ENDEAVOUR REPORTS Q3-2024 RESULTS Adjusted EBITDA of $317m • Free Cash Flow of $97m • Shareholder returns paid of $229m OPERATIONAL AND FINANCIAL HIGHLIGHTS
NEWS RELEASE – LSE & TSX: EDV All amounts in US$
ENDEAVOUR REPORTS Q3-2024 RESULTS Adjusted EBITDA of $317m • Free Cash Flow of $97m • Shareholder returns paid of $229m OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Strongest quarterly production this year of 270koz at AISC of $1,287/oz; YTD-2024 production of 741koz at AISC of $1,256/oz with FY-2024 production expected at or around the low end of guidance with AISC above the top end
- YTD-2024 AISC impact of $149/oz by higher royalty costs driven by higher gold prices, low grid power availability in H1-2024 and underperformance at the Sabodala-Massawa CIL
- Adj. EBITDA of $317m for Q3-2024, up 27% over Q2-2024, and Adj. Net Earnings of $74m (or $0.30/sh) for Q3-2024
- Operating cash flow before changes in working capital of $245m (or $1.00/sh), up 15% over Q2-2024
- Free Cash Flow of $97m (or $0.40/sh) for Q3-2024, up 20% over Q2-2024
- Healthy financial position with improved net debt of $834m and leverage of 0.77x tracking towards 0.5x target following completion of growth phase
- Shareholder returns paid of $229m; H1-2024 dividend of $100m (or $0.41/sh) and $29m of share buybacks year to date
ORGANIC GROWTH
- Commercial production achieved on budget and on schedule at both Sabodala-Massawa BIOX® Expansion and Lafigué on 1 August 2024; both project ramp-ups tracking in line with expectations
- Strong exploration efforts with $74m spent YTD-2024; high priority Tanda-Iguela exploration programme has identified continuous shallow mineralisation at the Pala Trend 3 target within close proximity to the Assafou project
London, 7 November 2024 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased to announce its operating and financial results for Q3-2024 and YTD-2024, with highlights provided in Table 1 below.
Table 1: Q3-2024 and YTD-2024 Highlights from continuing operations1 THREE MONTHS ENDED NINE MONTHS ENDED
| All amounts in US$ million unless otherwise specified | 30 September 2024 | 30 June 2024 | 30 September 2023 | 30 September 2024 | 30 September 2023 | Δ Q3-2024 vs. Q2-2024 |
|---|---|---|---|---|---|---|
| OPERATING DATA Gold Production, koz Gold sold, koz All-in Sustaining Cost2,3, $/oz Realised Gold Price4, $/oz | 251 281 238 278 1,287 967 2,287 1,903 | 792 799 974 1,910 | ||||
| 270 | 741 | +8% | ||||
| 280 | 743 | +18% | ||||
| 1,287 | 1,256 | —% | ||||
| 2,342 | 2,233 | +2% | ||||
| CASH FLOW Operating Cash Flow before changes in working capital Operating Cash Flow before changes in working capital2, $/sh Operating Cash Flow Operating Cash Flow2, $/sh Free Cash Flow2,5 Free Cash Flow2,5, $/sh | 213 121 0.87 0.49 258 115 1.05 0.47 81 (80) 0.33 (0.32) | 500 2.02 453 1.83 (130) (0.53) | ||||
| 245 | 595 | +15% +15% (1)% (1)% | ||||
| 1.00 | 2.43 | |||||
| 255 | 568 | |||||
| 1.04 | 2.32 | |||||
| 97 | 45 | +20% +21% | ||||
| 0.40 | 0.18 | |||||
| PROFITABILITY Net Earnings Attributable to Shareholders Net Earnings, $/sh Adj. Net Earnings Attributable to Shareholders2 Adj. Net Earnings2, $/sh EBITDA2 Adj. EBITDA2 | (60) 60 (0.24) 0.24 3 70 0.01 0.28 193 262 249 263 | 137 0.55 188 0.76 704 755 | ||||
| (95) | (175) | n.a. n.a. | ||||
| (0.39) | (0.71) | |||||
| 74 | 117 | +2367% +2900% | ||||
| 0.30 | 0.48 | |||||
| 128 317 | 477 779 | (34)% | ||||
| +27% | ||||||
| SHAREHOLDER RETURNS2 Shareholder dividends paid Share buybacks | — 100 8 20 | 200 40 | ||||
| — | 100 | n.a. | ||||
| 9 | 29 | +13% | ||||
| FINANCIAL POSITION HIGHLIGHTS2 Net Debt Net Debt / LTM Trailing adj. EBITDA6 | 835 445 0.81x 0.40x | 445 0.40 x | ||||
| 834 | 834 | —% | ||||
| 0.77x | 0.77x | (5)% |
1 Continuing Operations excludes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023. 2This is a non-GAAP measure, refer to the non-GAAP Measures section for further details. 3Excludes pre-commercial costs and ounces sold. 4Realised gold prices are inclusive of the Sabodala-Massawa stream and the realised gains/losses from the Group’s revenue protection programme.5From all operations; calculated as Operating Cash Flow less Cash used in investing activities 6Last Twelve Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by discontinued operations.
Management will host a conference call and webcast today, 7 November 2024, at 8:30 am EST / 1:30 pm GMT. For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release. A copy 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: “During Q3-2024 we continued to deliver against our strategic objectives as we successfully completed our growth phase, achieving commercial production at our two organic growth projects, which supported our strongest quarter of production this year and underpinned our transition to a phase focused on free cash flow generation.
On the operational front, we expect full-year production to be at or around the low end of the guidance range, while our all-in sustaining cost is expected to be above the top end of the range, due to higher royalty and power costs as well as lower production at the Sabodala-Massawa CIL operation. Despite above average rainfall early in the Q4, our performance is expected to be significantly stronger than Q3, supported by the ramp ups of our growth projects as well as increased production at the Houndé and Mana mines, in line with their mine sequences.
During the quarter, we completed construction and achieved commercial production at the Sabodala-Massawa BIOX Expansion and the Lafigué mine, with both projects ramping up in line with expectations and achieving nameplate throughput capacity during the quarter. At the top tier Assafou project, where the preliminary feasibility study is on track for completion in Q4, we continue to see significant exploration upside, both at the Assafou project, and on the wider Tanda-Iguela property.
