. However I believe that the portfolio as it was announced in the annual report which came out last month could be very relavant as it is up to date and could make up 50-60% of the publicly traded securities which are used in the NAV calculation

I intend to buy 2000 more shares at 3.45 in the next 7 days hence doubling up my position. Also the chairman purchased 20,000 shares in the open market at 3.40$ on February 11th, he had no holdings previously.

Posted at 18/5/2004 16:06 by wobblechops
Exceptional Growth, Sector Volatility
Endeavour Mining Capital (EDV-TSX)
Weekly chart, Semi-log scale, High C$4.88, Low C$1.53, Last Trade C$2.53 (May 7 close)


Ø Managed by some of the industry's most powerful & experienced mining professionals

Ø Operates as a highly entrepreneurial merchant banker

Ø Extensive network of contacts and vast industry experience generates prime deal flow

Ø Creates synergistic opportunities by pulling together companies, projects and people

Ø Originates and invests in formative stage deals, prior to retail access/knowledge

Ø Under-estimated by analysts as a mutual fund of small and mid-sized gold companies

Ø Shareholders gain the advantage of investing side-by-side at the ground-floor level

Ø Share price offers excellent near term value and exceptional growth potential over time

Ø Rising resource-price environment offers tremendous bonus upside to shareholders

Ø Technical analysis suggests price becoming oversold, with likely nearby strong support


Please see important disclaimers at the end of this report.

Technicals (Also see Technical Analysis in the Supplementary section at the end of this report on some basics of "TA" use).

The weekly chart shown on page one highlights the dramatic falling-over-the-cliff sell-off occurring as the price of gold re-tests the US$378 support area and junior-sector resource stocks get trounced amidst lower liquidity, sporadic panic selling and apparent capitulation by late-comer investors suffering rapid and severe losses.

While never prudent to attempt catching a "falling knife", the backdrop of what we see as a correction within a long term gold "bull market" offers a compelling, timely opportunity to accumulate particularly well-positioned, solid-value deals.

The green On-Balance-Volume (OBV) indicator in the upper chart window supports the fact that there is no "distribution" of any size taking place - only some general low-volume selling. MACD is currently bearish, and has been for the last 11 weeks since it crossed its signal line. Relative Strength (RSI) is now at the 14-week value of 30, an extreme only seen twice before, coinciding with market lows and past buying opportunities.


Daily chart, Semi-log scale, High C$4.83, Low C$0.35, Last Trade C$2.53 (May 7 close)

The daily chart above shows the current value of the RSI is 19.00. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought /oversold area. The MACD crossed below its signal line 18 days ago and remains bearish, but is in an oversold range. Wait for prices to move higher before considering any long positions. There have been no divergence signals within the last 5 days. On 5/7/2004, Endeavour closed below the lower band by 2.6%. This combined with the steep downtrend suggests that the downward trend in prices has a good chance of continuing. However, a short-term pull-back inside the bands is likely. Making the picture somewhat unclear is the fact that Bollinger Bands are 101% wider than normal. The large width of the bands suggest high volatility as compared to Endeavour's normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term.


Endeavour Mining Capital Corporation (EDV-TSX): Endeavour Mining Capital Corp. is a publicly traded mining merchant banking company. The Corporation, established in the Cayman Islands, provides finance to mining companies to fund their project development, strategic initiatives and growth. An international team of experienced professionals with a demonstrated performance history manages the Corporation. Endeavour Financial, a leading investment banking firm focused on the global mining industry, acts as the Investment Advisor. The management team at Endeavour Mining Capital uses their experience, market intelligence and proprietary deal flow to originate and invest in a series of potentially high-return transactions.

As of February 29, 2004, Endeavour had an investment capital base of US$$88.3 million. Their capital is invested in a series of transactions, such as private placements, convertible debentures, bridge loans and other forms of mine finance. The Corporation seeks to generate superior earnings through interest earned, fees charged and capital appreciation.

