ENDEAVOUR REPORTS Q1-RESULTS FY-2023 production and AISC guidance on track
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR REPORTS Q1-RESULTS
FY-2023 production and AISC guidance on track • Growth projects on budget and on schedule for 2024
OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)
• Q1-2023 production of 301koz at an AISC of $1,022/oz; On track to achieve full year 2023 guidance with performance
weighted towards H2-2023
• EBITDA of $206m for Q1-2023; Adjusted EBITDA of $279m for Q1-2023, down 3% over Q4-2022
• Net Earnings of $4m for Q1-2023; Adjusted Net Earnings of $70m (or $0.28/sh) for Q1-2023, up 8% over Q4-2022
• Operating Cash Flow before changes in WC of $242m (or $0.98/sh) for Q1-2023, down 14% over Q4-2022
• Strong financial position at quarter end with $810m cash position in addition to $285m in available sources of financing
• Reimbursed in cash the $330m principal amount of its convertible bond in Q1-2023 to minimise shareholder dilution
ROBUST SHAREHOLDER RETURNS
• H2-2022 dividend of $100m was paid in Q1-2023, amounting to $400m paid since early 2021
• Share buybacks continue to supplement shareholder returns with $11m or 0.4 million shares repurchased in Q1-2023,
amounting to $244m or 11.1 million shares repurchased since early 2021
ORGANIC GROWTH
• Sabodala-Massawa expansion and the Lafigué greenfield project are both on budget, with 70% and 46% of the initial
capital committed respectively, and on schedule for Q2-2024 and Q3-2024 respectively
• Strong exploration effort with $22m spent in Q1-2023 out of FY-2023 exploration guidance of $70m; updated resource
for Tanda-Iguela greenfield discovery expected to be published in H2-2023
London, 4 May 2023 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”)
is pleased to announce its operating and financial results for Q1-2023, with highlights provided in Table 1 below.
Table 1: Highlights for Continuing Operations1
All amounts in US$ million unless otherwise specified
THREE MONTHS ENDED
31 March
2023
31 December
2022
31 March
2022
Δ Q1-2023 vs.
Q4-2022
OPERATING DATA
Gold Production, koz 301 355 357 (15)%
Gold sold, koz 309 352 359 (12)%
All-in Sustaining Cost2, $/oz 1,022 954 848 +7%
Realised Gold Price, $/oz 1,886 1,758 1,891 +7%
CASH FLOW
Operating Cash Flow before Changes in WC 242 281 368 (14)%
Operating Cash Flow before Changes in WC2, $/sh 0.98 1.14 1.48 (14)%
Operating Cash Flow 206 311 297 (34)%
Operating Cash Flow2, $/sh 0.83 1.26 1.20 (34)%
PROFITABILITY
Net Earnings/(Loss) Attributable to Shareholders 4 (256) (57) n.a.
Net Earnings/(Loss), $/sh 0.02 (1.04) (0.23) n.a.
Adj. Net Earnings Attributable to Shareholders2 70 65 126 +8%
Adj. Net Earnings2, $/sh 0.28 0.26 0.51 +8%
EBITDA2 206 (110) 218 n.a.
Adj. EBITDA2 279 288 391 (3)%
SHAREHOLDER RETURNS
Shareholder dividends paid 100 — 70 n.a.
Share buybacks 11 24 31 (54)%
Total Shareholder Returns 111 24 101 +363%
ORGANIC GROWTH
Growth capital spend2 72 55 8 +31%
FINANCIAL POSITION HIGHLIGHTS
Cash 810 951 1,047 (15)%
Principal debt (860) (830) (880) +4%
Net Cash, (Net Debt)2 (50) 121 167 n.a.
1 Continuing Operations excludes the Karma mine which was divested on 10 March 2022. 2This is a non-GAAP measure, see non-GAAP section of the
Management Report.
1
Management will host a conference call and webcast today, 4 May 2023, 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.
Sebastien de Montessus, President and CEO, commented: “During the quarter, we continued to deliver in line with our
expectations and we remain well positioned to unlock near-term value for all of our stakeholders.
