Endeavour Reports Q2-2024 Results
ENDEAVOUR REPORTS Q2-2024
RESULTS
Adjusted EBITDA of $249m • $435m minimum dividend for 2024
& 2025 • $120m shareholder returns for H1
OPERATIONAL AND FINANCIAL HIGHLIGHTS
- H1-2024 production of 470koz at an AISC of $1,237/oz;
Q2-2024 production of 251koz at $1,287/oz
- On track to achieve production guidance with
performance weighted towards H2-2024, AISC expected to be near the
top-end of the range
- Adjusted EBITDA of $249m for Q2-2024, up 17% over
Q1-2024
- Adjusted Net Earnings of $3m (or $0.01/sh) for
Q2-2024
- Operating Cash Flow of $258m (or $1.05/sh) for
Q2-2024
- Healthy financial position with stable net debt of
$835m at end Q2-2024, as growth phase nears
completion
SHAREHOLDER RETURNS
- Updated shareholder returns policy comprised of minimum
dividends totalling $435m for 2024 and 2025, that are expected to
be supplemented with additional dividends and share
buybacks
- $100m dividend declared for H1-2024, equivalent to
$0.41/sh, that was supplemented with $20m of share buybacks;
equivalent to a total return of $255/oz of gold produced in
H1-2024
ORGANIC GROWTH
- First gold pours achieved on budget and on schedule at
Sabodala-Massawa BIOX® Expansion and Lafigué during Q2-2024, with
both projects on track to ramp up to nameplate capacity in
Q3-2024
- Strong exploration efforts with $56m spent in H1-2024;
increased FY-2024 guidance from $65m to $77m due to success at
Houndé, Ity and Sabodala-Massawa, with positive reserve and
resource updates expected at year-end
- Tanda-Iguela exploration programme identified shallow
mineralisation at the Pala Trend 3 and recently discovered
Koume-Nangare targets, both within close proximity to Assafou; with
updated resources expected by year-end
|
London, 31 July 2024 –
Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”,
the “Group” or the “Company”) announces its operating and financial
results for Q2-2024 and H1-2024, with highlights provided in Table
1 below.
Table 1: Q2-2024 and H1-2024
Highlights from continuing
operations1
|
All amounts in US$ million unless otherwise specified |
THREE MONTHS ENDED |
SIX MONTHS ENDED |
Δ Q2-2024 vs. Q1-2024 |
|
|
30 June 2024 |
31 March
2024 |
30 June 2023 |
30 June 2024 |
30 June 2023 |
|
| |
| OPERATING DATA |
|
|
|
|
|
|
|
| Gold Production,
koz |
251 |
219 |
268 |
470 |
511 |
+15% |
|
| Gold sold,
koz |
238 |
225 |
269 |
463 |
521 |
+6% |
|
| All-in
Sustaining Cost2,3, $/oz |
1,287 |
1,186 |
1,000 |
1,237 |
978 |
+9% |
|
|
Realised Gold Price4, $/oz |
2,287 |
2,041 |
1,947 |
2,167 |
1,914 |
+12% |
|
| CASH
FLOW |
|
|
|
|
|
|
|
| Operating Cash
Flow before changes in working capital |
213 |
137 |
161 |
351 |
380 |
+55% |
|
| Operating Cash
Flow before changes in working capital2, $/sh |
0.87 |
0.56 |
0.65 |
1.43 |
1.53 |
+55% |
|
| Operating Cash
Flow |
258 |
55 |
147 |
313 |
337 |
+369% |
|
| Operating Cash
Flow2, $/sh |
1.05 |
0.22 |
0.59 |
1.28 |
1.36 |
+377% |
|
|
PROFITABILITY |
|
|
|
|
|
|
|
| Net Earnings
Attributable to Shareholders |
(60) |
(20) |
78 |
(80) |
77 |
n.a. |
|
| Net Earnings,
$/sh |
(0.24) |
(0.08) |
0.32 |
(0.33) |
0.31 |
n.a. |
|
| Adj. Net
Earnings Attributable to Shareholders2 |
3 |
41 |
54 |
45 |
119 |
(93)% |
|
| Adj. Net
Earnings2, $/sh |
0.01 |
0.17 |
0.22 |
0.18 |
0.48 |
(94)% |
|
|
EBITDA2 |
193 |
156 |
273 |
349 |
441 |
+24% |
|
| Adj.
EBITDA2 |
249 |
213 |
253 |
461 |
493 |
+17% |
|
|
SHAREHOLDER RETURNS2 |
|
|
|
|
|
|
|
| Shareholder
dividends paid |
— |
100 |
— |
100 |
100 |
n.a. |
|
| Share
buybacks |
8 |
13 |
9 |
20 |
20 |
(38)% |
|
|
ORGANIC GROWTH2 |
|
|
|
|
|
|
|
| Growth capital
spend |
93 |
99 |
104 |
192 |
176 |
(6)% |
|
| Exploration
spend |
31 |
25 |
30 |
56 |
51 |
+24% |
|
|
FINANCIAL POSITION HIGHLIGHTS2 |
|
|
|
|
|
|
|
| Net Debt |
835 |
831 |
171 |
835 |
171 |
—% |
|
|
Net Debt / LTM Trailing adj. EBITDA5 |
0.81x |
0.80x |
0.15x |
0.81 |
0.15x |
+1% |
|
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.
3Excludes costs and ounces sold related to
pre-commercial production at the Groups growth projects.
4Realised gold prices are inclusive of the
Sabodala-Massawa stream and the realised
gains/losses from the Group’s revenue protection
programme. 5Last Twelve
Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by
discontinued operations.
Management will host a conference call and
webcast today, 31 July 2024, at 8:30 am EDT / 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: “During the first half of 2024 we continued to make
progress against our strategic objectives. We are delighted to have
achieved first gold at both of our growth projects, which will
improve the geographic diversification and quality of our
portfolio, while underpinning a stronger H2 performance.
On the operational side, production remains
on track to achieve guidance for the twelfth consecutive year with
performance strongly weighted towards the second half of the year
due to stronger performances expected at Houndé, Lafigué and the
Sabodala-Massawa BIOX® Expansion. Our all-in sustaining cost is
expected to be near the top end of the guidance range, compounded
by the lower grid power availability in Côte d’Ivoire and Burkina
Faso during H1, higher royalty rates due to the higher gold prices
and lower performance at Sabodala-Massawa. We have already seen
significant improvements in power availability in Q3 that will
support an improved H2 performance.
The successful gold pours at our two growth
projects during the quarter, both on budget, on schedule and in
under two years, extends our track record of delivery, having now
built five large capital projects in West Africa in the last ten
years. We are now focussed on advancing the Assafou project on the
Tanda-Iguela property, with a preliminary feasibility study
expected by year-end. At the same time we continue to explore the
Assafou deposit and the targets surrounding it, where we have
identified additional shallow mineralisation in close proximity to
Assafou, reinforcing the project’s potential to become a
cornerstone complex for Endeavour.
As we approach the completion of our current
phase of growth, we are pleased to announce a new shareholder
returns programme, that will be comprised of $435 million of
minimum dividends over the next two years, which we expect to
supplement with additional dividends and share buybacks. For
H1-2024 we have declared a $100 million dividend, which we have
supplemented with an additional $20 million of share buybacks. Upon
payment of our H1-2024 dividend, we will have returned more than
$1.0 billion to shareholders since our first dividend payment in
Q1-2021, equivalent to $223 for every ounce produced over the same
period.
Finally, to the changes we announced
today to our executive management team. Mark Morcombe, EVP and COO,
and Jono Lawrence, EVP Exploration, are leaving to pursue
other opportunities and I would like to thank them for their years
of dedicated service and significant contributions. We have
reorganised the leadership to strengthen the operational and
technical management within the team and I welcome Djaria Traore as
EVP Operations and ESG and Martin White as EVP and Chief Technical
Officer to their new roles. Collectively, we look forward to
continuing to deliver on our strategy with a restructured
management team, to further strengthen our business and benefit all
our stakeholders.”
MANAGEMENT CHANGES
As the Company transitions into a new phase
focussed on maximising the performance of its existing operations
to support its ambitious capital allocation priorities, the
executive leadership team will be restructured, effective 1
September 2024, to ensure that the Company continues to deliver
against its strategic objectives.
Djaria Traoré, formerly Executive VP Supply
Chain and ESG has been appointed Executive VP Operations and ESG.
In her new role, Djaria will continue to lead the ESG strategy and,
additionally, will take executive responsibility for
operations.
Martin White, formerly Executive VP Projects has
been appointed Executive VP and Chief Technical Officer. In this
role, Martin will continue to oversee project development and bring
his extensive experience to further strengthen our technical
services capabilities.
Djaria and Martin will assume the operational
responsibilities of Mark Morcombe, Executive VP and COO who is
leaving the company. The Board and his colleagues thank him for
five years of dedicated service and, in particular, his role in
improved operational processes and reinforcing our safety
culture.
Jono Lawrence, Executive VP Exploration is also
leaving the company and will be replaced by a new Executive VP
Exploration & Geology to be announced shortly. Jono has played
a pivotal role in leading our successful exploration campaign and
we thank him for his significant contribution during his eight
years of dedicated service.
Morgan Carroll, currently Executive VP Corporate
Finance and General Counsel has been appointed Executive VP and
Chief Commercial Officer and will be responsible for Supply Chain.
Morgan’s former responsibilities for Corporate Finance will be
transitioning, over a period of time, to Guenole Pichevin,
Executive VP Strategy and Business Development, while Samantha
Campbell currently Deputy General Counsel, will assume the role of
Executive VP and Group General Counsel.
Following these changes, the Executive Committee
will be composed of nine members with a balanced mix of gender,
experience, technical skills and operational expertise, to lead us
into this new phase with increased confidence.
SHAREHOLDER RETURNS PROGRAMME
-
Endeavour implemented a shareholder returns policy in June 2021
that was comprised of a minimum progressive dividend set at $125.0
million, $150.0 million and $175.0 million for FY-2021, FY-2022 and
FY-2023 respectively, with the ability to provide further
supplemental returns through additional dividends and share
buybacks.
-
Over the shareholder returns policy period, Endeavour returned
$903.0 million to shareholders, equivalent to $211 dollars for
every ounce produced, including $600.0 million of dividends and
$303.0 million of share buybacks, which was 78% above the minimum
commitment, reiterating Endeavour’s commitment to paying
supplemental returns.
-
Following the successful completion of the previous policy,
Endeavour is implementing a new shareholder returns policy, to
reflect its transition from a phase focused on investment, to one
focused on cash flow generation. The new shareholder returns policy
is comprised of a minimum dividend of $210.0 million and $225.0
million for FY-2024 and FY-2025 respectively, that is expected to
be supplemented with additional dividends and share buybacks.
-
The minimum dividend is expected to be paid semi-annually, provided
that the prevailing gold price for the dividend period is at, or
above, $1,850/oz and the Company has a healthy financial
position.
-
Supplemental returns are expected to be paid in the form of
dividends and opportunistic share buybacks if the gold price
exceeds $1,850/oz and if the Company has a healthy financial
position.
