TIDMEDV
EAVOUR EXPECTS SIGNIFICANT GROWTH IN 2024 WITH BOTH PROJECTS SET TO
START UP IN Q2-2024
FY-2023 production of 1.1Moz at AISC of $964/oz l FY-2023
shareholder returns of $266m l FY-2023 growth investment of
$542m
OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing
operations)
-- Q4-2023 production of 280koz was flat over Q3-2023,
while AISC decreased by $31/oz or 3.2% to $936/oz
despite a $24/oz increase in royalty costs
-- FY-2023 production of 1,072koz, marking the 11th
consecutive year of achieving or beating production
guidance, with production set to increase by up to
18% in FY-2024 to 1,130-1,270koz due to project
start-ups in Q2-2024
-- Industry low AISC of $964/oz for FY-2023, achieving
near the top end of guidance which is in line with
the previously disclosed outlook, albeit 1.5% above
as royalty costs were $18/oz higher; FY-2024 AISC to
remain low at $955-1,035/oz
-- Strong financial position with $757m of available
liquidity, comprised of $517m in cash and $240m in
undrawn credit facilities, while Net Debt stood at a
healthy $555m at year-end with two key growth
projects approaching completion
ROBUST SHAREHOLDER RETURNS
-- H2-2023 dividend of $100m declared, totalling $200m
for FY-2023, which is 14% above the minimum committed
dividend
-- Share buyback programme continued with $26m worth of
shares repurchased in Q4-2023, totalling $66m for
FY-2023
-- Cumulative shareholder returns declared of greater
than $900m since 2021, 77% above the minimum
commitment
ATTRACTIVE ORGANIC GROWTH
-- Sabodala-Massawa expansion on budget and on schedule
for start-up in Q2-2024, increasing its expected
production up to 400koz in FY-2024 at an AISC of less
than $850/oz
-- Lafigué project construction on budget and ahead
of schedule with expected start-up in Q2-2024, rather
than Q3-2024, expecting to contribute up to 110koz of
production in FY-2024 at an AISC of less than $975/oz
-- Significant exploration success achieved in FY-2023
with Tanda-Iguela discovery increasing to 4.5Moz of
Indicated resources and near-mine exploration
success; continued exploration focus in FY-2024 with
$65m budget
London, 22 January 2024 -- Endeavour Mining plc (LSE:EDV,
TSX:EDV, OTCQX:EDVMF) ("Endeavour" or the "Group" or the "Company")
is pleased to announce its unaudited preliminary financial and
operating results for the fourth quarter and full year 2023, with
highlights provided in Table 1 below.
Table 1: Preliminary Financial and Operating Results
Highlights(1,2)
THREE MONTHSED YEARED
<DELTA>
(In US$m unless 31 30 31 31 31 FY-2023
otherwise December September December December December vs.
specified) 2023 2023 2022 2023 2022 FY-2022
-------- --------- -------- -------- -------- -------
PRODUCTION AND
AISC HIGHLIGHTS
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
Cost(3) , $/oz 936 967 885 964 850 +13%
SHAREHOLDER
RETURNS
Shareholder
dividends paid -- 100 -- 200 170 +18%
Share buyback 26 20 24 66 99 (34)%
-------- --------- -------- -------- -------- -------
Total
shareholder
returns paid 26 120 24 266 269 (1)%
-------- --------- -------- -------- -------- -------
ORGANIC GROWTH
Growth capital
spend(3) 155 116 55 447 127 +252%
Exploration
spend(3) 16 27 14 95 82 +20%
-------- --------- -------- -------- -------- -------
Total
investments in
organic
growth(3) 171 143 69 542 209 +161%
-------- --------- -------- -------- -------- -------
FINANCIAL
POSITION
HIGHLIGHT
(Net debt) / Net
Cash(3) (555) (445) 121 (555) 121 n.a
-------- --------- -------- -------- -------- -------
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
Endeavour's expected results as at the date of this press release.
(2) Production and AISC highlights from continuing operations (3)
This is a non-GAAP measure.
Ian Cockerill, CEO of Endeavour, commented: "I am honoured to
assume the role of CEO at a pivotal time for Endeavour as strong
foundations are in place to unlock significant value as we deliver
on our organic growth pipeline. I look forward to continuing to
implement the strategy approved by the Board and lead the Company
forward for the benefit of all our stakeholders.
2023 was another successful year for Endeavour during which we
continued to focus on improving the quality of our portfolio
through asset optimisation initiatives, the divestment of non-core
Boungou and Wahgnion mines, construction of our two high-margin,
long life growth projects, and continue to deliver significant
exploration success.
On the operational front, we are pleased to have met production
guidance for the eleventh consecutive year and to remain one of the
lowest all-in sustaining cost producers within the sector, allowing
us to generate robust cash flow to fund both our organic growth and
shareholder returns programmes. Moreover, we achieved record
production at both Ity and Houndé in 2023 where production exceeded
300koz. As we look forward to continuing to optimise and explore
these two mines with the goal of sustaining such levels of
production over the long-term, Endeavour's other flagship asset,
Sabodala-Massawa, is well positioned to produce up to 400koz in
2024.
Regarding our near-term growth plans, we are very pleased to
report that both the Sabodala-Massawa expansion and the Lafigué
development project are progressing well, with both projects on
budget and on, or ahead of, schedule for first production in the
second quarter of 2024. Our longer-term organic growth pipeline is
equally attractive, following the delineation of a 4.5 million
ounce Indicated resource at our Tanda-Iguela greenfield property in
Côte d'Ivoire. This represents one of the most significant
discoveries in West Africa over the past decade and we have
launched a preliminary feasibility study that we expect to finalise
by year end, as we continue to focus on increasing its size.
Throughout last year, we continued to execute on our commitment
to deliver attractive shareholder returns, returning $200 million
of dividends for the year and having repurchased $66 million worth
of shares, which combined is equivalent to $226 for every ounce of
gold produced from all operations. Importantly, since we began the
shareholder returns programme in 2021, we have returned over $900
million to shareholders representing 77% more than the minimum
commitment for the period. Looking ahead, our goal is to increase
returns further once our two ongoing organic growth projects are
complete.
I would like to thank our team for their continued hard work. I
look forward with excitement to 2024 and beyond as we will benefit
from the efforts undertaken over recent years to improve the
quality of our portfolio and strengthen the resilience of our
business."
SHAREHOLDER RETURNS PROGRAMME
-- In line with Endeavour's capital allocation framework, the Company is
pleased to continue to deliver attractive shareholder returns by
declaring a H2-2023 dividend of $100.0 million, or approximately $0.41
per share. As such, the FY-2023 dividend amounts to $200.0 million, which
represents $25.0 million or 14% 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 will be paid on 25 March 2024, with an
ex-dividend date of 22 February 2024, to shareholders of record on 23
February 2024. Shareholders of shares traded on the Toronto Stock
Exchange will receive dividends in Canadian Dollars ("CAD"), but can
elect to receive United States Dollars ("USD"). Shareholders of shares
traded on the London Stock Exchange will receive dividends in USD, but
can elect to receive Pounds Sterling ("GBP"). Currency elections and
elections under the Company's dividend reinvestment plan ("DRIP") must be
made by shareholders prior to 17:00 GMT on 4 March 2024. Dividends will
be paid in the default or elected currency on the Payment Date, at the
prevailing USD:CAD and USD:GBP exchange rates on 6 March 2024. This
dividend does not qualify as an "eligible dividend" for Canadian income
tax purposes. The tax consequences of the dividend will be dependent on
the particular circumstances of a shareholder.