We began the year with momentum and financial strength, positioning us to deliver against this year’s capital allocation
priorities of funding growth while maintaining our attractive shareholder returns programme, which has already returned $644
million since its launch in 2021. Furthermore, to minimise shareholder dilution we settled the principal of our $330 million
convertible notes, in cash during the quarter.
On the operational front, we are tracking in line with our guided trend, as we expect production weighted towards the second
half of the year due to mine sequencing across the group.
On the growth front, we are pleased to report that the Sabodala-Massawa expansion and the Lafigué greenfield build are
progressing well, with both projects on time and on budget with first production expected in Q2 and Q3 2024 respectively. Our
goal is to then increase our shareholder returns once these organic growth projects are completed.
Our exploration programme continues to provide us with a strong platform for future growth. Further drilling at last year’s
Tanda-Iguela discovery in Côte d’Ivoire continues to demonstrate its potential to become another cornerstone asset and we will
provide a resource update later this year.
We look forward to progressing our strategy this year to further strengthen our business and benefit all our stakeholders.”
2
OPERATING SUMMARY
• Strong safety performance for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) of 0.02 for the trailing twelve
months ending 31 March 2023.
• The Group remains on track to achieve its FY-2023 production guidance of 1,325 - 1,425koz at an AISC of $940 - 995/oz, with
performance weighted towards H2-2023 as previously guided.
• Q1-2023 production from continuing operations amounted to 301koz, a decrease of 54koz or 15% over Q4-2022 due to
FY-2023 production being weighted towards H2-2023. The decrease was mainly due to lower production at Sabodala-
Massawa (down 42koz) due to the mine sequence as lower grades were processed from the Sabodala pit as the focus was on
waste stripping to prepare for in-pit tailings deposition and development of the new Massawa North Zone satellite pit.
Houndé and Boungou had lower production as a result of a focus on stripping activity to open up higher grade mining areas
for later in the year. Mana had slightly lower production due to the focus on underground development to increase access to
underground production stopes later in the year. This was partially offset by higher production at Ity and Wahgnion in line
with the mine sequence.
• Q1-2023 AISC from continuing operations amounted to $1,022/oz, an increase of $68/oz or 7% over Q4-2022 due to lower
gold sales volumes in addition to higher costs across several mines. Costs increased at Boungou and Houndé as a result of
mining lower-grade zones at higher strip ratios as the mine plan focussed on stripping activity. Costs were higher at
Sabodala-Massawa due to the above mentioned lower grades processed and higher strip ratio. At Mana, higher costs were
the result of sequencing lower grade ore from the underground development to prioritise the advancement of the third
decline into Wona underground. These AISC increases were partially offset by lower AISC at Ity and Wahgnion due to lower
processing costs as a result of the benefit of softer oxide ore representing a larger proportion of the mill feed.
Table 2: Group Production
THREE MONTHS ENDED
All amounts in koz, on a 100% basis
31 March
2023
31 December
2022
31 March
2022 2023 FULL-YEAR GUIDANCE
Boungou 19 26 34 115 — 125
Houndé 47 63 73 270 — 285
Ity 91 82 72 285 — 300
Mana 44 46 53 190 — 210
Sabodala-Massawa 61 103 96 315 — 340
Wahgnion 39 36 29 150 — 165
PRODUCTION FROM CONTINUING OPERATIONS 301 355 357 1,325 — 1,425
Table 3: Group All-In Sustaining Costs
All amounts in US$/oz
THREE MONTHS ENDED
31 March
2023
31 December
2022
31 March
2022 2023 FULL-YEAR GUIDANCE
Boungou 1,252 1,118 901 985 — 1,075
Houndé 1,154 969 771 850 — 925
Ity 732 847 728 840 — 915
Mana 1,130 999 1,000 950 — 1,050
Sabodala-Massawa 787 661 578 760 — 810
Wahgnion 1,354 1,376 1,351 1,250 — 1,350
Corporate G&A 46 43 40 35
AISC FROM CONTINUING OPERATIONS 1,022 954 848 940 — 995
• Sustaining capital expenditure outlook for FY-2023 remains unchanged at $165.0 million, of which $33.3 million has been
incurred in Q1-2023. Likewise, non-sustaining capital expenditure outlook for FY-2023 remains unchanged at $205.0 million,
of which $94.5 million has been incurred in Q1-2023.