Currently, the Corporation is highly leveraged to Gold with additional investments in other minerals including Diamonds, PGM's and Base Metals. The scope of investment is limited only to management's area of specialist expertise - mining. Oil & Gas and other strategic opportunities may figure more prominently going forward as the necessary talent and connections are attracted to the Endeavour Group's critical mass and growing reputation.

Second quarter highlights

• Net loss of $2.4 million or $0.10 per share for the quarter

• Net income of $24.5 million or $1.21 per share for the six month period

• First regular semi-annual cash dividend of CDN$0.035 paid

Corporate data (as of January 12, 2004)

Exchange Listing: The Toronto Stock Exchange Symbol: EDV

CUSIP: G3040R109

Issued Shares: 23,120,578

Fully-Diluted Shares: 27,683,078

Investment Objectives of Endeavour

Endeavour's primary investment objective is to achieve superior earnings by investing in transactions having potentially high returns in the mining sector. Endeavour's investments are carried out according to an opportunistic and disciplined process that has been developed to maximize returns while minimizing risk, taking advantage of investment opportunities identified from the industry contacts of its Board of Directors and the Investment Advisor. To achieve these objectives and to limit overall portfolio risk, Endeavour employs, when appropriate, the following strategies:

• Investments are focused on the mining and mining related industries. Endeavour invests in early stage exploration and development companies, as well as intermediate and senior companies.

• Endeavour obtains in-depth knowledge of the target company and a working relationship with existing and/or proposed management.

• Transactions generally take the form of equity or debt with equity rights attached. Endeavour may employ a wide range of investment instruments, including equity, bridge loans, secured loans, unsecured loans, convertible debentures, warrants and options, royalties, net profit interests and other hybrid instruments.

• Investment can be made in both public and private companies.

• Endeavour seeks to obtain a 30% or better internal rate of return on transactions, based on reasonable projections.

• Endeavour seeks to maintain limits of 20% of the investment capital base (at the time of the investment) in any one transaction.

• Endeavour seeks investments where it has the ability to monitor the investment until it is realized.

• Endeavour seeks multiple exit strategies for optimal realization of value of structured transactions.

• Endeavour is prepared to take short positions in securities that trade on recognized securities exchanges or quotation services, provided that the short sales meet minimum regulatory margin requirements.

• Endeavour will generally not acquire greater than 10% of the issued and outstanding shares in any one company

From time to time, the Board of Directors of Endeavour may authorize any particular investment or series of investments which may not comply with these strategies. While management does not view Endeavour's business as cyclical, the value of its assets in the mining sector may fluctuate with the market for securities in that sector and the demand for precious and base metals.

Recent Results

March 26, 2004 - Endeavour announced a net loss of US$2.4 million or US$0.11 per share (or approximately CDN$0.15 per share) for the second quarter ended February 29, 2004. This compares with net income of US$7.9 million or US$0.51 per share (or approximately CDN$0.76 per share) reported for the quarter ended February 28, 2003. As of February 29, 2004, the net asset value per share was US$3.63 (or approximately CDN$4.85). The Corporation realized gains on investments of US$2.9 million during the second-quarter, however, these gains were offset by unrealized losses on investments held of US$5.6 million.

The Corporation remains highly leveraged to its core merchant banking positions and management accounts indicate that during March 2004 the Corporation generated investment gains of approximately US$6 million to bring the net asset value per share to approximately CDN$5.05, as of the market close on March 26, 2004.

For the six-month period ended February 29, 2004, the Corporation recorded net income of US$24.5 million or US$1.21 per share (or approximately CDN$1.61 per share). This compares with net income of US$3.8 million or US$0.25 per share (or approximately CDN$0.37) reported for the six-month period ended February 28, 2003.

March 19, 2004 - Endeavour announces that it has obtained the Toronto Stock Exchange approval for the listing of 3,625,000 share purchase warrants of the Corporation issued in a private placement which closed on November 10, 2003. The warrants commenced trading on the Toronto Stock Exchange under the symbol EDV.WT on Tuesday, March 23, 2004. Each whole warrant entitles the holder, upon exercise, to purchase one share of the Corporation at an exercise price of CDN$5.50. The warrants expire at 5:00 p.m. (Toronto time) on November 10, 2008.

