EDV.to ; nice press release tonight.
*Discount down to 34.4% from 37.9% last month and 44% in July 05.
*If gold continues to rally, EDV will be under 20% discount by Feb 05 given seasonality over past 3 years.
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Endeavour Mining Capital announces 2005 year-end results
Monday October 17, 7:02 pm ET
Earnings of US$24.9 million, Return on Equity of 34%
GEORGE TOWN, Grand Cayman, Oct. 17 /CNW/ - Endeavour Mining Capital Corp. ("Endeavour" or "Corporation") recorded net income of US$24.9 million or US$1.08 per share (or approximately CDN$1.28 per share) for the year ended August 31, 2005. This compares with net income of US$14.7 million or US$0.68 per share (or approximately CDN$0.89 per share) recorded for the year ended August 31, 2004.
The Corporation's performance during fiscal 2005 continued to build on our previous three years results and further demonstrates our ability to generate strong earnings and growth. During fiscal 2005, total investment income was US$31.3 million which compares to US$19.1 million during fiscal 2004. The Corporation's merchant banking business strategy remains highly profitable and generated a return on equity of 34% for the year, which compares to a 26% return during fiscal 2004, with our 2005 return being generated from a significantly larger net asset base relative to 2004.
As of August 31, 2005, the Corporation's investment capital base was US$97.1 million or US$4.19 per share (or approximately CDN$4.99 per share) which compares to US$73.5 million or US$3.18 per share (or approximately CDN$4.17 per share) as of August 31, 2004. As of September 30, 2005, the Corporation's net asset value was US$4.80 per share (or approximately CDN$5.58 per share).
Within its merchant banking portfolio, the Corporation has established a sub-set regarded as early stage opportunities. These early stage opportunities are generally defined as investments made during the formative stages of a new business, as it is developing its business plan and building its asset base. These are differentiated from other merchant banking transactions, which generally involve investments into cash flowing or near-cash flowing companies. During fiscal 2005, the Corporation generated investment income from approximately 10 early stage opportunities and these investments generated approximately 35% of total investment income. The merchant banking transactions (excluding the early stage opportunities) consisted of approximately 12 core positions which generated approximately 53% of total investment income. Collectively, merchant banking activities generated approximately 88% of total investment income.
