Endeavour Mining (EDV) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong operational and financial results, with gold production of 341,000 ounces at an AISC of $1,129/oz, representing over 30% of the lower end of annual guidance.

• Record free cash flow of $409 million, up 53% from Q4 2024, supported by higher gold prices and disciplined cost management.

• Net debt reduced by over $350 million to $378 million, with leverage at 0.22x net debt/Adjusted EBITDA, well below the 0.5x target.

• Shareholder returns increased, with $277 million already committed for 2025, including $52 million in buybacks YTD and a record 5.9% yield in 2024.

• Exploration spend reached $24 million in Q1, with 101,800 meters drilled and a focus on advancing the Assafou project.

Financial highlights

• Adjusted EBITDA grew 12% quarter over quarter to $613 million, with a margin of 58.8%.

• Free cash flow up 53% sequentially to $409 million; free cash flow per ounce produced was $1,199 in Q1.

• Operating cash flow before working capital reached $592 million, up 66% from Q4.

• Earnings per share doubled from $0.45 to $0.90, with adjusted net earnings at $219 million (+99% QoQ).

• Realised gold price increased 7% to $2,783/oz compared to Q4-2024.

Outlook and guidance

• FY-2025 production guidance reaffirmed at 1,110–1,260koz at AISC of $1,150–$1,350/oz; Q1 output represents over 30% of lower end.

• Production expected to be first-half weighted, with slightly lower grades and higher costs in H2.

• Minimum FY-2025 shareholder return set at $277 million, with potential for further supplemental returns.

• Exploration budget for FY-2025 is $75 million, focused on resource expansion at Assafou and new greenfield opportunities; DFS for Assafou on track for late 2025/early 2026.

• Q2 cash flow to be significantly impacted by seasonal tax payments, with 55% of annual tax due in Q2.