Endeavour Reports Q1-2024 Results
ENDEAVOUR REPORTS Q1-2024
RESULTS
On track for 2024 guidance • BIOX® Expansion first gold
achieved • Lafigué dry commissioning underway
OPERATIONAL
AND FINANCIAL HIGHLIGHTS (for continuing operations unless
otherwise specified) |
-
Q1-2024 production of
219koz at an AISC of
$1,186/oz; on track to achieve
full year 2024 guidance with performance strongly weighted towards
H2-2024
|
- Adjusted
EBITDA of $213m for
Q1-2024, down
27% over
Q4-2023
|
- Adjusted
Net Earnings of $41m (or
$0.17/sh) for
Q1-2024, flat over
Q4-2023
|
- Operating
Cash Flow before changes in WC of
$137m (or
$0.56/sh) for
Q1-2024, down
44% over
Q4-2023
|
- Healthy
financial position with a net debt position of
$831m at end Q1-2024 with
$481m in cash and available
liquidity
|
ORGANIC
GROWTH |
-
Sabodala-Massawa BIOX® Expansion first gold pour
completed on 18 April 2024, in only 2 years from construction
launch, with project on budget and on schedule; expansion ramping
up to nameplate capacity in Q3-2024
|
- Lafigué
development project on budget and on schedule for first gold in
late Q2-2024 with dry commissioning underway
|
- Strong
exploration efforts with $25m
spent in Q1-2024; mineralisation extended at the Assafou
deposit
|
ATTRACTIVE
SHAREHOLDER RETURNS |
- $100m or
$0.41/sh dividend paid in Q1-2024 bringing FY-2023 dividend to
$200m, 14% above minimum commitment
|
-
$13m or
0.7 million share buybacks completed
during Q1-2024 continue to supplement shareholder
returns
|
-
Shareholder returns total
$917m since Q1-2021, equivalent
to $211 for every ounce of gold
produced over the period
|
London, 2 May 2024 – Endeavour
Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the
“Group” or the “Company”) announces its operating and financial
results for Q1-2024, with highlights provided in Table 1 below.
Table 1: Q1-2024 Highlights from
continuing
operations1
All amounts in US$ million unless otherwise specified
|
THREE MONTHS ENDED |
|
31 March
2024
|
31 December
2023
|
31 March
2023
|
Δ Q1-2024 vs.
Q4-2023
|
OPERATING
DATA |
|
|
|
|
Gold Production,
koz |
219 |
280 |
243 |
(22)% |
Gold sold,
koz |
225 |
285 |
252 |
(21)% |
All-in Sustaining
Cost2, $/oz |
1,186 |
947 |
955 |
+25% |
Realised Gold Price3, $/oz |
2,041 |
1,945 |
1,879 |
+5% |
CASH FLOW |
|
|
|
|
Operating Cash
Flow before changes in working capital |
137 |
246 |
219 |
(44)% |
Operating Cash
Flow before changes in working capital2, $/sh |
0.56 |
1.00 |
0.89 |
(44)% |
Operating Cash
Flow |
55 |
167 |
191 |
(67)% |
Operating Cash
Flow2, $/sh |
0.22 |
0.68 |
0.77 |
(68)% |
PROFITABILITY |
|
|
|
|
Net Earnings
Attributable to Shareholders |
(20) |
(160) |
(1) |
n.a. |
Net Earnings,
$/sh |
(0.08) |
(0.65) |
0.00 |
n.a. |
Adj. Net Earnings
Attributable to Shareholders2 |
41 |
42 |
65 |
(2)% |
Adj. Net
Earnings2, $/sh |
0.17 |
0.17 |
0.26 |
—% |
EBITDA2 |
156 |
70 |
169 |
+123% |
Adj.
EBITDA2 |
213 |
292 |
240 |
(27)% |
SHAREHOLDER
RETURNS2 |
|
|
|
|
Shareholder
dividends paid |
100 |
— |
100 |
n.a. |
Share
buybacks |
13 |
26 |
11 |
(50)% |
ORGANIC GROWTH |
|
|
|
|
Growth capital
spend2 |
99 |
155 |
72 |
(36)% |
Exploration
spend |
25 |
23 |
21 |
+9% |
FINANCIAL POSITION HIGHLIGHTS |
|
|
|
|
Net
Debt2 |
831 |
555 |
50 |
+50% |
Net Debt / LTM Trailing adj. EBITDA4 |
0.80x |
0.50x |
0.04x |
+60% |
1 Continuing Operations
excludes the non-core Boungou and Wahgnion mines which
were divested on 30 June 2023. 2This
is a non-GAAP measure, refer to the non-GAAP Measures section for
further details. 3Realised gold prices
are inclusive of the Sabodala-Massawa stream and the realised
gains/losses from the Group’s revenue protection programme.
4Last Twelve Months (“LTM”) Trailing EBITDA
adj includes EBITDA generated by discontinued operations.
Management will host a conference call and
webcast today, 2 May 2024, at 8:30 am EST / 1:30 pm BST. For
instructions on how to participate, please refer to the conference
call and webcast section at the end of the news release. A copy of
the Management Report and Financial Statements have been submitted
to the National Storage Mechanism and will be filed on SEDAR+. The
documents will shortly be available for inspection on the Company’s
website and at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Ian Cockerill, Chief Executive Officer,
commented: “Following my first quarter as Chief Executive
Officer at Endeavour, I am pleased that we have continued to make
progress against our strategic objectives.
Our operational performance is tracking in
line with our Group guidance, as production and costs are expected
to progressively improve throughout the year, with performance
strongly weighted towards the second half, as our two organic
growth projects ramp up, and we expect significantly stronger
performance from our Houndé mine.
We were delighted to have achieved first
gold at the Sabodala-Massawa Expansion project on 18 April, and at
our second growth project, Lafigué, we have now started dry
commissioning and are on track to deliver first gold in late Q2, a
quarter ahead of schedule. Lafigué will be the fifth growth project
that we have completed over the last 10 years, all of which have
been built on budget and on schedule in two years or less. As we
transition out of this phase of growth, we will renew our focus on
optimising our existing assets and continue developing our talented
projects team, ahead of the next phase of growth.
Exploration at the Assafou deposit on the
Tanda-Iguela property continues to demonstrate the project’s
potential to become another cornerstone asset for Endeavour. The
aggressive drilling program has further extended the mineralised
trend at the Assafou deposit by over 400 metres, while drilling at
potential satellite targets, in close proximity to Assafou, has
also yielded promising results.
During the quarter we paid our H2-2023
dividend of $100 million to shareholders and completed $13 million
worth of share buybacks. Since our first dividend payment in
Q1-2021, we have now returned $917 million to
shareholders, equivalent to $211 for every ounce
produced over the same period, demonstrating our commitment to
paying supplemental returns. We have now finished our first
shareholder returns programme, and expect to outline the next phase
of the programme early in H2.
Despite investing over $235 million in
organic growth, exploration and shareholder returns during the
quarter, our leverage remains healthy at 0.80x
net debt to adjusted EBITDA, and we are well positioned to
quickly de-lever our balance sheet and increase our commitment to
shareholder returns, to reflect our transition from a phase of
growth to one focused on cash flow generation.
We look forward to advancing our strategy
this year to further strengthen our business and benefit all our
stakeholders.”
OPERATING SUMMARY
-
Strong safety performance for the Group, with a Lost Time Injury
Frequency Rate (“LTIFR”) from continuing operations of 0.11 for the
trailing twelve months ending 31 March 2024.
-
As previously disclosed, on 28 February 2024, we were saddened to
report that a contractor colleague passed away on 27 February 2024,
as a result of injuries sustained in an incident that occurred
during maintenance activities at the Mana mine in Burkina Faso. The
health, safety and welfare of our colleagues remain our top
priority and we are focussed on improvements to contractor
management, front-line supervision and reviewing operational
procedures.
-
The Group remains on track to achieve its FY-2024 production
guidance of 1,130 – 1,270koz at an AISC within the $955 – 1,035/oz
range, with performance strongly weighted towards H2-2024, as
previously guided.
-
Q1-2024 production from continuing operations amounted to 219koz, a
decrease of 61koz over Q4-2023, due to lower production at Houndé
and Sabodala-Massawa, which was partially offset by higher
production at Ity and Mana. Production decreased at Houndé as lower
grade ore from the Kari West pit was mined and processed while
waste stripping focused on the higher-grade Kari Pump and Vindaloo
Main pits in order to access higher grade ore in H2-2024 in line
with the mine sequence. In addition, mining and processing
activities were temporarily stopped for 11-days due to the
previously disclosed sub-contractor led strike. At
Sabodala-Massawa, lower tonnage of high grade ore was sourced from
the Sabodala pit as the pit approaches the end of its economic mine
life. Production increased at Ity, in-line with the mine sequence
due to higher grade ore from the Ity pit in the mill feed, and at
Mana, as underground mining ramped up to deliver increased
underground ore tonnage to the mill.
-
Q1-2024 AISC from continuing operations amounted to $1,186/oz, an
increase of $239/oz over Q4-2023 due largely to lower volumes of
gold sold at Houndé and Sabodala-Massawa, in addition to higher
processing costs at Houndé, Sabodala-Massawa and Ity as a result of
increased power costs, a harder ore blend and commissioning costs
associated with the Recyn optimisation initiative, respectively.
