ENDEAVOUR REPORTS ROBUST H1-2022 RESULTS; INCREASES HALF YEAR DIVIDEND BY 43% TO $100M Production of 702koz at an AISC of $900/oz l Operating cash flow of $553m l Net cash position increased by $141m OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR REPORTS ROBUST H1-2022 RESULTS;
INCREASES HALF YEAR DIVIDEND BY 43% TO $100M
Production of 702koz at an AISC of $900/oz l Operating cash flow of $553m l Net cash position increased by $141m
OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)
• Well positioned to achieve FY-2022 production guidance of 1,315-1,400koz at an AISC of $880-930/oz given robust
H1-2022 production of 702koz at an AISC of $900/oz
• Q2-2022 production amounted to 345koz at an AISC of $954/oz as the cost base benefitted from favourable EUR:USD
currency variation which offset higher fuel costs
• Adjusted Net Earnings of $245m (or $0.99/sh) for H1-2022; $111m (or $0.45/sh) for Q2-2022
• Operating Cash Flow of $553m (or $2.22/sh) for H1-2022; $253m (or $1.02/sh) for Q2-2022
• Net cash position increased by $141m during H1-2022 to $217m after $108m paid in shareholder returns
ea SHAREHOLDER RETURNS PROGRAMME
• H1-2022 dividend of $100m declared, up 43% over H1-2021; minimum FY-2022 dividend increased by 33% to $200m
• Share buyback programme continued with $38m worth of shares repurchased in H1-2022, including $7m in Q2-2022
• H1-2022 shareholder returns represent $197/oz produced, 10% of revenue, 25% of operating cash flow, 56% of adj. net
earnings for the period or an implied annualized yield of 4.9%
• Cumulative shareholder returns since early 2021 stand at $476m, inclusive of the H1-2022 dividend
ORGANIC GROWTH
• Sabodala-Massawa expansion on track with 37% of capital committed; DFS underway for Lafigué greenfield project
• Strong H1-2022 exploration effort with $44m spent, including $26m in Q2-2022; resource updates expected in late 2022
London, 3 August 2022 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the
“Company”) is pleased to announce its operating and financial results for Q2-2022 and H1-2022, with highlights provided in
Table 1 below.
Table 1: Highlights for Continuing Operations1
All amounts in US$ million unless otherwise specified
THREE MONTHS ENDED SIX MONTHS ENDED
30 June 2022 31 March
2022 30 June 2021 30 June 2022 30 June 2021 Δ H1-2022 vs.
H1-2021
OPERATING DATA
Gold Production, koz 345 357 384 702 697 +1%
All-in Sustaining Cost2, $/oz 954 848 839 900 838 +7%
Realised Gold Price, $/oz 1,832 1,911 1,795 1,872 1,779 +5%
CASH FLOW
Operating Cash Flow before Changes in WC 253 370 269 622 502 +24%
Operating Cash Flow before Changes in WC2, $/sh 1.02 1.49 1.07 2.50 2.18 +15%
Operating Cash Flow 253 299 284 553 488 +13%
Operating Cash Flow2, $/sh 1.02 1.21 1.13 2.22 2.12 +5%
PROFITABILITY
Net Earnings/(Loss) Attributable to Shareholders 189 (57) 126 133 210 (37)%
Net Earnings/(Loss), $/sh 0.76 (0.23) 0.50 0.53 0.91 (42)%
Adj. Net Earnings Attributable to Shareholders2 111 134 175 245 282 (13)%
Adj. Net Earnings2, $/sh 0.45 0.54 0.69 0.99 1.22 (19)%
EBITDA2 417 218 344 635 646 (2)%
Adj. EBITDA2 329 398 403 726 728 0%
SHAREHOLDER RETURNS
Shareholder dividends paid — 70 — 70 60 +17%
Share buybacks 7 31 59 38 59 (36)%
FINANCIAL POSITION HIGHLIGHTS
(Net Cash)/Net Debt2 (217) (167) 77 (217) 77 n.a.
