ENDEAVOUR REPORTS Q1-2024 RESULTS On track for 2024 guidance
1
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR REPORTS Q1-2024 RESULTS
On track for 2024 guidance • BIOX® Expansion first gold achieved • Lafigué dry commissioning underway
OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations unless otherwise specified)
• Q1-2024 production of 219koz at an AISC of $1,186/oz; on track to achieve full year 2024 guidance with performance
strongly weighted towards H2-2024
• Adjusted EBITDA of $213m for Q1-2024, down 27% over Q4-2023
• Adjusted Net Earnings of $41m (or $0.17/sh) for Q1-2024, flat over Q4-2023
• Operating Cash Flow before changes in WC of $137m (or $0.56/sh) for Q1-2024, down 44% over Q4-2023
• Healthy financial position with a net debt position of $831m at end Q1-2024 with $481m in cash and available liquidity
ORGANIC GROWTH
• Sabodala-Massawa BIOX® Expansion first gold pour completed on 18 April 2024, in only 2 years from construction
launch, with project on budget and on schedule; expansion ramping up to nameplate capacity in Q3-2024
• Lafigué development project on budget and on schedule for first gold in late Q2-2024 with dry commissioning underway
• Strong exploration efforts with $25m spent in Q1-2024; mineralisation extended at the Assafou deposit
ATTRACTIVE SHAREHOLDER RETURNS
• $100m or $0.41/sh dividend paid in Q1-2024 bringing FY-2023 dividend to $200m, 14% above minimum commitment
• $13m or 0.7 million share buybacks completed during Q1-2024 continue to supplement shareholder returns
• Shareholder returns total $917m since Q1-2021, equivalent to $211 for every ounce of gold produced over the period
London, 2 May 2024 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“ Endeavour”, the “Group” or the “Company”)
announces its operating and financial results for Q1-2024, with highlights provided in Table 1 below.
Table 1: Q1-2024 Highlights from continuing operations1
All amounts in US$ million unless otherwise specified
THREE MONTHS ENDED
31 March
2024
31 December
2023
31 March
2023
Δ Q1-2024 vs.
Q4-2023
OPERATING DATA
Gold Production, koz 219 280 243 (22)%
Gold sold, koz 225 285 252 (21)%
All-in Sustaining Cost2, $/oz 1,186 947 955 +25%
Realised Gold Price3, $/oz 2,041 1,945 1,879 +5%
CASH FLOW
Operating Cash Flow before changes in working capital 137 246 219 (44)%
Operating Cash Flow before changes in working capital2, $/sh 0.56 1.00 0.89 (44)%
Operating Cash Flow 55 167 191 (67)%
Operating Cash Flow2, $/sh 0.22 0.68 0.77 (68)%
PROFITABILITY
Net Earnings Attributable to Shareholders (20) (160) (1) n.a.
Net Earnings, $/sh (0.08) (0.65) 0.00 n.a.
Adj. Net Earnings Attributable to Shareholders2 41 42 65 (2)%
Adj. Net Earnings2, $/sh 0.17 0.17 0.26 —%
EBITDA2 156 70 169 +123%
Adj. EBITDA2 213 292 240 (27)%
SHAREHOLDER RETURNS2
Shareholder dividends paid 100 — 100 n.a.
Share buybacks 13 26 11 (50)%
ORGANIC GROWTH
Growth capital spend2 99 155 72 (36)%
Exploration spend 25 23 21 +9%
FINANCIAL POSITION HIGHLIGHTS
Net Debt2 831 555 50 +50%
Net Debt / LTM Trailing adj. EBITDA4 0.80x 0.50x 0.04x +60%
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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. 3Realised gold prices are inclusive of the Sabodala -Massawa stream and the realised gains/losses from the
Group’s revenue protection programme. 4Last Twelve Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by discontinued operations.
Management will host a conference call and webcast today, 2 May 2024, 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. 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: “Following my first quarter as Chief Executive Officer at Endeavour, I am
pleased that we have continued to make progress against our strategic objectives.
