Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) has earned a repeat ‘Buy’ and C$45 price target from Jefferies analysts after it reported positive production results for the fourth quarter and 2025 guidance in line with expectations.
The miner’s Canadian-listed shares traded up 5% just shy of C$30 in the early afternoon on Thursday.
Analysts highlighted that Q4 gold production of 363,000 ounces was in line with their estimate.
Cash costs of $980 per ounce were “significantly” below their estimate of $1,022 per ounce while all in sustaining cost (AISC) of $1,140 per ounce beat their estimate of $1,150 per ounce.
“Softer than expected production from Sabodala-Massawa was offset by outperformance at Ity while cash costs beat across the board ex-Sabodala-Massawa,” analysts wrote in a note to clients.
The company’s 2025 guidance includes rising production and flat costs, in line with their estimates.
Endeavour guided consolidated gold production of 1,110,000 to 1,260,000 ounces at a cash cost of $950 to $1,090 per ounce and AISC of $1,150 to 1,350 per ounce.
“2025 guidance implies an approximately 7% year-over-year increase in production from a full year of contributions from Lafigue/Sabodala-Massawa BIOX Expansion and the expanded Wona UG deposit at Mana, and an approximately 2% year-over-year increase in AISC from higher sustaining capex related to waste stripping at Lafigue and at Ity, mostly offset by UG productivity improvements at Mana,” analysts wrote.
Further, Endeavour announced a record dividend of $140 million or $0.57 per share for the second half of 2024, supplemented by $27 million in buybacks for total shareholder returns of $277 million for 2024.
“Endeavour remains well-positioned to generate record free cash flow in 2025 which supports the company's deleveraging and shareholder returns efforts,” analysts concluded.