UK's Endeavour Mining H1 free cash flow jumps 48% to record high
UK's Endeavour Mining H1 free cash flow jumps 48% to record high
Overview
UK gold miner's Q2 gold production declined yr/yr, but H1 free cash flow hit record high
Adjusted EBITDA and net earnings for H1 rose sharply from a year earlier, driven by higher gold prices
Company returned a record $301 mln to shareholders in H1 via dividends and buybacks
Outlook
Endeavour expects FY-2026 gold production of 1,090-1,265koz, on track to meet guidance
Company maintains FY-2026 AISC guidance of $1,600-1,800/oz, adjusted for higher gold price royalties
Q3-2026 production expected to decrease due to wet season and lower grades; Q4-2026 to improve
Result Drivers
HIGHER GOLD PRICES - Co said increased realised gold prices were a key driver of higher H1-2026 earnings and cash flow
MIXED MINE PERFORMANCE - Higher production at Ity and Houndé offset declines at Mana, Lafigué and Sabodala-Massawa, with changes attributed to mine sequencing, maintenance, and ore grades
HIGHER COSTS AND ROYALTIES - All-in sustaining costs rose due to higher royalty costs from elevated gold prices and increased mining and processing expenses
Company press release: ID:nGNX5GlSKG
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted Net Income |
| $302 mln |
|
Q2 Net Income |
| $251 mln |
|
Q2 Adjusted EBITDA |
| $732 mln |
|
Q2 Adjusted Free Cash Flow |
| $265 mln |
|
Q2 EBITDA |
| $683 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the gold peer group is "buy"
Wall Street's median 12-month price target for Endeavour Mining plc is GBP4,750.00, about 36.2% above its July 29 closing price of GBP,487.00
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
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July 29 - Allied Gold's $4 billion sale to China's Zijin collapses, lands $295 million investment
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)