Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) shares climbed 10% to 3,536p on Thursday after the company posted another strong quarter, powered by high gold prices, firm output and sharply improved cash generation.
For the nine months to September, the group produced 911,000 ounces of gold, up 23% on the same period last year and on track for the top half of its annual target of 1.11–1.26 million ounces.
Third-quarter output of 264,000 ounces was lower than the second quarter, reflecting planned grade variations and a heavier-than-usual wet season.
Costs rose but for reasons most investors will tolerate. All-in sustaining cost averaged $1,362 an ounce year to date, 8% higher than a year earlier.
Endeavour said $103 of that increase was directly due to higher royalty charges triggered by the gold price, which has consistently exceeded the $2,000 assumption in guidance.
Adjusting for that effect brings AISC to roughly $1,259 an ounce, near the midpoint of the full-year range.
With stronger prices and stable operations, the company’s earnings profile has shifted markedly. Adjusted earnings have risen to $556 million, up 375%, while adjusted EBITDA has more than doubled to $1.63 billion.
Free cash flow has surged to $680 million from just $45 million a year earlier.
That has fed through to the balance sheet. Gross debt has fallen by $425 million following full repayment of the revolving credit facility, leaving net debt at $453 million and a leverage ratio of only 0.21 times.
Shareholders are already seeing the benefit. A record $150 million dividend was paid in October and $82.8 million has been spent on buybacks.
Total returns for 2025 have reached $232.8 million, surpassing the stated minimum.
Endeavour also highlighted progress at its Assafou project, where a feasibility study remains on track for early 2026, and ongoing exploration spending of $72.1 million.
Management reiterated that full-year production should finish in the top half of guidance, with costs remaining within range once royalty effects are stripped out.