REG-Endeavour Reports Strong Q1-2025 Results
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NEWS RELEASE – LSE & TSX: EDV All amounts in US$
ENDEAVOUR REPORTS STRONG Q1-2025 RESULTS
FY-2025 guidance on track • Adjusted EBITDA of $613m • Record Free Cash
Flow of $409m
OPERATIONAL AND FINANCIAL HIGHLIGHTS
* Strong quarterly production of 341koz at AISC of $1,129/oz; on track to achieve FY-2025 guidance with performance slightly weighted towards H1-2025, following strong Q1-2025 performance at the Houndé mine.
* Adj. EBITDA of $613m for Q1-2025, up 12% over Q4-2024.
* Adj. Net Earnings of $219m (or $0.90/sh) for Q1-2025, up 99% over Q4-2024.
* Operating Cash Flow before changes in working capital of $592m (or $2.43/sh) for Q1-2025, up 66% over Q4-2024.
* Record Free Cash Flow of $409m (or $1.68/sh) for Q1-2025, up 53% over Q4-2024; Free Cash Flow of $775m generated over the past three quarters following the completion of the Group’s growth phase in Q2-2024.
* Net debt reduced by over $350m in Q1-2025 to $378m; Net Debt / Adj. EBITDA (LTM) improved to 0.22x, significantly below the Group’s 0.50x target.
SECTOR LEADING SHAREHOLDER RETURNS
* Record $140m (or $0.57/sh) H2-2024 dividend paid in early Q2-2025, record FY-2024 dividends of $240m; supplemented with $37m of share buybacks bringing total returns to $277m, equivalent to a 5.9% yield or $251/oz produced.
* FY-2025 total returns expected to be larger than FY-2024 as minimum dividend of $225m has already been supplemented with $52m of share buybacks year to date; bringing minimum FY-2025 returns to $277m.
ATTRACTIVE ORGANIC GROWTH
* Assafou project DFS on track for completion between late-2025 and early-2026, with exploration ongoing at Assafou and at the nearby Pala Trend 3 target, where a maiden resource is expected in H2-2025.
* Strong exploration efforts with $ 24 m spent in Q1-2025 , focused on near-mine resource expansions and Assafou.
London, 1 May 2025 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF)
(“Endeavour”, the “Group” or the “Company”) is pleased to announce
its operating and financial results for Q1-2025, with highlights provided in
Table 1 below.
Table 1: Operating and financial highlights
All amounts in US$ million unless otherwise specified THREE MONTHS ENDED
31 March 2025 31 December 2024 31 March 2024 Δ Q1-2025 vs. Q4-2024
OPERATING DATA
Gold Production, koz 341 363 219 (6)%
Gold sold, koz 353 356 225 (1)%
Total Cash Cost (1), $/oz 929 979 1,007 (5)%
All-in Sustaining Cost (1), $/oz 1,129 1,141 1,186 (1)%
Realised Gold Price (2), $/oz 2,783 2,590 2,041 +7%
CASH FLOW
Operating Cash Flow before changes in working capital 592 356 137 +66%
Operating Cash Flow before changes in working capital (1), $/sh 2.43 1.46 0.56 +66%
Operating Cash Flow 494 381 55 +30%
Operating Cash Flow (1), $/sh 2.03 1.56 0.22 +30%
Free Cash Flow (1,3) 409 268 (132) +53%
Free Cash Flow (1,3), $/sh 1.68 1.10 (0.54) +53%
PROFITABILITY
Net Earnings Attributable to Shareholders 173 (119) (20) n.a.
Net Earnings, $/sh 0.71 (0.49) (0.08) n.a.
Adj. Net Earnings Attributable to Shareholders (1) 219 110 41 +99%
Adj. Net Earnings (1), $/sh 0.90 0.45 0.17 +100%
EBITDA (1,4) 540 357 156 +51%
Adj. EBITDA (1,4) 613 546 213 +12%
SHAREHOLDER RETURNS (1)
Shareholder dividends paid — 100 100 n.a.
Share buybacks 40 8 13 +400%
FINANCIAL POSITION HIGHLIGHTS (1)
Net Debt 378 732 831 (48)%
Net Debt / LTM Trailing adj. EBITDA (4) 0.22x 0.55x 0.80x (60)%
(1)This is a non-GAAP measure, refer to the non-GAAP Measures section for
further details. (2)Realised gold prices are inclusive of the Sabodala-Massawa
stream and the realised gains/losses from the Group’s revenue protection
programme. (3)From all operations; calculated as Operating Cash Flow less Cash
used in investing activities. (4)Last Twelve Months (“LTM”) Trailing
EBITDA adj includes EBITDA generated by discontinued operations.
Management will host a conference call and webcast today, 1 May 2025, at 8:30
am EST / 1:30 pm BST. For instructions on how to participate, please refer to
the conference call and webcast section at the end of the news release. Copies
of the Management Report and Financial Statements have been submitted to the
National Storage Mechanism and will be filed on SEDAR+. The documents will
shortly be available for inspection on the Company’s website and at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Ian Cockerill, Chief Executive Officer, commented: "We are pleased that the
strong momentum from the end of last year has continued into Q1, as we
delivered another quarter of exceptional operational performance, placing us
firmly on track to achieve our full-year guidance. Production and all-in
sustaining costs were significantly stronger than the prior year period, as we
realised the full benefit of our recently completed growth phase, coupled with
strong performance across the rest of the portfolio.
During Q1, we generated record free cash flow of over $400 million, reflecting
our transition to a highly free cash flow generative phase. Since completing
our growth phase, three quarters ago, we have generated more than $775 million
of free cash flow, equivalent to $795 per ounce produced.
Our strong free cash flow generation has enabled us to significantly
strengthen our balance sheet, reducing our net debt by over $350 million and
bringing our leverage ratio below our 0.50x target, down to 0.22x. Our
resilient balance sheet gives us the flexibility to invest in future organic
growth, through the tier 1 Assafou project, while sustainably rewarding
shareholders.
We supplemented our record FY-2024 dividend of $240 million, with $37 million
of share buybacks, bringing total shareholder returns for FY-2024 to $277
million, equivalent to an indicative yield of 5.9%, or $251 per ounce
produced, returned to shareholders. We have continued to increase our
commitment to shareholder returns and, year-to-date we have completed over $52
million of share buybacks, more than we purchased through the whole of 2024,
already bringing the minimum returns for FY-2025 to at least $277 million,
ensuring that FY-2025 total shareholder returns will exceed FY-2024.
Our tier 1 Assafou project continues to advance on schedule, with the project
shaping up to be a cornerstone asset in our portfolio. We now see significant
scope for the endowment of the wider district to continue growing, and we
expect to provide a resource update later this year, as we advance the
Definitive Feasibility Study towards completion.
Building on our momentum through the year, we will focus on maximising free
cash flow and enhancing shareholder returns, as we advance our high-quality
organic growth pipeline. With our higher-quality portfolio, sector leading
margins and best-in-class growth outlook, we are well positioned to capitalise
on the favourable gold price environment and deliver value for all of our
stakeholders.”
OPERATING SUMMARY
* Strong safety performance for the Group, with zero Lost Time Injuries during
the quarter and a Lost Time Injury Frequency Rate (“LTIFR”) of 0.05 for
the trailing twelve months ended 31 March 2025.
* The Group remains on track to achieve its production guidance of 1,110 -
1,260koz within the all-in sustaining cost (“AISC”) guidance of $1,150 -
1,350/oz, with production slightly weighted towards H1-2025, following
stronger than expected Q1-2025 performance at the Houndé mine as high-grades
were targetted ahead of the wet season and progressively lower grades expected
at the Ity and Sabodala-Massawa mines through the year, in line with their
mine sequences.
* Q1-2025 production amounted to 341koz, a slight decrease of 22koz over
Q4-2024, due to lower production at Houndé (despite being stronger than
expected) and Lafigué as lower grades were mined and processed in line with
the mine sequence. This was partially offset by an increase in production at
Mana due to mining of higher grade stopes and at Sabodala-Massawa due to
higher tonnes milled and higher recovery rates across both the CIL and BIOX
plants, while production at Ity was flat.
* Q1-2025 total cash cost amounted to $929/oz, an improvement of $50/oz over
Q4-2024 due to lower mining unit costs at Houndé and Sabodala-Massawa as we
optimised drill and blast programs and haulage distances were reduced,
respectively, and lower processing unit costs at Ity as reagent consumption
improved due to the ore blend. In addition, total cash costs benefitted from
12koz higher gold sales than gold produced, due to the timing of gold
shipments at Ity and Lafigué. This was partially offset by higher royalty
costs due to the prevailing higher gold prices and higher processing unit
costs at Mana and Lafigué due to increased power consumption and scheduled
maintenance, respectively.
* Q1-2025 AISC amounted to $1,129/oz, a decrease of $12/oz over Q4-2024 driven
by lower total cash costs and lower sustaining waste capital at Houndé and
Lafigué, partially offset by higher sustaining underground development at
Mana.