-- 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.
-- As shown in Table 2 below, Endeavour has returned $266.0 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 $226 per ounce produced from all operations. Since the
shareholder returns programme began to be paid in 2021, Endeavour has
returned $903.0 million to shareholders in the form of dividends and
buybacks, inclusive of the H2-2023 dividend, which represents $393.0
million or 77% more than its minimum commitment over the period.
Table 2: Actual Shareholder Returns vs. Minimum Commitment
MINIMUM ACTUAL SHAREHOLDER RETURNS SUPPLEMENTAL
(All amounts in DIVID BUYBACKS TOTAL SHAREHOLDER
US$m) COMMITMENT DIVIDS COMPLETED RETURNS RETURNS
---------- --------- ---------- ----------- ------------
FY-2020 60 60 -- 60 --
FY-2021 125 140 138 278 +153
FY-2022 150 200 99 299 +149
FY-2023(1) 175 200 66 266 +91
---------- --------- ---------- ----------- ------------
TOTAL 510 600 303 903 +393
---------------- ---------- --------- ---------- ----------- ------------
(1) H2-2023 dividend declared on 22 January 2024, to be paid on
or about 25 March 2024.
-- 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
higher gold prices remained above $1,500/oz and its 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, along with the strengthening of 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 early August, along with its Q2 and H1-2024 financial
results.
FY-2023 OPERATIONAL PERFORMANCE OVERVIEW
-- Q4-2023 production from continuing operations amounted to 280koz and was
flat over Q3-2023 as the anticipated decrease at Houndé was offset
by increases at Sabodala-Massawa (albeit by less than anticipated due to
the lower grades encountered in the Sabodala pit as it enters its final
phase of mining) and Mana, while Ity remained flat. The all-in sustaining
costs ("AISC") decreased by $31/oz or 3.2% over Q3-2023 to approximately
$936/oz despite a $24/oz increase in royalty costs linked to the higher
realised gold price and the impact of the change in the sliding scale
royalty rates in Burkina Faso, which came into effect in November 2023.
The AISC benefitted from reductions at Sabodala-Massawa and Mana, which
was offset by the increase at Houndé (following record Q3-2023
performance) while Ity remained flat.
-- As shown in Table 3 below, the FY-2023 production from continuing
operations amounted to 1,072koz, achieving the guided 1,060-1,135koz
range and marking the 11th consecutive year of achieving or beating
production guidance. The AISC from continuing operations amounted to an
industry-leading $964/oz for FY-2023. In line with the previously
disclosed outlook, Endeavour achieved near the top-end of guided
$895-950/oz AISC range, albeit 1.5% (representing $14/oz) above due to
royalties being $18/oz higher than anticipated due to a higher realised
gold price ($1,952/oz compared to guidance of $1,750/oz) and the
aforementioned increase in the Burkina Faso royalty rate which came into
effect in November 2023.
Table 3: Group Production and All-In Sustaining Cost from
Continuing Operations Compared to Guidance(1)
2023
ACTUALS 2023 GUIDANCE
------- ------------------------
PRODUCTION FROM CONTINUING OPERATIONS 1,072 1,060 -- 1,135
------------------------------------------------------ ------- ------------- -----
AISC FROM CONTINUING OPERATIONS BEFORE ROYALTY COSTS,
$/oz 841 790 -- 845
Royalty cost, $/oz(2) 123 105
------------------------------------------------------ ------- ------------------------
AISC FROM CONTINUING OPERATIONS, $/oz 964 895 -- 950
------------------------------------------------------ ------- ------------- -----
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
Endeavour's expected results as at the date of this press release.
(2) 2023 AISC guidance was based on a gold price of $1,750/oz
compared to the realised gold price of $1,952/oz
-- FY-2023 production from continuing operations amounted to 1,072koz, which
represents a decrease of 89koz or 8% over the 1,161koz produced in
FY-2022 due to lower production at Mana (due to the transition from an
open-pit to an underground operation at the Wona deposit) and at
Sabodala-Massawa (due to mining and processing of lower grade ore), while
both Houndé and Ity achieved record annual production. FY-2023 AISC
from continuing operations increased by $114/oz, from $850/oz in FY-2022
to approximately $964/oz in FY-2023, as AISC increased at Houndé,
Mana, Sabodala-Massawa and at Corporate, in addition to a $15/oz increase
in royalty costs (from $108/oz in FY-2022 to $123/oz in FY-2023), which
was partially offset by decreased AISC at Ity.
-- The Group's realised gold price from continuing operations, excluding the
impact of realised gains on gold hedges and inclusive of the
Sabodala-Massawa gold stream, was $2,034/oz and $1,952/oz for Q4-2023 and
FY-2023 respectively. Including the impact of the gold hedges, the
Group's realised gold price from continuing operations was $1,945/oz and
$1,919/oz for Q4-2023 and FY-2023 respectively.
Table 4: Consolidated Group Production(1)
THREE MONTHSED YEARED
(All amounts in
koz, on a 100%
basis) 31 December 2023 30 September 2023 31 December 2022 31 December 2023 31 December 2022
----------------- ---------------- ----------------- ---------------- ---------------- ----------------
Houndé 84 109 63 312 295
Ity 74 73 82 324 313
Mana 37 30 46 142 195
Sabodala-Massawa 85 69 103 294 358
----------------- ---------------- ----------------- ---------------- ---------------- ----------------
PRODUCTION FROM
CONTINUING
OPERATIONS 280 281 294 1,072 1,161
----------------- ---------------- ----------------- ---------------- ---------------- ----------------
Boungou(2) -- -- 26 33 116
Wahgnion(2) -- -- 36 68 124
Karma(3) -- -- -- -- 10
----------------- ---------------- ----------------- ---------------- ---------------- ----------------
GROUP PRODUCTION 280 281 355 1,173 1,410
----------------- ---------------- ----------------- ---------------- ---------------- ----------------
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
Endeavour's expected results as at the date of this press release.
(2) Divested on 30 June 2023. (3) Divested on 10 March 2022.