Our operational performance is tracking in line with our Group guidance, as production and costs are expected to progressivel y
improve throughout the year, with performance strongly weighted towards the second half, as our two organic growth projects
ramp up, and we expect significantly stronger performance from our Houndé mine.
We were delighted to have achieved first gold at the Sabodala-Massawa Expansion project on 18 April, and at our second growth
project, Lafigué, we have now started dry commissioning and are on track to deliver first gold in late Q2, a quarter ahead of
schedule. Lafigué will be the fifth growth project that we have completed over the last 10 years, all of which have been buil t on
budget and on schedule in two years or less. As we transition out of this phase of growth, we will renew our focus on optimis ing
our existing assets and continue developing our talented projects team, ahead of the next phase of growth.
Exploration at the Assafou deposit on the Tanda -Iguela property continues to demonstrate the project’s potential to become
another cornerstone asset for Endeavour. The aggressive drilling program has further extended the mineralised trend at the
Assafou deposit by over 400 metres, while drilling at potential satellite targets, in close proximity to Assafou, has also yi elded
promising results.
During the quarter we paid our H2 -2023 dividend of $100 million to shareholders and completed $13 million worth of share
buybacks. Since our first dividend payment in Q1 -2021, we have now returned $ 917 million to shareholders, equivalent to $ 211
for every ounce produced over the same period, demonstrating our commitment to paying supplemental returns. We have now
finished our first shareholder returns programme, and expect to outline the next phase of the programme early in H2.
Despite investing over $235 million in organic growth, exploration and shareholder returns during the quarter, our leverage
remains healthy at 0.80x net debt to adjusted EBITDA, and we are well positioned to quickly de -lever our balance sheet and
increase our commitment to shareholder returns, to reflect our transition from a phase of growth to one focused on cash flow
generation.
We look forward to advancing our strategy this year to further strengthen our business and benefit all our stakeholders.”
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OPERATING SUMMARY
• Strong safety performance for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) from continuing operations of 0.11
for the trailing twelve months ending 31 March 2024.
• As previously disclosed, on 28 February 2024, we were saddened to report that a contractor colleague passed away on 27
February 2024, as a result of injuries sustained in an incident that occurred during maintenance activities at the Mana mine
in Burkina Faso. The health, safety and welfare of our colleagues remain our top priority and we are focussed on
improvements to contractor management, front-line supervision and reviewing operational procedures.
• The Group remains on track to achieve its FY -2024 production guidance of 1,130 – 1,270koz at an AISC within the $955 –
1,035/oz range, with performance strongly weighted towards H2-2024, as previously guided.
• Q1-2024 production from continuing operations amounted to 219koz, a decrease of 61koz over Q4 -2023, due to lower
production at Houndé and Sabodala -Massawa, which was partially offset by higher production at Ity and Mana. Production
decreased at Houndé as lower grade ore from the Kari West pit was mined and processed while waste stripping focused on
the higher-grade Kari Pump and Vindaloo Main pits in order to access higher grade ore in H2 -2024 in line with the mine
sequence. In addition, mining and processing activities were temporarily stopped for 11 -days due to the previously disclosed
sub-contractor led strike. At Sabodala -Massawa, lower tonnage of high grade ore was sourced from the Sabodala pit as the
pit approaches the end of its economic mine life. Production increased at Ity, in -line with the mine sequence due to higher
grade ore from the Ity pit in the mill feed, and at Mana, as underground mining ramped up to deliver increased underground
ore tonnage to the mill.
• Q1-2024 AISC from continuing operations amounted to $1,186/oz, an increase of $239/oz over Q4 -2023 due largely to lower
volumes of gold sold at Houndé and Sabodala-Massawa, in addition to higher processing costs at Houndé, Sabodala-Massawa
and Ity as a result of increased power costs, a harder ore blend and commissioning costs associated with the Recyn
optimisation initiative, respectively. The increases were partially offset by a decrease at Mana due to higher gold volumes
sold and decreased unit rates as underground development activities continued to ramp-up.
