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After a Spending Spree on West African Mines, Investors want ROI

Canadian gold firm Endeavour Mining, which is preparing for a London listing late next quarter, is switching its focus to integrating new mines after a $2.7 billion acquisition spree in West Africa last year spooked some investors. The group, whose share price has underperformed a wider index of gold mining stocks to slide nearly 30% since mid-2020, is hitting the brakes on new purchases after buying mining firms Semafo and Teranga Gold in the last year. Chief Executive Sebastien de Montessus said his priority now is to show shareholders he is committed to organic growth in six core gold mines across Ivory Coast, Senegal, and Burkina Faso. While Endeavour’s deal to buy Semafo created the biggest gold producer in Burkina Faso, the company’s overall valuation on a 12-month forward price-to-earnings basis has fallen since the acquisition closed last July, Datastream I/B/E/S estimates show. Its later purchase of Teranga, which added a large mine in Senegal and a bigger footprint in Ivory Coast, came partly from a desire to boost its valuation ahead of its London listing by diversifying its portfolio into other countries.