The increases were partially offset by a decrease at Mana due to
higher gold volumes sold and decreased unit rates as underground
development activities continued to ramp-up.
Table 2: Group
Production
|
THREE MONTHS ENDED |
All amounts in koz, on a 100% basis |
31 March
2024 |
31 December
2023 |
31 March
2023 |
Houndé |
42 |
84 |
47 |
Ity |
86 |
74 |
91 |
Mana |
42 |
37 |
44 |
Sabodala-Massawa |
49 |
85 |
61 |
PRODUCTION FROM CONTINUING OPERATIONS |
219 |
280 |
243 |
Boungou1 |
— |
— |
19 |
Wahgnion1 |
— |
— |
39 |
GROUP PRODUCTION |
219 |
280 |
301 |
1The Boungou and Wahgnion mines were
divested on 30 June 2023.
Table 3: Group All-In Sustaining
Costs
All amounts in US$/oz
|
THREE MONTHS ENDED |
31 March
2024 |
31 December
2023 |
31 March
2023 |
Houndé |
1,572 |
901 |
1,154 |
Ity |
884 |
865 |
732 |
Mana |
1,453 |
1,482 |
1,130 |
Sabodala-Massawa |
947 |
700 |
787 |
Corporate G&A |
49 |
41 |
56 |
AISC FROM CONTINUING OPERATIONS |
1,186 |
947 |
955 |
Boungou1 |
— |
— |
1,252 |
Wahgnion1 |
— |
— |
1,354 |
GROUP AISC2 |
1,186 |
947 |
1,022 |
1The Boungou and Wahgnion mines were
divested on 30 June 2023. 2This is a
non-GAAP measure, refer to the non-GAAP Measures section for
further details
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $125.0 million, of which $29.7 million was incurred in
Q1-2024 primarily related to ongoing waste development activities
at Houndé, Sabodala-Massawa and Ity, as well as underground
development at Mana.
-
Non-sustaining capital expenditure outlook for FY-2024 remains
unchanged at $190.0 million, of which $41.3 million was incurred in
Q1-2024 primarily related to Solar Power plant construction at
Sabodala-Massawa, TSF construction and embankment raises at Houndé,
Ity and Mana, pre-stripping activities at the Walter and Bakatouo
pits and the ongoing Mineral Sizer optimisation initiative at
Ity.
-
Growth capital expenditure outlook for FY-2024 remains unchanged at
$245.0 million, of which $98.7 million was incurred in Q1-2024
primarily related to construction activities at the BIOX® expansion
project in Senegal ($39.8 million incurred in Q1-2024), the Lafigué
development project in Cote d’Ivoire ($56.7 million incurred in
Q1-2024) and additional spend related to the Kalana
project.
SHAREHOLDER RETURNS PROGRAMME
-
Endeavour implemented a dividend policy in 2021, with the goal of
supplementing its minimum dividend commitment with additional
dividends and share buybacks provided that the prevailing gold
price remained above $1,500/oz and its leverage remained below 0.5x
Net Debt / adj EBITDA.
-
Endeavour's goal is to increase its shareholder returns programme
once its organic growth projects are completed, while strengthening
its balance sheet, thereby ensuring that its efforts to unlock
growth immediately benefit all stakeholders. The updated dividend
framework for the next phase of Endeavour’s shareholder returns
policy is expected to be announced in early H2-2024.
-
As previously announced, the FY-2023 dividend amounted to $200.0
million, which represents $25.0 million or 14% more than the
minimum dividend commitment of $175.0 million for the year,
reiterating Endeavour's commitment to paying supplemental
shareholder returns. The H2-2023 dividend of $100.0 million, or
$0.41 per share, was paid on 25 March 2024 to shareholders of
record on 23 February 2024.
-
During Q1-2024, shareholder returns continued to be supplemented
with share buybacks with $12.6 million or 0.7 million shares
repurchased during the period. Since the commencement of the
buyback program, $316.1 million or 14.4 million shares have been
repurchased as at 31 March 2024.
-
Since the first shareholder returns payment in Q1-2021, the Company
has now returned $916.5 million to shareholders including $600.4
million of dividends and $316.1 million of share buybacks;
equivalent to returning $211 per ounce of gold produced from all
operations over the same period.
CASH FLOW SUMMARY
The table below presents the cash flow and net
debt position for Endeavour for the three month period ended 31
March 2024, 31 December 2023, and 31 March 2023, with accompanying
explanations below.
Table 4: Cash Flow and Net
Debt
|
|
THREE MONTHS ENDED |
All amounts in US$ million unless otherwise specified |
Notes |
31 March
2024 |
31 December
2023 |
31 March
2023 |
Net cash from/(used in), as per cash flow
statement: |
|
|
|
|
Operating cash
flows before changes in working capital1 |
|
137 |
246 |
219 |
Changes in
working capital1 |
|
(82) |
(80) |
(28) |
Cash generated from discontinued operations |
|
— |
— |
15 |
Cash generated from operating activities |
[1] |
55 |
167 |
206 |
Cash used in
investing activities |
[2] |
(188) |
(211) |
(200) |
Cash
generated/(used) in financing activities |
[3] |
88 |
(79) |
(156) |
Effect of exchange rate changes on cash |
|
(12) |
15 |
9 |
DECREASE IN CASH |
|
(56) |
(108) |
(141) |
Cash and cash equivalent position at beginning of period |
|
517 |
625 |
951 |
CASH AND CASH EQUIVALENT POSITION AT END OF
PERIOD |
[4] |
461 |
517 |
810 |
Principal amount of $500m Senior Notes |
|
500 |
500 |
500 |
Drawn portion of
Lafigué Term Loan |
|
147 |
107 |
— |
Drawn portion of
$645m Revolving Credit Facility |
|
645 |
465 |
360 |
NET DEBT2 |
[5] |
831 |
555 |
50 |
Trailing twelve month adjusted EBITDA2,3 |
|
1,034 |
1,101 |
1,173 |
Net Debt / Adjusted EBITDA (LTM)
ratio2,3 |
|
0.80x |
0.50x |
0.04x |
1 Continuing operations
excludes the Boungou and Wahgnion mines which were
divested on 30 June 2023.
2Net debt, Adjusted EBITDA, and cash flow
per share are Non-GAAP measures. Refer to the non-GAAP measure
section in this press release and in the Management
Report.
3Last Twelve Months (“LTM”) Trailing EBITDA
adj includes EBITDA generated by discontinued
operations.
NOTES:
1) Operating cash flows decreased by
$111.6 million from $166.7 million (or $0.68 per share) in Q4-2023
to $55.1 million (or $0.22 per share) in Q1-2024 due largely to
lower volumes of gold sold and higher cash costs, partially offset
by higher realised gold prices and lower taxes paid.
Operating cash flows decreased by $150.5 million
from $205.6 million (or $0.83 per share) in Q1-2023 to $55.1
million (or $0.22 per share) in Q1-2024 due to lower production,
increased operating
costs, an increased working capital outflow, and higher tax
payments, which was partially offset by the higher realised gold
price.
Notable variances are summarised below:
-
Working capital was an outflow of $82.3 million in Q1-2024, an
increase of $2.8 million over the Q4-2023 outflow of $79.5 million.
The outflow in Q1-2024 was largely driven by a trade and other
payables outflow of $34.7 million related to supplier payments
at Houndé and Ity, the timing of employee payables related to
annual bonuses and settlement of an indirect tax claim at
Sabodala-Massawa and , an outflow of inventories of $30.6 million
mainly related to a build-up of stockpiles for the BIOX® Expansion
at Sabodala-Massawa and the Lafigué project ahead of commercial
operations, an outflow in trade and other receivables of $17.8
million related to a build-up of VAT receipts across
Sabodala-Massawa, Houndé and Mana and the timing of payments for
the last gold shipment conducted during the quarter, partially
offset by a small prepaid expenses and other inflow of $0.8
million.
Working capital was an outflow of $82.3 million in Q1-2024, an
increase of $54.1 million over the Q1-2023 outflow of $28.2
million, largely driven by an increase in inventory outflows
related to a build-up of stockpiles ahead of the two project
start-ups and an increase in trade and other receivables related to
a build-up of VAT receipts across Sabodala-Massawa, Houndé and Mana
related to the timing of reimbursements.
-
Gold sales from continuing operations decreased from 285koz in
Q4-2023 to 225koz in Q1-2024 due to decreased production as FY-2024
production is weighted towards the second half of the year at
Houndé where stripping activity was prioritised in Q1-2024, and at
Sabodala-Massawa where lower tonnage of high grade ore was sourced
from the Sabodala pit in Q1-2024. The realised gold price from
continuing operations for Q1-2024 was $2,091 per ounce compared to
$2,007 per ounce for Q4-2023. Inclusive of the Group’s Revenue
Protection Programme, the realised gold price for Q1-2024 was
$2,041 per ounce compared to $1,945 per ounce for Q4-2023.
Gold sales from continuing operations decreased from 252koz in
Q1-2023 to 225koz in Q1-2024, following lower Group production in
Q1-2024. The realised gold price from continuing operations for
Q1-2024 was $2,091 per ounce compared to $1,902 per ounce for
Q1-2023. Inclusive of the Group’s Revenue Protection Programme, the
realised gold price for Q1-2024 was $2,041 per ounce compared to
$1,879 per ounce for Q1-2023.