• Growth capital expenditure outlook for FY-2023 remains unchanged at $400.0 million. In Q1-2023, $72.2 million was
incurred, of which $26.4 million was incurred at Sabodala-Massawa , $43.0 million was incurred at Lafigué and $2.8 million
was incurred at the Kalana project.
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SHAREHOLDER RETURNS PROGRAMME
• Endeavour’s shareholder returns programme is composed of a minimum progressive dividend that may be supplemented
with additional dividends and share buybacks, providing the prevailing gold price remains above $1,500/oz, and that
Endeavour’s leverage remains below 0.5x Net Debt / adjusted EBITDA. The minimum dividend commitment for FY-2023 was
set at $175.0 million.
• As previously announced, Endeavour’s FY-2022 dividend amounted to $200.0 million or approximately $0.81 per share,
which represented $50.0 million or 33% more than the minimum dividend commitment for the year. Endeavour paid its
H2-2022 dividend of $100.0 million or $0.40 per share on 28 March 2023.
• Shareholder returns continued to be supplemented with share buybacks, with $10.9 million or 0.4 million shares
repurchased in Q1-2023. Since the commencement of the buyback programme on 9 April 2021, a total of $243.5 million, or
11.1 million shares have been repurchased as at 31 March 2023.
• Endeavour renewed its Normal Course Issuer Bid (“NCIB”) for its share buyback programme on 22 March 2023, and is
entitled to repurchase up to 5% of its total issued and outstanding shares or 12,387,688 shares, during the 12 month period
of the programme, and up to 25% of the average daily trading volume or 134,817 shares during each trading day, excluding
purchases made in accordance with the block purchase exemptions under applicable TSX policies. All ordinary shares
repurchased under the share repurchase programme will be cancelled.
• Since the launch of the Company’s shareholder returns programme in early 2021, a cumulative $643.5 million has been
delivered to shareholders, comprised of $400.0 million in dividends and $243.5 million in share buybacks.
CASH FLOW AND LIQUIDITY SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three month periods ended 31 March 2023,
31 December 2022, and 31 March 2022, with accompanying explanations below.
Table 4: Cash Flow and Net Debt
THREE MONTHS ENDED
All amounts in US$ million unless otherwise specified
31 March
2023
31 December
2022
31 March
2022
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital from continuing operations 242 281 368
Changes in working capital (37) 30 (70)
Cash generated from discontinued operations — — 5
Cash generated from operating activities [1] 206 311 302
Cash used in investing activities [2] (200) (172) (94)
Cash used in financing activities [3] (156) (54) (48)
Effect of exchange rate changes on cash 9 34 (20)
(DECREASE)/INCREASE IN CASH (141) 119 141
Cash position at beginning of period 951 833 906
CASH POSITION AT END OF PERIOD [4] 810 951 1,047
Principal amount of Senior Notes (500) (500) (500)
Principal amount of Convertible Notes — (330) (330)
Drawn portion of Revolving Credit Facility (360) — (50)
NET CASH/(NET DEBT) [5] (50) 121 167
Trailing twelve month adjusted EBITDA2 1,173 1,284 1,464
(Net debt) / Adjusted EBITDA (LTM) ratio1 [5] (0.04)x 0.09x 0.11x
1Net 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.
NOTES:
1) Operating cash flows decreased by $105.2 million from $310.8 million (or $1.26 per share) in Q4-2022 to $205.6 million
(or $0.83 per share) in Q1-2023 largely due to lower gold sales and an outflow in working capital, which compares to an
inflow in the prior quarter.
Notable variances are summarised below:
• Working capital was an outflow of $36.6 million in Q1-2023, a decrease of $66.6 million over Q4-2022, largely due to
increases in outflows across trade and other payables, inventories, trade and other receivables and prepaid expenses.
