Endeavour on Track to Meet Gold Guidance, Expects “Strongly Weighted” H2 Performance

Endeavour Mining (LSE:EDV,TSX:EDV,OTCQX:EDVMF) announced its Q2 operating and financial results on Wednesday (July 31), saying it’s on track to meet its annual production guidance for the 12th consecutive year.

The company’s Q2 gold production came to 251,000 ounces at an all-in sustaining cost (AISC) of US$1,287 per ounce, bringing its output for H1 to 470,000 ounces at an AISC of US$1,237 per ounce.

Its guidance for 2024 is set at 1.13 million to 1.27 million ounces of gold, with performance ‘strongly weighted’ toward H2. AISC is projected to come in near the top of the guided range of US$955 to US$1,035 per ounce.

Endeavour’s outlook includes anticipated higher production at Ity offsetting lower output at Sabodala-Massawa.

The company’s revenue amounted to US$556.8 million in Q2, driven by higher gold sales volumes and a rise in the realized gold price. That’s up from US$472.7 million in the previous quarter and US$524 million a year ago.

Endeavour posted adjusted EBITDA of US$249 million, up 17 percent from Q1. Its adjusted net earnings for the period stood at US$3 million, or US$0.01 per share, while operating cashflow reached US$258 million, or US$1.05 per share.

The company also maintained stable net debt of US$835 million at the end of the second quarter, which Endeavour believes gives it a healthy financial position as it approaches the end of its growth phase.

In terms of its growth projects, Endeavour achieved first gold pours at the Sabodala-Massawa BIOX expansion and Lafigué project during Q2. Both assets are expected to reach their full production capacities in Q3.

“We’ve now delivered our two growth projects ahead of schedule, and we’re in the process of ramping them up to support a stronger H2 performance. Beyond H2, these projects underpin our more diversified and higher quality portfolio,” CEO Ian Cockerill explained to investors during the company’s earnings call.

In terms of exploration, Endeavour spent US$56 million spent in H1. Its exploration budget for the full year has been raised from US$65 million to US$77 million due to promising results at Houndé, Ity and Sabodala-Massawa.

“We remain focused on growing the business organically, and we are continuing to bolster our longer term organic pipeline through our exploration program,” Cockerill added. “This has made good progress during the quarter by advancing resource to reserve conversion at our key mines and projects, which is a key priority for us this year.’

Shares of Endeavour are relatively flat year-to-date and closed Thursday (August 1) at C$29.32 on the TSX.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.