-
Total cash cost per ounce increased from $837 per ounce in Q4-2023
to $1,007 per ounce in Q1-2024, primarily due to decreased gold
sales and higher strip ratios at Houndé and Sabodala-Massawa as
stripping activity was prioritised in Q1-2024, and increased
processing costs across the Group due to a combination of harder
ore blends and higher power costs in Burkina Faso due to the
increased reliance on self generated power during the dry season,
as contributions from hydropower to the national grid were lower
during the quarter.
Total cash cost per ounce increased from $792 per ounce in Q1-2023
to $1,007 per ounce in Q1-2024 due to decreased gold sales,
increased waste development and higher mining unit costs at Houndé
and Sabodala-Massawa and higher processing unit costs across the
Group.
- As shown in the table below, income
taxes paid decreased by $19.6 million from $70.9 million in Q4-2023
to $51.3 million in Q1-2024 due to significantly less withholding
taxes associated with the upstreaming of cash during Q1-2024, no
taxes paid at Ity as the first provisional payment of the year is
payable in Q2-2024 and lower taxes paid at Houndé and Mana largely
due to the timing of payments, which was partially offset by an
increase in taxes paid at Sabodala as the first provisional income
tax payment of the year was payable in Q1-2024.
Income taxes paid increased by $26.9 million from $24.4 million in
Q1-2023 to $51.3 million in Q1-2024 due largely to the increase in
taxes paid at Sabodala-Massawa as provisional tax payments in the
quarter were based on the FY-2023 tax base, which considers higher
taxable earnings as FY-2022 benefited from a tax holiday on the
Massawa licenses.
Table 5: Tax Payments from continuing
operations
|
THREE MONTHS ENDED |
All amounts in US$ million |
31 March
2024 |
31 December
2023 |
31 March
2023 |
Houndé |
11.0 |
16.5 |
10.9 |
Ity |
— |
18.6 |
1.3 |
Mana |
3.9 |
5.5 |
3.0 |
Sabodala-Massawa |
30.6 |
— |
5.6 |
Other1 |
5.8 |
30.3 |
3.6 |
Taxes paid by continuing operations |
51.3 |
70.9 |
24.4 |
1Included in the “Other” category
is income and withholding taxes paid by Corporate and Exploration
entities.
2) Cashflows used in investing
activities decreased by $23.5 million from $211.0 million in
Q4-2023 to $187.5 million in Q1-2024 due to a decrease in growth
capital spend as the two growth projects advance towards
completion, and a decrease in non-sustaining capital due to reduced
pre-stripping activities, partially offset by an increase in
sustaining capital due to increased stripping activities at Houndé
and Sabodala-Massawa.
Cashflows used in investing activities decreased
by $12.8 million from $200.3 million in Q1-2023 to $187.5 million
in Q1-2024 largely due to a decrease in non-sustaining capital
spend across the group related to reduced pre-stripping activities,
reduced underground development at Mana and reduced spending on
optimisation initiatives.
-
Sustaining capital from continuing operations increased from $20.0
million in Q4-2023 to $29.7 million in Q1-2024, largely due to
increased sustaining capital expenditure at Houndé (increased waste
stripping activities across the Kari Pump and Vindaloo Main pits)
and Sabodala-Massawa (increased waste stripping), partially offset
by decreased sustaining capital expenditure at Mana (lower
proportion of underground waste development being capitalised
during the quarter) while sustaining capital spends at Ity were
relatively stable.
Sustaining capital from continuing operations increased slightly
from $27.7 million in Q4-2023 to $29.7 million in Q1-2024 as higher
sustaining capital expenditure at Houndé was largely offset by
lower sustaining capital expenditure at Sabodala-Massawa related to
reduced waste stripping activities.
-
Non-sustaining capital from continuing operations decreased from
$52.5 million in Q4-2023 to $41.3 million in Q1-2024, largely due
to a decrease in non-sustaining capital at Sabodala-Massawa
(reduced infrastructure and pre-stripping of the Niakafiri East and
Sofia North Extension pits), at Ity (reduced cutback activities at
the Walter pit) and at Houndé (reduced pre-stripping activities in
the Kari Pump pit) partially offset by increased non-sustaining
capital at Mana (increased development of the underground).
Non-sustaining capital from continuing operations decreased from
$83.9 million in Q1-2023 to $41.3 million in Q1-2024 due to
decreased non-sustaining capital expenditure at Ity (reduced Recyn
costs, TSF costs, and Le Plaque pre-stripping costs), at
Sabodala-Massawa (reduced pre-stripping), at Houndé (reduced
pre-stripping activities at Kari Pump), and at Mana (reduced
underground waste development as development advanced into
ore).
-
Growth capital decreased from $155.0 million in Q4-2023 to $98.7
million in Q1-2024, as cash outflows associated with the BIOX® and
Lafigué growth projects decreased as construction activities
approached completion. Growth capital expenditure during the
quarter also included $2.2 million for work related to the Kalana
project.
Growth capital increased from $72.2 million in Q1-2023 to $98.7
million in Q1-2024 due to the timing of construction activities at
the Sabodala-Massawa expansion, which was launched in Q2-2022, and
the Lafigué development project, which was launched in
Q4-2022.
3) Cash flows generated from
financing activities increased by $166.7 million from an outflow of
$79.0 million in Q4-2023 to an inflow of $87.7 million in Q1-2024
largely due to the drawdown on debt facilities, partially offset by
the timing of dividend payments to shareholders. Financing cash
inflows in Q1-2024 included $219.3 million in proceeds from
long-term debt including $180.0 million drawn on the Company’s
Revolving credit Facility (total amount of $645.0 million drawn as
at Q1-2024) and $39.3 million drawn on the Lafigué Term loan (total
amount of $146.5 million drawn as at Q1-2024) partially offset by
financing cash outflows which included the payment of the H2-2023
dividend to shareholders of $100.0 million, acquisition of the
Company’s own shares through its share buyback programme of $16.8
million, payment of finance and lease obligations of $5.7 million,
payment of dividends to minorities of $4.9 million, payments of
financing and other fees of $4.0 million, and payments for the
settlement of tracker shares of $0.2 million.
Cash flows generated from financing activities
increased by $243.4 million from an outflow of $155.7 million in
Q1-2023 to an inflow of $87.7 million in Q1-2024 largely due to the
draw down on the company’s long-term debt facilities during the
current period.
4) At quarter end, Endeavour’s
liquidity remained strong at $481.5 million, consisting of $461.0
million of cash and cash equivalents and $20.5 million available
through the Lafigué Term Loan.
5) Endeavour’s net debt position has
increased by $275.5 million, from $555.0 million at the end of
Q4-2023 to $830.5 million at the end of Q1-2024 due to the
Company’s ongoing investments in its organic growth projects,
exploration and the timing of dividend payments. The Company’s net
debt / Adjusted EBITDA (LTM) leverage ratio remains healthy, albeit
above its long-term target of 0.50x, at 0.80x at the end of
Q1-2024. Following the completion of the current growth phase, the
Company’s leverage is expected to return to levels below the
long-term target.
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and
adjusted earnings for Endeavour for the three month periods ended
31 March 2024, 31 December 2023, and 31 March 2023, with
accompanying explanations below.
Table 6: Earnings from Continuing
Operations
|
|
THREE MONTHS ENDED |
All amounts in US$ million unless otherwise specified |
Notes |
31 March
2024 |
31 December
2023 |
31 March
2023 |
Revenue |
[6] |
473 |
579 |
481 |
Operating
expenses |
[7] |
(200) |
(209) |
(171) |
Depreciation and
depletion |
[7] |
(109) |
(133) |
(102) |
Royalties |
[8] |
(34) |
(40) |
(30) |
Earnings from mine operations |
|
130 |
198 |
178 |
Corporate costs |
[9] |
(11) |
(11) |
(14) |
Impairment of
mining interests and goodwill |
|
— |
(108) |
— |
Share-based
compensation |
|
(4) |
(7) |
(8) |
Other
expense |
[10] |
(17) |
(45) |
(5) |
Exploration costs |
[11] |
(5) |
(6) |
(13) |
Earnings from operations |
|
94 |
21 |
139 |
Loss on financial instruments |
[12] |
(46) |
(84) |
(72) |
Finance
costs |
|
(23) |
(19) |
(15) |
Earnings before taxes |
|
24 |
(82) |
52 |
Current income tax expense |
[13] |
(41) |
(75) |
(48) |
Deferred income
tax (expense)/recovery |
|
7 |
10 |
12 |
Net comprehensive earnings from continuing
operations |
[14] |
(9) |
(148) |
15 |
Add-back adjustments |
[15] |
66 |
205 |
66 |
Adjusted net earnings from continuing
operations |
|
57 |
57 |
82 |
Portion attributable to non-controlling interests |
|
16 |
15 |
17 |
Adjusted net earnings from continuing operations
attributable to shareholders of the Company |
[16] |
41 |
42 |
65 |
Adjusted net earnings per share from continuing
operations |
|
0.17 |
0.17 |
0.26 |
NOTES:
6) Revenue decreased by $106.6
million from $579.3 million in Q4-2023 to $472.7 million in Q1-2024
due to a decrease in gold sales from continuing operations as
production decreased at Houndé and Sabodala-Massawa, which was
partially offset by an $84 per ounce increase in the realised gold
price from $2,007 per ounce in Q4-2023 to $2,091 per ounce in
Q1-2024, exclusive of the Company’s Revenue Protection
Programme.