Table 5: Consolidated All-In Sustaining Costs(1,2)
THREE MONTHSED YEARED
31 30 31 31 31
(All amounts in December September December December December
US$/oz) 2023 2023 2022 2023 2022
Hounde 901 787 969 943 809
Ity 865 864 847 809 812
Mana 1,301 1,734 999 1,380 994
Sabodala-Massawa 700 840 661 767 691
Corporate G&A 54 40 52 51 43
AISC FROM
CONTINUING
OPERATIONS 936 967 885 964 850
----------------- ---------- --------- ---------- ---------- ----------
Boungou(3) -- -- 1,118 1,639 1,065
Wahgnion(3) -- -- 1,376 1,566 1,525
Karma(4) -- -- -- -- 1,504
----------------- ---------- --------- ---------- ---------- ----------
GROUP AISC 936 967 954 1,019 933
----------------- ---------- --------- ---------- ---------- ----------
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
Endeavour's expected results as at the date of this press release.
(2) This is a non-GAAP measure.(3) Divested on 30 June 2023. (4)
Divested on 10 March 2022.
2024 OUTLOOK
-- As shown in Tables 6 and 7 below, the production guidance for FY-2024
amounts to 1,130-1,270koz which marks an increase of up to nearly 200koz
or 18.5% over the FY-2023 production from continuing operations of
1,072koz, which is largely due to the commissioning of the
Sabodala-Massawa expansion and the Lafigué projects in Q2-2024. The
AISC is expected to remain consistent with that achieved over recent
quarters at an industry-low $955-1,035/oz.
-- Group production is expected to be more heavily weighted towards H2-2024
while AISC is also expected to be lower in H2-2024 as the Group's organic
growth projects are expected to significantly increase the quality of
Endeavour's portfolio.
-- More details on individual mine guidance have been provided in the below
sections.
Table 6: 2024 Production Guidance for Continuing
Operations(1)
(All amounts in koz, on a 100%
basis) 2023 ACTUALS 2024 FULL-YEAR GUIDANCE
----------------------------------- ------------ ---------------------------
Houndé 312 260 -- 290
Ity 324 270 -- 300
Lafigué(2) -- 90 -- 110
Mana 142 150 -- 170
Sabodala-Massawa(2) 294 360 -- 400
----------------------------------- ------------ ---------- ---- ---------
GROUP PRODUCTION 1,072 1,130 -- 1,270
----------------------------------- ------------ ---------- ---- ---------
(1) All FY-2023 numbers are preliminary and reflect Endeavour's
expected results as at the date of this press release. (2)
Production for Lafigué and production contributions from the
Sabodala-Massawa Expansion include pre-commercial production
period.
Table 7: 2024 AISC Guidance for Continuing Operations(1,2)
(All amounts in US$/oz) 2023 ACTUALS 2024 FULL-YEAR GUIDANCE
------------------------ ------------ ---------------------------
Houndé 943 1,000 -- 1,100
Ity 809 850 -- 925
Lafigué(3) -- 900 -- 975
Mana 1,380 1,200 -- 1,300
Sabodala-Massawa(3) 767 750 -- 850
Corporate G&A 51 40
GROUP AISC 964 955 -- 1,035
------------------------ ------------ ---------- ---- ---------
(1) This is a non-GAAP measure. Refer to the non-GAAP measure
section of the most recent MD&A for Endeavour. All FY-2023
numbers are preliminary and reflect Endeavour's expected results as
at the date of this press release. (2) FY-2024 AISC guidance is
based on an assumed average gold price of $1,850/oz and USD:EUR
foreign exchange rate of 1.10. (3) AISC for Lafigué and the
Sabodala-Massawa Expansion are for the post-commercial production
period.
-- Total mine capital expenditure for FY-2024, consisting of both sustaining
and non-sustaining capital spend, is expected to be approximately $315.0
million, which marks a decrease of $32.7 million or 9% compared to the
FY-2023 expenditure, as detailed in the tables below. More details on
individual mine capital expenditures have been provided in the mine
sections below.
Table 8: Mine Capital Expenditure for Continuing Operations 2024
Guidance(1)
(All amounts in US$m) 2023 ACTUALS 2024 FULL-YEAR GUIDANCE
------------ -----------------------
Houndé 34 40
Ity 10 10
Lafigué -- 25
Mana 24 15
Sabodala-Massawa 24 35
------------ -----------------------
TOTAL SUSTAINING MINE CAPITAL
EXPITURES 92 125
--------------------------------------- ------------ -----------------------
Houndé 38 20
Ity 103 45
Lafigué -- 5
Mana 60 30
Sabodala-Massawa 41 40
Sabodala-Massawa Solar Plant 6 45
Non-mining 8 5
------------ -----------------------
TOTAL NON-SUSTAINING MINE CAPITAL
EXPITURES 256 190
--------------------------------------- ------------ -----------------------
TOTAL MINE CAPITAL EXPITURES 348 315
--------------------------------------- ------------ -----------------------
(1) All FY-2023 numbers are preliminary and reflect Endeavour's
expected results as at the date of this press release.
-- Growth capital spend for FY-2024 is expected to amount to approximately
$245.0 million, which marks a decrease of $202.1 million or 45% compared
to the FY-2023 expenditure of $447.1 million. The FY-2024 expenditure is
expected to consist of approximately $75.0 million of remaining growth
capital for the Sabodala-Massawa BIOX(R) Expansion project and
approximately $170.0 million of remaining growth capital for the
Lafigué project. Further details are provided in the sections below.
-- As detailed in Table 9 below, exploration will continue to be a strong
focus in FY-2024 with a company-wide exploration budget of $65.0 million.
For FY-2024, approximately $15.0 million will be spent on the highly
prospective Tanda-Iguela property in Côte d'Ivoire, which already
ranks as one of the most significant discoveries made in West Africa over
the last decade.
Table 9: Exploration 2024 Guidance for continuing operations
(All amounts in US$m) 2023 ACTUALS(1) 2024 GUIDANCE 2024 ALLOCATION
--------------- ------------- ---------------
Houndé mine 8 7 11%
Ity mine 16 10 15%
Mana mine 7 2 3%
Lafigué mine 2 4 6%
Sabodala-Massawa mine 19 21 32%
Tanda-Iguela project 37 15 23%
Other greenfield projects 6 6 9%
--------------- ------------- ---------------
Total 95 65 100%
-------------------------- --------------- ------------- ---------------
(1) All FY-2023 numbers are preliminary and reflect Endeavour's
expected results as at the date of this press release.
-- The Company's previously implemented revenue protection programme is
expected to continue to provide cash flow visibility during the
construction phase of the Company's two development projects and during
the subsequent debt reduction phase. Outstanding contracts for FY-2024
include a zero cost collar with a put price of $1,807 per ounce and a
call price of $2,400 per ounce for a total of 450,000 ounces, or 112,500
ounces per quarter and forward sales contracts for 70,000 ounces of
production in H1-2024, or 35,000 ounces per quarter, at an average gold
price of $2,033 per ounce. Outstanding contracts for FY-2025 include a
zero cost collar with a put price of $1,992 per ounce and a call price of
$2,400 per ounce for a total of 200,000 ounces, or 50,000 ounces per
quarter.
