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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Endeavour Mining Plc | LSE:EDV | London | Ordinary Share | GB00BL6K5J42 | ORD USD0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -30.00 | -1.75% | 1,687.00 | 1,681.00 | 1,685.00 | 1,715.00 | 1,662.00 | 1,685.00 | 627,295 | 16:35:30 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 2.51B | -57.3M | -0.2324 | -124.96 | 7.16B |
TIDMEDVEAVOUR ACHIEVES TOP OF FY-2022 GUIDANCE;
ANNOUNCES H2-2022 DIVID OF $100M
FY-2022 production of 1.4Moz at AISC of $928/oz l FY-2022 dividend of $200m l FY-2022 share buyback of $99m
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OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)
-- Strong Q4-2022 production of 355koz, up 4% over
Q3-2022, while AISC remained stable at $954/oz
-- FY-2022 production of 1,400koz at an AISC of $928/oz,
marking 10th consecutive year of achieving or beating
guidance
-- FY-2023 production guidance of 1,325-1,425koz at an
industry leading AISC of $940-995/oz
-- Strong financial position at year end with $121m of
net cash, up $119m over Q3-2022
SHAREHOLDER RETURNS
-- H2-2022 dividend of $100m declared, totaling $200m
for FY-2022 which is 33% above the minimum committed
dividend
-- Share buyback programme continued with $24m worth of
shares repurchased in Q4-2022, totaling $99m for
FY-2022
ORGANIC GROWTH
-- Sabodala-Massawa expansion and Lafigué
greenfield project construction are both on track
with 53% and 30% of the capital committed
respectively, with pricing in line with expectations
-- Continued strong exploration focus in 2023 with $70m
Group budget; key focus area is the new Tanda-Iguela
discovery
London, 23 January 2023 -- Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) ("Endeavour" or the "Group" or the "Company") is pleased to announce its preliminary financial and operating results for the fourth quarter and full year 2022, with highlights provided in the table below.
Table 1: Preliminary Financial and Operating Results Highlights(1)
THREE MONTHSED YEARED
--------------
In US$ million <DELTA>
unless 31 30 31 31 31 FY-2022
otherwise December September December December December vs.
specified 2022 2022 2021 2022 2021 FY-2021
-------------- -------- --------- -------- -------- --------- --------
PRODUCTION AND
AISC
HIGHLIGHTS(2)
Gold
Production,
koz 355 343 378 1,400 1,436 (3)%
Gold Sold, koz 352 338 370 1,393 1,478 (6)%
All-in
Sustaining
Cost(3) ,
$/oz 954 959 823 928 882 +5%
SHAREHOLDER
RETURNS
Shareholder
dividends
paid -- 100 -- 170 130 +31%
Share buyback 24 37 44 99 138 (28)%
Total
shareholder
returns paid 24 137 44 269 268 --%
-------------- -------- --------- -------- -------- --------- --------
ORGANIC GROWTH
Growth capital
spend (56) (30) (12) (128) (63) +103%
-------------- -------- --------- -------- -------- --------- --------
FINANCIAL
POSITION
HIGHLIGHT(1)
Cash 951 833 906 951 906 +5%
Principal debt (830) (830) (830) (830) (830) n.a.
Net cash 121 3 76 121 76 +59%
-------------- -------- --------- -------- -------- --------- --------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release. (2) Production and AISC highlights from continuing operations (3) This is a non-GAAP measure.
Sebastien de Montessus, President and CEO, commented: "2022 was another successful year for Endeavour in which we delivered against all our objectives and met guidance for the 10th consecutive year.
We produced 1.4Moz of gold over the year, reaching the top end of our guidance. We are particularly pleased to have achieved our all-in sustaining cost guidance of below $930/oz, despite the inflationary pressures impacting the industry, as a result of our strong production performance and optimisation initiatives.
This operational performance resulted in robust cash flow generation which has allowed us to fund both our growth and shareholder returns programme while also improving our financial position. We are excited by our growth prospects given construction activities for the Sabodala-Massawa expansion and the Lafigué greenfield project are progressing well, with both on budget and on track for first production in 2024. Moreover, our exploration programme was very successful with the discovery of the promising Tanda-Iguela deposit, which has the potential to be another cornerstone asset for the Company.
During 2022, we continued to deliver on our commitment to generate attractive shareholder returns with approximately $100 million of share buybacks completed and $200 million of dividends announced for the year, which is well above our $150 million minimum commitment. This represents a return to shareholders of $212/oz of gold produced in the form of dividends and buybacks.
With a strengthened management team, we look forward to further success in 2023, with our guidance demonstrating confidence in our continued ability to deliver against our strategic objectives for the benefit of all our stakeholders."
2022 SCORECARD
The key targets set for 2022, along with the results achieved, are summarised in Table 2 below.
Table 2: 2022 Scorecard
2022 TARGET 2022 ACHIEVEMENT
---------------------- -------------------------
Production, koz 1,315 - 1,400 1,400
AISC, $/oz 880 - 930 928
Leverage <0.5x Net Debt/adj. $121m net cash
EBITDA LTM
Total shareholder capital $150m minimum dividend $299m shareholder returns
returns
---------------------- -------------------------
MANAGEMENT CHANGES
As part of its continuous efforts to optimise the business and deliver Endeavour's next growth phase, the Company is pleased to announce several changes to its senior management team.
In March 2023, Joanna Pearson will be stepping down as EVP and Chief Financial Officer ("CFO") and will be replaced by Guy Young. Mr. Young will join Endeavour from Vesuvius plc, the FTSE250 molten metal engineering and technology group, where he has been Chief Financial Officer since 2015. Prior to this, he served as Chief Financial Officer of Tarmac and subsequently Lafarge Tarmac, the British building materials company. He previously held a number of senior financial and business development positions at Anglo-American plc. In addition, Martino De Ciccio, currently Vice President of Strategy and Investor Relations, will assume the newly created role of Deputy CFO, maintaining his focus on investor relations.
Further changes have also been made to the Company's senior team to reflect the company's evolution over the past years. The Executive Committee will now be composed of ten members comprised of Sebastien de Montessus as CEO, Mark Morcombe as Chief Operating Officer, Guy Young as CFO, Morgan Carroll as EVP Corporate Finance and General Counsel, Pascal Bernasconi as EVP Public Affairs and Security, David Dragone as EVP HR and Communications who recently joined the Group, Martin White as EVP Projects (previously General Manager at Endeavour's Mana mine), Jono Lawrence as EVP Exploration (previously SVP Exploration), Guenole Pichevin as EVP Strategy and Business Development (previously VP Strategy and Business Development), and Djaria Traore as EVP ESG and Supply Chain (previously VP Supply Chain).
In accordance with Endeavour's succession planning strategy, Jono Lawrence replaces Patrick Bouisset who retired on 31 December 2022. Subject to shareholders approval at the next Annual General Meeting in May 2023, Mr. Bouisset is expected to be appointed to the Endeavour Board as a Non-Executive Director and a La Mancha representative, replacing Jim Askew who has decided to retire and will not therefore stand for re-election. The Company confirms that there is no further information to be disclosed in respect of Mr. Bouisset's appointment under the FCA's Listing Rule 9.6.13.