Trade and other payables were an outflow of $6.7 million in Q1-2023 and primarily related to a decrease in bonus
4
accruals as well as a decrease in supplier payables at Boungou, Houndé and Ity. Inventories were an outflow of $9.1
million in Q1-2023 related to an increase in stockpiles at Sabodala-Massawa. Trade and other receivables were an
outflow of $15.7 million for Q1-2023 driven by a $7.3 million gold sales rece ivable at Mana due to the outstanding
balance pending from gold sales to the government of Burkina Faso. Payment of the outstanding balance has been
delayed to Q2-2023 due to the redrafting of the sales contract to include the Ministry of Treasury as the counterparty.
An increase in VAT receivables a t Houndé and Mana also contributed to the outflow in trade and other receivables.
Prepaid expenses and other were an outflow of $5.1 million in Q1-2023 following increased prepayments at Houndé.
• Gold sales from continuing operations decreased from 352koz in Q4-2022 to 309koz in Q1-2023 due primarily to
decreases in gold sales at Houndé, Sabodala-Massawa and Boungou as a result of lower production, partially offset by
an increase at Ity. Gold sales were slightly ahead of the quarter’s production of 301koz due to the timing of gold sales.
The realised gold price from continuing operations for Q1-2023 was $1,904 per ounce compared to $1,742 per ounce
for Q4-2022. Including the impact of the Group’s Revenue Protection Programme, the realised gold price for Q1-2023
was $1,886 per ounce compared to $1,758 per ounce for Q4-2022.
• Total cash cost per ounce increased from $829 per ounce in Q4-2022 to $871 per ounce in Q1-2023, primarily related
to slightly higher operating expenses due to the focus on stripping activity at Boungou and Houndé, stockpiling
refractory ore and processing lower grades at Sabodala-Massawa, and the focus on development at Mana.
• Income taxes paid increased by $24.9 million from $14.8 million in Q4-2022 to $39.7 million in Q1-2023, largely due to
increased tax payments at Boungou and Sabodala-Massawa due to the timing of payments, which was partially offset
by the impact of lower gold sales and higher unit operating costs at Boungou, Sabodala-Massawa, Mana and
Wahgnion on taxable income.
2) Cashflows used in investing activities increased by $28.1 million from $172.2 million in Q4-2022 to $200.3 million in
Q1-2023 largely due to increased growth capital spend at the Sabodala-Massawa expansion and the Lafigué development
project.
• Sustaining capital from continuing operations increased from $29.6 million in Q4-2022 to $33.3 million in Q1-2023
primarily due to increased sustaining capital spend at Wahgnion and Sabodala-Massawa due to planned increased
stripping activity and at Mana due to the increased focus on development, which were partially offset by decreased
sustaining capital at Boungou, Ity and Houndé.
• Non-sustaining capital from continuing operations increased from $77.1 million in Q4-2022 to $94.5 million in
Q1-2023, largely due to an increase at Ity related to the ongoing construction of the Recyn project and increased pre-
stripping activities at Houndé and Sabodala-Massawa, which were partially offset by reduced spend at Wahgnion as
the prior period had incurred set-up costs for the Samavogo deposit.
• Growth capital increased from $54.6 million in Q4-2022 to $72.2 million in Q1-2023, as construction activities at the
Sabodala-Massawa expansion and the Lafigué project accelerated. Additionally, $2.8 million was incurred for the
Kalana project.
3) Cash flows used in financing activities increased by $102.2 million from $53.5 million in Q4-2022 to $155.7 million in
Q1-2023. Financing activities for Q1-2023 consisted of a repayment of long-term debt of $330.0 million, dividends paid to
shareholders of $101.4 million, a $46.3 million payment made to Barrick Gold for Teranga Gold’s acquisition of Massawa
which had a 3-year look-back gold price linked contingent payment component that amounted to $50.0 million (the
remaining $3.7 million payment was made in April 2023), pay ments for the settlement of shares of $12.3 million,
payments for the acquisition of the Company’s own shares through its share buyback programme of $10.9 million,
payments of financing and other fees of $9.0 million, dividends paid to minority interests of $6.7 million and repayment
of finance and lease obligations of $5.0 million. This was partially offset by proceeds from the drawdown of the
Company’s revolving credit facility (“RCF”) of $360.0 million and proceeds from the exercise of options and warrants of
$5.9 million.
