Endeavour Mining starts year on ‘strong footing’ with 14% quarterly earnings rise

Endeavour Mining has today reported a 14% revenue rise to US$686 million in the first quarter of the year (compared with Q1 2021), following a strong operational performance since the new year.

The company, which operates a number of gold mines across West Africa, increased its quarterly gold production by 14% to 357,000 ounces from 313,000 ounces a year earlier, while benefitting from a rising gold price in Q1.

Rising inflation across global markets and Russia’s invasion of Ukraine have elevated the gold price in recent months, with Evolution pinning its realised gold price at $1,911 per ounce in 2022 – an 8.5% year-on-year increase.

However, the LSE and TSX-listed firm’s pre-tax profit dropped by 71% to $51 million from $173 million a year prior, due to an unrealised loss on financial instruments related to forward gold sales. Nonetheless, adjusted EBITDA climbed by 22% year-on-year to $398 million.

“We are pleased to have started the year on a strong footing with both production and all-in sustaining costs well positioned to meet full year guidance,” said chief executive Sebastien de Montessus.

“This performance has resulted in robust cash flow generation during the quarter which, in line with our capital allocation framework, was used to further strengthen our balance sheet, to continue our attractive shareholder returns programme, and to reinvest back into our business.”

Endeavour’s boss said the firm remains focused on improving the quality of its portfolio through ‘attractive organic growth opportunities and optimisation initiatives’, including the recently initiated expansion of Sabodala-Massawa in Senegal and a DFS for the Lafigué project in Côte d’Ivoire, which is nearing completion.