Endeavour Mining (EDV) Q4 2024 earnings summary

Executive summary

• Achieved FY-2024 gold production of 1,103koz at AISC of $1,218/oz, reversing a multi-year production decline and maintaining industry-leading safety and ESG performance.

• Successful ramp-up and delivery of Lafigué and Sabodala-Massawa BIOX projects increased production base, portfolio quality, and diversification.

• Record free cash flow of $268m in Q4 and $654m for FY-2024, supporting rapid deleveraging to a 0.55x net debt/EBITDA ratio and record shareholder returns.

• Declared record FY-2024 dividends of $240m, supplemented by $37m in share buybacks, totaling $277m in shareholder returns ($251/oz produced), with increased returns expected in FY-2025.

• Achieved sector-leading ESG ratings, published 2024 sustainability report, and maintained low emissions intensity.

Financial highlights

• Adjusted EBITDA rose 27% year-over-year to $1,325m in FY-2024, driven by higher production and gold prices.

• Q4-2024 adjusted EBITDA surged 72% from Q3-2024 to $546m, with margin up 13pp to 58%.

• FY-2024 free cash flow reached $654m, up $487m from FY-2023, with Q4-2024 free cash flow at $268m.

• Net debt reduced to $732m (0.55x net debt/EBITDA) at year-end 2024.

• Recognized a $200m non-cash impairment related to Kalana (Mali) and Golden Hill (Burkina Faso) assets.

Outlook and guidance

• FY-2025 production guidance set at 1,110–1,260koz at AISC of $1,150–1,350/oz, with capital expenditure expected to decrease 27% year-over-year to $440m.

• Minimum $225m dividend planned for FY-2025, with potential for supplemental returns if gold price remains above $1,850/oz.

• Production targeted to grow 36% by 2030, maintaining stable cost profile.

• FY-2025 exploration budget set at $75m, focused on near-mine and Assafou drilling.

• Shareholder returns anticipated to increase in 2025-2026, with buybacks up 69% year-to-date.