Endeavour Mining (EDV) Q4 2023 earnings summary

Executive summary

• FY-2023 production reached 1,072koz at AISC of $967/oz, marking the 11th consecutive year of meeting production guidance.

• Growth projects advanced on budget: Sabodala-Massawa BIOX expansion remained on schedule for first gold in early May 2024; Lafigué was ahead of schedule for Q2-2024.

• FY-2024 production guidance of 1,130-1,270koz reflects up to nearly 200koz of growth from project commissioning; AISC guidance is $955-1,035/oz.

Financial highlights

• FY-2023 adjusted EBITDA was $1,047m vs. $1,133m in FY-2022; adjusted EBITDA margin was 50%.

• FY-2023 net earnings were a loss of $23m; adjusted net earnings were $230m, or $0.93/share, vs. $194m and $0.78/share in FY-2022.

• FY-2023 operating cash flow before working capital was $746m vs. $982m; operating cash flow was $619m vs. $910m.

• Q4-2023 adjusted EBITDA was $292m vs. $263m in Q3; operating cash flow before working capital rose 103% QoQ to $246m.

• Q4-2023 net loss was $160m, while adjusted net earnings were $42m, or $0.17/share.

Outlook and guidance

• FY-2024 production guidance is 1,130-1,270koz, with output expected to be more heavily weighted to H2 as growth projects ramp up.

• FY-2024 AISC guidance is $955-1,035/oz, based on a $1,850/oz gold price and USD:EUR rate of 1.10.

• FY-2024 growth capital is expected to be $245m: $75m for Sabodala-Massawa BIOX and ~$170m for Lafigué; exploration spend guidance is $65m.

• Tanda-Iguela PFS is expected in late 2024; planned exploration includes 60,000m of drilling and a $15m budget.