Industria
Endeavour Reports Q2-2024 Results
ENDEAVOUR REPORTS Q2-2024 RESULTS
Adjusted EBITDA of $249m • $435m minimum dividend for 2024 & 2025 • $120m shareholder returns for H1
London, 31 July 2024 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) announces its operating and financial results for Q2-2024 and H1-2024, with highlights provided in Table 1 below.
Table 1: Q2-2024 and H1-2024 Highlights from continuing operations
Continuing Operations excludes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023. This is a non-GAAP measure, refer to the non-GAAP Measures section for further details. Excludes costs and ounces sold related to pre-commercial production at the Groups growth projects. Realised gold prices are inclusive of the Sabodala-Massawa stream and the realised gains/losses from the Group's revenue protection programme . Last Twelve Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by discontinued operations.
Management will host a conference call and webcast today, 31 July 2024, at 8:30 am EDT / 1:30 pm BST. For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release. A copy of the Management Report and Financial Statements have been submitted to the National Storage Mechanism and will be filed on SEDAR+. The documents will shortly be available for inspection on the Company's website and at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Ian Cockerill, Chief Executive Officer, commented: “During the first half of 2024 we continued to make progress against our strategic objectives. We are delighted to have achieved first gold at both of our growth projects, which will improve the geographic diversification and quality of our portfolio, while underpinning a stronger H2 performance.
On the operational side, production remains on track to achieve guidance for the twelfth consecutive year with performance strongly weighted towards the second half of the year due to stronger performances expected at Houndé, Lafigué and the Sabodala-Massawa BIOX® Expansion. Our all-in sustaining cost is expected to be near the top end of the guidance range, compounded by the lower grid power availability in Côte d'Ivoire and Burkina Faso during H1, higher royalty rates due to the higher gold prices and lower performance at Sabodala-Massawa. We have already seen significant improvements in power availability in Q3 that will support an improved H2 performance.
The successful gold pours at our two growth projects during the quarter, both on budget, on schedule and in under two years, extends our track record of delivery, having now built five large capital projects in West Africa in the last ten years. We are now focussed on advancing the Assafou project on the Tanda-Iguela property, with a preliminary feasibility study expected by year-end. At the same time we continue to explore the Assafou deposit and the targets surrounding it, where we have identified additional shallow mineralisation in close proximity to Assafou, reinforcing the project's potential to become a cornerstone complex for Endeavour.
As we approach the completion of our current phase of growth, we are pleased to announce a new shareholder returns programme, that will be comprised of $435 million of minimum dividends over the next two years, which we expect to supplement with additional dividends and share buybacks. For H1-2024 we have declared a $100 million dividend, which we have supplemented with an additional $20 million of share buybacks. Upon payment of our H1-2024 dividend, we will have returned more than $1.0 billion to shareholders since our first dividend payment in Q1-2021, equivalent to $223 for every ounce produced over the same period.
Finally, to the changes we announced today to our executive management team. Mark Morcombe, EVP and COO, and Jono Lawrence, EVP Exploration, are leaving to pursue other opportunities and I would like to thank them for their years of dedicated service and significant contributions. We have reorganised the leadership to strengthen the operational and technical management within the team and I welcome Djaria Traore as EVP Operations and ESG and Martin White as EVP and Chief Technical Officer to their new roles. Collectively, we look forward to continuing to deliver on our strategy with a restructured management team, to further strengthen our business and benefit all our stakeholders.”
MANAGEMENT CHANGES
As the Company transitions into a new phase focussed on maximising the performance of its existing operations to support its ambitious capital allocation priorities, the executive leadership team will be restructured, effective 1 September 2024, to ensure that the Company continues to deliver against its strategic objectives.
Djaria Traoré, formerly Executive VP Supply Chain and ESG has been appointed Executive VP Operations and ESG. In her new role, Djaria will continue to lead the ESG strategy and, additionally, will take executive responsibility for operations.
Martin White, formerly Executive VP Projects has been appointed Executive VP and Chief Technical Officer. In this role, Martin will continue to oversee project development and bring his extensive experience to further strengthen our technical services capabilities.
Djaria and Martin will assume the operational responsibilities of Mark Morcombe, Executive VP and COO who is leaving the company. The Board and his colleagues thank him for five years of dedicated service and, in particular, his role in improved operational processes and reinforcing our safety culture.
Jono Lawrence, Executive VP Exploration is also leaving the company and will be replaced by a new Executive VP Exploration & Geology to be announced shortly. Jono has played a pivotal role in leading our successful exploration campaign and we thank him for his significant contribution during his eight years of dedicated service.