Liquidity and Capital Resources

At February 29, 2004 the Corporation held assets totaling $88.3 million comprised mainly of investments (89%) and cash and cash equivalents (10%) compared to assets held at August 31, 2003 of $46.5 million comprised mainly of investments (87%) and cash and cash equivalents (13%).

The liabilities of the Corporation totalled $4.3 million as of February 29, 2004 of which $4.1 million was the performance fee accrual, $0.1 million was payable to the investment advisor, and $0.1 million was for other accrued expenses.

The increase of $42.3 million in Shareholders' Equity in the Corporation to $84.0 million at February 29, 2004 from $41.7 million as at August 31, 2003 is attributable to operations that generated $24.5 million of net income or 58% of the increase, and net financing activities that generated $17.8 million in Shareholders' Equity or 42% of the increase.

During the six month period ended February 29, 2004 the Corporation received net proceeds of CDN$23.5 million ($18.1 million) from a private placement of 7.25 million units at CDN$3.45 per unit. Each unit consisted of one common share and one-half of a common share purchase warrant. Each whole common share purchase warrant entitles its holder to acquire one common share of Endeavour at a price of CDN$5.50 per common share on or before November 10, 2008.

On February 27, 2004, the Corporation paid its first regular semi-annual cash dividend of CDN$0.035 per share.


The Corporation will continue with its strategy of originating and investing in potentially high-return merchant banking and investment transactions focused on the resource industry. As shown by the Corporation's fiscal 2002, fiscal 2003 and six-months to February 29, 2004 financial performance, Endeavour has produced strong results. While earnings volatility should be anticipated, management believes that the long-term upwards trends in the metal and commodity markets remain favorable and that its superior deal flow and access to potentially high return transactions will result in the continued growth of the Corporation's investment capital base.

Endeavour's Investments


The Continuing Bull Market in Gold

Fundamentally, core positions in gold shares, from the seniors to exploration companies, should be maintained. Considerable amounts of money have been raised for exploration, and the management and geological skills of many companies are outstanding. This will result in some discoveries which, even in a dull gold market, can result in a market play. Even in the 20-year bear market in gold, we have seen many discoveries and many exciting times in the gold markets. Of course if the gold markets turn out to be dull, we will have a much harder time making the kind of money we made in the past couple of years. These last few weeks have been the toughest in quite some time for gold bulls. When we take a good look at the longer-term picture, what this decline seems to be suggesting is that we are in a serious correction, but the long-term bull market for gold likely remains very much in place.

Gold tumbled on Friday due to the sharp advance in the dollar, dropping to its lowest close in 6 months. The effect of this drop and the sharp fall in the general stock market combined to cause a steep decline in precious metal stocks. Both gold and the US$, which have an inverse relationship with each other, are at a critical juncture.

The 3-year gold chart shows we are on an important support level and very close to the lower boundary of the long-term uptrend in force since the start of the bull market. In addition, although now below the 200-day moving average, this indicator is still rising steadily and the RSI and MACD lines are showing an oversold condition.

Although normally an opportune time to buy, there are a couple of factors that give grounds for caution. The first is the "double top" formed by gold when it made twin peaks in January and April. Such a formation is frequently indicative of an intermediate trend change. The second cause for concern is the $US, which is very close to breaking out of its long-term down trend.


The $US's long-term downtrend is obvious on the 3-year dollar index chart, where we can see that the 91 – 93 area is a critically important resistance zone. The long-term downtrend line is currently at about 91. A move above about 93 signals a breakout from the downtrend, and also indicates that resistance from past trading at around this level is being overcome. Also, there would be a significant break above the 200-day moving average, now also at about 91. What are the chances of the $US breaking out upside? We need to look at the 6-month chart for the dollar (next page).

