From GlobeNewswire: 2025-05-01 02:00:00

Endeavour Mining plc reported strong Q1-2025 results with adjusted EBITDA of $613m and record free cash flow of $409m. Quarterly production stood at 341koz at AISC of $1,129/oz, on track to meet FY-2025 guidance. Net debt reduced by over $350m to $378m, with a significant improvement in Net Debt / Adj. EBITDA ratio.

The company paid a record $140m dividend in H2-2024, with total returns of $277m, equivalent to a 5.9% yield or $251/oz produced. FY-2025 total returns expected to surpass FY-2024. Assafou project DFS on track, exploration ongoing at Assafou and Pala Trend 3 target for maiden resource in H2-2025.

Endeavour generated record free cash flow of over $400 million in Q1, reflecting a transition to a highly free cash flow generative phase. Management remains positive about the strong operational performance in Q1, which puts them on track to achieve full-year guidance. Conference call and webcast scheduled for more details. Endeavour Mining has generated over $775 million in free cash flow, strengthening their balance sheet by reducing net debt by $350 million. They rewarded shareholders with a total of $277 million in dividends and share buybacks for FY-2024. The Assafou project is progressing well, with a resource update expected later this year.

The company reported strong safety performance with zero Lost Time Injuries in the quarter and a Lost Time Injury Frequency Rate of 0.05. Q1-2025 production was 341koz, slightly lower than Q4-2024. Total cash costs improved to $929/oz due to lower mining and processing unit costs. AISC decreased to $1,129/oz driven by lower costs and sustaining waste capital.

Endeavour’s shareholder returns programme has exceeded expectations, returning more than $1,232.4 million to shareholders since Q1-2021. FY-2024 saw record dividends of $240 million. With a focus on maximizing free cash flow and enhancing shareholder returns, Endeavour is well-positioned to capitalize on the current gold price environment and deliver value for stakeholders. Endeavour Mining (EDV) paid a $140.0 million dividend ($0.57/sh) on April 15, 2025, with $37.0 million in share buybacks, totaling $277.0 million for FY-2024. FY-2025’s minimum dividend commitment is $225.0 million, with $40.0 million in Q1-2025 share buybacks. YTD-2025 repurchases reached $52.4 million. The total minimum return for FY-2025 is already $277.4 million.

Cash flow for Endeavour Mining in Q1-2025 showed $494 million in operating cash flows, $409 million in free cash flow, and a net debt of $378 million. This represented an increase of $112.8 million from Q4-2024 to Q1-2025 due to higher gold prices, lower costs, and increased revenues. Working capital was an outflow of $98.0 million in Q1-2025. Endeavour Mining reported a Q1-2025 outflow of $98.0 million in working capital, driven by increases in payables and inventory. Gold sales totaled 353koz, slightly down from Q4-2024, with a realized price of $2,939/oz. Total cash cost per ounce decreased to $929. Income taxes paid increased to $39.0 million due to Senegal payments.
Income taxes paid decreased to $39.0 million in Q1-2025, down from $51.3 million in Q1-2024. Cash flows used in investing activities decreased to $84.8 million, with reduced capital spend and lower expenditure following project commissioning. Sustaining capital increased by $12.3 million. Endeavour’s cash flows used in investing activities decreased by $102.7 million in Q1-2025, mainly due to lower growth capital and non-sustaining capital, with an inflow of $17.0 million related to the release of restricted cash at Ity. Sustaining capital increased to $55.7 million, while non-sustaining capital decreased to $37.6 million.

Cash flows used in financing activities decreased by $69.2 million in Q1-2025, with an outflow of $66.8 million, mainly due to shareholder dividend payments and higher financing fees. Endeavour’s net debt position improved by $353.9 million, from $731.6 million to $377.7 million, and the net debt / Adjusted EBITDA leverage ratio improved from 0.55x to 0.22x.

Revenue for Endeavour increased by $101.3 million in Q1-2025 to $1,041.8 million, driven by a higher realised gold price of $2,939/oz, partially offset by slightly lower volumes of gold sold. Adjusted net earnings from operations attributable to shareholders of the Company increased to $219 million, with adjusted net earnings per share from operations at $0.90. Endeavour’s revenue surged to $1.04 billion in Q1-2025, up from $472.7 million in Q1-2024, driven by higher gold prices and increased sales volumes. Operating expenses decreased to $259 million, while royalties increased to $75.7 million. The company’s net comprehensive earnings saw a significant improvement to $222.3 million in Q1-2025.

In Q1-2025, Endeavour implemented a Revenue Protection Programme to enhance cash flow visibility. The company’s current income tax expense rose to $120.9 million, reflecting higher taxable profits. Exploration costs increased to $8.6 million due to the launch of FY-2025 drill programs. Net comprehensive earnings from continuing operations improved to $222.3 million. Endeavour Mining Corporation reported financial results for Q1-2025, including an unrealised loss on financial instruments of $45.5 million. Adjusted net earnings attributable to shareholders increased to $219.0 million. Production at the Houndé Gold Mine in Burkina Faso decreased in Q1-2025 compared to Q4-2024 due to lower grades processed and lower tonnes milled. AISC improved significantly to $858/oz in Q1-2025 from $1,024/oz in Q4-2024. Production at the Ity Gold Mine in Côte d’Ivoire increased in Q1-2025 compared to Q4-2024. In Q1-2025, Endeavour Mining’s production remained stable at 84koz despite lower ore milled, offset by higher grades processed. AISC decreased from $987/oz to $930/oz due to higher gold sales and cost efficiencies. Production decreased slightly from Q1-2024 to 84koz in Q1-2025, with AISC increasing from $884/oz to $930/oz.