OPERATIONAL DETAILS BY ASSET
Houndé Mine, Burkina Faso
Table 10: Houndé Performance Indicators(1)
For The
Period
Ended Q4-2023 Q3-2023 Q4-2022 FY-2023 FY-2022
-------------- -------------- -------------- -------------- --------------
Tonnes ore
mined, kt 1,499 1,209 1,912 5,420 5,754
Total tonnes
mined, kt 11,993 10,603 12,901 47,680 45,490
Strip ratio
(incl.
waste cap) 7.00 7.77 5.75 7.80 6.91
Tonnes
milled, kt 1,360 1,400 1,359 5,549 5,043
Grade, g/t 2.15 2.68 1.55 1.92 1.92
Recovery
rate, % 90 91 92 91 93
Production,
koz 84 109 63 312 295
-------------- -------------- -------------- -------------- --------------
Total cash
cost/oz 837 704 793 835 701
AISC/oz 901 787 969 943 809
-------------- -------------- -------------- -------------- --------------
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
Endeavour's expected results as at the date of this press
release.
Q4-2023 vs Q3-2023 Insights
-- Production decreased due to lower processed grades and slightly lower
throughput and recoveries.
-- Total tonnes mined increased due to higher utilisation of the
mining fleet following the end of the wet season. Tonnes of ore
mined increased as a higher volume of ore was mined in the
Vindaloo Main pit, following waste stripping activity that was
completed in Q3-2023, which was partially offset by the lower
volumes of ore mined from the Kari Pump and Kari West pits, which
was in-line with mine sequencing.
-- Tonnes milled decreased slightly due to a higher proportion of
harder transitional and fresh ore in the mill feed.
-- Processed grades decreased due to lower grade oxide ore sourced
from the Kari Pump pit as well as a greater proportion of lower
grade Kari West and Vindaloo Main ore.
-- Recovery rates decreased slightly due to a higher proportion of
transitional and fresh ore, with lower associated recoveries in
the mill feed.
-- AISC increased mainly due to lower production and sales, driven by the
lower average grade in the ore blend.
FY-2023 Performance
-- FY-2023 production totalled a record 312koz, exceeding the guided
270-285koz range, due to higher than expected grades from the Kari Pump
pit as well as better than expected mill performance following the
completion of processing plant optimisation initiatives that improved
mill availability and reduced blockages. FY-2023 AISC amounted to
approximately $943/oz, which was above the $850-925/oz guided range due
to higher royalty payments, in addition to increases in consumable costs
and longer waste hauling distances during the year.
-- FY-2023 production increased from 295koz in FY-2022 to 312koz in FY-2023
due to increased mill throughput, driven by optimisation initiatives,
which was partially offset by slightly lower recoveries due to changes in
the ore blend. FY-2023 AISC increased from $809/oz in FY-2022 to
approximately $943/oz in FY-2023 due to higher royalty costs, higher
sustaining capital expenditure and higher mining and processing costs
following fuel and consumable cost increases.
2024 Outlook
-- Houndé is expected to produce between 260-290koz in FY-2024 at AISC
of $1,000-1,100/oz.
-- Mining activities are expected to continue to focus on the Vindaloo Main,
Kari Pump, and Kari West pits. In H1-2024, ore is expected to be
primarily sourced from the Kari West pit while stripping activities focus
on the Kari Pump and Vindaloo Main pits, while in H2-2024, a greater
volume of ore is expected to be mined from the higher grade Kari Pump
pit. Production is expected to be weighted towards H2-2024 with greater
volumes of higher grade ore from the Kari Pump pit expected to be mined
in H2-2024. Tonnes of ore milled are expected to decrease in FY-2024 as a
lower proportion of soft oxide ore from the Kari West pit is anticipated
in the ore blend as the Kari West pit advances into harder transitional
and fresh ore. The increase in the proportion of harder transitional and
fresh material in the ore blend is expected to result in a slight
decrease in grades and processing recoveries in addition to slightly
higher mining and processing unit costs, driving higher AISC compared to
FY-2023. In addition, royalty costs are expected to be higher due to the
higher prevailing current gold price and the change in the sliding scale
royalty rates that became effective in November 2023 in Burkina Faso
(with the new rate resulting in a $28/oz increase at a gold price of
$1,850/oz).
-- Sustaining capital expenditure is expected to increase from $33.9 million
in FY-2023 to approximately $40.0 million in FY-2024, and primarily
relates to waste stripping at the Kari Pump and Kari West pits, mining
fleet component rebuilds and replacements, processing plant equipment
upgrades and dewatering borehole drilling.
-- Non-sustaining capital expenditure is expected to decrease from $38.3
million in FY-2023 to approximately $20.0 million in FY-2024, and
primarily relates to stripping activity associated with a push back at
the Vindaloo Main pit, the stage 8/9 TSF raise and land compensation for
the third TSF cell.
Ity Mine, Côte d'Ivoire
Table 11: Ity Performance Indicators(1)
For The
Period
Ended Q4-2023 Q3-2023 Q4-2022 FY-2023 FY-2022
------------- ------------- ------------- -------------- --------------
Tonnes ore
mined, kt 1,721 1,246 1,662 6,790 7,044
Total tonnes
mined, kt 7,349 6,020 6,043 27,891 23,946
Strip ratio
(incl.
waste cap) 3.27 3.83 2.64 3.11 2.40
Tonnes
milled, kt 1,593 1,494 1,710 6,714 6,351
Grade, g/t 1.63 1.60 1.73 1.63 1.80
Recovery
rate, % 91 93 87 92 85
Production,
koz 74 73 82 324 313
------------- ------------- ------------- -------------- --------------
Total cash
cost/oz 829 826 816 777 769
AISC/oz 865 864 847 809 812
------------- ------------- ------------- -------------- --------------
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
Endeavour's expected results as at the date of this press
release.
Q4-2023 vs Q3-2023 Insights
-- Production remained flat as higher tonnes milled and higher processed
grades were offset by lower recoveries.
-- Total tonnes mined increased, as anticipated, due to increased
mining rates following the wet season in the prior quarter and
increased stripping activities at the Walter pit cutback.
Similarly, tonnes of ore mined increased following the end of the
wet season as ore mining focussed on the Ity, Walter, Bakatouo and
Le Plaque pits, with supplemental contributions from the Verse
Ouest pit and stockpiles.
-- Tonnes milled increased due to higher crusher availability
following the wet season impact in the prior quarter.
-- Processed grades increased slightly due to higher volumes of
higher grade ore sourced from the Ity and Bakatouo pits in the
mill feed, which was partially offset by lower grade ore sourced
from the Walter and Le Plaque pits during the quarter.
-- Recoveries decreased due to a higher proportion of fresh ore, with
lower associated recoveries, in the mill feed.
-- AISC remained flat as higher royalty rates associated with higher gold
prices were offset by lower processing unit costs associated with
increased processing volumes following the end of the wet season.
FY-2023 Performance
-- FY-2023 production totalled a record 324koz, exceeding the guided
285-300koz range, due to higher than expected throughput as a high
proportion of soft oxide ore was mined, largely from the Le Plaque pits,
which was supported by the continued use of the surge bin, and higher
than expected recoveries. FY-2023 AISC amounted to approximately $809/oz,
which was below the guided $840-915/oz range, largely due to higher than
expected gold sales volumes in addition to lower than expected mining and
processing unit costs as a result of higher than expected volumes of ore
mined and processed.
