ENDEAVOUR REPORTS STRONG Q1-2025 RESULTS FY-2025 guidance on track • Adjusted Ebitda of $613m • Record Free Cash Flow of $409m Operational and Financial Highlights
NEWS RELEASE – LSE & TSX: EDV All amounts in US$
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 $24m spent in Q1-2025, focused on near-mine resource expansions and Assafou.
London, 1 May 2025 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased to announce its operating and financial results for Q1-2025, with highlights provided in Table 1 below.
Table 1: Operating and financial highlights THREE MONTHS ENDED
| All amounts in US$ million unless otherwise specified | 31 March | 31 December 2024 | 31 March 2024 | Δ Q1-2025 |
| 2025 | vs. Q4-2024 | |||
| OPERATING DATA Gold Production, koz Gold sold, koz Total Cash Cost1, $/oz All-in Sustaining Cost1, $/oz Realised Gold Price2, $/oz | 363 219 356 225 979 1,007 1,141 1,186 2,590 2,041 | |||
| 341 | (6)% | |||
| 353 | (1)% | |||
| 929 | (5)% | |||
| 1,129 | (1)% | |||
| 2,783 | +7% | |||
| CASH FLOW Operating Cash Flow before changes in working capital Operating Cash Flow before changes in working capital1, $/sh Operating Cash Flow Operating Cash Flow1, $/sh Free Cash Flow1,3 Free Cash Flow1,3, $/sh | 356 137 1.46 0.56 381 55 1.56 0.22 268 (132) 1.10 (0.54) | |||
| 592 | +66% | |||
| 2.43 | +66% | |||
| 494 | +30% | |||
| 2.03 | +30% | |||
| 409 | +53% | |||
| 1.68 | +53% | |||
| PROFITABILITY Net Earnings Attributable to Shareholders Net Earnings, $/sh Adj. Net Earnings Attributable to Shareholders1 Adj. Net Earnings1, $/sh EBITDA1,4 Adj. EBITDA1,4 | (119) (20) (0.49) (0.08) 110 41 0.45 0.17 357 156 546 213 | |||
| 173 | n.a. | |||
| 0.71 | n.a. | |||
| 219 | +99% | |||
| 0.90 | +100% | |||
| 540 | +51% | |||
| 613 | +12% | |||
| SHAREHOLDER RETURNS1 Shareholder dividends paid Share buybacks | 100 100 8 13 | |||
| — | n.a. | |||
| 40 | +400% | |||
| FINANCIAL POSITION HIGHLIGHTS1 Net Debt Net Debt / LTM Trailing adj. EBITDA4 | 732 831 0.55x 0.80x | |||
| 378 | (48)% | |||
| 0.22x | (60)% |
the realised gains/losses from the Group’s revenue protection programme. 3From all operations; calculated as Operating Cash Flow less Cash used in investing activities. 4Last 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 $12/oz over Q4-2024 driven by lower total cash costs and lower sustaining waste capital at Houndé and Lafigué, partially offset by higher sustaining underground development at Mana.
Table 2: Group Production THREE MONTHS ENDED
| All amounts in koz, on a 100% basis | 31 March | 31 December 2024 | 31 March 2024 |
| 2025 | |||
| Houndé Ity Mana Sabodala-Massawa Lafigué | 92 | 109 | 42 |
| 84 | 84 | 86 | |
| 46 | 41 | 42 | |
| 72 | 70 | 49 | |
| 48 | 60 | — | |
| GROUP PRODUCTION | 341 | 363 | 219 |
Table 3: Consolidated Total Cash Costs THREE MONTHS ENDED
| (All amounts in US$/oz) | 31 March | 31 December 2024 | 31 March 2024 |
| 2025 | |||
| Houndé Ity Mana Sabodala-Massawa Lafigué | 751 | 922 1,120 943 858 1,320 1,345 1,107 890 748 — | |
| 875 | |||
| 1,360 | |||
| 959 | |||
| 918 | |||
| GROUP TOTAL CASH COSTS1 | 929 | 979 | 1,007 |
1This is a non-GAAP measure, refer to the non-GAAP Measures section for further details.
Table 4: Group All-In Sustaining Costs THREE MONTHS ENDED
| All amounts in US$/oz | 31 March | 31 December 2024 | 31 March 2024 |
| 2025 | |||
| Houndé Ity Mana Sabodala-Massawa Lafigué Corporate G&A | 858 | 1,024 | 1,572 |
| 930 | 987 | 884 | |
| 1,887 | 1,698 | 1,453 | |
| 1,173 | 1,261 | 947 | |
| 926 | 801 — 41 49 | ||
| 43 | |||
| GROUP ALL-IN SUSTAINING COSTS1 | 1,129 | 1,141 | 1,186 |
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 $277.4 million which is equivalent to the total shareholder returns for FY-2024.
Table 5: Cumulative Shareholder Returns
| MINIMUM | SUPPLEMENTAL DIVIDENDS | BUYBACKS COMPLETED | △ ABOVE MINIMUM COMMITMENT | |||
|---|---|---|---|---|---|---|
| TOTAL | ||||||
| DIVIDEND | ||||||
| RETURN | ||||||
| COMMITMENT | ||||||
| — | 60 — | 60 | ||||
| 125 | 15 138 50 99 25 66 | 278 | ||||
| 150 | 299 | |||||
| 175 | 266 | |||||
| 210 | 30 37 — 52 | 277 | ||||
| 225 | 277 | |||||
| TOTAL | TOTAL | 885 | 180 | 392 | 1,457 | +572 |
CASH FLOW SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three-month periods ended 31 March 2025, 31 December 2024, and 31 March 2024, with accompanying explanations below.