SHAREHOLDER RETURNS PROGRAMME
-- Endeavour is pleased to announce its H2-2022 interim dividend of $100
million or approximately $0.41 per share based on its current issued
share capital. As such, the total dividend amounts to $200 million or
approximately $0.81 per share for FY-2022, which represents $50 million
or 33% more than the minimum dividend commitment for the year,
reiterating Endeavour's strong commitment to paying supplemental
shareholder returns.
-- The ex-dividend date for the H2-2022 interim dividend will be 23 February
2023 and the record date will be 24 February 2023. The dividend will be
paid on or about 28 March 2023 (the "Payment Date"). Shareholders of
shares traded on the Toronto Stock Exchange will receive dividends in
Canadian Dollars ("CAD"), but can elect to receive United States Dollars
("USD"). Shareholders of shares traded on the London Stock Exchange will
receive dividends in USD, but can elect to receive Pounds Sterling
("GBP"). Currency elections and elections under the Company's dividend
reinvestment plan ("DRIP") must be made by shareholders prior to 17:00
GMT on 7 March 2023. Dividends will be paid in the default or elected
currency on the Payment Date, at the prevailing USD:CAD and USD:GBP
exchange rates on 13 March 2022. This dividend does not qualify as an
"eligible dividend" for Canadian income tax purposes. The tax
consequences of the dividend will be dependent on the particular
circumstances of a shareholder.
-- Shareholder returns are being supplemented through the Company's share
buyback programme. A total of $98.7 million, or 4.6 million shares were
repurchased during FY-2022, of which $24.2 million or 1.2 million shares
were repurchased in Q4-2022.
-- As shown in Table 3 below, Endeavour returned $299 million to
shareholders for FY-2022 through dividends and share buybacks, equivalent
to $212 per ounce produced. Since the launch of the Company's shareholder
returns programme in early 2021, a cumulative $637 million (including the
upcoming H2-2022 dividend) has been delivered to shareholders in the form
of dividends and share buybacks.
Table 3: Actual Shareholder Returns vs. Minimum Commitment
MINIMUM ACTUAL SHAREHOLDER RETURNS SUPPLEMENTAL
All amounts
in US$ DIVID BUYBACKS TOTAL SHAREHOLDER
million COMMITMENT DIVIDS COMPLETED RETURNS RETURNS
------------ --------- ---------- ------------ ------------
FY-2020 60 60 -- 60 --
FY-2021 125 140 138 278 +153
FY-2022(1) 150 200 99 299 +149
------------ --------- ---------- ------------ ------------
TOTAL 335 400 237 637 +302
------------- ------------ --------- ---------- ------------ ------------
(1) H2-2022 dividend declared on 23 January 2023, to be paid on or about 28 March 2023.
FINANCIAL POSITION & LIQUIDITY
-- As shown in Table 4 below, a net cash position of $121.1 million was
achieved at year end, which represents an improvement of $118.6 million
compared to the prior quarter and $44.9 million over the previous year.
In addition to improving the balance sheet, the Company paid $170.0
million in dividends and $98.7 million in share buybacks during the year
and incurred $127.7 million of growth capital spend.
Table 4: Net Debt Position(1)
In US$ million unless otherwise 31 December 30 September 31 December
specified. 2022 2022 2021
----------- ------------ -----------
Cash and cash equivalents 951 833 906
Principal amount of Senior Notes (500) (500) (500)
Convertible senior bond (330) (330) (330)
NET CASH / (NET DEBT) POSITION 121 3 76
-------------------------------------- ----------- ------------ -----------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect our expected results as of the date of this press release.
-- At 31 December 2022, Endeavour's available sources of financing and
liquidity remained strong at approximately $1.53 billion, which included
approximately $951 million from its current cash position and $575
million in undrawn funds from its revolving credit facility, which has
been upsized from $500 million to $575 million to provide additional
liquidity headroom during the Company's ongoing construction phase. As a
result, the Company has significant financial flexibility to settle the
principal amount of its outstanding convertible bond in cash at its
maturity on 15 February 2023.
2022 OPERATIONAL PERFORMANCE OVERVIEW
-- FY-2022 production from continuing operations amounted to 1,400koz,
achieving the top end of the guided 1,315-1,400koz range while all-in
sustaining costs ("AISC") amounted to $928/oz, achieving the guided
$880-930/oz range in spite of industry-wide inflationary pressures. The
production out-performance is mainly due to the Houndé and Ity mines
which benefitted from higher than planned throughput, and the Mana mine
where higher than expected open pit mining tonnages were extracted from
the Wona open pit prior to its depletion. Inflationary pressures on costs
were partially offset by favourable foreign exchange movements as the
Euro declined against the Dollar as well as group-wide optimisation
initiatives.
-- FY-2022 production from continuing operations decreased by 36koz or 3%
from 1,436koz in FY-2021 to 1,400koz in FY-2022 due to lower production
at Boungou, Mana and Wahgnion as a result of mining and processing of
lower grade ore. AISC from continuing operations increased, in line with
guidance, from $882/oz in FY-2021 to $928/oz in FY-2022.
-- The Group's realised gold price from continuing operations, excluding the
impact of realised gains on gold hedges and inclusive of the
Sabodala-Massawa gold stream, was $1,742/oz and $1,792/oz for Q4-2022 and
FY-2022 respectively. Including the impact of the gold hedges, the
Group's realised gold price from continuing operations was $1,758/oz and
$1,807/oz for Q4-2022 and FY-2022 respectively.
Table 5: Consolidated Group Production(1)
THREE MONTHSED YEARED
(All amounts in koz, on a 31 December 30 September 31 December 31 December 31 December
100% basis) 2022 2022 2021 2022 2021
----------- ------------ ----------- ----------- -----------
Boungou 26 29 35 116 174
Hounde 63 72 77 295 293
Ity 82 81 60 313 272
Mana 46 42 54 195 205
Sabodala-Massawa(2) 103 86 105 358 345
Wahgnion(2) 36 32 47 124 147
----------- ------------ ----------- ----------- -----------
PRODUCTION FROM CONTINUING
OPERATIONS 355 343 378 1,400 1,436
--------------------------- ----------- ------------ ----------- ----------- -----------
Karma(3) -- -- 21 10 67
Agbaou(4) -- -- -- -- 13
----------- ------------ ----------- ----------- -----------
GROUP PRODUCTION 355 343 398 1,410 1,516
--------------------------- ----------- ------------ ----------- ----------- -----------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release. (2) Included for the post acquisition period commencing 10 February 2021. (3) Divested on 10 March 2022. (4) Divested on 1 March 2021.