Table 2: Group Production
THREE MONTHS ENDED
All amounts in koz, on a 100% basis 31 March 2025 31 December 2024 31 March 2024
Houndé 92 109 42
Ity 84 84 86
Mana 46 41 42
Sabodala-Massawa 72 70 49
Lafigué 48 60 —
GROUP PRODUCTION 341 363 219
Table 3: Consolidated Total Cash Costs
(All amounts in US$/oz) THREE MONTHS ENDED
31 March 2025 31 December 2024 31 March 2024
Houndé 751 922 1,120
Ity 875 943 858
Mana 1,360 1,320 1,345
Sabodala-Massawa 959 1,107 890
Lafigué 918 748 —
GROUP TOTAL CASH COSTS (1) 929 979 1,007
(1)This is a non-GAAP measure, refer to the non-GAAP Measures section for
further details.
Table 4: Group All-In Sustaining Costs
All amounts in US$/oz THREE MONTHS ENDED
31 March 2025 31 December 2024 31 March 2024
Houndé 858 1,024 1,572
Ity 930 987 884
Mana 1,887 1,698 1,453
Sabodala-Massawa 1,173 1,261 947
Lafigué 926 801 —
Corporate G&A 43 41 49
GROUP ALL-IN SUSTAINING COSTS (1) 1,129 1,141 1,186
(1)This is a non-GAAP measure, refer to the non-GAAP Measures section for
further details.
SHAREHOLDER RETURNS PROGRAMME
* Endeavour’s shareholder returns programme is comprised of minimum
dividends that are supplemented with additional dividends and share buybacks
subject to operational performance, a healthy balance sheet and the gold price
being above $1,850/oz.
* Since its first shareholder returns payment in Q1-2021, Endeavour has
returned more than $1,232.4 million to shareholders, including $840.0 million
of dividends and $392.0 million of share buybacks, exceeding its minimum
returns commitments by $572.0 million, or 87%.
* For FY-2024, Endeavour returned record dividends of $240.0 million. The
H2-2024 dividend of $140.0 million ($0.57/sh) was paid on 15 April 2025 to
shareholders of record on 14 March 2025. FY-2024 shareholder returns were
further supplemented with $37.0 million of share buybacks, bringing total
shareholder returns for FY-2024 to $277.0 million, $67.0 million above the
minimum commitment, and equivalent to an indicative yield of 5.9%, or $251/oz
produced.
* The FY-2025 minimum dividend commitment is $225.0 million that is expected
to be paid in two semi-annual instalments. During Q1-2025, shareholder returns
continued to be supplemented with share buybacks with $40.0 million or 1.9
million shares repurchased during the period, an increase of 400% compared to
Q4-2024. The Group has continued to opportunistically buyback shares with
$12.4 million or 0.5 million shares repurchased during April, bringing total
YTD-2025 share repurchases to $52.4 million or 2.4 million shares up to 29
April 2025. As such, the total minimum return for FY-2025 already stands at
$277.4 million which is equivalent to the total shareholder returns for
FY-2024.
Table 5: Cumulative Shareholder Returns
(All amounts in US$m) MINIMUM SUPPLEMENTAL BUYBACKS TOTAL △ ABOVE
DIVIDEND DIVIDENDS COMPLETED RETURN MINIMUM
COMMITMENT COMMITMENT
FY-2020 — 60 — 60 +60
2021-2023 Shareholder Returns Programme FY-2021 125 15 138 278 +153
FY-2022 150 50 99 299 +149
FY-2023 175 25 66 266 +91
2024-2025 Shareholder Returns Programme (ongoing) FY-2024 210 30 37 277 +67
FY-2025 (Minimum) 225 — 52 277 +52
TOTAL TOTAL 885 180 392 1,457 +572
CASH FLOW SUMMARY
The table below presents the cash flow and net debt position for Endeavour for
the three-month periods ended 31 March 2025, 31 December 2024, and 31 March
2024, with accompanying explanations below.
Table 6: Cash Flow and Net Debt
THREE MONTHS ENDED
All amounts in US$ million unless otherwise specified Notes 31 March 2025 31 December 2024 31 March 2024
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital 592 356 137
Changes in working capital (98) 25 (82)
Cash generated from operating activities 1 494 381 55
Cash used in investing activities 2 (85) (113) (188)
Free Cash Flow (1,2) 409 268 (133)
Cash (used in)/generated from financing activities 3 (67) (136) 88
Effect of exchange rate changes on cash 10 — (12)
INCREASE/(DECREASE) IN CASH 353 132 (56)
Cash and cash equivalent position at beginning of period (3) 384 252 517
CASH AND EQUIVALENT POSITION AT END OF PERIOD (3) 737 384 461
Principal amount of $500m Senior Notes 500 500 500
Drawn portion of Lafigué Term Loan 130 133 147
Drawn portion of Sabodala Term Loan — 13 —
Drawn portion of $645m Revolving Credit Facility 485 470 645
NET DEBT (1) 4 378 732 831
Trailing twelve month adjusted EBITDA (1)(,)(4) 1,725 1,325 1,034
Net Debt / Adjusted EBITDA (LTM) ratio (1)(,)(4) 0.22x 0.55x 0.80x
(1)Free cash flow, net debt, and adjusted EBITDA are Non-GAAP measures. Refer
to the non-GAAP measure section in this press release and in the Management
Report. (2)From all operations; calculated as Operating Cash Flow less Cash
used in investing activities. (3)Cash and cash equivalents are net of bank
overdrafts (Nil at 31 March 2025; $13.1 million at 31 December 2024; $62.2 at
30 September 2024; Nil at 31 March 2024; Nil at 31 December 2023). (4)Trailing
twelve month adjusted EBITDA includes EBITDA generated by discontinued
operations.
NOTES:
1) Operating cash flows increased by $112.8 million from $381.4 million (or
$1.56 per share) in Q4-2024 to $494.2 million (or $2.03 per share) in Q1-2025
due to higher realised gold prices and lower operating costs, partially offset
by a working capital outflow (driven by a build-up of inventory and net
payment of accounts payable), higher royalties, higher income tax payments and
a higher realised loss on gold collars and LBMA averaging.
Operating cash flows increased by $439.1 million from $55.1 million (or $0.22
per share) in Q1-2024 to $494.2 million (or $2.03 per share) in Q1-2025 due to
higher revenues and lower income tax payments, partially offset by higher
operating costs and royalties, higher working capital outflows and a higher
realised loss on gold collars and LBMA averaging.
Notable variances are summarised below:
* Working capital was an outflow of $98.0 million in Q1-2025, a decrease of
$123.1 million over the Q4-2024 inflow of $25.1 million. The outflow in
Q1-2025 consisted of (i) a trade and other payables outflow of $47.8 million
related to decreases in supplier payables and payroll-related liabilities,
(ii) an inventory outflow of $44.1 million related to an increase in
gold-in-circuit inventory at Houndé and Ity and stockpile inventory at
Houndé and (iii) a receivables outflow of $10.2 million related to a build-up
of VAT receivables in Burkina Faso, partially offset by, (iv) a prepaid
expenses and other inflow of $4.1 million related to the timing of deposits
and supplier prepayments.
Working capital was an outflow of $98.0 million in Q1-2025, an increase of
$15.7 million over the Q1-2024 outflow of $82.3 million, largely driven by an
increase in outflows in trade and other payables and an increase in outflows
related to inventories, partially offset by a decrease in the outflow of trade
and other receivables and an increase in the inflow of prepaid expenses.
* Gold sales from continuing operations decreased slightly from 356koz in
Q4-2024 to 353koz in Q1-2025 due to lower production at Houndé following a
strong Q4-2024. Group gold sales exceeded production by 12koz during the
quarter largely due to the timing of shipments of gold produced from Ity and
Lafigué in the prior quarter. The realised gold price from continuing
operations for Q1-2025 increased by $319/oz to $2,939/oz from $2,620/oz in
Q4-2024. Inclusive of the Group’s Revenue Protection Programme (-$93/oz
Q1-2025 impact) and London Bullion Market Association (“LBMA”) gold price
averaging strategy (-$62/oz Q1-2025 impact), the realised gold price for
Q1-2025 increased by $193/oz to $2,783/oz from $2,590/oz in Q4-2024.
Gold sales from continuing operations increased from 225koz in Q1-2024 to
353koz in Q1-2025, following higher production in Q1-2025 with the addition of
production from the Lafigué mine and BIOX expansion at Sabodala-Massawa. The
realised gold price from continuing operations for Q1-2025 increased by
$848/oz to $2,939/oz from $2,091/oz in Q1-2024. Inclusive of the Group’s
Revenue Protection Programme (-$93/oz Q1-2025 impact against a realised gold
price of $2,939/oz in Q1-2025) and LBMA gold price averaging strategy (-$62/oz
Q1-2025 impact against a realised gold price of $2,939/oz in Q1-2025), the
realised gold price for Q1-2025 increased by $743/oz to $2,783/oz from
$2,041/oz in Q1-2024.
* Total cash cost per ounce decreased from $979/oz in Q4-2024 to $929/oz in
Q1-2025 due to lower mining unit costs at Houndé and Sabodala-Massawa, lower
processing unit costs at Ity, and 12koz higher gold sales than gold produced
in Q1-2025. This was partially offset by higher royalty costs and higher
processing unit costs at Mana and Lafigué.
