ENDEAVOUR REPORTS STRONG FY-2022 RESULTS Production of 1.4Moz at AISC of $928/oz
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$, preliminary results (unaudited)
ENDEAVOUR REPORTS STRONG FY-2022 RESULTS
Production of 1.4Moz at AISC of $928/oz • Operating cash flow of $1.0 billion • FY-2022 shareholder returns of $299m
OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)
• Q4-2022 production of 355koz at an AISC of $954/oz; totalling 1,400koz at an AISC of $928/oz for FY-2022
• 10th consecutive year of achieving or beating production and AISC guidance
• Adjusted Net Earnings of $65m, or $0.26/sh in Q4-2022; totalling $405m, or $1.63/sh for FY-2022
• Net loss attributable to shareholders of $256m, or $1.04/sh, in Q4-2022 (including impairment of $360m); totalling
$66m, or $0.27/sh, for FY-2022
• Operating Cash Flow of $311m, or $1.26/sh, in Q4-2022; totalling $1,017m, or $4.10/sh, for FY-2022
• Strong financial position at year-end with $121m of net cash, up $45m over the previous year
SHAREHOLDER RETURNS
• FY-2022 dividend of $200m represents $50m more than the minimum committed dividend for the year
• Share buybacks continued to supplement shareholder returns with $99m completed in FY-2022
ORGANIC GROWTH
• Sabodala-Massawa expansion and Lafigué greenfield project construction are both on budget and on schedule for
production in Q2 and Q3-2024, respectively
• Continued strong exploration focus in 2023 with $70m Group budget; key focus area is the new Tanda-Iguela discovery
• Group M&I resources remained flat year-on-year at 27.3Moz, while P&P reserves decreased by 1.0Moz to 16.8Moz as
near mine exploration partially replaced depletion
London, 9 March 2023 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the
“Company”) is pleased to announce its FY-2022 operating and financial results, with highlights provided in Table 1 below.
Table 1: Highlights for Continuing Operations1
All amounts in US$ million unless otherwise specified
THREE MONTHS ENDED YEAR ENDED
31 December
2022
30 September
2022
31 December
2021
31 December
2022
31 December
2021
Δ FY-2022 vs.
FY-2021
OPERATING DATA
Gold Production, koz 355 343 378 1,400 1,436 (3)%
Gold sold, koz 352 338 370 1,393 1,478 (6)%
All-in Sustaining Cost2, $/oz 954 960 894 928 864 +7%
Realised Gold Price, $/oz3 1,758 1,737 1,775 1,807 1,781 +1%
CASH FLOW
Operating Cash Flow before Changes in WC 281 195 318 1,109 1,133 (2)%
Operating Cash Flow before Changes in WC2, $/sh 1.14 0.79 1.28 4.47 4.72 (5)%
Operating Cash Flow 311 154 341 1,017 1,132 (10)%
Operating Cash Flow2, $/sh 1.26 0.62 1.37 4.10 4.72 (13)%
PROFITABILITY
EBITDA2 (110) 302 128 827 1,113 (26)%
Adj. EBITDA2 288 275 358 1,284 1,464 (12)%
Net (Loss)/Earnings Attributable to Shareholders (256) 58 (87) (66) 245 (127)%
Net (Loss)/Earnings, $/sh (1.04) 0.23 (0.35) (0.27) 1.02 (126)%
Adj. Net Earnings Attributable to Shareholders2 65 54 148 405 605 (33)%
Adj. Net Earnings2, $/sh 0.26 0.22 0.59 1.63 2.52 (35)%
SHAREHOLDER RETURNS
Shareholder dividends paid — 100 — 170 130 +31%
Share buybacks 24 37 44 99 138 (28)%
Total Shareholder Returns 24 137 44 269 268 —%
ORGANIC GROWTH
Growth capital spend2 (55) (30) (12) (127) (63) +102%
FINANCIAL POSITION HIGHLIGHTS
Cash 951 833 906 951 906 +5%
Principal debt (830) (830) (830) (830) (830) —%
Net Cash2 121 3 76 121 76 +59%
1
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. 3 Realised gold price are inclusive of the Sabodala-Massawa stream and the
realised gains/losses from the Group’s revenue protection programme. Please refer to non-GAAP measures section for the calculation of the realised gold price
for all periods presented.