(Net Cash), Net Debt / Adjusted EBITDA (LTM)
ratio2 (0.14) (0.11) 0.07 (0.14) 0.07 n.a.
1From Continuing Operations excludes the Karma mine which was divested on 10 March 2022 and the Agbaou mine which was divested on 1 March 2021. 2This is
a non-GAAP measure. Refer to the non-GAAP measure section in this press release and in the Management Report.
1
Management will host a conference call and webcast today, Wednesday 3 August, at 8:30 am EDT / 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: “We are very pleas ed with our solid operating and financial
performance over the first six months of the year, which has resulted in robust operating cash flow generation of more than $550
million. We are very proud to be on track to achieving both production and AISC guidance for the tenth consecutive year, despite
the macro environment, which is a reflection of the resilience of our business and the strong dedication of our team.
This strong performance allowed us to continue to execute our capital allocation strategy, which is focused on strengthening our
balance sheet, maximising shareholder returns and investing in our growt h. As such, during the period, we continued to
strengthen our balance sheet, increasing our net cash position by $141 million to reach $217 million, while also ret urning $108
million, in the form of dividend and buybacks, to shareholders.
In line with our strong s hareholder returns commitment, we are pleased to declare a H1-2022 dividend of $100 million, which
represents a 43% increase over last year’s dividend and is reflective of our improved financial position and confidence in our
business outlook. Moreover, we are now targeting a minimum dividend of $200 million for the year, which is $50 million more
than the initial minimum commitment. We are also continuing to supplement our shareholder returns with share buybacks,
having completed $38 million over the last six months and $176 million since launching the programme in April 2021.
Our capital returns programme has returned an impressive $476 million to shareholders since early 2021, inclusive of the
H1-2022 dividend, which represents approximately 10% of our current market capitalisation.
Looking ahead, we are excited with our growth prospects, with the priority being the Sabodala-Massawa plant expansion which
is progressing on-schedule and on budget, with already over a third of the total capital committed. We have also continued to
refine the DFS for our Lafigué project which is expected to be published in late Q3-2022. While, on the exploration front, we have
continued to aggressively drill, which has resulted in a number of new discoveries, for which we expect to publish resource
updates later in the year.
Given our strong performance across the business, we have significant momentum going into the second half of the year and are
well positioned to continue to generate value for our stakeholders over the long term.”
UPCOMING CATALYSTS
The key upcoming expected catalysts are summarised in the table below.
Table 2: Key Upcoming Catalysts
TIMING CATALYST
Q3-2022 Shareholder returns Payment of H1-2022 dividend
Q3-2022 Lafigué deposit - Fetekro property Completion of Definitive Feasibility Study
Q3-2022 Mana Wona underground first stope production
H2-2022 Exploration Greenfield exploration programme progress update
H2-2022 Sabodala-Massawa Expansion project progress update
H2-2022 Exploration Exploration results and resource update
OPERATING SUMMARY
• Continued strong safety record for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) of 0.13 for continuing
operations for the trailing twelve months ending 30 June 2022.
• The Group is well positioned to achieve its FY-2022 production and all-in sustaining costs (“AISC”) guidance for continuing
operations of 1,315-1,400koz at an AISC of $880-930 per ounce.
• H1-2022 production from continuing operations amounted to 702koz, an increase of 6koz over H1-2021 due to full period
consolidation of production from Sabodala-Massawa as well as improved performance at Houndé (due to improved mining
flexibility with the addition of the Kari mining areas), offsetting lower production from Boungou and Wahgnion. H1-2022 AISC
from continuing operations increased by $62 per ounce over H1-2021 with higher AISC at Boungou, Ity, and Wahgnion, offset
by lower AISC at Mana and Sabodala-Massawa.
