It's been a mixed Q2 Earnings Season for the Gold Miners Index (GDX), and last week's reports disappointed on balance. This was evidenced by guidance cuts, upwards revisions in costs, and a further capex blowout from IAMGOLD (IAG), with it at least being consistent in this department with its regularly scheduled Cote capex blowouts. In fact, the company has been so consistent with these upward revisions that it's carved out a sizeable ~$600 million funding gap, increasing the probability of significant share dilution.
However, amid these disappointments, Endeavour Mining (OTCQX:EDVMF) has been a rock, not only tracking well ahead of guidance but raising its planned FY2022 dividend (US$0.81 annualized) due to its solid performance and cost controls. In fact, the company reported industry-leading all-in sustaining costs in H1, helped by a portfolio that benefits from several strong assets and successful portfolio optimization. In a sector with too many underperformers to count, Endeavour remains a top-10 producer for investors looking for exposure to gold without the headaches, with a bonus of consistent dividend income.
Endeavour Mining released its Q2 results last week, reporting quarterly production of ~345,000 ounces, pushing H1 2022 production to ~702,000 ounces. This was driven by solid quarters from Hounde, Ity, and Mana, offset by a much softer Q2 for its best asset, Sabodala-Massawa, plus Boungou and Wahgnion. Despite the softness from these three assets in the period, Endeavour is tracking very well against FY2022 guidance, on track to beat its guidance mid-point of ~1.36 million ounces of gold. Key updates to look forward to are an update on the Sabodala-Massawa Expansion (addition of a 1.2 million tonne per annum BIOX plant) and the Lafigue Feasibility Study due this quarter).
Looking at the chart above, we can see that Endeavour saw a decline in production on a year-over-year basis, with output sliding from 409,000 ounces to 345,000 ounces. This was a significant decline, but the company was up against difficult comps with a great quarter out of Wahgnion (41,000 ounces), a robust quarter from Sabodala-Massawa (~96,000 ounces), and a great quarter from Ity as well (~79,000 ounces).
While Ity did perform well in Q2, it struggled to lap the 79,000 ounces from last year (down 2%). Meanwhile, Endeavour's star performer (Sabodala-Massawa) had a weaker quarter (~73,000 ounces vs. ~96,000 ounces) due to mine sequencing with a focus on waste extraction ahead of planned mining at Massawa North (higher grade pit than Sofia). This led to a sharp increase in all-in sustaining costs [AISC] per ounce at the asset, but this jump in costs still left the mine's operating costs 40% below the industry average at $779/oz. Finally, among the larger assets, Hounde had a great quarter (~87,000 ounces) with lower grades offset by higher throughput and recovery rates.
Moving over to the laggards within the portfolio, Wahgnion and Boungou stood out with much weaker performances. That said, while Boungou may have seen a sharp decline in production year-over-year related to reliance on the East Pit and lower-grade stockpiles for mill feed, the asset is still on track to do ~130,000 ounces this year at all-in sustaining costs of $950/oz to $1,000/oz. At Wahgnion, it was a very ugly quarter from a headline standpoint, with ~26,500 ounces produced at all-in sustaining costs of $1,788/oz, an alarming figure compared to ~47,700 ounces at $980/oz last year.
However, while these are certainly not figures we've come to expect from Endeavour's mines, this was a very abnormal quarter. For starters, grades were well below the reserve grade at 0.90 grams per tonne of gold, related to the planned higher strip ratio at the Nogbele North and Fourkoura pits, and the mill relied on some low-grade stockpiles. Simultaneously, this was a much more expensive quarter than usual. Sustaining capital was up 300% vs. Q2 2021 due to mining fleet rebuilds and waste capitalization. If we combine this with fewer ounces sold, it's no surprise that costs at the asset spiked in the period.
Investors can take comfort in that while guidance is tracking towards below guidance on production at Wahgnion and cost guidance ($1,050/oz - $1,150), this asset should still push out 130,000 ounces at sub $1,240/oz costs, a respectable figure. So, while a guidance miss is unfortunate, it's important to put it in context. If we compare this to other assets, Iamgold's Rosebel is on track to beat guidance, but guidance is for ~168,000 ounces at $1,600/oz+ costs. As discussed by Endeavour, we should see a sharp increase in production as mining moves to the high-grade Samavogo pit during Q4.
