ENDEAVOUR REPORTS Q2-2023 RESULTS 2023 guidance on track
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR REPORTS Q2-2023 RESULTS
2023 guidance on track • $100m dividend declared for H1-2023 • Growth projects on budget & on schedule
OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations unless otherwise specified)
• Q2-2023 production of 268koz at an AISC of $1,000/oz; H1-2023 production of 511koz at an AISC of $978/oz
• On track to achieve FY-2023 production guidance of 1,060-1,135koz at an AISC of $895-950/oz
• EBITDA of $273m for Q2-2023, up 62% over Q1-2023; Adjusted EBITDA of $253m for Q2-2023, up 5% over Q1-2023
• Net Earnings of $78m for Q2-2023, compared to a $1m loss in Q1-2023; Adjusted Net Earnings down 17% over Q1-2023
to $54m for Q2-2023
• Operating Cash Flow before WC from all operations of $175m (or $0.71/sh) for Q2-2023, down 28% over Q1-2023
• Healthy financial position at quarter end with low leverage of 0.15x Net Debt / Adj. EBITDA (LTM) despite incurring
$176m of growth capital spend during H1-2023
ROBUST SHAREHOLDER RETURNS
• $100m dividend declared, equivalent to $0.40/sh, for H1-2023; $20m worth of shares repurchased in H1-2023
• Shareholder returns total $757m since first payment in Q1-2021
ORGANIC GROWTH
• Sabodala-Massawa expansion and the Lafigué greenfield project are both on budget, with 75% and 59% of the initial
capital committed respectively, and on schedule for Q2-2024 and Q3-2024 respectively
• Strong Group exploration effort with $51m spent in H1-2023 and FY-2023 guidance increased by $15m to $80m; Tanda-
Iguela FY-2023 drilling programme increased by 157% to 180,000 meters with updated resource scheduled for late 2023
London, 2 August 2023 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“ Endeavour”, the “Group” or the
“Company”) is pleased to announce its operating and financial results for Q2-2023, with highlights provided in Table 1 below.
Table 1: Q2-2023 and H1-2023 Highlights
All amounts in US$ million unless otherwise specified
THREE MONTHS ENDED SIX MONTHS ENDED
30 June
2023
31 March
2023
30 June
2022
30 June
2023
30 June
2022
Δ H1-2023
vs. H2-2022
OPERATING DATA (from continuing operations1)
Gold Production, koz 268 243 292 511 586 (13)%
Gold sold, koz 269 252 289 521 583 (11)%
All-in Sustaining Cost2, $/oz 1,000 955 866 978 828 +18%
Realised Gold Price, $/oz 1,947 1,879 1,835 1,914 1,861 +3%
CASH FLOW (from all operations)
Operating Cash Flow before changes in working capital 175 242 253 417 622 (33)%
Operating Cash Flow before changes in working capital2, $/sh 0.71 0.98 1.02 1.69 2.50 (32)%
Operating Cash Flow 159 206 252 365 554 (34)%
Operating Cash Flow2, $/sh 0.64 0.83 1.01 1.48 2.23 (34)%
PROFITABILITY (from continuing operations1)
Net Earnings/(Loss) Attributable to Shareholders 78 (1) 191 77 119 (35)%
Net Earnings/(Loss), $/sh 0.32 0.00 0.77 0.31 0.48 (35)%
Adj. Net Earnings Attributable to Shareholders2 54 65 109 119 218 (45)%
Adj. Net Earnings2, $/sh 0.22 0.26 0.44 0.48 0.88 (45)%
EBITDA2 273 169 389 441 546 (19)%
Adj. EBITDA2 253 240 295 493 625 (21)%
SHAREHOLDER RETURNS
Shareholder dividends paid — 100 — 100 70 +43%
Share buybacks 9 11 7 20 38 (47)%
ORGANIC GROWTH
Growth capital spend2 104 72 34 176 42 +319%
Exploration spend (from continuing operations1) 30 21 22 51 37 +38%
FINANCIAL POSITION HIGHLIGHTS
Net Debt, (Net Cash)2 171 50 (217) 171 (217) n.a.
Net Debt, (Net Cash) / LTM Trailing adj. EBITDA3 0.15 0.04 (0.14) 0.15 (0.14) n.a.