Total cash cost per ounce decreased from $1,007/oz in Q1-2024 to $929/oz in
Q1-2025 due to higher volumes of gold sold, partially offset by higher gross
operating costs and royalties related to a higher realised gold price.
* Income taxes paid increased by $22.1 million from $16.9 million in Q4-2024
to $39.0 million in Q1-2025 due largely to the timing of corporate income tax
payments in Senegal.
Income taxes paid decreased by $12.3 million from $51.3 million in Q1-2024 to
$39.0 million in Q1-2025 due to a decrease in taxes paid at the corporate
level during Q1-2025 due to the timing of withholding tax payments and a
reduction in provisional tax payments at Mana related to a lower FY-2024 tax
base when compared to FY-2023.
Table 7: Tax Payments
THREE MONTHS ENDED
All amounts in US$ million 31 March 2025 31 December 2024 31 March 2024
Houndé 11 11 11
Ity — 2 —
Mana 2 2 4
Sabodala-Massawa 24 — 31
Lafigué 2 — 1
Other (1) — 1 5
Taxes paid 39 17 51
(1)Included in the “Other” category is income and withholding taxes paid
by Corporate and Exploration entities.
2) Cash flows used in investing activities decreased by $28.4 million from
$113.2 million in Q4-2024 to $84.8 million in Q1-2025 due to a decrease in
non-sustaining capital spend during the quarter of $25.3 million and lower
growth capital expenditure following the commissioning of the Lafigué and
Sabodala-Massawa projects during Q3-2024. In addition an inflow of $17.0
million related to the release of restricted cash at Ity decreased cash flows
used in investing activities further. This decrease was partially offset by an
increase in sustaining capital of $12.3 million.
Cash flows used in investing activities decreased by $102.7 million from
$187.5 million in Q1-2024 to $84.8 million in Q1-2025 largely due to lower
growth capital following completion of growth projects in FY-2024, lower
non-sustaining capital and an inflow of $17.0 million related to the release
of restricted cash at Ity, partially offset by an increase in sustaining
capital.
* Sustaining capital increased from $43.4 million in Q4-2024 to $55.7 million
in Q1-2025, largely due to higher sustaining underground development at
Mana’s Wona underground deposit and higher waste stripping at
Sabodala-Massawa, partially offset by a decrease in waste stripping at
Houndé.
Sustaining capital increased from $29.7 million in Q1-2024 to $55.7 million in
Q1-2025 due to the addition of the Lafigué and Sabodala-Massawa BIOX
expansion projects, higher underground development at Mana’s Siou and Wona
underground deposits, higher waste stripping and Heavy Mining Equipment
(“HME”) additions at Sabodala-Massawa, partially offset by a decrease in
waste stripping at Houndé.
* Non-sustaining capital decreased from $62.9 million in Q4-2024 to $37.6
million in Q1-2025 largely due to a decrease in waste stripping and capital
associated with the solar plant construction at Sabodala-Massawa, a decrease
in waste stripping at Ity due to mine sequencing and reclassification of
underground development at Mana following the achievement of commercial
stoping production across all of the portals, partially offset by an increase
in waste stripping at Lafigué.
Non-sustaining capital decreased from $41.3 million in Q1-2024 to $37.6
million in Q1-2025 largely due to lower underground development at Mana and
lower waste stripping at Ity and Sabodala-Massawa, partially offset by the
addition of the Lafigué and Sabodala-Massawa BIOX expansion projects.
* Growth capital decreased from $24.1 million in Q4-2024 to $5.7 million in
Q1-2025 following the completion of spending associated with the
Sabodala-Massawa BIOX Expansion and Lafigué growth projects which were both
completed during FY-2024. Growth capital expenditure in Q1-2025 is related to
definitive feasibility study and drilling expenditure at Assafou.
Growth capital decreased from $98.7 million in Q1-2024 to $5.7 million in
Q1-2025 following the completion of spending associated with the
Sabodala-Massawa BIOX Expansion and Lafigué growth projects which were both
completed during FY-2024.
3) Cash flows used in financing activities decreased by $69.2 million from
an outflow of $136.0 million in Q4-2024 to an outflow of $66.8 million in
Q1-2025 largely due to the timing of shareholder dividend payments in the
prior period and higher financing fees, partially offset by increased activity
on the Group’s share buybacks during Q1-2025. Financing cash flows during
the quarter included $91.6 million in repayment of debt, $40.0 million in
purchases of shares through the Group’s share buyback programme, $11.8
million in payment of financing fees, $6.7 million in repayment of leases and
$1.7 million for payment of the settlement of tracker shares, partially offset
by $85.0 million of drawing on Company’s debt facilities.
Cash flows used in financing activities decreased by $154.5 million from an
inflow of $87.7 million in Q1-2024 to an outflow of $66.8 million in Q1-2025
largely due a net inflow of $219.3 million in proceeds from debt in Q1-2024,
partially offset by shareholder dividend payments of $100.0 million during the
same period.
4) Endeavour’s net debt position improved by $353.9 million, from $731.6
million at the end of Q4-2024 to $377.7 million at the end of Q1-2025 and the
net debt / Adjusted EBITDA (LTM) leverage ratio improved from 0.55x at the end
of Q4-2024 to 0.22x at the end of Q1-2025. The rapid de-levering following the
Group’s growth phase, reflects the strong cash flow generation capability of
the business.
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for
the three-month periods ended 31 March 2025, 31 December 2024, and 31 March
2024, with accompanying explanations below.
Table 8: Earnings from operations
THREE MONTHS ENDED
All amounts in US$ million unless otherwise specified Notes 31 March 2025 31 December 2024 31 March 2024
Revenue 5 1,042 941 473
Operating expenses 6 (259) (294) (200)
Depreciation and depletion 6 (175) (226) (109)
Royalties 7 (76) (64) (34)
Earnings from mine operations 533 357 130
Corporate costs 8 (15) (14) (11)
Impairment of mining interests and goodwill — (200) —
Share-based compensation (18) (9) (4)
Other expense 9 (19) (9) (17)
Credit loss and impairment of financial assets 10 (7) (22) 1
Exploration and evaluation costs 11 (9) (5) (5)
Earnings from operations 466 98 94
(Loss)/gain on financial instruments 12 (100) 34 (46)
Finance costs (20) (33) (23)
Earnings before taxes 345 99 24
Current income tax expense 13 (121) (109) (41)
Deferred income tax recovery/(expense) (2) (93) 7
Net comprehensive earnings/(loss) from operations 14 222 (103) (9)
Add-back adjustments 15 44 235 66
Adjusted net earnings from operations 266 132 57
Portion attributable to non-controlling interests 47 22 16
Adjusted net earnings from operations attributable to shareholders of the Company 16 219 110 41
Adjusted net earnings per share from operations 0.90 0.45 0.17
NOTES:
5) Revenue increased by $101.3 million from $940.5 million in Q4-2024 to
$1,041.8 million in Q1-2025 due to an increase in the realised gold price from
$2,620/oz in Q4-2024 to $2,939/oz in Q1-2025, exclusive of the Company’s
Revenue Protection Programme (gold collars and London Bullion Market
Association (“LBMA”) gold price averaging strategy), partially offset by
slightly lower volumes of gold sold.
Revenue increased by $569.1 million from $472.7 million in Q1-2024 to $1,041.8
million in Q1-2025 due to an increase in the realised gold price from
$2,091/oz in Q1-2024 to $2,939/oz in Q1-2025, exclusive of the Company’s
Revenue Protection Programme (gold collars and LBMA gold price averaging
strategy) and higher volumes of gold sold.
6) Operating expenses decreased by $34.9 million from $293.9 million in
Q4-2024 to $259.0 million in Q1-2025, largely due to lower mining and
processing costs at Houndé and Ity, respectively. Depreciation and depletion
decreased by $51.0 million from $225.6 million in Q4-2024 to $174.6 million
in Q1-2025 due to lower quarterly production.
Operating expenses increased by $59.1 million from $199.9 million in Q1-2024
to $259.0 million in Q1-2025 due to the introduction of Lafigué and the
Sabodala-Massawa BIOX expansion following commissioning during Q3-2024,
increased underground mining costs at Mana driven by higher volumes and
increased mining costs at Ity and Houndé driven by higher volumes.
Depreciation and depletion increased by $65.9 million from $108.7 million in
Q1-2024 to $174.6 million in Q1-2025 due to higher levels of production at
Houndé and Sabodala-Massawa, and higher depreciation and depletion charges
driven by the commencement of operations at Lafigué and the Sabodala-Massawa
BIOX expansion following commissioning during Q3-2024.
7) Royalties increased by $11.4 million from $64.3 million in Q4-2024 to
$75.7 million in Q1-2025 due to a higher realised gold price, partially
offset by slightly lower sales volumes.
Royalties increased by $41.8 million from $33.9 million in Q1-2024 to
$75.7 million in Q1-2025 due to a higher realised gold price and higher gold
sales volumes.