To summarize, despite the much lower production at these three assets, Endeavour is still in great shape this year, on track to maintain a ~1.40 million-ounce production profile, with further growth in the tank from Lafigue and the Sabodala-Massawa Expansion. Plus, even with the higher costs at these three assets in Q2 combined with inflationary pressures (consumables, fuel), Endeavour reported sub $970/oz all-in sustaining costs. Let's take a closer look at cost performance below:
Costs & Margins
Looking at all-in sustaining costs below, Endeavour not only looks to have come in within the top-5 from a cost standpoint among gold producers, but its costs were well below the industry average. This is evidenced by Endeavour's all-in sustaining costs (yellow bars) shown below vs. the steadily rising industry average (red bars). In fact, while the industry average costs have increased more than 20% since Q1 2020, Endeavour's costs are up just 6% ($954/oz vs. $899/oz), partially benefiting from weakness in the Euro, but mostly due to its continued portfolio optimization. The latter refers to adding exceptional assets to the portfolio and divesting higher-cost assets.
One could argue that this is an artificial way to manage costs and that Endeavour shouldn't receive as much praise for this progress, with this not being a fair comparison to operating portfolios that remained static in the same period. While Endeavour did shake up its portfolio, it purchased Semafo for a very reasonable price during the March 2020 crash (~$800 million vs. a peak market cap of $1.8 billion) and it got a decent price for Teranga, with its assets (ex-Golden Hill) having an After-Tax NPV (5%) of $2.0+ billion currently.
Notably, the Teranga deal gave Endeavour one of Africa's best operating assets (400,000 ounces at sub $800/oz costs). Following this, the company divested two non-core assets in periods of gold price strength
So, while it may have partially engineered its way into seeing less cost creep than its peers due to key additions/divestments, this was accomplished through disciplined moves. This is far superior to the other deals we've seen in the sector over the past several years. The result is that Endeavour Mining enjoyed AISC margins of $878/oz in Q2 2022 and $972/oz year-to-date (~52% AISC margins), with a 3% increase in AISC margins in H2 2022 vs. H2 2021. Besides, while the addition of low-cost assets has helped, Endeavour has salaries locked in for three years; it's working to improve pricing on some items, and managed to renegotiate haulage contracts to drive lower mining costs at its key asset, Sabodala-Massawa.
Given this solid performance, with AISC margins set to come in above $850/oz this year, Endeavour has increased its dividend plans to $200 million this year while also set up to return over $60 million to shareholders through share buybacks. So, while there was share dilution in Endeavour's acquisitions that allowed it to nearly double production at sub $950/oz costs, I expect a good chunk of this dilution to be clawed back through repurchases, translating to meaningful growth in cash flow and production per share on deck. Let's look at the financial results below:
Finally, looking at the company's financial results, Endeavour reported revenue of ~$630 million in Q2 2022, an 11% decline from the year-ago period. This was related to fewer ounces sold (~343,700 ounces vs. ~395,100 ounces), partially offset by a higher gold price. While this figure might be disappointing, this was largely due to softer quarters at two assets where output was abnormally low (Wahgnion, Boungou). As noted by the company, Wahgnion will see higher production in Q4 once the Samavogo pit is commissioned, and Boungou will have a better H2 as mill throughput increases.
From a cash flow standpoint, Endeavour reported Q2 operating cash flow of ~$253 million, translating to H1 2022 operating cash flow of ~$622 million. This was a more than 23% increase from the year-ago period and translated to $2.22 in cash flow per share (H1 2022: $2.12). The higher cash flow generation was related to fewer income taxes paid in the period and a higher gold price ($1,872/oz vs. $1,779). Assuming the gold price can hold above $1,750/oz, Endeavour is on track to generate more than $4.40 in operating cash flow in FY2022.
While these metrics might not appear all that exciting and are off their highs, it's important to note that this was an abnormal quarter, especially with the company's breadwinner also having its weakest quarter (Sabodala-Massawa). However, with a commitment to continue share buybacks, plans to grow production to near 1.6 million ounces by FY2026, and what should be a stronger gold price after a two-year consolidation for the metal, there is a clear path to $5.50+ in annual cash flow per share.
This is far too cheap a figure for a business executing like Endeavour is. Plus, by the end of this decade, I don't think a 1.85 million ounce annual run rate is a stretch from within the current portfolio or 2.0+ million ounces assuming a strategic acquisition, pointing to 25% to 35% production growth. Assuming the company can deliver on its next growth phase (1.56 - 1.60 million ounces), I would not be surprised to see the company increase its annual dividend to US$1.10 per share by Q4 2025, translating to a ~5.30% yield on cost for investors purchasing the stock below US$21.00 per share.