• Endeavour settled its $330.0 million 3.00% Convertible Senior Notes (“Convertible Notes”) through a combination
settlement, at maturity on 15 February 2023. In order to minimise dilution to equity holders the Company elected to
settle the principal $330.0 million in cash and the in-the-money option in shares, for 835,254 shares (worth $19.2
million and equivalent to ~0.3% of shares outstanding at the time of issuance). The Convertible Notes were a low cost
financing solution which had a 3.00% coupon and an implicit cost of capital of 4.11% over the life of the notes after
taking into account the value of the in-the-money option.
• The Company upsized its RCF from $575.0 million to $645.0 million and drew down $360.0 million on the facility
during the quarter to manage short-term offshore cash outflows including the settlement of its $330.0 million
Convertible Notes, $101.4 million in shareholder dividends and $46.3 million payment to Barrick for Teranga Gold’s
acquisition of Massawa as mentioned above.
4) At period-end, Endeavour’s liquidity remained strong with $809.7 million of cash on hand and $285.0 million undrawn
under its RCF.
5) Endeavour’s net debt position has decreased by $171.4 million during Q1-2023, ending the period with $50.3 million of
net debt, primarily due to the timing of payments for the companies two development projects, the H2-2022 dividend
payment and the above mentioned $46.3 million contingent payment made to Barrick Gold.
5
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three month periods ended 31 March 2023,
31 December 2022, and 31 March 2022 with accompanying explanations below.
Table 5: Earnings from Continuing Operations
THREE MONTHS ENDED
All amounts in US$ million unless otherwise specified 31 March
2023
31 December
2022
31 March
2022
Revenue [6] 591 617 689
Operating expenses [7] (234) (250) (220)
Depreciation and depletion [7] (130) (173) (152)
Royalties [8] (37) (39) (41)
Earnings from mine operations 189 156 276
Corporate costs [9] (14) (15) (14)
Impairment of mining interests and goodwill — (360) —
Share-based compensation (8) (18) (8)
Other expense (6) (29) (2)
Exploration costs (13) (7) (7)
Earnings from operations 149 (273) 245
Loss on financial instruments [10] (73) (10) (179)
Finance costs (16) (16) (15)
Earnings before taxes 60 (299) 51
Current income tax expense [11] (50) (57) (75)
Deferred income tax recovery [12] 10 89 (11)
Net comprehensive earnings from continuing operations [13] 20 (267) (35)
Add-back adjustments [14] 67 361 186
Adjusted net earnings from continuing operations 87 93 150
Portion attributable to non-controlling interests [15] 18 29 24
Adjusted net earnings from continuing operations attributable to shareholders
of the Company [16] 70 64 126
Adjusted net earnings per share from continuing operations 0.28 0.26 0.51
NOTES:
6) Revenue decreased by $26.4 million from $617.0 million in Q4-2022 to $590.6 million in Q1-2023 mainly due to a
decrease in gold sales from 352koz in Q4-2023 to 309koz in Q1-2023, following lower production at Houndé, Sabodala-
Massawa, Mana and Boungou in the quarter, partially offset by a higher realised gold price in Q1-2023 of $1,904 per
ounce compared to $1,742 per ounce for Q4-2022, exclusive of the Company’s Revenue Protection Programme.
7) Operating expenses decreased by $15.2 million from $249.5 million in Q4-2022 to $234.3 million in Q1-2023 due to lower
group production and lower operating costs at Boungou, Houndé, Ity, Sabodala-Massawa and Wahgnion, which was
partially offset by higher operating costs at Mana due to the focus on development. Depreciation and depl etion
decreased by $42.6 million from $173.0 million in Q4-2023 to $130.4 million in Q1-2023 mainly due to decreased
depletion at Sabodala-Massawa and Houndé as a result of lower production, and a lower depreciable asset base
following the impairments recognised at Wahgnion and Boungou in Q4-2022.