-- FY-2023 production increased from 313koz in FY-2022 to 324koz in FY-2023
following an increase in throughput rates due to the processing of a
greater proportion of softer oxide ore and an increase in recovery rates
related to the cessation of mining at the Daapleu pit in early 2023,
which was partially offset by lower average processed grades. FY-2023
AISC decreased slightly from $812/oz in FY-2022 to approximately $809/oz
in FY-2023 due to the increase in gold sales volumes and lower sustaining
capital expenditure.
2024 Outlook
-- Ity is expected to produce between 270-300koz in FY-2024 at an AISC of
between $850-925/oz.
-- Ore mining activities are expected to focus on the Ity, Bakatouo, Walter,
Le Plaque and Daapleu pits, which will be supplemented with ore from the
Verse Ouest pit and stockpiles. Production is expected to be slightly
higher in the first half of the year due to greater availability of high
grade ore from the Ity and Bakatouo pits in the mine plan and the wet
season impact in H2-2023 on mining and milling rates. Throughput is
expected to be slightly higher than in FY-2023, due to the commissioning
of the Mineral Sizer in H2-2024, which is expected to increase throughput
rates during the wet season. Milled grades and recoveries are expected to
decrease slightly compared to FY-2023, due to the introduction of lower
grade semi-refractory ore from the Daapleu pit. AISC is expected to
increase in FY-2024 due to the guided lower levels of production and gold
sales.
-- Sustaining capital expenditure is expected to be consistent with the
prior year at approximately $10.0 million in FY-2024 and is primarily
related to waste stripping activities across several pits, de-watering
borehole drilling and processing plant upgrades and replacements.
-- Non-sustaining capital expenditure is expected to decrease from $102.8
million in FY-2023 to approximately $45.0 million in FY-2024, and is
primarily related to pre-stripping activity at the Daapleu pit, TSF 2
earthworks and site infrastructure, in addition to the ongoing Mineral
Sizer and other smaller optimisation initiatives. The Mineral Sizer,
which was launched in 2023 for a total capex of $19.0 million, is
expected to be commissioned in late Q4-2024, and will add an additional
primary crusher for the oxide ores in order to sustain higher plant
throughput rates regardless of the ore blend.
Mana Mine, Burkina Faso
Table 12: Mana Performance Indicators(1)
For The
Period
Ended Q4-2023 Q3-2023 Q4-2022 FY-2023 FY-2022
------------ ------------- ------------- ------------- -------------
OP tonnes
ore mined,
kt 169 297 338 1,298 1,260
OP total
tonnes
mined, kt 805 1,508 1,057 6,001 3,615
OP strip
ratio
(incl.
waste cap) 3.77 4.08 2.13 3.62 1.87
UG tonnes
ore mined,
kt 432 349 299 1,314 944
Tonnes
milled, kt 515 643 643 2,443 2,607
Grade, g/t 2.59 1.66 2.33 2.01 2.49
Recovery
rate, % 89 88 93 91 92
Production,
koz 37 30 46 142 195
------------ ------------- ------------- ------------- -------------
Total cash
cost/oz 951 1,599 941 1,218 943
AISC/oz 1,301 1,734 999 1,380 994
------------ ------------- ------------- ------------- -------------
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
Endeavour's expected results as at the date of this press
release.
Q4-2023 vs Q3-2023 Insights
-- Production increased due to higher average grades processed and recovery
rates, which were partially offset by lower mill throughput.
-- Total open pit tonnes mined decreased, in-line with the mine plan,
as mining activities began to ramp-down at the Maoula open pit.
-- Total underground tonnes of ore mined increased as total ore
tonnes from Wona increased by 36% with a 40% increase in stope
tonnes mined. Total underground development at Wona Underground
and Siou Underground increased compared to the prior quarter with
3,017 meters developed, a 16% increase compared to Q3-2023.
-- Tonnes milled decreased as tonnes of ore mined from the Maoula
open pit decreased and the plant was limited by available ore from
underground sources.
-- The average processed grade increased due to a higher proportion
of higher grade ore from the Wona underground deposit in the mill
feed following an increase in stope tonnes mined.
-- Recovery rates increased slightly due to changes in the ore blend.
-- AISC decreased due to higher volumes of gold sold and lower underground
mining unit costs associated with the continued ramp-up of underground
mining volumes.
FY-2023 Performance
-- FY-2023 production totalled 142koz which, as previously disclosed, was
below the guided 190-210koz range and FY-2023 AISC amounted to
approximately $1,380/oz which, as previously disclosed, was above the
guided $950-$1,050/oz range, due to a slower than expected ramp up by a
new underground mining contractor at the Wona underground deposit
resulting in lower than expected ore tonnes mined and consequently
processed grades and throughput.
-- FY-2023 production decreased from 195koz in FY-2022 to 142koz in FY-2023
largely due to lower average grades processed as a result of lower grade
Maoula ore in the mill feed, and a slower than expected ramp-up of the
new mining contractor at the Wona underground deposit. FY-2023 AISC
increased from $994/oz in FY-2022 to approximately $1,380/oz in FY-2023
primarily due to the lower volumes of gold sold, higher underground
mining unit costs as the underground operations at Wona expanded with the
addition of two new portals.
2024 Outlook
-- Mana is expected to produce between 150-170koz in FY-2024 at an AISC of
$1,200-1,300/oz.
-- Ore is expected to be primarily sourced from the Siou and Wona
underground deposits as the Maoula open pit is expected to be fully
depleted by the end of Q1-2024. Throughput is expected to be slightly
lower than FY-2023 as the mine transitions to becoming solely reliant on
underground ore for the feed. Average grades are expected to increase
compared to FY-2023 as higher grade ore from stope production at the Wona
Underground deposit is expected to displace lower grade Maoula open pit
ore. Recoveries are expected to decrease compared to FY-2023 as the Wona
underground ore has lower associated recoveries. Mana AISC is expected to
decrease in FY-2024 due to the expected increase in underground mining
volumes driving lower underground mining costs, which is expected to be
partially offset by the higher royalty costs due to the higher prevailing
current gold price and the change in the sliding scale royalty rates that
became effective in November 2023 in Burkina Faso (new rate results in a
$28/oz increase at a gold price of $1,850/oz).
-- Sustaining capital expenditure is expected to decrease from $23.6 million
in FY-2023 to approximately $15.0 million in FY-2024, and is primarily
related to waste development in the Wona underground deposit in addition
to processing plant and infrastructure maintenance and upgrades.
-- Non-sustaining capital expenditure is expected to decrease from $60.4
million in FY-2023 to approximately $30.0 million in FY-2022, and is
primarily related to Wona underground development as the mine ramps up to
full stope production capacity, the stage 5 TSF lift and site
infrastructure.