Revenue decreased by $8.5 million from $481.2
million in Q1-2023 to $472.7 million in Q1-2024 due to a decrease
in gold sales from continuing operations, partly offset by a higher
realised gold price for Q1-2024 of $2,091 per ounce compared to
$1,902 per ounce for Q1-2023, exclusive of the Company’s Revenue
Protection Programme.
7) Operating expenses decreased by
$8.8 million from $208.7 million in Q4-2023 to
$199.9 million in Q1-2024 largely due to lower production
volumes at Houndé and Sabodala-Massawa, which was partially offset
by higher processing costs at Ity (increased throughput) and Mana
(increased throughput and self-generated power costs). Depreciation
and depletion decreased by $23.9 million from
$132.6 million in Q4-2023 to $108.7 million in Q1-2024 mainly
due to lower production at Houndé and Sabodala-Massawa.
Operating expenses increased by
$28.5 million from $171.4 million in Q1-2023 to
$199.9 million in Q1-2024 largely due to increased strip
ratios at Sabodala-Massawa and Houndé, increased underground mining
costs at Mana driven by higher volumes and increased processing
costs at Houndé and Mana due to increased use of self generated
power. Depreciation and depletion increased by $6.8 million
from $101.9 million in Q1-2023 to $108.7 million in
Q1-2024 due to higher depreciable costs at Mana which now has a
higher capitalised cost base and at Sabodala-Massawa which has a
lower depletable reserves base in Q1-2024 following the FY-2023
reserves and resource update.
8) Royalties decreased by
$6.4 million from $40.3 million in Q4-2023 to
$33.9 million in Q1-2024 due to lower production volumes
compared to the prior quarter, partially offset by a higher
realised gold price.
Royalties increased by $4.2 million from
$29.7 million in Q1-2023 to $33.9 million in Q1-2024 due
to a full quarter under the the royalty rate structure in Burkina
Faso, partially offset by lower production volumes.
9) Corporate costs decreased from
$11.1 million in Q4-2023 to $10.5 million in Q1-2024 due to lower
professional service costs.
Corporate costs decreased from
$13.5 million in Q1-2023 to $10.5 million in Q1-2024 due
to lower professional service costs.
10) Other expenses decreased from
$45.1 million in Q4-20233 to $16.6 million in Q1-2024.
For Q1-2024, other expenses included $8.1 million in tax
claims related to Sabodala-Massawa and a temporary voluntary tax
payment of 2% of profits before tax and interest from the Houndé
and Mana mines, $6.3 million in costs related to the
investigation into the former Chief Executive Officer’s misconduct,
$5.9 million in legal and other costs primarily related to the
ongoing arbitration process around the non-core asset disposals,
$0.7 million in restructuring costs, $0.5 million in
community contributions and $0.2 million in disturbance cost,
partially offset by a $4.5 million gain on the disposal of the
Afema asset and a $0.6 million revaluation of receivables.
11) Exploration costs of
$5.4 million in Q1-2024 were largely consistent with the prior
quarter.
Exploration costs decreased from
$12.5 million in Q1-2023 to $5.4 million in Q1-2024
largely due to a decrease in expensed exploration at the
Tanda-Iguela property, following the commencement of the
pre-feasiblity study.
12) The loss on financial instruments
decreased from a loss of $84.3 million in Q4-2023 to a loss of
$46.2 million in Q1-2024 largely due to a decrease in unrealised
losses on gold collars and forwards. The loss on financial
instruments during the quarter included unrealised losses on gold
collars and forward sales of $22.8 million, realised losses on gold
collars and forward contracts of $11.4 million including $5.9
million related to the Group’s Revenue Protection Programme and
$5.5 million related to the Group’s London Bullion Market
Association (“LBMA”) gold price averaging strategy, unrealised
foreign exchange losses of $11.2 million, unrealised losses on Net
Smelter Royalties (“NSRs”) and deferred compensation related to
asset sales of $1.1 million, and unrealised losses on foreign
currency contracts of $0.8 million, which was partially offset by
an unrealised gain on the early redemption feature of senior notes
of $0.6 million, an unrealised gain on marketable securities of
$0.3 million, and realised gains on foreign currency contracts of
$0.2 million.
The loss on financial instruments decreased from
a loss of $72.0 million in Q1-2023 to a loss of $46.2 million in
Q1-2024, due largely to mark-to-market adjustments in relation to
gold hedges and exchange rate movements between the Euro and the US
dollar.
As previously disclosed, in order to increase
cash flow visibility during its construction and de-leveraging
phases, Endeavour entered into a Revenue Protection Programme,
using a combination of zero premium gold collars and forward sales
contracts, to cover a portion of its 2023, 2024 and 2025
production.
-
During Q1-2024, 35koz were settled into forward sales contracts for
an average gold price of $2,024/oz. For the remainder of FY-2024,
approximately 339koz (approximately 113koz per quarter) are
expected to be delivered into a collar with an average call price
of $2,400/oz and an average put price of $1,807/oz. In addition,
approximately 35koz are scheduled to be settled during Q2-2024 in
forward sales contracts at an average gold price of $2,041/oz.
-
For FY-2025, approximately 200koz are expected to be delivered into
a collar with an average call price of $2,400/oz and an average put
price of $1,992/oz.
As previously disclosed, Endeavour
entered into a Growth Capital Protection Programme designed to
enhance cost certainty for a portion of its growth capital
expenditure at the BIOX® Expansion and Lafigué growth projects. The
Group had entered into various foreign exchange forward contracts
across both the Euro and the Australian Dollar over 2023 and
2024.
-
During Q1-2024, €7.5 million was delivered into forward contracts
at a blended rate of 1.04 EUR:USD and AU$3.3 million was delivered
into forward contracts at a blended rate of 0.69 AUD:USD.
-
The total outstanding notional forward contracted quantum is
approximately €5.5 million at a blended rate of 1.04 EUR:USD over
2024 and approximately AU$2.4 million at a blended rate of 0.69
AUD:USD.
Subsequent to the end of Q1-2024, on
26 April 2024 the Company entered into two separate gold prepayment
agreements for a total consideration of $150.0 million in exchange
for the delivery of approximately 76koz in Q4-2024. The gold
prepayments secure $150.0 million of financing for a low cost of
capital of approximately 5.3%, and support the Company’s offshore
cash position during its peak investment phase. The prepayments are
structured as follows:
-
A $100.0 million agreement with the Bank of Montreal based on a
floating arrangement for the delivery of approximately 54koz in
reference to prevailing spot prices for the settlement of $105.1
million (inclusive of $5.1 million in financing costs) in Q4-2024,
with the value of the 54koz above the contracted $105.1 million
reimbursement at the time of delivery returned to Endeavour as
cash.
-
A $50.0 million agreement with ING Bank N.V. is based on a fixed
arrangement for the delivery of ounces of approximately 22koz for
the settlement of $50.0 million in Q4-2024. To mitigate the Group’s
exposure to gold price associated with the delivery of ounces under
the fixed arrangement prepayment agreement, Endeavour has entered
into forward purchase contracts for 22koz at an average gold price
of $2,408/oz due in Q4-2024 to lock in a finance cost of
approximately $3.0 million.
13) Current income tax expense
decreased by $34.3 million from $74.8 million in Q4-2023 to $40.5
million in Q1-2024 largely due to a decrease in recognised
withholding tax expenses, which decreased by $25.6 million from
$30.1 million in Q4-2023 to $4.5 million in Q1-2024 due to the
timing of local board approvals for cash upstreaming in addition to
a decrease in taxes due to lower earnings from mine operations.
Current income tax expense decreased by $7.7
million from $48.2 million in Q1-2023 to $40.5 million in Q1-2024
largely due to lower taxable earnings in Q1-2024 compared to
Q1-2023.
14) Net comprehensive losses from
continuing operations decreased by $138.2 million from a net
comprehensive loss of $147.5 million in Q4-2023 to a net
comprehensive loss of $9.3 million in Q1-2024. The decrease in
losses is largely driven by the prior period recognising impairment
charges related to exploration properties with no work planned and
the Kalana project, lower other expenses as the prior period
included an expected credit loss charge related to proceeds from
asset disposals, lower income tax expenses and lower losses on
financial instruments partially offset by lower operating margins
due to lower production at higher unit operating expenses and
higher unit royalty rates.
Net comprehensive earnings from continuing
operations decreased by $24.7 million from net comprehensive
earnings of $15.4 million in Q1-2023 to a net comprehensive loss of
$9.3 million in Q1-2024. The decrease in earnings was largely
driven by lower earnings from mine operations due to lower
production, higher operating expenses, higher depreciation and
higher royalties in addition to higher finance costs due to
increased interest expenses reflecting higher borrowings.
15) For Q1-2024, adjustments included
an unrealised loss on financial instruments of $34.8 million
largely related to the unrealised loss on forward sales and
collars, other expenses of $16.6 million largely related to costs
associated with the CEO investigation, partially offset by a $4.5
million realised gain on the sale of the Afema property, and a loss
on non-cash, tax and other adjustments of $14.6 million that mainly
relate to the impact of foreign exchange remeasurements of deferred
tax balances.
16) Adjusted net earnings
attributable to shareholders for continuing operations increased by
$1.3 million from $42.0 million (or $0.17 per share) in Q4-2023 to
$40.7 million (or $0.17 per share) in Q1-2024, due to lower
operating margins following lower gold volumes sold at higher unit
operating expenses.
