Industria
Endeavour Reports FY-2024 Preliminary Results; Announces Record H2-2024 Dividend
ENDEAVOUR REPORTS FY-2024 PRELIMINARY RESULTS; ANNOUNCES RECORD H2-2024 DIVIDEND
FY-2024 production of 1.1Moz at AISC of ~$1,220/oz • 2024 year-end leverage of <0.60x • FY-2024 shareholder returns of $277m
London, 30 January 2025 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) ("Endeavour" or the "Group" or the "Company") is pleased to announce its unaudited preliminary financial and operating results for the fourth quarter and full year 2024, with highlights provided in Table 1 below.
Table 1: Preliminary Financial and Operating Results Highlights
All Q4-2024 and FY-2024 numbers are preliminary and
unaudited, and reflect Endeavour's expected results as at the date of this press release.
Production and AISC highlights from continuing operations This is a non-GAAP measure, for details please refer to the most recent MD&A available on Endeavour Mining's website.
Total cash cost per ounce is calculated as operating expenses from mine operations, royalties, and non-cash adjustments divided by gold ounces sold.
Ian Cockerill, Chief Executive Officer, commented: “2024 was a pivotal year for Endeavour. We successfully commissioned two high-margin growth projects, delivered the preliminary feasibility study for the tier-1 Assafou project, and significantly increased our free cash flow generation through the year, supporting record dividends for our shareholders.
Our robust operational performance resulted in 1.1 million ounces of production at a class-leading all-in sustaining cost of ~$1,220 per ounce. As expected, our operating performance was weighted toward the second half, driving improvements in free cash flow generation through the year, accelerating balance sheet improvement, and we ended the year on track to achieve our 0.5x leverage target in the near term.
Given our low leverage and the recent cash flow inflection, we have declared a record dividend of $140 million for H2-2024, bringing total returns for FY-2024 to $277 million, or $251 for every ounce produced. Since we began our returns programme in 2021, we have now returned over $1.1 billion, 79% more than the minimum commitment for the period, reiterating our commitment to paying supplemental shareholder returns.
We successfully delivered both the Sabodala-Massawa BIOX expansion and the Lafigué project on budget and on schedule in under two years, declaring commercial production at both mines in August last year. After completing this phase of organic growth, we outlined our next phase, with the completion of the pre-feasibility study for the Assafou project defining a potential tier 1 cornerstone asset for Endeavour. Assafou is expected to support our organic production growth up to 1.5 million ounces by the end of the decade, while improving the quality and diversification of our portfolio.
During the year, our exploration programme delivered significant resource to reserve conversion at Assafou and at Ity, as well as resource additions at Ity and Sabodala-Massawa, in line with our long-term discovery targets. During 2025, we will focus on adding resources at our cornerstone assets while we continue to delineate further opportunities for resource expansion at our Assafou project.
I would like to thank our team for their continued hard work during 2024 that has created the foundation for further success in 2025. As we increase production by up to 15%, maintain stable costs and significantly reduce capex, driving higher free-cash flow generation, our goal is to further increase returns to shareholders this year, through supplemental dividends and an increased commitment to share buybacks."
SHAREHOLDER RETURNS PROGRAMME
Table 2: Cumulative Shareholder Returns
Q4-2024 AND FY-2024 OPERATIONAL PERFORMANCE OVERVIEW
Table 3: 2024 All-In Sustaining Costs
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release. 2024 AISC guidance was based on a gold price of $1,850/oz compared to the realised gold price of $2,418/oz As previously disclosed, grid availability issues increased self-generated power costs across Burkina Faso and Côte d'Ivoire assets during the FY-2024.
Table 4: Consolidated Group Production
All Q4-2024 and FY-2024 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release. Includes pre-commercial ounces that are not included in the calculation of All-In Sustaining Costs. The Boungou and Wahgnion mines were divested on 30 June 2023.
Table 5: Consolidated Total Cash Costs
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release. This is a non-GAAP measure. Excludes pre-commercial costs associated with ounces from the Sabodala -Massawa BIOX Expansion project and the Lafigué mine. The Boungou and Wahgnion mines were divested on 30 June 2023. Total cash cost per ounce is calculated as operating expenses from mine operations, royalties, and non-cash adjustments divided by gold ounces sold.
Table 6: Consolidated All-In Sustaining Costs
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release. This is a non-GAAP measure. Excludes pre-commercial costs associated with ounces from the Sabodala -Massawa BIOX Expansion project and the Lafigué mine. The Boungou and Wahgnion mines were divested on 30 June 2023.
2025 OUTLOOK
Table 7: 2025 Production Guidance
All FY-2024 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release. Production for Lafigué and production contributions from the Sabodala -Massawa BIOX expansion project include pre-commercial production. FY-2025 production guidance excludes the impact of the initiatives from the Sabodala-Massawa technical review.
Table 8: 2025 Total Cash Cost Guidance
All FY-2024 numbers are preliminary and unaudited,and reflect Endeavour's expected results as at the date of this press release. FY-2025 Total Cash Costs guidance is based on an assumed average gold price of $2,000/oz and USD:EUR foreign exchange rate of 0.90. Total Cash Costs for Lafigué and the Sabodala -Massawa expansion project are for the post-commercial production period. Total Cash Cost per ounce is calculated as operating expenses from mine operations, royalties, and non-cash adjustments divided by gold ounces sold.
