Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) unveiled its largest-ever final dividend as it announced further production increases for the fourth quarter of last year amidst continuing sky-high gold prices.
Shares in the FTSE 100 precious metals miner climbed 1.4% to 1,562p on Thursday morning.
The board declared a pay-out of $0.57 per share, or $140 million in aggregate for the second half, making a total full-year dividend of $0.98 per share or $240 million, compared to the $210.0 million annual minimum commitment. Returns totalled $277 million when the $37 million of share buybacks in the year are included.
Fourth-quarter production of 363,000 ounces was up 34% versus the third quarter, thanks to increased production at all mines.
Production was boosted by higher grades processed, as well as higher throughput following the end of the regional wet season and the ramp-up of the Sabodala-Massawa expansion and the Lafigué growth projects.
Total cash costs fell 13% from the preceding quarter to $980 per oz, while all-in sustaining costs (AISC) were down 11% to $1,140 per oz.
For the full year, Endeavour produced 1.103 million oz, in line with the previously disclosed outlook and slightly below the guidance range of 1.13-1.27 million oz. This was due to lower than guided production from Sabodala-Massawa.
AISC for the full year of $1,220/oz was in line with the previously disclosed outlook, and above the top end of the $955-$1,035/oz guidance range, due to underperformance at Sabodala-Massawa, higher royalty costs associated with the prevailing higher gold price and low grid power availability in the first half, partially offset by lower than expected costs at Lafigué due to lower stripping costs.
Realised gold prices over the year averaged $2,418 per oz, compared to guidance before the start of the year of $1,850/oz.
For 2025, production guidance is for 1.11 million to 1.26 million oz, which would be an increase of up to 15% that Endeavour said reflected the full-year contribution from the Lafigué mine, expansion at Mana and Sabodala-Massawa.
Production guidance at Sabodala-Massawa could still change, as "potential levers to increase near-term production" are being assessed as part of a technical review, though these increases in group production are expected to be partially offset by a decrease at Houndé due to lower grades coming up.
Cash costs and AISC are expected to remain little changed.