Management will host a webcast and conference call today, 9 March 2023, at 8:30 am EST / 1:30 pm GMT . For instructions on
how to participate, please refer to the webcast and conference call section at the end of the news release. The Q4 and FY-2022
MD&A and audited Financial Statements will be filed on the Company’s website, SEDAR and the National Storage Mechanism on
or around 16 March 2023.
Sebastien de Montessus, President and CEO, commented: “2022 was another successful year for Endeavour during which we
delivered on all our objectives and met guidance for a tenth consecutive year.
We produced 1.4Moz of gold, achieving the top end of our production guidance range and we are particularly pleased to have
achieved our all-in sustaining cost guidance of below $930/oz as a result of our strong production performance and optimisation
initiatives, despite the inflationary pressures impacting the industry. This strong operating performance generated over $1.0
billion in operating cash flow which has allowed us to deliver significant value to all stakeholders while continuing to fund our
organic growth and improving our balance sheet strength with more than $120 million of net cash at year end.
As a trusted partner, we were pleased to contribute approximately $400 million to our host countries through tax, royalty and
minority interest dividend payments, in addition to continuing our focus on local procurement. Through our commitment to
reward shareholders, we returned approximately $300 million in the form of dividends and share buybacks to shareholders,
equivalent to $212/oz of gold produced, which represents double our minimum target for the year.
We are also pleased to report that the Sabodala-Massawa expansion and the Lafigué greenfield build are progressing well with
both projects on track for first production in 2024, with costs in line with expectations. Moreover, our exploration programme
continues to provide a platform for future growth with the discovery of the promising Tanda-Iguela deposit in Cote d’Ivoire,
which has the potential to become another cornerstone asset for the Company.
We have entered 2023 with considerable momentum and we look forward to continuing to deliver against our strategic
objectives for the benefit of all our stakeholders.”
FY-2022 SCORECARD
The key targets set for FY-2022, along with the results achieved, are summarised in Table 2 below.
Table 2: FY-2022 Scorecard
2022 TARGET 2022 ACHIEVEMENT
Production, koz 1,315 - 1,400 1,400
AISC, $/oz 880 - 930 928
Leverage <0.5x Net Debt/adj. EBITDA LTM $121m Net Cash
Total shareholder capital returns $150m minimum dividend $299m shareholder returns
SHAREHOLDER RETURNS PROGRAMME
• Endeavour’s shareholder returns programme is composed of a minimum progressive dividend that may be supplemented
with additional dividends and share buybacks, providing the prevailing gold price remains above $1,500/oz, and that
Endeavour’s leverage remains below 0.5x Net Debt / adjusted EBITDA. The minimum dividend commitment was set at $150.0
million and $175.0 million for FY-2022 and FY-2023 respectively.
• As previously announced, Endeavour’s FY-2022 dividend amounts to $200.0 million or approximately $0.81 per share, which
represents $50.0 million or 33% more than the minimum dividend commitment for the year. The ex-dividend date for the
H2-2022 interim dividend was 23 February 2023 and the record date was 24 February 2023. The dividend will be paid on or
about 28 March 2023.
• Shareholder returns were further supplemented with a total of $98.7 million or 4.6 million shares repurchased through the
Company’s share buyback programme in FY-2022, of which $24.2 million or 1.2 million shares were repurchased in Q4-2022.
Since the commencement of the buyback programme in April 2021, a total of $237.0 million, or 10.6 million shares have
been repurchased and cancelled as at 31 December 2022.
• As shown in Table 3 below, Endeavour returned $299.0 million to shareholders for FY-2022 through dividends and share
buybacks, equivalent to $212 per ounce produced. Since the launch of the Company’s shareholder returns programme in
early 2021, a cumulative $637 million (including the upcoming H2-2022 dividend) has been delivered to shareholders in the
form of dividends and share buybacks.