Sabodala-Massawa Mine, Senegal
Table 13: Sabodala-Massawa Performance Indicators(1)
For The
Period
Ended Q4-2023 Q3-2023 Q4-2022 FY-2023 FY-2022
-------------- -------------- -------------- -------------- --------------
Tonnes ore
mined, kt 1,884 1,745 1,727 6,205 6,449
Total tonnes
mined, kt 11,319 11,989 12,645 45,943 49,259
Strip ratio
(incl.
waste cap) 5.01 5.87 6.32 6.40 6.64
Tonnes
milled, kt 1,255 1,175 1,154 4,755 4,289
Grade, g/t 2.31 2.06 3.16 2.15 2.88
Recovery
rate, % 89 91 88 89 89
Production,
koz 85 69 103 294 358
-------------- -------------- -------------- -------------- --------------
Total cash
cost/oz 686 758 559 688 577
AISC/oz 700 840 661 767 691
-------------- -------------- -------------- -------------- --------------
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
Endeavour's expected results as at the date of this press
release..
Q4-2023 vs Q3-2023 Insights
-- Production increased due to an increase in processed grade and throughput,
which was partially offset by a slight decrease in recovery rates.
-- Total tonnes mined decreased due to a decrease in mining
activities at the Bambaraya pits in-line with the mine plan, and
lower waste stripping at the Sabodala pit following stripping
activities earlier in the year. The decrease was partially offset
by increased stripping activities at the Massawa Central Zone pits
to access higher-grade refractory ore zones ahead of the expected
startup of the BIOX(R) Expansion project in Q2-2024, and higher
mining volumes from the Niakafiri East and Sofia North Extension
pits. Tonnes of ore mined increased as stripping activities
earlier in the year provided greater access to ore zones at the
Sabodala pit.
-- Tonnes milled increased as the ore blend contained a higher
proportion of softer oxide ore from the Niakafiri East pit and
stockpiles.
-- Average grade processed increased due to higher grade ore sourced
from the Sabodala, Massawa Central Zone and Sofia North Extension
pits, displacing the comparatively lower grade ore from the
Bambaraya pits.
-- Recovery rates decreased slightly due to an increased proportion
of transitional ore from the Massawa Central Zone pits in the mill
feed impacting recoveries.
-- AISC decreased largely due to increased gold sales driven by higher
average grades and throughput, in addition to lower sustaining capital
incurred during the period.
FY-2023 Performance
-- FY-2023 production totalled 294koz, which was below the 315-340koz
guidance range due to lower production than expected in Q4-2023, as lower
than anticipated tonnage of high-grade ore was extracted from the
Sabodala pit as mining rates decreased with the deeper elevations in the
pit ahead of its final phase of mining. FY-2023 AISC amounted to
approximately $767/oz, near the lower end of the $760-$810/oz guided
range, due to lower than planned sustaining capital incurred in the year.
-- FY-2023 production decreased from 358koz in FY-2022 to 294koz in FY-2023
due to lower average grades milled, partially offset by increased
throughput due to an increased proportion of oxide ore in the mill feed.
FY-2023 AISC increased from $691/oz to approximately $767/oz due largely
to lower volumes of gold sold and higher mining unit costs due to
increased fuel and consumable costs, partially offset by lower processing
unit costs.
2024 Outlook
-- Sabodala-Massawa is expected to produce between 360-400koz in FY-2024 at
a post BIOX(R) Expansion commercial production AISC of $750-850/oz.
-- Ore for the existing CIL plant is expected to be primarily sourced from
the Sabodala, Sofia North Extension and Niakafiri East pits, with
supplementary ore expected to be sourced from the Kiesta pit in H2-2024.
Throughput in the CIL plant is expected to decrease slightly compared to
the prior year due to a higher proportion of fresh ore from the Sabodala
and Sofia North Extension pits expected in the mill feed. Average
processed grades in the CIL plant are expected to decrease slightly
compared to the prior year, in-line with mine sequencing, with an
increased proportion of the mill feed sourced from the lower grade
Niakafiri East pit and stockpiles. Recovery rates in the CIL plant are
expected to be largely consistent with the prior year.
-- Refractory ore for the BIOX(R) plant is expected to be primarily sourced
from the Massawa Central and Massawa North Zone pits. Refractory ore
mined in H1-2024 is expected to be stockpiled ahead of the startup of the
BIOX(R) Expansion project, expected in Q2-2024, and will result in
H2-2024 weighted production for Sabodala-Massawa.
-- Sustaining capital expenditure is expected to increase from approximately
$23.8 million in FY-2023 to $35.0 million in FY-2024 and is primarily
related to capitalised waste stripping as well as mining fleet upgrades
and re-builds and process plant upgrades.
-- Non-sustaining capital expenditure is expected to decrease from
approximately $46.2 million in FY-2023 to $40.0 million in FY-2024 and is
primarily related to infrastructure for the deposition of tailings in the
Sabodala pit which is expected to commence in FY-2025, advanced grade
control activities at Kiesta, the TSF 1 embankment raise, purchases of
new mining equipment, mine infrastructure and haul roads for the Kiesta
mining area.
-- As announced on 2 August 2023, in order to significantly reduce fuel
consumption and greenhouse gas emissions, and lower power costs at
Sabodala-Massawa, the construction of a 37MWp photovoltaic ("PV") solar
facility and a 16MW battery system at the Sabodala-Massawa mine, is
expected to amount to non-sustaining capital of $45.0 million for
FY-2024. The initial capital cost for the solar project is expected to
amount to $55.0 million, of which $5.5 million was incurred in FY-2023
mainly related to detailed engineering and design. and down payments for
the procurement of long-lead items. The solar plant construction is
expected to be completed by Q1-2025.
-- Growth capital expenditure is expected to be approximately $75.0 million
and is related to the BIOX(R) Expansion project as detailed below.
Plant Expansion
-- Construction of the Sabodala-Massawa expansion project was launched in
April 2022 and remains on budget and on schedule for completion in
Q2-2024.
-- Growth capital expenditure for the expansion project is approximately
$290.0 million with $218.3 million, or 75%, of the growth capex incurred
to date, of which, $166.1 million was incurred in FY-2023 and
approximately $75.0 million is expected to be incurred in FY-2024.
-- Approximately $259.8 million or 90% of the total growth capital has now
been committed, with pricing in line with expectations.
-- The construction progress regarding critical path items is detailed
below:
-- Processing plant construction is well advanced and remains on
schedule. All civil works have been completed with structural
concrete completed and civil contractors are currently
demobilising from site. Dry commissioning of the primary crusher
was successfully completed during Q4-2023. Structural, mechanical
and piping works are progressing well to connect the grinding,
BIOX(R), flotation and CIL circuits on schedule.
-- Over 50 cubic metres of BIOX(R) inoculum has been produced on site,
with a population transferred from the pilot plant to the BIOX(R)
reactors within the processing plant, where it will continue to
grow.
-- The 18MW power plant expansion is now complete and has been handed
over to the operating team after being successfully energised
during Q4-2023.
-- Construction of TSF-1B cell one is complete, and earthworks on
cell two are completed with HDPE lining underway.
