ENDEAVOUR REPORTS STRONG FY-2023 RESULTS Production of 1.1Moz at AISC of $967/oz
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR REPORTS STRONG FY-2023 RESULTS
Production of 1.1Moz at AISC of $967/oz • Adj. EBITDA of $1.0bn • Shareholder returns of $266m
OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)
• Q4-2023 production of 280koz at an industry-low AISC of $947/oz; totalling 1,072koz at an AISC of $967/oz for FY-2023
• 11th consecutive year of achieving or beating production guidance at an industry-leading AISC
• Adjusted EBITDA of $292m for Q4-2023 and $1,047m for FY-2023
• Adjusted Net Earnings of $42m (or $0.17/sh) for Q4-2023 and $230m (or $0.93/sh) for FY-2023
• Operating Cash Flow before changes in WC of $246m (or $1.00/sh) for Q4-2023 and $746m (or $3.02/sh) for FY-2023
• Healthy financial position with net debt of $555m and leverage of 0.50x Net Debt / Adj. EBITDA (LTM) despite investing
$548m in organic growth and exploration and delivering $266m in shareholder returns during the year
ROBUST SHAREHOLDER RETURNS
• FY-2023 dividend of $200m and share buybacks of $66m; 52% more than the minimum commitment
• Shareholder returns total $903m since first payment in Q1-2021, 77% more than the minimum commitment
ATTRACTIVE ORGANIC GROWTH
• Sabodala-Massawa expansion and Lafigué project both on budget and on track for first gold in Q2-2024
• Group M&I resources increased by 1.4Moz or 6% year-on-year to 26.7Moz as exploration prioritised the Tanda-Iguela
project increasing its M&I resources by 303% to 4.5Moz, while P&P reserves decreased by 1.3Moz or 9% year-on-year to
13.9Moz, largely due to depletion, with resource to reserve conversion a key focus in 2024
London, 27 March 2024 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“ Endeavour”, the “Group” or the
“Company”) is pleased to announce its FY-2023 operating and financial results, with highlights provided in Table 1 below.
Table 1: Highlights from continuing operations1
All amounts in US$ million unless otherwise specified
THREE MONTHS ENDED YEAR ENDED
31 December
2023
30 September
2023
31 December
2022
31 December
2023
31 December
2022
Δ FY-2023 vs.
FY-2022
OPERATING DATA
Gold Production, koz 280 281 294 1,072 1,161 (8)%
Gold Sold, koz 285 278 290 1,084 1,150 (6)%
All-in Sustaining Cost2, $/oz 947 967 885 967 849 +14%
Realised Gold Price3, $/oz 1,945 1,903 1,760 1,919 1,808 +6%
CASH FLOW
Operating Cash Flow before changes in working capital 246 121 244 746 982 (24)%
Operating Cash Flow before changes in working capital2, $/sh 1.00 0.49 0.99 3.02 3.96 (24)%
Operating Cash Flow 167 115 288 619 910 (32)%
Operating Cash Flow2, $/sh 0.68 0.47 1.17 2.51 3.67 (32)%
PROFITABILITY
Net Earnings Attributable to Shareholders (160) 60 (10) (23) 194 (112)%
Net Earnings, $/sh (0.65) 0.24 (0.04) (0.09) 0.78 (112)%
Adj. Net Earnings Attributable to Shareholders2 42 70 14 230 293 (22)%
Adj. Net Earnings2, $/sh 0.17 0.28 0.06 0.93 1.18 (21)%
EBITDA2 70 262 205 773 1,044 (26)%
Adj. EBITDA2 292 263 256 1,047 1,133 (8)%
SHAREHOLDER RETURNS2
Shareholder dividends paid — 100 — 200 170 +18%
Share buybacks 26 20 24 66 99 (34)%
ORGANIC GROWTH2
Growth capital spend 155 116 55 448 127 +253%
Exploration spend from continuing operations 23 27 14 101 71 +42%
FINANCIAL POSITION HIGHLIGHTS
Net Debt, (Net Cash)2 555 445 (121) 555 (121) n.a.