2
Table 3: Actual Shareholder Returns vs. Minimum Commitment
MINIMUM ACTUAL SHAREHOLDER RETURNS SUPPLEMENTAL
All amounts in US$ million
DIVIDEND
COMMITMENT DIVIDENDS BUYBACKS
COMPLETED
TOTAL
RETURNS
SHAREHOLDER
RETURNS2
FY-2020 60 60 0 60 0
FY-2021 125 140 138 278 +153
FY-20221 150 200 99 299 +149
TOTAL 335 400 237 637 +302
1H2-2022 dividend declared on 23 January 2023, to be paid on or about 28 March 2023. 2Dividends in excess of Endeavour’s minimum dividend commitment plus
share buybacks completed.
CASH FLOW SUMMARY
The following table presents the cash flow and cash position for Endeavour, with accompanying explanations below.
Table 4: Cash Flow and Cash Position
THREE MONTHS ENDED YEAR ENDED
All amounts in US$ million unless otherwise specified
31 December
2022
30 September
2022
31 December
2021
31 December
2022
31 December
2021
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital
from continuing operations 281 195 318 1,109 1,133
Changes in working capital 30 (41) 23 (92) (1)
Cash generated from discontinued operations — — 12 5 24
Cash generated from operating activities [1] 311 154 353 1,022 1,156
Cash used in investing activities [2] (172) (111) (132) (521) (512)
Cash used in financing activities [3] (54) (256) (68) (385) (421)
Effect of exchange rate changes on cash 34 (52) (7) (71) (32)
INCREASE/(DECREASE) IN CASH 119 (264) 146 45 192
Cash position at beginning of period 833 1,097 760 906 715
CASH POSITION AT END OF PERIOD 951 833 906 951 906
NOTES:
1) Operating cash flows increased by $157.1 million from $153.7 million (or $0.62 per share) in Q3-2022 to $310.8 million
(or $1.26 per share) in Q4-2022 largely due to higher gold sales at higher realised gold prices, a working capital inflow and
a decrease in operating expenses and income taxes paid.
Operating cash flows decreased by $134.3 million from $1,156.3 million (or $4.82 per share) in FY-2021 to $1,022.0
million (or $4.12 per share) in FY-2022 largely due to a higher working capital outflow, and the impact of slightly lower
gold sales at higher operating costs in FY-2022.
Notable variances are summarised below:
• Working capital was an inflow of $30.0 million in Q4-2022, an increase of $71.4 million over Q3-2022, largely due to
an increase in inflows from trade and other payables, partially offset by higher outflows from inventories. Trade and
other payables were an inflow of $32.5 million in Q4-2022 and primarily related to the timing of supplier, social
development fund and royalty payments at Ity, Houndé, Sabodala-Massawa and Mana. Prepaid expenses and other
were an inflow of $5.0 million in Q4-2022 related primarily to decreased prepayments at Houndé. Trade and other
receivables were an inflow of $8.8 million for Q4-2022, primarily related to inflows from receivables from contractors,
partially offset by an increase in VAT receivables at Sabodala-Massawa. Inventories were an outflow of $16.3 million
in Q4-2022 driven by an increase in stockpiles at Sabodala-Massawa and an increase in consumables across the
Group, partially offset by stockpile drawdowns at Wahgnion, Ity, Boungou and Houndé.
Working capital was an outflow of $91.6 million in FY-2022, an increase of $91.1 million over FY-2021, mainly due to
an increase in stockpiles at Sabodala-Massawa, Houndé and Ity, and an increase in VAT receivables at Sabodala-
Massawa following the expiry of the VAT exemption status at Massawa in Q2-2022. Trade and other payables was an
outflow of $10.6 million in FY-2022 compared to an outflow of $64.1 million in FY-2021 largely due to the prior period
including increased payments related to the Teranga acquisition. Inventories were an outflow of $57.5 million in
FY-2022 mainly due to an increase in stockpiles at the Houndé and Ity mines, and the stockpiling of refractory ore at
the Sabodala-Massawa mine ahead of startup of the BIOX® Project in Q2-2024, as well as an increase in consumables
across the Group to help mitigate any potential supply chain challenges. Prepaid expenses and other was an outflow
of $9.9 million in FY-2022 mainly related to advanced security payments. Trade and other receivables were an outflow
3
of $13.6 million in FY-2022 mainly due to an increase in VAT receivables at Sabodala-Massawa as well as increased
advanced royalty payments at Houndé and Boungou.