• Q2-2022 production from continuing operations amounted to 345koz, a decrease of 12koz over Q1-2022, as a result of lower
production at Sabodala-Massawa and Boungou in line with the mining sequence. This was slightly offset by higher production
at Houndé and Ity due to high grade ore in the feed from the Kari Pump and Le Plaque pits respectively. Q2-2022 AISC from
continuing operations increased in line with guidance by $106 per ounce over Q1-2022 to $954 per ounce mainly due to
stripping activity and mine scheduling ahead of the rainy season while Endeavour’s cost base benefitted from favourable
exchange rate variations, long-term supply contracts, production and cost optimisation initiatives, and the benefit of
regulated in-country fuel pricing mechanisms. As expected, key drivers for the higher AISC were: scheduled increased
operating and sustaining capital costs associated with mining and processing increased proportions of fresh rock sourced
from deeper elevations in the Boungou, Sabodala-Massawa and Wahgnion pits (approx. impact of $61 per ounce), higher
2
fuel prices (approx. impact of $39 per ounce), lower volumes of gold ounces sold (approx. impact of $38 per ounce), and
increased explosive prices (approx. impact of $13 per ounce). These factors were partially offset by foreign exchange benefits
as the euro continued to decline against the dollar (approx. impact of $37 per ounce) and reduced royalties (approx. impact
of $8 per ounce) due to the lower realised gold price.
Table 3: Group Production and FY-2022 Guidance
THREE MONTHS ENDED SIX MONTHS ENDED
All amounts in koz, on a 100% basis
30 June
2022
31 March
2022
30 June
2021
30 June
2022
30 June
2021 2022 FULL-YEAR GUIDANCE
Boungou 27 34 39 61 99 130 — 140
Houndé 87 73 80 160 146 260 — 275
Ity 77 72 79 149 150 255 — 270
Mana 55 53 49 107 102 170 — 190
Sabodala-Massawa1 73 96 96 169 135 360 — 375
Wahgnion1 27 29 41 55 66 140 — 150
PRODUCTION FROM CONTINUING
OPERATIONS 345 357 384 702 697 1,315 — 1,400
Karma2 — 10 25 10 47
Agbaou3 — — — — 13
GROUP PRODUCTION 345 367 409 712 756
1Included for the post acquisition period commencing 10 February 2021. 2Divested on 10 March 2022. 3Divested on 1 March 2021.
Table 4: Group All-In Sustaining Costs and FY-2022 Guidance
All amounts in US$/oz
THREE MONTHS ENDED SIX MONTHS ENDED
30 June
2022
31 March
2022
30 June
2021
30 June
2022
30 June
2021 2022 FULL-YEAR GUIDANCE
Boungou 1,062 901 950 971 793 900 — 1,000
Houndé 807 771 741 791 787 875 — 925
Ity 895 728 806 813 796 850 — 900
Mana 905 1,000 1,016 953 982 1,000 — 1,100
Sabodala-Massawa1 779 578 637 666 675 675 — 725
Wahgnion1 1,788 1,351 980 1,558 903 1,050 — 1,150
Corporate G&A 20 39 27 30 30 30
AISC FROM CONTINUING OPERATIONS 954 848 839 900 838 880 — 930
Karma2 — 1,504 1,074 1,504 1,120
Agbaou3 — — — — 1,131
GROUP AISC 954 866 853 909 860
1Included for the post acquisition period commencing 10 February 2021. 2Divested on 10 March 2022. 3Divested on 1 March 2021.
• The Group sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $169.0
million as $68.8 million was incurred in H1-2022, of which $38.0 million was incurred in Q2-2022 and mainly related to waste
stripping activities at Houndé, Ity and Sabodala-Massawa as well as fleet upgrades at Houndé, Sabodala-Massawa and
Wahgnion.
• The Group non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $ 204.0
million as $95.1 million was incurred in H1-2022, of which $53.2 million was incurred in Q2-2022 and mainly related to
tailings storage facilities (“TSF”) at Houndé, Ity and Mana, pre-stripping activities at Boungou and infrastructure projects at
Mana, Sabodala-Massawa and Wahgnion.
• The Group growth capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $121.0 million
as $42.2 million was incurred in H1-2022, of which $ 34.3 million was incurred in Q2-2022 mainly related to the Sabodala-
Massawa expansion project and the Lafigué project DFS and its associated establishment works.