Net Debt, (Net Cash) / LTM Trailing adj. EBITDA4 0.50x 0.40x (0.09)x 0.50x (0.09)x n.a.
1 Continuing operations excludes the 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. 3Realised gold price are inclusive of the Sabodala-Massawa
stream and the realised gains/losses from the Group’s revenue protection programme. 4Last Twelve Months (“LTM”) Trailing Adj. EBITDA includes EBITDA
generated by discontinued operations.
1
Management will host a conference call and webcast today, 27 March 2024, at 9:30 am EDT / 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. Today the
Management Discussion & Analysis, audited Financial Statements and Annual Report for the year ended 31 December 2023
have been submitted to the National Storage Mechanism and filed on SEDAR. The documents will shortly be available for
inspection on the Company’s website and at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism. In addition, the
Company has published its 2023 Sustainability Report, which will shortly be available on the Company’s website.
Ian Cockerill, Chief Executive Officer, commented: “I am delighted to have been appointed CEO of Endeavour at such a pivotal
moment. As you can see from our 2023 results, Endeavour is well positioned with a high-quality portfolio and a resilient business
model that is underpinned by a disciplined approach to capital allocation. During the year we delivered against our key objectives
and produced 1.1Moz of gold, meeting our production guidance for the eleventh consecutive year, while achieving an all-in
sustaining cost of $967 per ounce, maintaining our status as one of the lowest cost producers within the sector.
We continued to increase the quality of our portfolio as we advanced our two high-margin development projects, the Sabodala-
Massawa expansion and the Lafigué development project, which are both on budget and slightly ahead of schedule with
commissioning underway at both projects. We also divested our non-core Boungou and Wahgnion mines during the year, further
strengthening the quality of the portfolio and increasing its geographic diversification.
Our exploration programme continues to support our robust project pipeline, with the addition of 3.4 million ounces of Indicated
resources at our Tanda-Iguela discovery in Côte d’Ivoire. This 4.5 million ounce discovery is not only one of the most significant
discoveries in West Africa in the last ten years, but a potential tier 1 deposit for Endeavour, that we discovered for an industry
low cost of $11 per ounce.
In addition to investing over $548 million in organic growth and exploration during the year, we returned $266 million to our
shareholders, through dividends and share buybacks. We returned $227 dollars for every ounce of gold that we produced,
reiterating our commitment to delivering attractive shareholder returns.
The foundations are in place for 2024 to be a transformational year of delivery. I am focused on completing our growth projects
and transitioning to a more cash generative phase, that will prioritise de-levering the balance sheet and delivering enhanced
shareholder returns, ensuring that the growth that we unlock, immediately benefits all our stakeholders.”
2
INVESTIGATION INTO CHIEF EXECUTIVE OFFICER’S MISCONDUCT COMPLETED
• As previously announced on 4 January 2024, the contract with former President and Chief Executive Officer, Sébastien de
Montessus, was terminated for serious misconduct following an investigation undertaken by the Board of Directors into an
irregular payment instruction issued by him, related to the disposal of the Agbaou asset undertaken by the Company. As a
result of his serious misconduct, the Remuneration Committee of the Board determined to claw back remuneration totalling
$29.1 million as announced on 18 January 2024.
• The Board of Directors of Endeavour announced today, 27 March 2024, that the investigation is now complete and the key
outcomes are:
– No restatement of historic financial statements and no material impact on 2023 annual financial results issued today,
which are the subject of an unmodified audit opinion.
– Investigation found that Mr de Montessus, acting with certain others who are not employees of the Group:
– diverted a US$5.9 million payment to a third-party company in March 2021, and concealed his actions with
repeated false representations to management, the Board and auditors;
– caused Endeavour to make two payments totalling US$15.0 million to the same third-party company in August
and November 2020, deliberately disguising them as advance payments to a contractor through repeated false
representations to management.
– No evidence of bribery, or of any payments being made to sanctioned persons or to terrorist groups.
– Ultimate beneficiaries of these payments have not been discovered, despite extensive investigation, as the recipient
entity was liquidated immediately after the funds were transferred.
