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ENDEAVOUR REPORTS FINANCIAL RESULTS FOR QUARTER ENDED DECEMBER 31, 2008
Toronto Stock Exchange: EDV
George Town, Grand Cayman, February 9, 2009 - Endeavour Financial
Corporation ("Endeavour" or the "Corporation") today
reported a net loss of US$111.1 million or US$3.68 per share, for the
quarter ended December 31, 2008. This compares with net income of US$1.5
million or US$0.05 per share for the quarter ended December 31, 2007.
The loss during the quarter is principally driven by an investment loss
of US$109.8 million comprised of realized losses on the sale of
investments of US$28.0 million, interest and dividends of US$0.3 million
and a mark-to-market loss on the investments of US$82.1 million. Advisory
fee revenue during the quarter was $2.4 million.
The financial results in the quarter ended December 31, 2008 are a direct
result of the continued sell-off in the global markets, which resulted in
significant mark-to-market losses on the Corporation's investment
portfolio. Including the effects of the mark-to-market adjustments noted
above, the Corporation's book value was US$125 million (or approximately
CDN$4.98 per issued and outstanding share), compared to US$236 million
(or approximately CDN$8.31 per share) as of September 30, 2008.
At December 31, 2008 the Corporation had cash and cash equivalents of
US$4.8 million, investments of US$63.9 million and a working capital
position of US$68.9 million (see Subsequent Events for the Corporation's
recent equity offering, completed February 4, 2009).
Neil Woodyer, President and Chief Executive Officer commented
"Despite our second quarter results, we continue to aggressively
pursue investment opportunities and specifically those in the precious
metals sector. The recent, successful, re-capitalization of the
Corporation as a result of the completed equity offering for gross
proceeds of CDN$115 million has enabled us to remain proactive and competitive.
Our primary objective to maintain long-term performance has not
changed".
Resource Transactions
- During the quarter ended December 31, Endeavour,
financial advisor to Bisha Mining Share Company, a subsidiary of
Nevsun Resources Ltd., arranged a US$89 million commitment from the
Industrial Development Corporation of South Africa towards the
development of the Bisha Project, located in Eritrea.
- Endeavour Financial was engaged by Dannemora
Mineral AB as its financial advisor in October, 2008 to assist in
financing the Company's Dannemora iron ore project, located in
Sweden.
- Endeavour Financial is advising Rusoro Mining
Ltd., who launched a take-over bid for Gold Reserve Inc. on December
15, 2008.
Dividend Policy
The current market environment will give rise to many opportunities and
accordingly the board has elected to suspend the monthly dividend for the
foreseeable future.
Subsequent Events
- On February 4, 2009 the Corporation closed an
equity offering of 65 million units (CDN$1.77 per Unit; each unit
consisting of one ordinary voting share and one-half of one share
purchase warrant) for gross proceeds of CDN$115 million. Net
proceeds from the offering will be used for investments in the
natural resource sector.
- Subsequent to the second quarter, Fiore Financial
Corporation (a Corporation led by Frank Giustra) entered into an
agreement with Endeavour to extend its existing exclusive agreement
to January 31, 2012. Fiore Financial Corporation assists
Endeavour in sourcing and developing new investment opportunities.
Conference Call Details
- Management's discussion of the financial results
for the quarter ending December 31, 2008 will be webcast by V-Call
on Monday, February 9, 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 201-689-8031 or toll free 1-877-407-8031
prior to the scheduled start time. The call will be archived for
later playback on Endeavour's website until February 9, 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 provides equity and bridge loans in support of clients,
transactions, and other market opportunities. Accessing its global
industry networks, Endeavour creates and launches new growth companies as
both an advisor and investor.
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/Endeavour_Feb.pdf
On behalf of Endeavour Financial Corporation
"Neil Woodyer"
Neil Woodyer
Chief Executive Officer
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.
For additional information, contact:
Dr. Sally Eyre
Director Marketing & Business Development
Endeavour Financial
(604) 609-6129
Or
Mr. Bill Koutsouras
Executive Vice President and Chief Financial Officer
Endeavour Financial
+ 377 97 98 7130
Or
Vanguard Shareholder Solutions
1-866-341-4111 or (604) 608-0824
Email: investor@endeavourfinancial.com
www.endeavourfinancial.com
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