Table 2: Group Production
THREE MONTHS ENDED
All amounts in koz, on a 100% basis
31 March
2024
31 December
2023
31 March
2023
Houndé 42 84 47
Ity 86 74 91
Mana 42 37 44
Sabodala-Massawa 49 85 61
PRODUCTION FROM CONTINUING OPERATIONS 219 280 243
Boungou1 — — 19
Wahgnion1 — — 39
GROUP PRODUCTION 219 280 301
1The Boungou and Wahgnion mines were divested on 30 June 2023.
Table 3: Group All-In Sustaining Costs
All amounts in US$/oz
THREE MONTHS ENDED
31 March
2024
31 December
2023
31 March
2023
Houndé 1,572 901 1,154
Ity 884 865 732
Mana 1,453 1,482 1,130
Sabodala-Massawa 947 700 787
Corporate G&A 49 41 56
AISC FROM CONTINUING OPERATIONS 1,186 947 955
Boungou1 — — 1,252
Wahgnion1 — — 1,354
GROUP AISC2 1,186 947 1,022
1The Boungou and Wahgnion mines were divested on 30 June 2023. 2This is a non-GAAP measure, refer to the non-GAAP Measures section for further details
• Sustaining capital expenditure outlook for FY-2024 remains unchanged at $125.0 million, of which $29.7 million was incurred
in Q1 -2024 primarily related to ongoing waste development activities at Houndé, Sabodala -Massawa and Ity, as well as
underground development at Mana.
• Non-sustaining capital expenditure outlook for FY -2024 remains unchanged at $190.0 million, of which $41.3 million was
incurred in Q1 -2024 primarily related to Solar Power plant construction at Sabodala -Massawa, TSF construction and
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embankment raises at Houndé, Ity and Mana, pre -stripping activities at the Walter and Bakatouo pits and the ongoing
Mineral Sizer optimisation initiative at Ity.
• Growth capital expenditure outlook for FY-2024 remains unchanged at $245.0 million, of which $98.7 million was incurred in
Q1-2024 primarily related to construction activities at the BIOX® expansion project in Senegal ( $39.8 million incurred in Q1-
2024), the Lafigué development project in Cote d’Ivoire ( $56.7 million incurred in Q1-2024) and additional spend related to
the Kalana project.
SHAREHOLDER RETURNS PROGRAMME
• Endeavour implemented a dividend policy in 2021, with the goal of supplementing its minimum dividend commitment with
additional dividends and share buybacks provided that the prevailing gold price remained above $1,500/oz and its leverage
remained below 0.5x Net Debt / adj EBITDA.
• Endeavour's goal is to increase its shareholder returns programme once its organic growth projects are completed, while
strengthening its balance sheet, thereby ensuring that its efforts to unlock growth immediately benefit all stakeholders. The
updated dividend framework for the next phase of Endeavour’s shareholder returns policy is expected to be announced in
early H2-2024.
• As previously announced, the FY -2023 dividend amounted to $200.0 million, which represents $25.0 million or 14% more
than the minimum dividend commitment of $175.0 million for the year, reiterating Endeavour's commitment to paying
supplemental shareholder returns. The H2 -2023 dividend of $100.0 million, or $0.41 per share, was paid on 25 March 2024
to shareholders of record on 23 February 2024.
• During Q1-2024, shareholder returns continued to be supplemented with share buybacks with $12.6 million or 0.7 million
shares repurchased during the period. Since the commencement of the buyback program, $316.1 million or 14.4 million
shares have been repurchased as at 31 March 2024.
• Since the first shareholder returns payment in Q1 -2021, the Company has now returned $916.5 million to shareholders
including $600.4 million of dividends and $316.1 million of share buybacks; equivalent to returning $211 per ounce of gold
produced from all operations over the same period.