– Mr de Montessus provided implausible and untrue explanations of his conduct during the course of the Investigation.
– The Investigation is now complete.
• Summary of actions taken and proposed:
– Mr de Montessus was terminated as CEO and President on 4 January.
– Clawback of remuneration totalling US$29.1 million announced on 18 January.
– Noting that these payments involved deliberate circumvention of our existing controls framework, the Board
has nonetheless accelerated its review of internal controls in line with the new UK Corporate Governance Code,
and has made immediate adjustments to certain controls relating to M&A activity.
• For further information, please refer to the 2023 Annual Report at the following link.
• The Board appointed Ian Cockerill, formerly Deputy Chair of the Board, as permanent Chief Executive Officer and Executive
Director on 4 January. Ian brings over four decades of experience in the global natural resources sector and has held senior
operational, project and executive positions at major mining companies, including Chief Executive Officer of Gold Fields and
Anglo Coal.
SHAREHOLDER RETURNS PROGRAMME
• Endeavour is pleased to continue to deliver attractive shareholder returns, in line with its capital allocation framework. As
previously announced, the FY-2023 dividend amounts to $200.0 million, or $0.81 per share, which represents $25.0 million
more than the minimum dividend commitment of $175.0 million for the year, reiterating Endeavour's strong commitment
to paying supplemental shareholder returns. Endeavour’s H2-2023 dividend amounts to $100m or $0.41 per share and was
paid on 25 March 2024 to shareholders of record on 23 February 2024.
• Shareholder returns are being supplemented through the Company’s share buyback programme. A total of $ 65.7 million, or
3.0 million shares were repurchased during FY-2023, of which $25.7 million or 1.3 million shares were repurchased in
Q4-2023. Furthermore, a total of $12.6 million or 0.7 million shares have been repurchased in FY-2024 up until 22 March
2024.
• As shown in the table below, Endeavour has returned $266.4 million to shareholders for FY-2023 through dividends and
share buybacks, 52% above the $175.0 million minimum dividend commitment for the year, and equivalent to $227 per
ounce produced from all operations. Since the shareholder returns programme began to be paid in Q1-2021, Endeavour has
returned over $903.0 million to shareholders in the form of dividends and buybacks, which represents $393.0 million or 77%
more than its minimum commitment over the period.
3
Table 2: Actual Shareholder Returns vs. Minimum Commitment
MINIMUM ACTUAL SHAREHOLDER RETURNS SUPPLEMENTAL
(All amounts in US$m)
DIVIDEND
COMMITMENT DIVIDENDS BUYBACKS
COMPLETED
TOTAL
RETURNS
SHAREHOLDER
RETURNS
FY-2020 60 60 — 60 —
FY-2021 125 140 138 278 +153
FY-2022 150 200 99 299 +149
FY-2023 175 200 66 266 +91
TOTAL 510 600 303 903 +393
• As previously stated, Endeavour implemented a dividend policy in 2021, with the goal of supplementing its minimum
dividend commitment with additional dividends and share buybacks provided that the prevailing gold price remained above
$1,500/oz and Endeavour’s leverage remained below 0.5x Net Debt / Adj. EBITDA. Endeavour's goal is to increase its
shareholder returns programme once its organic growth projects are completed, while simultaneously strengthening its
balance sheet, thereby ensuring that its efforts to unlock growth immediately benefit all its stakeholders. Endeavour's next
semi-annual dividend is expected to be announced in Q3-2024, along with its Q2 and H1-2024 financial results.
• As announced on 20 March 2024, Endeavour has received approval from the Toronto Stock Exchange (“TSX”) to renew its
Normal Course Issuer Bid (“NCIB”) for its share buyback programme. Under the NCIB, Endeavour is entitled to repurchase
up to 5% of its total issued and outstanding shares as of 13 March 2024, or 12,259,943 shares, during the 12 month period
of the NCIB, and up to 25% of the average daily trading volume (“ADTV”) for the six months ended 29 February 2024,
calculated in accordance with the rules of the TSX for purposes of the NCIB or 96,878 shares during each trading day,
excluding purchases made in accordance with the block purchase exemptions under applicable TSX policies. All ordinary
shares repurchased under the share repurchase programme will be cancelled. The renewed NCIB commenced on 22 March
2024 and ends on 21 March 2025, or such earlier date as Endeavour may complete its purchases pursuant to the notice of
intention filed with the TSX.
