Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) has delivered another strong quarter, using record gold prices to boost cash generation, trim debt and step up cash returns, while keeping this year’s production and cost guidance intact.
For the nine months to the end of September, the West Africa-focused miner produced 911,000 ounces of gold, up 23% on the same period last year and on track for the top half of its full-year target of 1.11–1.26 million ounces.
Third-quarter production came in at 264,000 ounces, down on the second quarter as planned lower grades and a heavy wet season hit volumes at several mines.
Costs have risen, but largely for reasons shareholders tend to like. All-in sustaining cost (AISC), a sector benchmark that includes mining, processing, sustaining capital and corporate overheads, averaged $1,362 an ounce year to date.
That is 8% higher than a year ago, but Endeavour pointed out that US$103 an ounce of that increase is down to higher royalty payments linked directly to the gold price, which has far exceeded the $2,000 an ounce assumption in guidance.
Strip out that gold price effect, and AISC sits at about US$1,259 an ounce, roughly the middle of the company’s full-year cost range.
The combination of higher prices and solid operations has transformed the profit and cash profile.
Adjusted earnings for the year to date are $556 million, up 375% on last year, while adjusted earnings before interest, tax, depreciation and amortisation have more than doubled to $1.63 billion.
Free cash flow, the cash left after operating and investing outlays, has surged to $680 million so far this year, compared with just US$45 million in the same period of 2024.
That cash has gone to work on the balance sheet. Endeavour has cut gross debt by $425 million, fully repaying its revolving credit facility. Net debt now stands at $453 million, giving a very modest leverage ratio of 0.21 times trailing adjusted EBITDA.
Shareholders are seeing a growing slice of the benefits. A record $150 million dividend was paid in October, and the company has spent $82.8 million buying back its own shares this year.
Total returns so far in 2025 stand at $232.8 million, already above the $225 million minimum promised for the year, with another dividend due to be set in early 2026 for the second half.
On the growth side, Endeavour is pushing ahead with its Assafou project, where the definitive feasibility study remains on course for completion in the first quarter of 2026 after receiving its environmental permit.
The group has spent $72.1 million on exploration so far this year, targeting extensions around existing mines such as Houndé, Ity and Sabodala-Massawa, as well as new opportunities in West Africa and other underexplored gold belts.
Management reiterated that full-year output should land in the top half of the guidance range, with costs within guidance once royalty effects are normalised for the higher gold price.