Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) has detailed a strong quarter amid strengthening gold prices.
It reported strong first-quarter results with production of 341,000 ounces of gold, at an all-in sustaining cost of $1,129 per ounce.
Earnings (adjusted EBITDA) were up 12% over the previous quarter at $613 million.
Free cash flow reached a record $409 million, marking a 53% increase from the prior quarter.
The West Africa-focused gold miner produced 341,000 ounces across its portfolio during the quarter, compared to 363,000 in the preceding three months.
Endeavour is steering its excess cash to delever and shareholder returns.
It reduced net debt by over $350 million during the quarter, bringing it down to $378 million. Meanwhile, at $140 million, the dividend for the second half of 2024 (paid in early Q2 2025) is a company record.
Endeavour expects total shareholder returns in 2025 to exceed last year, which saw $225 million of dividends supplemented with $52 million of share buybacks.
“Our strong free cash flow generation has enabled us to significantly strengthen our balance sheet,” said chief executive Ian Cockerill.
He added: “We will focus on maximising free cash flow and enhancing shareholder returns, as we advance our high-quality organic growth pipeline.
“With our higher-quality portfolio, sector-leading margins and best-in-class growth outlook, we are well positioned to capitalise on the favourable gold price environment and deliver value for all of our stakeholders.”
Endeavour told investors it is on track to achieve FY-2025 guidance, with performance slightly weighted towards its first half – driven by a notably strong performance at its Houndé mine.
On Thursday, the share rose 4.5% to 2,106p.
In London, stockbroker Stifel repeated its ‘buy’ recommendation for shares in Endeavour, highlighting the record free cash flow and the meaningful deleveraging achieved by the company.
“Optimisation efforts reduced costs over the previous quarter despite lower production, suggesting an ability to contain costs and deliver the margin expansion anticipated from a favourable gold price environment,” the bank said in a note.