Morgan Carroll, currently Executive VP Corporate Finance and General Counsel has been appointed Executive VP and Chief Commercial Officer and will be responsible for Supply Chain. Morgan's former responsibilities for Corporate Finance will be transitioning, over a period of time, to Guenole Pichevin, Executive VP Strategy and Business Development, while Samantha Campbell currently Deputy General Counsel, will assume the role of Executive VP and Group General Counsel.
Following these changes, the Executive Committee will be composed of nine members with a balanced mix of gender, experience, technical skills and operational expertise, to lead us into this new phase with increased confidence.
SHAREHOLDER RETURNS PROGRAMME
Table 2: Cumulative Shareholder Returns
OPERATING SUMMARY
Table 3: Group Production
Includes pre-commercial ounces that are not included in the calculation of All-In Sustaining Costs.
The Boungou and Wahgnion mines were divested on 30 June 2023.
Table 4: Group All-In Sustaining Costs
Excludes pre-commercial costs associated with ounces from the BIOX® expansion project The Boungou and Wahgnion mines were divested on 30 June 2023. This is a non-GAAP measure, refer to the non-GAAP Measures section for further details.
FY-2024 OUTLOOK
Table 5: FY-2024 Production Outlook
Table 6: FY-2024 All-In Sustaining Cost Outlook
CASH FLOW SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three month period ended 30 June 2024, 31 March 2024, and 30 June 2023, and the six month periods ended 30 June 2024 and 30 June 2023 with accompanying explanations below.
Table 7: Cash Flow and Net Debt
Continuing operations excludes the
Boungou and Wahgnion mines which were divested on 30 June 2023.
Net debt, Adjusted EBITDA, and cash flow per share are
Non-GAAP measures. Refer to the non-GAAP measure section in this press release and in the Management Report.
Last Twelve Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by discontinued operations.
Cash and cash equivalents are net of bank overdrafts ($21.1 million
at 30 June 2024. Nil at 31 March 2024 and 30 June 2023)
NOTES:
1) Operating cash flows increased by $196.9 million from $55.1 million (or $0.22 per share) in Q1-2024 to $252.0 million (or $1.03 per share) in Q2-2024 due largely to the previously announced $150.0 million gold prepayment, as detailed below. A working capital inflow was driven largely by an increase in payables and increased revenue due to higher gold sales at a higher realised gold price, partially offset by higher taxes paid, higher operating expenses and higher royalties.
Operating cash flows decreased by $57.8 million from $364.9 million (or $1.48 per share) in H1-2023 to $307.1 million (or $1.25 per share) in H1-2024 due to lower production, increased operating costs, higher tax payments and increased royalties, which were partially offset by the previously announced $150.0 million gold prepayment and a higher realised gold price.
Notable variances are summarised below:
Table 8: Tax Payments from continuing operations
Included in the “Other” category is income and withholding taxes paid by Corporate and Exploration entities.
As previously disclosed, on 26 April 2024 the Company entered into two separate gold prepayment agreements for a total consideration of $150.0 million in exchange for the delivery of approximately 76koz in Q4-2024. The gold prepayments secure $150.0 million of financing for a low cost of capital of approximately 5.3%, and support the Company's offshore cash position during its investment and de-levering phase. The prepayments are structured as follows:
2) Cashflows used in investing activities decreased by $16.1 million from $187.5 million in Q1-2024 to $171.4 million in Q2-2024 due to a decrease in growth capital spend as growth projects neared completion, an inflow of $5.2 million related to the sale of Allied Gold shares and a decrease in sustaining capital due to reduced stripping activity, partially offset by an increase in non-sustaining capital related to ongoing initiatives across the Group as detailed below and a $2.7 million strategic investment into Koulou Gold Corporation.
Cashflows used in investing activities decreased by $55.8 million from $414.7 million in H1-2023 to $358.9 million in H1-2024 largely due to a decrease in non-sustaining capital spend across the group related to reduced pre-stripping activities, reduced underground development at Mana, reduced spending on optimisation initiatives and a decrease in sustaining and non-sustaining capital associated with discontinued operations that were divested in the prior period, partially offset by an increase in growth capital spending at the Group's two organic growth projects.
3) Cash flows used in financing activities increased by $237.5 million from an inflow of $87.7 million in Q1-2024 to an outflow of $149.8 million in Q2-2024 largely due to the repayment on the Company's Revolving Credit Facility (“RCF”) compared to a drawdown in the prior quarter. Financing cash outflows in Q2-2024 included $70.0 million in repayments of long-term debt related to repayment of the Company's RCF ($575.0 million drawn as at Q2-2024), payment of dividends to minorities of $36.8 million, payments of financing and other fees of $29.8 million, acquisition of the Company's own shares through its share buyback programme of $7.6 million, payment of finance and lease obligations of $5.5 million and payments for the settlement of tracker shares of $0.9 million. Outflows were partially offset by a $0.8 million inflow related to a drawdown on the Lafigué Term loan (total amount of $147.3 million drawn as at Q2-2024).