• Endeavour’s previously announced automatic share purchase agreement with Stifel Nicolaus Europe Limited (“Stifel”) will
continue to allow for the purchase of ordinary shares, subject to certain trading parameters, at times when Endeavour
would not be active in the market due to regulatory close periods, its own internal trading black-out periods, insider trading
rules or otherwise. Outside of these periods, ordinary shares may be repurchased in accordance with management’s
discretion and in compliance with applicable law.
• Share purchases will be made by Stifel (or through its agent, Stifel Nicolaus Canada, Inc.) on the TSX and the London Stock
Exchange, as well as through other designated exchanges and alternative trading systems in accordance with applicable
regulatory requirements. The price paid for repurchased ordinary shares will be the market price of such ordinary shares at
the time of acquisition or such other price as may be permitted in accordance with applicable regulatory requirements and
Endeavour’s existing shareholder authority to conduct share repurchases. Endeavour intends to ask shareholders to renew
that authority at its 2024 AGM.
4
CASH FLOW SUMMARY
The table below presents the cash flow for Endeavour for the three month period ended 31 December 2023, 30 September
2023, and 31 December 2022 , and the twelve month period ended 31 December 2023 and 31 December 2022 with
accompanying explanations below.
Table 3: Cash Flow Summary
THREE MONTHS ENDED YEAR ENDED
All amounts in US$ million unless otherwise specified Notes
31 December
2023
30 September
2023
31 December
2022
31 December
2023
31 December
2022
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital1 246 121 244 746 982
Changes in working capital1 (80) (5) 44 (127) (73)
Cash generated from discontinued operations — — 23 27 108
Cash generated from operating activities [1] 167 115 311 647 1,017
Cash used in investing activities [2] (211) (195) (172) (821) (521)
Cash used in financing activities [3] (79) (125) (53) (277) (380)
Effect of exchange rate changes on cash 15 (15) 34 17 (71)
(DECREASE)/INCREASE IN CASH (108) (219) 119 (434) 45
Cash and cash equivalent position at beginning of period 625 845 833 951 906
CASH AND CASH EQUIVALENT POSITION AT END OF PERIOD 517 625 951 517 951
1Continuing Operations excludes the 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 increased by $51.8 million from $114.9 million (or $0.47 per share) in Q3-2023 to $166.7 million (or
$0.68 per share) in Q4-2023 due to a higher realised gold price, lower taxes paid related to the timing of withholding tax
payments and tax payments at Sabodala-Massawa, and lower exploration costs, partially offset by an increased working
capital outflow.
Operating cash flows decreased by $370.6 million from $1,017.1 million (or $4.10 per share) in FY-2022 to $646.5 million
(or $2.62 per share) in FY-2023 due to higher operating expenses, exploration costs and the timing of tax payments
compounded by a reduction in cashflows generated by discontinued operations following the disposal of the Boungou
and Wahgnion mines on 30 June 2023.
Notable variances are summarised below:
• Working capital was an outflow of $79.5 million in Q4-2023, an increase of $74.3 million over the Q3-2023 outflow of
$5.2 million. The outflow in Q4-2023 was largely driven by an outflow in trade and other receivables of $63.6 million
related to the timing of VAT receipts, an outflow of inventories of $15.3 million mainly related to increased stockpiles
at Sabodala-Massawa and Ity and a trade and other payables outflow of $3.0 million primarily related to the timing of
supplier payments at Houndé and Ity. The working capital outflow in Q4-2023 was partially offset by an inflow in
prepaid expenses and other items of $2.4 million related to decreased supplier prepayments at Houndé.