Based on ~248 million shares and a share price of US$20.90, Endeavour Mining trades at a market cap of ~$5.18 billion. This is a very reasonable valuation for a ~1.40 million-ounce producer, especially one with a track of delivering on its promises and the discipline not simply to grow for the sake of growth. This is evidenced by its ability to acquire solid assets at attractive valuations while divesting its sub-par assets into periods of strength in the gold price. Based on conservative estimates and continued softness in the gold price in H2, Endeavour trades at less than 4.6x operating cash flow estimates ($4.55) and a discount to its estimated net asset value (~$6.8 billion).
If we look at the chart above, we can see that the stock has historically traded at ~6.2x cash flow (10-year average), but I believe a premium to this multiple makes sense. This is because the company currently offers industry-leading capital returns, has a strong organic growth profile (Lafigue, Kalana + early-stage opportunities), and enjoys industry-leading margins, able to keep its costs down from portfolio optimization and strong cost controls, unlike some of its peers. Based on what I believe to be a fair multiple of 7.0X cash flow and FY2023 estimates of US$4.35, I see a fair value for the stock of US$30.45.
If we measure from a current share price of US$20.90, this represents a 46% upside from current levels, or closer to 50% from a total return standpoint when including dividends to be paid. Importantly, this assumes the gold price averages below $1,825/oz in 2023, which I believe is quite conservative. Hence, if we were to see the gold price recover and trade back near its highs ($2,000/oz+), Endeavour could hit new all-time highs above US$31.00 per share. So, for patient investors looking for consistent returns, I continue to see Endeavour as a top-10 name in the sector.
While Endeavour may not have the best jurisdictional profile, it has done a great job diversifying itself across West Africa (Senegal, Cote D'Ivoire, Burkina Faso), and it's done a phenomenal job optimizing its portfolio. The result is a portfolio with several strong assets consistently producing at sub $1,000/oz all-in sustaining costs even in a highly inflationary environment. Investors are now reaping the benefits of this hard work, enjoying a 5.0%+ yield from share buybacks and annual dividends. Given Endeavour's strong track record, solid organic growth profile, and industry-leading capital returns, I would view any pullbacks below US$20.00 as low-risk buying opportunities.
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"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.
Disclosure: I/we have a beneficial long position in the shares of EDVMF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. Given the volatility in the precious metals sector, position sizing is critical, so when buying small-cap precious metals stocks, position sizes should be limited to 5% or less of one's portfolio.
Endeavour Mining reported its Q2 2021 results in early August, which beat analysts' expectations. Check out my investment thesis for Endeavour stock.
Furthermore, A total of $70 million of shares have been repurchased since the start of the buyback program on 9 April 2021 until the end of July 2021, of which $59 million or 2.7 million shares were repurchased in 2Q21.. Endeavour Mining2Q203Q204Q201Q212Q21 Total Revenues in $ Million253.08481.56419.56635.79753.43Net Income in $ Million-37.2359.1324.3389.57126.78EBITDA $ Million42.75233.02124.18332.41359.90EPS diluted in $/share-0.340.360.160.430.50Operating Cash flow in $ Million57.42201.88363.67197.94300.48Capital Expenditure in $ Million58.3353.5770.01113.70144.04Free Cash Flow in $ Million-0.91148.32293.6684.24156.44Total Cash $ Million351.8523.3645.0868.2832.88Total Long term Debt in $ Million8267206881,045930Shares outstanding (diluted) in Million110.99162.99163.23209.21253.43 Production Au Oz2Q203Q204Q201Q212Q21 Total Production Gold produced149244343347409AISC (co-product) from continuing operations750935779858853Gold Price realized1,6891,8411,8411,7491,791Click to enlarge Source: Company release.. Good production performance quarter over quarter overall, but the Boungou gold mine production fell significantly due to lower grade despite higher ore processed this quarter.. The company is generating solid free cash flow resulting from the Teranga acquisition, which will help it achieve its "new phase" by financing its large CapEx program.. However, depending on the gold price strength and the cautiousness of the FED, EDVMF could cross the resistance and retest $26.50.. Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange.
Endeavour Mining plc's (EDVMF) CEO Sebastien de Montessus on Q2 2021 Results - Earnings Call Transcript ›
Endeavour Mining plc (OTCQX:EDVMF) Q2 2021 Earnings Conference Call August 04, 2021 8:30 AM ET Company Participants Martino De Ciccio – Vice President of Strategy & Investor Relations...