8) Corporate costs of $14.5 million in Q1-2025 were largely consistent with
the prior quarter.
Corporate costs increased from $10.5 million in Q1-2024 to $14.5 million in
Q1-2025 due to increased employee compensation costs and higher professional
services costs.
9) Other expenses increased by $9.9 million from $9.1 million in Q4-2024
to $19.0 million in Q1-2025. For Q1-2025, other expenses included
$9.3 million in acquisition and restructuring costs primarily related to
payments in Côte d’Ivoire, $7.9 million in legal and other costs related
to ongoing local level arbitrations, $1.2 million in tax claims and
$0.6 million in community contributions.
10) Credit loss and impairment of financial assets decreased by
$15.7 million from $22.3 million in Q4-2024 to $6.6 million in Q1-2025. For
Q1-2025, the charge primarily related to a credit loss adjustment against the
outstanding VAT receivables in Burkina Faso.
11) Exploration costs increased by $3.4 million from $5.2 million in
Q1-2024 to $8.6 million in Q1-2025 due to the commencement of the FY-2025
drill programmes across the Group’s portfolio of assets.
Exploration costs increased by $3.2 million from $5.4 million in Q1-2024 to
$8.6 million in Q1-2025 due to an increased proportion of quarterly spend
allocated to greenfield properties within the Group’s exploration portfolio.
12) The loss on financial instruments increased by $133.9 million from a
gain of $33.6 million in Q4-2024 to a loss of $100.3 million in Q1-2025,
largely due to an increase in net losses on gold collars and London Bullion
Market Association (“LBMA”) gold pricing averaging. The loss on financial
instruments during the quarter included an unrealised loss on gold collars and
LBMA gold price averaging of $55.0 million, a realised loss on the Group’s
revenue protection programme of $54.8 million (including a $32.8 million
realised loss on gold collars and a $22.0 million realised loss related to
LBMA gold price averaging), partially offset by an unrealised foreign exchange
gain of $2.8 million, a $0.9 million unrealised gain on other financial
instruments, a gain on marketable securities (Turaco Gold Limited) of $4.0
million, an unrealised fair value gain on NSRs and deferred considerations of
$1.5 million and an unrealised gain on the early redemption feature of senior
notes of $0.3 million.
The loss on financial instruments increased by $54.1 million from a loss of
$46.2 million in Q1-2024 to a loss of $100.3 million in Q1-2025, due largely
to realised and unrealised losses in relation to the gold collars and LBMA
Averaging Programme, partially offset by a gain on exchange rate movements
between the Euro and the US dollar.
As previously disclosed, in order to increase cash flow visibility during its
construction and de-leveraging phases, Endeavour entered into a Revenue
Protection Programme, using a combination of zero premium gold collars and
forward sales contracts, to cover a portion of its 2025 production.
* In Q1-2025, approximately 50koz were delivered into a collar with an average
call price of $2,400/oz and an average put price of $1,992/oz.
* For the remainder of FY-2025, approximately 150koz (50koz per quarter) are
expected to be delivered into a collar with an average call price of $2,400/oz
and an average put price of $1,992/oz.
13) Current income tax expense increased by $11.7 million from $109.2
million in Q4-2024 to $120.9 million in Q1-2025, largely due to an increase in
current corporate income taxes driven by higher taxable profits, partially
offset by a decrease in recognised withholding tax expenses in Q1-2025 due to
the timing of local board approvals for cash upstreaming.
Current income tax expense increased by $80.4 million from $40.5 million in
Q1-2024 to $120.9 million in Q1-2025 due to an increase in withholding taxes
accrued by operating subsidiaries, an increase in current income taxes driven
by higher taxable profits and the commencement of operations at Lafigué,
effective Q3-2024.
14) Net comprehensive earnings from continuing operations improved by
$325.6 million from a net comprehensive loss of $103.3 million in Q4-2024 to
net comprehensive earnings of $222.3 million in Q1-2025. The increase in
earnings is largely driven by an increase in revenue due to a higher realised
gold price, lower depletion and depreciation and the impairment charge on
Kalana and exploration assets in the prior quarter, partially offset by an
increase in operating expenses, higher royalty costs, and a loss on financial
instruments related to the Revenue Protection Programme.
Net comprehensive earnings from continuing operations improved by $231.6
million from net comprehensive loss of $9.3 million in Q1-2024 to net
comprehensive earnings of $222.3 million in Q1-2025. The increase in earnings
was largely driven by an increase in gold sold volumes at a higher realised
gold price, partially offset by higher operating expenses, higher depletion
and depreciation and higher losses on financial instruments related to the
Revenue Protection Programme.
15) For Q1-2025, adjustments included an unrealised loss on financial
instruments of $45.5 million largely related to the unrealised loss on forward
sales and collars, other expenses of $19.0 million largely related to
acquisition and restructuring costs in Côte d’Ivoire and legal costs
related to ongoing local level arbitrations, and an impairment of $6.6 million
related to the write-down of VAT receivables in Burkina Faso, partially offset
by a gain on non-cash, tax and other adjustments of $27.4 million that mainly
relate to the impact of foreign exchange remeasurements of deferred tax
balances.
16) Adjusted net earnings attributable to shareholders increased by $108.9
million from earnings of $110.1 million (or $0.45 per share) in Q4-2024 to
adjusted net earnings of $219.0 million (or $0.90 per share) in Q1-2025, due
to higher operating margins, aided by a higher realised gold price.
Adjusted net earnings attributable to shareholders for continuing operations
increased by $178.2 million from earnings of $40.7 million (or $0.17 per
share) in Q1-2024 to adjusted net earnings $219.0 million (or $0.90 per share)
in Q1-2025 due to higher production and higher operating margins.
OPERATING ACTIVITIES BY MINE
Houndé Gold Mine, Burkina Faso
Table 9: Houndé Performance Indicators
For The Period Ended Q1-2025 Q4-2024 Q1-2024
Tonnes ore mined, kt 1,652 1,526 724
Total tonnes mined, kt 11,334 10,833 11,097
Strip ratio (incl. waste cap) 5.86 6.10 14.33
Tonnes milled, kt 1,335 1,405 1,082
Grade, g/t 2.75 3.13 1.35
Recovery rate, % 86 79 89
Production, koz 92 109 42
Total cash cost/oz 751 922 1,120
AISC/oz 858 1,024 1,572
Q1-2025 vs Q4-2024 Insights
* Production decreased from 109koz in Q4-2024 to 92koz in Q1-2025 due to lower
average grades processed and lower tonnes milled, partially offset by an
increase in recovery rates. * Total tonnes mined increased due to an increase
in waste stripping at the Kari West pit, in line with mine plan. Tonnes of ore
mined increased due to increased ore mining in the Kari West pit, which
supplemented with ore sourced from the higher grade Kari Pump and Vindaloo
Main pits.
* Tonnes milled decreased slightly due to a decreased proportion of softer ore
from the Kari Pump pit in the mill feed, which was displaced by higher
proportions of harder ore from the Vindaloo Main and Kari West pits.
* Average processed grades decreased due to a lower proportion of high grade
ore from the Kari Pump pit in the mill feed.
* Recovery rates increased due to the decreased proportion of Kari Pump ore in
the mill feed, which has slightly lower associated recoveries.
* AISC improved significantly from $1,024/oz in Q4-2024 to $858/oz in Q1-2025
due to lower mining unit costs following drill and blast optimisation, higher
excavator productivities, lower sustaining capital from lower waste
capitalisation at the Kari West pit, lower grade control drilling and a
build-up of gold-in-circuit and stockpile inventory, partially offset by
higher royalty costs due to a higher realised gold price.
* Sustaining capital expenditure decreased from $11.0 million in Q4-2024 to
$10.1 million in Q1-2025 and primarily related to waste stripping at the Kari
West pit, heavy mining equipment additions and rebuilds.
* Non-sustaining capital expenditure decreased from $4.7 million in Q4-2024 to
$0.6 million in Q1-2025 and primarily related to the ongoing TSF Stage 10
embankment raise.
Q1-2025 vs Q1-2024 Insights
* Production increased significantly from 42koz in Q1-2024 to 92koz in Q1-2025
due to higher tonnes and average grades milled as a result of processing a
higher proportion of high-grade ore from the Kari Pump pit and the impact of
the 11-day strike in Q1-2024, partially offset by lower recovery rates due to
an increased proportion of ore from the Kari Pump pit with lower associated
recoveries in the mill feed.
* AISC decreased significantly from $1,572/oz in Q1-2024 to $858/oz in Q1-2025
due to higher volumes of gold sold and a build-up of gold-in-circuit and
stockpile inventory, partially offset by higher processing unit costs
associated with a higher proportion of harder fresh ore within the mill feed.
FY-2025 Outlook
* Following a strong Q1-2025 performance, as high grades were prioritised
ahead of the wet season, Houndé production was better than expected and
remains on track to achieve its FY-2025 production guidance of 230koz -
260koz, at an AISC within the guided $1,225/oz - $1,375/oz range.
