Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) ramped up production in its latest quarter as new mines at Lafique and Sabodala-Massawa CIL came on stream.
Production at the Africa-focused gold miner rose to 270,000oz in the three months to end September 2024, up 8% on the previous quarter, and making 741,000oz for the year so far (792,000oz).
Realised gold prices compared to a year ago rose by 23% to US$2,342 an ounce, boosting revenues for the quarter by a third to US$706 million and for the year to date by 13% to US$1.54 billion.
Underlying profits [adjusted EBITDA] rose to US$317 million ( US$263 million), though after derivatives and one-offs, there was a net loss in the quarter of US$95 million and US$175 million for the year so far.
Ian Cockerill, chief executive, commented: “During Q3-2024 we continued to deliver against our strategic objectives as we successfully completed our growth phase, achieving commercial production at our two organic growth projects, which supported our strongest quarter of production this year and underpinned our transition to a phase focused on free cash flow generation.
“Despite above-average rainfall early in the fourth quarter, our performance is expected to be significantly stronger than quarter three, supported by the ramp-ups of our growth projects as well as increased production at the Houndé and Mana mines, in line with their mine sequences.
“We achieved a significant free cash inflection during the quarter, generating approximately US$100 million of free cash flow, and given our strong outlook, we are now focused on shareholder returns and our balance sheet.
“Looking forward, we have visibility to organically grow the production profile to our 1.5 million ounce portfolio objective by the end of the decade, while maintaining best-in-class margins.”