1
1 Continuing Operations ex cludes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine which was divested on
10 March 2022. 2This is a non-GAAP measure, refer to the non-GAAP Measures section for further details. 3Last Twelve Months (“LTM”) Trailing EBITDA adj
includes EBITDA generated by discontinued operations
Management will host a conference call and webcast today, 2 August 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.
A copy of the Management Report and Financial Statements have been submitted to the National Storage Mechanism. The
documents will shortly be available for inspection on our website and at: https://data.fca.org.uk/#/nsm/
nationalstoragemechanism.
Sebastien de Montessus, President and CEO, commented: “We are pleased with our achievements over the first half of the year.
We have continued to deliver against our strategic objectives, leaving us well positioned to unlock near-term value for all of our
stakeholders.
In line with our strategy of actively managing our portfolio to focus on higher quality assets, we closed the sale of our non-core
Boungou and Wahgnion mines during the period. This focus on quality will be further enhanced by the brownfield expansion of
Sabodala-Massawa and the Lafigué greenfield project, both of which remain on budget and on track to be commissioned next
year, and will deliver significant growth.
Alongside this year’s investments in our organic pipeline, we are pleased to continue to deliver attractive shareholder returns and
have declared a H1-2023 dividend of $100 million, which on an annualized basis represents $25 million more than the minimum
dividend commitment for the year. Looking ahead, our goal is to increase our shareholder returns programme further once our
organic growth projects are complete, to ensure that our efforts to unlock growth benefit all stakeholders.
On the operational front, we are on track to meet our full year guidance for the eleventh consecutive year with our performance
expected to increase into the second half of the year in light of the efforts over the past six months. Our relentless focus on cost
and efficiency improvements has continued to identify optimization opportunities across the portfolio leading to our decision to
move forward with the 37MWp PV solar facility at our Sabodala-Massawa mine, thereby redeploying a portion of the proceeds
obtained from the sale of our non-core mines. This will significantly lower fuel consumption and power costs while reducing
greenhouse gas emissions once commissioned in early 2025.
Looking further ahead, our exploration programme continues to provide a strong platform for organic growth. Further drilling at
last year’s Tanda-Iguela discovery in Côte d’Ivoire has exceeded expectations. With over 95,000 meters already drilling during the
first half of the year, we have decided to increase the full year drill programme to 180,000 meters and remain on track to publish
a resource update later this year.
I’d like to thank our team for their continued strong contributions over the first half of the year and look forward to progressing
our strategy for the remainder of 2023.”
2
OPERATING SUMMARY
• Strong safety performance for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) from continuing operations of
0.06 for the trailing twelve months ending 30 June 2023.
• Following the sale of the Boungou and Wahgnion mines, as announced on the 30 June 2023 and detailed below in the Asset
Divestment of Non-Core Boungou and Wahgnion Mines section, Endeavour updated its 2023 full year production and all in
sustaining cost (“AISC”) guidance to account for the removal of guided production from the Boungou mine of 115 – 125koz at
an AISC of $985 – 1,075/oz and from the Wahgnion mine of 150 – 165koz at an AISC of $1,250 – 1,350/oz. As a result, the full
year 2023 production guidance for continuing operations decreased from 1,325 – 1,425koz to 1,060 – 1,135koz, while AISC
guidance from continuing operations improved by $45/oz to $895 – 950/oz.
• The Group remains on track to achieve its upda ted FY-2023 production guidance from continuing operations, with
performance weighted towards H2-2023 as previously guided.
• Q2-2023 production from continuing operations amounted to 268koz, an increase of 24koz or 10% over Q1-2023 due to
increased production from Houndé and Sabodala-Massawa as higher grade ore was mined and processed, which was
partially offset by a decrease in production at Ity, due to slightly lower grade, throughput and recovery rates, and at Mana
due to the increased focus on underground development. Q2-2023 AISC from continuing operations amounted to $1,000/oz,
an increase of $45/oz or 5% over Q1-2023 due to higher costs at Ity due to the increased use of self-generated power, and at
Mana due to the higher open pit strip ratio and an increased focus on underground development, which was partially offset
by lower costs at Houndé and Sabodala-Massawa.