Table 6: Consolidated All-In Sustaining Costs(1,2)
THREE MONTHSED YEARED
--------------------
31 30 31 31 31
(All amounts in December September December December December
US$/oz) 2022 2022 2021 2022 2021
-------------------- --------- --------- --------- --------- ----------
Boungou 1,118 1,219 825 1,064 801
Hounde 970 716 874 809 843
Ity 847 773 854 812 836
Mana 1,000 1,098 1,116 994 1,026
Sabodala-Massawa(3) 661 779 591 691 645
Wahgnion(3) 1,376 1,647 1,066 1,525 994
Corporate G&A 41 37 47 34 35
AISC FROM CONTINUING
OPERATIONS 954 959 823 928 882
-------------------- --------- --------- --------- --------- ----------
Karma(4) -- -- 1,256 1,504 1,162
Agbaou(5) -- -- -- -- 1,131
-------------------- --------- --------- --------- --------- ----------
GROUP AISC 954 959 908 933 897
-------------------- --------- --------- --------- --------- ----------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release. (2) This is a non-GAAP measure.
(3) Included for the post acquisition period commencing 10 February 2021. (4) Divested on 10 March 2022. (5) Divested on 1 March 2021.
2023 OUTLOOK
-- As shown in Tables 7 and 8 below, the production guidance for FY-2023
amounts to 1,325-1,425koz, which marks an increase over the FY-2022
guidance of 1,315-1,400koz, while Group AISC is expected to remain
consistent with that achieved over recent quarters at $940-995/oz. Group
production is expected to be more heavily weighted towards H2-2023. More
details on individual mine guidances have been provided in the below
sections.
Table 7: Production 2023 Guidance(1)
(All amounts in koz, on a 100% basis) 2022 ACTUALS 2023 FULL-YEAR GUIDANCE ----------------------------------- ------------ --------------------------- Boungou 116 115 -- 125 Houndé 295 270 -- 285 Ity 313 285 -- 300 Mana 195 190 -- 210 Sabodala-Massawa 358 315 -- 340 Wahgnion 124 150 -- 165 ----------------------------------- ------------ ---------- ---- --------- GROUP PRODUCTION 1,400 1,325 -- 1,425 ----------------------------------- ------------ ---------- ---- ---------
(1) All FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
Table 8: AISC 2023 Guidance(1, 2)
(All amounts in US$/oz) 2022 ACTUALS 2023 FULL-YEAR GUIDANCE ------------------------ ------------ --------------------------- Boungou 1,064 985 -- 1,075 Houndé 809 850 -- 925 Ity 812 840 -- 915 Mana 994 950 -- 1,050 Sabodala-Massawa 691 760 -- 810 Wahgnion 1,525 1,250 -- 1,350 Corporate G&A 34 35 GROUP AISC 928 940 -- 995 ------------------------ ------------ ---------- ---- ---------
(1) This is a non-GAAP measure. Refer to the non-GAAP measure section of the most recent MD&A for Endeavour. All FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release. (2) FY-2023 AISC guidance is based on an assumed average gold price of $1,750/oz and USD:EUR foreign exchange rate of 1.05.
-- Total mine capital expenditure for FY-2023, consisting of both sustaining
and non-sustaining capital spend, is expected to remain consistent with
that achieved in FY-2022 at approximately $370 million, as detailed in
the tables below. More details on individual mine capital expenditures
have been provided in the mine sections below.
Table 9: Mine Capital Expenditure for Continuing Operations 2023 Guidance(1)
(All amounts in US$m) 2022 ACTUALS 2023 FULL-YEAR GUIDANCE
------------ -----------------------
Boungou 7 5
Houndé 27 40
Ity 13 25
Mana 10 25
Sabodala-Massawa 40 45
Wahgnion 23 25
TOTAL SUSTAINING MINE CAPITAL
EXPITURES 120 165
--------------------------------------- ------------ -----------------------
Boungou 28 30
Houndé 39 35
Ity 49 40
Mana 61 45
Sabodala-Massawa 40 35
Wahgnion 32 15
Non-mining 3 5
--------------------------------------- ------------ -----------------------
TOTAL NON-SUSTAINING MINE CAPITAL
EXPITURES 252 205
--------------------------------------- ------------ -----------------------
TOTAL MINE CAPITAL EXPITURES 372 370
--------------------------------------- ------------ -----------------------
(1) All FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
-- Growth capital spend for FY-2023 is expected to amount to $400 million,
consisting of $170 million for the Sabodala-Massawa BIOX(R) Expansion
project and $230 million for the Lafigué project. Further details
are provided in the sections below.
-- As detailed in Table 10 below, exploration will continue to be a strong
focus in FY-2023 with a company-wide exploration budget of $70 million,
of which approximately 50% is expected to be expensed and 50% as is
expected to be capitalised. For FY-2023, approximately $22 million will
be spent on greenfield exploration with an increased focus on the
Tanda-Iguela property.
Table 10: Exploration 2023 Guidance
(All amounts in
US$m) 2022 ACTUALS(1) 2023 GUIDANCE 2023 ALLOCATION
--------------- ------------- ---------------
Other greenfield
projects 24 22 31%
Sabodala-Massawa
mine 15 15 21%
Ity mine 10 14 20%
Houndé mine 8 7 10%
Mana mine 7 5 7%
Wahgnion mine 9 4 6%
Lafigué mine 6 2 3%
Boungou mine 2 1 1%
--------------- ------------- ---------------
Total 81 70 100%
------------------ --------------- ------------- ---------------
(1) All FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
-- The Company's previously implemented revenue protection programme is
expected to continue to provide cash flow visibility during the current
construction phase. Outstanding contracts for FY-2023 include a collar
with a put price of $1,750 per ounce and a call price of $2,100 per ounce
for a total of approximately 300,000 ounces, or 75,000 ounces per quarter,
until Q4-2023. In addition, the Company has in place forward sales
contracts for 120,000 ounces of production in FY-2023, or approximately
30,000 ounces per quarter, at an average gold price of $1,828 per ounce.
OPERATIONAL DETAILS BY ASSET
Boungou Mine, Burkina Faso
Table 11: Boungou Performance Indicators(1)
For The Period Ended Q4-2022 Q3-2022 Q4-2021 FY-2022 FY-2021
------- ------- ------- ------- -------
Tonnes ore mined, kt 256 210 301 990 1,437
Total tonnes mined, kt 3,497 3,559 4,294 18,505 26,439
Strip ratio (incl. waste cap) 12.66 15.95 13.27 17.69 17.40
Tonnes milled, kt 295 338 352 1,348 1,352
Grade, g/t 2.85 2.84 3.36 2.80 4.07
Recovery rate, % 93 94 95 94 95
PRODUCTION, KOZ 26 29 35 116 174
------- ------- ------- ------- -------
Total cash cost/oz 1,054 1,172 778 1,008 695
AISC/OZ 1,118 1,219 825 1,064 801
------- ------- ------- ------- -------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
Q4-2022 vs Q3-2022 Insights
-- Production decreased due to lower tonnes milled and a slightly lower
recovery rate, while processed grades remained flat.
-- Total ore tonnes mined increased due to greater ore availability
and lower stripping in the West Pit compared to the prior quarter.
-- Tonnes milled decreased due to downtime experienced during the
quarter due to the previously disclosed supply chain challenges in
the quarter.