We achieved a significant free cash inflection during the quarter, generating approximately $100 million of free cash flow, and given our strong outlook, we are now focused on shareholder returns and our balance sheet. We repaid $160 million of our revolving credit facility during the quarter, while our stronger earnings supported an improvement in our leverage, as we advanced towards our 0.5x leverage target. On shareholder returns, we paid our H1-2024 dividend of $100 million and we have now returned $229 million to shareholders this year through dividends and share buybacks. We will increase our focus on supplemental shareholder returns over the coming quarters.
Looking forward, we have visibility to organically grow the production profile to our 1.5 million ounce portfolio objective by the end of the decade, while maintaining best in class margins. We expect to outline our new outlook next year, which will underpin our continued commitments to disciplined capital allocation and delivering attractive shareholder returns.”
SHAREHOLDER RETURNS PROGRAMME
- Endeavour implemented a shareholder returns programme for the 2021 - 2023 period that was comprised of three annual minimum dividends totalling $450.0 million, supplemented by additional dividends and share buybacks. Over the shareholder returns programme period, Endeavour returned $903.0 million to shareholders comprised of $600.0 million of dividends and $303.0 million of share buybacks; more than double the minimum commitment and equivalent to $211 returned for every ounce produced over the 2021-2023 period.
- During Q3-2024, Endeavour implemented a new shareholder returns programme to reflect its transition from a phase focused on investment to one focused on free cash flow generation. The new programme is comprised of minimum dividends of $435.0 million over the 2024-2025 period, that are expected to be supplemented with additional dividends and share buybacks.
- Dividends are expected to be paid semi-annually, provided that the prevailing gold price for the dividend period is at or above $1,850/oz and the Company has a healthy financial position. Supplemental returns are expected to be paid in the form of dividends and opportunistic share buybacks, if the gold price exceeds $1,850/oz and if the Company has a healthy financial position.
- Since the beginning of the year, Endeavour has paid $200.0 million in dividends including the H2-2023 dividend of $100.0 million ($0.41/sh) paid on 25 March 2024 (within the 2021 - 2023 programme) and the H1-2024 dividend of $100.0 million ($0.41/sh) paid on 10 October 2024 and returned an additional $28.9 million or 1.46 million shares through opportunistic share buybacks, of which $8.8 million or 0.42 million shares were repurchased during Q3-2024.
- Since payment of the first dividend in FY-2021, Endeavour has returned more than $1,032.0 million to shareholders, including $700.0 million of dividends and $332.0 million of share buybacks.
Table 2: Cumulative Shareholder Returns
| (All amounts in US$m) | MINIMUM DIVIDEND COMMITMENT | SUPPLEMENTAL DIVIDENDS | BUYBACKS COMPLETED | TOTAL RETURN | △ ABOVE MINIMUM COMMITMENT |
|---|---|---|---|---|---|
| FY-2020 | — | 60 — | 60 | +60 | |
| 2021-2023 FY-2021 Shareholder Returns FY-2022 Programme FY-2023 (completed) | 125 150 175 | 15 138 50 99 25 66 | 278 299 266 | +153 +149 +91 | |
| 2024-2025 H1-2024 Shareholder Returns H2-2024 (Minimum) Programme FY-2025 (Minimum) (ongoing) | 100 110 225 | — 20 — 9 — — | 120 | +20 +9 — | |
| 119 225 | |||||
| TOTAL TOTAL | 885 | 150 | 332 1,367 +482 |
OPERATING SUMMARY
- Strong safety performance for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) from continuing operations of 0.12 for the trailing twelve months ended 30 September 2024.
- Q3-2024 production amounted to 270koz, an increase of 19koz over Q2-2024, due to the ramp up of the Sabodala-Massawa BIOX and Lafigué operations to commercial production, both of which were achieved on 1 August 2024, as well as higher production at Houndé, which was partially offset by lower production at Ity, Mana and the Sabodala-Massawa CIL operation. Production increased at Houndé due to higher average grades processed and at Lafigué due to the ramp-up of the mine towards nameplate capacity, which was achieved late in Q3. Production decreased at Ity due to lower average grades processed in line with the mine sequence, at Mana due to lower tonnes milled following the depletion of the Maoula open pit, and at Sabodala-Massawa CIL due to the continued lower grade mill feed as well as strike action, maintenance activity and significantly above average rainfall lowering throughput levels.
- Q3-2024 AISC was stable quarter on quarter at $1,287/oz as commercial production commenced at the low cost Lafigué mine coupled with lower AISC at Houndé, which was offset by higher AISC at Ity, Sabodala-Massawa and Mana. Lower AISC at Houndé was due to higher grades processed and lower power costs as grid power availability improved significantly compared to Q2-2024. Higher AISC at Ity, Sabodala-Massawa and Mana were largely due to lower volumes of gold sold and higher royalty costs due to higher gold prices, as well as higher sustaining capital at Ity and Sabodala-Massawa.
Table 3: Group Production THREE MONTHS ENDED NINE MONTHS ENDED
| All amounts in koz, on a 100% basis | 30 September 2024 | 30 June 2024 | 30 September 2023 | 30 September 2024 | 30 September 2023 |
|---|---|---|---|---|---|
| Houndé Ity Mana Sabodala-Massawa1 Lafigué1 | 74 77 30 | 64 96 | 109 | 179 259 | 228 |
| 73 | 250 106 | ||||
| 35 30 57 69 | 107 | ||||
| 54 | 159 | 209 | |||
| 36 | — — | 36 | — | ||
| PRODUCTION FROM CONTINUING OPERATIONS | 270 | 251 281 | 741 | 793 | |
| Boungou2 Wahgnion2 | — | — — | — — | 33 68 | |
| — | — | — | |||
| GROUP PRODUCTION | 270 | 251 281 | 741 | 893 |
1Includes pre-commercial ounces that are not included in the calculation of All-In Sustaining Costs.
2The Boungou and Wahgnion mines were divested on 30 June 2023.