• H1-2023 production from continuing operations amounted to 511koz, a decrease of 75koz or 13% over H1-2022 due to
decreased production at Houndé and Sabodala-Massawa as an increased focus on stripping activity resulted in lower grade
ore being processed during the period, and at Mana due to an increased focus on underground development with
supplemental ore being sourced from the lower grade Maoula open pit, which was partly offset by increased production at
Ity due to improved throughput and recoveries. H1-2023 AISC from continuing operations amounted to $978/oz, an increase
of $150/oz or 18% over H1-2022 due to higher AISC as a result of the lower production at Houndé, Mana and Sabodala-
Massawa, which was partly offset by improved costs at Ity.
Table 2: Group Production
THREE MONTHS ENDED SIX MONTHS ENDED
All amounts in koz, on a 100% basis
30 June
2023
31 March
2023
30 June
2022
30 June
2023
30 June
2022
Houndé 72 47 87 119 160
Ity 86 91 77 177 149
Mana 31 44 55 75 107
Sabodala-Massawa 79 61 73 140 169
PRODUCTION FROM CONTINUING OPERATIONS1 268 243 292 511 585
Boungou 14 19 27 33 61
Wahgnion 30 39 27 68 55
Karma — — — — 10
GROUP PRODUCTION 311 301 345 612 712
1 Continuing Operations excludes non-core Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine divested on 10 March 2022.
Table 3: Group All-In Sustaining Costs
All amounts in US$/oz
THREE MONTHS ENDED SIX MONTHS ENDED
30 June
2023
31 March
2023
30 June
2022
30 June
2023
30 June
2022
Houndé 1,085 1,154 807 1,113 791
Ity 797 732 895 764 813
Mana 1,481 1,130 905 1,277 953
Sabodala-Massawa 762 787 779 774 666
Corporate G&A 56 56 25 56 37
AISC FROM CONTINUING OPERATIONS1, 2 1,000 955 866 978 828
Boungou 2,147 1,252 1,062 1,639 971
Wahgnion 1,817 1,354 1,788 1,566 1,558
Karma — — — — 1,504
GROUP AISC2 1,136 1,022 954 1,080 908
1 Continuing Operations excludes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine which was divested on
10 March 2022. 2This is a non-GAAP measure, refer to the non-GAAP Measures section for further details
3
• A total sustaining capital expenditure of $49.3 million was incurred in H1-2023, of which $21.6 million has been incurred in
Q2-2023, primarily relat ed to waste development and mining equipment upgrades at Houndé and Sabodala-Massawa. The
FY-2023 sustaining capital expenditure outlook for continuing operations has been reduced from $135.0 million to $110.0
million due to a $15.0 million reduction at Ity due to lower required plant maintenance, and a $10.0 million reduction at
Mana as the ramp up of the new mining contractor at Wona underground is progressing slower than expected.
• A total non-sustaining capital expenditure of $143.3 million was incurred in H1-2023, of which, $60.6 million has been
incurred in Q2-2023, primarily related to pre-stripping activity at Houndé and Sabodala-Massawa, underground development
at Mana and TSF construction, embankment raises and the Recyn project at Ity. The FY-2023 non-sustaining capital
expenditure outlook for continuing operations has been increased from $160.0 million to $210.0 million due to a $40.0
million increase at Ity as its sustained strong performance and above nameplate throughput requires bringing forward and
accelerating the Tailings Storage Facility (“TSF”) embankment raise and the construction of a new TSF. In addition, to further
optimize Ity’s processing plant and support an increase in mill-feed, the construction of the mineral sizer has been launched.
The increase in non-sustaining capital spend also includes $10 million for the construction of the solar power plant at
Sabodala-Massawa, which was recently launched and is expected to be commissioned in early 2025.
• A total growth capital expenditure of $176.3 million was incurred as of H1-2023, of which $104.1 million has been incurred in
Q2-2023, with $37.6 million incurred at Sabodala-Massawa, $53.8 million incurred at Lafigué, $7.9 million incurred for
exploration permits and $4.8 million incurred at the Kalana project. Growth capital expenditure outlook for FY-2023 remains
unchanged at $400.0 million.