• Gold sales from continuing operations increased from 338koz in Q3-2022 to 352koz in Q4-2022 due to increased sales
at the Ity, Sabodala-Massawa and Wahgnion mines as a result of increased production. The realised gold price from
continuing operations for Q4-2022 was $1,758 per ounce compared to $1,737 per ounce for Q3-2022. Total cash cost
per ounce decreased slightly from $839 per ounce in Q3-2022 to $829 per ounce in Q4-2022, primarily related to
higher sales and lower operating expenses compared to the prior quarter.
Gold sales from continuing operations decreased from 1,478koz in FY-2021 to 1,393koz in FY-2022 due to lower sales
at the Boungou, Mana, Wahgnion and Sabodala-Massawa mines, which was partially offset by higher sales at the Ity
and Houndé mines. The realised gold price from continuing operations was $1,807 per ounce for FY-2022 compared
to $1,781 per ounce for FY-2021. Total cash cost increased from $718 per ounce in FY-2021 to $803 per ounce in
FY-2022 largely due to the higher fuel and explosive costs, when compared to the prior period, and the lower number
of ounces sold.
• Income taxes paid decreased by $66.6 million from $81.4 million in Q3-2022 to $14.8 million in Q4-2022, primarily
due to the timing around payments of withholding taxes on dividends from mine sites, which are generally incurred in
Q3-2022, and the timing of provisional tax payments.
Income taxes paid decreased by $36.5 million from $225.7 million in FY-2021 to $189.2 million in FY-2022, primarily
due to lower tax payments in the year due to lower taxable income, in particular at the Boungou mine, which was
partially offset by higher payments of withholding taxes on dividends from mine sites.
2) Cashflows used in investing activities increased by $61.4 million from $110.8 million in Q3-2022 to $172.2 million in
Q4-2022 largely due to increased growth capital spend at the Sabodala-Massawa Expansion and Lafigué development
projects.
Cashflows used in investing activities for FY-2022 were consistent with FY-2021.
• Sustaining capital from continuing operations increased slightly from $28.8 million in Q3-2022 to $29.6 million in
Q4-2022 primarily due to increased capitalised waste stripping activity at the Houndé and Sabodala-Massawa mines.
Sustaining capital from continuing operations decreased from $166.4 million in FY-2021 to $127.3 million in FY-2022,
largely due to reduced capitalised waste stripping at the Boungou, Houndé, Ity and Sabodala-Massawa mines.
• Non-sustaining capital from continuing operations decreased slightly from $80.1 million in Q3-2022 to $77.1 million in
Q4-2022, largely due to reduced resettlement costs at the Sabodala-Massawa mine as that project neared completion
and lower pre-stripping activities at the Houndé and Sabodala-Massawa mines, which was partially offset by
increased spending on the Recyn project at Ity.
Non-sustaining capital from continuing operations increased from $209.9 million in FY-2021 to $251.7 million in
FY-2022 due to the construction of the Recyanidation project at Ity, additional pre-stripping activity at Ity and Houndé
mines as production exceeded the guided ranges and TSF raises at the Boungou, Wahgnion and Sabodala-Massawa
mines.
• Growth capital, inclusive of the non-cash movements in project working capital, increased from $29.7 million in
Q3-2022 to $54.6 million in Q4-2022, as construction activities at the Lafigué project were launched, activity at the
Sabodala-Massawa Expansion project accelerated and the Definitive Feasibility Studies (“DFS”) were finalised at
Lafigué and continued at Kalana. In Q4-2022, the cash outflow related to growth projects amounted to $66.6 million.
Growth capital, inclusive of the non-cash movements in project working capital, was $126.5 million in FY-2022 due to
the construction of the Sabodala-Massawa Expansion project and the Lafigué project, which both commenced during
the year, as well as costs related to the DFS’s for the growth projects. In FY-2022, the cash outflow related to growth
projects amounted to $111.5 million.