Table 2: Cumulative Shareholder
Returns
|
(All amounts in US$m) |
|
MINIMUM DIVIDEND COMMITMENT |
SUPPLEMENTAL DIVIDENDS |
BUYBACKS COMPLETED |
TOTAL RETURN |
△ ABOVE MINIMUM COMMITMENT |
|
|
FY-2020 |
60 |
— |
— |
60 |
— |
2021-2023 Shareholder Returns Programme (completed)
|
FY-2021 |
125 |
15 |
138 |
278 |
+153 |
| FY-2022 |
150 |
50 |
99 |
299 |
+149 |
|
FY-2023 |
175 |
25 |
66 |
266 |
+91 |
2024-2025 Shareholder Returns Programme (ongoing)
|
H1-2024 |
100 |
— |
20 |
120 |
+20 |
|
H2-2024 |
110 |
— |
— |
110 |
— |
|
FY-2025 |
225 |
— |
— |
225 |
— |
|
TOTAL |
TOTAL |
945 |
90 |
323 |
1,358 |
413 |
-
For H1-2024, Endeavour is pleased to declare a dividend of $100.0
million or $0.41/sh. The ex-dividend date for the H1-2024 dividend
will be 12 September 2024 and the record date will be 13 September
2024. The dividend will be paid on or about 10 October 2024 (the
“Payment Date”).
-
During H1-2024, shareholder returns continued to be supplemented by
share buybacks with $20.1 million or 1.2 million shares
repurchased during the period, of which, $7.5 million or 0.4
million shares were repurchased during Q2-2024.
-
Following the payment of the H1-2024 dividend, Endeavour will have
returned more than $1,023.0 million to shareholders, including
$700.0 million of dividends and $323.0 million of share buybacks,
equivalent to over $223/oz produced over the same period.
- Shareholders of shares traded on
the Toronto Stock Exchange will receive dividends in Canadian
Dollars (“CAD”) but can elect to receive United States Dollars
(“USD”). Shareholders of shares traded on the London Stock Exchange
will receive dividends in USD, but can elect to receive Pounds
Sterling (“GBP”). Currency elections and elections under the
Company's Dividend Reinvestment Plan ("DRIP") must be made by
shareholders prior to 17:00 GMT on 19 September 2024. Dividends
will be paid in the default or elected currency on the Payment
Date, at the prevailing USD:CAD and USD:GBP exchange rates on 23
September 2024. This dividend does not qualify as an “eligible
dividend” for Canadian income tax purposes. The tax consequences of
the dividend will be dependent on the particular circumstances of a
shareholder.
-
Endeavour is pleased to continue to offer a DRIP to offer existing
shareholders the opportunity, at their own election, to increase
their investment in Endeavour by receiving dividend payments in the
form of common shares in the Company.
-
Participation in the DRIP is optional and available to
shareholders, subject to local law, who hold shares on the London
Stock Exchange or on the Toronto Stock Exchange. Participants may
opt to reinvest all, or any portion of their dividends in the DRIP.
Custodians are reminded that as part of the terms and conditions of
the DRIP, if you make a partial election on the DRIP, the remaining
shares on your holding will be paid out automatically in GBP and
not the default currency of your specific holding(s). The enrolment
form is available on Endeavour’s website, alongside the DRIP
circular, which will also be submitted to the National Storage
Mechanism in accordance with Listing Rule 9.6.1. The last election
date for participation in the H1-2024 DRIP for beneficial
shareholders who hold shares through the Canadian Depository System
(“CDS”) will be 19 September 2024, for all other eligible
shareholders the last election date will be 19 September 2024.
-
In accordance with the DRIP, Endeavour’s Transfer Agent,
Computershare, will use cash dividends payable to participating
shareholders to purchase common shares in the open market on the
Toronto Stock Exchange and the London Stock Exchange at the
prevailing market price.
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 30 June 2024.
-
Q2-2024 production amounted to 251koz, an increase of 32koz over
Q1-2024, due to higher production at Houndé, Ity and
Sabodala-Massawa, which was partially offset by lower production at
Mana. Production increased at Houndé, Ity and Sabodala-Massawa
largely due to increased grades processed, in addition to increased
utilisation at Houndé following the 11-day strike in the prior
period. Production decreased at Mana due to lower grades processed
as mining focused on increased development activities in the Siou
and Wona underground deposits, offsetting stoping activity in the
Siou deposit.
-
Q2-2024 AISC amounted to $1,287/oz, an increase of $101/oz over
Q1-2024 due largely to increased processing costs reflecting the
lower grid power availability as well as increased costs at
Sabodala-Massawa and Mana due to the impact of lower volumes of
gold sold.
-
Grid power availability has been temporarily reduced in Côte
d’Ivoire due to several breakdowns at natural gas power plants that
impacted 250MW of capacity from January 2024 and a further 650MW of
combined capacity from early April. Further, grid power
availability in Burkina Faso was also impacted as approximately a
quarter of Burkina Faso’s power is imported from Côte d’Ivoire.
-
In Côte d’Ivoire, at the Ity mine grid utilisation decreased from
an average of 69% in FY-2023 to 18% in Q2-2024, which drove
increased power costs as grid power costs approximately $0.18/kWh
compared to self-generated power costs of approximately $0.28/kWh
in Q2-2024.
-
In Burkina Faso, at the Houndé and Mana mines, grid utilisation
decreased from an average of 91% in FY-2023 to 27% in Q2-2024,
which drove increased power costs as grid power costs approximately
$0.23/kWh compared to self-generated power costs of approximately
$0.49/kWh in Q2-2024.
-
The approximate impact of changes in grid power availability on
AISC was +$66/oz for H1-2024, including +$52/oz for Q2-2024, when
compared with the prior period. Grid power availability has shown
improvement in early Q3-2024, in line with the commencement of the
wet season and the completed repair of the Ciprel power plant,
while work to fully restore the Azito power plant is still
underway. During July, our grid power utilisation at the Ity mine
increased to 62%, from 18% in Q2-2024 and our grid power
utilisation at the Houndé and Mana mines increased to 72%, from 26%
in Q2-2024.
Table 3: Group
Production
| |
THREE MONTHS ENDED |
SIX MONTHS ENDED |
|
All amounts in koz, on a 100% basis |
30 June
2024 |
31 March
2024 |
30 June
2023 |
30 June
2024 |
30 June
2023 |
|
Houndé |
64 |
42 |
72 |
106 |
119 |
| Ity |
96 |
86 |
86 |
182 |
177 |
| Mana |
35 |
42 |
31 |
77 |
75 |
|
Sabodala-Massawa1 |
57 |
49 |
79 |
105 |
140 |
|
Lafigué1 |
0.5 |
— |
— |
0.5 |
— |
|
PRODUCTION FROM CONTINUING OPERATIONS |
251 |
219 |
268 |
470 |
511 |
|
Boungou2 |
— |
— |
14 |
— |
33 |
|
Wahgnion2 |
— |
— |
30 |
— |
68 |
|
GROUP PRODUCTION |
251 |
219 |
311 |
470 |
612 |
1Includes pre-commercial ounces that are
not included in the calculation of All-In Sustaining
Costs.
2The Boungou and
Wahgnion mines were divested on 30 June 2023.
Table 4: Group All-In Sustaining
Costs
All amounts in US$/oz
|
THREE MONTHS ENDED |
SIX MONTHS ENDED |
30 June
2024 |
31 March
2024 |
30 June
2023 |
30 June
2024 |
30 June
2023 |
|
Houndé |
1,472 |
1,572 |
1,085 |
1,514 |
1,113 |
| Ity |
885 |
884 |
797 |
885 |
764 |
| Mana |
1,927 |
1,453 |
1,481 |
1,661 |
1,277 |
|
Sabodala-Massawa1 |
1,164 |
947 |
762 |
1,050 |
774 |
|
Corporate G&A |
48 |
49 |
56 |
48 |
56 |
|
AISC FROM CONTINUING OPERATIONS |
1,287 |
1,186 |
1,000 |
1,237 |
978 |
|
Boungou2 |
— |
— |
2,147 |
— |
1,639 |
|
Wahgnion2 |
— |
— |
1,817 |
— |
1,566 |
|
GROUP AISC3 |
1,287 |
1,186 |
1,136 |
1,237 |
1,080 |
1Excludes pre-commercial costs
associated with ounces from the BIOX® expansion project
2The Boungou and
Wahgnion mines were divested on 30 June 2023.
3This is a non-GAAP measure, refer to the
non-GAAP Measures section for further details.
FY-2024 OUTLOOK
-
The Group remains on track to achieve its FY-2024 production
guidance of 1,130 – 1,270koz at an AISC near the top end of the
$955 – 1,035/oz guided range, with performance strongly weighted
towards H2-2024, as previously guided.
Table 5: FY-2024 Production
Outlook
| |
H1-2024 ACTUALS
|
FY-2024 GUIDANCE
|
FY-2024 OUTLOOK
|
|
(All amounts in koz, on a 100% basis) |
|
Houndé |
106 |
260 - 290 |
ON TRACK |
| Ity |
182 |
270 - 300 |
ABOVE TOP-END |
| Mana |
77 |
150 - 170 |
ON TRACK |
|
Sabodala-Massawa |
105 |
360 - 400 |
BELOW LOWER-END |
|
Lafigué |
— |
90 - 110 |
ON TRACK |
|
Group Production |
470 |
1,130 - 1,270 |
ON TRACK |
Table 6: FY-2024 All-In Sustaining
Cost Outlook
| |
H1-2024 ACTUALS
|
FY-2024 GUIDANCE
|
FY-2024 OUTLOOK
|
|
(All amounts in US$/oz) |
|
Houndé |
1,514 |
1,000 - 1,100 |
ON TRACK |
| Ity |
885 |
850 - 925 |
ON TRACK |
| Mana |
1,661 |
1,200 - 1,300 |
NEAR TOP-END |
|
Sabodala-Massawa |
1,050 |
750 - 850 |
ABOVE TOP-END |
| Lafigué |
— |
900 - 975 |
ON TRACK |
|
Corporate G&A |
48 |
40 |
ON TRACK |
|
Group AISC |
1,237 |
955 - 1,035 |
NEAR TOP END |
-
Group production is expected to achieve the guidance range, as
lower production at Sabodala-Massawa, is expected to be partially
offset by higher production at Ity. At Sabodala-Massawa, FY-2024
production is expected to be below the guided range due to mining
and processing of lower than expected grade non-refractory ore from
the Sabodala pit, where mining has been accelerated to deplete the
pit ahead of the planned commencement of in-pit tailings deposition
in 2025 and the impact of semi-refractory and transitional ores
from the Massawa Central Zone pit on recovery rates in the
processing plants. Conversely at Ity, FY-2024 production is
expected to be above the guided range due to higher than expected
volumes of high grade fresh ore mined and processed from the Ity
and Bakatouo pits.
-
Group AISC guidance is expected to be near the top end of the
guided range due to the increased power costs associated with lower
than expected grid availability resulting in an approximate impact
of $66/oz in H1-2024, increased royalty costs given AISC guidance
was set at a gold price of $1,850/oz and the realised gold price
for H1-2024 was $2,210/oz resulting in an approximate additional
royalty impact of $34/oz, and the impact of lower production at
higher AISC at Sabodala-Massawa.