ASSET DIVESTMENT OF NON-CORE BOUNGOU AND WAHGNION MINES
• On 30 June 2023, Endeavour closed the sale of its 90% interests in its Boungou and Wahgnion non-core mines in Burkina
Faso to Lilium Mining, a subsidiary of Lilium Capital which is an African and frontier markets focused strategic investment
vehicle led by West African entrepreneurs.
• The total consideration is expected to exceed $300 million and is comprised of upfront and deferred cash considerations and
net smelter return royalties (“NSR”), as detailed below.
– $130 million in the form of a reimbursement of historical shareholder loans.
– $25 million in deferred cash consideration payable in two instalments of $10 million and $15 million by end of Q4-2023
and end of Q1-2024, respectively.
– Deferred cash consideration comprised of 50% of the net free cashflow generated by the Boungou mine until $55 million
has been paid, which is expected to occur by Q4-2024 based on the current gold price environment and mine plan.
– An NSR on Boungou commencing immediately for 4.0% of gold sold. Endeavour expects the NSR on Boungou to generate
approximately $52 million of cash over its life of mine based on current reserves, assuming a gold price of $1,850/oz, with
further exploration upside and potential to convert resources to reserves.
– An NSR on Wahgnion commencing immediately for 4.0% of gold sold. Endeavour expects the NSR on Wahgnion to
generate approximately $41 million of cash over its life of mine based on current reserves, assuming a gold price of
$1,850/oz, with further exploration upside and potential to convert resources to reserves.
4
SHAREHOLDER RETURNS PROGRAMME
• In line with Endeavour’s capital allocation framework, the Company is pleased to continue to deliver attractive shareholder
returns, despite the significant growth capital investments being undertaken this year, by declaring a H1-2023 dividend of
$100 million, or approximately $0.40 per share. On an annualized basis, the H1-2023 dividend represents $25 million more
than the minimum dividend commitment for the year of $175 million. Endeavour’s goal is to increase its shareholder returns
programme once its organic growth projects are completed in 2024, thereby ensuring that its efforts to unlock growth
immediately benefit all its stakeholders.
• Endeavour’s H1-2023 dividend will be paid on 26 September 2023, with an ex-dividend date of 31 August 2023, to
shareholders of record on 1 September 2023. The last day for currency election and DRIP elections will be 5 September 2023.
• In addition, s hareholder returns continued to be supplemented with share buybacks, with $9.2 million or 0.4 million shares
repurchased in Q2-2023 and $20.1 million or 0.8 million shares in H1-2023. Since the commencement of the buyback
programme on 9 April 2021, a total of $257.0 million, or 11.5 million shares have been repurchased as at 30 June 2023.
• As shown in the table below, Endeavour has returned $757.0 million to shareholders in the form of dividends and buybacks
since its shareholder returns programme began in late 2020 (first dividend payment in Q1-2021), inclusive of the H1-2023
dividend, which represents $334.0 million more than its minimum commitment for the period.
Table 4: Actual Shareholder Returns vs. Minimum Commitment
All amounts in US$ million
MINIMUM TARGET
ACTUAL SHAREHOLDER RETURNS SUPPLEMENTAL
SHAREHOLDER
RETURNS
DIVIDENDS
DECLARED
BUYBACKS
COMPLETED
TOTAL
RETURNS
FY-2020 60 60 0 60 —
FY-2021 125 140 138 278 +153
FY-2022 150 200 99 299 +149
H1-2023 88 100 20 120 +32
Total 423 500 257 757 +334
CASH FLOW SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three month periods ended 30 June 2023 ,
31 March 2023, and 30 June 2022, and the six month periods ended 30 June 2023 and 30 June 2022 with accompanying
explanations below.
Table 5: Cash Flow and Net Debt
THREE MONTHS ENDED SIX MONTHS ENDED
All amounts in US$ million unless otherwise specified Notes
30 June
2023
31 March
2023
30 June
2022
30 June
2023
30 June
2022
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital1 161 219 227 380 542
Changes in working capital1 (14) (28) (3) (42) (65)
Cash generated from discontinued operations2 13 15 28 28 77
Cash generated from operating activities [1] 159 206 252 365 554
Cash used in investing activities [2] (214) (200) (145) (415) (238)
Cash generated/(used) in financing activities [3] 83 (156) (25) (73) (73)
Effect of exchange rate changes on cash 7 9 (33) 16 (53)
INCREASE/(DECREASE) IN CASH 35 (141) 50 (107) 191
Cash position at beginning of period 810 951 1,047 951 906
CASH POSITION AT END OF PERIOD 845 810 1,097 845 1,097
1 From continuing operations.
2Discontinued operations includes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine which was divested on
10 March 2022.
NOTES:
1) Operating cash flows decreased by $46.5 million from $205.8 million (or $0.83 per share) in Q1-2023 to $159.3 million (or
$0.64 per share) in Q2-2023 due to higher taxes paid across the portfolio, related to the timing of final tax payments for
the 2022 tax year and provisional payments for the 2023 tax year.
