ENDEAVOUR REPORTS Q3-2023 RESULTS 2023 guidance on track
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR REPORTS Q3-2023 RESULTS
2023 guidance on track • $240m returned to shareholders YTD • Growth projects on budget and on track
OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations unless otherwise specified)
• Strongest quarterly performance this year with 281koz produced in Q3-2023 at an industry-low AISC of $967/oz
• 792koz produced year-to-date at an AISC of $974/oz, on track to meet guidance with stronger Q4-2023 expected
• Net Earnings of $60m (or $0.24/sh) for Q3-2023 and $137m (or $0.55/sh) year-to-date
• Operating Cash Flow of $115m (or $0.47/sh) for Q3-2023 and $453m (or $1.83/sh) year-to-date
• Healthy financial position at quarter end with leverage ratio of 0.40x Net Debt / Adj. EBITDA (LTM) despite incurring
$293m in growth capital spend and delivering $240m in shareholder returns this year
ROBUST SHAREHOLDER RETURNS
• $100m half-year dividend paid in Q3-2023, totalling $200m paid year-to-date
• Share buyback programme continued with $20m worth of shares repurchased in Q3-2023, totalling $40m year-to-date
• Shareholder returns total $777m s i n c e f i r s t p a y m e n t i n Q 1 - 2 0 2 1 , w h i c h r e p r e s e n t s ~ 1 5 % o f c u r r e n t m a r k e t c a p i t a l i z a t i o n
ATTRACTIVE ORGANIC GROWTH
• Sabodala-Massawa expansion and the Lafigué development project are on budget and on schedule for start-up in
Q2-2024 and Q3-2024 respectively, which will provide further ability to reward shareholders
• Strong ongoing exploration efforts with $78m spent year to date across the group; Updated resource estimate for Tanda-
Iguela greenfield discovery expected to be published in late 2023
London, 9 November 2023 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the
“Company”) announces its operating and financial results for Q3-2023, with highlights provided in Table 1 below.
Table 1: Q3-2023 and YTD-2023 Highlights from continuing operations1
All amounts in US$ million unless otherwise specified
THREE MONTHS ENDED NINE MONTHS ENDED
30 September
2023
30 June
2023
30 September
2022
30 September
2023
30 September
2022
Δ YTD-2023
vs. YTD-2022
OPERATING DATA
Gold Production, koz 281 268 281 792 867 (9)%
Gold sold, koz 278 269 277 799 860 (7)%
All-in Sustaining Cost2, $/oz 967 1,000 856 974 838 +16%
Realised Gold Price, $/oz 1,903 1,947 1,748 1,910 1,824 +5%
CASH FLOW
Operating Cash Flow before changes in working capital 121 161 185 500 738 (32)%
Operating Cash Flow before changes in working capital2, $/sh 0.49 0.65 0.75 2.02 2.98 (32)%
Operating Cash Flow 115 147 144 453 622 (27)%
Operating Cash Flow2, $/sh 0.47 0.59 0.58 1.83 2.51 (27)%
PROFITABILITY
Net Earnings Attributable to Shareholders 60 78 86 137 203 (33)%
Net Earnings, $/sh 0.24 0.32 0.34 0.55 0.82 (33)%
Adj. Net Earnings Attributable to Shareholders2 70 54 64 188 280 (33)%
Adj. Net Earnings2, $/sh 0.28 0.22 0.26 0.76 1.13 (33)%
EBITDA2 262 273 294 704 839 (16)%
Adj. EBITDA2 263 253 253 755 878 (14)%
SHAREHOLDER RETURNS
Shareholder dividends paid 100 — 100 200 170 +18%
Share buybacks 20 9 37 40 75 (47)%
ORGANIC GROWTH
Growth capital spend2 116 104 30 293 72 +307%
Exploration spend 27 30 21 78 59 +32%
FINANCIAL POSITION HIGHLIGHTS
Net Debt, (Net Cash)2 445 171 (3) 445 (3) n.a.
Net Debt, (Net Cash) / LTM Trailing adj. EBITDA3 0.40 0.15 — 0.40 — n.a.