-- Average grade processed remained flat compared to the prior
quarter as a decrease in the average grade of mined ore was offset
by reduced reliance on lower grade stockpiles in the mill feed.
-- Recovery rates decreased slightly due in part to reduced volumes
in the processing circuit.
-- AISC decreased due to lower mining unit costs driven by reduced haulage
and blasting, partially offset by lower ounces sold during the quarter.
FY-2022 Performance
-- FY-2022 production totalled 116koz, which inline with the previously
disclosed outlook, stands below the guided 130-140koz range mainly due to
lower than scheduled mining activities, which limited access to higher
grade ore, as a result of supply chain delays. FY-2022 AISC amounted to
approximately $1,064/oz, which is above the guided $900-1,000/oz range
due to the lower than expected production, higher fuel prices and
increased security costs.
-- FY-2022 production decreased from 174koz in FY-2021 to 116koz in FY-2022
due to the impact of lower grade material available in FY-2022 due to
supply chain delays. FY-2022 AISC increased from $801/oz in FY-2021 to
$1,064/oz in FY-2022 due to the lower grades processed, and fuel,
consumable and security cost increases.
2023 Outlook
-- Boungou is expected to produce between 115-125koz in FY-2023 at an AISC
of between $985-1,075/oz.
-- Mining activities in H1-2023 are expected to focus on waste stripping at
the West Flank pit and ore mining in the West pit phase 3. In H2-2023,
greater ore volumes are expected to be sourced from the West Flank pit.
Mill throughput is expected to decrease slightly while grades are
expected to improve year over year. Production is expected to be weighted
towards H2-2023 as higher grades will be accessed from the West Flank pit
in H2-2023 after waste stripping activities wind down.
-- Sustaining capital expenditure is expected to decrease from approximately
$6.6 million in FY-2022 to $5.0 million in FY-2023, relating mainly to
waste stripping, plant maintenance and fuel storage capacity increases.
-- Non-sustaining capital expenditure is expected to increase from
approximately $27.5 million in FY-2022 to $30.0 million in FY-2023,
relating primarily to significant waste stripping activity at the West
Flank pit in H1-2023.
Houndé Mine, Burkina Faso
Table 12: Houndé Performance Indicators(1)
For The Period Ended Q4-2022 Q3-2022 Q4-2021 FY-2022 FY-2021
------- ------- ------- ------- -------
Tonnes ore mined, kt 1,912 1,174 777 5,754 4,397
Total tonnes mined, kt 12,901 9,178 12,297 45,490 49,917
Strip ratio (incl. waste cap) 5.75 6.82 14.83 6.91 10.35
Tonnes milled, kt 1,359 1,234 1,226 5,043 4,622
Grade, g/t 1.55 1.83 2.05 1.92 2.13
Recovery rate, % 92 92 94 93 92
PRODUCTION, KOZ 63 72 77 295 293
------- ------- ------- ------- -------
Total cash cost/oz 869 631 684 717 675
AISC/OZ 970 716 874 809 843
------- ------- ------- ------- -------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
Q4-2022 vs Q3-2022 Insights
-- Production decreased due to lower processed grades, which was slightly
offset by higher mill throughput, while recovery rates remained flat.
-- Tonnes of ore mined increased as higher volumes mined in the Kari
West and Vindaloo Main pits offset lower volumes from the Kari
Pump pit, where stripping activities have continued. Total tonnes
mined increased due to higher utilisation of the mining fleet
following the end of the wet season.
-- Tonnes milled increased as there was a higher proportion of softer
ore from Kari West in the mill feed enabling higher throughput
rates.
-- Processed grades decreased, as per the outlook previously
disclosed, due to less high grade oxide ore sourced from the Kari
Pump pit given the increased focus on stripping activities.
-- AISC increased mainly due to increased mining volumes and lower
production due to lower average grade in the ore blend in addition to
higher unit milling costs.
FY-2022 Performance
-- FY-2022 production totalled 295koz, which inline with the previously
disclosed outlook, exceeded the guided 260-275koz range, due to higher
than scheduled volumes of high grade ore sourced from the Kari area and
better mill performance following optimisation initiatives. FY-2022 AISC
amounted to approximately $809/oz, which is below the guided $875-925/oz
range due to the benefit of the higher than expected production.
-- FY-2022 production remained consistent with FY-2021 as increased mill
throughput, driven by efficiency improvements, and improved recoveries
associated with the high-grade ore sourced from the Kari Pump pit offset
a lower average grade milled. FY-2022 AISC decreased from $843/oz in
FY-2021 to approximately $809/oz in FY-2022 due to lower waste mining
volumes.
2023 Outlook
-- Houndé is expected to produce between 270-285koz in FY-2023 at AISC
of $850-925/oz.
-- Mining activities during the year will focus on the Vindaloo Main, Kari
Pump and Kari West pits. In H1-2023, ore is expected to primarily be
mined from the Kari West pit, while significant waste stripping is
underway at the Kari Pump and Vindaloo Main pits. In H2-2023, greater ore
volumes are expected to be mined from the Kari Pump and Vindaloo Main
pits following the waste stripping in H1-2023, with Kari West continuing
to provide supplemental feed. Production for the year is expected to be
weighted towards H2-2023 as the waste stripping activities in H1-2023 are
expected to provide access to higher grade ore sources at both the Kari
Pump and Vindaloo Main pits in the second half of the year. Throughput
and recoveries are expected to be slightly lower in FY-2023 compared to
FY-2022 due to a greater proportion of harder fresh ore in the blend.
-- Sustaining capital expenditure is expected to increase from $27.4 million
in FY-2022 to approximately $40.0 million in FY-2023, relating mainly to
waste stripping, fleet re-builds and plant equipment replacements and
upgrades.
-- Non-sustaining capital expenditure is expected to decrease from $39.2
million in FY-2022 to approximately $35.0 million in FY-2023, and
primarily relates to waste stripping activities and stage 8 and 9 of the
TSF1 embankment raise.
Ity Mine, Côte d'Ivoire
Table 13: Ity Performance Indicators(1)
For The Period Ended Q4-2022 Q3-2022 Q4-2021 FY-2022 FY-2021
------- ------- ------- ------- -------
Tonnes ore mined, kt 1,662 1,180 2,234 7,044 7,906
Total tonnes mined, kt 6,043 4,925 6,624 23,946 24,950
Strip ratio (incl. waste cap) 2.64 3.17 1.97 2.40 2.16
Tonnes milled, kt 1,710 1,375 1,624 6,351 6,248
Grade, g/t 1.73 2.04 1.50 1.80 1.67
Recovery rate, % 87 87 77 85 80
PRODUCTION, KOZ 82 81 60 313 272
------- ------- ------- ------- -------
Total cash cost/oz 816 741 749 769 750
AISC/OZ 847 773 854 812 836
------- ------- ------- ------- -------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
Q4-2022 vs Q3-2022 Insights
-- Production remained flat as lower processed grades were offset by higher
throughput, while recoveries remained consistent.