-
Group sustaining capital expenditure outlook for FY-2024 remains
unchanged at $125.0 million, of which $51.3 million was incurred in
H1-2024, primarily related to open pit waste development activities
(Houndé, Sabodala-Massawa), underground development at the Siou
Underground (Mana) and heavy machinery equipment purchases and
rebuilds (Sabodala-Massawa and Houndé).
-
Group non-sustaining capital expenditure outlook for FY-2024
remains unchanged at $190.0 million with an increase in expected
spend at Mana fully offset by a decrease in the expected spend at
Houndé. At Mana, the non-sustaining capital expenditure outlook was
increased from $30.0 million to $40.0 million due to increased
underground development and infrastructure, while at Houndé the
non-sustaining capital expenditure outlook was decreased from $20.0
million to $10.0 million due to the deferral of land compensation
related to the TSF 3 construction. $93.1 million of non-sustaining
capital was incurred in H1-2024 primarily related to solar power
plant construction activities at Sabodala-Massawa, underground
development at the Wona Underground (Mana), the Mineral Sizer
Primary Crusher optimisation initiative at Ity, and TSF
construction activities (Houndé, Ity and Mana).
-
Growth capital expenditure outlook for FY-2024 remains unchanged at
$245.0 million, of which $192.1 million was incurred in H1-2024
primarily related to construction activities at the BIOX® expansion
project in Senegal ($70.3 million incurred in H1-2024), the Lafigué
mine in Côte d’Ivoire ($116.2 million incurred in H1-2024) and
additional spend related to the Kalana project.
-
The Group has increased its FY-2024 exploration guidance by $12.0
million from $65.0 million to $77.0 million due to ongoing
exploration success at the Ity and Houndé mines, as well as
increased expenditure expected at Sabodala-Massawa as the
exploration programme is focused on delineating additional
non-refractory resources. More details on the allocation of the
Group’s increased exploration budget are provided in the sections
below.
CASH FLOW SUMMARY
The table below presents the cash flow and net
debt position for Endeavour for the three month period ended 30
June 2024, 31 March 2024, and 30 June 2023, and the six month
periods ended 30 June 2024 and 30 June 2023 with accompanying
explanations below.
Table 7: Cash Flow and Net
Debt
| |
|
THREE MONTHS ENDED |
SIX MONTHS ENDED |
|
All amounts in US$ million unless otherwise specified |
Notes |
30 June 2024 |
31 March
2024 |
30 June 2023 |
30 June 2024 |
30 June 2023 |
|
Net cash from/(used in), as per cash flow
statement: |
|
|
|
|
|
|
| Operating cash
flows before changes in working capital1 |
|
213 |
137 |
161 |
351 |
380 |
|
Changes in working capital1 |
|
45 |
(82) |
(14) |
(37) |
(42) |
|
Cash generated from operating activities from continuing
operations |
[1] |
258 |
55 |
147 |
314 |
338 |
|
Cash generated from discontinued operations |
|
(6) |
— |
13 |
(6) |
28 |
|
Cash generated from operating activities |
[1] |
252 |
55 |
159 |
307 |
365 |
| Cash used in
investing activities |
[2] |
(171) |
(188) |
(214) |
(359) |
(415) |
| Cash
generated/(used) in financing activities |
[3] |
(150) |
88 |
83 |
(62) |
(73) |
|
Effect of exchange rate changes on cash |
|
(5) |
(12) |
7 |
(16) |
16 |
|
DECREASE IN CASH |
|
(74) |
(56) |
35 |
(130) |
(107) |
|
Cash and cash equivalent position at beginning of period |
|
461 |
517 |
810 |
517 |
951 |
|
CASH AND EQUIVALENT POSITION AT END OF
PERIOD4 |
[4] |
387 |
461 |
845 |
387 |
845 |
|
Principal amount of $500m Senior Notes |
|
500 |
500 |
500 |
500 |
500 |
| Drawn portion of
Lafigué Term Loan |
|
147 |
147 |
— |
147 |
— |
| Drawn portion of
$645m Revolving Credit Facility |
|
575 |
645 |
515 |
575 |
515 |
|
NET DEBT2 |
[5] |
835 |
831 |
171 |
835 |
171 |
|
Trailing twelve month adjusted EBITDA2,3 |
|
1,028 |
1,034 |
1,104 |
1,028 |
1,104 |
|
Net Debt / Adjusted EBITDA (LTM)
ratio2,3 |
|
0.81x |
0.80x |
0.15x |
0.81x |
0.15x |
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.
4Cash and cash equivalents are net of bank
overdrafts ($21.1 million at 30 June 2024.
Nil at 31 March 2024 and 30 June 2023)
NOTES:
1) Operating cash flows increased by
$196.9 million from $55.1 million (or $0.22 per share) in Q1-2024
to $252.0 million (or $1.03 per share) in Q2-2024 due largely to
the previously announced $150.0 million gold prepayment, as
detailed below. A working capital inflow was driven largely by an
increase in payables and increased revenue due to higher gold sales
at a higher realised gold price, partially offset by higher taxes
paid, higher operating expenses and higher royalties.
Operating cash flows decreased by $57.8 million
from $364.9 million (or $1.48 per share) in H1-2023 to $307.1
million (or $1.25 per share) in H1-2024 due to lower production,
increased operating costs, higher tax payments and increased
royalties, which were partially offset by the previously announced
$150.0 million gold prepayment and a higher realised gold
price.
Notable variances are summarised below:
- Working capital was an inflow of
$45.0 million in Q2-2024, an increase of $127.3 million over the
Q1-2024 outflow of $82.3 million. The inflow in Q2-2024 consisted
of (i) a trade and other payables inflow of $64.4 million related
to increases in suppliers payables, dividends payable to minority
shareholders of the operating entities, royalties payable and
payroll-related liabilities and (ii) an inflow in trade and other
receivables of $29.4 million related to receipts of VAT refunds in
Senegal and timing of gold sales proceeds. These inflows were
partially offset by (iii) an inventories outflow of $30.9 million
related to an increase in ore stockpiles across Sabodala-Massawa
and Lafigué as both projects ramp-up and an increase in finished
doré on hand due to the timing of gold shipments at the end of the
quarter and (iv) a prepaid expenses and other outflow of $17.9
million related to equipment purchases at
Sabodala-Massawa.
Working capital was an outflow of $37.3 million in H1-2024, a
decrease of $4.9 million over the H1-2023 outflow of $42.2 million,
largely driven by an increase in inflows in trade and other
payables related to the above mentioned payables and an inflow in
trade and other receivables related to VAT receipts and gold sales
timing, which was partially offset by an increase in inventory
outflows related to a build-up of stockpiles ahead of the two
project start-ups.
- Gold sales from continuing
operations increased from 225koz in Q1-2024 to 238koz in Q2-2024
following higher group production in Q1-2024. The realised gold
price from continuing operations for Q2-2024 was $2,322 per ounce
compared to $2,091 per ounce for Q1-2024. Inclusive of the Group’s
Revenue Protection Programme, the realised gold price for Q2-2024
was $2,287 per ounce compared to $2,041 per ounce for Q1-2024.
Gold sales from continuing operations decreased from 521koz in
H1-2023 to 463koz in H1-2024, following lower Group production in
H1-2024. The realised gold price from continuing operations for
H1-2024 was $2,210 per ounce compared to $1,923 per ounce for
H1-2023. Inclusive of the Group’s Revenue Protection Programme, the
realised gold price for H1-2024 was $2,167 per ounce compared to
$1,914 per ounce for H1-2023.
- Total cash cost per ounce increased
from $1,007 per ounce in Q1-2024 to $1,148 per ounce in Q2-2024,
primarily due to increased mining costs following a decrease in
capitalised waste stripping at Houndé, and higher processing costs
due to an increased reliance on self-generated power as mentioned
in the Operating Summary section above.
Total cash cost per ounce increased from $831 per ounce in H1-2023
to $1,079 per ounce in H1-2024 due to higher processing costs due
to an increased reliance on self-generated power, higher mining
costs due to a reduction in capitalised stripping costs (Houndé,
Sabodala-Massawa and Ity), longer haulage distances at Houndé and
Sabodala-Massawa, increased underground mining costs at Mana, and
lower gold volumes sold.
- As shown in the table below, income
taxes paid increased by $112.0 million from $51.3 million in
Q1-2024 to $163.3 million in Q2-2024 due to an increase in
withholding taxes related to the upstreaming of cash during
Q2-2024, which included an additional round of upstreaming from Ity
and an increase in taxes paid at Ity and Sabodala-Massawa due to
the timing of provisional income tax payments for the FY-2023 and
an increase in taxes paid at Houndé and Mana due to a temporary
contribution of 2% of profits before tax and interest from the
Houndé and Mana mines that became effective in December 2023 in
Burkina Faso.
Income taxes paid increased by $86.6 million from $128.0 million in
H1-2023 to $214.6 million in H1-2024 due largely to the increase in
taxes paid at Sabodala-Massawa and Ity as provisional tax payments
made in H1-2024 were based on the FY-2023 tax base, which considers
higher taxable earnings compared to FY-2022, as well as an increase
in withholding tax payments due to the timing of cash upstreaming
and the above mentioned additional round of upstreaming at Ity
following higher production at higher than budgeted realised gold
prices.
Table 8: Tax Payments from continuing
operations
| |
THREE MONTHS ENDED |
SIX MONTHS ENDED |
|
All amounts in US$ million |
30 June
2024 |
31 March
2024 |
30 June
2023 |
30 June
2024 |
30 June
2023 |
|
Houndé |
17 |
11 |
13 |
28 |
24 |
| Ity |
50 |
— |
32 |
50 |
34 |
| Mana |
3 |
4 |
13 |
7 |
16 |
|
Sabodala-Massawa |
45 |
31 |
46 |
76 |
51 |
|
Other1 |
49 |
6 |
— |
55 |
4 |
|
Taxes paid by continuing operations |
163 |
51 |
104 |
215 |
128 |
1Included in the “Other” category is
income and withholding taxes paid by Corporate and Exploration
entities.
As previously disclosed, 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 investment and de-levering phase. The
prepayments are structured as follows:
-
A $100.0 million prepayment 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 prepayment agreement with ING Bank N.V. is based on
a fixed arrangement for the delivery 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, locking in a financing cost of
approximately $3.0 million.
2) Cashflows used in investing
activities decreased by $16.1 million from $187.5 million in
Q1-2024 to $171.4 million in Q2-2024 due to a decrease in growth
capital spend as growth projects neared completion, an inflow of
$5.2 million related to the sale of Allied Gold shares and a
decrease in sustaining capital due to reduced stripping activity,
partially offset by an increase in non-sustaining capital related
to ongoing initiatives across the Group as detailed below and a
$2.7 million strategic investment into Koulou Gold Corporation.