3
SHAREHOLDER RETURNS PROGRAMME
• In line with its strong shareholder returns commitment, Endeavour is pleased to declare a H1-2022 dividend of $100 million,
or $0.40 per share, which represents a 43% increase over the H1-2021 dividend and is reflective of its improved financial
position and confidence in its business outlook. Endeavour’s H1-2022 dividend will be paid on 28 September 2022 to
shareholders of record on 2 September 2022, the last day for currency election will be 9 September 2022.
• Endeavour is also pleased to announce an increase of its FY-2022 minimum dividend commitment by $50 million to $200
million, in line with its minimum progressive dividend policy, which is to be supplemented with additional dividends and
share buybacks provided the gold price remains above $1,500 per ounce and the Group’s leverage remains below 0.5x Net
Debt/adjusted EBITDA.
• In addition, shareholder returns continued to be supplemented through the Company’s share buyback programme. During
H1-2022, a total of $37.8 million or 1.6 million shares were repurchased, of which $6.7 million or 0.3 million shares were
repurchased in Q2-2022. Since the commencement of the buyback programme on 9 April 2021, a total of $ 176.0 million, or
7.6 million shares have been repurchased.
• H1-2022 shareholder capital returns rep resent $197 per ounce produced, 10% of revenue, 25% of operating cash flow, 56%
of adjusted net earnings for the period or an implied annualised yield of 4.9% based on the TSX closing share price on 29 July
2022.
• As shown in the table below, Endeavour has return ed $476 million to shareholders in the form of dividends and buybacks
since its shareholder returns programme began in late 2020, inclusive of the H1-2022 dividend, which represents $216
million more than its minimum commitment for the period.
Table 5: Actual Shareholder Returns vs. Minimum Commitment
MINIMUM ACTUAL SHAREHOLDER RETURNS SUPPLEMENTAL
All amounts in US$ million
DIVIDEND
COMMITMENT
DIVIDENDS
DECLARED
BUYBACKS
COMPLETED
TOTAL
RETURNS
SHAREHOLDER
RETURNS
FY-2020 60 60 — 60 —
FY-2021 125 140 138 278 +153
H1-2022 75 100 38 138 +63
TOTAL 260 300 176 476 +216
• Concurrent with the H1-2022 dividend, Endeavour is pleased to launch a Distribution Reinvestment Plan (“DRIP”) to offer
existing shareholders the opportunity, at their own election, to increase their investment in Endeavour by receiving dividend
payments in the form of common shares in the Company.
• Participation in the DRIP is optional and available to shareholders, subject to local law, who hold shares on the London Stock
Exchange or on the Toronto Stock Exchange. Participants may opt to reinvest all, or any portion of their dividends in the
DRIP. The enrolment form will be distributed to shareholders by Computershare on 3 August 2022 and will be made available
on Endeavour’s website, alongside the DRIP circular, which will also be submitted to the National Storage Mechanism in
accordance with Listing Rule 9.6.1. The last election date for participation in the H1-2022 DRIP for beneficial shareholders
who hold shares through the Canadian Depository System (“CDS”) will be 2 September 2022, for all other eligible
shareholders the last election date will be 7 September 2022.
• In accordance with the DRIP, Computershare will use cash dividends payable to participating shareholders to purchase
common shares in the open market on the Toronto Stock Exchange and the London Stock Exchange at the prevailing market
price.
4
CASH FLOW AND LIQUIDITY SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three month periods ended 30 June 2022,
31 March 2022, and 30 June 2021 and the six month periods ending 30 June 2022 and 30 June 2021, with accompanying
explanations below.