A few days ago the $US rolled over and looked like it was turning back by the strong combination of the falling 200-day moving average, long-term trendline resistance and resistance from past trading, which may yet happen. However Friday's rise was substantial and puts it in position to break higher. It is noteworthy that it coincided with a bond and REIT cave-in.

There are both technical and fundamental considerations lending support to a $US break higher at this juncture. Technically, we have had a 5-wave sequence down in the $US since its bear market started, which means that even if the $US bear market continues, we could have a significant 3-wave countertrend rally.

Fundamentally, an argument supporting a rising $US at this time is a potential scramble for dollars by debtors across the board seeking to pay down debts and de-leverage ahead of the impending interest rate rises. Even if the rate rises are not that great, the enormity of the debts and the magnitude of the carry trade in bonds and the extent of leveraging virtually guarantee a crisis – hence the risk of a $US spike, however unsustainable.


There is considerable risk to precious metals prices if the $US succeeds in breaking out of its downtrend. The impact on precious metals stocks could be amplified by a plunge in the broad markets.

So, although we would appear to be at a "buy spot" now in precious metals and the stocks, there is also very considerable danger and caution is the watchword. We will want to see the $US back off below about 88.50 before it will look safe to move back in. That would mean missing by a goodly percentage the lows that are likely for various opportunities, like Endeavour, Northern Orion, Entrée Gold, Knight, Grandcru and others we follow. Tight stop-losses could be used in the liquid traders under these technical support levels to protect against wrong-headed positions.

China's Growing Demands

China is now the number-one consumer in the world of copper, platinum, zinc, steel and iron. They produce more steel than Japan and the United States combined. There are now more cell phone users in China than in the U.S. Almost every Chinese organization owns businesses and deploys investment capital. Capitalism is at the forefront of their daily focus – almost an obsession. The Chinese are also not shy of taking risks and speculating in commodities and the stock market.

The U.S. and Europe consume about 1/3 of an ounce of gold per capita annually, mostly for jewelry. When China catches up on a per capita basis that demand alone would be equal to 5 times the global mine production of gold annually. Even a 5 or 10% demand increase over annual mine supply is huge in terms of the relatively small gold market, and this will be 50 times that. And that is just jewelry demand. Because the Chinese currency was destroyed back in the late 40's this generation knows the value of gold as a currency and store of wealth. Self-sufficiency and a healthy innate mistrust of government financial policies would also serve well the complacent North American investor.

The investment demand from China alone will change the gold supply/demand equation for decades to come. Every year mining companies have to replace about 85 million ozs of production from reserves or risk mining themselves out of existence. That's the equivalent of finding 12 seven million-oz deposits every year. There's maybe been one such discovery over the last 2 years, so from a longer-term supply viewpoint a severe squeeze is developing.


Growth Stocks Weekly is an independent electronic publication committed to providing our subscribers with factual information on selected publicly traded companies, business, and economics. All companies are chosen on the basis of certain financial analysis, and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible with the added aid of technical analysis.

Growth Stocks Weekly and its editors do not accept compensation from public companies featured in this publication.

All statements and expressions are the sole opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

The staff of Growth Stocks Weekly are not registered investment advisors and do not purport to offer personalized investment related advice. The publisher, staff, or anyone associated with, or associated to, the Growth Stocks Weekly may own securities mentioned in this newsletter and may buy or sell securities without notice.

The profiles, critiques, and other editorial content of the Growth Stocks Weekly may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein. The reader should verify all claims and do their own due diligence before investing in any securities mentioned. Investing in securities is speculative and carries a high degree of risk. The information found in this profile is protected by copyright laws and may not be copied, or reproduced in any way without the expressed, written consent of the editors of Growth Stocks Weekly.

We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at and/or the National Association of Securities Dealers ("NASD") at We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at

Readers can review all public filings by companies at the SEC's EDGAR page in the U.S. and SEDAR's electronic filing of securities information as required by the securities regulatory agencies in Canada at The NASD has published information on how to invest carefully at its web site.
Endeavour Mining share price data is direct from the London Stock Exchange

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