Cashflows used in investing activities decreased
by $55.8 million from $414.7 million in H1-2023 to $358.9 million
in H1-2024 largely due to a decrease in non-sustaining capital
spend across the group related to reduced pre-stripping activities,
reduced underground development at Mana, reduced spending on
optimisation initiatives and a decrease in sustaining and
non-sustaining capital associated with discontinued operations that
were divested in the prior period, partially offset by an increase
in growth capital spending at the Group’s two organic growth
projects.
-
Sustaining capital from continuing operations decreased from $29.7
million in Q1-2024 to $21.6 million in Q2-2024, largely due to
decreased sustaining capital expenditure at Houndé as waste
stripping activities across the Kari Pump and Vindaloo Main pits
decreased, which was partially offset by increased sustaining
capital expenditure at Sabodala-Massawa related to mining equipment
and fleet rebuilds and at Mana related to increased development
rates at the Siou Underground.
Sustaining capital from continuing operations increased from $49.3
million in H1-2023 to $51.3 million in H1-2024 due to higher
sustaining capital expenditure at Houndé related to increased
stripping and at Mana related to increased underground development,
partially offset by reduced expenditure at Sabodala-Massawa and
Ity.
-
Non-sustaining capital from continuing operations increased from
$41.3 million in Q1-2024 to $51.8 million in Q2-2024, largely due
to an increase at Sabodala-Massawa as spending on the Solar Power
Plant optimisation initiative accelerated and at Ity related to the
construction of the TSF 2 facility and the Mineral Sizer Primary
Crusher optimisation initiative.
Non-sustaining capital from continuing operations decreased from
$143.3 million in H1-2023 to $93.1 million in H1-2024 due to a
decrease at Ity as costs related to the Recyn optimisation
initiative and Le Plaque pre-stripping decreased, at Houndé due to
reduced pre-stripping activities at the Kari Pump pit, and at Mana
due to reduced underground waste development as mining advanced
into ore stopes.
-
Growth capital decreased from $98.7 million in Q1-2024 to $93.4
million in Q2-2024, as cash outflows associated with the
Sabodala-Massawa BIOX® Expansion and Lafigué growth projects
decreased as construction activities approached completion. The
decrease was partially offset by an increase in growth capital
expenditure for work related to the Kalana project.
Growth capital increased from $176.3 million in H1-2023 to $192.1
million in H1-2024 due to the timing of construction activities at
the Sabodala-Massawa BIOX® Expansion, which was launched in
Q2-2022, and the Lafigué development project, which was launched in
Q4-2022.
3) Cash flows used in financing
activities increased by $237.5 million from an inflow of $87.7
million in Q1-2024 to an outflow of $149.8 million in Q2-2024
largely due to the repayment on the Company’s Revolving Credit
Facility (“RCF”) compared to a drawdown in the prior quarter.
Financing cash outflows in Q2-2024 included $70.0 million in
repayments of long-term debt related to repayment of the Company’s
RCF ($575.0 million drawn as at Q2-2024), payment of dividends to
minorities of $36.8 million, payments of financing and other fees
of $29.8 million, acquisition of the Company’s own shares
through its share buyback programme of $7.6 million, payment of
finance and lease obligations of $5.5 million and payments for the
settlement of tracker shares of $0.9 million. Outflows were
partially offset by a $0.8 million inflow related to a drawdown on
the Lafigué Term loan (total amount of $147.3 million drawn as at
Q2-2024).
Cash flows used in financing activities
decreased by $10.9 million from an outflow of $73.0 million in
H1-2023 to an inflow of $62.1 million in H1-2024 largely due to
offsetting differences in the repayment and drawdown of debt
instruments.
4) At quarter end, Endeavour’s cash
and cash equivalents, net of $21.1 million in drawn cash on bank
overdraft facilities, stood at $386.9 million.
5) Endeavour’s net debt position
slightly increased by $4.9 million, from $830.5 million at the end
of Q1-2024 to $835.4 million at the end of Q2-2024, while the
Company’s net debt / Adjusted EBITDA (LTM) leverage ratio remains
healthy at 0.81x at the end of Q2-2024.
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and
adjusted earnings for Endeavour for the three month periods ended
30 June 2024, 31 March 2024, and 30 June 2023, and the six month
periods ended 30 June 2024 and 30 June 2023 with accompanying
explanations below.
Table 9: Earnings from Continuing
Operations
| |
|
THREE MONTHS ENDED |
SIX MONTHS ENDED |
|
All amounts in US$ million unless otherwise specified |
Notes |
30 June
2024 |
31 March
2024 |
30 June
2023 |
30 June
2024 |
30 June
2023 |
|
Revenue |
[6] |
557 |
473 |
524 |
1,030 |
1,005 |
| Operating
expenses |
[7] |
(241) |
(200) |
(202) |
(441) |
(373) |
| Depreciation and
depletion |
[7] |
(128) |
(109) |
(100) |
(237) |
(201) |
|
Royalties |
[8] |
(40) |
(34) |
(32) |
(74) |
(62) |
|
Earnings from mine operations |
|
148 |
130 |
191 |
278 |
369 |
|
Corporate costs |
[9] |
(11) |
(11) |
(14) |
(21) |
(27) |
| Impairment of
mining interests and goodwill |
|
— |
— |
(15) |
— |
(15) |
| Share-based
compensation |
|
(5) |
(4) |
(8) |
(9) |
(17) |
| Other
expense |
[10] |
(31) |
(17) |
3 |
(47) |
(3) |
|
Exploration costs |
[11] |
(4) |
(5) |
(15) |
(10) |
(27) |
|
Earnings from operations |
|
97 |
94 |
142 |
191 |
281 |
|
Loss on financial instruments |
[12] |
(32) |
(46) |
31 |
(78) |
(41) |
| Finance
costs |
|
(26) |
(23) |
(18) |
(50) |
(33) |
|
Earnings before taxes |
|
39 |
24 |
155 |
63 |
207 |
|
Current income tax expense |
[13] |
(135) |
(41) |
(91) |
(176) |
(140) |
| Deferred income
tax recovery |
|
51 |
7 |
37 |
58 |
49 |
|
Net comprehensive (loss)/earnings from continuing
operations |
[14] |
(45) |
(9) |
101 |
(54) |
117 |
|
Add-back adjustments |
[15] |
65 |
66 |
(22) |
131 |
44 |
|
Adjusted net earnings from continuing
operations |
|
20 |
57 |
79 |
77 |
161 |
|
Portion attributable to non-controlling interests |
|
17 |
16 |
26 |
32 |
42 |
|
Adjusted net earnings from continuing operations
attributable to shareholders of the Company |
[16] |
3 |
41 |
54 |
45 |
119 |
|
Adjusted net earnings per share from continuing
operations |
|
0.01 |
0.17 |
0.22 |
0.18 |
0.48 |
NOTES:
6) Revenue increased by $84.1 million
from $472.7 million in Q1-2024 to $556.8 million in Q2-2024 due to
higher volumes of gold sales and a $231 per ounce increase in the
realised gold price from $2,091 per ounce in Q1-2024 to $2,322 per
ounce in Q2-2024, exclusive of the Company’s Revenue Protection
Programme.
Revenue increased by $24.2 million from $1,005.3 million in H1-2023
to $1,029.5 million in H1-2024 due to a higher realised gold price
for H1-2024 of $2,210 per ounce compared to $1,923 per ounce for
H1-2023, exclusive of the Company’s Revenue Protection Programme,
partially offset by lower volumes of gold sold.
7) Operating expenses increased by
$41.3 million from $199.9 million in Q1-2024 to
$241.2 million in Q2-2024 largely due to increased mining
costs at Houndé as a greater proportion of waste stripping was
expensed, higher processing costs across the Group due to increased
reliance on self-generated power at Houndé, Mana and Ity, and at
Sabodala-Massawa driven by the BIOX® Expansion ramp-up activities,
in addition to additional costs associated with the processing of
stockpiles across Ity, Mana and Sabodala-Massawa. Depreciation and
depletion increased by $19.1 million from $108.7 million
in Q1-2024 to $127.8 million in Q2-2024 due to increased
depreciation at Sabodala-Massawa due to increased production and
higher depreciation rates associated with the Sabodala pit and at
Houndé due to increased production, which was partially offset by
decreased depreciation at Mana due to lower quarterly
production.
Operating expenses increased by $67.9 million from
$373.2 million in H1-2023 to $441.1 million in H1-2024
largely due to increased processing costs across the Group,
increased underground mining costs at Mana driven by higher volumes
and increased mining costs at Ity, Houndé and Sabodala-Massawa,
largely reflecting increased diesel consumption and increased drill
and blast activities. Depreciation and depletion increased by
$35.1 million from $201.4 million in H1-2023 to
$236.5 million in H1-2024 due to the lower reserves base of
Ity and Sabodala-Massawa following the December 2023 Reserves and
Resource update, higher Ity production and additional
Sabodala-Massawa depreciation incurred.
8) Royalties increased by
$6.3 million from $33.9 million in Q1-2024 to
$40.2 million in Q2-2024 due to a higher realised gold price
and higher gold production.
Royalties increased by $12.6 million from $61.5 million
in H1-2023 to $74.1 million in H1-2024 due to a higher
realised gold price and the increase to the sliding scale royalty
rate structure in Burkina Faso effective from November 2023,
partially offset by decreased gold production.
9) Corporate costs of $10.9 million
in Q2-2024 were largely consistent with the prior quarter.
Corporate costs decreased from $27.5 million in H1-2023 to
$21.4 million in H1-2024 due to decreased corporate employee
compensation and professional service costs.
10) Other expenses increased by
$13.9 million from $16.6 million in Q1-2024 to
$30.5 million in Q2-2024. For Q2-2024, other expenses included
$12.4 million in expected credit loss provisions related to
outstanding receivables from the divestment of the Group’s 90%
interest in the Boungou and Wahgnion mines, $8.9 million in
legal and other costs primarily related to the ongoing arbitration
process around the non-core asset disposals, $4.0 million in
restructuring costs and costs associated with the demobilisation
from the Maoula open pit and $0.3 million in disturbance
costs, partially offset by a $2.6 million credit in tax claims
related to a temporary contribution of 2% of profits before tax and
interest from the Houndé and Mana mines that became effective in
December 2023 in Burkina Faso which were reclassified to tax
expense.
11) Exploration costs of
$4.3 million in Q2-2024 were largely consistent with the prior
quarter.
Exploration costs decreased from
$27.0 million in H1-2023 to $9.7 million in H1-2024
largely due to a decrease in exploration expense at the Assafou
project on the Tanda-Iguela property, as increasingly, exploration
activities are being capitalised at Assafou following the
commencement of the pre-feasibility study which is expected to be
published in Q4-2024.