Table 6: Cash Flow and Net Debt Position
THREE MONTHS ENDED SIX MONTHS ENDED
All amounts in US$ million unless otherwise specified
30 June
2022
31 March
2022
30 June
2021
30 June
2022
30 June
2021
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital from
continuing operations 253 370 269 622 502
Changes in working capital 1 (70) 15 (70) (14)
Cash generated from discontinued operations — 5 16 5 10
Cash generated from operating activities [1] 253 304 301 558 498
Cash used in investing activities [2] (145) (94) (137) (238) (243)
Cash used in financing activities [3] (26) (50) (192) (76) (127)
Effect of exchange rate changes on cash (33) (20) (7) (53) (11)
INCREASE/(DECREASE) IN CASH 50 140 (35) 191 118
Cash position at beginning of period 1,047 906 868 906 715
CASH POSITION AT END OF PERIOD [4] 1,097 1,047 833 1,097 833
Principal amount of Senior Notes (500) (500) — (500) —
Principal amount of Convertible Notes (330) (330) (330) (330) (330)
Drawn portion of Revolving Credit Facility (50) (50) — (50) —
Drawn portion of Corporate Loan Facility — — (580) — (580)
NET CASH / (NET DEBT) [5] 217 167 (77) 217 (77)
(Net cash), Net debt / Adjusted EBITDA (LTM) ratio1 [5] (0.14) x (0.11) x 0.07 x (0.14) x 0.07 x
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 $51.1 million from $304.3 million (or $1.23 per share) in Q1-2022 to $253.2 million (or
$1.02 per share) in Q2-2022 due to a decrease in the realised gold price, a decrease in gold sales and the expected higher
costs, which were partially offset by a lower working capital outflow.
Operating cash flows increased by $59.2 million from $498.3 million (or $2.17 per share) in H1-2021 to $557.5 million (or
$2.24 per share) in H1-2022 due to an increase in the realised gold price, which was offset by higher working capital
outflows and lower gold sales.
Notable variances are summarised below:
• Changes in w orking capital were negligible in Q2-2022, an increase of $70.9 million over Q1-2022, as an increase in
inventories was largely offset by reductions in prepaid expenses and other payables.
Working capital was an outflow of $69.5 million in H1-2022, an increase of $55.2 million over H1-2021 due to an
increase in trade receivables at Sabodala-Massawa as VAT receivable increased following the startup of mining at the
Massawa pit and due to increased receivables from gold sales, offset slightly by a decrease in receivables at Mana and
Boungou as a result of VAT received during H1-2022.
• Gold sales from continuing operations decreased from 359koz in Q1-2022 to 344koz in Q2-2022 due primarily to
decreases in production at Sabodala-Massawa and Boungou. The realised gold price from continuing operations for
Q2-2022 was $1,832 per ounce compared to $1,911 per ounce for Q1-2022. Total cash cost per ounce increased from
$723 per ounce in Q1-2022 to $ 824 per ounce in Q2-2022, primarily due to the expected higher fuel and explosive
costs.
Gold sales from continuing operations decreased from 736koz in H1-2021 to 703koz in H1-2022 primarily due to lower
sales at Boungou, Ity and Wahgnion, partially offset by higher sales at Sabodala-Massawa and Houndé. The realised
gold price from continuing operations for H1-2022 was $1,872 per ounce compared to $1,779 per ounce for H1-2021.
Total cash cost per ounce increased from $715 per ounce in H1-2021 to $773 per ounce in H1-2022.
• Income taxes paid increased by $35.5 million from $28.7 million in Q1-2022 to $64.2 million in Q2-2022, due to an
increase in taxes paid at Ity by $19.8 million from $0.2 million in Q1-2022 to $20.0 million in Q2-2022 and an increase
at Houndé by $9.0 million from $8.8 million in Q1-2022 to $17.8 million in Q2-2022 which was largely related to the
final tax payments for the last financial year and the timing of payments at Houndé and Ity.
5
Income taxes paid decreased by $35.4 million from $128.3 million in H1-2021 to $92.9 million in H1-2022 largely due
to lower associated production at Boungou, a non-recurring charge at Ity in H1-2021 related to a customs audit and
lower withholding taxes.