Table 4: Group All-In Sustaining Costs THREE MONTHS ENDED NINE MONTHS ENDED
| All amounts in US$/oz | 30 September 2024 | 30 June 2024 | 30 September 2023 | 30 September 2024 | 30 September 2023 |
|---|---|---|---|---|---|
| Houndé Ity Mana Sabodala-Massawa1 Lafigué1 Corporate G&A | 1,379 | 1,472 787 885 864 | 1,457 | 959 793 1,408 795 | |
| 928 | 898 | ||||
| 1,987 | 1,927 1,164 | 1,734 840 | 1,756 | ||
| 1,219 | 1,112 938 47 | ||||
| 938 | — — 48 40 | — 50 | |||
| 45 | |||||
| AISC FROM CONTINUING OPERATIONS | 1,287 | 1,287 | 967 | 1,256 | 974 |
| Boungou2 Wahgnion2 | — — | — — — — | — — | 1,639 1,566 | |
| GROUP AISC3 | 1,287 | 1,287 | 967 | 1,256 | 1,045 |
1Excludes pre-commercial costs associated with ounces from the BIOX expansion project and the Lafigué mine. 2The Boungou and Wahgnion mines were divested on 30 June 2023. 3This is a non-GAAP measure, refer to the non-GAAP Measures section for further details.
FY-2024 OUTLOOK
- Group production is expected to be at or around the low end of the FY-2024 production guidance of 1,130 – 1,270koz as outperformance at Ity coupled with strong performances at Houndé and Lafigué are expected to be partially offset by the lower performance at the Sabodala-Massawa CIL operation
- Group AISC is expected to be above the top end of the $955 – 1,035/oz guided range, due to underperformance at the Sabodala-Massawa CIL operation driving lower production and higher AISC, compounded by higher royalty costs associated with the prevailing higher gold prices and low grid power availability during H1-2024 affecting assets in Burkina Faso and Côte d’Ivoire.
Table 5: FY-2024 Production Outlook
| (All amounts in koz, on a 100% basis) | YTD-2024 ACTUALS | FY-2024 GUIDANCE | FY-2024 OUTLOOK |
|---|---|---|---|
| Houndé 179 Ity 259 Mana 107 Sabodala-Massawa1 159 Lafigué1 36 | 260 - 290 270 - 300 150 - 170 360 - 400 90 - 110 | ON TRACK ABOVE TOP END ON TRACK BELOW LOWER END ON TRACK | |
| Group Production | 741 | 1,130 - 1,270 | NEAR LOW END |
1Includes pre-commercial production ounces
- As previously guided, FY-2024 operational performance is weighted towards Q4-2024, which is expected to be the strongest quarter year to date. Q4-2024 production is predicated on expected improvements at the Houndé, Mana, Sabodala-Massawa and Lafigué mines in Q4-2024. Houndé is expected to benefit from higher grade ore from the Kari Pump pit in the mill feed, which historically has had slightly lower recoveries. At Mana, improved access to higher grade underground stopes should
support higher grade and volumes of throughput, if the above average rainfall seen in Q3-2024 decreases. The Sabodala- Massawa CIL operation will be supported by new non-refractory higher-grade ore sources, where pre-stripping activity is largely complete. The Sabodala-Massawa BIOX and Lafigué operations are expected to continue to improve as they complete a full quarter at nameplate production. Conversely at Ity average grades processed are expected to decrease as a lower proportion of Ity and Bakatouo ore will be in the mill feed.
- At Sabodala-Massawa, FY-2024 production is expected to be below the guided range due to lower availability of high-grade non-refractory ore, particularly from the Sabodala pit as mining activities focused on depleting the pit ahead of the potential commencement of in-pit tailings deposition in 2025. To supplement the mill feed at the Sabodala-Massawa CIL plant, the Kiesta C and Niakafiri East deposits have been accelerated into the mine plan, adding higher-grade non-refractory oxide ores into the FY-2024 mine plan, that were previously in the plan for FY-2025, resulting in a decrease in availability of higher-grade non-refractory oxide ores in the FY-2025 mine plan. The Sabodala-Massawa exploration programme is prioritising the delineation of potential high-grade non-refractory oxide targets Sekoto, Mamassato and Koulouqwinde, that could be incorporated into the near term mine plan.
Table 6: FY-2024 All-In Sustaining Cost Outlook
| (All amounts in US$/oz) | YTD-2024 ACTUALS | FY-2024 GUIDANCE | FY-2024 OUTLOOK |
|---|---|---|---|
| Houndé 1,457 Ity 898 Mana 1,756 Sabodala-Massawa1 1,112 Lafigué1 938 Corporate G&A 47 | 1,000 - 1,100 850 - 925 1,200 - 1,300 750 - 850 900 - 975 | ABOVE TOP END ON TRACK ABOVE TOP END ABOVE TOP END ON TRACK ON TRACK | |
| 40 | |||
| Group AISC | 1,256 | 955 - 1,035 | ABOVE TOP END |
1Excludes pre-commercial production costs and ounces
- Group AISC guidance is expected to be above the top end of the guided range due to higher gold prices increasing royalty costs (realised gold price exclusive of hedges of $2,321/oz in YTD-2024 above guidance gold price of $1,850/oz, resulting in a +$34/oz impact on YTD-2024 AISC), lower grid power availability in H1-2024 (+$35/oz impact on group AISC YTD-2024) impacting Houndé (approximately $58/oz YTD-2024 impact) and Mana (approximately +$117/oz YTD-2024 impact) and lower levels of production at higher costs at Sabodala-Massawa (+$80/oz impact on YTD-2024) due to lower availability of high grade non-refractory ore as mining activities focussed on depleting the Sabodala pit.
Table 7: YTD-2024 All-In Sustaining Cost Impacts
| (All amounts in US$/oz) | YTD-2024 ACTUALS | FY-2024 OUTLOOK |
|---|---|---|
| Group AISC at $1,850/oz1 | 955 - 1,035 | |
| Royalties at $2,321/oz2 realised gold price +34 Low grid power availability in H1-20243 +35 Sabodala-Massawa CIL performance +80 | (+) Increase expected in Q4-2024 given high gold price (-) Availability largely improved in early Q3-2024 | |
| +80 | (-) Significantly stronger performance expected in Q4-2024 | |
| Group AISC at $2,321/oz2 (actual) | 1,256 | (-) Stronger production at lower AISC improving FY-2024 AISC |
1FY-2024 group AISC guidance was issued at a $1,850/oz gold price 2The realised YTD-2024 gold price, exclusive of the Sabodala-Massawa stream and the realised gains/losses from the Group’s revenue protection programme, amounted to $2,321/oz. 3As previously disclosed, grid availability issues increased self-generated power costs across Burkina Faso and Côte d’Ivoire assets during the YTD-2024 period.