12) The loss on financial instruments
decreased from a loss of $46.2 million in Q1-2024 to a loss of
$31.8 million in Q2-2024 largely due to a decrease in unrealised
losses on gold collars and forwards. The loss on financial
instruments during the quarter included an unrealised loss on Net
Smelter Royalties (“NSRs”) and deferred compensation related to
asset sales of $12.3 million, net realised losses on gold collars
and forward contracts of $8.4 million (including $9.0 million
related to the Group’s Revenue Protection Programme partially
offset by a gain of $0.6 million related to the Group’s London
Bullion Market Association (“LBMA”) gold price averaging strategy),
unrealised foreign exchange losses of $8.2 million, an unrealised
loss on marketable securities of $4.0 million, an unrealised loss
on the early redemption feature of senior notes of $0.7 million and
a realised loss on foreign currency contracts of $0.1 million,
partially offset by a $1.5 million unrealised gain on other
financial instruments, unrealised gains on gold collars and forward
sales of $0.3 million and unrealised gains on foreign currency
contracts of $0.1 million.
The loss on financial instruments increased from a loss of $40.9
million in H1-2023 to a loss of $78.0 million in H1-2024, due
largely to unrealised losses in relation to gold hedges, realised
losses on 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 Q2-2024, 35koz were settled into forward sales contracts for
an average gold price of $2,041/oz. For the remainder of FY-2024,
approximately 226koz (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.
-
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 Q2-2024, €5.2 million was delivered into forward contracts
at a blended rate of 1.04 EUR:USD and AU$1.4 million was delivered
into forward contracts at a blended rate of 0.69 AUD:USD.
-
The total outstanding notional forward contracted quantum is
approximately €0.3 million at a blended rate of 1.05 EUR:USD over
2024 and approximately AU$1.0 million at a blended rate of 0.69
AUD:USD.
13) Current income tax expense
increased by $94.5 million from $40.5 million in Q1-2024 to $135.0
million in Q2-2024 largely due to an increase in recognised
withholding tax expenses, which increased by $69.1 million from
$4.5 million in Q1-2024 to $73.6 million in Q2-2024 due to the
timing of local board approvals for cash upstreaming, an increase
in taxes due to higher earnings from Ity and a temporary
contribution of 2% of profits before tax and interest from the
Houndé and Mana mines that became effective in December 2023 in
Burkina Faso.
Current income tax expense increased by $35.9 million from $139.6
million in H1-2023 to $175.5 million in H1-2024 due to an increase
in withholding taxes on dividends paid by operating subsidiaries,
an increase in current income taxes at Houndé and Ity, and
adjustments in respect of the prior year income tax mainly in
relation to the temporary contribution of 2% of net profit after
tax of operating mines in Burkina Faso.
14) Net comprehensive losses from
continuing operations increased by $35.5 million from a net
comprehensive loss of $9.3 million in Q1-2024 to a net
comprehensive loss of $44.8 million in Q2-2024. The increase in
losses is largely driven by a higher tax expense, lower operating
margins, higher royalties and higher depreciation partially offset
by decreased losses on financial instruments.
Net comprehensive earnings from continuing operations decreased by
$170.7 million from net comprehensive earnings of $116.6 million in
H1-2023 to a net comprehensive loss of $54.1 million in H1-2024.
The decrease in earnings was largely driven by lower earnings from
mine operations due to higher tax expense, 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 Q2-2024, adjustments included
other expenses of $30.5 million largely related to legal and other
costs for the ongoing arbitration process, an unrealised loss on
financial instruments of $23.4 million largely related to the
unrealised loss on forward sales and collars, a net loss from
discontinued operations of $6.3 million related to the settlement
of historic liabilities under the sale agreement of the Boungou
mine and a loss on non-cash, tax and other adjustments of $11.2
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 decreased by
$37.7 million from earnings of $40.7 million (or $0.17 per share)
in Q1-2024 to adjusted net earnings of $3.1 million (or $0.01 per
share) in Q2-2024, due to lower operating margins, higher
depreciation, higher royalties and higher tax expenses.
Adjusted net earnings attributable to
shareholders for continuing operations decreased by $73.8 million
from $118.7 million (or $0.48 per share) in H1-2023 to $44.9
million (or $0.18 per share) in H1-2024 due to lower operating
margins, higher tax expenses, higher interest expenses, higher
realised losses on gold forward sales and higher royalties.
SUMMARISED STATEMENT OF FINANCIAL POSITION
The following tables present the summarised
statement of financial position and liquidity for Endeavour, with
accompanying explanations below.
Table 10: Summarised Statement of
Financial Position
|
All amounts in US$ million unless otherwise specified |
Note |
As at 30
June 2024 |
As at 31
March 2024 |
As at 30 June
2023 |
|
ASSETS |
|
|
|
|
| Cash and cash
equivalents |
|
408 |
461 |
845 |
| Other current
assets |
[17] |
628 |
646 |
638 |
|
Total current assets |
|
1,036 |
1,107 |
1,483 |
| Mining
interests |
[18] |
4,291 |
4,236 |
4,113 |
| Other long term
assets |
|
609 |
595 |
500 |
|
TOTAL ASSETS |
|
5,935 |
5,938 |
6,096 |
|
LIABILITIES |
|
|
|
|
| Other current
liabilities |
[19] |
695 |
412 |
406 |
| Current portion
of debt |
|
34 |
23 |
— |
| Overdraft
facility |
|
21 |
— |
— |
| Income taxes
payable |
[20] |
123 |
151 |
244 |
|
Total current liabilities |
|
872 |
586 |
649 |
| Long-term
debt |
[21] |
1,194 |
1,281 |
1,004 |
| Environmental
rehabilitation provision |
|
113 |
116 |
131 |
| Other long-term
liabilities |
|
72 |
74 |
42 |
| Deferred income
taxes |
|
406 |
457 |
472 |
|
TOTAL LIABILITIES |
|
2,657 |
2,515 |
2,299 |
|
TOTAL EQUITY |
|
3,278 |
3,423 |
3,797 |
|
TOTAL EQUITY AND LIABILITIES |
|
5,935 |
5,938 |
6,096 |
|
|
|
|
|
|
NOTES:
17) Other current assets at the end
of Q2-2024 consisted of $280.5 million of current inventories,
$246.3 million of trade and other receivables, $54.3 million of
prepaid expenses and other and $46.4 million of other financial
assets.
-
The current portion of inventories increased by $30.6 million from
$249.9 million at the end of Q1-2024 to $280.5 million at the end
of Q2-2024, largely due to an increase in finished gold due to the
timing of the gold sales and an increase in stockpiles, gold in
circuit and supplies at the Sabodala-Massawa BIOX® Expansion and
Lafigué projects ahead of their ramp-ups to nameplate
capacity.
-
Trade and other receivables decreased by $37.2 million from $283.5
million at the end of Q1-2024 to $246.3 million at the end of
Q2-2024, largely due to a reduction in gold sales receivable as a
result of timing differences in the sales of gold doré and receipt
of proceeds.
-
Prepaid expenses and other increased by $14.1 million from
$40.2 million at the end of Q1-2024 to $54.3 million at the end of
Q2-2024, due to the timing of payments.
-
Other financial assets decreased by $25.9 million from $72.3
million at the end of Q1-2024 to $46.4 million at the end of
Q2-2024, largely due to the sale of Allied Gold shares during the
quarter.
18) Mining interests increased by
$54.6 million from $4,236.0 million at the end of Q1-2024 to
$4,290.6 million at the end of Q2-2024 due to increased capitalised
costs incurred during the quarter as detailed in the above section,
partly offset by increased depreciation and depletion.
19) Other current liabilities
increased by $283.0 million from $411.5 million at the end of
Q1-2024 to $694.5 million at the end of Q2-2024, largely due to the
addition of the $150.0 million gold pre-payment into deferred
revenue (details included in the above section). Other current
liabilities consist of $497.6 million in trade and other payables,
$150.0 million in deferred revenue related to the gold pre-payment,
$29.6 million related to the current portion of financial
derivatives and $17.3 million related to the current portion of
equipment financing obligations.
20) Income taxes payable decreased by
$28.4 million from $151.3 million at the end of Q1-2024 to $122.9
million at the end of Q2-2024, largely due to the increased taxes
paid during the quarter.
21) Long-term debt decreased by $87.8
million from $1,281.3 million at the end of Q1-2024 to $1,193.5
million at the end of Q2-2024 due to the repayment on the Company’s
RCF during the quarter. Total debt at the end of Q2-2024 consisted
of $575.0 million drawn on the RCF, $498.9 million in senior notes,
$147.3 million in term loan financing and $9.8 million in interest
accruals partially offset by $5.2 million in deferred financing
costs, of which $33.6 million was deemed to be the current portion
of debt.
Table 11: Summarised Statement of
Financial Position
| |
|
THREE MONTHS ENDED |
|
All amounts in US$ million unless otherwise specified |
|
30 June
2024 |
31 March
2024 |
30 June
2023 |
|
Cash and cash equivalents |
[22] |
408 |
461 |
845 |
| Principal amount
of $500m Senior Notes |
|
500 |
500 |
500 |
| Drawn portion of
$645m Revolving Credit Facility |
|
575 |
645 |
515 |
| Local term loan
financing |
|
147 |
147 |
— |
|
Drawn portion of overdraft facility |
|
21 |
— |
— |
|
Net Debt1 |
[23] |
835 |
831 |
171 |
|
Trailing twelve month adjusted EBITDA1,2 |
|
1,028 |
1,101 |
1,104 |
|
Net Debt / Adjusted EBITDA (LTM)
ratio1,2 |
|
0.81x |
0.80x |
0.15x |
1Net 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. 2Last Twelve Months
(“LTM”) Trailing EBITDA adj. includes EBITDA generated by
discontinued operations
22) At quarter end, Endeavour’s
liquidity remained strong at $476.6 million, consisting of $386.9
million of cash and cash equivalents, $70.0 million available
through the Company’s RCF and $19.7 million available through the
Lafigué Term Loan.
23) Endeavour’s net debt position
slightly increased by $4.9 million, from $830.5 million at the end
of Q1-2024 to $835.4 million at the end of Q2-2024, while the
Company’s net debt / Adjusted EBITDA (LTM) leverage ratio remains
healthy, albeit above its long-term target of 0.50x, at 0.81x at
the end of Q2-2024. As the Company’s growth projects ramp up,
leverage is expected to quickly return to levels below the
long-term target.
OPERATING ACTIVITIES BY
MINE
Houndé Gold Mine, Burkina
Faso
Table 12: Houndé Performance
Indicators
|
For The Period Ended |
Q2-2024 |
Q1-2024 |
Q2-2023 |
|
H1-2024 |
H1-2023 |
|
Tonnes ore mined, kt |
1,301 |
724 |
1,479 |
|
2,025 |
2,712 |
| Total tonnes
mined, kt |
11,619 |
11,097 |
11,837 |
|
22,716 |
25,084 |
| Strip ratio
(incl. waste cap) |
7.93 |
14.33 |
7.00 |
|
10.00 |
8.25 |
| Tonnes milled,
kt |
1,313 |
1,082 |
1,419 |
|
2,395 |
2,789 |
| Grade, g/t |
1.70 |
1.35 |
1.66 |
|
1.54 |
1.42 |
| Recovery rate,
% |
87 |
89 |
94 |
|
88 |
93 |
|
Production, koz |
64 |
42 |
72 |
|
106 |
119 |
|
Total cash cost/oz |
1,340 |
1,120 |
955 |
|
1,249 |
951 |
|
AISC/oz |
1,472 |
1,572 |
1,085 |
|
1,514 |
1,113 |
Q2-2024 vs Q1-2024 Insights
-
Production increased from 42koz in Q1-2024 to 64koz in Q2-2024 due
to higher average grades milled and higher tonnes milled, partially
offset by a decrease in recovery rates.