Adjusted net earnings attributable to
shareholders for continuing operations decreased by $24.2 million
from $64.9 million (or $0.26 per share) in Q1-2023 to $40.7 million
(or $0.17 per share) in Q1-2024 due to lower operating margins,
higher interest expenses, higher realised losses on gold forward
sales and higher royalties.
NON-CORE ASSET DIVESTMENT
-
On 30 June 2023, Endeavour closed the divestment of its 90%
interests in its non-core Boungou and Wahgnion mines in Burkina
Faso to Lilium Mining ("Lilium"), a subsidiary of Lilium Capital
which is an African and frontier markets focused strategic
investment vehicle led by West African entrepreneurs.
-
The total consideration is comprised of:
-
$130.0 million in the form of a reimbursement of historical
shareholder loans, of which a total of $33.0 million has been
received to date. The remaining $97.0 million is outstanding.
-
$25.0 million in deferred cash consideration payable in two
instalments of $10.0 million, which became payable in Q1-2024 and
has not been received, and $15.0 million, which will become payable
in Q2-2024.
-
A deferred cash consideration comprised of 50% of the net free
cashflow generated by the Boungou mine until $55.0 million has been
paid. No payments have thus far been received for this deferred
cash consideration as Lilium has not had any commercial production
from Boungou since their acquisition given their election to place
the mine on care and maintenance due to supply chain and security
challenges.
-
An NSR on Wahgnion commencing at closing of the transaction for
4.0% of gold sold, of which a total of approximately $2.6 million
has been received as at 31 December 2023.
-
An NSR on Boungou commencing at closing of the transaction for 4.0%
of gold sold, of which a total of approximately $0.5 million has
been received as at 31 December 2023.
-
As previously disclosed, owing to the significant delay in receipt
of payment for the overdue proceeds of the total consideration,
Endeavour has filed certain claims against Lilium and its financial
institutions as detailed below:
-
Endeavour Canada Holdings Corporation (“ECH”) and Endeavour Gold
Corporation (“EGC”), wholly owned subsidiaries of the Company, have
certain claims (“Claims”) under the terms of (i) a sale and
purchase agreement between ECH and Lilium Gold (“LG”) and Lilium
Holdings Ltd (“LH”, together with LG, “Lilium”) (the “SPA”)
relating to the non-core asset divestment; and (ii) two stand-by
letters of credit between related financial institutions in Burkina
Faso (the “Financial Institutions”) and each of EGC and ECH (the
“SBLCs”), which were established to reimburse historical
shareholder loans to the Endeavour group.
- The SPA Claim
concerns the failure of Lilium to fulfil certain payment
obligations under the SPA in relation to the shareholder loans as
well as deferred consideration. The SBLC Claim concerns the failure
of the Financial Institutions to honour their parallel payment
obligations in relation to the shareholder loans under the SBLCs.
The Company has filed for arbitration proceedings against both
Lilium (with the London Court of International Arbitration in
London) and the Financial Institutions (with the International
Chamber of Commerce in Paris) on 1 March, 2024 and 29 February,
2024, respectively. Claims against Lilium are approximately $125.0
million, and claims against the Financial Institutions are
approximately $99.0 million (in each case excluding interests and
costs).
OPERATING ACTIVITIES BY
MINE
Houndé Gold Mine, Burkina
Faso
Table 7: Houndé Performance
Indicators
For The Period Ended |
Q1-2024 |
Q4-2023 |
Q1-2023 |
Tonnes ore mined, kt |
724 |
1,499 |
1,233 |
Total tonnes
mined, kt |
11,097 |
11,993 |
13,247 |
Strip ratio
(incl. waste cap) |
14.33 |
7.00 |
9.74 |
Tonnes milled,
kt |
1,082 |
1,360 |
1,370 |
Grade, g/t |
1.35 |
2.15 |
1.18 |
Recovery rate,
% |
89 |
90 |
93 |
Production, koz |
42 |
84 |
47 |
Total cash cost/oz |
1,120 |
837 |
945 |
AISC/oz |
1,572 |
901 |
1,154 |
Q1-2024 vs
Q4-2023 Insights
-
Production decreased from 84koz in Q4-2023 to 42koz in Q1-2024 due
to lower average grades milled and lower tonnes milled, as well as
the impact of the 11-day stoppage to mining and processing
activities due to the previosuly disclosed sub-contractor led
strike.
-
Total tonnes mined and tonnes of ore mined decreased due largely to
the previously disclosed 11-day strike which impacted mining and
processing activities from 23 January 2024. Tonnes of ore mined
also decreased as waste stripping was prioritised in the Kari Pump
and Vindaloo Main pits in line with the mine sequence, with the
Kari West pit providing the principal source of ore during the
quarter.
-
Tonnes milled decreased due to lower utilisation due to the strike,
as well as planned maintenance downtime.
-
Average processed grades decreased due to a higher proportion of
lower grade ore sourced from the Kari West pit in the mill
feed.
-
Recovery rates remained largely consistent with the prior quarter
despite changes in the ore blend.
-
AISC increased from $901/oz in Q4-2023 to $1,572/oz in Q1-2024 due
to the lower volume of gold sold following lower quarterly
production, a higher strip ratio as mining focused on waste
stripping during the quarter, and increased mining and processing
unit costs that were impacted by the strike.
-
Sustaining capital expenditure amounted to $19.4 million in Q1-2024
and related primarily to ongoing waste development across the Kari
Pump, Kari West and Vindaloo Main pits as well as plant equipment
upgrades and heavy mining equipment maintenance.
-
Non-sustaining capital expenditure amounted to $2.0 million in
Q1-2024 and primarily related to the ongoing TSF Stage 8 and 9
raise.
Q1-2024 vs Q1-2023 Insights
-
Production decreased slightly from 47koz in Q1-2023 to 42koz in
Q1-2024 primarily due to lower tonnes milled as a result of the
mining and processing stoppage related to the strike, which was
partially offset by higher processed grades due to relatively
higher grade ore sourced from the Kari West pit compared to
Q1-2023.
-
AISC increased from $1,154/oz in Q1-2023 to $1,572/oz in Q1-2024
due to the lower volume of gold sold, higher strip ratio as
stripping activity was prioritised in Kari Pump and Vindaloo Main,
higher processing unit costs due to the increased use of higher
cost self-generated power as the dry season impacted the
contributions of hydropower to the national grid, as well as
increased sustaining capital due to increased waste development
activities at the Kari Pump pit.
FY-2024
Outlook
- Houndé is on track
to achieve its FY-2024 production guidance of 260koz - 290koz at an
AISC of between $1,000/oz - $1,100/oz. As previously guided,
production is expected to be H2-2024 weighted with AISC improving
as greater volumes of higher grade ore are expected to be mined in
H2-2024.
-
In Q2-2024, ore is expected to continue to be mainly sourced from
the Kari West pit while stripping activities focus on the Kari Pump
and Vindaloo Main pits. In H2-2024, once the current phase of
stripping is completed, increased volumes of higher grade ore are
expected to be mined from the Kari Pump and Vindaloo Main pits
increasing average grades processed through the year.
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $40.0 million, of which $19.4 million has
been incurred in Q1-2024, and is mainly related to waste stripping
activity, fleet re-builds and plant equipment upgrades.
- Non-sustaining
capital expenditure outlook for FY-2024 remains unchanged at
approximately $20.0 million, of which $2.0 million has
been incurred in Q1-2024, and is mainly related to the ongoing TSF
Stage 8 and 9 raise.
Ity Gold Mine, Côte
d’Ivoire
Table 8: Ity Performance
Indicators
For The Period Ended |
Q1-2024 |
Q4-2023 |
Q1-2023 |
Tonnes ore mined, kt |
1,825 |
1,721 |
1,936 |
Total tonnes
mined, kt |
7,406 |
7,349 |
7,366 |
Strip ratio
(incl. waste cap) |
3.06 |
3.27 |
2.80 |
Tonnes milled,
kt |
1,775 |
1,593 |
1,819 |
Grade, g/t |
1.68 |
1.63 |
1.68 |
Recovery rate,
% |
90 |
91 |
93 |
Production, koz |
86 |
74 |
91 |
Total cash cost/oz |
858 |
829 |
712 |
AISC/oz |
884 |
865 |
732 |
Q1-2024 vs Q4-2023
Insights
-
Production increased from 74koz in Q4-2023 to 86koz in Q1-2024 due
to higher tonnes of ore milled and a slightly higher average grade
processed, partially offset by a slight decrease in recovery rates.
-
Total tonnes mined increased slightly due to higher contractor
fleet availability. Mining activity focused on the Ity, Walter,
Bakatouo, Verse Ouest and Le Plaque pits with supplemental
contributions from the Daapleu pit and stockpiles. Ore tonnes mined
increased due to a slight decrease in strip ratio and a lower
proportion of waste mined across the complex in line with the mine
sequence.
-
Tonnes milled increased due to a higher proportion of softer oxide
ore sourced from the Ity and Bakatouo pits in the mill feed.
-
Average processed grades increased slightly due to an increased
proportion of high grade ore from the Ity pit in the mill feed,
partially offset by lower grade ore sourced from the Daapleu
pit.
-
Recovery rates decreased slightly due to an increase in ore from
the Daapleu pit in the ore blend, which has slightly lower
associated recoveries.