-- Tonnes of ore mined and total tonnes mined increased due to
increased mining rates at the Ity and Walter pits as well as
increased tonnages mined from the historic stockpiles, which was
partially offset by reduced mining at the Le Plaque pit.
-- Tonnes milled increased as a higher proportion of softer oxide ore
from the historic heap leach stockpiles was fed through the surge
bin feeder, while the previous quarter was impacted by the wet
season.
-- Processed grades decreased as a lower proportion of high grade
material from Le Plaque was processed.
-- AISC increased due to lower grade ore processed, which was partially
offset by slightly lower unit mining and processing costs.
FY-2022 Performance
-- FY-2022 production totalled 313koz, which in accordance with the
previously disclosed outlook, was above the guided 255-270koz range
mainly due to higher than expected grades, higher recoveries associated
with less processing of transitional material from Daapleu, and improved
processing plant performance from increased throughput and use of the
surge bin. FY-2022 AISC amounted to approximately $812/oz, which was
below the guided $850-900/oz range mainly due to the higher than expected
production and grades.
-- FY-2022 production increased from 272koz in FY-2021 to 313koz in FY-2022
due to an increase in throughput rates from improvements in plant
operating and maintenance strategies, continued use of the surge bin
providing supplemental oxide ore to the mill feed, higher average
processed grades due to higher portions of high grade material from Le
Plaque in the mill feed and higher recoveries due to a lower portion of
fresh material from Daapleu. FY-2022 AISC decreased from $836/oz in
FY-2021 to approximately $812/oz in FY-2022, driven largely by the
increased production during the period.
2023 Outlook
-- Ity is expected to produce between 285-300koz in FY-2023 at an AISC of
between $840-915/oz.
-- For FY-2023, ore is expected to be sourced from the Ity, Bakatouo, Le
Plaque and Walter pits, supplemented by historical heap leach stockpiles.
Ore tonnes processed for FY-2023 are expected to remain consistent with
the prior period. Grades are expected to decline compared to the prior
year due to the cessation of ore mining at the higher grade Daapleu open
pit in mid-2022, while recoveries are expected to increase as no Daapleu
fresh material is expected in the mill feed for FY-2023.
-- Sustaining capital expenditure is expected to increase from $13.4 million
in FY-2022 to $25.0 million in FY-2023 and is primarily related to waste
stripping, de-watering borehole drilling and capital spares.
-- Non-sustaining capital expenditure is expected to decrease from $49.0
million in FY-2022 to approximately $40.0 million in FY-2023, mainly
related to the completion of the Recyn Project which is expected to be
commissioned early in H2-2023, as well as the TSF Stage 5 raise and
initial design and earthworks on TSF 2. Further, the mineral sizer
project is expected to be launched in H2-2023.
Mana Mine, Burkina Faso
Table 14: Mana Performance Indicators(1)
For The Period Ended Q4-2022 Q3-2022 Q4-2021 FY-2022 FY-2021
------- ------- ------- ------- -------
OP tonnes ore mined, kt 338 76 529 1,260 2,025
OP total tonnes mined, kt 1,057 76 2,695 3,615 23,529
OP strip ratio (incl. waste
cap) 2.13 -- 4.09 1.87 10.62
UG tonnes ore mined, kt 299 250 180 944 838
Tonnes milled, kt 643 691 651 2,607 2,593
Grade, g/t 2.33 1.90 2.75 2.49 2.65
Recovery rate, % 93 92 93 92 91
PRODUCTION, KOZ 46 42 54 195 205
------- ------- ------- ------- -------
Total cash cost/oz 941 1,023 1,070 943 966
AISC/OZ 999 1,098 1,116 994 1,026
------- ------- ------- ------- -------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
Q4-2022 vs Q3-2022 Insights
-- Production increased due to higher processed grades and gold recovery
rates, partially offset by a decrease in tonnes milled.
-- Total open pit tonnes mined increased as mining activities ramped
up at the Maoula open pit.
-- Total underground ore tonnes mined increased as more production
stopes were accessed from the Siou underground mine due to the
benefit of the underground development conducted in Q3-2022.
Across both underground mines, a total of 2,117 meters of
development were completed during the quarter.
-- Tonnes milled decreased due to planned mill maintenance, as per
the outlook previously disclosed.
-- The average processed grade increased due to higher grade ore feed
from the Siou underground.
-- Recovery rates increased slightly due to the change in the ore
blend.
-- AISC decreased due to higher volumes of gold sold and lower unit
processing costs, partially offset by an increase in open pit mining unit
costs as a result of the ramp up of mining at the Maoula open pit.
FY-2022 Performance
-- FY-2022 production totalled 195koz, exceeding the guided 170-190koz range
due to better than expected ore tonnage mined from the Wona open pit
before it was depleted and greater volumes of ore sourced from the Siou
and Wona underground mines. FY-2022 AISC amounted to approximately
$994/oz, slightly below the guided $1,000-$1,100/oz range, largely due to
better than expected processed grades throughout the year.
-- FY-2022 production decreased from 205koz in FY-2021 to 195koz in FY-2022
largely due to lower grades milled as a result of processing more lower
grade stockpiles to supplement the mill feed as open pit mining at the
Wona open pit came to a close during the year. FY-2022 AISC decreased
from $1,026/oz in FY-2021 to approximately $994/oz in FY-2022 primarily
due to an increased proportion of underground mining, and the cessation
of open pit mining in the higher cost Wona open pit during the year.
2023 Outlook
-- Mana is expected to produce between 190-210koz in FY-2023 at an AISC of
$950-1,050/oz.
-- In FY-2023, ore will be primarily sourced from the Siou and Wona
underground where stope mining is expected to continue throughout the
year, supplemented by ore from the Maoula open pit. Processed grades are
expected to increase compared to the prior year as higher grade
underground ore is expected to represent a larger portion of the mill
feed. Production is expected to be weighted to H2-2023 as more stopes are
expected to be accessible at the Siou underground mine following the
development conducted in H1-2023. The underground development at the Wona
underground deposit is expected to continue throughout the year while
development of an additional portal is expected to commence in H1-2023.
-- Sustaining capital expenditure is expected to increase from $9.9 million
in FY-2022 to approximately $25.0 million in FY-2023, with expenditure
relating mainly to capitalised underground development and plant
maintenance.
-- Non-sustaining capital expenditure is expected to decrease from $61.4
million in FY-2022 to approximately $45.0 million in FY-2023, with
expenditure relating mainly to Wona underground development, and its
associated infrastructure, and the stage 5 lift of the TSF.
