Endeavour Mining Corp (TSE:EDV) (OTCMKTS:EDVMF) (FRA:E5Y1) reported its eighth consecutive year of achieving its annual output guidance and unveiled record production for its fourth quarter and full year.
Endeavour runs six producing mines across Ivory Coast and Burkina Faso. It also has four potential development projects in West Africa.
READ: Endeavour Mining lifts stake in potential cornerstone asset Fetekro ahead of pre-feasibility study
Despite the challenges posed by the pandemic, it generated 908,000 ounces of gold in 2020 to end-December, which was a 39% increase on 2019.
In the fourth quarter, the miner produced 344,000 ounces of the yellow metal, while all-in-sustaining-costs (AISC) decreased by 15% to around US$770 per ounce.
The group's net cash position was around C$70 million at year-end, marking a reduction in net debt of around $245 million during Q4, 2020 and of around C$600 million during the whole year.
Significantly, Endeavour will pay a first dividend payment on February 5 this year, and said it may increase the dividend and/or carry out a buyback once it has reached a targeted net cash position of C$250 million.
"2020 was a transformational year for Endeavour as we consolidated our position in West Africa and this is reflected in the strong operational and financial performance across our portfolio, particularly in the record fourth quarter which saw the full benefits from the integration of the SEMAFO assets and the ramp-up of the high grade Kari Pump deposit at Houndé," noted Sebastien de Montessus, CEO at Endeavour.
"Looking ahead to 2021, our focus will be the integration of the Teranga assets and progressing our organic growth pipeline," he added.
"We are also excited to continue working towards obtaining a premium listing on the Premium London Stock Exchange as we seek to broaden our appeal to a wider group of potential investors."
Endeavour said it would strongly focus this year on free cash flow generation and progressing its organic growth pipeline with a preliminary feasibility study (PFS) on Fetekro (Ivory Coast) and Kalana (Mali) due in the first quarter. A definitive feasibility study (DFS) is targeted for the Sabodala-Massawa plant expansion in the fourth quarter.
For 2021, the miner is guiding for between 915,000 and 1.010 million ounces at an AISC of US$900-950 per ounce, which factors in the recently announced Agbaou mine sale. The forecast will be updated following the completion of the Teranga transaction.
The group's 2021 exploration budget stands at between C$55 million and 60 million.
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Contact the author at giles@proactiveinvestors.com