- The impact of higher gold prices on royalty costs, low grid power availability in H1-2024 and Sabodala-Massawa CIL underperformance on YTD-2024 AISC has been approximately $149/oz, while Q4-2024 AISC is expected to be significantly lower than YTD-2024 AISC due to higher levels of production and gold sales, which is expected to be partially offset by higher royalty costs due to the higher prevailing gold prices quarter to date.
- Group sustaining capital expenditure outlook for FY-2024 has been lowered by $5.0 million to $120.0 million, with $80.5 million incurred in YTD-2024 (net of YTD-2024 corporate sustaining capital of $2.1 million), and $30.2 million incurred in Q3-2024 (net of Q3-2024 corporate sustaining capital of $1.1 million). The decrease is due to the lower sustaining capital outlook expected at Sabodala-Massawa due to lower levels of production and a decrease in planned waste development, and at Lafigué due to the redesign of the main pit pushback, which was partially offset by higher sustaining capital at Mana due to increased underground development and leasing payments to contractors.
- Group non-sustaining capital expenditure outlook for FY-2024 has been increased by $35.0 million to $225.0 million, with $162.0 million incurred in YTD-2024, and $68.9 million incurred in Q3-2024. The increase is due to increased non-sustaining capital at Ity due to accelerated waste stripping and TSF 2 construction resulting from higher than guided levels of production, at Mana due to increased underground development to gain more access to underground stopes, and at Lafigué due to the main pit pushback redesign.
- Growth capital expenditure outlook for FY-2024 remains unchanged at $245.0 million, with $227.4 million incurred in YTD-2024, primarily related to construction activities at the Sabodala-Massawa BIOX® expansion project ($62.4 million
incurred in YTD-2024 compared to FY-2024 guidance of $75.0 million), the Lafigué mine ($157.2 million incurred in YTD-2024 compared to guidance of $170.0 million) and additional spend related to the Kalana project.
- Exploration expenditure outlook for FY-2024 is expected to be slightly above the $77.0 million guidance, of which $74.4 million was incurred in YTD-2024, due to the accelerated exploration activity at Sabodala-Massawa focused on delineating near-term non-refractory targets. Exploration expenditure is expected to decrease into Q4-2024 as the programmes focus on compilation and desktop work for reserve and resource updates as well as targeting for next year and beyond. More details on the allocation of the Group’s increased exploration budget are provided in the sections below.
Table 8: FY-2024 Sustaining & Non-Sustaining Capital Expenditure
| YTD-2024 SPEND | FY-2024 GUIDANCE | REVISED FY-2024 GUIDANCE | |
|---|---|---|---|
| 39 6 18 15 3 | 40 10 15 35 25 | 40 10 25 30 15 | |
| Total Sustaining Capital Expenditure | 81 | 125 | 120 |
| 5 52 44 22 31 4 4 | 10 45 40 40 45 5 | 10 60 50 40 45 15 5 | |
| 5 | |||
| Total Non-Sustaining Capital Expenditure | 162 | 190 | 225 |
| Total Mine Capital Expenditure | 243 | 315 | 345 |
CASH FLOW SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three-month periods ended 30 September 2024, 30 June 2024, and 30 September 2023, and the nine month periods ended 30 September 2024 and 30 September 2023 with accompanying explanations below.
Table 9: Cash Flow and Net Debt THREE MONTHS ENDED NINE MONTHS ENDED
| All amounts in US$ million unless otherwise specified Notes | 30 September 2024 | 30 June 2024 | 30 September 2023 | 30 September 2024 | 30 September 2023 | |
|---|---|---|---|---|---|---|
| Net cash from/(used in), as per cash flow statement: Operating cash flows before changes in working capital1 Changes in working capital1 | 213 121 45 (5) | 500 (47) | ||||
| 245 | 595 | |||||
| 10 | (27) | |||||
| Cash generated from operating activities from continuing [1] operations Cash generated from discontinued operations | 255 | 258 115 (6) — | 568 | 453 27 | ||
| — | (6) | |||||
| Cash generated from operating activities [1] Cash used in investing activities [2] | 255 (158) | 252 115 (171) (195) | 562 (517) | 480 (610) | ||
| Free Cash Flow2,3 | 97 | 81 (80) 45 (130) | ||||
| Cash generated/(used) in financing activities [3] Effect of exchange rate changes on cash | (241) 9 | (150) (125) (5) (15) | (303) (7) | (198) 2 | ||
| DECREASE IN CASH | (135) (74) (219) | (265) (326) | ||||
| Cash and cash equivalent position at beginning of period4 | 387 | 461 845 | 517 | 951 | ||
| CASH AND EQUIVALENT POSITION AT END OF PERIOD4 | [4] | 252 | 387 | 625 | 252 625 | |
| Principal amount of $500m Senior Notes Drawn portion of Lafigué Term Loan Drawn portion of Sabodala Term Loan Drawn portion of $645m Revolving Credit Facility | 500 | 500 500 147 35 — — 575 535 | 500 | 500 35 — 535 | ||
| 147 | 147 | |||||
| 23 | 23 | |||||
| 415 | 415 | |||||
| NET DEBT2 | [5] | 834 | 835 | 445 | 834 | 445 |
| Trailing twelve month adjusted EBITDA2,5 | 1,082 | 1,028 1,113 | 1,082 | 1,113 | ||
| Net Debt / Adjusted EBITDA (LTM) ratio2,5 | 0.77x | 0.81x | 0.40x | 0.77x | 0.40x |
1 Continuing operations excludes the Boungou and Wahgnion mines which were divested on 30 June 2023.
2 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.
3Calculated as Operating Cash Flow less Cash used in investing activities.
4Cash and cash equivalents are net of bank overdrafts ($62.2 at 30 September 2024; $21.1 million at 30 June 2024; Nil at 31 December 2023; Nil at 30 September 2023; Nil at 30 June 2023; Nil at 31 December 2022).