-
Total tonnes mined increased due to increased mining fleet
utilisation following the 11-day strike in the prior period, which
impacted mining activities. Tonnes of ore mined increased in the
Kari Pump and Vindaloo Main pits following waste stripping
activities that were prioritised in the prior quarter, which opened
access to new ore faces.
-
Tonnes milled increased due to higher mill utilisation following
the 11-day strike in the prior period which impacted processing
activities.
-
Average processed grades increased due to a higher proportion of
high grade, fresh ore sourced from the Kari Pump and Vindaloo Main
pits in the mill feed.
-
Recovery rates decreased due to the increased proportion of Kari
Pump ore in the mill feed, which has localised carbonaceous
material resulting in slightly lower associated recoveries.
-
AISC decreased from $1,572/oz in Q1-2024 to $1,472/oz in Q2-2024
due to the higher volume of gold sold and lower sustaining capital
due to lower waste stripping, partially offset by increased
processing costs due to an increased reliance on self-generated
power as detailed in the Operating Summary section above.
-
Sustaining capital expenditure decreased from $19.4 million in
Q1-2024 to $8.0 million in Q2-2024 and related primarily to the
purchase of new heavy mining equipment and waste development in the
Kari Pump pit.
-
Non-sustaining capital expenditure decreased from $2.0 million in
Q1-2024 to $1.6 million in Q2-2024 and primarily related to the
ongoing TSF Stage 8 and 9 embankment raises.
H1-2024 vs H1-2023 Insights
-
Production decreased from 119koz in H1-2023 to 106koz in H1-2024
primarily due to lower tonnes milled as a result of the 11-day
strike in Q1-2024 resulting in a temporary stoppage to mining and
processing and lower recovery rates due to an increased proportion
of fresh ore with lower associated recoveries in the ore blend,
partially offset by higher processed grades due to relatively
higher grade ore sourced from the Vindaloo Main pit compared to
H1-2023.
-
AISC increased from $1,113/oz in H1-2023 to $1,514/oz in H1-2024
due to higher processing unit costs due to the increased use of
higher cost self-generated power, lower volumes of gold sold and
increased sustaining capital due to increased sustaining waste
development activities and higher fleet capital acquired.
FY-2024
Outlook
-
Houndé is on track to achieve its FY-2024 production guidance of
260koz - 290koz at an AISC between $1,000 - $1,100/oz. As
previously guided, production is expected to be strongly H2-2024
weighted with AISC improving as greater volumes of higher-grade ore
are expected to be mined in H2-2024.
-
In H2-2024, production is expected to increase as greater volumes
of high-grade ore are expected to be sourced from both the Vindaloo
Main and Kari Pump pits following completion of the current phase
of stripping. Throughput and recoveries are expected to remain
largely consistent while average grades processed are expected to
increase. Increased production and power availability are expected
to support improvements in AISC in H2-2024.
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $40.0 million, of which $27.4 million has
been incurred in H1-2024, and is mainly related to waste stripping
activity, fleet additionas and re-builds and plant equipment
upgrades.
- Non-sustaining
capital expenditure for FY-2024 is expected to be $10.0 million, a
decrease on the previously guided $20.0 million due to the
deferral of land compensation related to the TSF cell 3
construction, to later in the year and early next year due to lower
H1-2024 production caused by the 11-day strike that occurred in
Q1-2024. As of H1-2024, $3.6 million has been incurred, mainly
related to the ongoing TSF Stage 8 and 9 embankment raise.
Ity Gold Mine, Côte
d’Ivoire
Table 13: Ity Performance
Indicators
|
For The Period Ended |
Q2-2024 |
Q1-2024 |
Q2-2023 |
|
H1-2024 |
H1-2023 |
|
Tonnes ore mined, kt |
1,840 |
1,825 |
1,887 |
|
3,665 |
3,823 |
| Total tonnes
mined, kt |
7,132 |
7,406 |
7,156 |
|
14,538 |
14,521 |
| Strip ratio
(incl. waste cap) |
2.88 |
3.06 |
2.79 |
|
2.97 |
2.80 |
| Tonnes milled,
kt |
1,761 |
1,775 |
1,808 |
|
3,536 |
3,627 |
| Grade, g/t |
1.79 |
1.68 |
1.61 |
|
1.74 |
1.65 |
| Recovery rate,
% |
92 |
90 |
92 |
|
91 |
92 |
|
Production, koz |
96 |
86 |
86 |
|
182 |
177 |
|
Total cash cost/oz |
869 |
858 |
761 |
|
863 |
736 |
|
AISC/oz |
885 |
884 |
797 |
|
885 |
764 |
Q2-2024 vs Q1-2024 Insights
-
Production increased from 86koz in Q1-2024 to 96koz in Q2-2024 due
to higher average grades processed and higher recovery rates,
partially offset by a slight decrease in tonnes of ore milled.
-
Total tonnes mined decreased slightly due to lower fleet
availability. Mining activities focused on the Ity, Walter,
Bakatouo, Verse Ouest and Le Plaque pits with some supplemental
contributions from historical stockpiles. Tonnes of ore mined
increased due to a decrease in strip ratio and lower volumes of
waste mining in line with the mine sequence.
-
Tonnes milled decreased slightly due to lower mill utilisation
following minor feed chute blockages experienced during the
quarter.
-
Average processed grades increased due to higher grade ore sourced
from the Ity and Le Plaque pits in the mill feed, partially offset
by lower grade ore sourced from the Walter pit.
-
Recovery rates increased due to a decrease in semi-refractory ore
from the Daapleu pit in the ore blend, which has lower associated
recoveries.
-
AISC was stable at $885/oz in Q2-2024 as an increase in processing
unit costs due to an increased reliance on self-generated power and
higher mining costs reflecting increased grade control drilling and
drill and blast activity, largely offset by increased volumes of
gold sold and a decrease in sustaining capital.
-
Sustaining capital expenditure decreased from $2.3 million in
Q1-2024 to $1.6 million in Q2-2024 and primarily related to
the purchase of capital spares, dewatering borehole drilling and
site infrastructure upgrades.
-
Non-sustaining capital expenditure increased from
$16.2 million in Q1-2024 to $18.5 million in Q2-2024 and
primarily related to the ongoing construction of the TSF 2 and the
Mineral Sizer Primary Crusher optimisation initiative.
H1-2024 vs H1-2023 Insights
-
Production increased from 177koz in H1-2023 to 182koz in H1-2024
due to higher average grades processed as higher-grade ore was
sourced from the Ity, Le Plaque and Walter pits, partially offset
by lower throughput due to lower availability in the plant and
slightly lower recoveries associated with the processing of
semi-refractory material from Daapleu in Q1-2024.
-
AISC increased from $764/oz in H1-2023 to $885 per ounce in H1-2024
due to an increase in processing unit costs associated with the
increased reliance on self-generated power, the commissioning of
the Recyn circuit and increased mining unit costs due to longer
haulage distances, partially offset by an increase in gold volumes
sold.
FY-2024
Outlook
-
Given the strong H1-2024 performance, Ity is on track to achieve
above the top end of its FY-2024 production guidance of 270 -
300koz at its AISC guidance of between $850 - $925/oz. As
previously guided, production is expected to be H1-2024 weighted,
in line with the mine plan, due to lower availability of high-grade
ore from the Ity and Bakatouo pits and the impact of the wet season
in H2-2024.
-
In H2-2024, ore is expected to be sourced from the Le Plaque,
Walter, Bakatouo and Ity pits with supplemental ore sourced from
stockpiles. Mining and throughput rates are expected to decrease
due to the impact of the wet season on mining rates and mill
utilisation, while grades are expected to decrease due to a reduced
proportion of high-grade ore from the Ity and Bakatouo pits, in
line with mine sequencing, while recoveries are expected to be
broadly consistent.
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $10.0 million, of which $3.9 million has
been incurred in H1-2024, 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 $34.7 million has been incurred
in H1-2024, and is mainly related to pre-stripping activities, TSF
2 construction and site infrastructure, in addition to the ongoing
Mineral Sizer Primary Crusher optimisation initiative.
Mana Gold Mine, Burkina
Faso
Table 14: Mana Performance
Indicators
|
For The Period Ended |
Q2-2024 |
Q1-2024 |
Q2-2023 |
|
H1-2024 |
H1-2023 |
|
OP tonnes ore mined, kt |
66 |
119 |
409 |
|
185 |
832 |
| OP total tonnes
mined, kt |
219 |
711 |
1,904 |
|
930 |
3,686 |
| OP strip ratio
(incl. waste cap) |
2.32 |
4.97 |
3.65 |
|
4.00 |
3.43 |
| UG tonnes ore
mined, kt |
429 |
446 |
280 |
|
875 |
533 |
| Tonnes milled,
kt |
554 |
621 |
671 |
|
1,175 |
1,285 |
| Grade, g/t |
2.10 |
2.31 |
1.61 |
|
2.21 |
1.96 |
| Recovery rate,
% |
89 |
88 |
91 |
|
88 |
93 |
|
Production, koz |
35 |
42 |
31 |
|
77 |
75 |
|
Total cash cost/oz |
1,729 |
1,345 |
1,403 |
|
1,513 |
1,195 |
|
AISC/oz |
1,927 |
1,453 |
1,481 |
|
1,661 |
1,277 |
Q2-2024 vs Q1-2024 Insights
-
Production decreased from 42koz in Q1-2024 to 35koz in Q2-2024 due
to lower tonnes milled and lower average grades processed.
-
Total open pit tonnes mined decreased as mining activities at the
Maoula open pit were completed during the quarter.
-
Total underground tonnes of ore mined decreased as stoping
production decreased slightly, in-line with underground mine
sequencing. Development rates continued to accelerate across both
the Wona and Siou Underground deposits with a total of 4,057 metres
completed, an increase of 28% compared to the 3,169 metres in the
prior quarter.
-
Tonnes milled decreased, in line with the mine sequence, as the
tonnes of ore mined transitioned away from the Maoula open pit to
the Siou and Wona underground deposits.
-
Average grades processed decreased due to mining and processing of
lower grade ore sourced from the Siou underground, partially offset
by increased grades from the Wona underground.
-
Recovery rates were consistent with the prior quarter.
-
AISC increased from $1,453/oz in Q1-2024 to $1,927/oz in Q2-2024
due to lower gold volumes sold, increased open pit mining costs due
to lower volumes of material moved, increased sustaining capital
and increased processing unit costs due to increased reliance on
self-generated power as detailed in the Operating Summary section
above.
-
Sustaining capital expenditure increased from $4.6 million in
Q1-2024 to $6.6 million in Q2-2024 and primarily related to
capitalised underground development at Siou.
-
Non-sustaining capital expenditure increased from
$14.1 million in Q1-2024 to $15.0 million in Q2-2024 and
primarily related to capitalised underground development at Wona
and the stage 5 TSF embankment raise.
