viewEndeavour Mining Corp

Endeavour Mining posts strong third quarter, as it declares maiden dividend and extends mine life at two flagship assets

The miner also announced an extension to the mine-life at its two flagship operations at the Hounde and Ity mine

Endeavour Mining Corp -
The group declared a maiden dividend of US$60 million, or US$0.37 a share for the 2020 fiscal year, which represents a yield of 1.6%

Endeavour Mining Corp (TSE:EDV) (OTCMKTS: EDVMF), the West-Africa focused gold producer, reported a strong third quarter, which saw it lift output and reduce costs, while also declaring a maiden dividend.

The miner also announced an extension to the mine-life at its two flagship operations - at the Hounde and Ity mine, following successful exploration,which will see both assets potentially generating a quarter of a million ounces per year.

READ: Endeavour Mining eyes top-end output from Boungou mine in Burkina Faso after infrastructure improvements

"We are very pleased with our strong performance during the third quarter, which positions us to achieve our annual guidance set at the beginning of the year despite the ongoing challenges presented by the global COVID-19 pandemic," said Endeavour CEO Sebastien de Montessus in a statement.

Given the strong balance sheet and expected robust free cash flow generation, he announced a maiden dividend of US$60 million, or US$0.37 a share for the 2020 fiscal year, which represents a yield of 1.6%.

"Our goal is to maintain a similar dividend yield until we have reached a targeted net cash position of $250 million," the mining company boss added.

For the period ended September 30, 2020, group production increased by 64% to 244,000 ounces, compared to the second quarter this year, while all-in-sustaining costs (AISC) decreased by $33 per ounce (oz) to US$906 per ounce.

There was strong operating cash flow generation at a record US$223 million or US$1.37 per share for the quarter, following the accelerated integration of the SEMAFO Inc assets, Endeavour added.

The company's adjusted net earnings for the quarter totaled US$72 million, up from US$33 million in the same period in 2019, on revenue of US$482 million, versus US$267 million a year earlier.

Notably, the company's net debt has decreased 71% in the last 12 months and by US$298 million in the third quarter to $175 million, Endeavour said.

For the full year, it is on track to achieve its production guidance of between 995,000 and 1,095,000 ounces at an AISC of between US$865 and US$915 per ounce.

Endeavour has six producing mines across Côte d’Ivoire and Burkina Faso. It also has four potential development projects and exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d’Ivoire, Mali and Guinea.

In a separate statement on Thursday, it also told investors that the mine plans for the Houndé mine in Burkina Faso and the Ity mine in Côte d’Ivoire had been updated to allow for the 2 million additional ounces, which have been discovered at Kari Pump, Kari West and Le Plaque.

Combined annual production at the two mines is now expected to average around 500,000  ounces over the next five years (2021-2025) and around 465,000 ounces over the next ten years (2021-2030). Notably, this is an increase of  27% and 58% respectively compared to the outlook provided in the construction decision studies.

Mining permits have been granted for both the Kari and Le Plaque areas, at Houndé and Ity, respectively, while further maiden reserves are expected by year-end for the newly discovered Kari area deposits at Houndé, the firm noted.

Shares in Toronto advanced 3.4% to C$30.42 each.

---Updates for share price--

Contact the author at giles@proactiveinvestors.com

Quick facts: Endeavour Mining Corp

Price: 23.98 CAD

Market: TSX
Market Cap: $5.82 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Endeavour Mining Corp named herein, including the promotion by the Company of Endeavour Mining Corp in any Content on the Site, the Company...


Endeavour Mining ramps up exploration efforts with Houndé mine in Africa

Endeavour Mining (TSE: EDV) CFO Vincent Benoit tells Proactive Investors the gold producer has recently made two new discoveries at the company's Kari Pump asset at the Houndé mine in Burkina Faso, Africa. Benoit says the company has successfully extended the Kari Pump high-grade...

on 06/08/2018

3 min read