5Trailing twelve month adjusted EBITDA includes EBITDA generated by discontinued operations.
NOTES:
1) Operating cash flows remained stable with $254.8 million (or $1.04 per share) in Q3-2024 due to higher revenues and lower income tax payments which were largely offset by higher operating costs, royalties, gold collar and inter-quarter forward settlement outflows and a decrease in working capital inflows as well as the inclusion of a $150.0 million operating cash inflow related to the pre-payment agreement as detailed further below.
Operating cash flows increased by $82.1 million from $479.8 million (or $1.94 per share) in YTD-2023 to $561.9 million (or $2.29 per share) in YTD-2024 due to higher revenues, higher working capital inflows, lower exploration costs and the proceeds from the $150.0 million gold prepayment, partially offset by higher operating costs, increased royalties and cash settlements for gold hedges.
Notable variances are summarised below:
- Working capital was an inflow of $10.1 million in Q3-2024, a decrease of $34.9 million over the Q2-2024 inflow of $45.0 million. The inflow in Q3-2024 consisted of (i) a trade and other payables inflow of $49.6 million related to increases in supplier payables, royalties payable and payroll-related liabilities, partially offset by (ii) a receivables outflow of $31.5 million due to a build-up of VAT receivables, (iii) an inventory outflow of $4.8 million due to an increase in operational consumables at Lafigué and stockpile inventory at Sabodala-Massawa and (iv) a prepaid expenses and other outflow of $3.2 million related to the timing of payments.
Working capital was an outflow of $27.2 million in YTD-2024, a decrease of $20.2 million over the YTD-2023 outflow of $47.4 million, largely driven by an increase in inflows in trade and other payables, partially offset by an increase in inventory outflows related to a build-up of stockpiles and consumables at growth projects and an increase in trade and other receivables due to a build-up of VAT receivables.
Gold sales from continuing operations increased from 238koz in Q2-2024 to 280koz in Q3-2024 due to higher group
•
production in Q3-2024 and the timing of gold shipments at Sabodala-Massawa. The realised gold price from continuing operations for Q3-2024 was $2,506 per ounce compared to $2,322 per ounce for Q2-2024. Inclusive of the Group’s Revenue Protection Programme (-$106/oz Q3-2024 impact) and London Bullion Market Association (“LBMA”) gold price averaging strategy (-$57/oz Q3-2024 impact), the realised gold price for Q3-2024 was $2,342 per ounce compared to $2,287 per ounce for Q2-2024.
Gold sales from continuing operations decreased from 799koz in YTD-2023 to 743koz in YTD-2024, following lower Group production in YTD-2024. The realised gold price from continuing operations for YTD-2024 was $2,321 per ounce compared to $1,915 per ounce for YTD-2023. Inclusive of the Group’s Revenue Protection Programme (-$60/oz YTD-2024 impact) and LBMA gold price averaging strategy (-$28/oz YTD-2024 impact), the realised gold price for YTD-2024 was $2,233 per ounce compared to $1,910 per ounce for YTD-2023.
- Total cash cost per ounce decreased from $1,148 per ounce in Q2-2024 to $1,128 per ounce in Q3-2024 due to higher volumes of gold sold and lower processing unit costs reflecting improved grid availability across sites in Burkina Faso and Cote d’Ivoire partially offset by higher royalties due to higher revenue and higher unit processing costs at Sabodala-Massawa reflecting lower plant availability and utilisation during the quarter.
Total cash cost per ounce increased from $837 per ounce in YTD-2023 to $1,097 per ounce in YTD-2024 due to higher royalties, higher processing costs associated with an increased reliance on self-generated power, higher open-pit mining costs due to increased drill & blast (Houndé), grade control drilling (Houndé and Sabodala-Massawa) and longer haulage distances (Houndé, Ity and Sabodala-Massawa), lower volumes of gold sold, and a reduction in capitalised stripping costs (Houndé, Sabodala-Massawa and Ity), partially offset by decreased underground mining costs at Mana.
- Income taxes paid decreased by $98.8 million from $163.3 million in Q2-2024 to $64.5 million in Q3-2024 due largely to the timing of tax payments in Senegal, Cote d’Ivoire and Burkina Faso from our Sabodala-Massawa, Ity and Houndé mines, and a decrease in withholding tax payments related to the upstreaming of cash in the prior quarter.
Income taxes paid increased by $9.1 million from $270.0 million in YTD-2023 to $279.1 million in YTD-2024 due largely to the increase in taxes paid at Ity as provisional tax payments made in YTD-2024 are calculated from a higher FY-2023 tax base when compared to the prior year and higher withholding taxes paid due to an increased quantum of cash upstreamed compared to the prior year-to-date period, partially offset by decreased tax payments at Mana and Sabodala-Massawa due to lower estimated taxable profit.
Table 10: Tax Payments from continuing operations
THREE MONTHS ENDED NINE MONTHS ENDED
| All amounts in US$ million | 30 September 2024 | 30 June 2024 | 30 September 2023 | 30 September 2024 | 30 September 2023 |
|---|---|---|---|---|---|
| Houndé Ity Mana Sabodala-Massawa Lafigué Other1 | 12 | 17 11 50 9 3 5 45 65 — — 49 51 | 40 | 35 43 21 116 — 54 | |
| 25 | 75 | ||||
| 2 — | 9 76 | ||||
| — 25 | 1 79 | ||||
| Taxes paid by continuing operations | 65 | 163 142 | 279 | 270 |
1Included in the “Other” category is income and withholding taxes paid by Corporate and Exploration entities.
As previously disclosed, on 26 April 2024 the Company entered into two separate gold prepayment agreements for a total consideration of $150.0 million in exchange for the delivery of approximately 76koz in Q4-2024. The gold prepayments secured $150.0 million of financing for a low cost of capital of approximately 5.3% and supported the Company’s offshore cash position during its investment and de-levering phase. The prepayments are structured as follows:
- A $100.0 million prepayment agreement with the Bank of Montreal based on a floating arrangement for the delivery of approximately 54koz in reference to prevailing spot prices for the settlement of $105.1 million (inclusive of $5.1 million in financing costs) in Q4-2024. The value of the 54koz above the contracted $105.1 million reimbursement at the time of delivery will be returned to Endeavour as cash.
