Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) has reported an adjusted net earnings jump of 21% and said production is on pace to meet its 2022 guidance, according to its latest quarterly results.
For the three months ended March 31, 2022, the company posted adjusted net earnings of US$122 million, $0.49 per share, up 21% from $101 million, $0.48 per share, in the first quarter of 2021. Adjusted EBITDA increased 22% to $398 million from $325 million over the same timeframe.
Endeavour’s cash position improved by $90 million in the quarter, reaching $167 million. The company also said it returned more than $100 million to shareholders over the period through dividends and buybacks.
Production for the quarter was 357,000 ounces (oz), up 14% year-over-year, while all-in sustaining costs (AISC) were nearly flat at $848/oz. That puts the company in a good position to meet its full-year projections of 1,315,000 oz to 1,400,000 oz with an AISC of $880/oz-930/oz, according to CEO Sebastien de Montessus.
READ: Haywood Securities says Endeavour Mining's Sabodala-Massawa mine offers "attractive" potential return on invested capital
“We are pleased to have started the year on a strong footing with both production and all-in sustaining costs well positioned to meet full-year guidance,” de Montessus said in a statement. “This performance has resulted in robust cash flow generation during the quarter which, in line with our capital allocation framework, was used to further strengthen our balance sheet, to continue our attractive shareholder returns programme, and to reinvest back into our business.”
He also spoke highly of the company’s organic growth potential.
“We are focused on continuing to enhance our business resilience by improving the quality of our portfolio through our attractive organic growth opportunities and optimization initiatives,” de Montessus said. ”As such, we have recently begun the expansion of Sabodala-Massawa and the DFS for our Lafigué project is nearing completion.”
Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.
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