3) Cash flows used in financing activities decreased by $202.0 million from $255.5 million in Q3-2022 to $53.5 million in
Q4-2022, following the payment of the $ 97.3 million interim shareholder dividend, $57.2 million paid to minority
shareholders and repayment of $50.0 million under the Company’s revolving credit facility during Q3-2022. Financing
activities for Q4-2022 primarily consisted of $24.2 million for share buybacks, $16.0 million for the settlement of
employee share plan liabilities, $15.6 million payments of financing and other fees, and $5.0 million repayment of finance
and lease obligations, which was partially offset by $7.3 million in proceeds received from the exercise of options and
warrants.
Cash flows used in financing activities decreased by $36.3 million from $421.3 million in FY-2021 to $385.0 million in
FY-2022, and included dividend payments of $166.6 million, share buybacks of $98.7 million, dividends to minority
interests of $57.2 million and payment of financing fees of $46.6 million.
4
EARNINGS SUMMARY
The following table presents the earnings and adjusted earnings for Endeavour, with accompanying explanations below.
Table 5: Earnings from Continuing Operations
THREE MONTHS ENDED YEAR ENDED
All amounts in US$ million unless otherwise specified
31 December
2022
30 September
2022
31 December
2021
31 December
2022
31 December
2021
Revenue [6] 617 570 666 2,508 2,642
Operating expenses [7] (250) (256) (230) (980) (983)
Depreciation and depletion [7] (173) (151) (191) (616) (600)
Royalties [8] (39) (35) (42) (153) (162)
Earnings from mine operations 156 128 203 760 898
Corporate costs [9] (15) (12) (20) (48) (63)
Impairment of mining interests and goodwill [10] (360) — (248) (360) (248)
Share-based compensation (18) (4) (7) (33) (33)
Other expense (29) (8) (4) (52) (46)
Exploration costs (7) (12) (5) (34) (24)
(Loss)/earnings from operations (273) 91 (82) 233 486
(Loss)/gain on financial instruments [11] (10) 60 19 (22) 28
Finance costs (16) (19) (25) (66) (66)
(Loss)/earnings before taxes (299) 132 (88) 145 448
Current income tax expense [12] (57) (77) (38) (273) (195)
Deferred income tax recovery [13] 89 12 34 98 52
Net comprehensive (loss)/earnings from continuing
operations [14] (267) 67 (92) (31) 305
Add-back adjustments [15] 361 5 237 482 385
Adjusted net earnings from continuing operations 93 72 144 451 689
Portion attributable to non-controlling interests [16] 29 18 (4) 47 84
Adjusted net earnings from continuing operations
attributable to shareholders of the Company [17] 64 54 148 405 605
Earnings per share from continuing operations (1.04) 0.23 (0.35) (0.27) 1.02
Adjusted net earnings per share from continuing
operations 0.26 0.22 0.59 1.63 2.52
NOTES:
6) Revenue increased by $47.0 million from $570.0 million in Q3-2022 to $617.0 million in Q4-2022 mainly due to higher
gold sales from the Sabodala-Massawa, Ity and Wahgnion mines and a higher realised gold price. Gold sales from
continuing operations increased from 338koz in Q3-2022 to 352koz in Q4-2022. The realised gold price, including the
realised gain on the gold forward contract and gold collars, increased from $1,686 per ounce in Q3-2022 to $1,751 per
ounce in Q4-2022. When e xcluding the impact of the realised gains on the gold forward contracts and gold collars, the
realised gold price increased from $1,679 per ounce in Q3-2022 to $1,742 per ounce in Q4-2022.
Revenue decreased by $134.0 million from $2,642.1 million in FY-2021 to $2,508.1 million in FY-2022 due to the lower
gold sales compared to the prior period, which was partially offset by the higher realised gold price. Gold sales from
continuing operations decreased from 1,478koz in FY-2021 to 1,393koz in FY-2022. The realised gold price, including the
impact of the Group’s revenue protection programme, increased from $1,781 per ounce for FY-2021 to $1,807 per ounce
in FY-2022.
7) Operating expenses were stable at $249.5 million in Q4-2022 compared to the prior period. Depreciation and depletion
increased by $21.8 million from $151.2 million in Q3-2022 to $173.0 million in Q4-2022 mainly due to increases at the
Sabodala-Massawa, Ity and Wahgnion mines, which was partially offset by decreases at the Houndé and Boungou mines .