- A $50.0 million prepayment agreement with ING Bank N.V. is based on a fixed arrangement for the delivery of approximately 22koz for the settlement of $50.0 million in Q4-2024. To mitigate the Group’s exposure to gold price associated with the delivery of ounces under the fixed arrangement prepayment agreement, Endeavour has entered into forward purchase contracts for 22koz at an average gold price of $2,408/oz due in Q4-2024, locking in a financing cost of approximately $3.0 million.
2) Cash flows used in investing activities decreased by $13.5 million from $171.4 million in Q2-2024 to $157.9 million in Q3-2024 due to proceeds of $29.8 million related to the sale of Allied Gold shares, the receipt of $25.1 million in proceeds related to the settlement agreement for the disposal of Boungou and Wahgnion (subsequent to quarter-end Endeavour received the remaining outstanding $5.0 million from the first $30.0 million tranche on 9 October 2024, with an additional $10.0 million received on 23 October 2024 related to the second $30.0 million tranche) and decreased growth capital expenditure related to closing payments for the Lafigué and BIOX growth projects partially offset by an increase in sustaining capital expenditure at Houndé (HME replacement) and Sabodala-Massawa (purchase of drill rigs for owner-operated grade control) and increased non-sustaining capital expenditure at Sabodala-Massawa related to the purchase of additional haulage fleet capacity.
Cash flows used in investing activities decreased by $93.0 million from $609.8 million in YTD-2023 to $516.8 million in YTD-2024 largely due to lower growth capital related to the timing of growth project payments, a $39.8 million inflow related to the sale of Allied Gold Shares, $25.1 million in proceeds received for the disposal of Boungou and Wahgnion mentioned above and a decrease in non-sustaining capital associated with decreased pre-stripping activities at Ity and Houndé, partially offset by increased sustaining capital at Houndé (waste development) and Mana (underground development).
- Sustaining capital from continuing operations increased from $21.6 million in Q2-2024 to $31.3 million in Q3-2024, largely due to increased expenditure at Houndé related to replacement of heavy mining equipment, at Lafigué due to classification of stripping to sustaining capital after the declaration of commercial production on 1 August 2024, and at Sabodala-Massawa due to the timing of purchases of new drill rigs.
Sustaining capital from continuing operations increased from $71.8 million in YTD-2023 to $82.6 million in YTD-2024 due to higher sustaining capital expenditure at Houndé related to increased stripping activity, and at Mana related to increased underground development and inaugural sustaining capital expenditure at Lafigué, partially offset by reduced expenditure at Sabodala-Massawa and Ity.
- Non-sustaining capital from continuing operations increased from $51.8 million in Q2-2024 to $68.9 million in Q3-2024 largely due to an increase at Sabodala-Massawa as spending on the Solar Power Plant optimisation initiative accelerated and at Lafigué related to the pre-stripping activities following the declaration of commercial production from 1 August 2024.
Non-sustaining capital from continuing operations decreased from $192.8 million in YTD-2023 to $162.0 million in YTD-2024 largely due to decreased expenditure at Ity due to decreased pre-stripping activities at Le Plaque and expenditure related to the Recyn optimisation initiative and decreased expenditure at Houndé due to reduced prestripping activities at the Kari Pump pit, partially offset by increased expenditure at Sabadola-Massawa related to the ongoing solar power plant optimisation initiative.
- Growth capital decreased from $93.4 million in Q2-2024 to $35.3 million in Q3-2024, the Sabodala-Massawa BIOX® Expansion and Lafigué growth projects were completed during the quarter.
Growth capital decreased from $292.5 million in YTD-2023 to $227.4 million in YTD-2024 due to the timing of construction activities at the Sabodala-Massawa BIOX® Expansion, which was launched in Q2-2022, and the Lafigué development project, which was launched in Q4-2022.
3) Cash flows used in financing activities increased by $91.2 million from an outflow of $149.8 million in Q2-2024 to an outflow of $241.0 million in Q3-2024 largely due to $190.1 million in repayments of debt made during the quarter. Financing cash outflows in Q3-2024 included $190.1 million in repayments of debt including $185.0 million in repayment of the Company’s RCF ($415.0 million drawn as at Q3-2024) and $5.1 million in repayment of the Sabodala Term Loan, payment of dividends to minorities of $74.9 million related to the upstreaming of cash, payments of financing and other fees of $15.4 million, acquisition of the Company’s own shares through its share buyback programme of $8.2 million, and payment of finance and lease obligations of $5.6 million. Outflows were partially offset by $53.2 million in proceeds from long-term debt including $25.0 million drawn from the Company’s RCF and $28.2 million drawn from the Sabodala- Massawa Term loan.
On 29 July 2024, the Group entered into a $28.2 million term loan with Ecobank, a local banking partner in Senegal, as part of the Group’s strategy to progressively move its debt onshore to reduce leakages associated with debt service and repayments of offshore debt. During Q3-2024, the Group drew down the full $28.2 million and subsequently repaid $5.1 million. The term loan bears interest at an attractive fixed rate of 6.0% per annum, payable monthly, maturing in December 2024.
On 5 November 2024, subsequent to quarter end, the Group signed a new $700.0 million sustainability-linked Revolving Credit Facility (“RCF”) at the same favourable terms as the 2021 $645.0 million RCF that will be re-financed. The new RCF will bear interest at a rate equal to SOFR plus between 2.40% to 3.40% per annum based on leverage, in line with the 2021 RCF, and will have 4-year term with the potential for a 1-year extension. The new facility was coordinated by Citibank and comprises a syndicate of eight banks including Citibank, Bank of Montreal who acted as the Sustainability Co-ordinator, HSBC Bank, ING Bank, Macquarie Bank, Nedbank, Standard Bank of South Africa, and Standard Chartered Bank. The new sustainability-linked RCF integrates the core elements of Endeavour’s sustainability strategy into its financing strategy, specifically climate change, biodiversity and malaria, with clear sustainability-linked performance metrics that will be measured on an annual basis and reviewed by an independent external verifier. For more details on the sustainability-linked RCF, please refer to the MD&A.