* In Q2-2025, average grades processed are expected to decrease, while
recoveries are expected to improve, due to a lower proportion of high grade
ore sourced from the Kari Pump pit. In H2-2025, ore is expected to be sourced
primarily from the Kari West pit with supplemental ore sourced from the
Vindaloo Main and Vindaloo North pits, resulting in lower expected production
compared to H1-2025 due to lower average grades processed, but partially
offset by the expected improvement in recovery rates.
* Sustaining capital expenditure outlook for FY-2025 remains unchanged at
$40.0 million, of which $10.1 million has been incurred in Q1-2025. During
FY-2025, sustaining capital expenditure is expected to primarily relate to
mining fleet component rebuilds and upgrades, processing plant equipment
upgrades and waste stripping activities in the Kari West area.
* Non-sustaining capital expenditure outlook for FY-2025 remains unchanged at
$90.0 million, of which $0.6 million has been incurred in Q1-2025. During
FY-2025, non-sustaining capital expenditure is expected to relate primarily to
the Phase 3 pushback at the Vindaloo Main pit commencing in H2-2025, the TSF 1
and TSF 2 stage-10 embankment raise, and land compensation for the third TSF
cell.
Ity Gold Mine, Côte d’Ivoire
Table 10: Ity Performance Indicators
For The Period Ended Q1-2025 Q4-2024 Q1-2024
Tonnes ore mined, kt 2,120 2,262 1,825
Total tonnes mined, kt 8,373 8,120 7,406
Strip ratio (incl. waste cap) 2.95 2.59 3.06
Tonnes milled, kt 1,898 1,955 1,775
Grade, g/t 1.60 1.45 1.68
Recovery rate, % 90 90 90
Production, koz 84 84 86
Total cash cost/oz 875 943 858
AISC/oz 930 987 884
Q1-2025 vs Q4-2024 Insights
* Production remained stable at 84koz in Q1-2025 as lower tonnes of ore milled
was offset by higher average grades processed, while recoveries remained
largely consistent. * Total tonnes mined increased due to improved fleet
productivity while total ore tonnes mined decreased as lower volumes were
sourced from the Ity and Le Plaque pits. Mining activities during the quarter
sourced ore from the Ity, Walter, Bakatouo, Verse Ouest and Le Plaque pits
with supplemental contributions from stockpiles.
* Tonnes milled decreased slightly due to lower mill availability following
scheduled plant maintenance during the quarter and a higher proportion of
harder fresh ore in the mill feed.
* Average processed grades increased due to an increased proportion of higher
grade ore from the Bakatouo pit in the mill feed and higher grade ore sourced
from the Ity and Le Plaque pits, in line with the mine sequence.
* Recovery rates remained in line with the previous quarter.
* AISC decreased from $987/oz in Q4-2024 to $930/oz in Q1-2025 due to the
higher volumes of gold sold as gold shipments were delayed from the prior
quarter, lower processing unit costs due to improved reagent consumption
efficiencies and higher availability of lower-cost grid power, partially
offset by an increase in sustaining capital and higher royalty costs related
to the higher realised gold price.
* Sustaining capital expenditure increased from $3.5 million in Q4-2024 to
$4.8 million in Q1-2025 and was primarily related to site infrastructure
upgrades, processing plant upgrades and dewatering borehole drilling.
* Non-sustaining capital expenditure decreased from $12.6 million in Q4-2024
to $3.0 million in Q1-2025 and was primarily related to the TSF 2, stage 2
raise.
Q1-2025 vs Q1-2024 Insights
* Production decreased slightly from 86koz in Q1-2024 to 84koz in Q1-2025 due
to a lower proportion of high grade ore sourced from the Ity and Le Plaque
pits, partially offset by higher throughput following the commissioning of the
Mineral Sizer optimisation initiative in Q4-2024.
* AISC increased from $884/oz in Q1-2024 to $930/oz in Q1-2025 due to higher
royalty costs related to the higher gold price, an increase in sustaining
capital and slightly higher mining and processing unit costs.
FY-2025 Outlook
* Ity is on track to achieve its FY-2025 production guidance of 290koz -
330koz, at an AISC within the guided $975/oz - $1,100/oz range.
* In Q2-2025, ore is expected to be sourced from the Le Plaque, Walter,
Bakatouo and Ity pits with supplemental feed sourced from the Verse Ouest pit
and stockpiles. Average grades processed are expected to decrease due to a
lower proportion of high grade ore from the Ity and Le Plaque pits in the mill
feed, while recoveries and throughput are expected to remain largely
consistent. In H2-2025, production is expected to decrease as reduced mining
of high grade ore across the Ity and Le Plaque pits is expected to be only
partially offset by increased ore mining at the Walter and Flotouo pits.
Milling rates and recovery rates are expected to remain broadly consistent.
* Sustaining capital expenditure outlook for FY-2025 remains unchanged at
$20.0 million, of which $4.8 million has been incurred in Q1-2025. During
FY-2025 sustaining capital expenditure is expected to primarily relate to
dewatering borehole drilling, processing plant and laboratory upgrades and
haul road construction.
* Non-sustaining capital expenditure outlook for FY-2025 remains unchanged at
$35.0 million, of which $3.0 million has been incurred in Q1-2025. During
FY-2025 non-sustaining capital expenditure is expected to primarily relate to
waste stripping activity at the Le Plaque pit, as well as the construction of
the TSF2, stage 2 raise.
Mana Gold Mine, Burkina Faso
Table 11: Mana Performance Indicators
For The Period Ended Q1-2025 Q4-2024 Q1-2024
OP tonnes ore mined, kt — — 119
OP total tonnes mined, kt — — 711
OP strip ratio (incl. waste cap) — — 4.96
UG tonnes ore mined, kt 544 616 446
Tonnes milled, kt 552 603 621
Grade, g/t 3.07 2.49 2.31
Recovery rate, % 86 86 88
Production, koz 46 41 42
Total cash cost/oz 1,360 1,320 1,345
AISC/oz 1,887 1,698 1,453
Q1-2025 vs Q4-2024 Insights
* Production increased from 41koz in Q4-2024 to 46koz in Q1-2025 due to higher
grades processed, partially offset by lower tonnes milled, while recoveries
remained consistent. * Total underground tonnes of ore mined decreased due to
lower stoping tonnes at Siou and Wona underground deposits. Development rates
across the Wona and Siou underground deposits amounted to 4,223 metres,
slightly lower than the 4,254 meters completed in the prior quarter.
* Tonnes milled decreased reflecting the availability of ore sourced from the
Siou and Wona underground deposits
* Average grades processed increased due to higher grade ore sourced from
stopes in the Siou underground deposit.
* Recovery rates remained consistent with the prior quarter.
* AISC increased from $1,698/oz in Q4-2024 to $1,887/oz in Q1-2025 due to an
increase in sustaining capital development, higher royalties following higher
realised gold prices, higher mining and processing unit costs driven by
elected reliance on self-generated power in the underground mines and higher
reagent and consumable costs, partially offset by the higher volume of gold
sold.
* Sustaining capital expenditure increased from $15.4 million in Q4-2024 to
$24.5 million in Q1-2025 and primarily related to capitalised underground
development at the Siou and Wona underground deposits, as well as leasing
payments for contractor mining equipment.
* Non-sustaining capital expenditure decreased from $14.4 million in Q4-2024
to $0.9 million in Q1-2025, reflecting the classification of development in
the Wona underground to sustaining capital expenditure upon achieving
commercial stoping rates.
Q1-2025 vs Q1-2024 Insights
* Production increased from 42koz in Q1-2024 to 46koz in Q1-2025 due to the
higher average grades processed, reflecting a higher proportion of high grade
underground ore sourced from the Siou and Wona underground deposits, which was
partially offset by lower tonnes milled reflecting the absence of the lower
grade open pit ore sourced from the Maoula open pit.
* AISC increased from $1,453/oz in Q1-2024 to $1,887/oz in Q1-2025 due to
increased expensed and capitalised underground development activity, higher
royalties due to the higher gold price and increased processing costs due to
the elected reliance on increased self-generated power in the Siou and Wona
underground mines, partially offset by higher volumes of gold sold.
FY-2025 Outlook
* Mana is on track to achieve its FY-2025 production guidance of 160koz -
180koz at an AISC within the guided $1,550/oz - $1,750/oz range.
* In Q2-2025, average processed grades are expected to decrease slightly
across the Wona and Siou undergrounds, in-line with the mine sequence as stope
production will decrease at the Siou underground deposit to prioritise
development activities, while volumes of ore and recovery rates are expected
to remain broadly consistent. In H2-2025, tonnage, average grades and
recoveries are all expected to remain broadly consistent with a higher
proportion of mill feed expected to be sourced from the Wona underground,
offsetting ore sourced from the Siou underground.
* Sustaining capital expenditure outlook for FY-2025 remains unchanged at
$60.0 million, of which $24.5 million has been incurred in Q1-2025. During
FY-2025, sustaining capital expenditure is expected to primarily relate to
waste development in the Wona underground deposit in addition to processing
plant and infrastructure upgrades.