Working capital was an outflow of $126.9 million in FY-2023, an increase of $54.3 million over the FY-2022 outflow of
$72.6 million, driven by an increase in outflows related to trade and other receivables due to the timing of VAT
receipts and an increase in outflows related to increased stockpiles at Sabodala-Massawa and Ity.
• Gold sales from continuing operations increased from 278koz in Q3-2023 to 285koz in Q4-2023 largely due to the
timing of gold sales. The realised gold price from continuing operations increased from $1,898 per ounce for Q3-2023
to $2,007 per ounce for Q4-2023. Inclusive of the Group’s Revenue Protection Programme, the realised gold price
increased from $1,903 per ounce for Q3-2023 to $1,945 per ounce for Q4-2023.
Gold sales from continuing operations decreased from 1,150koz in FY-2022 to 1,084koz in FY-2023, due to lower
Group production from continuing operations in FY-2023. The realised gold price from continuing operations
increased from $1,791 per ounce for FY-2022 to $1,939 per ounce for FY-2023. Inclusive of the Group’s Revenue
Protection Programme, the realised gold price increased from $1,808 per ounce for FY-2022 to $1,919 per ounce for
FY-2023.
• Total cash cost per ounce decreased from $848 per ounce in Q3-2023 to $837 per ounce in Q4-2023, due to lower
cash costs at Mana driven by lower open pit mining costs, higher by-product credits and an increase in capitalised
waste, and lower cash costs at Sabodala-Massawa following increased gold production volumes, partially offset by
higher cash costs at Houndé driven by higher royalties and G&A costs.
Total cash cost per ounce increased from $723 per ounce in FY-2022 to $837 per ounce in FY-2023 due to lower
production and gold sold at Sabodala-Massa wa and Mana , increases in fuel and consumable costs across the Grou p,
higher royalty costs following a higher realised gold price and adverse impacts associated with the stronger EUR to
USD foreign exchange rate in FY-2023.
5
• As shown in the table below, i ncome taxes paid decreased by $71.1 million from $142.0 million in Q3-2023 to $70.9
million in Q4-2023 due largely to a decrease in taxes paid at Sabodala-Massawa, as the final tax payments related to
the 2022 tax year were made in Q3-2023, and a decrease in other tax payments from $50.7 million in Q3-2023 to
$30.3 million in Q4-2023 due to lower withholding tax payments linked to cash that was upstreamed from operating
entities.
Income taxes paid increased by $182.6 million from $158.3 million in FY-2022 to $340.9 million in FY-2023 due to an
increase in Sabodala-Massawa’s provisional year-end tax payments, which benefitted in the prior year from the lower
2021 tax base due to the tax holiday at the Massawa permit that expired in 2021. Taxes also increased due to
withholding tax payments on cash upstreamed from the operating entities, higher taxes paid at Ity due to changes in
taxation on the Floleu permit, and the timing of provisional tax payments at Houndé and Mana for 2023 which have a
higher tax base.
Table 4: Tax Payments from continuing operations
THREE MONTHS ENDED YEAR ENDED
All amounts in US$ million
31 December
2023
30 September
2023
31 December
2022
31 December
2023
31 December
2022
Houndé 16.5 11.3 9.8 51.7 46.8
Ity 18.6 9.3 — 61.5 30.5
Mana 5.5 5.4 2.7 26.8 12.9
Sabodala-Massawa — 65.3 — 116.4 16.8
Other1 30.3 50.7 — 84.5 51.3
Taxes paid by continuing operations 70.9 142.0 12.5 340.9 158.3
1Included in the “Other” category is income and withholding taxes paid by corporate and exploration entities.
2) Cashflows used in investing activities increased by $15.9 million from $195.1 million in Q3-2023 to $211.0 million in
Q4-2023 due to accelerated growth capital spend in Q4-2023 at the Sabodala-Massawa expansion and the Lafigué
development project.
Cashflows used in investing activities increased by $299.4 million from $521.4 million in FY-2022 to $820.8 million in
FY-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, as well as increases in non-sustaining
capital at the Ity and Mana mines. This was partially offset by a decrease in sustaining capital at Sabodala-Massawa.