CASH FLOW SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three month period ended 31 March 2024,
31 December 2023, and 31 March 2023, with accompanying explanations below.
Table 4: Cash Flow and Net Debt
THREE MONTHS ENDED
All amounts in US$ million unless otherwise specified Notes
31 March
2024
31 December
2023
31 March
2023
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital1 137 246 219
Changes in working capital1 (82) (80) (28)
Cash generated from discontinued operations — — 15
Cash generated from operating activities [1] 55 167 206
Cash used in investing activities [2] (188) (211) (200)
Cash generated/(used) in financing activities [3] 88 (79) (156)
Effect of exchange rate changes on cash (12) 15 9
DECREASE IN CASH (56) (108) (141)
Cash and cash equivalent position at beginning of period 517 625 951
CASH AND CASH EQUIVALENT POSITION AT END OF PERIOD [4] 461 517 810
Principal amount of $500m Senior Notes 500 500 500
Drawn portion of Lafigué Term Loan 147 107 —
Drawn portion of $645m Revolving Credit Facility 645 465 360
NET DEBT2 [5] 831 555 50
Trailing twelve month adjusted EBITDA2,3 1,034 1,101 1,173
Net Debt / Adjusted EBITDA (LTM) ratio2,3 0.80x 0.50x 0.04x
1 Continuing operations excludes the Boungou and Wahgnion mines which were divested on 30 June 2023.
2Net debt, Adjusted EBITDA, and cash flow per share are Non -GAAP measures. Refer to the non -GAAP measure section in this press release and in the
Management Report.
3Last Twelve Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by discontinued operations.
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NOTES:
1) Operating cash flows decreased by $111.6 million from $166.7 million (or $0.68 per share) in Q4 -2023 to $55.1 million (or
$0.22 per share) in Q1 -2024 due largely to lower volumes of gold sold and higher cash costs, partially offset by higher
realised gold prices and lower taxes paid.
Operating cash flows decreased by $150.5 million from $205.6 million (or $0.83 per share) in Q1 -2023 to $55.1 million (or
$0.22 per share) in Q1 -2024 due to lower production, increased operating costs, an increased working capital outflow,
and higher tax payments, which was partially offset by the higher realised gold price.
Notable variances are summarised below:
• Working capital was an outflow of $82.3 million in Q1 -2024, an increase of $2.8 million over the Q4 -2023 outflow of
$79.5 million. The outflow in Q1 -2024 was largely driven by a trade and other payables outflow of $34.7 million
related to supplier payments at Houndé and Ity, the timing of employee payables related to annual bonuses and
settlement of an indirect tax claim at Sabodala -Massawa. An outflow of inventories of $30.6 million mainly related to
a build-up of stockpiles for the BIOX® Expansion at Sabodala -Massawa and the Lafigué project ahead of commercial
operations. And an outflow in trade and other receivables of $17.8 million related to a build -up of VAT receipts across
Sabodala-Massawa, Houndé and Mana and the timing of payments for the last gold shipment conducted during the
quarter. These outflows were partially offset by a small prepaid expenses and other inflow of $0.8 million.
Working capital was an outflow of $82.3 million in Q1 -2024, an increase of $54.1 million over the Q1 -2023 outflow of
$28.2 million, largely driven by an increase in inventory outflows related to a build -up of stockpiles ahead of the two
project start-ups and an increase in trade and other receivables related to a build -up of VAT receipts across Sabodala-
Massawa, Houndé and Mana related to the timing of reimbursements.
• Gold sales from continuing operations decreased from 285koz in Q4 -2023 to 225koz in Q1 -2024 due to decreased
production as FY-2024 production is weighted towards the second half of the year at Houndé where stripping activity
was prioritised in Q1 -2024, and at Sabodala -Massawa where lower tonnage of high grade ore was sourced from the
Sabodala pit in Q1 -2024. The realised gold price from continuing operations for Q1 -2024 was $2,091 per ounce
compared to $2,007 per ounce for Q4-2023. Inclusive of the Group’s Revenue Protection Programme, the realised gold
price for Q1-2024 was $2,041 per ounce compared to $1,945 per ounce for Q4-2023.
