Results from Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) showed rising gold prices more than offset rising costs.
A strong finish to 2025, including record dividend payouts, helped lift sentiment, with Stifel saying the results beat most key metrics.
Fourth-quarter production of 298,000 ounces and sales of 302,000 ounces came in well ahead of expectations. Realised gold prices were also higher than forecast, at $3,873 an ounce.
While all-in sustaining costs (AISC) held broadly in line at $1,650 an ounce, higher gold prices widened margins meaningfully.
More importantly, the company’s ability to convert earnings into cash stood out. Net debt was sharply lower than forecast, falling to $157 million.
Endeavour declared a US$200 million second-half dividend – its largest to date – which comfortably beat analyst estimates.
Looking ahead, guidance for 2026 production of 1,090,000-1,265,000 ounces is in line with previous expectations. AISC guidance of $1,600-1,800 per ounce is a touch higher than hoped, but less of a concern if spot prices remain firm.
Stifel sees the stock trading on a free cash flow yield of around 15%, even after a 24% year-to-date rally. Its analysts have raised their price target and reiterated a 'buy' rating.