-
AISC increased slightly from $865/oz in Q4-2023 to $884/oz in
Q1-2024 due to an increase in processing unit costs driven by costs
associated with the commissioning of the Recyn circuit, which is
expected to reduce cyanide consumption, once fully
commissioned.
-
Sustaining capital expenditure amounted to $2.3 million in
Q1-2024 and primarily related to waste stripping at the Bakatouo
and Walter pits and dewatering borehole drilling.
-
Non-sustaining capital expenditure amounted to $16.2 million
in Q1-2024 and primarily related to the ongoing TSF 2 construction
and development of the Mineral Sizer.
Q1-2024 vs Q1-2023 Insights
-
Production decreased from 91koz in Q1-2023 to 86koz in Q1-2024 due
to lower tonnes milled following planned maintenance activities and
due to the inclusion of ore from the Daapleu pits which has lower
associated recoveries.
-
AISC increased from $732/oz in Q1-2023 to $884 per ounce in Q1-2024
due to an increase in processing unit costs driven by costs
associated with the commissioning of the Recyn circuit, increased
mining unit costs due to a higher proportion of ore sourced from
the Le Plaque pit which has a longer haulage distance and a
decrease in gold volumes sold.
FY-2024
Outlook
-
Ity is on track to achieve its FY-2024 production guidance of
270koz - 300koz at an AISC of between $850/oz - $925/oz. As
previously guided, production is expected to be H1-2024 weighted,
in line with the mine plan, due to greater availability of high
grade ore from the Ity and Bakatouo pits in H1-2024 and the impact
of the wet season in H2-2024 on mining and processing volumes.
-
In Q2-2024, ore is expected to be sourced from the Le Plaque,
Walter, Bakatouo and Ity pits with supplemental ore sourced from
the Verse Ouest stockpiles. Mining, throughput rates and recoveries
are expected to remain consistent with Q1-2024, while grades are
expected to decrease, as previously guided, due to sequentially
reduced proportions of high grade ore from the Ity and Bakatouo
pits, through the remainder of the year.
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $10.0 million, of which $2.3 million has
been incurred in Q1-2024, and is mainly related to waste-stripping,
plant equipment upgrades and dewatering borehole drilling.
- Non-sustaining
capital expenditure outlook for FY-2024 remains unchanged at
$45.0 million, of which $16.2 million has been incurred
in Q1-2024, and is mainly related to pre-stripping activities, TSF
2 earthworks and site infrastructure, in addition to the ongoing
Mineral Sizer Primary Crusher optimisation initiative.
Mana Gold Mine, Burkina
Faso
Table 9: Mana Performance
Indicators
For The Period Ended |
Q1-2024 |
Q4-2023 |
Q1-2023 |
OP tonnes ore mined, kt |
119 |
169 |
423 |
OP total tonnes
mined, kt |
711 |
805 |
1,783 |
OP strip ratio
(incl. waste cap) |
4.97 |
3.77 |
3.22 |
UG tonnes ore
mined, kt |
446 |
432 |
253 |
Tonnes milled,
kt |
621 |
515 |
614 |
Grade, g/t |
2.31 |
2.59 |
2.34 |
Recovery rate,
% |
88 |
89 |
94 |
Production, koz |
42 |
37 |
44 |
Total cash cost/oz |
1,345 |
1,207 |
1,046 |
AISC/oz |
1,453 |
1,482 |
1,130 |
Q1-2024 vs Q4-2023
Insights
-
Production increased from 37koz in Q4-2023 to 42koz in Q1-2024 due
to higher tonnes milled, which was partially offset by lower
average grades processed.
-
Total open pit tonnes mined decreased as mining rates at the Maoula
open pit decreased as the pit approaches the end of its economic
mine life, which is expected in Q2-2024.
-
Total underground tonnes of ore mined increased as stoping
production remained stable while ore development rates accelerated
at the Wona and Siou Underground deposits. Underground development
consisted of a total 3,169 metres completed across both Siou and
Wona compared to 3,059 metres completed in the prior quarter.
-
Tonnes milled increased due to higher plant utilisation as there
was less scheduled plant maintenance downtime in the quarter.
-
Average grades processed decreased due to lower grade ore sourced
from the final stages of the Maoula open pit as well as lower grade
stope production from the Wona underground deposit in line with the
mine sequence.
-
Recovery rates were consistent with the prior quarter.
-
AISC slightly decreased from $1,482/oz in Q4-2023 to $1,453/oz in
Q1-2024 due to higher gold volumes sold, decreased mining and
processing unit costs as underground development activities
continued to ramp-up in the Wona Underground deposit and decreased
sustaining capital due to lower capitalised underground
development, which was partially offset by a reduction in
by-product revenues following the sale of carbon fines in the prior
quarter.
-
Sustaining capital expenditure amounted to $4.6 million in
Q1-2024 and primarily related to capitalised underground
development at Siou and plant improvements.
-
Non-sustaining capital expenditure amounted to $14.1 million
in Q1-2024 and primarily related to capitalised underground
development at Wona, underground infrastructure and the stage 5 TSF
embankment raise.
Q1-2024 vs Q1-2023 Insights
-
Production decreased from 44koz in Q1-2023 to 42koz in Q1-2024
largely due to lower recoveries as the higher proportion of
underground ore sourced from the Wona underground deposit in the
mill feed has slightly lower associated recoveries compared to ore
sourced from the Maoula open pit, which it displaced.
-
AISC increased from $1,130/oz in Q1-2023 to $1,453/oz in Q1-2024
due to increased underground mining activities as a proportion of
total mining activities, increased processing unit costs due to
higher self-generated power costs, increased sustaining capital
following higher development rates and lower volumes of gold
sold.
FY-2024 Outlook
-
Mana is on track to achieve its FY-2024 production guidance of
150koz - 170koz at an AISC of between $1,200 - $1,300/oz. As
previously guided, production is expected to be H2-2024 weighted as
stoping rates at the Wona underground are expected to continue to
ramp-up sequentially through the year.
-
In Q2-2024, production is expected to decrease slightly as lower
grade stope production is expected, in-line with the mine sequence.
Underground development rates are expected to continue to increase,
enabling access to more stopes from the Wona underground deposit in
H2-2024, supplemented by consistent stope production from the Siou
underground deposit. The proportion of ore sourced from the Maoula
open pit is expected to decrease considerably as the pit reaches
the end of its mine life during Q2-2024.
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $15.0 million, of which $4.6 million has
been incurred in Q1-2024, and is primarily related to capitalised
underground development activities at the Wona underground
deposit.
- Non-Sustaining
capital expenditure outlook for FY-2024 remains unchanged at
$30.0 million, of which $14.1 million has been incurred
in Q1-2024, and is related primarily to underground development,
underground infrastructure and the stage 5 TSF embankment
raise.
Sabodala-Massawa Gold Mine,
Senegal
Table 10: Sabodala-Massawa
Performance Indicators
For The Period Ended |
Q1-2024 |
Q4-2023 |
Q1-2023 |
Tonnes ore mined, kt |
1,346 |
1,884 |
1,235 |
Total tonnes
mined, kt |
10,447 |
11,319 |
11,207 |
Strip ratio
(incl. waste cap) |
6.76 |
5.01 |
8.08 |
Tonnes milled,
kt |
1,180 |
1,255 |
1,124 |
Grade, g/t |
1.63 |
2.31 |
2.04 |
Recovery rate,
% |
83 |
89 |
87 |
Production, koz |
49 |
85 |
61 |
Total cash cost/oz |
890 |
686 |
619 |
AISC/oz |
947 |
700 |
787 |
Q1-2024 vs Q4-2023
Insights
-
Production decreased from 85koz in Q4-2023 to 49koz in Q1-2024 due
to lower average grades processed, lower tonnes milled and
decreased recovery rates.
-
Total tonnes mined and tonnes of ore mined decreased due to lower
availability of the mining fleet due to maintenance activities
during the quarter. Tonnes of ore mined decreased as lower tonnage
of ore was extracted from the Sabodala pit as mining rates
decreased with the deeper elevations in the pit as it enters the
final phase of mining, ahead of potential in-pit tailings
deposition which is expected to start in 2025. Ore mining
activities continued at the Niakafiri East, Sofia North extension
and Massawa Central Zone pits.
-
Tonnes milled decreased as the ore blend contained increased
proportions of harder fresh ore from the Sabodala pit and
stockpiles, which decreased throughput rates.
-
Average processed grades decreased due to lower volumes of high
grade ore mined from the Sabodala pit in the mill feed, as well as
lower grade oxide ores sourced from the Niakafiri East and Sofia
North Extension pits, in-line with mine sequencing.
-
Recovery rates decreased due to the impact of transitional ore from
the Massawa pits, a lower proportion of fresh ore from the Sabodala
and Niakafiri East pits and an increased proportion of supplemental
stockpiles in the mill feed, which have lower associated
recoveries.
-
AISC increased from $700/oz in Q4-2023 to $947/oz in Q1-2024 due to
lower volumes of gold sold, slightly increased mining, processing
and G&A costs and increased sustaining capital due to heavy
mining equipment upgrades.
-
Sustaining capital expenditure amounted to $2.9 million in
Q1-2024 and primarily related to waste capitalisation and mining
equipment rebuilds.