Sebastien and Joanna will start by discussing the Q2 operational and financial highlights, Mark will then walk you through our detailed results by mine and finally Patrick will give you a brief overview of our half year exploration results.. This cash flow has also allowed us to continue to aggressively explore with $50 million spent this year already and given the strong results we will be announcing in the coming weeks, I can already confirm that the group is on track to deliver again over 2.5 million ounces of indicated resources this year, thanks to Patrick and his team.. Production increased this quarter compared to Q1 due to higher grades coming from the Sofia Main pit that the Massawa area now contributing all of the mill feed, which is expected to remain the case for the remainder of the year.. Moving onto Boungou, which has now completed its third full year, third full quarter since the restart of mining operations last year, following a strong Q4 and Q1 production declined in Q2 as a greater focus was placed on waste extraction and mining was constrained to lower grade areas.. Moving to Karma now on Slide 52 in the first half of 2021 exploration work was implemented as part of an advance grade control type reading, as mentioned by Mark, targeting the immediate extensions of the Kao Main mine mineralization at Kao north and accelerating, they are naturally incorporation into the very short-term mine plant.. The Wona underground alongside we see underground should allow to give a good solid profile for the next four, five years for Mana with about 100,000 ounce provided by each underground mines, so between 180,000 to 200,000 ounces annual production for the asset over the next few years.. Just start inside just as we were talking about the wet season, just as we finished that it started raining here, but moving onto Sabodala, yes, what we're looking at is starting up stripping and getting everything sorted to start mining in central zone at the end of this year, so that it will become a production site for next year.. I know we've talked about, there's been commentary about mining Sofia a little bit Sabodala coming into the end of the year, but back in the end year, but – in terms of just magnitude of great; can you – it seemed like it was a bit of an outlier in Q2.
Endeavour Mining PLC (EDVMF) CEO Sebastien de Montessus on Q3 2021 Results - Earnings Call Transcript ›
Endeavour Mining PLC (OTCQX:EDVMF) Q3 2021 Earnings Conference Call November 11, 2021, 08:30 ET Company Participants Martino De Ciccio - VP, Strategy & IR Sebastien de Montessus -...
On the call today, I am joined by Sebastien, Mark, Joanna and Patrick.. Sebastien and Joanna will start by discussing the Q3 operational and financial highlights, and Mark will then walk you through the details mine by mine.. First is our continued strong operating performance.. On the following slides, Joanna will take you through our financial performance into more detail.. Investing activities included a $55 million spend on sustaining capital expenditures, $42 million on nonsustaining CapEx and $11 million on our growth projects.. We still believe our share price is significantly undervalued and makes a good capital allocation to continue buy back our shares, given our strong cash flow generation.. We are also making good progress towards completing the definitive feasibility studies for Sabodala-Massawa Phase 2, Fetekro and Kalana.. Production at Sabodala-Massawa increased in the third quarter of 2021 compared to the previous quarter, mainly due to the good grades being mined in the Sofia mine pit at Massawa.. Given its strong performance year-to-date, full year 2021 production is well positioned to be near the top end of guidance.. On Slide 30, production at Houndé is on track to be near the top end of guidance, thanks in large part to the success of Kari Pump.. Houndé is expected to achieve its full year 2021 production guidance, which would mark a good year following the mines restart.. Overall, quarter 3 was another strong and consistent quarter across all of our operations, despite the wet season, where we continue to improve our performance through better planning and mining sequence.. I mean the team with Mark and Joanna are also available to take questions.
Endeavour Mining comes with double-digit ROCE, 40% plus margins at a free cash flow yield just shy of 20%. See if you should buy EDVMF stock.
During a challenging year for the sector, Endeavour Mining reported solid results from its operations and went on a shopping spree, announcing two transformative acquisitions while the sector was on sale.. These two deals have strengthened the stock's investment case, with FY2021 set to be a great year with 55% production growth, margin expansion, and up to ~$1 billion in free cash flow.. Endeavour Mining released its Q4 and FY2020 results last week and reported quarterly gold production of ~344,000 ounces at all-in sustaining costs of $803/oz.. These strong results with the inclusion of Boungou and Mana (Semafo acquisition) helped push annual gold production above ~900,000 ounces, translating to a 39% increase in output on a year-over-year basis.. As shown in the chart above, Endeavour saw a strong finish to FY2020, with quarterly gold production of ~344,000 ounces helped, translating to a 93% increase in production year-over-year.. During Q4, Hounde production increased by 83% from Q4 2019 levels to 101,000 ounces of gold production, with FY2020 production up more than 20% to 277,000 ounces.. This translated to a more than 1000% increase in free cash flow to ~$476 million, up from $38 million in FY2019.. In addition to high double-digit revenue growth, Endeavour also enjoyed strong margin expansion, with AISC margins coming in at $1,038/oz in Q4, up 66% year-over-year (FY2019: $626/oz).. Looking at the chart below, Endeavour is now sitting just shy of the 20 million ounce reserve mark, which translates to a more than 11-year mine life based on an annual production profile of ~1.4 million ounces per year.. It's also worth noting that Endeavour stacks up very well from a grade standpoint, with 18.03 million ounces of reserves at an average grade of 1.87 grams per tonne gold.. However, as the below chart shows, Endeavour is only slightly behind B2Gold for costs with FY2021 AISC guidance of $875/oz vs. B2Gold at $800/oz.. If we look at the below valuation metrics compared to peers, Endeavour offers immense value at current levels.. Even if we assume a much weaker gold price in FY2021 and account for the divestment of Agbaou, Endeavour should have no issue generating a minimum of ~$950 million in free cash flow, which is an incredible metric for a company with a market cap of ~$5.24 billion.