8) Royalties slightly decreased from $38.5 million in Q4-2022 to $36.9 million in Q1-2023 due to the lower gold sales.
9) Corporate costs decreased from $14.5 million in Q4-2022 to $13.5 million in Q1-2023 as the prior quarter included
increased professional fees and seasonally higher employee costs.
10) The loss on financial instruments increased from $10.4 million in Q4-2022 to $72.9 million in Q1-2023 due to the
unrealised losses on the gold collars and forward sales of $40.6 million, the fair value loss on the conversion option of the
Convertible Notes of $14.9 million which were settled on 15 February 2023, the realised losses on the gold collars and
forward contracts of $5.8 million, foreign exchange losses of $5.8 million, a change in fair value of call rights of $4.3
million, an unrealised loss on foreign currency contracts of $1.1 million, other financial instrument losses of $1.1 million,
and a loss on the change in fair value of contingent considerations of $0.6 million. These losses were partially offset by a
realised gain on foreign currency contracts of $1.3 million.
6
As previously disclosed, in order to increase cash flow visibility during its construction phase, Endeavour extended its
Revenue Protection Programme, using a combination of zero premium gold collars and forward sales contracts, to cover
a portion of its 2024 production, in addition to the 2023 production for which the Company already had gold collars and
forward sales contracts in place.
• During Q1-2023, 30koz were settled into forward sales contracts for an average gold price of $1,828/oz. For the
remainder of FY-2023, approximately 225koz (75koz per quarter) are expected to be delivered into a collar with a call
price of $2,100/oz and a put price of $1,750/oz. In addition, approximately 90koz (30koz per quarter) are scheduled to
be settled in forward sales contracts at an average gold price of $1,828/oz.
• For FY-2024, approximately 450koz are expected to be delivered into a collar with a call price of $2,400/oz and a put
price of $1,807/oz. In addition, during H1-2024, a total of approximately 70koz (approximately 35koz per quarter) are
expected to be settled in forward sales contracts with an average gold price of $2,033/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 its Sabodala-Massawa expansion and Lafigué growth projects.
The Group has entered into various foreign exchange forward contracts across both the Euro and the Australian Dollar
over 2023 and 2024.
• The total outstanding notional forward contracted quantum is approximately €90.9 million at a blended rate of 0.98
EUR:USD split over 2023 and 2024 at approximately 86% and 14% respectively and approximately AU$42.4 million at
a blended rate of 0.69 AUD:USD split approximately 87% and 13% respectively over the same period.
• During Q1-2023, €23.2 million was delivered into forward contracts at a blended rate of 0.99 EUR:USD and AU$10.4
million was delivered into forward contracts at a blended rate of 0.69 AUD:USD
11) Current income tax expense decreased by $7.1 million from $56.9 million in Q4-2022 to $49.8 million in Q1-2023 largely
due to a decrease in taxable profit.
12) Deferred income tax recovery decreased by $78.6 million from $88.8 million in Q4-2022 to $10.2 million in Q1-2023, as
the higher deferred income tax recovery in Q4-2022 was mainly due to the reversal of deferred tax liabilities recognised
at the Boungou and Wahgnion mines resulting from impairments recognised in Q4-2022. For Q1-2023 deferred income
tax recoveries were recognised mainly due to a depreciation of the United States dollar against the Euro resulting in a
lower deferred tax liability, and a true up reflecting increased deferred tax asset values at Ity resulting from the
commencement of mining at the Le Plaque pit on the Floleu permit.
13) Net comprehensive earnings from continuing operations increased by $287.8 million from a loss of $267.4 million in
Q4-2022 to earnings of $20.4 million in Q1-2023. The increase in earnings is largely driven by an impairment charge of
$360.3 million incurred in the prior quarter related to impairments taken at the Boungou and Wahgnion mines, and
higher earnings from mine operations, partially offset by higher unrealised losses on financial instruments in Q1-2023.