Gold sales from continuing operations decreased from 252koz in Q1 -2023 to 225koz in Q1 -2024, following lower
Group production in Q1 -2024. The realised gold price from continuing operations for Q1 -2024 was $2,091 per ounce
compared to $1,902 per ounce for Q1-2023. Inclusive of the Group’s Revenue Protection Programme, the realised gold
price for Q1-2024 was $2,041 per ounce compared to $1,879 per ounce for Q1-2023.
• Total cash cost per ounce increased from $837 per ounce in Q4-2023 to $1,007 per ounce in Q1-2024, primarily due to
decreased gold sales and higher strip ratios at Houndé and Sabodala -Massawa as stripping activity was prioritised in
Q1-2024, and increased processing costs across the Group due to a combination of harder ore blends and higher
power costs in Burkina Faso due to the increased reliance on self generated power during the dry season, as
contributions from hydropower to the national grid were lower during the quarter.
Total cash cost per ounce increased from $792 per ounce in Q1 -2023 to $1,007 per ounce in Q1 -2024 due to
decreased gold sales, increased waste development and higher mining unit costs at Houndé and Sabodala -Massawa
and higher processing unit costs across the Group.
• As shown in the table below, i ncome taxes paid decreased by $19.6 million from $70.9 million in Q4 -2023 to $51.3
million in Q1-2024 due to significantly less withholding taxes associated with the upstreaming of cash during Q1 -2024,
no taxes paid at Ity as the first provisional payment of the year is payable in Q2 -2024 and lower taxes paid at Houndé
and Mana largely due to the timing of payments, which was partially offset by an increase in taxes paid at Sabodala as
the first provisional income tax payment of the year was payable in Q1-2024.
Income taxes paid increased by $26.9 million from $24.4 million in Q1 -2023 to $51.3 million in Q1 -2024 due largely to
the increase in taxes paid at Sabodala-Massawa as provisional tax payments in the quarter were based on the FY -2023
tax base, which considers higher taxable earnings as FY-2022 benefited from a tax holiday on the Massawa licenses.
Table 5: Tax Payments from continuing operations
THREE MONTHS ENDED
All amounts in US$ million
31 March
2024
31 December
2023
31 March
2023
Houndé 11.0 16.5 10.9
Ity — 18.6 1.3
Mana 3.9 5.5 3.0
Sabodala-Massawa 30.6 — 5.6
Other1 5.8 30.3 3.6
Taxes paid by continuing operations 51.3 70.9 24.4
1Included in the “Other” category is income and withholding taxes paid by Corporate and Exploration entities.
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2) Cashflows used in investing activities decreased by $23.5 million from $211.0 million in Q4 -2023 to $187.5 million in Q1-
2024 due to a decrease in growth capital spend as the two growth projects advance towards completion, and a decrease
in non-sustaining capital due to reduced pre -stripping activities, partially offset by an increase in sustaining capital due to
increased stripping activities at Houndé and Sabodala-Massawa.
Cashflows used in investing activities decreased by $12.8 million from $200.3 million in Q1 -2023 to $187.5 million in Q1 -
2024 largely due to a decrease in non-sustaining capital spend across the group related to reduced pre-stripping activities,
reduced underground development at Mana and reduced spending on optimisation initiatives.
• Sustaining capital from continuing operations increased from $20.0 million in Q4 -2023 to $29.7 million in Q1 -2024,
largely due to increased sustaining capital expenditure at Houndé (increased waste stripping activities across the Kari
Pump and Vindaloo Main pits) and Sabodala -Massawa (increased waste stripping), partially offset by decreased
sustaining capital expenditure at Mana (lower proportion of underground waste development being capitalised during
the quarter) while sustaining capital spends at Ity were relatively stable.
Sustaining capital from continuing operations increased slightly from $27.7 million in Q4 -2023 to $29.7 million in Q1 -
2024 as higher sustaining capital expenditure at Houndé was largely offset by lower sustaining capital expenditure at
Sabodala-Massawa related to reduced waste stripping activities.