Ity’s FY-2025 production guidance is 290-330koz with an AISC of $975-$1,100/oz. Q2-2025 ore will be sourced from various pits with expected lower grades processed. H2-2025 production is expected to decrease due to reduced high-grade ore mining. Sustaining capital expenditure for FY-2025 is $20.0 million with non-sustaining at $35.0 million.

At the Mana Gold Mine in Burkina Faso, production increased from 41koz in Q4-2024 to 46koz in Q1-2025 due to higher grades processed. Total underground ore mined decreased, and development rates were slightly lower. Average grades processed increased with consistent recovery rates. Total cash cost/oz increased to $1,360 and AISC/oz to $1,887 in Q1-2025. In Q1-2025, Endeavour Mining saw an increase in AISC from $1,698/oz to $1,887/oz due to various factors including higher royalties and mining costs. Production increased to 46koz, but AISC also rose from $1,453/oz to $1,887/oz compared to Q1-2024. The company expects to meet its FY-2025 production goal of 160-180koz with AISC between $1,550/oz and $1,750/oz.

At the Sabodala-Massawa Gold Mine in Senegal, production increased from 70koz in Q4-2024 to 72koz in Q1-2025 due to higher recovery rates. Total and ore mined decreased, but total tonnes milled increased. Average grades decreased while recovery rates improved. AISC dropped from $1,261/oz to $1,173/oz due to lower haulage costs, despite higher sustaining capital expenditure. In Q1-2025, Endeavour’s sustaining capital expenditure rose to $15.3 million from $10.6 million in Q4-2024. Non-sustaining capital expenditure dropped to $2.6 million from $12.1 million in Q4-2024, excluding the solar power plant costs. Production increased to 72koz from 49koz in Q1-2024, but AISC rose to $1,173/oz from $947/oz due to higher costs.

Endeavour expects to meet its FY-2025 production goal of 250koz – 280koz at an AISC of $1,100/oz – $1,250/oz at Sabodala-Massawa. In Q2-2025, CIL plant production is expected to be stable, while ore will be sourced from various pits. The solar power plant was fully commissioned in Q1-2025, reducing fuel consumption and emissions.

At Lafigué Mine, production decreased to 48koz in Q1-2025 from 60koz in Q4-2024 due to lower grades and higher processing costs, increasing AISC to $926/oz from $801/oz. Total tonnes mined rose, while ore tonnes mined fell. FY-2025 production target is 180koz – 210koz at an AISC of $950/oz – $1,075/oz, with mining activities shifting to the Eastern flank in H2-2025. During FY-2025, Endeavour Mining expects sustaining capital expenditure to focus on waste stripping, grade control drilling, and spare purchases. Non-sustaining capex remains at $50.0 million, with $27.4 million spent in Q1-2025 on pushback in the Main pit and TSF embankment raise. The Assafou project in Côte d’Ivoire shows promising pre-feasibility results with 329kozpa production and robust economics.

Endeavour has met its five-year exploration target by discovering 12.2Moz at a cost of less than $25/oz. A $75.0 million exploration program is planned for FY-2025, focusing on core assets, the Assafou discovery, and new greenfield opportunities. Q1-2025 saw $24.3 million spent on drilling with successful results.

At the Houndé mine, $7.0 million is allocated for FY-2025 exploration with a focus on near-mine resources. In Q1-2025, over 1,700 meters of drilling confirmed potential for a high-grade underground resource. The Ity mine has a $10.0 million exploration program for FY-2025, with drilling confirming mineralisation continuity. The Mana mine has a $3.0 million exploration program for FY-2025, with successful drilling in Q1-2025.

Overall, Endeavour Mining is committed to an extensive exploration program in FY-2025, with a focus on resource growth, new discoveries, and organic growth opportunities. Key mines such as Houndé, Ity, and Mana have allocated budgets for exploration activities, with successful drilling results reported in Q1-2025. Endeavour Mining’s exploration programme in FY-2025 focuses on extending mineralisation at the Wona Deep underground deposit. Deep drilling 200 meters below the current resource confirmed mineralisation at depth. The company also plans to invest in the Sabodala-Massawa, Lafigué, and Assafou projects to expand resources and define new targets in the region.

In Q1-2025, Endeavour Mining spent $7.3 million on drilling activities at the Sabodala-Massawa mine, confirming mineralisation at Golouma West and other deposits. The company will continue drilling to extend resources and provide near-term support for the mine plan. Additional drilling is planned at the Massawa North complex and other targets.

For the Lafigué mine, Endeavour Mining allocated $5 million for exploration in FY-2025. The company spent $0.2 million in Q1-2025 preparing for drilling near the Lafigué processing plant. The focus remains on drilling near-mine targets to delineate potential resources close to the processing plant for further exploration.

Endeavour Mining’s exploration programme at the Assafou Project in FY-2025 involves increasing resource size and defining maiden resources at satellite targets. The company spent $3.4 million in Q1-2025 on drilling activities, confirming high-grade mineralisation at the Assafou deposit. Infill drilling will continue throughout the year to establish updated mineral resource estimates.

Endeavour Mining is also investing in new ventures through greenfield exploration programmes to build a long-term growth pipeline. The company made strategic investments in Koulou Gold Corp., focusing on early-stage exploration projects in Côte d’Ivoire. These projects include Assuéfry, Sakassou, and Kouto, located in highly prospective greenstone belts in the region.

A conference call and webcast are scheduled for May 1, 2025, to discuss Endeavour Mining’s financial results. Management will provide updates on the company’s exploration programmes and investments in various projects. Investors and analysts can participate in the call to ask questions and learn more about the company’s operations and future plans.



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