Increases at the Sabodala-Massawa mine were due to the commencement of mining at the Bambaraya deposit, while the
increase at Ity was due to high production during the period and at Wahgnion due to the decrease in the reserve base.
Operating expenses of $979.5 million in FY-2022 were largely consistent with the prior period as increased operating
costs at the Sabodala-Massawa and Wahgnion mines, in addition to higher fuel and consumable costs across the
portfolio, were offset by the decrease in expenses related to the reversal of fair value adjustments to inventory that
impacted FY-2021. Depreciation and depletion for FY-2022 increased by $16.2 million from $599.8 million in FY-2021 to
$616.0 million in FY-2022 largely due to increases at the Houndé, Mana, Sabodala-Massawa and Wahgnion mines, which
was partially offset by decreases at the Boungou and Ity mines. Increased depletion at the Sabodala-Massawa and
5
Wahgnion mines is due to a full year of operations in FY-2022, following the acquisition of Teranga in February 2021. The
increase at the Mana mine is due to a slight reduction in the depletable base this year, and the increase at Ity mine is due
to the commencement of mining at new deposits. This was partially offset by decreases at the Boungou and Ity mines
due to lower production and a higher depletable reserves base, respectively.
8) Royalties increased from $35.3 million in Q3-2022 to $38.5 million in Q4-2022 largely due to more gold ounces sold at a
higher realised gold price in Q4-2022.
Royalties decreased from $162.3 million in FY-2021 to $152.9 million in FY-2022 due to lower gold sales from the Group
which was partially offset by the higher realised gold price.
9) Corporate costs increased slightly from $12.4 million in Q3-2022 to $14.5 million in Q4-2022 primarily due to increased
professional fees and seasonally higher employee costs.
Corporate costs decreased from $62.5 million in FY-2021 to $47.7 million in FY-2022 due to the non-recurring costs
associated with the LSE listing in Q2-2021.
10) The Group recognised a non-cash impairment of $360.3 million in FY-2022 consisting of $163.3 million and $197.0 million
in relation to the mining interest at the Boungou and Wahgnion mines, respectively. The impairments follow updates to
the life of mine plans which reflect an updated estimate of the reserve and resources and estimated operating costs, with
further details found in Note 19.
11) The loss/gain on financial instruments decreased from a gain of $60.1 million in Q3-2022 to a loss of $10.4 million in
Q4-2022 largely due to the impact of unrealised losses on gold forwards and collars of $62.9 million, among other items,
which were partially offset by foreign exchange gains of $43.9 million.
During Q4-2022, the loss on financial instruments consisted of an unrealised loss on gold forwards and collars of $62.9
million, an unrealised loss on the fair value of call rights of $6.3 million, an unrealised loss on other financial instruments
of $1.8 million, and an unrealised loss on the change in the fair value of contingent considerations of $0.9 million. These
items were partially offset by an unrealised foreign exchange gain of $43.9 million, an unrealised gain on foreign currency
contracts of $11.1 million as detailed below, an unrealised gain on the revaluation of the conversion option on the
convertible senior notes (the “Convertible Notes”) of $4.0 million and an unrealised gain on the fair value of receivables
of $3.2 million. In addition, during Q4-2022, the Group realised a gain on gold collars and forwards of $5.7 million.
The loss on financial instruments in FY-2022 was $22.3 million compared to a $28.0 million gain in FY-2021. The loss in
FY-2022 is due primarily to the impact of unrealised foreign exchange losses of $45.7 million as the Euro weakened
against the USD, unrealised losses on gold forwards and collars of $23.8 million reflecting the higher gold price, an
unrealised loss in the change of fair value of warrants of $3.3 million, an unrealised loss on the change in fair value of
contingent consideration of $1.2 million, and an unrealised loss on the change in fair value of call rights of $0.3 million. In
addition, during the year, the Group realised a loss on the early redemption of senior notes of $4.6 million and a realised
loss on foreign exchange contracts of $0.4 million. These losses were partly offset by an unrealised gain on conversion
options on the Convertible Notes of $30.3 million, a realised gain on gold collars and forward contracts settled during the
year of $19.8 million an unrealised gain on foreign exchange contracts of $5.1 million, and a realised gain on the sale of
financial assets of $4.5 million upon disposal of certain NSR’s by the Company during the year.