Operating cash flows decreased by $189.1 million from $554.0 million (or $2.23 per share) in H1-2022 to $364.9 million
(or $1.48 per share) in H1-2023 due to lower production, increased operating and exploration costs incurred, and higher
tax payments.
5
Notable variances are summarised below:
• Working capital was an outflow of $14.2 million in Q2-2023, a decrease of $13.8 million over the Q1-2023 outflow of
$28.0 million. The outflow in Q2-2023 was largely driven by an inventories outflow of $20.9 million mainly related to
an increase in stockpile inventories at Sabodala-Massawa, Ity and Houndé and the timing of purchases of supplies at
Mana and Houndé. Trade and other payables were an outflow of $3.8 million in Q2-2023, related to the timing of
payments. This was partially offset by an inflow in prepaid expenses and other of $8.3 million following the realisation
of supplier prepayments at Sabodala-Massawa and trade and other receivables were an inflow of $2.2 million for
Q2-2023 due to a decrease in VAT receivables.
Working capital was an outflow of $42.2 million in H1-2023, a decrease of $22.6 million over the H1-2022 outflow of
$64.8 million. The outflow in Q2-2023 was largely driven by increased outflows in inventory at the Mana and Houndé
mines which was offset by the timing of payments, and in particular minority interest dividend payables and the
realisation of supplier pre-payments at Sabodala-Massawa.
• Gold sales from continuing operations increased from 252koz in Q1-2023 to 269koz in Q2-2023 following increased
production at Houndé and Sabodala-Massawa, partially offset by decreased production at Mana and Ity. Gold sales
were largely in-line with the quarter’s production of 268koz. The realised gold price from continuing operations for
Q2-2023 was $1,943 per ounce compared to $1,902 per ounce for Q1-2023. Including the impact of the Group’s
Revenue Protection Programme, the realised gold price for Q2-2023 was $1,947 per ounce compared to $1,879 per
ounce for Q1-2023.
Gold sales from continuing operations decreased from 583koz in H1-2022 to 521koz in H1-2023, following the lower
production in H1-2023. The realised gold price from continuing operations for H1-2023 was $1,923 per ounce
compared to $1,870 per ounce for H1-2022. Including the impact of the Group’s Revenue Protection Programme, the
realised gold price for H1-2023 was $1,914 per ounce compared to $1,861 per ounce for H1-2022.
• Total cash cost per ounce increased from $792 per ounce in Q1-2023 to $868 per ounce in Q2-2023, primarily related
to higher operating expenses at Ity, Sabodala-Massawa and Mana.
Total cash cost per ounce increased from $709 per ounce in H1-2022 to $831 per ounce in H1-2023 due to lower
production and gold sold and increases in mining unit costs at Houndé, Sabodala-Massawa, and Mana.
• Income taxes paid increased by $79.2 million from $24.4 million in Q1-2023 to $103.6 million in Q2-2023 due to
increased tax payments across the portfolio related to the timing of final tax payments in relation to 2022, in addition
to increased 2023 provisional tax payments due to a higher tax base at Ity following the start of production at Le
Plaque on the Floleu permit, and at Sabodala-Massawa due to the end of the tax holiday on the Massawa license.
Income taxes paid increased by $54.3 million from $73.7 million in H1-2022 to $128.0 million in H1-2023 due largely
to the increases in FY-2023 provisional tax payments and higher FY-2022 taxable income due to the higher tax bases
at Ity and Sabodala-Massawa as detailed above.
2) Cashflows used in investing activities increased by $14.1 million from $200.3 million in Q1-2023 to $214.4 million in
Q2-2023 as growth capital spend at the Sabodala-Massawa expansion and the Lafigué development project accelerated.