Endeavour Mining (EDVMF) released Q3 earnings results. Check out why I continue to see Endeavour stock as a top-5 gold producer.
Endeavour Mining released its Q3 results this week, reporting quarterly production of ~382,000 ounces, translating to a 56% increase in year-over-year production.. These two acquisitions have diversified the company's operations and significantly improved the business, with Endeavour now sporting seven low-cost mines vs. 3 low-cost mines and one high-cost mine (Agbaou) as of Q1 2020.. This figure would have been 8 mines, and production growth would have been even higher, but Endeavour chose to divest Agbaou recently, given that it was one of its highest-cost mines.. However, despite a busy 18 months, Endeavour Mining is still very much a growth story, especially relative to other producers in the million-ounce producer space that are simply trying to hold the line on annual production.. This is because Endeavour Mining has two projects in the wings that can produce over 360,000 ounces per annum combined (Kalana & Fetekro) and increased production from the company's Tier-2 Sabodala-Massawa Mine, which is projected to see production increase to 400,000 plus ounces per annum.. The culprit for the lower production at Hounde was lower grades relative to Q2 2021 (2.11 grams per tonne gold vs. 2.47 grams per tonne gold) due to waste stripping at the Vindaloo Main and Kari Pump Phase 2 pits.. Moving over to Endeavour's newest mine, Wahgnion, production came in at ~34,000 ounces vs. ~41,000 ounces in Q2 2021.. However, while these three mines saw sequential declines, Sabodala-Massawa had an exceptional quarter, and Boungou pulled its weight too, producing ~41,000 ounces at industry-leading costs of $800/oz despite higher security costs and higher fuel prices.. This robust performance was from processing ~1.08 million tonnes at 3.32 grams per tonne gold, a minor increase in throughput, and grades from ~1.07 million tonnes at 3.20 grams per tonne gold in the previous quarter.. While Endeavour's average realized gold price in Q3 came in at just $1,763/oz, the company still managed to post ~49% AISC margins, with margins coming in at $859/oz in the quarter.. In fact, the only companies with similar costs to Endeavour Mining are B2Gold ( BTG ), Newcrest ( OTCPK:NCMGF ), Polyus ( OTC:OPYGY ), and Kirkland Lake Gold ( KL ).. Still, while both B2Gold and Endeavour Mining are Tier-3 jurisdiction producers, Endeavour Mining benefits from significantly more diversification.. This is because while it operates out of less favorable jurisdictions, it has 7 mines and a path to 8 mines by 2026 (Fetekro, Kalana), while B2Gold has just three mines and more than 55% of production coming from a single asset, making it higher risk.
