Highlights

  • Endeavour Mining's free cash flow rose 20% YoY to USD 97 million in Q3FY24
  • The Assafou project’s PFS shows 28% IRR and USD 1.5 billion NPV
  • The company has forecasted growth capital expenditure for FY24 at USD 245.0 million

Endeavour Mining PLC (LSE:EDV), a leading FTSE 100 company, ranks among West Africa's largest gold producers. It boasts a portfolio of advanced development projects and valuable exploration assets.

Endeavour Mining's free cash flow reached USD 97 million in the third quarter of financial year 2024 (Q3FY24), reflecting a 20% increase compared to Q2FY24. This growth highlights the company’s successful shift towards a cash flow generation phase following its growth investments. Additionally, the company’s net debt decreased slightly to USD 834 million, with a reduced leverage ratio of 0.77x in the quarter, moving closer to the target of 0.5x.

Recent Business Update

The Pre-Feasibility Study (PFS) results for the company’s Assafou project in Côte d’Ivoire confirms Assafou as a potential Tier 1 asset.  An annual production of 329koz at an AISC of USD 892/oz is expected over the first 10 years of its 15-year mine life. The project shows good economics, with an after-tax NPV (5%) of USD 1,526 million and an IRR of 28% at a gold price of USD 2,000/oz. Its design includes a 5Mtpa capacity plant, similar to the Lafigué mine, requiring an initial capital investment of USD 734 million.

Company Outlook

For FY24, the group’s sustaining capital expenditure is projected at USD 125.0 million, with USD 51.3 million already spent in the first half on ongoing projects.

The growth capital expenditure for FY24 is forecasted at USD 245.0 million, with USD 192.1 million allocated mainly for the BIOX® expansion in Senegal and the Lafigué mine development in Côte d'Ivoire. Despite lower yields at Sabodala-Massawa, the group expects to meet its production guidance of 1,130 – 1,270 koz, driven by increased output at Ity.

Top 10 Shareholders

The top 10 shareholders of Endeavour Mining collectively hold approximately 52.26% of the company's total shares. La Mancha Investments S.à r.l. is the largest shareholder, with around 17.81% of stake, followed by BlackRock Investment Management (UK) Ltd., holding approximately 12.93%.

Stock Information

The stock has experienced a decline of approximately 20.14% over the past three months and a 12.94% drop over the last six months. Its 52-week low and high are GBX 1,231.00 and GBX 1,944.00, respectively, and it is currently trading below the average of its 52-week high-low range. As of 18 December 2024, the stock closed at GBX 1439.00.

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 18 December 2024. The reference data in this report has been partly sourced from EODHD/Others.