Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) has said it remains on track to achieve its full-year production guidance with a stronger performance expected in the second half of the year as it reported first-quarter numbers.
The company produced 301,000 ounces (oz) of gold at an all-in-sustaining cost (AISC) of $1,022/oz in the first quarter of 2023.
"The Group remains on track to achieve its FY-2023 production guidance of 1,325-1,425koz at an AISC of $940-995/oz, with performance weighted towards H2-2023 as previously guided," the senior gold producer said.
During the first quarter of 2023 the company reported EBITDA (earnings before interest, taxes, depreciation, and amortization) of $206 million and adjusted EBITDA of $279 million.
“During the quarter, we continued to deliver in line with our expectations and we remain well positioned to unlock near-term value for all of our stakeholders,” Sebastien de Montessus, Endeavour president and CEO, said in a statement.
“We began the year with momentum and financial strength, positioning us to deliver against this year’s capital allocation priorities of funding growth while maintaining our attractive shareholder returns programme, which has already returned $644 million since its launch in 2021. Furthermore, to minimise shareholder dilution we settled the principal of our $330 million convertible notes, in cash during the quarter,” he added.
Endeavour revealed a strong financial position at quarter-end with a cash position of $810 million, in addition to $285 million in available sources of financing.
The company noted that it paid $100 million in dividends for the second half of 2022 during the first quarter of 2023. In total, the company has paid $400 million in dividends since early 2021. The company also bought back 0.4 million shares for $11 million in the first quarter, totaling $244m or 11.1 million shares repurchased since early 2021
“On the operational front, we are tracking in line with our guided trend, as we expect production weighted towards the second half of the year due to mine sequencing across the group,” the Endeavour CEO said.
“On the growth front, we are pleased to report that the Sabodala-Massawa expansion and the Lafigué greenfield build are progressing well, with both projects on time and on budget with first production expected in Q2 and Q3 2024 respectively. Our goal is to then increase our shareholder returns once these organic growth projects are completed,” he added.
Endeavour Mining is the largest gold producer in West Africa, with operating assets across Senegal, Côte d’Ivoire and Burkina Faso. It is included on London's blue-chip FTSE 100 index.
Contact the author at jon.hopkins@proactiveinvestors.com