• Non-sustaining capital from continuing operations decreased from $52.5 million in Q4 -2023 to $41.3 million in Q1 -
2024, largely due to a decrease in non -sustaining capital at Sabodala -Massawa (reduced infrastructure and pre -
stripping of the Niakafiri East and Sofia North Extension pits), at Ity (reduced cutback activities at the Walter pit) and
at Houndé (reduced pre-stripping activities in the Kari Pump pit) partially offset by increased non -sustaining capital at
Mana (increased development of the underground).
Non-sustaining capital from continuing operations decreased from $83.9 million in Q1 -2023 to $41.3 million in Q1 -
2024 due to decreased non -sustaining capital expenditure at Ity (reduced Recyn costs, TSF costs, and Le Plaque pre -
stripping costs), at Sabodala -Massawa (reduced pre -stripping), at Houndé (reduced pre -stripping activities at Kari
Pump), and at Mana (reduced underground waste development as development advanced into ore).
• Growth capital decreased from $155.0 million in Q4 -2023 to $98.7 million in Q1 -2024, as cash outflows associated
with the BIOX® and Lafigué growth projects decreased as construction activities approached completion. Growth
capital expenditure during the quarter also included $2.2 million for work related to the Kalana project.
Growth capital increased from $72.2 million in Q1 -2023 to $98.7 million in Q1 -2024 due to the timing of construction
activities at the Sabodala-Massawa expansion, which was launched in Q2 -2022, and the Lafigué development project,
which was launched in Q4-2022.
3) Cash flows generated from financing activities increased by $166.7 million from an outflow of $79.0 million in Q4 -2023 to
an inflow of $87.7 million in Q1 -2024 largely due to the drawdown on debt facilities, partially offset by the timing of
dividend payments to shareholders. Financing cash inflows in Q1 -2024 included $219.3 million in proceeds from long -
term debt including $180.0 million drawn on the Company’s Revolving credit Facility (total amount of $645.0 million
drawn as at Q1-2024) and $39.3 million drawn on the Lafigué Term loan (total amount of $146.5 million drawn as at Q1 -
2024) partially offset by financing cash outflows which included the payment of the H2 -2023 dividend to shareholders of
$100.0 million, acquisition of the Company’s own shares through its share buyback programme of $16.8 million, payment
of finance and lease obligations of $5.7 million, payment of dividends to minorities of $4.9 million, payments of financing
and other fees of $4.0 million, and payments for the settlement of tracker shares of $0.2 million.
Cash flows generated from financing activities increased by $243.4 million from an outflow of $155.7 million in Q1 -2023
to an inflow of $87.7 million in Q1 -2024 largely due to the draw down on the company’s long -term debt facilities during
the current period.
4) At quarter end, Endeavour’s liquidity remained strong at $481.5 million, consisting of $461.0 million of cash and cash
equivalents and $20.5 million available through the Lafigué Term Loan.
5) Endeavour’s net debt position has increased by $275.5 million, from $555.0 million at the end of Q4 -2023 to $830.5
million at the end of Q1 -2024 due to the Company’s ongoing investments in its organic growth projects, exploration and
the timing of dividend payments. The Company’s net debt / Adjusted EBITDA (LTM) leverage ratio remains healthy, albeit
above its long -term target of 0.50x, at 0.80x at the end of Q1 -2024. Following the completion of the current growth
phase, the Company’s leverage is expected to return to levels below the long-term target.