Lafigué Mine, Côte d'Ivoire
Project Construction Update
-- Construction of the Lafigué project in Côte d'Ivoire was
launched in early Q4-2022, following the completion of a DFS which
confirmed Lafigué's potential to be a cornerstone asset for
Endeavour. First gold production is expected ahead of schedule in
Q2-2024, rather than Q3-2024.
-- Growth capital expenditure for the project is approximately $448.0
million, with $278.6 million, or 62%, of the growth capex incurred to
date, of which $241.7 million was incurred in FY-2023 and approximately
$170.0 million is expected to be incurred in FY-2024 mainly related to
construction activities across the process plant, site infrastructure and
commissioning activities.
-- Approximately $377.2 million or 84% of the total growth capital has now
been committed, with pricing in line with expectations.
-- The construction progress regarding critical path items is detailed
below:
-- Construction activities are well advanced with the crushing area,
ball mills, HPGR installation, CIL tanks the elution area all
nearing completion.
-- Process plant engineering and drafting is now completed and
delivery of all the project shipments is over 95% complete with
all key items on site.
-- Site infrastructure including the gold room, dry screening
building and conveyor truss have been pre-assembled ahead of
concrete pouring, to reduce erection time, and will be erected in
H1-2024. The site camp facility is nearly completed, with the
completed buildings in use since December 2023.
-- The 225kV power substation is complete with the Dabakala
Switchyard and overhead power lines successfully energised during
December 2023. Electrical works on site are also progressing to
plan with underground high-voltage cable installation advancing on
schedule.
-- TSF earthworks is complete and HDPE lining of the TSF is well
advanced.
-- Mining equipment mobilisation has advanced well with mining
activities commencing during the quarter with approximately
2,906kt of material moved.
2024 Outlook
-- First gold production at Lafigué is expected ahead of schedule in
Q2-2024. Lafigué is expected to produce between 90-110koz in FY-2024
at a post commercial production AISC of $900-975/oz, which is in line
with the Definitive Feasibility Study ("DFS") assumptions.
-- Mining activities are expected in the western and eastern flanks of the
Lafigué pit, as well as the West pit. Total mined tonnes are
expected to ramp-up through the year as the fleet is progressively
mobilised. Ramp-up of the processing plant is expected to be completed in
H2-2024 and average processed grades are expected to increase through the
ramp-up period as mining advances into the Lafigué pit through the
year. Recovery rates are expected to be above 90%, while processing costs
are expected to decrease through the ramp-up period.
-- As per the DFS, sustaining capital expenditure is expected to amount to
$25.0 million in FY-2024 and is primarily related to capitalised waste
stripping activities, advanced grade control drilling and spare parts
purchases.
-- As per the DFS, non-sustaining capital expenditure is expected to amount
to $5.0 million in FY-2024 and is primarily related to the commencement
of a TSF lift in H2-2024, once there is sufficient waste rock available
from mining operations, and waste stripping activity in the eastern flank
of the Lafigué pit.
NON-CORE ASSET DIVESTMENT
-- On 30 June 2023, Endeavour closed the divestment of its 90% interests in
its non-core Boungou and Wahgnion mines in Burkina Faso to Lilium Mining
("Lilium"), a subsidiary of Lilium Capital which is an African and
frontier markets focused strategic investment vehicle led by West African
entrepreneurs.
-- The total consideration for the divestment is expected to exceed $300.0
million and is comprised of:
-- $130.0 million in the form of a reimbursement of historical
shareholder loans, of which a total of $33.0 million was received
to date. The remaining $97.0 million is outstanding as Lilium was
delayed in closing its debt refinancing due to delays in its
lending syndicate completing their credit approval process. Lilium
is expected to obtain credit approval, close the refinancing and
make the payments imminently.
-- $25.0 million in deferred cash consideration payable in two
instalments of $10.0 million, which became payable in January
2024, and $15.0 million, which will become payable in April 2024.
Both payments are expected to be received in the coming months.
-- Deferred cash consideration comprised of 50% of the net free
cashflow generated by the Boungou mine until $55.0 million has
been paid. No payments have thus far been received for this
deferred cash consideration as Lilium has not had any commercial
production from Boungou since their acquisition given their
election to place the mine on care and maintenance due to supply
chain challenges and security.
-- An NSR on Wahgnion commencing at closing for 4.0% of gold sold, of
which a total of approximately $2.6 million has been received as
at December 31, 2023.
-- An NSR on Boungou commencing at closing for 4.0% of gold sold, of
which a total of approximately $0.5 million has been received as
at December 31, 2023.
FINANCIAL POSITION & LIQUIDITY
-- As shown in Table 14 below, Endeavour ended FY-2023 with a net debt
position of $555.3 million, which represents a $110.2 million increase
compared to the prior quarter and $676.4 million increase over the
previous year. The increase in the Company's net debt position is due to
the ongoing investment in the Sabodala-Massawa Expansion and the
Lafigué Development project, with $447.1 million of growth capital
spent during the year, in addition the Company paid $200.0 million in
shareholder dividends and $65.7 million in share buybacks during the
year. Furthermore, following the divestment of the non-core Boungou and
Wahgnion mines to Lilium on 30 June 2023, the details of the outstanding
upfront proceeds of $97.0m and the deferred payment of $10.0m that were
expected to be received in Q4-2023, are included in the "Non-Core Asset
Divestment" section above.
Table 14: Net Debt Position(1)
In US$ million unless
otherwise specified. 31 December 2023 30 September 2023 31 December 2022
---------------- ----------------- ----------------
Cash and cash
equivalents 517 625 951
$500m Senior Notes (500) (500) (500)
$330m Convertible
Senior Notes -- -- (330)
$645m Revolving Credit
Facility (465) (535) --
$167m Lafigué Term
Loan (107) (35) --
NET CASH / (NET DEBT)
POSITION (555) (445) 121
----------------------- ---------------- ----------------- ----------------
(1) All Q4-2023 and FY-2023 numbers are preliminary and reflect
our expected results as of the date of this press release.
-- At 31 December 2023, Endeavour's available sources of liquidity remained
strong at approximately $756.5 million, which included approximately
$517.2 million of cash and cash equivalents, $180.0 million in undrawn
funds from its revolving credit facility and $59.5 million in undrawn
funds from the Lafigué Term Loan.
MANAGEMENT CHANGES
On 4 January, the Board of Directors announced the termination
of the President and Chief Executive Officer, Sébastien de
Montessus, for serious misconduct with effect from that date. Mr.
de Montessus was also removed from the Board of Directors. This
followed an investigation by the Board into an irregular payment
instruction issued by him in relation to an asset disposal
undertaken by the Company. The investigation arose from a review of
acquisitions and disposals. The investigation is ongoing and will
be progressed as quickly as possible, with further updates to be
provided as appropriate.
