Endeavour Mining released its customary operational and financial update to the market on 22 January, showing Q423 production of 280koz and FY23 production of 1,072koz (cf prior guidance of 1,060–1,135koz) – the 11th consecutive year in which it has achieved or exceeded guidance. Notwithstanding an increase in Burkinabe royalty rates in November, all-in sustaining costs (AISC) were very close to Edison Group's previous expectations at an industry low of US$964/oz (cf a prior guidance range of US$895–950/oz). Simultaneously, Endeavour announced a net debt position as at end-December of US$555m (excluding leases) and a final dividend of US$100m, to take the total FY23 distribution to US$200m, which was 14% above the minimum committed level. This note updates Edison’s forecasts for both Q4/FY23 and FY24 in the light of Endeavour’s announcement.
1 February 2024