2) Cashflows used in investing activities increased by $50.8 million from $93.8 million in Q1-2022 to $144.6 million in
Q2-2022 due to the ramp up at the Sabodala-Massawa expansion and increased capital expenditure at Sabodala-
Massawa, Houndé, Ity, Mana and Wahgnion. Cashflows used in investing activities for the HY-2022 were stable at $238.4
million in H1-2022.
• Sustaining capital from continuing operations increased from $30.8 million in Q1-2022 to $38.0 million in Q2-2022
primarily due to increased capitalised waste stripping activity at Houndé, Ity and Wahgnion.
Sustaining capital from continuing operations was relatively consistent with the prior period at $68.8 in H1-2022.
• Non-sustaining capital from continuing operations increased from $41.9 million in Q1-2022 to $53.2 million in
Q2-2022, due to TSF raise activities at Mana, Ity and Wahgnion, underground development at Mana, and engineering
works at the recyanidation project at Ity, which were partially offset by decreased spending at Houndé and Boungou.
Non-sustaining capital from continuing operations decreased from $112.2 million in H1-2021 to $95.1 million in
H1-2022, driven largely by a decrease at Ity where H1-2021 included spending for the Le Plaque haul road
construction and at Mana where H1-2021 spending included increased waste development spending coupled with
spending on the TSF raise.
• Growth capital spend increased as expected from $7.9 million in Q1-2022 to $34.3 million in Q2-2022 and primarily
relates to earthworks and early construction activities at the Sabodala-Massawa Expansion project and the DFS for
the Lafigué project and infrastructure upgrades.
Growth capital was relatively stable at $42.2 million in H1-2022 compared to the prior period as the prior period
incurred payment for the purchase of an additional stake in the Lafigué project property as announced on 21
December 2020.
3) Cash flows used in financing decreased by $24.2 million from $50.1 million in Q1-2022 to $25.9 million in Q2-2022.
Financing activities for Q2-2022 primarily consisted of payments of financing and other fees of $14.0 million, payments
for the acquisition of the Company’s own shares of $6.7 million, and repayment of finance and lease obligations of $5.2
million.
Cash flows used in financing decreased by $51.0 million from $127.0 million in H1-2021 to $76.0 million in H1-2022
largely due to the net repayment of $120.0 million of long-term debt in H1-2021.
4) At period-end, Endeavour’s liquidity remained strong with $ 1,096.8 million of cash on hand and $450.0 million undrawn
under the Revolving Credit Facility.
5) Endeavour’s net cash position increased by $50.2 million during Q2-2022 to $216.8 million, which provides the financial
flexibility to continue to supplement shareholder returns while maintaining headroom to fund organic growth.
6
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three and six month periods ending 30 June
2022, with accompanying notes below.
Table 7: Earnings from Continuing Operations
THREE MONTHS ENDED SIX MONTHS ENDED
All amounts in US$ million unless otherwise specified 30 June
2022
31 March
2022
30 June
2021
30 June
2022
30 June
2021
Revenue [8] 630 686 709 1,316 1,310
Operating expenses [9] (251) (218) (258) (469) (510)
Depreciation and depletion [9] (140) (152) (145) (292) (262)
Royalties [10] (38) (41) (40) (79) (81)
Earnings from mine operations 201 276 267 476 457
Corporate costs [11] (7) (14) (16) (21) (30)
Acquisition and restructuring costs (1) — (15) (2) (27)
Share-based compensation (3) (8) (10) (11) (18)
Other expense (11) (2) (8) (13) (11)
Exploration costs (8) (7) (6) (15) (16)
Earnings from operations 171 247 213 415 356
Gain/(loss) on financial instruments [12] 107 (179) (13) (72) 29
Finance costs (17) (15) (14) (32) (26)
Earnings before taxes 261 51 186 312 359
Current income tax expense [13] (65) (75) (44) (139) (116)
Deferred income tax recovery/(expense) [14] 8 (11) 7 (3) 13
Net comprehensive earnings/(loss) from continuing operations [15] 205 (35) 148 169 256
Add-back adjustments [16] (70) 192 55 122 90
Adjusted net earnings from continuing operations [17] 134 157 203 292 346
Portion attributable to non-controlling interests 23 24 28 47 64
Adjusted net earnings from continuing operations attributable
to shareholders of the Company [17] 111 134 174 245 282
Earnings/(loss) per share from continuing operations 0.76 (0.24) 0.50 0.53 0.91
Adjusted net earnings per share from continuing operations 0.45 0.54 0.69 0.99 1.22
NOTES:
8) Revenue decreased by $56.6 million from $686.2 million in Q1-2022 to $629.6 million in Q2-2022 mainly due to lower
production and sales from Sabodala-Massawa and Boungou, in line with the mining sequence, in addition to a lower
realised gold price in Q2-2022 of $1,832 per ounce compared to $1,911 per ounce for Q1-2022.