• Sustaining capital from continuing operations decreased from $22.5 million in Q3-2023 to $20.0 million in Q4-2023
due to lower sustaining capital expenditure at Houndé and Sabodala-Massawa following heavy mining equipment
purchases made in the prior quarter.
Sustaining capital from continuing operations decreased from $97.5 million in FY-2022 to $91.8 million in FY-2023 due
to decreased sustaining capital at Sabodala-Massawa related to decreased waste development activities, partially
offset by an increase in sustaining capital at Mana related to increased underground development and stope
production activity. Sustaining capital expenditure at Ity and Houndé were broadly consistent with the prior year.
• Non-sustaining capital from continuing operations increased from $49.5 million in Q3-2023 to $52.5 million in
Q4-2023, largely due to an increase in non-sustaining capital expenditure at Houndé related to pre-stripping activities
in the Kari Pump pit, and at Ity related to increased cutback activities at the Walter pit and increased spend on the
Mineral Sizer optimisation initiative. T his was partially offset by decreased non-sustaining capital at Sabodala-
Massawa and Mana related to decreased non-sustaining waste development.
Non-sustaining capital from continuing operations increased from $192.6 million in FY-2022 to $245.3 million in
FY-2023 due to increased non-sustaining capital expenditure at Ity related to the construction of the Recyn and
Mineral Sizer optimisation initiatives, the embankment raise at TSF 1 and the construction of TSF 2, and at Sabodala-
Massawa due to increased pre-stripping activities as new pits were opened. This was partially offset by decreased
non-sustaining capital expe nditure at Mana as underground mine development advanced to stope production
incurring less non-sustaining capital underground waste development . Non-sustaining capital expenditure at Houndé
was broadly consistent with the prior year.
• Growth capital increased from $116.2 million in Q3-2023 to $155.0 million in Q4-2023, as construction activities at the
Sabodala-Massawa expansion and the Lafigué development project accelerated ahead of first gold production at both
projects, expected in Q2-2024. Growth capital expenditure during the quarter also included $1.5 million for technical
study work related to the Kalana project.
Growth capital increased from $126.5 million in FY-2022 to $447.5 million in FY-2023 largely due to the acceleration
of construction activities at the Sabodala-Massawa expansion, which was launched in Q2-2022, and the Lafigué
development project, which was launched in Q4-2022.
3) Cash flows used in financing activities decreased by $45.6 million from an outflow of $124.6 million in Q3-2023 to an
outflow of $79.0 million in Q4-2023 largely due to the timing of dividend payments to shareholders and reduced dividend
payments to minorities compared to the prio r period. Cash flows used in financing activities in Q4-2023 included a $70.0
6
million repayment of the RCF during the quarter, payments of financing and other fees of $36.7 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 $24.7 million, payment of dividends to minorities of $12.7 million, and repayment of
finance and lease obligations of $7.0 million. Financing cash outflows were party offset by a $72.1 million drawdown of
the Lafigué term loan.
Cash flows used in financing activities decreased by $103.5 million from an outflow of $380.1 million in FY-2022 to an
outflow of $276.6 million in FY-2023 largely due to drawings on the Company’s RCF during the year offsetting the
financing cash outflows from the settlement of the Company’s convertible notes. Cash flows used in financing activities in
FY-2023 included the $330.0 million settlement of the Company’s convertible notes, dividends paid to shareholders of
$200.4 million, payments of dividends to minorities of $74.7 million, repayment of the drawn portions of the Company’s
RCF of $70.0 million, payments of financing and other fees of $68.6 million largely 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 $61.5 million, settlement of contingent considerations of $50.0 million that was paid to Barrick Gold as
part of the Massawa acquisition, cash settlement of call rights of $28.5 million related to outstanding call rights from
Teranga, repayment of finance and lease obligations of $20.5 million and payments for the settlement of tracker shares
of $18.4 million. Financing cash outflows were partly offset by a $642.2 million drawdown of long-term debt facilities
(including $535.0 million drawn from the Company’s RCF and $107.2 million drawn from the Lafigué term loan) and
receipts on exercise of options and warrants of $5.9 million.