-
Non-sustaining capital expenditure amounted to $8.1 million in
Q1-2024, of which, $6.8 million was related to the construction of
the solar power plant and the remainder was related to grade
control drilling at the Kiesta deposit, purchases of drill rigs and
waste development activities.
Q1-2024 vs Q1-2023 Insights
-
Production decreased from 61koz in Q1-2023 to 49koz in Q1-2024 due
to lower average grades milled as a result of increased volumes of
lower-grade ore from the Sabodala, Niakafiri East and Sofia North
extension pits in the mill feed, as well as reduced recoveries
following the introduction of a higher proportion of transitional
ore from the Massawa North Zone pits into the mill feed, which was
partially offset by a slight increase in tonnes milled.
-
AISC increased from $787/oz in Q1-2023 to $947/oz in Q1-2024 due to
lower volumes of gold sales and an increase in mining unit costs
due to increased waste haulage distances, increased heavy mining
equipment maintenance costs and increased processing unit costs due
to a higher proportion of harder fresh ore in the mill feed, which
was partially offset by lower sustaining capital.
FY-2024 Outlook
-
Sabodala-Massawa is on track to achieve its FY-2024 production
guidance of 360koz - 400koz at an AISC between $750 - $850/oz. As
previously guided, production is expected to be H2-2024 weighted
following the ramp-up of the BIOX® expansion project through
H2-2024.
-
In Q2-2024, ore for the CIL processing plant is expected to be
sourced from the Sabodala, Niakafiri East and Sofia North extension
pits supplemented by high-grade ore from the Massawa Central Zone
pit. In H2-2024, throughput is expected to remain consistent with
higher processed grades expected due to higher grade ore sourced
from the Sabodala and Kiesta C pits with continued inclusion of
Massawa North Zone transitional and Niakafiri East fresh material
in the mill feed
-
Refractory ore for the BIOX® plant is expected to be primarily
sourced from the Massawa Central and Massawa North Zone pits.
Refractory ore mined in H1-2024 is expected to be largely
stockpiled ahead of the ramp-up of the BIOX® Expansion project
which is expected to achieve nameplate capacity in H2-2024, and
will result in H2-2024 weighted production for
Sabodala-Massawa.
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $35.0 million, of which $2.9 million has
been incurred in Q1-2024, and is primarily related to capitalised
waste striping, heavy mining equipment rebuilds.
-
Non-sustaining capital expenditure outlook for FY-2024 remains
unchanged at $40.0 million, of which $8.1 million has
been incurred in Q1-2024, and is primarily related to
infrastructure for the deposition of tailings in the Sabodala pit
which is expected to commence in FY-2025, advanced grade control
and infrastructure at the Kiesta deposit, the TSF 1 embankment
raise and purchases of new mining equipment.
-
Non-sustaining capital expenditure outlook for FY-2024 associated
with the solar power plant remains unchanged at $45.0 million, of
which $6.8 million has been incurred in Q1-2024, with additional
details provided in the Solar Power Plant section below.
-
Growth capital expenditure outlook for FY-2023 remains unchanged at
$75.0 million, of which $37.8 million was incurred in Q1-2024
related to the BIOX® Expansion project. Further detail on the
project is provided in the Plant Expansion section below.
Plant Expansion
-
As previously announced, first gold at the BIOX® expansion project
was achieved on 18 April 2024 from the gravity circuit and on 29
April 2024 from the BIOX® circuit, only 24 months after
construction launch, transforming the Sabodala-Massawa Complex into
a tier 1 mine. The project was delivered on budget and on schedule
with an impressive safety record; achieving over 3.5 million man
hours worked with zero lost-time injuries.
-
Commercial production at the BIOX® Expansion project is expected in
late Q2-2024, with the project ramping up to its nameplate capacity
of 1.2Mtpa in Q3-2024.
-
Growth capital expenditure for the expansion project is $290.0
million of which approximately $269.0 million or 93% of the total
growth capital has now been committed, with pricing in line with
expectations. $243.0 million, or 84%, of the growth capex has been
incurred as at the end of Q1-2024, of which $37.8 million was
incurred in Q1-2024 and $75.0 million is expected to be incurred in
FY-2024.
Solar Power Plant
-
As announced on 2 August 2023, Endeavour launched the construction
of a 37MWp photovoltaic (“PV”) solar facility and a 16MW battery
system at the Sabodala-Massawa mine, in order to significantly
reduce fuel consumption and greenhouse gas emissions, and lower
power costs.
-
The capital cost for the solar project is $55.0 million of which
approximately $32.5 million, or 59%, has been committed, with
pricing in line with expectations. $12.4 million, or 23%, of the
capital cost has been incurred as at the end of Q1-2024, of which
$6.8 million was incurred in Q1-2024 and $45.0 million is expected
to be incurred in FY-2024.
-
The construction progress regarding critical path items is detailed
below:
-
Design work and manufacturing is in the final stages
-
Site clearing and road construction is complete.
-
Fencing of the land package is progressing on schedule.
-
Mechanical installation, civil works, and building construction
contractor mobilisation has commenced in mid-April.
Lafigué Project, Côte d’Ivoire
Project Update
-
Construction of the Lafigué project in Côte d'Ivoire was launched
in early Q4-2022, following the completion of a Definitive
Feasibility Study (“DFS”) which confirmed Lafigué’s potential to be
a cornerstone asset for Endeavour. First gold production is
expected ahead of schedule in Q2-2024, rather than Q3-2024.
-
Mining activities commenced in Q4-2023 and 900kt of ore have been
mined and stockpiled to date. Dry commissioning of the processing
plant is underway, with ore currently being fed to the crushing
circuit. Wet commissioning is expected to start in the coming
weeks.
-
Growth capital expenditure for the project is approximately $448.0
million, of which approximately $421.2 million or 94% has been
committed to the end of Q1-2024, with pricing in line with
expectations. $343.6 million, or 77% of the growth capital has been
incurred to date, of which $56.7 million was incurred in Q1-2024
with $170.0 million expected to be incurred in FY-2024, weighted
towards H1-2024. The incurred spend is mainly related to ongoing
construction activities at the process plant, site infrastructure
and commissioning activities.
-
The construction progress regarding critical path items is detailed
below:
-
Engineering and drafting is complete.
-
Manufacturing, supply and delivery is complete.
-
Mining equipment mobilisation has advanced and mining activities
commenced during Q4-2023, with 8,832kt of material moved to
date.
-
Stockpiles currently stand at 900kt of ore grading 1.32 g/t ahead
of commissioning.
-
The TSF facility and associated infrastructure is complete.
-
Ancillary infrastructure including admin buildings, accommodation
and offices are approaching completion.
2024 Outlook
-
As previously guided, first gold production at Lafigué is expected
ahead of schedule in Q2-2024. Lafigué is expected to produce
between 90 - 110koz in FY-2024 at a post commercial production AISC
of $900 - 975/oz, which is in line with the Definitive Feasibility
Study ("DFS") assumptions.
-
Mining activities are underway in the western and eastern flanks of
the Lafigué pit, as well as the West pit. Total mined tonnes are
expected to ramp-up through the year as the fleet is progressively
mobilised in line with the opening up of the pits. Average
processed grades are expected to increase through the ramp-up
period as mining advances into the fresh zones of the Lafigué pits.
Recovery rates are expected to be above 90%, while processing costs
are expected to decrease through the ramp-up period.
-
As per the DFS, sustaining capital expenditure is expected to
amount to $25.0 million in FY-2024 and is primarily related to
capitalised waste stripping activities, advanced grade control
drilling and spare parts purchases.
- As per the DFS,
non-sustaining capital expenditure is expected to amount to $5.0
million in FY-2024 and is primarily related to the commencement of
a TSF lift in H2-2024, once there is sufficient waste rock
available from mining operations, and waste stripping activity in
the eastern flank of the Lafigué pit.
EXPLORATION ACTIVITIES
-
Exploration will continue to be a strong focus for Endeavour during
FY-2024 with an extensive programme of $65.0 million planned.
The programme will focus on resource to reserve conversion and new
resource additions across the Group’s existing operations, as well
as continued drilling on the highly prospective Assafou deposit on
the Tanda-Iguela property in Côte d'Ivoire, which already ranks as
one of the most significant discoveries made in West Africa over
the past decade.
-
During Q1-2024, the Group exploration spend amounted to
$24.8 million, of which $17.7 million was spent on
existing operations and $7.1 million was spent on greenfields,
including $4.7 million on the Assafou deposit and the wider
Tanda-Iguela property. A total of 109,390 metres of drilling were
completed during the quarter.
-
Endeavour remains on track to achieve its 5-year exploration target
to discover 12 - 17Moz of Indicated resources over the 2021 to 2025
period, at the low discovery cost of less than $25 per ounce,
having already discovered 10 million ounces at a discovery cost
below $25/oz.
Table 11: Q1-2024 Exploration
Expenditure and 2024
Guidance1
|
Q1-2024 ACTUAL
|
FY-2024 GUIDANCE
|
All amounts
in US$ million |
Houndé mine |
2.3 |
7.0 |
Ity mine |
4.6 |
10.0 |
Mana mine |
0.4 |
2.0 |
Sabodala-Massawa
mine |
10.4 |
21.0 |
Lafigué
project |
0.9 |
4.0 |
Tanda-Iguela
Project |
4.7 |
15.0 |
Greenfields |
1.5 |
6.0 |
TOTAL |
24.8 |
65.0 |
1Exploration expenditures include
expensed, sustaining and non-sustaining exploration
expenditures.