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
1
Management will host a conference call and webcast today, 9 November 2023, at 8:30 am EST / 1:30 pm GMT . For instructions
on how to participate, please refer to the conference call and webcast section at the end of the news release. A copy of the
Management Report and Financial Statements have been submitted to the National Storage Mechanism. The documents will
shortly be available for inspection on the Company’s website and at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Sebastien de Montessus, President and CEO, commented: “We are pleased with our performance over the first nine months of
the year, which leaves us well positioned to deliver against our strategic objectives.
On the operational front, in light of the efforts made over the first half of the year, our third quarter saw the strongest
performance so far this year, and we expect Q4 performance to be even stronger, which positions us well to meet full-year
production guidance for the eleventh consecutive year and maintain our status as one of the lowest cost gold producers in the
sector. Looking ahead, we expect 2024 to be a strong year for Endeavour, as the brownfield expansion of Sabodala-Massawa
and the Lafigué development project both remain on budget and on track to be commissioned next year.
Alongside this year's investments in our organic pipeline, we are pleased to continue to offer attractive shareholder returns,
delivering $240 million to shareholders over the first nine months of the year. Since we paid our first dividend in Q1-2021, we are
proud to have returned over three quarters of a billion dollars to shareholders in the form of dividends and buybacks, which
represents $354 million more than our minimum commitment for the period. Looking ahead, our goal is to increase our
shareholder returns program, once our two ongoing organic growth projects are complete, to ensure that our efforts to unlock
growth benefit all stakeholders.
Lastly, we are very excited by our exploration program, which continues to provide a strong platform for organic growth. Further
drilling at our recent Tanda-Iguela discovery in Côte d'Ivoire has exceeded expectations, extending the mineralised trend by 50%
and delineating several potential satellite deposits. We are continuing to advance this year's 180,000 meter drill campaign and
look forward to publishing an updated resource estimate later this year.
I would like to thank our team for their continued strong contributions. I look forward to 2024 and beyond as we will benefit from
the efforts undertaken over recent years to improve the quality of our portfolio and strengthen the resilience of our business.”
2
OPERATING SUMMARY
• Strong safety performance for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) from continuing operations of
0.08 for the trailing twelve months ending 30 September 2023.
• In line with its guided trend, Q3-2023 was Endeavour’s strongest quarter this year while Q4-2023 is expected to be even
stronger. As such, the Group remains on track to achieve its FY-2023 production guidance from continuing operations of
1,060 – 1,135koz with the group AISC expected to be near the top-end of the guided $895 – 950/oz range.
• Q3-2023 production from continuing operations amounted to 281koz, an increase of 13koz or 5% over Q2-2023, despite the
impact of the wet season, due to increased production from Houndé (as a result of higher grade ore sourced from Kari
Pump), which was partially offset by a decrease in production across Ity and Sabodala-Massawa (due to lower throughputs
and lower average grades), while production at Mana was largely consistent with the prior quarter. Q3-2023 AISC from
continuing operations amounted to an industry-low of $967/oz, which marks a decrease of $33/oz or 3% over Q2-2023 due
largely to lower costs at Houndé (due to higher grades processed and volumes sold) which was partially offset by increased
costs at Ity (due to the impacts of the wet season), Sabodala-Massawa (due to lower volumes of gold sold) and at Mana (due
to higher open pit mining and processing unit costs).
• YTD-2023 production from continuing operations amounted to 792koz, a decrease of 75koz or 9% over YTD-2022 as a result
of decreased production at Sabodala-Massawa (due to lower grade oxide ores processed as per the mine schedule), and at
Mana (due to the slower than expected ramp up of the new Wona Underground mining contractor resulting in lower
processing grades). This was partially offset by increased production at Ity due to improved throughput and recoveries, while
Houndé remained consistent. YTD-2023 AISC from continuing operations amounted to $974/oz, an increase of $136/oz or
16% over YTD-2022, due to increases across Mana, Sabodala-Massawa, and Houndé.
