Endeavour Mining (LSE: EDV) Reaffirms FY24 Production Target of 1,130-1,270koz Amid Higher Output from Its Operation

3 min read | August 07, 2024 05:23 AM AEST | By Team Kalkine

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Endeavour Mining (LSE: EDV) Reaffirms FY24 Production Target of 1,130-1,270koz Amid Higher Output from Its Operation — Image source: Shutterstock

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Highlights

EDV’s FY23 revenue rose to USD 2,115 million, up 2.2% from the previous year.

Adjusted EBITDA fell 7.6% due to higher production and administrative costs.

FY24 capital expenditures include USD 125 million sustaining and USD 245 million growth investments.

Endeavour Mining PLC (LSE:EDV) is a major gold producer in West Africa and is listed on the FTSE 100 index. The company has a range of advanced development projects and exploration assets.

In FY23, the company reported revenue of USD 2,115 million, reflecting a 2.2% increase compared to the previous year. This growth was driven by a rise in the realized gold price, which went up by USD 148 per ounce from USD 1,791 in FY22 to USD 1,939 in FY23, excluding the effects of the revenue protection programme. However, adjusted EBITDA declined by approximately 7.6% due to higher production costs and increased administrative expenses, which resulted in lower profitability for the group in FY23 compared to FY22.

Additionally, in Q1FY24, the company had a higher EBITDA margin of 45.2% compared to industry median of 28.9%.

Recent Business Update

According to the company's press release dated July 31, 2024, Endeavour Mining has reaffirmed its strong commitment to shareholder returns. The group has announced a minimum dividend payout of USD 435 million for both 2024 and 2025. Additionally, it plans to complement this with share buybacks totaling USD 20 million in the first half of 2024.

Company outlook

For FY2024, the group's sustaining capital expenditure is set at USD 125.0 million, with USD 51.3 million already spent in the first half of the year on various ongoing projects. The growth capital expenditure is projected to be USD 245.0 million, of which USD 192.1 million has been used, primarily for the BIOX® expansion in Senegal and the Lafigué mine development in Côte d'Ivoire. Despite expected lower yields at Sabodala-Massawa, the group's production target of 1,130 to 1,270 koz for FY-2024 is anticipated to be met, thanks to higher output from the Ity operation.

Top 10 shareholders

The top 10 shareholders of EDV collectively own approximately 55.42% of the company's shares. La Mancha Investments S.à r.l. is the largest shareholder, holding about 18.39% of the total shares. This is followed by BlackRock Investment Management (UK) Ltd., which holds around 13.27% of the shares.

Stock performance

EDV's stock has experienced a decline of approximately 7.42% over the past three months, while showing a notable increase of around 16.51% over the last six months. The stock's 52-week low stands at GBX 1,231.00, and its 52-week high is GBX 1,902.00. Currently, it is trading close to the midpoint of these two extremes.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 06 August 2024. The reference data in this report has been partly sourced from EODHD/Others.

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