The FTSE 100-listed Endeavour Mining PLC (GB:EDV) announced the immediate termination of its President and CEO Sébastien de Montessus, citing allegations of “serious misconduct.” Investors reacted negatively to the news, and Endeavour shares fell sharply by around 12% at the time of writing today.
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The company appointed the deputy chair of its board, Ian Cockerill, as the interim CEO.
Endeavour Mining is a global mining company with gold mines located in Côte d’Ivoire, Burkina Faso, and Senegal.
What Led to the CEO’s Dismissal?
The CEO’s dismissal resulted from an investigation after the company identified an unusual payment instruction of $5.9 million issued by him. This payment was related to the sale of an asset in recent years.
As reported by the Financial Times, Montessus acknowledged that he asked one of Endeavour’s creditors to offset an amount owed to the company to fund security equipment to protect its partners and employees in a conflict zone. He admitted that there was a “lapse in judgment” on his part as he did not inform the board regarding this transaction.
Moreover, the company reported that additional allegations were lodged against Montessus in October 2023 through its “confidential whistleblowing channel,” specifically concerning his behaviour with colleagues.
Analysts’ Reactions
Analyst Wayne Lam from RBC Capital expects some “near-term uncertainty” for the company due to this termination. He added that this could also hinder the development of the upcoming projects. Lam has a Buy rating on the stock with a forecast of 66% upside. Berenberg Bank analyst Richard Hatch called the news as “unexpected.”
Today, UBS analyst Daniel Major also reiterated a Buy rating on the stock, predicting 53% growth.
Is Endeavour Mining a Good Buy?
According to TipRanks, EDV stock has received a Strong Buy consensus rating, backed by all Buy recommendations from nine analysts. The Endeavour Mining share price target is 2,394.61p, which implies an upside of 60% from the current trading level.