Table 2: Group Production
THREE MONTHS ENDED NINE MONTHS ENDED
All amounts in koz, on a 100% basis
30 September
2023
30 June
2023
30 September
2022
30 September
2023
30 September
2022
Houndé 109 72 72 228 232
Ity 73 86 81 250 230
Mana 30 31 42 106 149
Sabodala-Massawa 69 79 86 209 256
PRODUCTION FROM CONTINUING OPERATIONS 281 268 281 792 867
Boungou1 — 14 29 33 90
Wahgnion1 — 30 32 68 88
Karma2 — — — — 10
GROUP PRODUCTION 281 311 343 893 1,055
1The Boungou and Wahgnion mines were divested on 30 June 2023 2The Karma mine was divested on 10 March 2022
Table 3: Group All-In Sustaining Costs
All amounts in US$/oz
THREE MONTHS ENDED NINE MONTHS ENDED
30 September
2023
30 June
2023
30 September
2022
30 September
2023
30 September
2022
Houndé 787 1,085 716 959 767
Ity 864 797 773 793 799
Mana 1,734 1,481 1,098 1,408 993
Sabodala-Massawa 840 762 779 795 703
Corporate G&A 40 56 47 50 40
AISC FROM CONTINUING OPERATIONS 967 1,000 856 974 838
Boungou1 — 2,147 1,219 1,639 1,051
Wahgnion1 — 1,817 1,647 1,566 1,590
Karma2 — — — — 1,504
GROUP AISC3 967 1,136 960 1,045 926
1The Boungou and Wahgnion mines were divested on 30 June 2023 2The Karma mine was divested on 10 March 2022 3This is a non-GAAP measure, refer to the
non-GAAP Measures section for further details
• Total sustaining and non-sustaining capital expenditure for FY-2023 is expected to amount to approximately $327.0 million,
which represents a 2% increase over the previously guided amount of $320.0 million, as detailed below.
• Total sustaining capital expenditure of $71.8 million was incurred in YTD-2023, of which $22.5 million has been incurred in
Q3-2023, primarily related to waste development and mining equipment upgrades at Houndé, Ity and Sabodala-Massawa as
well as new infrastructure at Mana. The FY-2023 sustaining capital expenditure for continuing operations is expected to
3
amount to $100.0 million compared to the previously provided outlook of $110.0 million due to a $10.0 million reduction at
Sabodala-Massawa in line with the production profile and due to the acceleration of the Niakafiri East and Sofia North
Extension pits into the mine plan which allows stripping activity initially planned in the Massawa zone to be deferred until
next year.
• Total non-sustaining capital expenditure of $192.8 million was incurred in YTD-2023, of which, $49.5 million has been
incurred in Q3-2023, primarily related to waste stripping activities at Houndé; TSF construction, embankment raises and the
Recyn and Mineral Sizer optimisation initiatives at Ity; the solar power plant construction at Sabodala-Massawa; and ongoing
underground development at Mana. The FY-2023 non-sustaining capital expenditure for continuing operations is expected to
amount to $227.0 million compared to the previously provided outlook of $210.0 million due to a $10.0 million increase at
Mana (related to increased underground development costs associated with the slower than expected ramp-up of the Wona
Underground mining contractor) and a $7.0 million increase at Ity (as the Tailings Storage Facility (“TSF”) embankment raise
and the construction of a new TSF have been accelerated) due to its strong performance this year.
• The growth capital expenditure outlook for FY-2023 remains unchanged at $400.0 million, with $292.5 million incurred in
YTD-2023, of which $116.2 million has been incurred in Q3-2023. In Q3-2023, a total of $50.4 million was incurred for the
Sabodala-Massawa BIOX® expansion project, $63.8 million was incurred for the Lafigué development project, and
$2.0 million was incurred for the Kalana project.
4
SHAREHOLDER RETURNS PROGRAMME
• The Company is pleased to continue to deliver attractive shareholder returns, despite the significant growth capital
investments being undertaken this year. Endeavour paid its H1-2023 dividend of $100.0 million, or $0.40 per share, on 26
September 2023, to shareholders of record on 1 September 2023. On an annualised basis, the H1-2023 dividend represents
$25.0 million, or 14%, more than the minimum dividend commitment for the year of $175.0 million.