Sabodala-Massawa Mine, Senegal
Table 15: Sabodala-Massawa Performance Indicators(1)
For The Period Ended Q4-2022 Q3-2022 Q4-2021 FY-2022 FY-2021(2)
------- ------- ------- ------- ----------
Tonnes ore mined, kt 1,727 1,297 1,719 6,449 6,603
Total tonnes mined, kt 12,620 11,761 12,789 49,234 40,933
Strip ratio (incl. waste
cap) 6.31 8.07 6.44 6.63 5.20
Tonnes milled, kt 1,154 1,034 1,081 4,289 3,777
Grade, g/t 3.16 2.84 3.41 2.88 3.19
Recovery rate, % 88 88 90 89 90
PRODUCTION, KOZ 103 86 105 358 345
------- ------- ------- ------- ----------
Total cash cost/oz 559 665 458 577 507
AISC/OZ 661 779 591 691 645
------- ------- ------- ------- ----------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
(2) For the post acquisition period commencing 10 February 2021. .
Q4-2022 vs Q3-2022 Insights
-- Production increased due to an increase in processed grade and plant
throughput while plant recovery rates remained stable.
-- Total tonnes mined increased with a ramp up of mining activities
at the Bambaraya pit and increased ore mining at the Massawa North
Zone pits, in addition to the ongoing mining activity at the
Sabodala and Massawa Central Zone pits.
-- Tonnes milled increased as the feed blend contained a higher
proportion of softer oxide material from the Bambaraya pit while
the previous quarter was impacted by the rainy season and downtime
associated with scheduled plant maintenance.
-- Average processed grade significantly increased due to the
increased contribution of higher grade ore from the Massawa
Central Zone and Massawa North Zone pits.
-- AISC decreased largely due to higher production driven by the higher
grade ore from Massawa and lower processing unit costs driven by lower
maintenance costs, while mining unit rates remained consistent.
FY-2022 Performance
-- FY-2022 production totalled 358koz, achieving near the bottom end of the
guided 360-375koz range due to delays at the end of the year in accessing
high grade ore areas and greater volumes of waste extraction in the
Massawa North Zone pits than initially scheduled. FY-2022 AISC amounted
to approximately $691/oz, within the guided $675-$725/oz range.
-- FY-2022 consolidated production increased from 345koz in FY-2021 to
358koz in FY-2022 due to the full year of production following the
Teranga acquisition in Q1-2021. FY-2022 AISC increased from $645/oz to
approximately $691/oz due to the lower average grade processed and
increases in fuel and explosive costs, which were partially offset by
foreign exchange benefits and lower sustaining capital.
2023 Outlook
-- Sabodala-Massawa is expected to produce between 315-340koz in FY-2023 at
an AISC of $760-810/oz.
-- In FY-2023 ore will be primarily sourced from the Sabodala and Bambaraya
pits with additional higher grade non-refractory ore expected to be
sourced from the Massawa Central Zone and Massawa North Zone pits. Tonnes
milled and recoveries are expected to be consistent with FY-2022
performance, while grades are expected to be slightly lower as FY-2022
benefitted from higher grade ore from the Sofia Main pit.
-- Sustaining capital expenditure is expected to increase from approximately
$40.0 million in FY-2022 to $45.0 million in FY-2023, primarily related
to capitalised waste as well as fleet re-builds and additional mining
equipment purchases.
-- Non-sustaining capital expenditure is expected to decrease from
approximately $40.1 million in FY-2022 to $35.0 million in FY-2023 and is
primarily related to waste capital stripping, infrastructure related to
the Massawa mining areas and community resettlement.
-- Growth capital expenditure is expected to be $170 million, with further
detail on the growth capital spend for the project provided below.
Plant Expansion
-- Construction of the Sabodala-Massawa expansion project was launched in
April 2022 and remains on budget and on schedule for completion in
H1-2024.
-- Growth capital expenditure for the expansion project is approximately
$290 million, of which $68.1 million was incurred in FY-2022 and
approximately $170 million is expected to be incurred in FY-2023 mainly
related to process plant and power plant construction activities as well
as the TSF-1B construction. Approximately $155 million or 53% of the
total growth capital has now been committed, with pricing inline with
expectations, mainly related to detailed engineering and design,
earthworks, civil works, processing plant construction and long lead
items including the mills.
-- The construction progress regarding critical path items is detailed
below:
-- Bulk earthworks are largely complete with the primary crushing pad
and surrounding construction completed.
-- Civil works have continued to progress well with the concrete pour
complete for the BIOX reactors and the crusher and reclaim areas.
Civil works at the neutralisation area commenced in late November.
-- Processing plant construction is underway, with three BIOX
reactors currently being installed.
-- Procurement for the 18MW powerplant expansion is completed and
expansion work has commenced.
Wahgnion Mine, Burkina Faso
Table 16: Wahgnion Performance Indicators(1)
For The Period Ended Q4-2022 Q3-2022 Q4-2021 FY-2022 FY-2021(2)
------- ------- ------- ------- ----------
Tonnes ore mined, kt 1,051 841 1,054 3,797 3,807
Total tonnes mined, kt 9,360 8,249 8,965 37,219 27,185
Strip ratio (incl. waste
cap) 7.91 8.81 7.51 8.80 6.14
Tonnes milled, kt 921 939 959 3,831 3,322
Grade, g/t 1.32 1.13 1.64 1.08 1.43
Recovery rate, % 92 92 92 92 94
PRODUCTION, KOZ 36 32 47 124 147
------- ------- ------- ------- ----------
Total cash cost/oz 1,348 1,475 962 1,341 916
AISC/OZ 1,376 1,647 1,066 1,525 994
------- ------- ------- ------- ----------
(1) All Q4-2022 and FY-2022 numbers are preliminary and reflect Endeavour's expected results as at the date of this press release.
(2) For the post acquisition period commencing 10 February 2021.
Q4-2022 vs Q3-2022 Insights
-- Production increased due to higher processed grades which was partially
offset by slightly lower tonnes milled, while gold recovery rates
remained flat.
-- Total tonnes mined increased due to increased mining productivity
following the end of the wet season and the benefit of a full
quarter of mining at the Samavogo pit. In addition, mining
continued at the Nogbele North and South pits while mining at the
current stage of the Fourkoura pit ended during the quarter.
-- Tonnes milled decreased slightly due to higher processing plant
downtime, which was slightly offset by higher plant utilisation
rates.
-- The average processed grade increased due to the addition of
higher grade ore sourced from the Samavogo pit.
-- AISC decreased compared to the prior period due to increased gold ounces
produced and lower sustaining capital incurred associated with less waste
stripping during the quarter.
FY-2022 Performance
-- FY-2022 production totalled 124koz, which in accordance with the
previously disclosed outlook, stands below the guided 140-150koz range
mainly due to lower than expected grades from the Nogbele North and South
pits during the year. FY-2022 AISC amounted to approximately $1,525/oz,
which is above the guided $1,050-$1,150/oz range due to lower volumes of
gold sold and higher than expected mining costs driven by a combination
of increased unit costs due to the expected higher fuel pricing and
greater volumes being mined at a higher strip ratio.
-- FY-2022 production decreased from 147koz in FY-2021 to 124koz in FY-2022
due to lower processed grades associated with lower grade ore mined and
lower recovery rates, which was partially offset by higher tonnes milled.
FY-2022 AISC increased from $994/oz in FY-2021 to $1,525/oz in FY-2022
due to higher than expected mining costs and mining at a higher strip
ratio.