7
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three month periods ended 31 December
2023, 30 September 2023 , and 31 December 2022 and the twelve month periods ended 31 December 2023 and 31 December
2022 with accompanying explanations below.
Table 5: Earnings from Continuing Operations1
THREE MONTHS ENDED YEAR ENDED
All amounts in US$ million unless otherwise specified Notes
31 December
2023
30 September
2023
31 December
2022
31 December
2023
31 December
2022
Revenue [4] 579 530 508 2,115 2,069
Operating expenses [5] (209) (205) (186) (787) (720)
Depreciation and depletion [6] (133) (114) (137) (448) (476)
Royalties [7] (40) (32) (31) (134) (125)
Earnings from mine operations 198 178 154 745 749
Corporate costs [8] (11) (10) (15) (49) (48)
Impairment of mining interests and goodwill [9] (108) — (3) (123) (3)
Share-based compensation (7) (5) (18) (29) (33)
Other expense [10] (45) (7) (28) (55) (44)
Exploration costs [11] (6) (15) (7) (48) (34)
Earnings from operations 21 141 83 443 587
(Loss)/gain on financial instruments [12] (84) 7 (15) (118) (19)
Finance costs (19) (19) (15) (71) (61)
Earnings before taxes (82) 129 54 254 507
Current income tax expense [13] (75) (54) (48) (268) (258)
Deferred income tax (expense)/recovery [14] 10 (2) 1 57 8
Net comprehensive earnings from continuing operations [15] (148) 74 7 43 257
Add-back adjustments [16] 205 13 19 262 109
Adjusted net earnings from continuing operations 57 87 26 305 366
Portion attributable to non-controlling interests 15 17 12 75 73
Adjusted net earnings from continuing operations attributable to
shareholders of the Company [17] 42 69 14 230 293
Adjusted net earnings per share from continuing operations 0.17 0.28 0.06 0.93 1.18
1 Continuing Operations excludes the Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine which was divested on 10 March
2022.
NOTES:
4) Revenue increased by $49.3 million from $530.0 million in Q3-2023 to $579.3 million in Q4-2023 due to a $109 per ounce
increase in the realised gold price from $1,898 per ounce in Q3-2023 to $2,007 per ounce in Q4-2023, exclusive of the
Company’s Revenue Protection Programme, further compounded by an increase in gold sales from continuing operations
from 278koz in Q3-2023 to 285koz in Q4-2023 due to the timing of gold sales.
Revenue increased by $45.6 million from $2,069.0 million in FY-2022 to $2,114.6 million in FY-2023 due to a $148 per
ounce increase in the realised gold price, exclusive of the Company’s Revenue Protection Programme, from $1,791 per
ounce in FY-2022 to $1,939 per ounce in FY-2023, which was partially offset by a decrease in gold sales from continuing
operations from 1,150koz in FY-2022 to 1,084koz in FY-2023 due to lower production at the Sabodala-Massawa and
Mana mines.
5) Operating expenses increased by $3.4 million from $205.3 million in Q3-2023 to $208.7 million in Q4-2023 largely due to
the matching of accrued expenses from Q3-2023 associated to ounces produced in Q3-2023 and subsequently sold in
Q4-2023, particularly at Sabodala-Massawa where ounces sold exceeded quarterly production.
Operating expenses increased by $67.2 million from $720.0 million in FY-2022 to $787.2 million in FY-2023 due to
increased mining volumes at Houndé and Mana, increased processing volumes at Houndé, Sabodala-Massawa and Ity,
increased fuel and consumable costs, and the impact of the stronger EUR to USD foreign exchange rate increasing costs in
FY-2023 compared to FY-2022.
6) Depreciation and depletion increased by $18.2 million from $114.4 million in Q3-2023 to $132.6 million in Q4-2023
mainly due to higher production volumes achieved at Sabodala-Massawa as mining in the Sabodala pit, which is
approaching the end of its mine life, incorporated higher associated depreciation rates.
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