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MarketScreener Homepage  >  Equities  >  Toronto Stock Exchange  >  Endeavour Mining Corporation    EDV   KYG3040R1589

ENDEAVOUR MINING CORPORATION

(EDV)
  Report
Delayed Quote. Delayed Toronto Stock Exchange - 01/22 04:00:00 pm
26.52 CAD   -2.54%
01/22ENDEAVOUR MINING : Sells Non-Core Agbaou Mine for Up to $80 Million
MT
01/22ENDEAVOUR BRIEF : Announces Sale of its Non-Core Agbaou Mine
MT
01/22Endeavour Announces the Sale of its Non-Core Agbaou Mine
GL
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Gold investors target 'excessive' executive payouts amid deals

01/12/2021 | 06:33am EST
FILE PHOTO: People look on during the Kinross Gold Corporation annual general meeting for shareholders in Toronto

TORONTO/JOHANNESBURG (Reuters) - Gold investors critical of lavish executive payouts plan to vote down compensation at upcoming annual shareholder meetings, as soaring prices for the precious metal spur dealmaking.

It is the latest knock against an industry that had only recently won back investor favor after being shunned due to disappointing returns.

Miners who overspent on acquisitions in the 2011 gold boom have curbed premiums that led to billions in impairments when prices later crashed.

But investors say change-of-control provisions allowing for multi-million dollar executive windfalls remain commonplace.

"It's excessive and it's something that we don't like to see as shareholders," said portfolio manager Joe Foster at Van Eck Associates Corp, which holds shares in Barrick Gold Corp, Newmont Corp and other gold miners.

"These CEOs, they all have nice pay packages as it is," he said, adding that he plans to use "say on pay" proxy votes, and meetings with management, to express his view.

Teranga Gold Corp executives collectively will receive $10 million in severance pay plus $20.9 million for accelerated vesting of options after agreeing to a $2 billion takeover by Canada's Endeavour Mining Corp.

The payout is "egregious" given Teranga's relatively small market cap, said portfolio manager Coille van Alphen at precious metals-focused fund manager Equinox Partners, which owns Endeavour shares.

Liquidating stock options shows executives are not invested in the company's long-term future, she added.

"The whole point of a no-premium deal is they create value in the new company," she said. "But if you really believe that, wouldn't you want the upside? Why would you take the cash?"

Teranga said the change of control severance payment - two times annual salary and bonus - aligns with the industry standard.

"Each of the executive officers have been with the company for the better part of the last decade, and the experience of the senior group has played a significant part in our success," Teranga President and CEO Richard Young said in a statement.

Equinox is a member of the Shareholders' Gold Council, launched in 2018 by U.S. hedge fund Paulson & Co. to address high executive pay, cozy board appointments and value-destroying deals.

Endeavour Mining's own change-of-control rules provide for each of its five executives to receive two years' worth of salary and bonus upon termination. Van Eck's Foster said he has previously voted against Endeavour's executive compensation, saying it is "above average".

An Endeavour spokesman said: "The Endeavour Board continually reviews its remuneration policy and takes external advice to ensure that it is appropriate to the size and complexity of the business, while being aligned with shareholder interests. We are in regular dialogue with investors who have consistently approved the policy."

At Kinross Gold Corp, CEO Paul Rollinson and executive vice-president Geoffrey Gold are each entitled to three times their annual salary and bonus, as well as accelerated vesting of equity, if the company is acquired, filings show.

Executives at Canadian miner TMAC Resources Inc will get around C$5.9 million - about 2% of the miner's market capitalisation - if a takeover by Agnico Eagle Mines Ltd goes through.

That is despite a rough ride for long-term shareholders: TMAC listed at C$5.75 per share in July 2015, and will be bought by Agnico for C$2.20 per share.

TMAC CEO Jason Neal declined comment.

(Reporting by Jeff Lewis and Helen Reid; editing by Marguerita Choy)

By Jeff Lewis and Helen Reid


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AGNICO EAGLE MINES LIMITED -0.28% 70.69 Delayed Quote.0.26%
BARRICK GOLD CORPORATION -0.23% 29.85 Delayed Quote.3.17%
ENDEAVOUR MINING CORPORATION -2.54% 26.52 Delayed Quote.-10.47%
GOLD -0.79% 1854.8 Delayed Quote.-1.49%
KINROSS GOLD CORPORATION -0.89% 8.94 Delayed Quote.-3.43%
SILVER -1.74% 25.4685 Delayed Quote.-1.58%
TERANGA GOLD CORPORATION -2.05% 12.42 Delayed Quote.-9.08%
TMAC RESOURCES INC. 0.00% 2.2 Delayed Quote.44.74%
All news about ENDEAVOUR MINING CORPORATION
01/22ENDEAVOUR MINING : Sells Non-Core Agbaou Mine for Up to $80 Million
MT
01/22ENDEAVOUR BRIEF : Announces Sale of its Non-Core Agbaou Mine
MT
01/22Endeavour Announces the Sale of its Non-Core Agbaou Mine
GL
01/22Endeavour shareholders approve takeover of Teranga Gold
RE
01/21Endeavour Mining Shareholders Vote to Approve Acquisition of Teranga Gold
MT
01/21Endeavour shareholders approve takeover of Teranga Gold
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01/21ENDEAVOUR MINING : Shareholders Vote Overwhelmingly in Favour of The Arrangement..
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01/21ENDEAVOUR MINING CORPORATION : Ex-dividend day for
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01/13TERANGA GOLD : Reports Highest Quarterly Production in Company History Driving a..
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Financials
Sales 2020 2 022 M 1 586 M 1 586 M
Net income 2020 289 M 227 M 227 M
Net Debt 2020 512 M 402 M 402 M
P/E ratio 2020 15,2x
Yield 2020 0,89%
Capitalization 4 324 M 3 398 M 3 393 M
EV / Sales 2020 2,39x
EV / Sales 2021 1,71x
Nbr of Employees 3 726
Free-Float 75,5%
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Technical analysis trends ENDEAVOUR MINING CORPORATION
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TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 11
Average target price 50,20 CAD
Last Close Price 26,52 CAD
Spread / Highest target 130%
Spread / Average Target 89,3%
Spread / Lowest Target 69,7%
EPS Revisions
Managers and Directors
NameTitle
Sébastien Bernard de Montessus Chief Executive Officer & Executive Director
Michael Ernest Beckett Chairman
Mark Morcombe Chief Operating Officer & Executive Vice President
Joanna Pearson Chief Financial Officer & Executive Vice President
Henri de Joux Executive VP-People & Information Technology
Sector and Competitors
1st jan.Capitalization (M$)
ENDEAVOUR MINING CORPORATION-10.47%3 398
NEWMONT CORPORATION3.11%50 250
BARRICK GOLD CORPORATION3.90%42 151
POLYUS-2.90%27 365
WHEATON PRECIOUS METALS CORP.-2.92%18 378
AGNICO EAGLE MINES LIMITED0.26%17 182