2023 Outlook
-- Wahgnion is expected to produce between 150-165koz in 2023 at an AISC of
$1,250-1,350/oz.
-- Ore is expected to be primarily sourced from the Nogbele North and
Samavogo pits, with mining at the Nogbele South pits scheduled to end in
H1-2023 and commencement of mining at the Stinger pits expected in
H2-2023. Production is expected to be weighted to the second half of the
year as greater volumes of ore are expected to be sourced from the
Samavogo pit in H2-2023, as the strip ratio reduces and increased volumes
of relatively higher grade ore become available. Mill throughput rates
are expected to be similar to FY-2022 while grades are expected to
increase with the full year benefit of higher grade deposits.
-- Sustaining capital expenditure is expected to increase slightly from
$23.2 million in FY-2022 to approximately $25.0 million in FY-2023, and
primarily relates to waste stripping at the Samavogo, Stinger and Nogbele
North pits.
-- Non-sustaining capital expenditure is expected to decrease from $31.6
million in FY-2022 to approximately $15.0 million in FY-2023, and
primarily relates to mining infrastructure at the Stinger pit including
haul road construction, a TSF raise and resettlement activities.
Lafigué Project Construction
-- Construction of the Lafigué project on the Fetekro property in
Côte d'Ivoire was launched in early Q4-2022, following the
completion of a DFS which confirmed Lafigué's potential to be a
cornerstone asset for Endeavour. The project will have a 4Mtpa capacity
CIL plant, with an annual average production of 203koz at a low AISC of
$871/oz over its initial 12.8 year mine life, with significant
exploration potential on the Fetekro property. First gold production is
scheduled for Q3-2024.
-- Growth capital expenditure for the project is approximately $448 million,
of which $47.5 million was incurred in FY-2022 and approximately $230
million is expected to be incurred in FY-2023 mainly related to further
earthworks and civil works as well as process plant and TSF construction
activities. Approximately $136 million or 30% of the total growth capital
has now been committed, with pricing inline with expectations, mainly
related to site roads, the construction camp and offices, airstrip
construction, perimeter fencing, process plant earthworks and the
detailed engineering.
-- The construction progress regarding critical path items is detailed
below:
-- Process plant earthworks and civil works are well underway with
key earthworks for the crushing area now completed and further
earthworks for supporting infrastructure underway. Foundations for
the CIL tank ring beams have been poured and mill foundations will
be poured in Q1-2023.
-- Long lead packages have now all been awarded including the ball
mill, HPGR, thickeners, apron feeders, jaw crushers and cone
crushers, with contracted dates in line with the construction
schedule.
-- Earthworks for the TSF are nearing completion.
-- Construction of the 225kv power line is ongoing with transmission
tower manufacturing expected to be completed in H1-2023.
CONFERENCE CALL AND LIVE WEBCAST
The full year 2022 preliminary financial results will be published on 9 March 2023. Management will host a conference call and webcast on Thursday 9 March, at 8:30 am EST / 1:30 pm GMT to discuss the Company's financial results.
The conference call and webcast are scheduled at:
5:30am in Vancouver
8:30am in Toronto and New York
1:30pm in London
9:30pm in Hong Kong and Perth
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QUALIFIED PERSONS
Mark Morcombe, COO of Endeavour Mining PLC., a Fellow of the Australasian Institute of Mining and Metallurgy, is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and approved the technical information in this news release.
CONTACT INFORMATION
For Investor Relations enquiries: For Media enquiries: Martino De Ciccio Brunswick Group LLP in London VP -- Strategy & Investor Relations Carole Cable, Partner +442030112706 +447974982458 investor@endeavourmining.com ccable@brunswickgroup.com
ABOUTEAVOUR MINING PLC
Endeavour Mining is one of the world's senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d'Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.
A member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is admitted to listing and to trading on the London Stock Exchange and the Toronto Stock Exchange, under the symbol EDV.
For more information, please visit www.endeavourmining.com.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact, are "forward-looking statements", including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, the success of exploration activities, the expectation that an exploration permit will be received, the anticipated timing for the payment of a shareholder dividend and statements with respect to future dividends payable to the Company's shareholders, the completion of studies, mine life and any potential extensions, the future price of gold and the share buyback programme. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates", believes", "plan", "target", "opportunities", "objective", "assume", "intention", "goal", "continue", "estimate", "potential", "strategy", "future", "aim", "may", "will", "can", "could", "would" and similar expressions .
Forward-looking statements, while based on management's reasonable estimates, projections and assumptions at the date the statements are made, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions or completion of divestitures; risks related to international operations; risks related to general economic conditions and the impact of credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; Endeavour's financial results, cash flows and future prospects being consistent with Endeavour expectations in amounts sufficient to permit sustained dividend payments; the completion of studies on the timelines currently expected, and the results of those studies being consistent with Endeavour's current expectations; actual results of current exploration activities; production and cost of sales forecasts for Endeavour meeting expectations; unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates; increases in market prices of mining consumables; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; extreme weather events, natural disasters, supply disruptions, power disruptions, accidents, pit wall slides, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities; changes in national and local government legislation, regulation of mining operations, tax rules and regulations and changes in the administration of laws, policies and practices in the jurisdictions in which Endeavour operates; disputes, litigation, regulatory proceedings and audits; adverse political and economic developments in countries in which Endeavour operates, including but not limited to acts of war, terrorism, sabotage, civil disturbances, non-renewal of key licenses by government authorities, or the expropriation or nationalisation of any of Endeavour's property; risks associated with illegal and artisanal mining; environmental hazards; and risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic.
Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour's most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.
The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board of Directors, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with the Company's constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board of Directors deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.
CAUTIONARY STATEMENTS REGARDING 2022 PRODUCTION AND AISC
Whether or not expressly stated, all figures contained in this press release including production and AISC levels are preliminary and reflect our expected 2022 results as of the date of this press release. Actual reported fourth quarter and 2022 results are subject to management's final review, as well as audit by the company's independent accounting firm, and may vary significantly from those expectations because of a number of factors, including, without limitation, additional or revised information, and changes in accounting standards or policies, or in how those standards are applied. The fourth quarter and 2022 AISC include expected amounts for year-end accrual and working capital adjustments. Endeavour will provide additional discussion and analysis and other important information about its 2022 production and AISC levels when it reports actual results.
NON-GAAP MEASURES
Some of the indicators used by Endeavour in this press release represent non-IFRS financial measures, including "all-in margin", "all-in sustaining cost", "net cash / net debt", "EBITDA", "adjusted EBITDA", "net cash / net debt to adjusted EBITDA ratio", "cash flow from continuing operations", "total cash cost per ounce", "sustaining and non-sustaining capital", "net earnings", "adjusted net earnings", "operating cash flow per share", and "return on capital employed". These measures are presented as they can provide useful information to assist investors with their evaluation of the pro forma performance. Since the non-IFRS performance measures listed herein do not have any standardised definition prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the non-GAAP measures section in this press release and in the Company's most recently filed Management Report for a reconciliation of the non-IFRS financial measures used in this press release.