Endeavour Reports Q3-2017 Results; FY-2017 Guidance Increased with Houndé
Q3 total production remained fairly flat over Q2 at 148koz with AISC also flat at $906 /oz; year-to-date performance on track to meet the initial FY-2017 guidance Successful early commissioning of the Houndé flagship mine lifts full year production guidance to 630-675koz and decreases AISC guidance to below $900 /oz Q3 Free Cash Flow Before Growth Projects flat over Q2 at $34m , with $100m achieved year-to-date Net Debt increased from $183m to $221m since the previous quarter-end due to Houndé construction spend, with Net Debt to EBITDA ratio remaining healthy at 0.. waste cap)8.687.89Tonnes milled, kt2,1462,106Grade, g/t2.092.20Recovery rate, %94%97% PRODUCTION, KOZ134138 Cash Cost/oz541430 AISC/OZ634534 In Q4-2017, production is expected to decrease slightly and AISC is expected to increase as the mine continues to progress towards a greater oxide to fresh/transitional ore blend, with an increased planned sustaining capital spend.. Mining unit costs decreased from $1.96 /t to $1.75 /t, due to lower drilling and blasting requirements as a result of mining less hard ore from the Rambo deposit and less drill grade control due to mining more waste.. waste cap)3.303.0111.83Purchased ore milled, kt5382141Purchased ore grade, g/t4.693.203.23Total Tonnes milled, kt368362424Grade, g/t3.392.462.40Recovery rate, %92%92%82% PRODUCTION, KOZ 372724 Cash cost/oz6008381,038 AISC/OZ7059851,136 Table 16: Nzema YTD Performance Indicators. waste cap)4.148.00Purchased ore milled, kt213332Purchased ore grade, g/t3.513.11Total Tonnes milled, kt1,1211,333Grade, g/t2.731.77Recovery rate, %93%85% PRODUCTION, KOZ 9164 Cash cost/oz7391,099 AISC/OZ8591,184 After a strong Q3, production in Q4 is expected to decrease and AISC are expected to increase notably due to anticipated lower grade and recovery rate.. 30, 2017FY-2017 INITIAL GUIDANCE Agbaou2.05.17.0Tabakoto18.104.22.168Ity1.87.710.0Karma0.52.24.0Houndé1.04.05.0Other2.411.65.0 Total22.214.171.124 During the first 9 months, the near-mine exploration expenditures were focused on Ity, Tabakoto, Agbaou and Karma, in line with guidance and our Strategic Exploration plan.. The Group's year-to-date Free Cash Flow (before working capital, tax, finance cost, and growth projects) decreased by $6 million to $100 million , compared to the same period of 2016, as increased gold sales were offset by a $12 million increase in sustaining and non-sustaining exploration expenditures and lower margins from notably the Tabakoto and Ity mines.. As expected, the Net Debt position increased from $26 million as at the end of December 2016 , to $221 million as at the end of September, 2017, mainly due to: $221 million spent on growth projects, $39 million added from the Houndé financing agreement, $54 million for the purchase of an additional 25% stake in the Ity mine, partially offset by the net equity proceeds of $77 million since the beginning of the year.
Endeavour Mining, a leading West-Africa-focused gold miner, sets sights on free cash flow and organic growth for 2021 By Proactive Investors ›
Endeavour Mining, a leading West-Africa-focused gold miner, sets sights on free cash flow and organic growth for 2021
One of the top 15 global gold producers and member of the World Council Aims to discover 10 to 15 million ounces of indicated resources by 2021 Quickly approaching a net cash position. What Endeavour Mining Corp does:Endeavour Mining Corporation (TSE:EDV) (OTCMKTS:EDVMF) is a leading gold miner with several assets, focused on West Africa, which offers investors both near and long-term growth potential.. It also has four potential development projects (Fetekro, Kalana, Bantou and Nabanga) and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Ivory Coast, Mali and Guinea.. In late March 2021, the company announced blockbuster results for its fourth quarter of 2020 -- US$553 million in revenue driven by record gold production from its West African operations.. Adjusted net earnings hit US$166 million – a large jump from the $37 million it put up in 4Q 2019.. The miner also produced 344,000 ounces during the three-month period ended 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.. On February 24, Endeavour Mining reported positive pre-feasibility studies (PFS) for both its Fetekro and Kalana gold projects, in Ivory Coast and Mali respectively, which showed long mine lives, attractive economics, and confirmed the company has a strong pipeline of assets, which it can grow organically.. The PFS for Fetekro showed a 10-year mine that could produce over 200,000 ounces a year with an after-tax net present value (NPV) of US$470 million and internal rate of return (IRR) of 33%, based on a gold price of US$1,500 an ounce.. Meanwhile, the PFS for Kalana envisages an 11-year project with an average annual production of 150,000 ounces at AISC of US$901 per ounce.. It was the eighth consecutive year the group achieved its annual output guidance, it noted.. The group's net cash position was around C$70 million at the 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.. FedEx: KeyBanc Positive Into Earnings, Says Concerns are Discounted By Investing.com - Sep 09, 2022By Senad Karaahmetovic. FedEx (NYSE:FDX) is due to report earnings later this month with the majority of analysts concerned about the challenging macro outlook and...