• In addition, shareholder returns continued to be supplemented with share buybacks as $40.0 million or 1.8 million shares
were repurchased in YTD-2023, of which $20.0 million or 1.0 million shares were repurchased in Q3-2023. Since the
commencement of the buyback programme on 9 April 2021, a total of $277.0 million, or 12.4 million shares have been
repurchased as at 30 September 2023.
• As shown in the table below, Endeavour has returned $777.0 million to shareholders in the form of dividends and buybacks ,
equivalent to $202/oz produced from all operations, since its shareholder returns programme began in late 2020 (first
dividend payment in Q1-2021), which represents $354.0 million more than its minimum commitment for the period.
Table 4: Actual Shareholder Returns vs. Minimum Commitment
All amounts in US$ million
MINIMUM TARGET
ACTUAL SHAREHOLDER RETURNS
SUPPLEMENTAL
SHAREHOLDER RETURNSDIVIDENDS
PAID
BUYBACKS
COMPLETED
TOTAL
RETURNS
FY-2020 60 60 — 60 —
FY-2021 125 140 138 278 +153
FY-2022 150 200 99 299 +149
YTD-20231 88 100 40 140 +52
Total 423 500 277 777 +354
1Minimum Target is presented on a semi-annual basis as, Endeavour has outlined a minimum dividend commitment of $175 million for FY-2023
CASH FLOW SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three month period ended 30 September
2023, 30 June 2023 , and 30 September 2022 , and the nine month periods ended 30 September 2023 and 30 September 2022
with accompanying explanations below.
Table 5: Cash Flow and Net Debt
THREE MONTHS ENDED NINE MONTHS ENDED
All amounts in US$ million unless otherwise specified Notes
30 September
2023
30 June
2023
30 September
2022
30 September
2023
30 September
2022
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital1 121 161 185 500 738
Changes in working capital1 (5) (14) (41) (47) (116)
Cash generated from discontinued operations2 — 13 8 27 85
Cash generated from operating activities [1] 115 159 152 480 706
Cash used in investing activities [2] (195) (214) (111) (610) (349)
Cash (used)/generated in financing activities [3] (125) 83 (254) (198) (327)
Effect of exchange rate changes on cash (15) 7 (52) 2 (104)
(DECREASE)/INCREASE IN CASH (219) 35 (264) (326) (74)
Cash and cash equivalent position at beginning of period 845 810 1,097 951 906
CASH AND CASH EQUIVALENT POSITION AT END OF PERIOD [4] 625 845 833 625 833
Principal amount of $500m Senior Notes (500) (500) (500) (500) (500)
Principal amount of $330m Convertible Notes — — (330) — (330)
Drawn portion of $167m Lafigué Term Loan (35) — — (35) —
Drawn portion of $645m Revolving Credit Facility (535) (515) — (535) —
NET DEBT [5] (445) (171) 3 (445) 3
Trailing twelve month adjusted EBITDA3 1,113 1,284 1,488 1,138 1,488
Net Debt / Adjusted EBITDA (LTM) ratio3 0.40x 0.15x 0.00x 0.40x 0.00x
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
3Last Twelve Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by discontinued operations
NOTES:
1) Operating cash flows decreased by $44.4 million from $159.3 million (or $0.64 per share) in Q2-2023 to $114.9 million (or
$0.47 per share) in Q3-2023 due to a lower realised gold price and higher taxes paid related to the timing of withholding
5
tax payments and the prior period incorporating operating cashflow generated by the divested Boungou and Wahgnion
mines.
Operating cash flows decreased by $226.5 million from $706.3 million (or $2.85 per share) in YTD-2022 to $479.8 million
(or $1.94 per share) in YTD-2023 due to lower production, increased operating and exploration costs, higher tax
payments and the prior period containing significant cashflow generated by discontinued operations, which was partially
offset by a decrease in working capital outflows.