Table 9: 2025 All-In Sustaining Cost Guidance
This is a non-GAAP measure. Refer to the non-GAAP measure section of the most recent MD&A. All FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release. FY-2025 AISC guidance is based on an assumed average gold price of $2,000/oz and USD:EUR foreign exchange rate of 0.90. AISC for Lafigué and the Sabodala -Massawa BIOX expansion project are for the post-commercial production period.
Table 10: 2025 Capital Expenditure Guidance
All FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release.
Table 11: 2025 Exploration Guidance
All FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release.
OPERATIONAL DETAILS BY ASSET
Houndé Mine, Burkina Faso
Table 12: Houndé Performance Indicators
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release.
Q4-2024 vs Q3-2024 Insights
FY-2024 Performance
2025 Outlook
Ity Mine, Côte d'Ivoire
Table 13: Ity Performance Indicators
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release.
Q4-2024 vs Q3-2024 Insights
FY-2024 Performance
2025 Outlook
Mana Mine, Burkina Faso
Table 14: Mana Performance Indicators
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release.
Q4-2024 vs Q3-2024 Insights
FY-2024 Performance
2025 Outlook
Sabodala-Massawa Mine, Senegal
Table 15: Sabodala-Massawa Performance Indicators
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release.
Q4-2024 vs Q3-2024 Insights
FY -2024 Performance
2025 Outlook
Solar Power Plant
Lafigué Mine, Côte d'Ivoire
Table 16: Lafigué Performance Indicators
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect Endeavour's expected results as at the date of this press release.
Q4-2024 vs Q3-2024 Insights
FY-2024 Performance
2025 Outlook
Assafou Project, Côte d'Ivoire
Project Update
FINANCIAL POSITION & LIQUIDITY
Table 17: Net Debt Position
All Q4-2024 and FY-2024 numbers are preliminary and unaudited, and reflect our expected results as of the date of this press release.
QUALIFIED PERSONS
Brad Rathman, Vice President - Mining of Endeavour Mining plc., a Fellow of the Australasian Institute of Mining and Metallurgy, is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and approved the technical information in this news release.
CONTACT INFORMATION
ABOUT ENDEAVOUR MINING PLC
Endeavour Mining is one of the world's senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d'Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.
A member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is admitted to listing and to trading on the London Stock Exchange and the Toronto Stock Exchange, under the symbol EDV.
For more information, please visit www.endeavourmining.com .
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact, are “forward-looking statements”, including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, the success of exploration activities, the anticipated timing for the payment of a shareholder dividend and statements with respect to future dividends payable to the Company's shareholders, the completion of studies, mine life and any potential extensions, the future price of gold and the share buyback programme. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates", believes”, “plan”, “target”, “opportunities”, “objective”, “assume”, “intention”, “goal”, “continue”, “estimate”, “potential”, “strategy”, “future”, “aim”, “may”, “will”, “can”, “could”, “would” and similar expressions .
Forward-looking statements, while based on management's reasonable estimates, projections and assumptions at the date the statements are made, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful completion of divestitures; risks related to international operations; risks related to general economic conditions and the impact of credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; Endeavour's financial results, cash flows and future prospects being consistent with Endeavour expectations in amounts sufficient to permit sustained dividend payments; the completion of studies on the timelines currently expected, and the results of those studies being consistent with Endeavour's current expectations; actual results of current exploration activities; production and cost of sales forecasts for Endeavour meeting expectations; unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates; increases in market prices of mining consumables; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; extreme weather events, natural disasters, supply disruptions, power disruptions, accidents, pit wall slides, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities; changes in national and local government legislation, regulation of mining operations, tax rules and regulations and changes in the administration of laws, policies and practices in the jurisdictions in which Endeavour operates; disputes, litigation, regulatory proceedings and audits; adverse political and economic developments in countries in which Endeavour operates, including but not limited to acts of war, terrorism, sabotage, civil disturbances, non-renewal of key licenses by government authorities, or the expropriation or nationalisation of any of Endeavour's property; risks associated with illegal and artisanal mining; environmental hazards; and risks associated with new diseases, epidemics and pandemics.
Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour's most recent Annual Information Form filed under its profile at www.sedarplus.ca for further information respecting the risks affecting Endeavour and its business.
The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board of Directors, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with the Company's constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board of Directors deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.
CAUTIONARY STATEMENTS REGARDING PRODUCTION, AISC AND TOTAL CASH COST
Whether or not expressly stated, all figures contained in this press release including production, AISC and total cash cost levels are preliminary and reflect our expected annual and quarterly results as of the date of this press release. Actual reported annual and quarterly results are subject to management's final review, as well as audit by the company's independent accounting firm, and may vary significantly from those expectations because of a number of factors, including, without limitation, additional or revised information, and changes in accounting standards or policies, or in how those standards are applied. The annual and quarterly AISC and total cash cost include expected amounts for year-end accrual and working capital adjustments. Endeavour will provide additional discussion and analysis and other important information about its annual production, AISC and total cash cost levels when it reports actual results.
NON-GAAP MEASURES
Some of the indicators used by Endeavour in this press release represent non-IFRS financial measures, including “all-in sustaining cost”, "total cash cost", “net cash / net debt”, “EBITDA”, “adjusted EBITDA”, “net cash / net debt to adjusted EBITDA ratio”, “cash flow from continuing operations”, “total cash cost per ounce”, “sustaining and non-sustaining capital”. These measures are presented as they can provide useful information to assist investors with their evaluation of the pro forma performance. Since the non-IFRS performance measures listed herein do not have any standardised definition prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the non-GAAP measures section in this press release and in the Company's most recently filed Management Report for a reconciliation of the non-IFRS financial measures used in this press release.
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