* Non-sustaining capital expenditure outlook for FY-2025 remains unchanged at
$10.0 million, of which $0.9 million has been incurred in Q1-2025. During
FY-2025, non-sustaining capital expenditure is expected to primarily relate to
the stage 6 TSF lift and infrastructure upgrades.
Sabodala-Massawa Gold Mine, Senegal
Table 12: Sabodala-Massawa Performance Indicators
For The Period Ended Q1-2025 Q4-2024 Q1-2024
Tonnes ore mined, kt 1,121 1,573 1,346
Total tonnes mined, kt 10,025 12,463 10,447
Strip ratio (incl. waste cap) 7.94 6.92 6.76
Tonnes milled - Total, kt 1,482 1,377 1,180
Tonnes milled - CIL, kt 1,193 1,095 1,180
Tonnes milled - BIOX, kt 288 282 —
Grade - Total, g/t 1.87 2.29 1.63
Grade - CIL, g/t 1.52 1.86 1.63
Grade - BIOX, g/t 3.32 3.99 —
Recovery rate - Total, % 79 70 83
Recovery rate - CIL, % 82 73 83
Recovery rate - BIOX, % 72 65 —
Production, koz 72 70 49
Production - CIL, koz 48 47 49
Production - BIOX, koz 23 23 —
Total cash cost/oz 959 1,107 890
AISC/oz 1,173 1,261 947
Q1-2025 vs Q4-2024 Insights
* Production increased from 70koz in Q4-2024 to 72koz in Q1-2025 due to higher
tonnes milled and recovery rates through both the CIL and the BIOX processing
plants, partially offset by lower average grades across both plants. * Total
tonnes and tonnes of ore mined decreased due to increased dewatering
activities at the Kiesta, Niakafiri East and Sabodala pits impacting mining
activities. Ore was primarily sourced from the Kiesta, Massawa Central Zone,
Sabodala, Niakafiri East and Maki Medina pits.
* Total tonnes milled increased across both the CIL and BIOX processing
plants. Tonnes milled through the CIL plant increased due to a higher
proportion of softer oxide ore in the mill feed. Tonnes milled through the
BIOX plant increased as a result of higher mill utilisation due to the timing
of planned maintenance in Q1-2025.
* Average processed grades decreased across both the CIL and BIOX processing
plants. Average processed grades in the CIL plant decreased due to a lower
proportion of ore sourced from the Sabodala and Massawa North Zone pits, which
was replaced by lower grade stockpiles. Average processed grades at the BIOX
plant decreased due to lower average grades sourced from the Massawa Central
Zone pit.
* Recovery rates increased across both the CIL and BIOX processing plants. The
increase in recoveries at the CIL plant is due to the reduced proportion of
transitional ore from the Massawa Central Zone pit in the mill feed, with over
80% fresh ore fed through the circuit, which was displaced by lower grade
stockpiles and the optimisation of reagents through the flotation circuit. The
increase in recoveries at the BIOX plant was due to higher proportion of fresh
ore feed and gravity gold recoveries in the flotation circuit, which is
expected to be a sustained increase in the overall recoveries of the plant.
* AISC decreased from $1,261/oz in Q4-2024 to $1,173/oz in Q1-2025 due to
lower haulage costs driven by pit sequencing resulting in shorter haulage
distances and higher gold sales, partially offset by higher sustaining
capital.
* Sustaining capital expenditure increased from $10.6 million in Q4-2024 to
$15.3 million in Q1-2025 and was primarily related to waste development at
the Massawa North and Central Zone pits, the delivery of a new drill rig for
owner-operated grade control drilling and major component rebuilds.
* Non-sustaining capital expenditure, excluding expenditure on the solar power
plant, decreased from $12.1 million in Q4-2024 to $2.6 million in Q1-2025
and was primarily related to grade control activities at Niakafiri West.
* Non-sustaining capital expenditure for the solar power plant decreased from
$8.5 million in Q4-2024 to $1.6 million in Q1-2025 and was related to final
payments for the construction as the plant was successfully commissioned
during the quarter.
Q1-2025 vs Q1-2024 Insights
* Production increased from 49koz in Q1-2024 to 72koz in Q1-2025 primarily due
to the successful commissioning of the BIOX plant during Q3-2024, while
production from the CIL plant was broadly consistent.
* AISC increased from $947/oz in Q1-2024 to $1,173/oz in Q1-2025 due to higher
processing costs and higher royalty costs due to a higher realised gold price
and higher sustaining capital, partially offset by higher gold sales.
FY-2025 Outlook
* Sabodala-Massawa is on track to achieve its FY-2025 production guidance of
250koz - 280koz at an AISC within the guided $1,100/oz - $1,250/oz range.
* In Q2-2025, production from the CIL plant is expected to be largely
consistent with Q1-2025 with slightly lower grades expected to be offset by
slightly higher recoveries, while throughputs are expected to remain largely
consistent. Ore will continue to be sourced from the Sabodala, Kiesta C,
Niakafiri East and Massawa Central Zone pits with supplemental feed from
stockpiles. In H2-2025, mined tonnes are expected to remain in-line with
Q1-2025, while ore will be sourced from the Delya, Niakafiri East and West
pits while the Sabodala pit is decommissioned and prepared for in-pit
tailings. The ore blend is expected to produce slightly higher recovery rates.
* In Q2-2025, production from the BIOX plant is expected to be largely
consistent with Q1-2025 as recoveries and throughput are expected to continue
to improve, partially offset by lower grades due to the pit sequencing of the
Massawa Central Zone. In H2-2025, refractory ore for the BIOX plant is
expected to be primarily sourced from the Massawa Central Zone as greater
access is opened up to high grade fresh ores. Grades and recoveries are
expected to improve as the blend of fresh ore in the mill feed is expected to
increase, while throughputs are expected to remain at or around nameplate
capacity.
* Sustaining capital expenditure outlook for FY-2025 remains unchanged at
$60.0 million of which $15.3 million has been incurred in Q1-2025. During
FY-2025 sustaining capital expenditure is expected to primarily relate to
capitalised waste stripping, mining fleet upgrades and re-builds and process
plant maintenance.
* Non-sustaining capital expenditure for FY-2025 remains unchanged at
$25.0 million, of which $1.8 million has been incurred in Q1-2025. During
FY-2025 non-sustaining capital expenditure is expected to primarily relate to
capitalised waste stripping, Sabodala in-pit tailings infrastructure, haul
road construction and advanced grade control activities.
Solar Power Plant
* During Q3-2023, Endeavour launched the construction of a 37MWp photovoltaic
(“PV”) solar facility and a 16MW battery system at the Sabodala-Massawa
mine, in order to significantly reduce fuel consumption and greenhouse gas
emissions, and lower power costs.
* Commissioning and ramp-up of photovoltaic power generation was completed on
1 March 2025, with full nameplate capacity achieved.
Lafigué Mine, Côte d’Ivoire
Table 13: Lafigué Performance Indicators
For The Period Ended Q1-2025 Q4-2024 Q1-2024
Tonnes ore mined, kt 1,230 1,711 816
Total tonnes mined, kt 12,829 10,150 8,832
Strip ratio (incl. waste cap) 9.43 4.93 9.82
Tonnes milled, kt 1,018 936 —
Grade, g/t 1.67 2.11 —
Recovery rate, % 93 94 —
Production, koz 48 60 —
Total cash cost/oz 918 748 —
AISC/oz 926 801 —
Q1-2025 vs Q4-2024 Insights
* Production decreased from 60koz in Q4-2024 to 48koz in Q1-2025 due to lower
average grades processed during the quarter, partially offset by an increase
in mill throughput. * Total tonnes mined increased due to the introduction of
a second mining contractor during the quarter. Total ore tonnes mined
decreased due to higher waste stripping at the Main pit, in line with the mine
sequence.
* Total tonnes milled increased due to a higher proportion of soft oxide ore
in the mill feed.
* Average processed grades decreased due to a higher proportion of fresh ore
in the mill feed.
* Recovery rates remained consistent with the prior quarter.
* AISC increased from $801/oz in Q4-2024 to $926/oz in Q1-2025 due to higher
processing costs associated with planned maintenance during the quarter and a
decrease in gold sales, partially offset by lower sustaining waste capital.
* Sustaining capital expenditure decreased from $3.1 million in Q4-2024 to
$0.4 million in Q1-2025 and was primarily related to advanced grade control
drilling activities across both the Main and West pit.
* Non-sustaining capital expenditure increased from $8.9 million in Q4-2024
to $27.4 million in Q1-2025 and was primarily related to waste stripping and
the ongoing TSF embankment raise.
FY-2025 Outlook
* Lafigué is on track to achieve its FY-2025 production guidance of 180koz -
210koz at a AISC within the guided $950/oz - $1,075/oz range.
* In Q2-2025, mining activities are expected to conclude in the Western flank
of the Main pit whilst activities ramp-up in the Eastern flank, which becomes
the main ore source in H2-2025. Total mined tonnes are expected to increase as
the additional mining contractor ramps up in the West pit. Throughput rates
are expected to remain consistent with slightly lower average processed grades
due to a lower proportion of higher grade ore within the feed.
