Endeavour Mining Corp (TSE:EDV) (OTCQX:EDVMF) (FRA:E5Y1) announced it had generated US$553 million in revenue during its fourth quarter, driven by record gold production from its West African operations.
The miner produced 344,000 ounces during the three-month period to end December 31, 2020, a 93% increase over the year-ago quarter, at an all-in sustaining cost of US$803 per ounce, an 11% decrease from 3Q 2020.
The group swung to a profit in 4Q, posting US$30 million in earnings or $0.19 per share compared to the $113 million loss in the comparable year-ago quarter, while adjusted net earnings hit US$166 million – a large jump from the $37 million it put up in 4Q 2019.
READ: Endeavour Mining increases 2021 production guidance
George Town-based Endeavour also achieved a record full-year 2020 production of 908,000 ounces, a 40% increase over FY2019.
CEO Sebastien de Montessus called it a “transformational year” for the company as it consolidated its strategic position in West Africa to create a “resilient” business.
“Our business is underpinned by long-life and low-cost cash-generative mines, robust organic growth opportunities and a strong focus on contributing to socio-economic development wherever we operate,” de Montessus said in a statement accompanying the results.
“In the fourth quarter of 2020, we delivered record results as we realized the full benefits from the integration of the SEMAFO assets and the ramp-up of the high grade Kari Pump deposit at Houndé. For the eighth consecutive year, we met or exceeded our annual production and AISC guidance, and notably achieved record production in 2020 as both our internally developed and acquired operations delivered strong performances.”
The CEO added that the company is focused on progressing its organic growth opportunities through mine life extensions, asset optimization, and green and brownfield exploration. According to de Montessus, the most promising of opportunities is the Phase 1 and 2 expansions at Sabodala-Massawa, which will help transform the mine into a tier-one asset.
2021 outlook
Looking ahead, the company set its 2021 production guidance between 1,365,000 to 1,495,000 ounces at an all-in sustaining cost of US$850 per ounce. The group is also working towards a premium listing on the London Stock Exchange.
Endeavour ended 4Q with a net cash position of US$75 million.
Separately, the group also said that it had received approval from the Toronto Stock Exchange to implement a Normal Course Issuer Bid (NCIB) for its share repurchase program, to supplement its dividend and maximize value for its shareholders.
In a statement, Endeavour told shareholders it believes that the market price of its ordinary shares “does not always reflect its underlying value and future prospects.”
“Endeavour’s purchase of its ordinary shares under the NCIB as part of its capital allocation framework, can therefore be an effective use of its capital and can deliver enhanced returns compared to other uses of capital,” the company said.
The NCIB will begin on March 22, 2021 and end on March 21, 2022, or such earlier date as Endeavour may complete its purchases pursuant to the notice of intention filed with the TSX. Endeavour may purchase up to 12,172,871 ordinary shares under the NCIB, which represents up to 5% of the total issued and outstanding ordinary shares as of March 16, 2021, of around 243,457,437. All ordinary shares repurchased under the bid will be cancelled.
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