Cashflows used in investing activit ies at quarter end for the divestment of the non-core Boungou and Wahgnion mines,
net of cash disposed at the assets, amounted to $3.6 million.
Cashflows used in investing activities increased by $176.3 million from $238.4 million in H1-2022 to $414.7 million in
H1-2023 largely due to the increases in growth capital incurred at the Sabodala-Massawa expansion, which was launched
in Q2-2022, and the Lafigué development project, which was launched in Q4-2022.
• Sustaining capital from continuing operations decreased from $27.7 million in Q1-2023 to $21.6 million in Q2-2023
due to decreased sustaining capital expenditure at Sabodala-Massawa, Houndé and Mana, partially offset by
increased sustaining capital expenditure at Ity. Sustaining capital from discontinued operations increased from $5.6
million in Q1-2023 to $11.5 million in Q2-2023 due to increased waste stripping activities at the divested non-core
Boungou and Wahgnion mines.
Sustaining capital from continuing operations increased from $48.4 million in H1-2022 to $49.3 million in H1-2023
largely due to increased sustaining capital expenditure at Houndé, related to waste development activities at the
Vindaloo and Kari Pump pits. Sustaining capital from discontinued operations decreased from $20.4 million in
H1-2022 to $17.1 million in H1-2023 due to a relative decrease in waste stripping activities and mine fleet rebuilds at
the divested non-core Boungou and Wahgnion mines.
• Non-sustaining capital from continuing operations decreased from $82.7 million in Q1-2023 to $60.6 million in
Q2-2023, largely due to a decrease at Houndé due to the completion of pre-stripping activities at the Kari Pump pit
during the quarter and a decrease at Ity related to lower spending on the Recyn project as it nears completion, which
were partially offset by increased spending at Sabodala-Massawa related to capitalised drilling across the Niakifiri
East, Delya and Bambaraya deposits, and at Mana related to underground development. Non-sustaining capital from
discontinued operations increased from $11.8 million in Q1-2023 to $14.6 million in Q2-2023 due to increased waste
stripping activities at the divested non-core Boungou and Wahgnion mines.
Non-sustaining capital from continuing operations increased from $66.2 million in H1-2022 to $143.3 million in
H1-2023 due to increased non-sustaining capital expenditure at Ity, related to ongoing construction of the Recyn
project, and due to increased pre-stripping activities across Sabodala-Massawa and Houndé, increased underground
development at Mana, and ongoing TSF raises across Houndé, Ity and Mana. Non-sustaining capital from discontinued
operations decreased from $28.9 million in H1-2022 to $26.4 million in H1-2023 due to the prior period including a
6
TSF raise and resettlement costs at Wahgnion, partially offset by increased waste stripping activities across the
divested non-core Boungou and Wahgnion mines in H1-2023.
• Growth capital increased from $72.2 million in Q1-2023 to $104.1 million in Q2-2023, as construction activities at the
Sabodala-Massawa expansion and the Lafigué project accelerated. Growth capital expenditure during the quarter also
included $7.9 million for exploration permits and $4.8 million for the Kalana project.
Growth capital increased from $42.2 million in H1-2022 to $176.3 million million in H1-2023 largely due to the ramp-
up of construction activities at the Sabodala-Massawa expansion, which was launched in Q2-2022, and the launch of
construction at the Lafigué development project, which was launched in Q4-2022.
3) Cash flows used in financing activities decreased by $238.4 million from an outflow of $155.7 million in Q1-2023 to an
inflow of $82.7 million in Q2-2023 as the company drew down $155.0 million on the Company’s $645.0 million RCF to
manage short term offshore cash flow requirements during the quarter. Financing cash outflows in Q2-2023 included
cash settlement of call-rights of $28.5 million that was paid to Taurus in lieu of the call options received as part of the
Teranga transaction, payments of financing and other fees of $18.6 million related to the coupon payments for the senior
notes and the RCF , payments for the acquisition of the Company’s own shares through its share buyback programme of
$9.2 million, payments for the settlement of shares of $6.1 million, repayment of finance and lease obligations of $5.3
million, settlement of the contingent consideration of $3.7 million and lease payments at the divested Boungou and
Wahgnion mines of $0.9 million.
