Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF)'s recent Q4 and 2024 preliminary results have sparked optimism for the company’s prospects in 2025, according to Berenberg analysts.
Despite a challenging year, the company posted solid figures, and its 2025 guidance for production, unit costs, and capital expenditure is broadly in line with analyst expectations.
For 2024, Endeavour’s gold production reached 1.10 million ounces, slightly surpassing Bloomberg’s consensus estimate of 1.09 million ounces.
All-in sustaining costs (AISC) stood at US$1,220 per ounce, aligning closely with consensus projections of US$1,208 per ounce.
The company’s 2025 production guidance is between 1.11 million and 1.26 million ounces, with AISC ranging from US$1,150 to US$1,350 per ounce.
The key to Endeavour’s performance in 2025, Berenberg notes, will be solid execution.
“(A)fter headwinds last year with costs at certain assets and ramping up the new Sabodala-Massawa BIOX plant, a solid 2025 is needed to restore investor confidence,” analysts wrote.
Endeavour’s capital expenditure is projected to be US$440 million, slightly below the consensus estimate of US$464 million.
Berenberg has slightly adjusted its forecasts for Endeavour, with production for 2025 now pegged at 1.2 million ounces and AISC at US$1,282 per ounce. The analysts also predict a significant rise in free cash flow, from US$151 million in 2024 to US$667 million in 2025. Cash flow is expected to lead to deleveraging and enhanced shareholder returns by mid-2026.
Berenberg has a “Buy” rating on Endeavour, with a price target of GBP 2,300 (C$40), reflecting a 39% upside from the current share price.