Endeavour Mining Corp (TSE:EDV) (OTCQX:EDVMF) (FRA:E5Y1) has posted a strong set of first-quarter numbers, which showed an increase in output, profitability and cashflow alongside a reduction in costs.
The West Africa-focused gold producer said it was 'well-positioned to meet its production guidance for full-year 2021 of between 1.365 million ounces and 1.495 million ounces and was also on track to receive a premium listing on the London Stock Exchange in June this year.
READ: Endeavour Mining increases 2021 production guidance
"Over the past twelve months we have significantly transformed our company into a resilient business capable of rewarding our shareholders through the cycle," said Endeavour Mining CEO Sebastien de Montessus in a statement.
"This quarter's strong performance demonstrates the quality of our enhanced portfolio of operating mines, following the successful integration of the Teranga assets within our business. Moreover, we are pleased to report significant increases in our per share metrics."
Endeavour operates six producing mines across Ivory Coast and Burkina Faso, and in November last year, confirmed it was acquiring Teranga Gold Corporation - a mid-tier producer with two mines in Burkina Faso and Senegal.
In the three months to March 31, 2021, Endeavour saw a 102% increase in production at 347,000 ounces of gold, compared to 172,000 ounces in the first quarter of 2020, while all-in-sustaining costs (AISC) fell 3% to US$868 per ounce, from US$899 a year earlier.
Operating cash flow rose 107% compared to last year to US$207 million (1Q, 2020: US$100 million), while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was up 191% at US$311 million.
Net earnings per share (EPS) in the first quarter came in at US$0.46, up 160% from US$0.18 per share in 1Q, 2020.
The miner said it ended the quarter with a 'healthy' balance sheet with a net debt to the last twelve months EBITDA ratio of a multiple of 0.16, which, the firm said, reflected the consolidation of Teranga's debt.
Endeavour also paid out a first dividend of US$60 million on February 5, 2021, and US$13 million of its shares have been bought back, following the quarter-end.
In the year ahead, exploration will be a strong focus, Endeavour said, and it has a budget of US$70 to US$90 million for 2021. In the first quarter, the company spent US $16 million, of which $12 million was spent on mine operations and US$4 million on greenfield and development projects.
Looking ahead, the company said efforts are expected to be focused on newly acquired mines with the aim of extending their lives.
"In addition, significant efforts will focus on greenfield and development properties such as Fetekro, Afema, Kalana, Bantou, Siguiri and other earlier stage exploration projects," it noted.
The definitive feasibility Studies at Fetekro and Kalana are on track to be completed by year-end 2021 and Q1, 2022 respectively, the miner said.
Construction of the Sabodala-Massawa mine's Phase 1 expansion in Senegal is on schedule for completion by year-end, while the definitive feasibility study (DFS) is underway for Sabodala-Massawa Phase 2 expansion.
"The combined portfolio is on track to meet its FY-2021 guidance and deliver strong cash flows, bolstering our balance sheet and providing the flexibility to advance our exciting organic growth opportunities while continuing to reward shareholders through our dividend and share buyback programs," de Montessus told investors.
Shares in Canada added 3.7% to stand at C$26.95.
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