Endeavour Mining recently released its second-quarter financial results, revealing some key details. Here are the highlights:
Revenue
The West Africa-focused gold miner reported revenue of $524.1 million for the quarter. While this is a decrease from the $629.6 million revenue generated in the same period last year, it falls below analyst estimates of $583 million.
Earnings Per Share
Earnings per share dropped to 32 cents, down from 76 cents in the previous year’s second quarter. This figure is slightly below the company’s own estimates of 36 cents.
Net Profit
Contrary to the projected net profit of $19 million, according to FactSet, Endeavour Mining actually experienced a loss of $109.3 million. This is in comparison to the $189.4 million profit recorded a year earlier.
Key Factors
Costs
Endeavour Mining saw an increase in all-in sustaining costs, which reached $1,136 per ounce compared to $1,022 in the previous quarter. Despite this, it was better than Berenberg’s forecast of $1,185 per ounce. The higher costs were attributed to factors such as the increased use of self-generated power at the Ity mine in Ivory Coast and a higher strip ratio at the Mana mine in Burkina Faso.
Tanda-Iguela Exploration Asset
Endeavour Mining expressed confidence in the potential of its Tanda-Iguela exploration asset in Ivory Coast. The company expanded its drill program for the year to 180,000 meters and increased its group exploration budget by $15 million to $80 million. CEO Sebastien de Montessus stated that further drilling at the Tanda-Iguela discovery has exceeded expectations.
Dividend
Endeavour Mining declared a dividend of $100 million, or 40 cents per share, for the half year. This is consistent with the previous year’s dividend and aligns with Morgan Stanley’s forecast.
Outlook
Although the company’s financial results fell short of market expectations, Endeavour Mining remains confident in its full-year guidance. It anticipates an improved performance in the second half of the year and aims to produce 1.06 million to 1.135 million ounces of gold, with all-in sustaining costs ranging from $895 to $950 per ounce.