Cash flows used in financing activities increased by $105.5 million from an outflow of $197.6 million in YTD-2023 to an outflow of $303.1 million in YTD-2024 largely due a net inflow of $273.3 million in proceeds from debt in the prior period.
4) At quarter end, Endeavour’s cash and cash equivalents, net of $62.2 million in drawn cash on bank overdraft facilities, stood at $251.8 million.
5) Endeavour’s net debt position decreased by $1.8 million, from $835.4 million at the end of Q2-2024 to $833.6 million at the end of Q3-2024 and the net debt / Adjusted EBITDA (LTM) leverage ratio decreased from 0.81x at the end of Q2-2024 to 0.77x at the end of Q3-2024, reflecting the completion of the Company’s growth phase and a transition towards a phase focused on de-levering and shareholder returns.
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three-month periods ended 30 September 2024, 30 June 2024, and 30 September 2023, and the nine month periods ended 30 September 2024 and 30 September 2023 with accompanying explanations below.
Table 11: Earnings from Continuing Operations
THREE MONTHS ENDED NINE MONTHS ENDED
| All amounts in US$ million unless otherwise specified Notes | 30 September 2024 | 30 30 June September 2024 2023 | 30 September 2024 | 30 September 2023 | ||
|---|---|---|---|---|---|---|
| Revenue [6] Operating expenses [7] Depreciation and depletion [7] Royalties [8] | 706 (272) (147) (52) | 557 530 (241) (205) (128) (114) (40) (32) | 1,735 (714) (384) (126) | 1,535 (579) (316) (93) | ||
| Earnings from mine operations | 234 | 148 | 178 | 512 | 548 | |
| Corporate costs [9] Impairment of mining interests and goodwill Share-based compensation Other expense [10] Derecognition and impairment of financial assets [11] Exploration costs [12] | (12) — (4) (23) (112) (4) | (11) (10) — — (5) (5) (13) (1) (17) (6) (4) (15) | (33) | (38) (15) (22) (4) (6) (42) | ||
| — | ||||||
| (13) | ||||||
| (53) | ||||||
| (129) (14) | ||||||
| Earnings from operations | 79 | 97 | 141 | 270 | 421 | |
| (Loss)/gain on financial instruments [13] Finance costs | (98) | (32) 7 (26) (19) | (176) (79) | (34) (52) | ||
| (29) | ||||||
| Earnings before taxes | (49) | 39 129 | 15 | 336 | ||
| Current income tax expense [14] Deferred income tax recovery | (68) | (135) (54) 51 (2) | (244) | (193) 47 | ||
| 40 | 98 | |||||
| Net comprehensive (loss)/earnings from continuing operations | [15] | (77) (45) | 74 | (131) | 190 | |
| Add-back adjustments [16] | 169 | 65 13 | 300 | 58 | ||
| Adjusted net earnings from continuing operations | 91 | 20 87 | 168 | 248 | ||
| Portion attributable to non-controlling interests | 18 | 17 17 | 51 | 60 | ||
| Adjusted net earnings from continuing operations attributable to shareholders of the Company | [17] | 74 | 3 | 69 | 117 | 188 |
| Adjusted net earnings per share from continuing operations | 0.30 | 0.01 0.28 | 0.48 | 0.76 |
NOTES:
6) Revenue increased by $149.1 million from $556.8 million in Q2-2024 to $705.9 million in Q3-2024 due to higher volumes of gold sales and a $184 per ounce increase in the realised gold price from $2,322 per ounce in Q2-2024 to $2,506 per ounce in Q3-2024, exclusive of the Company’s Revenue Protection Programme (Gold collars and London Bullion Market Association (“LBMA”) gold price averaging strategy).
Revenue increased by $200.1 million from $1,535.3 million in YTD-2023 to $1,735.4 million in YTD-2024 due to a higher realised gold price for YTD-2024 of $2,321 per ounce compared to $1,915 per ounce for YTD-2023, exclusive of the Company’s Revenue Protection Programme (Gold collars and LBMA gold price averaging strategy), partially offset by lower volumes of gold sold.
7) Operating expenses increased by $31.2 million from $241.2 million in Q2-2024 to $272.4 million in Q3-2024 largely due to the ramp-up of production at Lafigué and the Sabodala-Massawa BIOX® Expansion and the drawdown of gold inventory sold in excess of production. Depreciation and depletion increased by $19.4 million from $127.8 million in Q2-2024 to $147.2 million in Q3-2024 due to the commencement of depreciation and depletion of the BIOX plant and refractory ore reserves, coupled with inaugural depreciation and depletion expenses at Lafigué subsequent to commercial production declaration.
Operating expenses increased by $135.0 million from $578.5 million in YTD-2023 to $713.5 million in YTD-2024 due to increased processing costs across the Group, increased underground mining costs at Mana driven by higher volumes and increased mining costs at Ity, Houndé and Sabodala-Massawa, largely reflecting increased diesel consumption and increased drill and blast activities. Depreciation and depletion increased by $67.9 million from $315.8 million in YTD-2023 to $383.7 million in YTD-2024 due to the lower reserves bases at Ity and Sabodala-Massawa following the December 2023 reserves and resource update, higher levels of production at Ity, increased depreciation at Sabodala-Massawa related to higher depreciation rates associated with the Sabodala pit as it approaches the end of its mine life and inaugural depreciation and depletion charges at Lafigué and the Sabodala-Massawa BIOX project subsequent to commercial production from 1 August 2024.
8) Royalties increased by $11.9 million from $40.2 million in Q2-2024 to $52.1 million in Q3-2024 due to a higher realised gold price and higher gold sales volumes.
Royalties increased by $32.8 million from $93.4 million in YTD-2023 to $126.2 million in YTD-2024 due to a higher realised gold price and the increase to the sliding scale royalty rate structure in Burkina Faso effective from November 2023, partially offset by a decrease in gold sales.
9) Corporate costs of $11.9 million in Q3-2024 were largely consistent with the prior quarter.
Corporate costs decreased from $37.9 million in YTD-2023 to $33.3 million in YTD-2024 due to decreased corporate employee compensation and professional service costs, partially offset by an increase in administrative and other overhead costs.