Notable variances are summarised below:
• Working capital was an outflo w of $5.2 million in Q3-2023, a decrease of $9.0 million over the Q2-2023 outflow of
$14.2 million. The outflow in Q3-2023 was largely driven by a prepaid expenses and other outflow of $8.6 million
related to advanced insurance and security payments , and a trade and other payables outflow of $1.2 million related
to the timing of payments. The outflow was partially offset by a n inflow of inventories of $6.8 million mainly related
to decreased warehouse inventory at Sabodala-Massawa, Ity, and Houndé and an increase in stockpiles at Sabodala-
Massawa, and an outflow in trade and other receivables of $2.2 million related to the timing of VAT receipts.
Working capital was an outflow of $47.4 million in YTD-2023, a decrease of $68.5 million over the YTD-2022 outflow
of $115.9 million, largely driven by a decrease in outflows related to trade and other payables due t o the timing of
supplier and royalty payments in YTD-2022.
• Gold sales from continuing operations increased from 269koz in Q2-2023 to 278koz in Q3-2023 following increased
production at Houndé, which was partially offset by decreased production at Ity and Sabodala-Massawa. The realised
gold price from continuing operations for Q3-2023 was $1,898 per ounce compared to $1,943 per ounce for Q2-2023.
Inclusive of the Group’s Revenue Protection Programme, the realised gold price for Q3-2023 was $1,903 per ounce
compared to $1,947 per ounce for Q2-2023.
Gold sales from continuing operations decreased from 860koz in YTD-2022 to 799koz in YTD-2023, following lower
Group production in YTD-2023. The realised gold price from continuing operations for YTD-2023 was $1,915 per
ounce compared to $1,808 per ounce for YTD-2022. Inclusive of the Group’s Revenue Protection Programme, the
realised gold price for YTD-2023 was $1,910 per ounce compared to $1,824 per ounce for YTD-2022.
• Total cash cost per ounce decreased from $868 per ounce in Q2-2023 to $848 per ounce in Q3-2023, primarily due to
increased gold sold at a Group level and lower processing unit costs at Houndé, which was partially offset by
increased cash costs at Ity due to lower gold volumes sold and wet season impacts, at Mana due to an increase in
waste mining, and at Sabodala-Massawa due to higher processing costs associated with higher fuel and consumable
prices.
Total cash cost per ounce increased from $716 per ounce in YTD-2022 to $837 per ounce in YTD-2023 due to lower
production and gold sold at Sabodala-Massawa and Mana in addition to increases in fuel and consumable costs across
the Group.
• As shown in the table below, i ncome taxes paid increased by $38.4 million from $103.6 million in Q2-2023 to $142.0
million in Q3-2023 due largely to a $44.1 million withholding tax payment linked to a portion of the cash expected to
be upstreamed from operating entities this year, in addition to higher corporate taxes paid at Sabodala-Massawa
linked to the timing of provisional payments, which was partially offset by lower corporate taxes paid at Ity, Mana,
and Houndé.
Income taxes paid increased by $124.2 million from $145.8 million in YTD-2022 to $270.0 million in YTD-2023 due
largely to the increase in taxes paid at Sabodala-Massawa as provisional tax payments made in the YTD-2022 period
were based off of the 2021 tax base which benefited from a tax holiday at the Massawa permit which expired at the
end of 2021 in addition to higher provisional payments made at Ity and Sabodala-Massawa in the YTD-2023 period
based on the higher tax base of those assets in 2022, following the start of production on the Floleu permit which
carries a higher tax rate and the above mentioned expiry of the tax holiday on the Massawa permit respectively.
Table 6: Tax Payments
THREE MONTHS ENDED NINE MONTHS ENDED
All amounts in US$ million
30 September
2023
30 June
2023
30 September
2022
30 September
2023
30 September
2022
Houndé 11.3 13.0 10.4 35.2 37.0
Ity 9.3 32.3 10.3 42.9 30.5
Mana 5.4 12.9 3.1 21.3 10.3
Sabodala-Massawa 65.3 45.5 — 116.4 16.8
Other1 50.7 (0.1) 48.3 54.2 51.2
Taxes paid by continuing operations 142.0 103.6 72.1 270.0 145.8
1Included in the “Other” category is income and withholding taxes paid by Corporate and Exploration entities.
