The following is a summary of the Endeavour Mining Plc (EDVMF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Endeavour reported a Q1 2024 production decrease to 219,000 ounces, a 22% drop from the previous quarter.
Increase in all-in sustaining cost to $1,186 per ounce mainly due to lower production.
Net debt rose to around $831 million as a result of over $235 million investment.
Lower production at higher costs led to a dip in adjusted EBITDA and operating cash flow.
Adjusted net earnings remained steady due to lower income tax expenses.
An outstanding payment of $125 million is yet to be received.
Cash Capital Expenditure was $179 million in the first quarter, and is expected to be $150 million - $160 million in the second quarter.
Business Progress:
The company is on track to meet its full-year 2024 guidance, with expectations weighted towards H2.
First gold delivery at the Sabodala-Massawa BIOX section was successful.
The Lafigué development project is running well, anticipated to deliver first gold in late Q2.
An exploration program focused on converting resources to reserves was launched.
The Sabodala-Massawa expansion project has started delivering gold, set to strengthen portfolio quality and economic sustainability.
$100 million invested in dividends and $30 million in share buybacks in Q1.
Debt reduction is expected to be a major focus in the second half of 2024, enhancing Endeavour's financial stability.
Continued focus on mining high grade ore from multiple pits and advancing its $21 million exploration program.
A 37 Megawatt solar project at Sabadola-Massawa to reduce fuel consumption, lower costs and minimize greenhouse gas emissions is underway.
Ity is on track to meet its production and cost guidance for the full year.
Construction project delivered on time with no lost time injuries over more 3.5 million work hours.
Efforts to convert existing resources into reserves increasing, promising for near-term mining plans.
Commissioning of the solar project at Sabodala-Massawa scheduled for later this year.
More details: ENDEAVOUR MINING PLC IR
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