Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) delivered a fourth-quarter earnings beat with strong free cash flow generation, while analysts at Jefferies see the next key catalyst as the feasibility study for its Assafou project, expected later this quarter.
The West Africa-focused gold miner reported adjusted earnings per share of $0.93 for the fourth quarter of 2025, topping the Visible Alpha consensus estimate of $0.88.
Free cash flow also exceeded expectations, coming in at $476 million, above Jefferies’ forecast of $407 million and the $456 million consensus estimate.
However, adjusted EBITDA of $681 million came in below both Jefferies’ estimate of $748 million and the $734 million consensus forecast.
The earnings results were largely in line with expectations after the company had already pre-released its fourth-quarter operational performance and 2026 production outlook.
For 2026, Endeavour has guided for gold production of between 1.09 million and 1.27 million ounces and all-in sustaining costs of $1,600 to $1,800 per ounce.
Jefferies said it expects the miner to produce about 1.18 million ounces this year, broadly in line with consensus estimates.
Production is expected to be weighted toward the second half of the year, reflecting higher grades at the Houndé mine after waste stripping in the first half and improved throughput at the Ity and Mana operations following maintenance and development activities earlier in the year.
The brokerage forecasts 2026 all-in sustaining costs of about $1,767 per ounce, compared with the company’s guidance range and a consensus estimate of $1,789 per ounce.
Jefferies noted that Endeavour’s valuation remains attractive compared with its peers.
“At spot, EDV trades at 0.6x versus peers at 0.8x and screens as the best free cash flow yield in our coverage at 12.6% versus peers at 8.8%,” the analysts wrote.
Endeavour also updated its reserves and resources, reporting gold reserves of 16.6 million ounces at a grade of 1.6 grams per tonne, calculated using a gold price assumption of $1,900 per ounce. That compares with 18.4 million ounces at 1.65 g/t a year earlier.
Measured and indicated resources, including reserves, totaled 25 million ounces at 1.71 g/t, calculated at a $2,100 per ounce gold price assumption.
The company ended the year with total liquidity of $1.15 billion, including $453 million in cash and cash equivalents and an undrawn $700 million revolving credit facility.
During 2025, Endeavour returned $435 million to shareholders through dividends and share buybacks.