Houndé
mine
-
An exploration programme of $7.0 million is planned for
FY-2024, of which $2.3 million was spent in Q1-2024 consisting
of 5,328 meters of drilling across 25 drill holes. The programme is
focused on delineating targets at depth within the Kari Area and
Vindaloo Deeps, as well as adding resources at the existing
deposits.
-
During Q1-2024, drilling continued to test the continuity of
mineralisation at the Vindaloo Deeps target with preliminary
results demonstrating the potential for a large, higher-grade
underground resource. Drilling of the north-western extension of
the Kari Pump deposit continued with preliminary results indicating
that the mineralisation remains open at depth.
-
During the remainder of the year, the exploration programme will
focus on delineating further mineralisation at depth at the
Vindaloo Deeps and Kari Pump deposits. Additional drilling is also
expected at the Koho East and Vindaloo South East deposits to
improve resource definition. Sterilisation drilling is expected to
continue to confirm proposed footprints for future site
infrastructure including TSF cell 3.
Ity mine
-
An exploration programme of $10.0 million is planned for
FY-2024, of which $4.6 million was spent in Q1-2024 consisting
of 22,979 meters of drilling across 161 drill holes. The
exploration programme is focused on extending near-mine resources
around Grand Ity in order to test the continuity of mineralisation
at depth and in between the Walter, Bakatouo, Zia and Ity pits.
Drilling is also focused on extending the West Flotouo and Flotouo
Extension deposits at depth. Additionally, reconnaissance and
delineation work is continuing at several targets on the Ity belt,
including the Gbampleu and Goleu targets.
-
During Q1-2024, near-mine drilling focused on the northwest sides
of the Walter, Bakatouo, Zia, and Mont Ity deposits, which
confirmed the down-dip continuity of mineralisation underneath the
resource pit shell. Drilling at the Yopleu-Legaleu deposit
confirmed the along-strike extent of the mineralised veins towards
the southwest. Regional exploration at the Goleu and Morgan targets
commenced during the quarter, with initial results identifying
mineralised intercepts at Goleu that will be followed up with a
second phase of drilling in Q2-2024.
-
During the remainder of the year, mine permit drilling will
continue at the Mont Ity, Zia and Yopleu-Legaleu targets while the
near-mine permit programmes will follow up on mineralisation
identified at the Goleu and Gbampleu targets.
Mana mine
-
An exploration programme of $2.0 million is planned for
FY-2024, of which $0.4 million was spent in Q1-2024. The
exploration programme focused on delineating near mine higher grade
oxide targets between the Nyafé and Fofina historic pit areas,
delineation of non-refractory open pit targets at Siou Nord, Kana
and Fofina, as well as the compilation of data for further target
generation.
-
During Q1-2024, fieldwork focused on the collection and
interpretation of soil sampling results, regolith sampling data and
geological mapping from the Momina and Fofina areas, and a
trenching program at the Bana and Nyafé South targets. Trenching
results yielded encouraging grade intercepts at Bana, and
identified a mineralised trend over 750 meters long.
-
During the remainder of the year, the exploration programme will
follow up on the trenching results with RC drilling to test the
potential for non-refractory oxide mineralisation in the Bana,
Nyafé and Fofina areas. Further, desktop studies will focus on
generating new targets through integrating field mapping and
historic data interpretation.
Sabodala-Massawa
mine
-
An exploration programme of $21.0 million is planned for
FY-2024, of which $10.4 million was spent in Q1-2024
consisting of 48,553 meters of drilling across 2,915 drill holes.
The exploration programme is focused on expanding near-mine
non-refractory oxide and refractory resources across the Niakafiri,
Sabodala, Kerekounda-Golouma and Massawa deposits, while testing
new targets at the Kanoumba complex located south of the Massawa
permit. Reconnaissance drilling will also be conducted across the
recently acquired Niamaya permits located north of the Massawa
deposit, along trend of the regional Main Transcurrent Zone (“MTZ”)
structure which hosts the Massawa and Delya deposits.
-
During Q1-2024, exploration activities included drilling focused on
following high-grade veins north at the Niakafiri West deposit,
delineating the Soukhoto target south of the Sabodala pit along the
Sabodala trend, drilling at the Delya North deposit, intensive
auger drilling at several targets along the MTZ and delineating the
hanging wall at the Niakafiri East deposit to determine future
underground potential. Concurrently, drilling at the Massawa North
Zone followed mineralisation below the current pit shell to assess
the underground potential of the refractory resources.
-
During the remainder of the year, the exploration programme will
continue to focus on expanding near-mine oxide and refractory
resources across the Niakafiri, Sabodala, Kerekounda-Golouma and
Massawa deposits. Additionally, further reconnaissance and new
target generation is planned with electromagnetic and ground
geophysics on new targets on the MTZ across the Massawa, Kanoumba
and Niamaya permit areas.
Lafigué
development project
-
An exploration programme of $4.0 million is planned for
FY-2024, of which $0.9 million was spent in Q1-2024 consisting
of 5,838 meters of drilling across 63 drill holes. The exploration
programme is focused on the WA05 and Central Area targets located
within 5 kilometres of the Lafigué deposit, and on investigating
future underground mineralisation potential by testing extensions
to mineralisation below the current pitshell.
-
During Q1-2024, drilling was focused on the Central area, WA05,
Target 11 and Target 12 with initial assay results identifying
mineralised intercepts at the Central Area target, that will be
followed up with a second drilling phase later in the year.
-
During the remainder of the year, the programme will largely focus
on hydrogeological and grade control drilling of the Lafigué
deposit, coinciding with the start-up of production in Q2-2024, in
addition to further evaluation of the Central Area, WA05, Target 11
and Target 12 targets.
Tanda-Iguela
-
An exploration programme of $15.0 million is planned for
FY-2024, of which $4.7 million was spent in Q1-2024 consisting
of 26,693 meters of drilling across 202 drill holes. The
exploration programme is focused on extending mineralisation and
adding resources at the Assafou deposit as well as assessing
satellite targets within 5 kilometres of Assafou.
-
During Q1-2024, drilling at the Assafou deposit extended the
mineralised trend to the southeast and northwest by 400 meters in
total, confirming the extent of the mineralised trend to over 3,700
meters, with mineralisation still open along strike in both
directions and at depth. Mineralisation extends along the
previously identified structural contact between the Tarkwaian
Sandstone and the Birimian basement. In addition, in the southeast
extent of the Assafou deposit, mineralisation has been identified
below the existing pit shell towards the southwest away from the
structural contact, demonstrating continuity outside of the
existing resource pit shell.
-
During the quarter drilling was also undertaken at regional
targets, within close proximity to the Assafou deposit, on the
wider Tanda-Iguela property, with additional mineralisation
identified at the Pala Trend 2, where the mineralised trend has
been identified over 1,800 meters, and the Gbabango target, where
new shallow mineralisation has been identified.
-
During the remainder of the year, exploration at Assafou will
continue to focus on extending mineralisation and adding additional
resources. Drilling will also continue to focus on advancing the
Pala Trend 2 and Gbabango satellite targets as well as delineating
the new Koume-Nangare target in the northwest.
CONFERENCE CALL AND LIVE WEBCAST
Management will host a conference call and
webcast on Thursday 2 May, at 8:30 am EDT / 1:30 pm BST to discuss
the Company's financial results.
The conference call and webcast are scheduled
at:
5:30am in Vancouver
8:30am in Toronto and New York
1:30pm in London
8:30pm in Hong Kong and Perth
The video webcast can be accessed through the
following link:
https://edge.media-server.com/mmc/p/5g47kgz8
Click here to add a Webcast reminder to your Outlook
Calendar.
Analysts and investors are also invited to
participate and ask questions by registering for the conference
call dial-in via the following link:
https://register.vevent.com/register/BIbafe46988b6e4673b4e044c5587b481193aa6a8c7
The conference call and webcast will be
available for playback on Endeavour's website.
QUALIFIED PERSONS
Mark Morcombe, COO 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
For Investor
Relations enquiries: |
For Media
enquiries: |
Jack
Garman |
Brunswick
Group LLP in London |
Vice President of
Investor Relations |
Carole Cable,
Partner |
442030112723 |
442074045959 |
investor@endeavourmining.com |
ccable@brunswickgroup.com |
ABOUT ENDEAVOUR MINING CORPORATION
Endeavour Mining is one of the world’s
senior gold producers and the largest in West Africa, with
operating assets across Senegal, Côte 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 expected timing for completion of
technical studies, the potential for Tanda-Iguela to be a Tier 1
deposit, 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 integration of acquisitions or 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.sedar.com 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.
NON-GAAP MEASURES
Some of the indicators used by Endeavour in this
press release represent non-IFRS financial measures, including
“all-in margin”, “all-in sustaining 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”, “net
earnings”, “adjusted net earnings”, “operating cash flow per
share”, and “return on capital employed”. 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.
Corporate Office: 5 Young St, Kensington, London W8 5EH,
UK
- EDV_Q1-2024_Results_MDA
- EDV_Q1-2024_Results_Financial Statement
- EDV_Q1-2024_Results_Presentation
- EDV_Q1-2024_Results_Mine Statistics
- EDV_Q1-2024_Results_News Release
Endeavour Mining (LSE:EDV)
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