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EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three month periods ended 31 March 2024,
31 December 2023, and 31 March 2023, with accompanying explanations below.
Table 6: Earnings from Continuing Operations
THREE MONTHS ENDED
All amounts in US$ million unless otherwise specified Notes
31 March
2024
31 December
2023
31 March
2023
Revenue [6] 473 579 481
Operating expenses [7] (200) (209) (171)
Depreciation and depletion [7] (109) (133) (102)
Royalties [8] (34) (40) (30)
Earnings from mine operations 130 198 178
Corporate costs [9] (11) (11) (14)
Impairment of mining interests and goodwill — (108) —
Share-based compensation (4) (7) (8)
Other expense [10] (17) (45) (5)
Exploration costs [11] (5) (6) (13)
Earnings from operations 94 21 139
Loss on financial instruments [12] (46) (84) (72)
Finance costs (23) (19) (15)
Earnings before taxes 24 (82) 52
Current income tax expense [13] (41) (75) (48)
Deferred income tax (expense)/recovery 7 10 12
Net comprehensive earnings from continuing operations [14] (9) (148) 15
Add-back adjustments [15] 66 205 66
Adjusted net earnings from continuing operations 57 57 82
Portion attributable to non-controlling interests 16 15 17
Adjusted net earnings from continuing operations attributable to shareholders of
the Company [16] 41 42 65
Adjusted net earnings per share from continuing operations 0.17 0.17 0.26
NOTES:
6) Revenue decreased by $106.6 million from $579.3 million in Q4 -2023 to $472.7 million in Q1 -2024 due to a decrease in
gold sales from continuing operations as production decreased at Houndé and Sabodala -Massawa, which was partially
offset by an $84 per ounce increase in the realised gold price from $2,007 per ounce in Q4 -2023 to $2,091 per ounce in
Q1-2024, exclusive of the Company’s Revenue Protection Programme.
Revenue decreased by $8.5 million from $481.2 million in Q1-2023 to $472.7 million in Q1-2024 due to a decrease in gold
sales from continuing operations, partly offset by a higher realised gold price for Q1 -2024 of $2,091 per ounce compared
to $1,902 per ounce for Q1-2023, exclusive of the Company’s Revenue Protection Programme.
7) Operating expenses decreased by $8.8 million from $208.7 million in Q4-2023 to $199.9 million in Q1-2024 largely due to
lower production volumes at Houndé and Sabodala -Massawa, which was partially offset by higher processing costs at Ity
(increased throughput) and Mana (increased throughput and self -generated power costs). Depreciation and depletion
decreased by $23.9 million from $132.6 million in Q4 -2023 to $108.7 million in Q1 -2024 mainly due to lower production
at Houndé and Sabodala-Massawa.
Operating expenses increased by $28.5 million from $171.4 million in Q1-2023 to $199.9 million in Q1-2024 largely due to
increased strip ratios at Sabodala -Massawa and Houndé, increased underground mining costs at Mana driven by higher
volumes and increased processing costs at Houndé and Mana due to increased use of self generated power. Depreciation
and depletion increased by $6.8 million from $101.9 million in Q1 -2023 to $108.7 million in Q1 -2024 due to higher
depreciable costs at Mana which now has a higher capitalised cost base and at Sabodala -Massawa which has a lower
depletable reserves base in Q1-2024 following the FY-2023 reserves and resource update.
8) Royalties decreased by $6.4 million from $40.3 million in Q4 -2023 to $33.9 million in Q1 -2024 due to lower production
volumes compared to the prior quarter, partially offset by a higher realised gold price.
Royalties increased by $4.2 million from $29.7 million in Q1 -2023 to $33.9 million in Q1 -2024 due to a full quarter under
the the royalty rate structure in Burkina Faso, partially offset by lower production volumes.
9) Corporate costs decreased from $11.1 million in Q4 -2023 to $10.5 million in Q1 -2024 due to lower professional service
costs.
8
Corporate costs decreased from $13.5 million in Q1 -2023 to $10.5 million in Q1 -2024 due to lower professional service
costs.
10) Other expenses decreased from $45.1 million in Q4 -20233 to $16.6 million in Q1 -2024. For Q1 -2024, other expenses
included $8.1 million in tax claims related to Sabodala -Massawa and a temporary voluntary tax payment of 2% of profits
before tax and interest from the Houndé and Mana mines, $6.3 million in costs related to the investigation into the
former Chief Executive Officer’s misconduct, $5.9 million in legal and other costs primarily related to the ongoing
arbitration process around the non -core asset disposals, $0.7 million in restructuring costs, $0.5 million in community
contributions and $0.2 million in disturbance cost, partially offset by a $4.5 million gain on the disposal of the Afema asset
and a $0.6 million revaluation of receivables.