* Sustaining capital expenditure outlook for FY-2025 is unchanged at $35.0
million, of which $0.4 million has been incurred in Q1-2025, primarily related
to advanced grade control drilling and spare parts purchases. During FY-2025
sustaining capital expenditure is expected to primarily relate to capitalised
waste stripping activities, advanced grade control drilling and strategic
spare purchases.
* Non-sustaining capital expenditure outlook for FY-2025 remains unchanged at
$50.0 million, of which $27.4 million has been incurred in Q1-2025, primarily
related to the stage 2 pushback in the Eastern flank of the Main pit and the
TSF embankment raise. During FY-2025 non-sustaining capital expenditure is
expected to primarily relate to capitalised waste stripping activities,
completion of the TSF stage 2 lift and the purchase of generators.
Assafou Project, Côte d’Ivoire
* On 11 December 2024, Endeavour announced the positive pre-feasibility
results ("PFS") for the Assafou project. The PFS highlights 329kozpa
production at AISC of $892/oz over the first 10 years. The PFS boasts robust
economics with an after-tax NPV(5%) of $1,526.0 million and IRR of 28%, at a
$2,000/oz gold price, increasing to $2,485.0 million and 40% respectively at a
$2,500/oz gold price.
* The Assafou PFS has initial capital of $734.0 million, which is based on a
similar flow sheet to the nearby Lafigué project, with design throughput
upscaled to 5.0Mtpa and the implementation of a gyratory crusher into the
crushing circuit, while Lafigué operates a single jaw crusher.
* The Assafou PFS was based on the 2023 Mineral Resource Estimate, with a 31
October 2023 drilling cut-off. A further 70,000 metres of drilling has been
completed at the Assafou deposit and nearby targets, including Pala Trend 3,
which are expected to be incorporated into future reserve and resource
updates.
* The progress regarding critical path items associated with the Definitive
Feasibility Study ("DFS") are detailed below: * Metallurgical, geotechnical
and hydrogeological drilling are all underway with initial samples currently
being analysed.
* Sterilisation drilling and geotechnical modelling are underway to optimise
the planned infrastructure layout.
* The Environmental and Social Impact Assessment ("ESIA") submission have both
launched in Q1-2025, with the expectation that the environmental permit will
be granted during H2-2025.
* The definitive feasibility study is expected to be completed between late
2025 and early 2026.
EXPLORATION ACTIVITIES
* Endeavour has achieved its five-year exploration target to discover 12 -
17Moz of Measured and Indicated resources over the 2021 to 2025 period for a
discovery cost of less than $25/oz, discovering 12.2Moz at less than $25/oz by
year-end 2024.
* Exploration continues to be a strong focus during FY-2025 with an extensive
program of $75.0 million planned, focused on increasing endowment at the
Group’s core assets, expanding resources at, and in close proximity to, the
recent Assafou discovery and delineating new early stage greenfield
opportunities to supplement the long-term organic growth pipeline through the
New Ventures programme.
* During Q1-2025, the Group exploration spend amounted to $24.3 million, of
which $14.4 million was spent at the core operations, $3.4 million was spent
on the Assafou deposit and the wider Tanda-Iguela property and $6.5 million
was spent on the evaluation of new greenfield opportunities. A total of
101,800 meters of drilling were completed during the quarter.
Table 14: Q1-2025 Exploration Expenditure and FY-2025 Guidance(1 )
Q1-2025 ACTUAL FY-2025 GUIDANCE
All amounts in US$ million
Houndé 0.6 7.0
Ity 5.3 10.0
Mana 1.0 3.0
Sabodala-Massawa 7.3 15.0
Lafigué 0.2 5.0
Assafou project 3.4 10.0
New Ventures and greenfield exploration 6.5 25.0
TOTAL EXPLORATION EXPENDITURE 24.3 75.0
(1)Exploration expenditures include expensed and capitalised exploration
expenditures.
Houndé mine
* An exploration programme of $7.0 million is planned for FY-2025, of which
$0.6 million was spent in Q1-2025 consisting of over 1,700 meters of drilling
across 8 holes. The FY-2025 programme remains focused on delineating near-mine
resources at the Vindaloo Deeps, Kari Deeps and Marzipan targets.
* During Q1-2025, successful infill drilling at the Vindaloo Deeps deposit
confirmed the potential for a large, high-grade underground resource. Further
drilling at Vindaloo Deeps will be designed to step out up to 800 metres down
dip to test the continuation of mineralisation towards the south.
* During the remainder of the year, the exploration programme will continue to
focus on delineating the Vindaloo Deeps deposit and the possible extension of
this deposit towards the south, with a target to define a large, high-grade
maiden underground resource in H1-2026. Scout drilling is expected to commence
at the Marzipan target, located 5 kilometres from the Houndé processing plant
on the Kari North permit, and scout drilling is expected to start at the Kari
Deeps target below the Kari Area, to delineate any potential extensions to
mineralisation below the Kari deposits.
Ity mine
* An exploration programme of $10.0 million is planned for FY-2025, of which
$5.3 million was spent in Q1-2025 consisting of over 38,800 metres of
drilling across 350 drill holes. The brownfield exploration programme is
focused on resource growth at the Ity and Floleu deposits, maiden resource
estimations in several targets around the Goleu prospect and underground
target delineation at the Ity deposit. In addition, several greenfield targets
that could unlock future standalone options have been progressed in the
Greater Ity area through auger drilling. Preliminary results have shown
positive evidence for mineralisation and extension of Ity-style deposits in
the region.
* During Q1-2025, drilling at the Floleu deposits confirmed the continuity of
mineralisation beneath the existing pit shell, while drilling at the Goleu
target, located approximately 15 kilometres south of the Ity processing plant,
successfully extended high-grade mineralisation along strike and at depth.
* During the remainder of the year, the programme will continue to focus on
resource growth, with an updated resource expected at the Floleu deposit in
H2-2025 and maiden resources expected at the Goleu and Delta Southeast
deposits, following the second phase of infill drilling in H2-2025.
Mana mine
* An exploration programme of $3.0 million is planned for FY-2025, of which
$1.0 million was spent in Q1-2025, consisting of 1,800 metres of drilling
across 2 deep drill holes. The exploration programme is focused on extending
underground mineralisation at the Wona Deep underground deposit.
* During Q1-2025, deep drilling, 200 metres below the current resource was
completed at the Wona underground deposit to test the potential for additional
resources beneath the known resources at Wona underground. Mineralisation has
been confirmed at depth, with follow up drilling planned to test the grade and
continuity of this mineralisation.
* During the remainder of the year, the exploration programme will continue to
focus on extending mineralisation at the Wona underground deposit.
Sabodala-Massawa mine
* An exploration programme of $15.0 million is planned for FY-2025, of which
$7.3 million was spent in Q1-2025 consisting of 39,100 meters of drilling
across 317 drill holes. The exploration programme is focused on near-term,
non-refractory oxide resources to support the mine plan and continued
definition of medium to longer-term targets.
* During Q1-2025, drilling activities focused on the Golouma West underground
deposit, confirming the extent and continuity of mineralisation at depth with
follow up drilling planned to identify any potential extensions of
mineralisation down dip. Drilling at the Kawasara, Sira and Tamo-Toya
deposits, southwest along the Massawa structure, around 35 kilometres
southeast of the Sabodala-Massawa processing plant, has extended
mineralisation and potential for standalone options toward the southwest where
the deposit remains open.
* During the remainder of the year, drilling will focus on the Golouma West
underground and infill targets between the Sabodala area and the Massawa area
to provide near-term resources to support the mine plan, with an update
expected in H2-2025. Concurrently mid-to-long-term exploration drilling is
planned at the Massawa North complex and at Kawasara, Sira and Tamo-Toya.
Lafigué mine
* An exploration programme of $5.0 million is planned for FY-2025, of which
$0.2 million was spent in Q1-2025 in preparation for the drilling programme
that will start in Q2-2025, designed to test high-priority near mine targets
less than 5 kilometres away from the Lafigué processing plant.
* During the remainder of the year, the exploration programme will focus on
drilling the near-mine Target 1 and advancing IP geophysics over Target 1,
Corridor T4-12 and Central Area target to delineate drilling targets within
close proximity to Lafigué.
Assafou Project
* An exploration programme of $10.0 million is planned for FY-2025, of which
$3.4 million was spent in Q1-2025 consisting of 20,300 meters of drilling
across 158 drill holes. The exploration programme is focussed on increasing
resource size and definition at the Assafou deposit and defining maiden
resources at satellite targets in close proximity to Assafou.
* During Q1-2025, infill drilling on the Assafou resource confirmed the
existing model and the continuity of high-grade mineralisation at depth.
Resource definition drilling also advanced at the Pala Trend 3 target, located
approximately 1 kilometre west of the Assafou deposit.
* During the remainder of the year, infill drilling will continue across the
Assafou deposit and resource delineation drilling will continue at the Pala
Trend 3 target with updated and maiden mineral resources estimates
respectively, expected to be defined in H2-2025.
New Ventures and greenfield Exploration
* The exploration programme is continuing to focus on building out a long-term
organic growth pipeline through its operated greenfield exploration
programmes, and by leveraging early stage exploration companies operating in
highly prospective greenstone belts.