Table 6: Cash Flow and Net Debt THREE MONTHS ENDED
| All amounts in US$ million unless otherwise specified Notes | 31 March | 31 December 2024 | 31 March 2024 | |
| 2025 | ||||
| Net cash from/(used in), as per cash flow statement: Operating cash flows before changes in working capital Changes in working capital | 356 137 25 (82) | |||
| 592 | ||||
| (98) | ||||
| Cash generated from operating activities [1] Cash used in investing activities [2] | 494 | 381 55 (113) (188) | ||
| (85) | ||||
| Free Cash Flow1,2 | 409 | 268 | (133) | |
| Cash (used in)/generated from financing activities [3] Effect of exchange rate changes on cash | (67) | (136) 88 — (12) | ||
| 10 | ||||
| INCREASE/(DECREASE) IN CASH | 353 | 132 | (56) | |
| Cash and cash equivalent position at beginning of period3 | 384 | 252 517 | ||
| CASH AND EQUIVALENT POSITION AT END OF PERIOD3 | 737 | 384 | 461 | |
| 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 | 500 500 133 147 13 — 470 645 | ||
| 130 | ||||
| — | ||||
| 485 | ||||
| NET DEBT1 | [4] | 378 | 732 | 831 |
| Trailing twelve month adjusted EBITDA1,4 | 1,725 | 1,325 1,034 | ||
| Net Debt / Adjusted EBITDA (LTM) ratio1,4 | 0.22x | 0.55x | 0.80x |
1Free 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. 2From all operations; calculated as Operating Cash Flow less Cash used in investing activities. 3Cash 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). 4Trailing 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 | 31 December 2024 | 31 March |
| 2025 | 2024 | ||
| Houndé Ity Mana Sabodala-Massawa Lafigué Other1 | 11 | 11 11 2 — 2 4 — 31 — 1 1 5 | |
| — | |||
| 2 | |||
| 24 | |||
| 2 | |||
| — | |||
| Taxes paid | 39 | 17 | 51 |
1Included 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 | 31 December 2024 | 31 March 2024 | |
| 2025 | ||||
| Revenue [5] Operating expenses [6] Depreciation and depletion [6] Royalties [7] | 1,042 | 941 473 (294) (200) (226) (109) (64) (34) | ||
| (259) | ||||
| (175) | ||||
| (76) | ||||
| Earnings from mine operations | 533 | 357 | 130 | |
| Corporate costs [8] Impairment of mining interests and goodwill Share-based compensation Other expense [9] Credit loss and impairment of financial assets [10] Exploration and evaluation costs [11] | (15) | (14) (11) (200) — (9) (4) (9) (17) (22) 1 (5) (5) | ||
| — | ||||
| (18) | ||||
| (19) | ||||
| (7) | ||||
| (9) | ||||
| Earnings from operations | 466 | 98 | 94 | |
| (Loss)/gain on financial instruments [12] Finance costs | (100) | 34 (46) (33) (23) | ||
| (20) | ||||
| Earnings before taxes | 345 | 99 | 24 | |
| Current income tax expense [13] Deferred income tax recovery/(expense) | (121) | (109) (41) (93) 7 | ||
| (2) | ||||
| 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 Total tonnes mined, kt Strip ratio (incl. waste cap) Tonnes milled, kt Grade, g/t Recovery rate, % Production, koz | 1,652 | 1,526 10,833 6.10 1,405 3.13 79 109 | 724 |
| 11,334 | 11,097 | ||
| 5.86 | 14.33 | ||
| 1,335 | 1,082 | ||
| 2.75 | 1.35 | ||
| 86 | 89 | ||
| 92 | 42 | ||
| Total cash cost/oz AISC/oz | 751 | 922 1,024 | 1,120 |
| 858 | 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 bee | |
| incurred in Q1-2025. During FY-2025, non-sustaining capital expenditure is expected to relate primarily to the Phase | |
| pushback at the Vindaloo Main pit commencing in H2-2025, the TSF 1 and TSF 2 stage-10 embankment raise, and lan | |
| 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 Total tonnes mined, kt Strip ratio (incl. waste cap) Tonnes milled, kt Grade, g/t Recovery rate, % Production, koz | 2,120 | 2,262 8,120 2.59 1,955 1.45 90 84 | 1,825 |
| 8,373 | 7,406 | ||
| 2.95 | 3.06 | ||
| 1,898 | 1,775 | ||
| 1.60 | 1.68 | ||
| 90 | 90 | ||
| 84 | 86 | ||
| Total cash cost/oz AISC/oz | 875 | 943 987 | 858 |
| 930 | 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 OP total tonnes mined, kt OP strip ratio (incl. waste cap) UG tonnes ore mined, kt Tonnes milled, kt Grade, g/t Recovery rate, % Production, koz | — | — — — 616 603 2.49 86 41 | 119 |
| — | 711 | ||
| — | 4.96 | ||
| 544 | 446 | ||
| 552 | 621 | ||
| 3.07 | 2.31 | ||
| 86 | 88 | ||
| 46 | 42 | ||
| Total cash cost/oz AISC/oz | 1,360 | 1,320 1,698 | 1,345 |
| 1,887 | 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