See the Revenue Protection Programme section for f urther details about the gold collar and forward sales contracts. In
addition, the Group has entered into certain foreign exchange forward contracts to increase cost certainty for a portion
of its upcoming growth capital expenditure at its Sabodala-Massawa Expansion and Lafigué growth projects. Foreign
exchange forward contracts are across both the Euro and the Australian Dollar for a total notional quantum of
approximately €148.4 million at a blended rate of 0.98 EUR:USD split over 2022, 2023 and 2024 at approximately 39%,
53% and 9% respectively and approximately AU$58.9 million at a blended rate of 0.69 AUD:USD split approximately 28%,
62% and 10% respectively over the same period.
12) Current income tax expense decreased by $20.1 million from $77.0 million in Q3-2022 to $56.9 million in Q4-2022 largely
due to the withholding tax expense recognised on dividends declared during Q3-2022 as part of the cash upstreaming
process. The Group increased the amount of cash offshore ahead of the Company settling its Convertible Notes at
maturity through a combination of $330.0 million in cash for the principal amount and 835,254 shares which were
delivered to settle the in-the-money option value.
Current income taxes increased by $78.2 million from $195.1 million in FY-2021 to $273.3 million in FY-2022, primarily
due to higher taxes at Sabodala-Massawa following the cessation of the tax holiday at Massawa in 2022 and increased
withholding tax expense associated with the upstreaming of cash as detailed above.
13) Deferred income tax recovery increased by $76.9 million from $11.9 million in Q3-2022 to $88.8 million in Q4-2022, due
primarily to the reversal of deferred tax liabilities recognised on mining interests as a result of the impairment expense
recognised for the Wahgnion and Boungou mines.
Deferred income tax recovery increased by $45.9 million from $51.8 million in FY-2021 to $97.7 million in FY-2022, which
was primarily due to the reversal of deferred tax liabilities recognised on mining interests as a result of the impairment
expense recognised for the Wahgnion and Boungou mines.
6
14) Net comprehensive earnings from continuing operations decreased by $334.5 million from $67.1 million in Q3-2022 to a
loss from continuing operations of $267.4 million in Q4-2022 largely due to the impairment of $360.3 million and higher
other expenses mainly related to higher provisions for claims, offset by the higher earnings from gold sales in the quarter.
For FY-2022, the Group recognised a net comprehensive loss from continuing operations of $31.0 million compared to
net comprehensive earnings from continuing operations of $304.6 million in FY-2021, due primarily to an increase in the
impairment expense of $112.6 million relative to the prior year, a decrease in earnings from mine operations of $137.8
million due to lower gold ounces sold and higher costs in the year, and an increase in the loss on financial instruments of
$44.0 million due to foreign exchange losses in the year, primarily on cash held in non-US dollar currencies.
15) For Q4-2022, adjustments made to calculate adjusted net earnings from continuing operations include the impairment
charge on mineral interests of $360.3 million as outlined in Note 10, other expenses of $29.4 million that are detailed in
Note 14, the net unrealised loss on financial instruments of $16.1 million largely related to foreign exchange movements
as the euro strengthened against the dollar through Q4-2022, and positive non-cash, tax and other adjustments of $45.1
million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances.
For FY-2022, adjustments made to calculated adjusted net earnings from continuing operations include an impairment
charge on mineral interests of $360.3 million, other expenses of $51.9 million that were primarily related to expenses for
the provisions for legal claims and the write-off of Group receivables, the net loss on financial instruments of $42.1
million largely related to remeasurement of foreign exchange, and negative non-cash, tax and other adjustments of $28.1
million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances.
16) Adjusted net earnings from continuing operations attributable to non-controlling interests increased to $28.8 million in
Q4-2022 from $18.5 million in Q3-2022 due to higher earnings from mine operations during Q4-2022.
Adjusted net earnings from continuing operations attributable to non-controlling interests decreased to $46.7 million in
FY-2022 from $84.2 million in FY-2021 due to lower earnings from operations compared to the prior period.