As part of the Board's succession planning processes, the
directors appointed Ian Cockerill as Chief Executive Officer and
Executive Director. As a director and Chair of the Technical
Committee since May 2022 and Deputy Chair of the Board since
September 2023, Ian has extensive knowledge of the company and its
strategy. Ian was also a director of Endeavour between Q3-2013 and
Q1-2019. Ian has over four decades of experience in the global
natural resources industry. During his career he has held senior
roles covering operational, project and executive positions around
the world, including in Africa, having held executive roles at
major international mining companies, including Chief Executive
Officer of Gold Fields and Anglo Coal, a subsidiary of Anglo
American, as well as non-executive positions.
QUALIFIED PERSONS
Mark Morcombe, COO of Endeavour Mining PLC., a Fellow of the
Australasian Institute of Mining and Metallurgy, is a "Qualified
Person" as defined by National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") and has reviewed and
approved the technical information in this news release.
CONTACT INFORMATION
For Investor Relations enquiries: For Media enquiries:
Martino De Ciccio Brunswick Group LLP in London
Deputy CFO and Head of Investor Relations Carole Cable, Partner
+442030112723 +442074045959
investor@endeavourmining.com ccable@brunswickgroup.com
ABOUTEAVOUR MINING PLC
Endeavour Mining is one of the world's senior gold producers and
the largest in West Africa, with operating assets across Senegal,
Cote d'Ivoire and Burkina Faso and a strong portfolio of advanced
development projects and exploration assets in the highly
prospective Birimian Greenstone Belt across West Africa.
A member of the World Gold Council, Endeavour is committed to
the principles of responsible mining and delivering sustainable
value to its employees, stakeholders and the communities where it
operates. Endeavour is admitted to listing and to trading on the
London Stock Exchange and the Toronto Stock Exchange, under the
symbol EDV.
For more information, please visit www.endeavourmining.com.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" within the
meaning of applicable securities laws. All statements, other than
statements of historical fact, are "forward-looking statements",
including but not limited to, statements with respect to
Endeavour's plans and operating performance, the estimation of
mineral reserves and resources, the timing and amount of estimated
future production, costs of future production, future capital
expenditures, the success of exploration activities, the
anticipated timing for the payment of a shareholder dividend and
statements with respect to future dividends payable to the
Company's shareholders, the completion of studies, mine life and
any potential extensions, the future price of gold and the share
buyback programme. Generally, these forward-looking statements can
be identified by the use of forward-looking terminology such as
"expects", "expected", "budgeted", "forecasts", "anticipates",
believes", "plan", "target", "opportunities", "objective",
"assume", "intention", "goal", "continue", "estimate", "potential",
"strategy", "future", "aim", "may", "will", "can", "could", "would"
and similar expressions .
Forward-looking statements, while based on management's
reasonable estimates, projections and assumptions at the date the
statements are made, are subject to risks and uncertainties that
may cause actual results to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: risks related to the successful completion of
divestitures; risks related to international operations; risks
related to general economic conditions and the impact of credit
availability on the timing of cash flows and the values of assets
and liabilities based on projected future cash flows; Endeavour's
financial results, cash flows and future prospects being consistent
with Endeavour expectations in amounts sufficient to permit
sustained dividend payments; the completion of studies on the
timelines currently expected, and the results of those studies
being consistent with Endeavour's current expectations; actual
results of current exploration activities; production and cost of
sales forecasts for Endeavour meeting expectations; unanticipated
reclamation expenses; changes in project parameters as plans
continue to be refined; fluctuations in prices of metals including
gold; fluctuations in foreign currency exchange rates; increases in
market prices of mining consumables; possible variations in ore
reserves, grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; extreme weather events,
natural disasters, supply
disruptions, power disruptions, accidents, pit wall slides,
labour disputes, title disputes, claims and limitations on
insurance coverage and other risks of the mining industry; delays
in the completion of development or construction activities;
changes in national and local government legislation, regulation of
mining operations, tax rules and regulations and changes in the
administration of laws, policies and practices in the jurisdictions
in which Endeavour operates; disputes, litigation, regulatory
proceedings and audits; adverse political and economic developments
in countries in which Endeavour operates, including but not limited
to acts of war, terrorism, sabotage, civil disturbances,
non-renewal of key licenses by government authorities, or the
expropriation or nationalisation of any of Endeavour's property;
risks associated with illegal and artisanal mining; environmental
hazards; and risks associated with new diseases, epidemics and
pandemics.
Although Endeavour has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Please refer to Endeavour's most recent Annual
Information Form filed under its profile at www.sedarplus.ca for
further information respecting the risks affecting Endeavour and
its business.
The declaration and payment of future dividends and the amount
of any such dividends will be subject to the determination of the
Board of Directors, in its sole and absolute discretion, taking
into account, among other things, economic conditions, business
performance, financial condition, growth plans, expected capital
requirements, compliance with the Company's constating documents,
all applicable laws, including the rules and policies of any
applicable stock exchange, as well as any contractual restrictions
on such dividends, including any agreements entered into with
lenders to the Company, and any other factors that the Board of
Directors deems appropriate at the relevant time. There can be no
assurance that any dividends will be paid at the intended rate or
at all in the future.
CAUTIONARY STATEMENTS REGARDING 2023 PRODUCTION AND AISC
Whether or not expressly stated, all figures contained in this
press release including production and AISC levels are preliminary
and reflect our expected 2023 results as of the date of this press
release. Actual reported fourth quarter and 2023 results are
subject to management's final review, as well as audit by the
company's independent accounting firm, and may vary significantly
from those expectations because of a number of factors, including,
without limitation, additional or revised information, and changes
in accounting standards or policies, or in how those standards are
applied. The fourth quarter and 2023 AISC include expected amounts
for year-end accrual and working capital adjustments. Endeavour
will provide additional discussion and analysis and other important
information about its 2023 production and AISC levels when it
reports actual results.
NON-GAAP MEASURES
Some of the indicators used by Endeavour in this press release
represent non-IFRS financial measures, including "all-in sustaining
cost", "net cash / net debt", "EBITDA", "adjusted EBITDA", "net
cash / net debt to adjusted EBITDA ratio", "cash flow from
continuing operations", "total cash cost per ounce", "sustaining
and non-sustaining capital". These measures are presented as they
can provide useful information to assist investors with their
evaluation of the pro forma performance. Since the non-IFRS
performance measures listed herein do not have any standardised
definition prescribed by IFRS, they may not be comparable to
similar measures presented by other companies. Accordingly, they
are intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Please refer to the
non-GAAP measures section in this press release and in the
Company's most recently filed Management Report for a
reconciliation of the non-IFRS financial measures used in this
press release.
Corporate Office: 5 Young St, Kensington, London W8 5EH, UK
Attachments
-- EDV_Q4-23 Mine Statistics
https://ml-eu.globenewswire.com/Resource/Download/2bca3bba-9b23-4312-b193-f08f7b36c5ac
-- NR - EDV Q4 and FY-2023 Preliminary Results and 2024 Guidance
https://ml-eu.globenewswire.com/Resource/Download/8187631e-80e5-41b5-9abe-ba5d70a895c2
(END) Dow Jones Newswires
January 22, 2024 01:30 ET (06:30 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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