* During Q2-2024 Endeavour completed a $2.7 million strategic investment into
Koulou Gold Corp. (“Koulou”), a private exploration company focused on
early stage exploration projects in Côte d’Ivoire. Subsequently, in Q1-2025
Endeavour exercised its warrants for $2.7 million and participated in
Koulou’s financing for a further $2.3 million, and now holds 19.1% ownership
of Koulou.
* Koulou’s projects include: * The Assuéfry project, which Koulou Gold
holds an option to earn up to 90% interest in, located on the east side of the
Tanda-Iguela property (Assafou project). Assuéfry is in a similar structural
setting to Assafou and underlain by the same Tarkwaian-like sediments and
Birimian volcanic rocks, as Assafou.
* The highly prospective Sakassou project in central Côte d’Ivoire on the
north east trending Bouaflé greenstone belt approximately 30 kilometres
northwest of Perseus Mining’s Yaouré mine.
* The Kouto project in northwestern Côte d’Ivoire on the north-north east
trending Syama greenstone belt along strike from Aurum Resources’ Boundiali
project.
CONFERENCE CALL AND LIVE WEBCAST
Management will host a conference call and webcast on Thursday 1 May, at 8:30
am EST / 1:30 pm BST to discuss the Company's financial results.
The conference call and webcast are scheduled at:
5:30am in Vancouver
8:30am in Toronto and New York
1:30pm in London
8:30pm in Hong Kong and Perth
The video webcast can be accessed through the following link:
https://edge.media-server.com/mmc/p/4pd5tg8b
To download a calendar reminder for the webcast, visit the events page of our
website here
(https://www.globenewswire.com/Tracker?data=6Gl5gUpC7yMV1edxj8bLKeWYqmcqEHm62u-HJyGctx-WUeqPm7VH3s0Uw1Ck6FHryCCaQS4mxYGlP9yyrezJ2laKX7GLzOAOzONd6for8wuY_bMaPAkjdoEZlgTBeZ1R).
Analysts and investors are also invited to participate and ask questions by
registering for the conference call dial-in via the following link:
https://register-conf.media-server.com/register/BI233e238ef3954ff09cec2d4cc78b1a6b
The conference call and webcast will be available for playback on Endeavour's
website
(https://www.globenewswire.com/Tracker?data=C6ZAgy2bK_lBrJVIpnuG9FL2ZuMS0mU80wdbUbNO0IUNKaGRjpmu2D7OojgKJ-X6xZdc8pKdoobHAXOQS_QzKWn1CylYbZbVO-JjSUb0J8DTzXa4Yn92bQHU0cz-uJel).
QUALIFIED PERSONS
Brad Rathman, Vice President - Operations of Endeavour Mining plc., a Fellow
of the Australasian Institute of Mining and Metallurgy (AusIMM), is a
"Qualified Person" as defined by National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") and has reviewed and approved
the technical information in this news release.
CONTACT INFORMATION
For Investor Relations enquiries: For Media enquiries:
Jack Garman Brunswick Group LLP in London
Vice President of Investor Relations Carole Cable, Partner
442030112723 442074045959
investor@endeavourmining.com ccable@brunswickgroup.com
ABOUT ENDEAVOUR MINING PLC
Endeavour Mining is one of the world’s senior gold producers and the largest
in West Africa, with operating assets across Senegal, Côte d’Ivoire and
Burkina Faso and a strong portfolio of advanced development projects and
exploration assets in the highly prospective Birimian Greenstone Belt across
West Africa.
A member of the World Gold Council, Endeavour is committed to the principles
of responsible mining and delivering meaningful value to people and society.
Endeavour is admitted to listing and to trading on the London Stock Exchange
and the Toronto Stock Exchange, under the symbol EDV.
For more information, please visit www.endeavourmining.com.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" within the meaning of
applicable securities laws. All statements, other than statements of
historical fact, are "forward-looking statements", including but not limited
to, statements with respect to Endeavour's plans and operating performance,
the estimation of mineral reserves and resources, the timing and amount of
estimated future production, costs of future production, future capital
expenditures, the success of exploration activities, the anticipated timing
for the payment of a shareholder dividend and statements with respect to
future dividends payable to the Company’s shareholders, the completion of
studies, mine life and any potential extensions, the future price of gold and
the share buyback programme. Generally, these forward-looking statements can
be identified by the use of forward-looking terminology such as "expects",
"expected", "budgeted", "forecasts", "anticipates", "believes", "plan",
"target", "opportunities", "objective", "assume", "intention", "goal",
"continue", "estimate", "potential", "strategy", "future", "aim", "may",
"will", "can", "could", "would" and similar expressions.
Forward-looking statements, while based on management's reasonable estimates,
projections and assumptions at the date the statements are made, are subject
to risks and uncertainties that may cause actual results to be materially
different from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the successful completion of
divestitures; risks related to international operations; risks related to
general economic conditions and the impact of credit availability on the
timing of cash flows and the values of assets and liabilities based on
projected future cash flows; Endeavour’s financial results, cash flows and
future prospects being consistent with Endeavour expectations in amounts
sufficient to permit sustained dividend payments; the completion of studies on
the timelines currently expected, and the results of those studies being
consistent with Endeavour’s current expectations; actual results of current
exploration activities; production and cost of sales forecasts for Endeavour
meeting expectations; unanticipated reclamation expenses; changes in project
parameters as plans continue to be refined; fluctuations in prices of metals
including gold; fluctuations in foreign currency exchange rates; increases in
market prices of mining consumables; possible variations in ore reserves,
grade or recovery rates; failure of plant, equipment or processes to operate
as anticipated; extreme weather events, natural disasters, supply disruptions,
power disruptions, accidents, pit wall slides, labour disputes, title
disputes, claims and limitations on insurance coverage and other risks of the
mining industry; delays in the completion of development or construction
activities; changes in national and local government legislation, regulation
of mining operations, tax rules and regulations and changes in the
administration of laws, policies and practices in the jurisdictions in which
Endeavour operates; disputes, litigation, regulatory proceedings and audits;
adverse political and economic developments in countries in which Endeavour
operates, including but not limited to acts of war, terrorism, sabotage, civil
disturbances, non-renewal of key licences by government authorities, or the
expropriation or nationalisation of any of Endeavour’s property; risks
associated with illegal and artisanal mining; environmental hazards; and risks
associated with new diseases, epidemics and pandemics.
Although Endeavour has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Please refer to Endeavour's most recent Annual Information Form
filed under its profile at www.sedarplus.ca for further information respecting
the risks affecting Endeavour and its business.
The declaration and payment of future dividends and the amount of any such
dividends will be subject to the determination of the Board of Directors, in
its sole and absolute discretion, taking into account, among other things,
economic conditions, business performance, financial condition, growth plans,
expected capital requirements, compliance with the Company's constating
documents, all applicable laws, including the rules and policies of any
applicable stock exchange, as well as any contractual restrictions on such
dividends, including any agreements entered into with lenders to the Company,
and any other factors that the Board of Directors deems appropriate at the
relevant time. There can be no assurance that any dividends will be paid at
the intended rate or at all in the future.
NON-GAAP MEASURES
Some of the indicators used by Endeavour in this press release represent
non-IFRS financial measures, including "all-in margin", "all-in sustaining
cost", "net cash / net debt", "EBITDA", "adjusted EBITDA", "net cash / net
debt to adjusted EBITDA ratio", "cash flow from continuing operations", "total
cash cost per ounce", "sustaining and non-sustaining capital", "net earnings",
"adjusted net earnings", "free cash flow", "operating cash flow per share",
"free cash flow per share", and "return on capital employed". These measures
are presented as they can provide useful information to assist investors with
their evaluation of the pro forma performance. Since the non-IFRS performance
measures listed herein do not have any standardised definition prescribed by
IFRS, they may not be comparable to similar measures presented by other
companies. Accordingly, they are intended to provide additional information
and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Please refer to the non-GAAP
measures section in this press release and in the Company’s most recently
filed Management Report for a reconciliation of the non-IFRS financial
measures used in this press release.
Corporate Office: 5 Young St, Kensington, London W8 5EH, UK
Attachments
* EDV_Q1-2025_Financial Statements
(https://ml-eu.globenewswire.com/Resource/Download/5ed36455-41cd-49fc-aa6d-c987c078985c)
* EDV_Q1-2025_MD&A
(https://ml-eu.globenewswire.com/Resource/Download/f645ab4c-e4b2-4714-92b1-b9e2fd189696)
* EDV_Q1-2025_Mine Stats
(https://ml-eu.globenewswire.com/Resource/Download/57246d4a-15ab-48ed-8f84-ea4da194af18)
* EDV_Q1-2025_Results Presentation
(https://ml-eu.globenewswire.com/Resource/Download/1fc82228-4f4b-4f8d-8b2d-aed2037d5536)
* EDV_Q1-2025_Results News Release
(https://ml-eu.globenewswire.com/Resource/Download/302bacbb-9bef-49a7-91d7-7363d9ceba77)Recent news on Endeavour Mining
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