H1-2024 vs H1-2023 Insights
-
Production increased slightly from 75koz in H1-2023 to 77koz in
H1-2024 largely due to higher average grades processed, reflecting
a higher proportion of underground ore sourced from the Wona
underground deposit in the mill feed, partially offset by lower
tonnes milled and lower recoveries reflecting a lower proportion of
ore sourced from the Maoula open pit, which has higher associated
recoveries.
-
AISC increased from $1,277/oz in H1-2023 to $1,661/oz in H1-2024
due to increased underground mining activities, increased
processing unit costs due to an increased reliance on
self-generated power and increased sustaining capital due to
increased capitalised waste development.
FY-2024 Outlook
-
Mana is on track to achieve its FY-2024 production guidance of 150
- 170koz at an AISC near the top end of the $1,200 - $1,300/oz
guided range. 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 H2-2024, production is expected to increase as increased
underground development rates are expected to enable access to more
stopes from the Wona underground deposit, supplemented by
consistent stope production from the Siou underground deposit.
Average grades processed are expected to increase as a higher
proportion of underground ore from stopes is expected in the mill
feed, while total tonnes milled is expected to be stable as open
pit ore feed is replaced by ore from the underground.
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $15.0 million, of which $11.2 million has
been incurred in H1-2024, and is primarily related to capitalised
underground development activities at the Siou underground.
- Non-sustaining
capital expenditure for FY-2024 is expected to be $40.0 million, an
increase on the previously guided $30.0 million, due to
additional development and infrastructure in the Wona underground
mine as production ramps up. $29.1 million has been incurred
in H1-2024, and is related primarily to development at the Wona
underground, associated infrastructure and the stage 5 TSF
embankment raise.
Sabodala-Massawa Gold Mine,
Senegal
Table 15: Sabodala-Massawa
Performance Indicators
|
For The Period Ended |
Q2-2024 |
Q1-2024 |
Q2-2023 |
|
H1-2024 |
H1-2023 |
|
Tonnes ore mined, kt |
1,491 |
1,346 |
1,341 |
|
2,837 |
2,576 |
| Total tonnes
mined, kt |
10,130 |
10,447 |
11,428 |
|
20,577 |
22,635 |
| Strip ratio
(incl. waste cap) |
5.79 |
6.76 |
7.52 |
|
6.25 |
7.79 |
| Tonnes milled -
Total, kt |
1,319 |
1,180 |
1,201 |
|
2,499 |
2,325 |
|
Tonnes milled - CIL, kt |
1,183 |
1,165 |
1,201 |
|
2,348 |
2,325 |
|
Tonnes milled - BIOX, kt |
136 |
15 |
— |
|
151 |
— |
| Grade - Total,
g/t |
1.70 |
1.63 |
2.17 |
|
1.67 |
2.11 |
|
Grade - CIL, g/t |
1.57 |
1.63 |
2.17 |
|
1.61 |
2.11 |
|
Grade - BIOX, g/t |
2.82 |
2.61 |
— |
|
2.82 |
— |
| Recovery rate -
Total, % |
77 |
83 |
90 |
|
80 |
89 |
|
Recovery rate - CIL, % |
81 |
83 |
90 |
|
82 |
89 |
|
Recovery rate - BIOX, % |
59 |
— |
— |
|
59 |
— |
|
Production, koz |
57 |
49 |
79 |
|
105 |
140 |
|
Production - CIL, koz |
50 |
49 |
79 |
|
99 |
140 |
|
Production - BIOX, koz |
6 |
— |
— |
|
6 |
— |
|
Total cash cost/oz |
1,057 |
890 |
689 |
|
968 |
656 |
|
AISC1/oz |
1,164 |
947 |
762 |
|
1,050 |
774 |
1All-in Sustaining Cost
excludes costs and ounces sold related to pre-commercial production
at the Sabodala-Massawa BIOX® Expansion.
Q2-2024 vs Q1-2024 Insights
-
Production increased from 49koz in Q1-2024 to 57koz in Q2-2024 due
to increased tonnes milled and average grades processed, partially
offset by decreased recovery rates due to the ongoing ramp-up of
the BIOX® plant.
-
Total tonnes mined decreased due to a reduction in the volumes of
waste mined at the Niakafiri East pit. Tonnes of ore mined
increased as higher volumes were extracted from the Sabodala, Sofia
North Extension and Niakafiri East pits, which was partially offset
by decreased tonnage from the Massawa Central Zone, in-line with
the mine sequence.
-
Total tonnes milled increased slightly following the start-up of
the BIOX® plant. Tonnes milled through the CIL plant decreased
slightly as the ore blend contained increased proportions of harder
fresh ore from the Sabodala pit.
-
Average processed grades increased following the start-up of the
BIOX® plant and the processing of higher grade refractory ore,
which was was partially offset by lower grades from the Sabodala
and Massawa Central Zone pits processed through the CIL plant
during the quarter.
- Recovery rates decreased due to the impact of the ramp up the
newly commissioned BIOX® plant, which takes between three to five
months to reach steady state throughput, flotation, BIOX® and CIL
performance, as well as the impact of lower grade ores from the
Sabodala pit, and semi-refractory ores from the Massawa Central
Zone pit, which both have lower associated recoveries in the CIL
plant.
-
AISC increased from $947/oz in Q1-2024 to $1,164/oz in Q2-2024 due
to higher mining unit costs driven by longer haulage distances,
lower volumes of gold sold and increased sustaining capital due to
heavy mining equipment upgrades.
-
Sustaining capital expenditure increased from $2.9 million in
Q1-2024 to $4.9 million in Q2-2024 and primarily related to
ongoing mining equipment rebuilds and geotechnical work.
-
Non-sustaining capital expenditure, excluding expenditure on the
solar power plant, decreased from $1.3 million in Q1-2024 to
$0.7 million in Q2-2024 and was mainly related to the haul
road to the new Kiesta deposits..
-
Non-sustaining capital expenditure for the solar power plant
increased from $6.8 million in Q1-2024 to $14.9 million in Q2-2024
and was mainly related to engineering work and construction
activities.
H1-2024 vs H1-2023 Insights
-
Production decreased from 140koz in H1-2023 to 105koz in H1-2024
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
semi-refractory ore from the Massawa pits into the CIL mill feed,
which was partially offset by an increase in tonnes milled.
-
AISC increased from $774/oz in H1-2023 to $1,050/oz in H1-2024 due
to lower volumes of gold sales and an increase in mining unit costs
due to increased 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
-
Following mining and processing of lower than expected grades with
lower associated recoveries through the CIL plant in H1-2024,
Sabodala-Massawa production is expected to be below the bottom end
of its production guidance of 360koz - 400koz at an AISC above the
top end of its $750 - $850/oz guidance range. During H1-2024, lower
than expected non-refractory ore grades were mined from the
Sabodala pit, as the pit is rapidly advanced towards depletion so
that it can be used for in-pit tailings deposition next year.
Furthermore, higher grade semi-refractory ore from the Massawa
Central Zone pit was blended through the CIL plant, to support
higher grades, though this also drives lower overall recoveries in
the CIL plant in H1-2024. As previously guided, production is
expected to be strongly H2-2024 weighted following the ramp-up of
the BIOX® expansion project through H2-2024.
-
In H2-2024, ore for the CIL processing plant is expected to
continue to be sourced from the Sabodala, Niakafiri East and Sofia
North Extension pits, in addition to higher-grade ore from the the
Kiesta C deposit and potentially the Niakafiri West deposit as
well, where development is being accelerated with grade control
drilling underway ahead of pre-stripping, to incorporate them into
the mine plan this year. Throughput and recovery rates are expected
to remain largely consistent with H1-2024, while grades are
expected to improve with the introduction of high-grade ore from
Kiesta C and Niakafiri West deposits.
-
Refractory ore for the BIOX® plant is expected to be primarily
sourced from the Massawa Central Zone pits where mining activities
will accelerate to access fresher ore at depth, which has higher
expected recovery rates. Pre-stripping at the Massawa North Zone.
Throughput rates, currently at c.50% of nameplate capacity, are
expected to ramp-up to nameplate capacity, with commercial
production expected to be achieved in Q3-2024. Grades are expected
to improve through the ramp up as higher-grade refractory ore is
fed to the plant.
-
Sustaining capital expenditure outlook for FY-2024 remains
unchanged at $35.0 million, of which $7.8 million has
been incurred in H1-2024, and is primarily related to capitalised
waste stripping at the Massawa Central and Massawa North Zone pits
and heavy mining replacement equipment and rebuilds.
-
Non-sustaining capital expenditure outlook for FY-2024 remains
unchanged at $40.0 million, of which $2.0 million has
been incurred in H1-2024, and is primarily related to purchases of
new mining equipment in H2-2024, , advanced grade control and
infrastructure at the Kiesta deposit and the TSF 1 embankment
raise.
-
Non-sustaining capital expenditure outlook for FY-2024 associated
with the solar power plant remains unchanged at $45.0 million, of
which $21.7 million has been incurred in H1-2024, with additional
details provided in the Solar Power Plant section below.
-
Growth capital expenditure outlook for FY-2024 remains unchanged at
$75.0 million, of which $56.9 million was incurred in H1-2024
related to the BIOX® Expansion project.
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 $40.4 million, or 73%, has been committed, with
pricing in line with expectations. $27.4 million, or 50%, of the
capital cost has been incurred as at the end of Q2-2024, of which,
$15.0 million was incurred in Q2-2024 and $45.0 million is expected
to be incurred in FY-2024.
-
Progress regarding the critical path items is detailed below:
-
Engineering, procurement, manufacturing and shipping are now
largely completed
-
On site earthworks are now largely completed
-
Civil works for the transmission line are underway
-
All 12,500 holes for support posts have been drilled and concreting
of posts is advancing well
-
The first few solar panel segments have been installed
Lafigué Mine, Côte d’Ivoire
Table 16: Lafigué Performance
Indicators
|
For The Period Ended |
Q2-2024 |
Q1-2024 |
Q2-2023 |
|
H1-2024 |
H1-2023 |
|
Tonnes ore mined, kt |
1,024 |
816 |
— |
|
1,840 |
— |
| Total tonnes
mined, kt |
9,296 |
8,832 |
— |
|
18,128 |
— |
| Strip ratio
(incl. waste cap) |
8.08 |
9.82 |
— |
|
8.85 |
— |
| Tonnes milled,
kt |
84 |
— |
— |
|
84 |
— |
| Grade, g/t |
1.02 |
— |
— |
|
1.03 |
— |
| Recovery rate,
% |
89 |
— |
— |
|
89 |
— |
|
Production, koz |
0.5 |
— |
— |
|
0.5 |
— |
Q2-2024 vs Q1-2024 Insights
-
As previously announced, first gold at the Lafigué mine was poured
on 28 June 2024, only 21 months after construction launch, marking
the successful delivery of the project construction on budget and a
quarter ahead of schedule.
- Mining activities
continue to ramp-up with 18,128kt of total material moved to date
including 1,840kt of ore, of which 9,296kt was moved during Q2-2024
including 1,024kt of ore. Mining activities are focused on the
western and eastern flanks of the Lafigué Main pit as well as
smaller volumes in the West pit.