2) Cashflows used in investing activities decreased by $19.3 million from $214.4 million in Q2-2023 to $195.1 million in
Q3-2023 due to a decrease in non-sustaining capital spend related to reduced capitalised development at Mana and
Sabodala-Massawa as access to ore increased, while the prior period included investing cashflows related to divested
6
assets. In addition an investment of $10.0 million in marketable securities in Allied Merger Corporation (“Allied”) was
completed during Q3-2023, resulting in Endeavour now owning 14.1 million shares , equivalent to 3.4% of Allied’s total
shares outstanding. The decrease in cashflows used in investing activities was partially offset by accelerated growth
capital spend in Q3-2023 at the Sabodala-Massawa expansion and the Lafigué development project.
Cashflows used in investing activities increased by $260.6 million from $349.2 million in YTD-2022 to $609.8 million in
YTD-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 of $22.5 million in Q3-2023 was largely in-line with the prior quarter as
increased sustaining capital expenditure at Sabodala-Massawa (related to waste capitalisation at Bambaraya and
mining equipment upgrades) was largely offset by decreased expenditure at Houndé and Ity due to less waste
capitalisation.
Sustaining capital from continuing operations of $71.8 million in YTD-2023 was largely in-line with the prior period as
increased sustaining capital expenditure at Houndé (related to waste development activities at the Vindaloo and Kari
Pump pits), and at Mana (related to infrastructure and underground development) was offset by decreased sustaining
capital expenditure at Sabodala-Massawa (as waste development in existing pits moved to focus on new pits), and at
Ity (due to less waste development).
• Non-sustaining capital from continuing operations decreased from $60.6 million in Q2-2023 to $49.5 million in
Q3-2023, largely due to a decrease in non-sustaining capital at Mana (as spend on underground development was
reduced as more stoping commenced), and at Sabodala-Massawa (as spend on new deposits decreased as they
advanced into production), and at Houndé and Ity (due to a decrease in pre-stripping activities).
Non-sustaining capital from continuing operations increased from $131.8 million in YTD-2022 to $192.8 million in
YTD-2023 due to increased non-sustaining capital expenditure at Ity (related to ongoing construction of the Recyn and
Mineral Sizer optimisation initiatives, the embankment raise at TSF 1 and the construction of TSF 2), at Sabodala-
Massawa and Houndé (due to increased pre-stripping activities as new pits and new phases of existing pits were
opened), and at Mana (due to increased underground development and the ongoing TSF embankment raise).
• Growth capital increased from $104.1 million in Q2-2023 to $116.2 million in Q3-2023, as construction activities at the
Sabodala-Massawa expansion and the Lafigué development project accelerated. Growth capital expenditure during
the quarter also included $2.0 million for work related to the Kalana project.
Growth capital increased from $71.9 million in YTD-2022 to $292.5 million million in YTD-2023 largely due to the
acceleration 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 increased by $207.3 million from an inflow of $82.7 million in Q2-2023 to an
outflow of $124.6 million in Q3-2023 largely due to the timing of dividend payments to shareholders and minorities.
Financing cash outflows in Q3-2023 included payment of the H1-2023 dividend to shareholders of $99.0 million, payment
of dividends to minorities of $55.3 million, payments for the acquisition of the Company’s own shares through its share
buyback programme of $16.7 million, payments of financing and other fees of $4.7 million related to the coupon
payments for the senior notes and the RCF and repayment of finance and lease obligations of $4.0 million. Outflows were
partially offset by a $55.1 million drawdown on the Company’s $645.0 million RCF to manage short term offshore cash
flow requirements.
Cash flows used in financing activities decreased by $129.0 million from an outflow of $326.6 million in YTD-2022 to
$197.6 million in YTD-2023 largely due to drawing on the company’s RCF during the current period.