Revenue for H1-2022 increased by $5.7 million compared to H1-2021 due to the higher realised gold price of $1,872 per
ounce in H1-2022, compared to $1,779 per ounce in H1-2021, which was offset slightly by lower gold sold in H1-2022.
9) Operating expenses increased by $33.7 million from $217.5 million in Q1-2022 to $251.2 million in Q2-2022 due to higher
AISC due to the expected increased costs associated with fuel and explosives, as well as increased levels of stripping
activity during the quarter, ahead of the wet season. Depreciation and depletion decreased by $12.2 million from $152.0
million in Q1-2022 to $139.8 million in Q2-2022 mainly due to lower levels of production at the Sabodala-Massawa and
Boungou mines.
Operating expenses for the H1-2022 decreased by $41.4 million compared to H1-2021, primarily due to a decrease in
inventory adjustments at Sabodala-Massawa and the expense related to the change in inventory associated with gold
sold in excess of gold produced in H1-2021 following the Teranga acquisition. Depreciation and depletion for the H1-2022
increased by $30.3 million due to slightly higher production compared to the same period last year.
10) Royalties decreased from $41.0 million in Q1-2022 to $38.1 million in Q2-2022 despite the higher realised gold price, due
to lower levels of gold sales in Q2-2022. Royalties decreased slightly from $81.1 million in H1-2021 to $79.1 million in
H1-2022 due to lower gold sales, despite the higher realised gold price.
11) Corporate costs decreased from $14.0 million in Q1-2022 to $6.8 million in Q2-2022 due to lower costs associated with
employee and professional services, partially due to the payment of annual employee bonuses in Q1-2022. Corporate
7
costs also decreased from $30.2 million in H1-2021 to $20.8 million in H1-2022 due to the cessation of costs associated
with corporate integration and the LSE listing.
12) The loss on financial instruments of $178.8 million in Q1-2022 reversed to a gain of $106.8 million in Q2-2022 due
predominantly to an unrealised gain on gold forward sales of $72.8 million, an unrealised gain on gold collars of $33.5
million, an unrealised gain on the revaluation of the conversion option on the convertible notes of $31.7 million and a
gain on the change in fair value of the call rights of $5.6 million, which was offset by a foreign exchange loss of $38.5
million.
The gain on financial instruments of $28.9 million in H1-2021 decreased to a loss of $72.0 million in H1-2022 due to a loss
on foreign exchange of $58.0 million, an unrealised loss on gold collars of $10.3 million, an unrealised loss on forward
sales of $6.4 million, a realised loss on forward sales $5.6 million, a loss on the fair value of the redemption of senior
notes $4.6 million and a loss on change in fair value of warrant liabilities of $3.3 million, which was slightly offset by an
unrealised gain on the revaluation of the conversion option of the convertible notes of $13.7 million.
