Endeavour lifts H1 output 38% on ramp-up, expansion

Africa-focused Endeavour Mining’s (TSX, LSE: EDV; US-OTC: EDVMF) gold output jumped by more than a third in the first half of the year to June 30, reflecting recent mine expansions and improved grades.

First-half output hit 647,000 oz. gold at an all-in sustaining cost (AISC) of $1,281 per oz. (C$1,773.90), the London-headquartered miner said on Wednesday. That’s up 3.6% from $1,237 per oz. in the same period last year.

“As a result of our larger portfolio, following the completion of our growth phase 12 months ago, H1-2025 production was 38% higher than the same period last year, with our all-in sustaining margin 80% higher,” CEO Ian Cockerill said on a conference call with financial analysts. “[That] ensures that we realized the full benefit of the strong gold price environment.”

Analyst sentiment is positive. Jefferies raised its price target to C$46 per share, citing confidence in Endeavour’s financial discipline and the company’s ability to run mines.

At C$41.36, Endeavour’s Toronto-traded shares fell 3% on Thursday morning, despite 60% growth in the year to date. Endeavour has a market capitalization of C$10 billion.

Strong performance

Production benefited greatly from two growth projects achieving commercial production in the third quarter of 2024: Côte d’Ivoire’s Lafigué mine, which is ramping up, and the expansion of the biological oxidation plant at Sabodala-Massawa in eastern Senegal.

Endeavour’s second-quarter production totalled 306,000 oz., a decline from 341,000 oz. in the first quarter, driven by lower processed grades at the company’s Houndé and Mana operations in Burkina Faso, as well as at the Sabodala-Massawa mines. However, Lafigué offset some of these reductions with increased mill throughput.

The company nevertheless remains on track to meet its target of producing between 1.11 – 1.26 million oz. gold this year, Cockerill said. AISC is forecast to range between $1,150 – $1,350 per oz. despite higher royalty costs linked to strong gold prices, which averaged $3,107 per oz. in the first half.

Free cash

Endeavour generated $879 million in free cash flow over the past 12 months. This is equivalent to $687 per oz. produced, a yield exceeding 17%.

The company declared a record dividend of $150 million for the half-year period, supplemented by $69 million in share buybacks. Total shareholder returns reached $338 per oz. of gold produced, highlighting a commitment to strong investor returns, Cockerill confirmed.

Endeavour continues to advance its flagship growth project, Assafou in Côte d’Ivoire, with the definitive feasibility study on track for completion by early next year. The project’s December prefeasibility study outlines an average annual output of 329,000 oz. at an AISC of $892 per oz. over the first 10 years, with a $2.5 billion after-tax net present value (5% discount) and a 40% internal rate of return at a gold price of $2,500 per ounce.

Exploration at nearby satellite targets is expected to yield a resource update later this year, further boosting the company’s growth pipeline.