ENDEAVOUR MINING CAPITAL ANNOUNCES
Q2 EARNINGS
Toronto Stock Exchange: EDV
February 12, 2008
George Town, February 12, 2008, Endeavour Mining Capital Corp. (�Endeavour� or
�Corporation�) recorded net income of $1.5 million or $0.05 per share (or
approximately CDN$0.05 per share) for the quarter ended December 31, 2007. This
compares with net income of $32.3 million or $1.38 per share (or approximately
CDN$1.61 per share) reported for the quarter ended December 31, 2006. The
Corporation recorded $20.7 million of revenue from realised gains, interest and
dividends and $17.3 million of financial advisory fees during the quarter. The
realized revenue of $38.0 million was offset by an unrealised mark to market
loss on the investment portfolio of $18.8 million, resulting in total revenue
of $19.2 million.
Commenting, Neil Woodyer, Chief Executive Officer stated �In this quarter, we
earned $17.3 million of revenue from advisory fees and $1.9 million of net
investment income from our proprietary capital investments. We are satisfied to
have generated a positive amount of investment income given the overall weak
conditions of the global equity markets during the quarter. We are very pleased with the
advisory fee revenues which are primarily the result of Endeavour�s role with
two long-standing merchant banking clients, Northern Orion and Rusoro Mining.
During the quarter we acted as an advisor to Northern Orion on its three-way
merger with Yamana Gold and Meridian Gold to create one of the leading gold
producers amongst the intermediates with a combined market value of $9.8
billion. Endeavour also acted as the advisor to Rusoro Mining on its
acquisition of Gold Fields� Venezuelan gold assets in a transaction valued at
$526 million. Most recently, Endeavour acted as the advisor to Petro Rubiales
Energy on its acquisition of Pacific Stratus which closed in January 2008 to
create the largest independent oil and gas company in Colombia. Due to the
timing of the closing, the Petro Rubiales transaction will contribute to Q3
results. We are clearly seeing numerous benefits from the integrated merchant
banking business strategy wherein we seek to maximise our earnings through
advisory fees and timely capital investments. We are focused on creating value
for our clients as we are often shareholders. We have, or have had, equity
investments in each of Northern Orion, Yamana, Rusoro, Petro Rubiales and
Pacific Stratus, to name a few.�
Commenting on the results, Frank Holmes, Chairman said �The resource markets
have continued to experiencing a sharp sell off as investors scramble for
liquidity due to the subprime debt crisis. Despite the sell off, Endeavour�s
net investment income was positive for the quarter at $1.9 million. We consider
the proprietary capital investments to be well positioned in a very volatile
market and we have no exposure to asset backed securities or subprime debt.
Most importantly China�s 11th five year plan is to double infrastructure
spending and India has increased its five year investment plan by 130% to a
record $500 billion to improve their infrastructure on the back drop of tight
supplies for most metals.�
Endeavour will host a conference call today to discuss this earnings
announcement at 10:00 AM Eastern Standard Time. The meeting will be webcast by
V-Call and can be accessed from the Corporation�s website at www.endeavourminingcapital.com
or by calling the operator at 201-689-8031 or toll free 1-877-407-8031 prior to
the scheduled start time.
The conference call will be archived for later playback on the Corporation�s
website.
Endeavour Mining Capital Corp. is a publicly-traded merchant banking company
offering integrated capital investment and financial advisory services to the
global natural resources sector. The Corporation offers a unique combination of
financial and intellectual capital to help build companies and create
shareholder value. Our shares are listed on the Toronto Stock Exchange under
the symbol EDV and offer a distinctly different way to invest in the natural
resources sector.
For additional information, please visit our corporate website, www.endeavourminingcapital.com.
On behalf of Endeavour Mining Capital Corp.
�Bill Koutsouras�
Chief Financial Officer, Director & Secretary
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
Mining Capital Corp. 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.
For further information on Q2 Earnings and Webcast
please click here.
For additional information, please contact:
Investor Relations, Vanguard Shareholder Solutions
Phone: 1-866-801-0779 or (604) 608-0824
email: investor@endeavourminingcapital.com
Endeavour Mining Capital
Vanguard Shareholder Solutions
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