Cash flows used in financing activities were outflow of $73.0 million in H1-2023 which was largely consistent with the
prior period.
7
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three month periods ended 30 June 2023, 31
March 2023, and 30 June 2022 and the six month periods ended 30 June 2023 and 30 June 2022 with accompanying
explanations below.
Table 6: Earnings from Continuing Operations
THREE MONTHS ENDED SIX MONTHS ENDED
All amounts in US$ million unless otherwise specified Notes
30 June
2023
31 March
2023
30 June
2022
30 June
2023
30 June
2022
Revenue [4] 524 481 532 1,005 1,095
Operating expenses [5] (202) (171) (193) (373) (358)
Depreciation and depletion [5] (100) (102) (108) (201) (222)
Royalties [6] (32) (30) (32) (62) (65)
Earnings from continuing operations 191 178 200 369 451
Corporate costs [7] (14) (14) (7) (27) (21)
Impairment of mining interests and goodwill [8] (15) — — (15) —
Share-based compensation (8) (8) (3) (17) (11)
Other expense 3 (5) (12) (3) (14)
Exploration costs [9] (15) (13) (8) (27) (15)
Earnings from operations 142 139 170 281 390
Gain/(loss) on financial instruments [10] 31 (72) 111 (41) (66)
Finance costs (18) (15) (15) (33) (30)
Earnings before taxes 155 52 266 207 294
Current income tax expense [11] (91) (48) (71) (140) (135)
Deferred income tax recovery [12] 37 12 11 49 (4)
Net comprehensive earnings from continuing operations [13] 101 15 206 117 154
Add-back adjustments [14] (22) 66 (75) 44 108
Adjusted net earnings from continuing operations 79 82 131 161 262
Portion attributable to non-controlling interests [15] 26 17 22 42 44
Adjusted net earnings from continuing operations attributable to
shareholders of the Company [16] 54 65 109 119 218
Adjusted net earnings per share from continuing operations 0.22 0.26 0.44 0.48 0.88
NOTES:
4) Revenue increased by $42.9 million from $481.2 million in Q1-2023 to $524.1 million in Q2-2023 due to a higher realised
gold price in Q2-2023 of $1,943 per ounce compared to $1,902 per ounce for Q1-2023, exclusive of the Company’s
Revenue Protection Programme, and an increase in gold sales from 252koz in Q1-2023 to 269koz in Q2-2023, following
higher production at the Houndé and Sabodala-Massawa mines.
Revenue decreased by $89.6 million from $1,094.9 million in H1-2022 to $1,005.3 million in H1-2023 due to a decrease in
gold sales from 583koz in H1-2022 to 521koz in H1-2023 lower gold sales volumes, partly offset by a higher realised gold
price for H1-2023 of $1,923 per ounce compared to $1,870 per ounce for H1-2022.
5) Operating expenses increased by $30.4 million from $171.4 million in Q1-2023 to $201.8 million in Q2-2023 largely due to
increased mining costs at Houndé and Sabodala-Massawa as more waste was expensed during the quarter following the
restart of ore mining at Kari Pump and the start of mining at Niakifiri East, in addition to higher processing costs across
the group as higher tonnes were milled during the quarter . Depreciation and depl etion of $99.5 million in Q2-2023 was
largely in line with the prior quarter as increased depletion at Houndé and Sabodala-Massawa due to increased quarterly
production was largely offset by decreased depletion at Ity and Mana due to lower quarterly production.
Operating expenses increased by $15.2 million from $358.0 million in H1-2022 to $373.2 million in H1-2023 largely due to
increased volumes mined and processed at Ity and Houndé and increases in fuel and key consumable costs as well as
foreign exchange impacts associated with the Euro strengthening against the dollar. Depreciation and depletion
decreased by $20.3 million from $221.7 million in H1-2022 to $201.4 million in H1-2023 due to lower production volumes
at Houndé, Sabodala-Massawa, and Mana.
6) Royalties increased from $29.7 million in Q1-2023 to $31.8 million in Q2-2023 due to higher gold sales.
Royalties decreased from $64.7 million in H1-2022 to $61.5 million in H1-2023 due to lower gold sales.
7) Corporate costs of $14.0 million in Q2-2023 were largely consistent with the prior period.
8