10)Other expenses increased by $9.4 million from $13.4 million in Q2-2024 to $22.8 million in Q3-2024. For Q3-2024, other expenses included $15.6 million in restructuring and settlement costs associated with Sabodala-Massawa, $2.1 million in legal and other costs primarily related to the Lilium settlement, $2.2 million in disturbance costs, $2.0 million in community contributions, $0.8 million in realised losses on the disposal of assets and $0.1 million in tax claims.
11)De-recognition and impairment of financial assets increased by $95.1 million from $17.1 million in Q2-2024 to $112.2 million in Q3-2024 due to the write-down of expected proceeds from the divestment of the non-core Boungou and Wahgnion mines as a result of the previously announced settlement agreement between Endeavour, Lilium and the Government of Burkina Faso, which comprises a lower consideration than the original divestment transaction consideration with Lilium in Q2-2023. Pursuant to the settlement, Endeavour will receive a cash consideration of $60.0 million comprised of $15.0 million of upfront cash, $15.0 million cash payable by the end of Q3-2024 and $30.0 million payable by the end of Q4-2024 in addition to a 3% royalty on up to 400,000 ounces of gold sold from the Wahgnion mine. Endeavour received $25.1 million in cash during Q3-2024 and $14.9 million in early Q4-2024, with the outstanding $20.0 million expected to be received by the end of Q4-2024 in line with the payment schedule.
De-recognition and impairment of financial assets increased by $122.9 million from $5.8 million in YTD-2023 to $128.7 million in YTD-2024 due largely to the above mentioned write-down of expected proceeds from the divestment of the Boungou and Wahgnion mines.
12)Exploration costs of $4.3 million in Q3-2024 were consistent with the prior quarter.
Exploration costs decreased from $41.9 million in YTD-2023 to $14.0 million in YTD-2024 largely due to a decrease in exploration expense at the Assafou project on the Tanda-Iguela property, as increasingly, exploration activities are being capitalised at the Assafou project following the commencement of the pre-feasibility study, which is expected to be published in Q4-2024.
13)The loss on financial instruments increased from a loss of $31.8 million in Q2-2024 to a loss of $98.3 million in Q3-2024 largely due to an increase in net losses on gold collars and inter-quarter forward contracts. The loss on financial instruments during the quarter included an unrealised loss on gold collars and inter-quarter forward contracts of $49.2 million, a realised loss on gold collars and inter-quarter forward contracts of $45.7 million (including a $29.7 million realised loss on gold collars and a $16.0 million realised loss on inter-quarter forward contracts related to London Bullion Market Association (“LBMA”) gold price averaging), unrealised foreign exchange losses of $10.3 million and a $1.4 million unrealised loss on other financial instruments partially offset by a gain on marketable securities (Turaco Gold Limited and Allied Gold Corporation) of $7.6 million, an unrealised fair value gain on NSRs and deferred considerations of $0.5 million and an unrealised gain on the early redemption feature of senior notes of $0.2 million.
The loss on financial instruments increased from a loss of $33.7 million in YTD-2023 to a loss of $176.3 million in YTD-2024, due largely to realised and unrealised losses in relation to the Revenue Protection Programme and 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 2023, 2024 and 2025 production.
- During Q3-2024, 113koz were delivered into gold collars at the call gold price of $2,400/oz. For Q4-2024, approximately 113koz are expected to be delivered into a collar with an average call price of $2,400/oz and an average put price of $1,807/oz.
- For FY-2025, approximately 200koz 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.
14)Current income tax expense decreased by $66.8 million from $135.0 million in Q2-2024 to $68.2 million in Q3-2024 largely due to a decrease in recognised withholding tax expenses in Q3-2024 compared to $73.6 million in Q2-2024, due to the timing of local board approvals for cash upstreaming, partially offset by an increase in current corporate income taxes driven by higher taxable profits at Houndé and Ity as well as the addition of tax provisions at Lafigué subsequent to the declaration of commercial production.
Current income tax expense increased by $50.6 million from $193.1 million in YTD-2023 to $243.7 million in YTD-2024 due to an increase in withholding taxes on dividends paid by operating subsidiaries, an increase in current income taxes at Houndé and Ity, and adjustments in respect of the prior year income tax mainly in relation to the temporary contribution of 2% of net profit after tax of operating mines in Burkina Faso.
15)Net comprehensive losses from continuing operations increased by $32.4 million from a net comprehensive loss of $44.8 million in Q2-2024 to a net comprehensive loss of $77.2 million in Q3-2024. The increase in losses is largely driven by the impairment of proceeds from Boungou and Wahgnion divestment following the Lilium settlement, higher losses on financial instruments related to the Revenue Protection Programme, higher royalties and higher depreciation partially offset by improved operating margins and a lower tax expense.
Net comprehensive earnings from continuing operations decreased by $321.5 million from net comprehensive earnings of $190.2 million in YTD-2023 to a net comprehensive loss of $131.3 million in YTD-2024. The decrease in earnings was largely driven by higher losses on financial instruments related to the Revenue Protection Programme, the abovementioned impairment, lower production, lower operating margins, higher depreciation, higher other expenses and higher royalties recorded in addition to higher finance costs due to increased interest expenses reflecting higher borrowings.
16)For Q3-2024, adjustments included an impairment of $112.2 million related to the write-down of proceeds from the sale of the Boungou and Wahgnion assets, an unrealised loss on financial instruments of $52.7 million largely related to the unrealised loss on forward sales and collars, and other expenses of $22.8 million largely related to the Sabodala-Massawa employee settlement and legal and other costs for the now settled Lilium arbitration process, partially offset by a gain on non-cash, tax and other adjustments of $19.1 million that mainly relate to the impact of foreign exchange remeasurements of deferred tax balances.
17)Adjusted net earnings attributable to shareholders for continuing operations increased by $70.6 million from earnings of $3.1 million (or $0.01 per share) in Q2-2024 to adjusted net earnings of $73.7 million (or $0.30 per share) in Q3-2024, due to improved operating margins and lower tax expenses.
Adjusted net earnings attributable to shareholders for continuing operations decreased by $70.7 million from $188.1 million (or $0.76 per share) in YTD-2023 to $117.4 million (or $0.48 per share) in YTD-2024 due to lower production, lower operating margins, higher royalties and higher realised losses on gold collars and hedges.