4) At quarter end, Endeavour’s liquidity remained strong at $867.1 million, consisting of $625.1 million of cash and cash
equivalents, $110.0 million available through the Company’s RCF, and $132.0 million available through the Lafigué Term
Loan. In addition, Endeavour expects to receive proceeds of $97.0 million for the divestment of the non-core Boungou
and Wahgnion mines before year-end, as described in section “Non-core Asset Divestment” below.
5) Endeavour’s net debt position has increased by $274.5 million, from $170.5 million at the end of Q2-2023 to $445.0
million at the end of Q3-2023 due to the Company’s ongoing focus on completing its growth projects, timing of tax
payments and timing of dividend payments. The Company’s net debt / Adjusted EBITDA (LTM) leverage ratio remains
healthy at 0.40x at the end of Q3-2023 despite the strong focus on investing in its organic growth.
7
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three month periods ended 30 September
2023, 30 June 2023 , and 30 September 2022 and the nine month periods ended 30 September 2023 and 30 September 2022
with accompanying explanations below.
Table 7: Earnings from Continuing Operations
THREE MONTHS ENDED NINE MONTHS ENDED
All amounts in US$ million unless otherwise specified Notes
30 September
2023
30 June
2023
30 September
2022
30 September
2023
30 September
2022
Revenue [6] 530 524 467 1,535 1,562
Operating expenses [7] (205) (202) (176) (579) (534)
Depreciation and depletion (114) (100) (118) (316) (339)
Royalties [8] (32) (32) (29) (93) (93)
Gross earnings from operations 178 191 145 548 595
Corporate costs [9] (10) (14) (12) (38) (33)
Impairment of mining interests and goodwill — (15) — (15) —
Share-based compensation (5) (8) (4) (22) (15)
Other expense (7) 3 (2) (10) (16)
Exploration costs [10] (15) (15) (12) (42) (27)
Earnings from operations 141 142 114 421 504
Gain/(loss) on financial instruments [11] 7 31 62 (34) (4)
Finance costs (19) (18) (17) (52) (47)
Earnings before taxes 129 155 159 336 453
Current income tax expense [12] (54) (91) (74) (193) (210)
Deferred income tax (expense)/recovery [13] (2) 37 11 47 7
Net comprehensive earnings from continuing operations [14] 74 101 96 190 250
Add-back adjustments [15] 13 (22) (18) 58 90
Adjusted net earnings from continuing operations 87 79 78 248 341
Portion attributable to non-controlling interests 17 26 14 60 60
Adjusted net earnings from continuing operations attributable to
shareholders of the Company [16] 69 54 64 188 280
Adjusted net earnings per share from continuing operations 0.28 0.22 0.26 0.76 1.13
NOTES:
6) Revenue increased by $5.9 million from $524.1 million in Q2-2023 to $530.0 million in Q3-2023 due to an increase in gold
sales from continuing operations from 269koz in Q2-2023 to 278koz in Q3-2023, following higher production at Houndé,
partially offset by a $45 per ounce decrease in the realised gold price from $1,943 per ounce in Q2-2023 to $1,898 per
ounce in Q3-2023, exclusive of the Company’s Revenue Protection Programme.
Revenue decreased by $26.3 million from $1,561.6 million in YTD-2022 to $1,535.3 million in YTD-2023 due to a decrease
in gold sales from continuing operations from 860koz in YTD-2022 to 799koz in YTD-2023, partly offset by a higher
realised gold price for YTD-2023 of $1,915 per ounce compared to $1,808 per ounce for YTD-2022, exclusive of the
Company’s Revenue Protection Programme.
7) Operating expenses increased by $3.5 million from $201.8 million in Q2-2023 to $205.3 million in Q3-2023 largely due to
increased operating costs at Houndé and Mana as a result of higher strip ratios in current ore mining areas and increases
in fuel and consumable costs. Depreciation and depletion increased by $14.9 million from $99.5 million in Q2-2023 to
$114.4 million in Q3-2023 mainly due to increased depletion at Houndé as a result of higher quarterly production.
Operating expenses increased by $44.8 million from $533.7 million in YTD-2022 to $578.5 million in YTD-2023 largely due
to increased volumes mined and processed at Ity and Houndé in addition to increases in fuel and consumable costs.
8