11) Exploration costs of $5.4 million in Q1-2024 were largely consistent with the prior quarter .
Exploration costs decreased from $12.5 million in Q1 -2023 to $5.4 million in Q1 -2024 largely due to a decrease in
expensed exploration at the Tanda-Iguela property, following the commencement of the pre-feasiblity study.
12) The loss on financial instruments decreased from a loss of $84.3 million in Q4 -2023 to a loss of $46.2 million in Q1 -2024
largely due to a decrease in unrealised losses on gold collars and forwards. The loss on financial instruments during the
quarter included unrealised losses on gold collars and forward sales of $22.8 million, realised losses on gold collars and
forward contracts of $11.4 million including $5.9 million related to the Group’s Revenue Protection Programme and $5.5
million related to the Group’s London Bullion Market Association (“LBMA”) gold price averaging strategy, unrealised
foreign exchange losses of $11.2 million, unrealised losses on Net Smelter Royalties (“NSRs”) and deferred compensation
related to asset sales of $1.1 million, and unrealised losses on foreign currency contracts of $0.8 million, which was
partially offset by an unrealised gain on the early redemption feature of senior notes of $0.6 million, an unrealised gain
on marketable securities of $0.3 million, and realised gains on foreign currency contracts of $0.2 million.
The loss on financial instruments decreased from a loss of $72.0 million in Q1 -2023 to a loss of $46.2 million in Q1 -2024,
due largely to mark -to-market adjustments in relation to gold hedges 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 Q1 -2024, 35koz were settled into forward sales contracts for an average gold price of $2,024/oz. For the
remainder of FY-2024, approximately 339koz (approximately 113koz 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 $1,807/oz. In addition, approximately 35koz
are scheduled to be settled during Q2-2024 in forward sales contracts at an average gold price of $2,041/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.
As previously disclosed, Endeavour entered into a Growth Capital Protection Programme designed to enhance cost
certainty for a portion of its growth capital expenditure at the BIOX® Expansion and Lafigué growth projects. The Group
had entered into various foreign exchange forward contracts across both the Euro and the Australian Dollar over 2023 and
2024.
• During Q1 -2024, €7.5 million was delivered into forward contracts at a blended rate of 1.04 EUR:USD and AU$3.3
million was delivered into forward contracts at a blended rate of 0.69 AUD:USD.
• The total outstanding notional forward contracted quantum is approximately €5.5 million at a blended rate of 1.04
EUR:USD over 2024 and approximately AU$2.4 million at a blended rate of 0.69 AUD:USD.
Subsequent to the end of Q1 -2024, 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 secure $150.0 million of financing for a low cost of capital of approximately 5.3%, and support the
Company’s offshore cash position during its peak investment phase. The prepayments are structured as follows:
• A $100.0 million 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, with the value of the 54koz above the contracted $105.1 million reimbursement
at the time of delivery returned to Endeavour as cash.
• A $50.0 million agreement with ING Bank N.V. is based on a fixed arrangement for the delivery of ounces 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 to lock in a finance
cost of approximately $3.0 million.
13) Current income tax expense decreased by $34.3 million from $74.8 million in Q4 -2023 to $40.5 million in Q1 -2024 largely
due to a decrease in recognised withholding tax expenses, which decreased by $25.6 million from $30.1 million in Q4 -
2023 to $4.5 million in Q1-2024 due to the timing of local board approvals for cash upstreaming in addition to a decrease
in taxes due to lower earnings from mine operations.
Current income tax expense decreased by $7.7 million from $48.2 million in Q1 -2023 to $40.5 million in Q1 -2024 largely
due to lower taxable earnings in Q1-2024 compared to Q1-2023.