Endeavour Mining (EDV) Q2 2024 earnings summary

Executive summary

• H1-2024 gold production reached 470koz at an AISC of $1,237/oz, with Q2-2024 production of 251koz at $1,287/oz; performance expected to be H2-weighted as new projects ramp up.

• First gold pours achieved at Sabodala-Massawa BIOX® Expansion and Lafigué in Q2-2024, both delivered on budget and ahead of schedule; ramp-up to nameplate capacity expected in Q3-2024.

• New shareholder returns policy announced: at least $435m in dividends for 2024–2025, with $120m returned in H1-2024 via $100m dividend and $20m buybacks.

• Net debt stood at $835m with leverage at 0.81x; $368m invested in growth, exploration, and shareholder returns in H1-2024.

• Executive management team restructured, with new appointments in operations, technical, and commercial roles.

Financial highlights

• Q2-2024 gold production was 251koz (+15% vs Q1-2024); gold sales were 238koz (+6%).

• Q2-2024 AISC was $1,287/oz (+9% vs Q1-2024); realized gold price was $2,287/oz (+12%).

• Adjusted EBITDA for Q2-2024 was $249m, with a stable EBITDA margin of 45%.

• Operating cash flow in Q2-2024 was $258m, supported by higher production, gold prices, working capital inflow, and a $150m gold prepayment.

• Adjusted net earnings attributable to shareholders were $3m in Q2-2024, down from $41m in Q1-2024, due to higher tax expenses and financial instrument losses.

Outlook and guidance

• FY-2024 production guidance is 1,130–1,270koz, up to 18% higher than FY-2023, with H2-2024 weighted performance.

• FY-2024 AISC guidance is $955–1,035/oz, expected near the top end, with lower costs in H2-2024 as new projects ramp up.

• Minimum dividend of $435m over 2024–2025, with potential for supplemental dividends and buybacks if gold price exceeds $1,850/oz and leverage is healthy.

• Exploration spend guidance for FY-2024 increased to $77m, focused on cornerstone mines and Assafou project.

• Group sustaining capital expenditure outlook unchanged at $125m; non-sustaining capex at $190m; growth capex at $245m.