-
84kt of ore was milled during the quarter as commissioning
activities ramped up before the first gold pour at the end of the
quarter. Commercial production at the Lafigué mine is expected in
Q3-2024, with the project expected to reach its nameplate capacity
of 4.0Mtpa in Q3-2024.
FY-2024 Outlook
-
Lafigué remains on track 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.
-
In H2-2024, mining activities are expected to continue across the
western and eastern flanks of the Lafigué Main pit, as well as the
West pit. Total mined tonnes are expected to continue to ramp-up
through the year as the fleet is progressively mobilised in line
with the projected increases in mining rates. Throughput rates are
expected to increase, with nameplate capacity expected to be
reached in Q3-2024. Average processed grades are expected to
increase through the ramp-up period as mining advances into zones
of fresh ore. Recovery rates are expected to increase as the
processing plant ramps up and stabilises.
-
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.
-
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 embankment raise in H2-2024, and waste stripping activity in
the eastern flank of the Lafigué pit.
-
Growth capital expenditure for the project is approximately $448.0
million, of which $413.6 million, or 92% of the growth capital has
been incurred to date, of which $59.5 million was incurred in
Q2-2024 ($116.2 million incurred in H1-2024) with $170.0 million
expected to be incurred in FY-2024. The incurred spend is mainly
related to ongoing construction activities at the process plant,
site infrastructure and pre-commercial production commissioning
activities.
EXPLORATION ACTIVITIES
-
Endeavour continues to advance its extensive FY-2024 exploration
programme with $55.7 million spent in H1-2024 comprising
269,467 meters of drilling across more than 2,648 drillholes. The
exploration programme has focused 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.
-
Owing to the success of the exploration programme at Houndé and
Ity, and the focus on identifying high-grade non-refractory
opportunities at Sabodala-Massawa, Endeavour has increased its
exploration guidance for the full-year from $65.0 million to
$77.0 million, of which $55.7 million was spent in
H1-2024, with $30.9 million incurred in Q2-2024.
-
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 $25/oz.
Table 17: Q2-2024 and H1-2024
Exploration Expenditure and 2024
Guidance1
| |
Q2-2024 ACTUAL
|
H1-2024 ACTUAL
|
ORIGINAL FY-2024 GUIDANCE
|
REVISED FY-2024 GUIDANCE
|
| All amounts
in US$ million |
|
Houndé mine |
4.7 |
7.0 |
7.0 |
10.0 |
| Ity mine |
3.7 |
8.3 |
10.0 |
15.0 |
| Mana mine |
1.1 |
1.5 |
2.0 |
2.0 |
| Sabodala-Massawa
mine |
11.4 |
21.8 |
21.0 |
25.0 |
| Lafigué
project |
0.6 |
1.5 |
4.0 |
4.0 |
| Tanda-Iguela
Project |
5.0 |
9.7 |
15.0 |
15.0 |
|
Greenfields |
4.4 |
5.9 |
6.0 |
6.0 |
|
TOTAL |
30.9 |
55.7 |
65.0 |
77.0 |
1Exploration expenditures include
expensed, sustaining and non-sustaining exploration
expenditures.
Houndé mine
-
An exploration programme of $7.0 million was initially planned
for FY-2024, of which $7.0 million has been spent year to date
with $4.7 million spent in Q2-2024 consisting of 13,808 meters
of drilling across 457 drill holes. Following encouraging H1-2024
results at the Vindaloo Deeps deposit, the FY-2024 programme has
been increased to $10.0 million, with an updated resource for
the Vindaloo Deeps deposit expected in FY-2025.
-
During Q2-2024, drilling continued to test the high-grade
continuity of mineralisation at the Vindaloo Deeps deposit, which
continued to return high-grade results and a preliminary geological
model was built to assist with the understanding of the
mineralisation style and geometry at depth. Separately, drilling of
the north-western extension of the Kari Pump deposit continued with
preliminary results indicating that the mineralisation remains open
at depth in the northwest.
-
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 Main, Koho East and Vindaloo North deposits to
improve resource definition.
Ity mine
-
An exploration programme of $10.0 million was initially
planned for FY-2024, of which $8.3 million has been spent year
to date and $3.7 million was spent in Q2-2024, consisting of
21,090 metres of drilling across 543 drill holes. Following success
of resource to reserve conversion and resource growth within the
Ity “doughnut”, the FY-2024 programme has been increased to
$15.0 million. The exploration programme remains 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 the
Yopleu-Legaleu deposit and neighbouring Delta Southeast target, to
test the known mineralisation along strike and depth. Additionally,
reconnaissance and delineation work is continuing at several
targets on the Ity belt, including Gbampleu, Morgan and Goleu.
-
During Q2-2024, near-mine drilling continued on the northwest sides
of the Bakatouo, Zia, and Mont Ity deposits, which confirmed the
down-dip continuity of mineralisation underneath the 2023 resource
pit shell. Drilling results from the Delta Southeast, Morgan and
Goleu targets have confirmed that mineralised veins are open
along-strike and at depth.
-
During the remainder of the year, drilling will continue at Zia,
Yopleu-Legaleu and Delta Southeast, focussed on delineating
additional resources, while regional exploration will continue to
evaluate the potential of Gbampleu, Goleu, Mahapleu and Morgan
targets.
Mana mine
-
An exploration programme of $2.0 million is planned for
FY-2024, of which $1.5 million has been spent year to date and
$1.1 million was spent in Q2-2024, consisting of 7,300 metres
of drilling across 256 drill holes. The exploration programme is
focused on delineating near mine, high 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 Q2-2024, the continuation of trenching at the Bana and Nyafé
South targets identified a mineralised trend extending for over 750
meters at the Bana target and a drilling programme has commenced to
follow up on these encouraging results and delineate this
mineralised trend. In addition, fieldwork focused on the collection
and interpretation of soil geochemical sampling, regolith sampling
data and geological mapping in the Momina and Fofina areas, to
support the ongoing new desktop target generation work.
-
During the remainder of the year, the exploration programme will
focus on completing the drilling programme at the Bana target and
completing the desktop targeting exercise to define additional
drilling targets in the Momina and Bana areas.
Sabodala-Massawa mine
-
An exploration programme of $21.0 million was initially
planned for FY-2024, of which $21.8 million has been spent
year to date including $11.4 million spent in Q2-2024
consisting of 62,281 meters of drilling across 1,133 drill holes.
The FY-2024 programme has been increased to $25.0 million due
to the increased focus on the identification and incorporation of
high grade non-refractory resources into the near term mine plan
including the Kiesta C and Niakafiri West deposits. The programme
is also focused on expanding near-mine non-refractory oxide and
refractory resources across the Niakafiri, Sabodala,
Kerekounda-Golouma and Massawa deposits, while testing new targets,
such as the Kawsara target, on the Kanoumba complex located south
of the Massawa permit. Reconnaissance drilling will also continue
across the recently acquired Niamaya permit located north of the
Delya deposit, along trend of the regional Main Transcurrent Zone
(“MTZ”) structure which hosts the Massawa and Delya deposits.
-
During Q2-2024, exploration activities focused on testing the
extension of high-grade mineralised veins northward at the
Niakafiri and Golouma deposits. At Kerekounda, geophysical
anomalies were tested to identify additional underground targets
for follow-up. At the Massawa North Zone, drilling continued to
test the down-dip extension of mineralisation below the current pit
shell to assess the future underground potential of the refractory
resource.
-
During the remainder of the year, the exploration programme will
continue to focus on defining the near-mine, high-grade
non-refractory resources at Kiesta C and Niakafiri West in order to
bring them into the mine plan ahead of schedule, adding higher
grade non-refractory ores in the FY-2024 mine plan. The exploration
programme will also continue to expand the non-refractory and
refractory resources across the Niakafiri, Sabodala,
Kerekounda-Golouma and Massawa deposits. Additionally, further
reconnaissance is planned with electromagnetic and ground
geophysics over new targets on the MTZ across the Massawa, Kanoumba
and Niamaya permit areas.
Lafigué mine
- An exploration programme of
$4.0 million is planned for FY-2024, of which
$1.5 million has been spent year to date and $0.6 million
was spent in Q2-2024 consisting of 2,145 meters of drilling across
16 drill holes. The exploration programme is focused on the WA05,
Central Area 11 and 12 targets, all located within 5 kilometres of
the Lafigué deposit, as well as investigating the potential for
deep mineralisation underneath the current Lafigué pitshell.
-
During Q2-2024, infill drilling was conducted on the Central Area
targets with preliminary results confirming continuity of the
mineralised veins. In parallel, grade control drilling continued to
advance ahead of mining at the Lafigué deposit.
-
During the remainder of the year, the drilling programme will
largely focus on deep drilling to investigate the potential for
deep mineralisation and grade control drilling at the Lafigué
deposit, while exploration activities will continue to focus on the
evaluation of the Central Area, WA05, 11 and 12 targets.
Tanda-Iguela
-
An exploration programme of $15.0 million is planned for
FY-2024, of which $9.7 million has been spent year to date and
$5.0 million was spent in Q2-2024 consisting of 37,962 meters
of drilling across 243 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 Q2-2024, drilling results at the Assafou deposit confirmed
the continuity of the mineralisation at depth and in shallow areas
in the southwest portion of the deposit. Drilling on the wider
Tanda-Iguela property focused on the Pala Trend 3 target, a
potential satellite deposit located 1 kilometre southwest of
Assafou. Results confirmed the continuity of mineralisation over a
900 metre strike length, at shallow depth. Reconnaissance drilling
was also completed at the Pala Trend 2, Broukro and Kongodjan
targets as well as the recently discovered Koumé-Nangaré target,
located 5 kilometres northwest of Assafou, with preliminary results
highlighting mineralisation hosted within Birimian basement
rocks.
-
During the remainder of the year, drilling will continue at Assafou
and the newly discovered Koumé-Nangaré target. A resource update
for Tanda-Iguela, incorporating results from the H1-2024
exploration programme is expected in H2-2024.
CONFERENCE CALL AND LIVE WEBCAST
Management will host a conference call and
webcast on Wednesday 31 July, 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/eybcokij
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/BIf3889e9ffe4447c8b58b16b90a25128e
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 PLC
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 ability of the Group to achieve its production
guidance, AISC guidance, Group non-sustaining capital expenditure
outlook, and growth capital expenditure outlook for FY-2024, the
estimated exploration expenditures for FY-2024, the ability of
Endeavour to meet its 5-year exploration target, the availability
of additional dividends and share buybacks, the success of
exploration activities, estimated costs incurred in connection with
the construction of the Solar Power Plant and the timing for an
updated resource for the Vindaloo Deeps deposit and Tanda-Iguela.
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.
Registered Office: 5 Young St, Kensington, London W8
5EH, UK
- EDV Q2-2024 MD&A
- EDV Q2-2024 Financial Statements
- EDV Q2-2024 Mine Statistics
- EDV Q2-2024 News Release
- EDV Q2-2024 Results Presentation
Endeavour Mining (TG:6E2)
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