Endeavour Mining Corporation: Endeavour Reports Q2-2017 Results; On-Track to Meet Full Year Guidance ›
ENDEAVOUR REPORTS Q2-2017 RESULTS; ON-TRACK TO MEET FULL YEAR GUIDANCE View News Release in PDF Format (http://hugin.info/171882/R/2124584/810728.pdf) View Presentation in PDF
30, 2016 Q2-17 vs. Q2-16 Gold Production, oz 152,283 158,640 138,487 310,923 261,876 +19% Realized Gold Price, $/oz 1,219 1,190 1,257 1,204 1,225 (2%) AISC, $/oz 897 905 901 901 896 +1% All-in Sustaining Margin, $/oz 321 285 356 303 330 (8%) All-in Sustaining Margin, $m 49 46 45 95 82 +16% Free Cash Flow Before Growth Projects 2 , $m 33 32 29 65 61 +8% Adjusted EBITDA, $m 64 47 56 111 101 +10% Net Debt At Period End, $m (183) (62) (26) (183) (26) na Earnings From Mine Operations, $m 38 27 44 65 71 (8%) Basic Net Earnings (Loss), $/share 0.14 (0.08) (0.27) 0.06 (0.25) na Adjusted Net Earnings, $/share 0.11 0.12 0.27 0.23 0.39 (41%). The Group's production from continuing operations in H1-2017 increased by 49koz (+19%) compared to H1-2016, mainly due to the addition of Karma and asset optimization work done at Tabakoto and Nzema which offset the decreased Ity production, while Agbaou production remained fairly flat.. Processing unit costs increased due to the increase in harder, fresh, ore put through the plant resulting in increased mill power, higher reagent consumption, higher general wear and tear on crushing and grinding equipment, and other maintenance costs.. Production is expected to slightly increase in H2-2017 as higher hard ore grade is expected to compensate for lower mill throughput and recoveries as the mine continues to progress toward a 50% oxide to fresh/transitional ore blend.. Underground production decreased, despite higher grades mined at both Segala and Tabakoto underground, to due to less tonnage mined and increased development, which is expected to give access to higher grade ore zones in H2-12017.. Open pit mining unit costs increased due to increased waste mined at Kofi B and reduced volumes mined at Kofi C as it approaches the end of its mine life.. Mining activities increased over the previous quarter due to higher equipment availability, resulting in a 14% increase in ore tonnes mined.. Mining costs per tonne increased 7% due to less volume mined as well and increased blasting activity as the GG2 pit moves into transitional ore.. Free cash flow (before working capital, tax, finance cost, and growth projects) increased by $4 million in H1-2017 to $65 million, compared to H1-2016, despite significantly increasing total exploration expenditures.. SIX MONTHS ENDED (in US$ million) JUN 30, 2017JUN 30, 2016GOLD SOLD, koz 315 248 Gold Price, $/oz 1,204 1,225 REVENUE 379 304 Total cash costs (219) (173) Royalties (20) (14) Corporate costs (12) (10) Sustaining capex (25) (23) Sustaining exploration (8) (3) ALL-IN SUSTAINING COSTS ("AISC") 283 222 ALL-IN SUSTAINING MARGIN9582 Less: Non-sustaining capital (14) (15) Less: Non-sustaining exploration (16) (7) FREE CASH FLOW BEFORE GROWTH PROJECTS (and before interest, working capital, tax & financing costs) 6561 Working capital (23) (25) Taxes paid (11) (9) Interest paid (5) (7) Cash settlements on hedge programs and gold collar premiums (4) (4) NET FREE CASH FLOW FROM OPERATIONS2315 Growth projects (127) (17) Exploration expense (4) (2) Other (foreign exchange gains/losses and other) 2 (1) Cash received from Youga mineral property interest - 22 Operating cash flow from Youga discontinued operation - 1 Cash paid on settlement of share appreciation rights, DSUs and PSUs (1) (1) Bridge loan advanced to True Gold - (15) True Gold cash acquired, less acquisition COC payments - 10 Acquisition and restructuring costs (2) (18) Acquisition of mining interests (59) - Net equity proceeds 52 73 Proceeds (repayment) of long-term debt 78 (43) CASH INFLOW (OUTFLOW) FOR THE PERIOD(39)24. As expected, the Net Debt position increased from $26 million as at the end of December, to $183 million as at the end of June, 2017, mainly due to $127 million spent on growth project, $39 million added from Houndé financing agreement, and $59 million of acquisitions made which were partially offset by the $52 private placement from La Mancha Holding S.A.R.L... Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates.. AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in sustaining margin, free cash flow, net free cash flow, free cash flow per share, net debt, and adjusted earnings are non-GAAP financial performance measures with no standard meaning under IFRS, further discussed in the section Non-GAAP Measures in the most recently filed Management Discussion and Analysis.
