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Highlights
- Endeavour Mining is a gold producer based in West Africa with a rich portfolio of advanced development and exploration projects.
- In Q1 FY23, EDV reported a higher EBITDA of USD 206 million as compared to the EBITDA (loss) of USD 110 million in Q4 FY22.
- The company ended FY22 with lower operating profits as compared to FY21.
FTSE 100 index listed Endeavour Mining PLC (LSE:EDV) is a gold producer based in West Africa with a rich portfolio of advanced development and exploration projects.
In the first quarter of FY23, the company reported a higher EBITDA of USD 206 million as compared to the EBITDA (loss) of USD 110 million in the previous reported period (Q4 FY22). Also, the net earnings attributable to shareholders stood positive at USD 4 million in Q1 FY23 against the net loss attributable to shareholders of USD 256 million in Q4 FY22.
Although the gold production slipped to 301 Koz (thousand ounces) in Q1 FY23 against 355 Koz in Q4 FY22, the management is optimistic to meet the FY23 production guidance of 1,325 Koz to 1,425 koz at an AISC in the range from USD 940/ oz to USD 995/oz, as a major part of the production is expected to happen in the second half of FY23.
Also, when compared to FY21, the company saw a decline in the gold production from 1,436 koz in FY21 to 1,400 koz in FY22. This has led to a decline in business revenue.
Overall, the company ended FY22 with lower operating profits as compared to FY21.
What’s the outlook for FY23?
For the full fiscal year 2023, EDV expects the sustainable capital expenditure to be at USD 165.0 million and the non-sustainable capital expenditure to be around USD 205.0 million.
Also, the company has estimated that its gold production will range from 1,325 Koz to 1,425 Koz in FY23, while the AISC will be between USD 940/oz and USD 995/ oz in FY23.
Top 10 shareholders
Around 52.84% of the total shareholdings is held by the top ten shareholders of the company. In the present day, La Mancha Investments S.à r.l. owns around 18.01% shares in the firm, while BlackRock Investment Management (UK) Ltd. holds approximately 12.77% shareholding.
Stock price performance
There has been a fall of about 6.78% in the company’s stock price in the last three months. The share price has increased by nearly 1.68% over the last six months. The stocks 52-week low and 52-week high stands at GBX 1,505.00 & 2,160.00, respectively.
Data Source: EODHD/Others, Analysis done by Kalkine Group
Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
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 21 July 2023. The reference data in this report has been partly sourced from EODHD/Others.