14) For Q1-2023, adjustments included a loss on financial instruments of $67.1 million largely related to the unrealised loss
on forward sales and collars and a loss on other expenses of $5.7 million, which was partially offset by a gain on non-cash,
tax and other adjustments of $5.8 million that mainly relate to the impact of the foreign exchange remeasurement of
deferred tax balance.
15) Adjusted net earnings from continuing operations attributable to non-controlling interests decreased to $17.5 million in
Q1-2023 from $28.8 million in Q4-2022 despite higher earnings from mining operations, due to the impairment add-back
in the prior quarter resulting in higher earnings attributable to non-controlling interests.
16) Adjusted net earnings attributable to shareholders for continuing operations increased by $5.4 million to $69.9 million (or
$0.28 per share) in Q1-2023 compared to $64.5 million (or $0.26 per share) in Q4-2022 due to higher earnings from mine
operations, lower tax expenses and lower expenses attributable to minority interests, which was partially offset by higher
exploration costs.
7
OPERATING ACTIVITIES BY MINE
Boungou Gold Mine, Burkina Faso
Table 6: Boungou Performance Indicators
For The Period Ended Q1-2023 Q4-2022 Q1-2022
Tonnes ore mined, kt 196 256 252
Total tonnes mined, kt 3,059 3,497 6,334
Strip ratio (incl. waste cap) 14.61 12.66 24.13
Tonnes milled, kt 265 295 349
Grade, g/t 2.55 2.85 3.03
Recovery rate, % 92 93 95
PRODUCTION, KOZ 19 26 34
Total cash cost/oz 1,207 1,054 848
AISC/OZ 1,252 1,118 901
Q1-2023 vs Q4-2022 Insights
• Production decreased from 26koz in Q4-2022 to 19koz in Q1-2023 due to lower tonnes of ore milled at lower average
processed grades and lower recoveries.
– Total tonnes mined and tonnes of ore mined decreased as mining activities continued to be impacted by the previously
disclosed supply chain delays in getting fuel and consumables to site. Ore mining was primarily focused on the West pit
phase 3 while pre-stripping activities were undertaken in the West Flank pit.
– Tonnes milled decreased in line with the lower mining performance
– Processed grades and recoveries decreased as lower grade stockpiles were used to supplement the mill feed.
• AISC increased from $1,118/oz in Q4-2022 to $1,252/oz in Q1-2023 largely due to the decrease in the volume of gold sold
and an increase in unit mining and processing costs due to operational downtime.
• Sustaining capital expenditure amounted to $0.9 million in Q1-2023 primarily related to plant equipment and capitalised
mining fleet lease costs.
• Non-sustaining capital expenditure amounted to $6.2 million in Q1-2023 primarily related to pre-stripping activity at the
West Flank pit.
Q1-2023 vs Q1-2022 Insights
• Q1-2023 production decreased from 34koz in Q1-2022 to 19koz in Q1-2023 as a result of the reduced availability of high
grade ore due to the mine sequence and lower mined volumes as activities continued to be impacted by the previously
disclosed supply chain delays. AISC increased from $901/oz in Q1-2022 to $1,252/oz in Q1-2023 due to lower gold sold with
lower grades processed and an increase in unit mining and processing costs due to increases in fuel and consumable costs.
2023 Outlook
• Boungou is expected to produce between 115 - 125koz in FY-2023 at an AISC of between $985 - 1,075/oz.
• In Q2-2023, mining activities are expected to focus on continued waste stripping at the West Flank pit and ore mining in the
West pit phase 3. Grades are expected to improve progressively through the year as stripping activity is expected to improve
access to higher grade ore in the West Flank pit. As previously guided, production is expected to be weighted to H2-2023
with increased volumes of higher-grade ore expected to be sourced from the West Flank pit and mill throughput expected to
increase.
• Sustaining capital expenditure outlook for FY-2023 remains unchanged at approximately $5.0 million, of which $0.9 million
has been incurred to date, and is mainly related to plant maintenance and upgrades to the fuel storage facilities.
• Non-sustaining capital expenditure outlook for FY-2023 remains unchanged at approximately $30.0 million, of which $6.2
million has been incurred to date, and is mainly related to waste stripping activity at the West Flank pit.
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