Gold & Silver Seeker Report: This Week in Mining Issue #21 - Financing's Galore, Early Q2 Production Numbers, and Gold Holding Strong ›
Major news in mining this week was the large number of announced and completed equity financing's. Eric Sprott was involved in many of these. Gold and silver had another strong week but a consolidation period can happen at any time. It isn’t uncommon see retrenchments of 15-25% [in the mining equities], which could happen tomorrow or several months down the line but it will happen. Time will tell. Gold and Silver have massive tailwinds and there are countless potential catalysts in the second half of this year alone.
production of 170k oz.. $11m and increase expected gold production to 50k oz.. Gold production is now expected to total 110-125k oz.. Au at total cash costs of $880/oz.-to-$920/oz.. Au (75.5k oz.. and 10.03k oz.. K92 Mining: While the majority of mining companies saw Q2 production be interrupted as a result of CV19 and resulting mining suspensions and protocols, K92 achieved record AuEq production of 26.85k oz., a 37% year over year increase.. [5.2m oz.. and 1H 2020 production of 315k oz.. Au, 450k oz.. Au, 475k oz.. Au, with 38.9k oz.
NEWS RELEASE - TSX: EDVAll amounts in US$ ENDEAVOUR MINING REPORTS FIRST QUARTER 2017 RESULTS All mines on-track with guidance · Houndé construction on-time on-budget · Ity CIL project optimization underway ...
Production of 159koz at AISC of $905/oz, both on track to be within FY-2017 guidance All-in Sustaining Margin of $46m, up 24% over the previous year due to stronger production Free Cash Flow Before Growth Projects (and before WC, tax and financing cost) of $32m, on-track to meet guidance of $125m based on gold price of $1,200/oz Net debt increased to $62m from $26m at year-end 2016 due to Houndé construction spend Remain well positioned to fund growth with $48m La Mancha private placement closed in April 2017, increasing available sources of financing and liquidity to $345m (pro-forma at March 31) Adjusted net earnings of $0.10 per share in Q1-2017 compared to $0.10 in Q1-2016. Compared to Q4-2016, as anticipated, production decreased mainly due to Agbaou returning to a more normalized production rate (following its record Q4-2016 performance), while Karma continued to ramp-up, Nzema improved as it started to benefit from the completion of the cut-back, Ity remained fairly stable, and Tabakoto decreased in line with its anticipated open pit grade profile decline.. The Group AISC increased compared to Q1-2016 mainly due to a $17/oz increase in sustaining exploration, in line with Endeavour's strategy of extending mine lives.. Compared to Q4-2016, Group AISC increased mainly due to the expected increase at Agbaou, following its record quarter in Q4-2016.. waste cap)7.707.1714.29UG tonnes ore mined, kt236253233Tonnes milled, kt405402406Grade, g/t3.503.933.10Recovery rate, %94%95%94% PRODUCTION, KOZ 434839 Cash cost/oz771769808 AISC/OZ9759271,071 As expected, All-in Sustaining Costs increased compared to Q4-2016 to be within the FY-2017 guidance of $950-990/oz While the AISC were impacted by the aforementioned lower grades and lower production, the cash cost remained fairly stable as the mine benefited from improved unit costs (on a $/t basis) reflecting the efforts and continuous focus on cost reduction which is expected to continue throughout 2017.. Mining activities improved over the previous quarter, due to higher equipment availability, resulting in 23% more tonnes mined than stacked during the quarter.. waste cap)4.443.666.31Tonnes stacked, kt267295303Grade, g/t1.902.002.53Recovery rate, %98%90%90% PRODUCTION, KOZ 161722 Cash cost/oz750760609 AISC/OZ879827710 Ity remains on track to finish within its FY-2017 All-in Sustaining Costs guidance (with details provided in the "2017 outlook" section), despite AISC increasing by 6% compared to Q4-2016.. waste cap)3.144.14 Tonnes stacked, kt954853 Grade, g/t1.071.14 Recovery rate, %87%90% PRODUCTION, KOZ 3229 Cash cost/oz661657 AISC/OZ748738 All-in sustaining costs are tracking in line with the FY-2017 guidance of $750-800/oz, remaining fairly flat over Q4-2016: AISC benefited from its increased production profile.. Sustaining capital is expected to increase later in the year due to stripping activities related to the Kao pit, which is expected to be in operation by year-end 2017.. Free cash flow (before working capital, tax, and growth projects) remained flat at $32 million, despite an increase of $6 million in non-sustaining exploration expenditures.. Endeavour remains well positioned to fund growth with $345 million (pro-forma as at March 31, 2017 to include the private placement) which includes its $135 million cash position and $210 million undrawn on the revolving credit facility, in addition to its strong cash flow generation.