Endeavour Mining has reported robust second-quarter results, concluding what chief executive Ian Cockerill describes as an "excellent" first half of the year.
The company produced 647,000 ounces of gold at an all-in-sustaining cost (AISC) of $1,281 per ounce, positioning itself firmly to achieve its full-year guidance of 1.1 million to 1.26 million ounces at an AISC of between $1,150 and $1,350 per ounce.
“As a result of our larger portfolio, following the completion of our growth phase 12 months ago, production [for the first half of this year] was 38% higher than the same period last year, with our all-in sustaining margin 80% higher, ensuring that we realised the full benefit of the strong gold price environment,” he said.
The company's financial performance was equally impressive, with first-half earnings before interest, taxes, depreciation, and amortisation (EBITDA) reaching $1.14 billion—a 226% increase compared to the $596 million recorded in the prior comparable period.
Over the past 12 months, Endeavour generated $879 million in free cash flow, equating to over $687 per ounce of gold produced, or a yield exceeding 17% from the start of the period.
“During half one, despite paying approximately 70% of our full-year’s taxes, we still generated record free cash flow of $514-million, equivalent to $794 for every ounce of gold we produced, and we are well positioned to continue delivering strong free cash flow in the second half of the year,” said Cockerill.
This robust financial position enabled Endeavour to maintain leverage below its target while returning significant value to shareholders.
The company declared a record dividend of $150 million during the period, supplemented by $69 million in share buybacks—equivalent to returns of $338 per ounce of gold produced.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