17) Adjusted net earnings attributable to shareholders for continuing operations increased by $11.0 million to $64.5 million
(or $0.26 per share) in Q4-2022 compared to $53.5 million (or $0.22 per share) in Q3-2022 due largely to higher earnings
from mining operations as a result of lower taxes and higher group production at a higher realised gold price, partially
offset by higher depreciation.
In FY-2022, adjusted net earnings attributable to shareholders for continuing operations decreased to $404.7 million (or
$1.63 per share) from $605.2 million (or $2.52 per share) in FY-2021 due to lower gold production, higher operating
expenses and higher taxes, due in part to the higher withholding taxes paid during the year.
7
FINANCIAL POSITION AND LIQUIDITY SUMMARY
The following tables present the summarised statement of financial position and liquidity for Endeavour, with accompanying
explanations below.
Table 6: Summarised Statement of Financial Position
All amounts in US$ million unless otherwise specified
As at 31 December
2022
As at 31 December
2021
ASSETS
Cash and cash equivalents 951.1 906.2
Other current assets [18] 495.3 459.8
Total current assets 1,446.4 1,366.0
Mining interests [19] 4,517.0 4,980.2
Other long term assets [20] 451.3 424.7
TOTAL ASSETS 6,414.7 6,770.9
LIABILITIES
Other current liabilities [21] 461.9 397.8
Current portion long-term debt [22] 336.6 —
Income taxes payable [23] 247.1 169.3
Total current liabilities 1,045.6 567.1
Long-term debt [24] 488.1 841.9
Other long-term liabilities 219.1 303.9
Deferred income taxes 574.6 672.3
TOTAL LIABILITIES 2,327.4 2,385.2
TOTAL EQUITY 4,087.3 4,385.7
TOTAL EQUITY AND LIABILITIES 6,414.7 6,770.9
1Net debt and Adjusted EBITDA are Non-GAAP measures. Refer to the non-GAAP measure section in this press release.
NOTES:
18) Other current assets as at 31 December 2022 consists of $320.7 million of inventories, $106.9 million of trade and other
receivables, $56.5 million of prepaid expenses and other and $11.2 million of other financial assets.
• Inventories increased by $9.4 million due primarily to an increase in consumables across all sites as a preventative
measure for potential supply chain delays.
• Trade and other receivables of $106.9 million was consistent with the prior year.
• Prepaid expenses and other increased by $21.4 million due to an increase in pre-payments at the Mana and Boungou
mines during the year.
• Other financial assets of $11.2 million was consistent with the prior year.
19) Mining interests decreased by $463.2 million compared to the prior year, primarily due to the recognition of a $360.3
million impairment associated with the Boungou and Wahgnion mines.
• At the Boungou mine, a non-cash impairment of $163.3 million was recognised as the recoverable value exceeded the
carrying value of the mining interest following the evaluation of a revised life of mine plan, which reflects increased
operating costs, the current estimated recoverable reserves and resources, including exploration potential, and higher
waste stripping required over the life of mine.
• At the Wahgnion mine, a non-cash impairment of $197.0 million was recognised as the recoverable value exceeded the
carrying value of the mining interest following the evaluation of a revised life of mine plan, which reflects increased
operating costs and the current estimated recoverable reserves and resources, including exploration potential.
20) Other long-term assets consist of $229.6 million of long-term stockpiles not expected to be processed in the next twelve
months at the Houndé, Ity and Sabodala-Massawa mines, $134.4 million of goodwill which has been allocated to the
Sabodala-Massawa and Mana mines, $40.0 million related to Allied Gold shares received as consideration upon the sale of
Agbaou, $39.5 million of restricted cash relating to reclamation bonds, and an NSR of $6.5 million received as consideration
upon the sale of the Karma mine.
21) Other current liabilities are made up of $354.6 million of trade and other payables, $89.1 million of other financial liabilities
consisting of the contingent consideration which was paid in March 2023 and other share based cash settled liabilities, and
$18.2 million of lease liabilities.
22) The current portion of long-term debt is made up of the $330.0 million 3.00% Convertible Senior Notes (“Convertible
Notes”) and the associated conversion option that matured on 15 February 2023. To minimise dilution to equity holders,
the Company settled the Convertible Notes at maturity through a combination of $330.0 million in cash for the principal
8