As previously disclosed, Endeavour entered into a revenue protection programme for a portion of its production across
FY-2022 and FY-2023, to provide greater cash flow visibility during its investment phase. This was structured as an
upfront low premium collar with a put price of $1,750 per ounce and a call price of $2,100 per ounce for 75koz of
production per quarter, from Q1-2022 until Q4-2023. In addition, the Company entered into forward sales contracts for
FY-2022 and FY-2023, for which 65koz at an average gold price of $1,834 per ounce and 99koz at an average gold price of
$1,834 per ounce were financially delivered in Q1-2022 and Q2-2022 respectively. Forward contracts scheduled to be
settled in Q3-2022 amount to 95koz at an average gold price of $1,834 per ounce, while 90koz at an average gold price of
$1,842 per ounce are scheduled to be settled in Q4-2022. For FY-2023, forward sales contracts amount to 120koz, or
30koz ounces per quarter at an average gold price of $1,828 per ounce.
13) Current income tax expense decreased by $10.0 million from $74.7 million in Q1-2022 to $64.7 million in Q2-2022 largely
due to a decrease in taxes at Boungou due to lower levels of productio n. Current income taxes increased by $23.1 million
from $116.3 million in H1-2021 to $139.4 million in H1-2022 due to an increase in tax expense at Sabodala-Massawa as a
result of the start-up of mining at the Massawa pits as well as an increase in taxable profit at Ity due to earnings
generated at Floleu, which includes the Le Plaque pit, which was partially offset by a decrease in tax expense at Boungou
associated with lower levels of production.
14) Deferred income tax recovery increased by $19.4 million from an expense $11.2 million in Q1-2022 to a recovery of $8.2
million in Q2-2022 due to timing difference between the tax base and the accounting base of assets and liabilities at Ity,
Houndé and Mana . In H1-2022, a deferred income tax expense of $3.0 million compared to a deferred tax recovery of
$13.4 million in H1-2021. In H1-2021, the Group benefitted from deferred tax recoveries at Sabodala-Massawa associated
with the unwinding of the fair value adjustment to inventory. The absence of these recoveries in H1-2022 contributed to
the decreased deferred tax tax expense for H1-2022.
15) Net comprehensive earnings from continuing operations of $204.5 million was recorded for Q2-2022 compared to a net
comprehensive loss of $35.2 million in Q1-2022. The increased earnings are largely attributed to strong earnings from
mine operations coupled with a gain on financial instruments associated with unrealised gains associated with fair value
adjustments on the gold collars and forward contracts, as well as the conversion feature on the convertible notes. For
H1-2022, net comprehensive earnings of $169.3 million was recognised, a decrease on the earnings of $256.2 million
recognised in H1-2021 due to the loss on financial instruments of $72.0 million recorded in H1-2022.
16) For Q2-2022, adjustments mainly included a gain on financial instruments of $106.8 million largely related to the
unrealised gain on forward sales, non-cash, tax and other adjustments of $24.8 million that mainly relate to the impact of
the foreign exchange remeasurement of deferred tax balances and non-cash fair value adjustments to inventory
associated with the purchase price allocation of Teranga, other expenses of $10.6 million and acquisition and
restructuring costs of $1.3 million. For H1-2022, adjustments mainly included a loss on financial instruments of $72.0
million largely related to the unrealised loss on forward sales, non-cash, tax and other adjustments of $36.3 million that
mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances and non-cash fair value
adjustments to inventory associated with the purchase price allocation of Teranga, other expenses of $12.6 million and
acquisition and restructuring costs of $1.5 million, which were slightly offset by net earnings from the discontinued
Karma mine of $14.8 million.
17) Adjusted net earnings attributable to shareholders for continuing operations decreased by $22.3 million to $111.3
million (or $0.45 per share) in Q2-2022 compared to $133.6 million (or $0.54 per share) in Q1-2022 due largely to lower
earnings from mining operations as a result of lower group production at higher AISC during the quarter. In H1-2022
adjusted net earnings attributable to shareholders for continuing operations decreased to $244.9 million (or $0.99 per
share) from $281.5 million (or $1.22 per share) in H1-2021 due to higher income tax expense due to higher taxes at Mana
and Sabodala-Massawa, which was partially offset by higher earnings from mine operations and lower acquisition and
restructuring costs during H1-2022.
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