Endomines - Second chapter of the story begins
In May, Endomines unveiled its updated strategy for 2025–2029. The company achieved a successful turnaround during the previous strategy period, supported by favorable market conditions and solid operational execution. We believe Endomines remains on the right track moving forward while we see the new targets rather ambitious.
Gold exploration, development and mining company
Endomines is active on exploration, development and mining of gold assets located in the Karelian Gold Line in Eastern Finland. In addition to the Finnish assets, the company also holds rights to seven deposits located in the United States. The company’s current strategic focus is on the Finnish operations where it produces gold concentrate in its processing facility in Pampalo and conducts exploration both in Pampalo and other parts of the Karelian Gold Line.
Targets are achievable, but the schedule is uncertain
Endomines aims to produce some 70,000-100,000 ounces of gold by around 2030, or roughly 5-7x time production of 14,304 ounces in 2024. The gold production growth is aimed to be achieved by developing the Southern Gold Line prospect into production. The schedule seems rather tight for the development, yet the company has already started permitting processes in the area and has identified resource base of approximately 270,000 ounces in the SGL. Furthermore, Endomines has a track record of successfully ramping up deposits in the area. Considering the recent financing arrangement and the favorable developments in the gold market, the annual exploration drilling expenditures of EUR 4–6 million should be well secured. Furthermore, the latest drill results from Ukkolanvaara indicate potential and may further accelerate resource growth in the Southern Gold Line.
REDUCE (prev. SELL) with a TP of EUR 27.0 (prev. EUR 24.5)
Our updated fair value range for Endomines is at EUR 24.5 – 29.2 per share. We continue to base our TP in the middle of the range derived from the sum of the parts model. The primary reason for the TP increase is the sustained strength of the gold market and the positive trend in gold prices. Although there are several positive aspects for the investment case, significant uncertainties persist, and the company’s investment case will be shaped by both gold market movements and the results of exploration work in the years to come.