The following is a summary of the Endeavour Mining Plc (EDVMF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Endeavour Mining produced 1.1 million ounces of gold in 2023, their 11th consecutive year of meeting production guidance.
Despite higher royalty costs, Endeavour reported lower all-in sustaining costs compared to most industry players.
Endeavour spent $448 million on growth capital and returned $266 million to shareholders through dividends and share buybacks.
Endeavour maintained healthy leverage with 0.5 times net debt to adjusted EBITDA.
Stable Q4 production was reported with an improvement in all-in sustaining costs and realized gold price by 2% each, leading to an 11% increase in adjusted EBITDA.
Operating cash flow before working capital increased by 103%, but net debt also increased by $110 million to $555 million due to spending on growth, exploration, and share buybacks.
The predicted AISC guidance for the upcoming period is $1850, and cash leakage for the next year is expected to be around $200 million.
Business Progress:
Endeavour is progressing with the construction of Sabodala-Massawa and Lafigue projects which are on schedule and budget.
Significant exploration success at Tanda-Iguela site, leading to a 303% increase in indicated resource.
The company is transitioning towards enhanced cash flow generation, debt reduction, and increased shareholder returns.
Endeavour complied with responsible gold mining principles across all sites in 2023, emphasizing on safety and sustainable socioeconomic growth.
Production is expected to increase at Sabodala-Massawa and Ity mines in 2024 due to new developments.
Endeavour plans to spend $15 million on the exploration program in 2024, focusing on the Assafou deposit.
The company's future strategy is to generate cash flow from operations, strengthen the balance sheet, reward shareholders, and adopt a careful approach towards mergers and acquisitions.
More details: ENDEAVOUR MINING PLC IR
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