Corporate Office: 5 Young St, Kensington, London W8 5EH, UK
APPENDIX 1: PRODUCTION AND AISC BY MINE
ON A QUARTERLY BASIS
ITY HOUNDÉ MANA BOUNGOU
(on a 100% basis) Q4-2022 Q3-2022 Q4-2021 Q4-2022 Q3-2022 Q4-2021 Q4-2022 Q3-2022 Q4-2021 Q4-2022 Q3-2022 Q4-2021
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Physicals
Total tonnes mined --
OP(1) 000t 6,043 4,925 6,624 12,901 9,178 12,297 1,057 76 2,695 3,497 3,559 4,294
Total ore tonnes -- OP 000t 1,662 1,180 2,234 1,912 1,174 777 338 76 529 256 210 301
OP strip ratio(1) W:t
(total) ore 2.64 3.17 1.97 5.75 6.82 14.83 2.13 -- 4.09 12.66 15.95 13.27
Total ore tonnes -- UG 000t -- -- -- -- -- -- 299 250 180 -- -- --
Total tonnes milled 000t 1,710 1,375 1,624 1,359 1,234 1,226 643 691 651 295 338 352
Average gold grade
milled g/t 1.73 2.04 1.50 1.55 1.83 2.05 2.33 1.90 2.75 2.85 2.84 3.36
Recovery rate % 87% 87% 77% 92% 92% 94% 93% 92% 93% 93% 94% 95%
Gold ounces produced oz 82,348 80,897 59,969 62,618 72,302 77,260 45,973 41,667 53,840 25,580 29,275 34,927
Gold sold oz 82,561 78,387 57,963 62,151 75,248 73,340 44,523 41,453 52,339 23,710 30,199 33,817
Cash Cost Details
Total cash cost $/oz 816 741 749 869 631 684 941 1,023 1,070 1,054 1,172 778
Mine-level AISC $/oz 847 773 854 970 716 874 999 1,098 1,116 1,118 1,219 825
Capital Cost Details
Sustaining Capital $000s 2,500 2,500 6,100 6,300 6,400 13,900 2,600 3,100 2,400 1,500 1,400 1,600
Non-sustaining capital $000s 22,900 15,400 10,900 13,600 18,400 6,800 16,700 19,200 6,900 6,000 4,000 9,000
----- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
SABODALA-MASSAWA WAHGNION
------------------
(on a 100% basis) Q4-2022 Q3-2022 Q4-2021 Q4-2022 Q3-2022 Q4-2021
------------------ ----- ------- ------- ------- ------- ------- -------
Physicals
Total tonnes mined
-- OP(1) 000t 12,620 11,761 12,789 9,360 8,249 8,965
Total ore tonnes
-- OP 000t 1,727 1,297 1,719 1,051 841 1,054
OP strip ratio(1) W:t
(total) ore 6.31 8.07 6.44 7.91 8.81 7.51
Total ore tonnes
-- UG 000t -- -- -- -- -- --
Total tonnes
milled 000t 1,154 1,034 1,081 921 939 959
Average gold grade
milled g/t 3.16 2.84 3.41 1.32 1.13 1.64
Recovery rate % 88% 88% 90% 92% 92% 92%
Gold ounces
produced oz 102,816 86,293 104,563 35,890 32,309 47,237
Gold sold oz 101,069 81,988 106,768 38,434 30,779 46,057
Cash Cost Details
Total cash cost $/oz 559 665 458 1,348 1,475 962
Mine-level AISC $/oz 661 779 591 1,376 1,647 1,066
Capital Cost
Details
Sustaining Capital $000s 10,300 9,400 14,200 1,100 5,300 4,800
Non-sustaining
capital $000s 6,900 12,100 14,100 10,300 9,900 7,200
------------------ ----- ------- ------- ------- ------- ------- -------
(1) Includes waste capitalized.
AISC and Total Cash Cost are non-GAAP measure. Refer to the non-GAAP measure section of the most recent Management Report.
All Q4-2022 and FY-2022 numbers are preliminary and reflect our expected results as of the date of this press release.
ON A FULL YEAR BASIS
ITY HOUNDÉ MANA BOUNGOU SABODALA-MASSAWA WAHGNION
(on a 100% basis) FY-2022 FY-2021 FY-2022 FY-2021 FY-2022 FY-2021 FY-2022 FY-2021 FY-2022 FY-2021 FY-2022 FY-2021
------- ------- ------- ------- ------- ------- ------- ------- -------- -------- ------- -------
Physicals
Total tonnes mined
-- OP(1) 000t 23,946 24,950 45,490 49,917 3,615 23,529 18,505 26,439 49,234 40,933 37,219 27,185
Total ore tonnes
-- OP 000t 7,044 7,906 5,754 4,397 1,260 2,025 990 1,437 6,449 6,603 3,797 3,807
Open pit strip ratio(1) W:t
(total) ore 2.40 2.16 6.91 10.35 1.87 10.62 17.69 17.40 6.63 5.20 8.80 6.14
Total ore tonnes
-- UG 000t -- -- -- -- 944 838 -- -- -- -- -- --
Total tonnes milled 000t 6,351 6,248 5,043 4,622 2,607 2,593 1,348 1,352 4,289 3,777 3,831 3,322
Average gold grade
milled g/t 1.80 1.67 1.92 2.13 2.49 2.65 2.80 4.07 2.88 3.19 1.08 1.43
Recovery rate % 85% 80% 93% 92% 92% 91% 94% 95% 89% 90% 92% 94%
Gold ounces produced oz 312,517 271,832 294,993 293,155 194,975 204,507 115,701 174,320 358,339 345,280 123,636 147,032
Gold sold oz 309,371 279,226 295,874 292,579 194,403 211,424 117,052 170,936 350,578 365,331 126,006 158,795
Cash Cost Details
Total cash cost $/oz 769 750 717 675 943 966 1,008 695 577 507 1,341 916
Mine-level AISC $/oz 812 836 809 843 994 1,026 1,064 801 691 645 1,525 994
Capital Cost Details
Sustaining Capital $000s 13,400 24,000 27,400 49,100 9,900 12,600 6,600 18,100 40,000 50,300 23,162 12,345
Non-sustaining capital $000s 49,000 35,300 39,200 17,100 61,400 63,300 27,500 22,900 40,149 34,000 31,622 27,539
----- ------- ------- ------- ------- ------- ------- ------- ------- -------- -------- ------- -------
(1) Includes waste capitalized.
AISC and Total Cash Cost are non-GAAP measure. Refer to the non-GAAP measure section of the most recent Management Report.
All Q4-2022 and FY-2022 numbers are preliminary and reflect our expected results as of the date of this press release.
Attachment
-- EDV Q4 and FY-2022 Preliminary Results and 2023 Guidance
https://ml-eu.globenewswire.com/Resource/Download/0462daea-ac54-4c4c-a9ee-c9f62df2e5cb
(END) Dow Jones Newswires
January 23, 2023 02:00 ET (07:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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