Cash flows used in financing activities decreased by $10.9 million from an outflow of $73.0 million in H1-2023 to an inflow of $62.1 million in H1-2024 largely due to offsetting differences in the repayment and drawdown of debt instruments.
4) At quarter end, Endeavour's cash and cash equivalents, net of $21.1 million in drawn cash on bank overdraft facilities, stood at $386.9 million.
5) Endeavour's net debt position slightly increased by $4.9 million, from $830.5 million at the end of Q1-2024 to $835.4 million at the end of Q2-2024, while the Company's net debt / Adjusted EBITDA (LTM) leverage ratio remains healthy at 0.81x at the end of Q2-2024.
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three month periods ended 30 June 2024, 31 March 2024, and 30 June 2023, and the six month periods ended 30 June 2024 and 30 June 2023 with accompanying explanations below.
Table 9: Earnings from Continuing Operations
NOTES:
6) Revenue increased by $84.1 million from $472.7 million in Q1-2024 to $556.8 million in Q2-2024 due to higher volumes of gold sales and a $231 per ounce increase in the realised gold price from $2,091 per ounce in Q1-2024 to $2,322 per ounce in Q2-2024, exclusive of the Company's Revenue Protection Programme.
Revenue increased by $24.2 million from $1,005.3 million in H1-2023 to $1,029.5 million in H1-2024 due to a higher realised gold price for H1-2024 of $2,210 per ounce compared to $1,923 per ounce for H1-2023, exclusive of the Company's Revenue Protection Programme, partially offset by lower volumes of gold sold.
7) Operating expenses increased by $41.3 million from $199.9 million in Q1-2024 to $241.2 million in Q2-2024 largely due to increased mining costs at Houndé as a greater proportion of waste stripping was expensed, higher processing costs across the Group due to increased reliance on self-generated power at Houndé, Mana and Ity, and at Sabodala-Massawa driven by the BIOX® Expansion ramp-up activities, in addition to additional costs associated with the processing of stockpiles across Ity, Mana and Sabodala-Massawa. Depreciation and depletion increased by $19.1 million from $108.7 million in Q1-2024 to $127.8 million in Q2-2024 due to increased depreciation at Sabodala-Massawa due to increased production and higher depreciation rates associated with the Sabodala pit and at Houndé due to increased production, which was partially offset by decreased depreciation at Mana due to lower quarterly production.
Operating expenses increased by $67.9 million from $373.2 million in H1-2023 to $441.1 million in H1-2024 largely due to increased processing costs across the Group, increased underground mining costs at Mana driven by higher volumes and increased mining costs at Ity, Houndé and Sabodala-Massawa, largely reflecting increased diesel consumption and increased drill and blast activities. Depreciation and depletion increased by $35.1 million from $201.4 million in H1-2023 to $236.5 million in H1-2024 due to the lower reserves base of Ity and Sabodala-Massawa following the December 2023 Reserves and Resource update, higher Ity production and additional Sabodala-Massawa depreciation incurred.
8) Royalties increased by $6.3 million from $33.9 million in Q1-2024 to $40.2 million in Q2-2024 due to a higher realised gold price and higher gold production.
Royalties increased by $12.6 million from $61.5 million in H1-2023 to $74.1 million in H1-2024 due to a higher realised gold price and the increase to the sliding scale royalty rate structure in Burkina Faso effective from November 2023, partially offset by decreased gold production.
9) Corporate costs of $10.9 million in Q2-2024 were largely consistent with the prior quarter.
Corporate costs decreased from $27.5 million in H1-2023 to $21.4 million in H1-2024 due to decreased corporate employee compensation and professional service costs.
10) Other expenses increased by $13.9 million from $16.6 million in Q1-2024 to $30.5 million in Q2-2024. For Q2-2024, other expenses included $12.4 million in expected credit loss provisions related to outstanding receivables from the divestment of the Group's 90% interest in the Boungou and Wahgnion mines, $8.9 million in legal and other costs primarily related to the ongoing arbitration process around the non-core asset disposals, $4.0 million in restructuring costs and costs associated with the demobilisation from the Maoula open pit and $0.3 million in disturbance costs, partially offset by a $2.6 million credit in tax claims related to a temporary contribution of 2% of profits before tax and interest from the Houndé and Mana mines that became effective in December 2023 in Burkina Faso which were reclassified to tax expense.
11) Exploration costs of $4.3 million in Q2-2024 were largely consistent with the prior quarter.
Exploration costs decreased from $27.0 million in H1-2023 to $9.7 million in H1-2024 largely due to a decrease in exploration expense at the Assafou project on the Tanda-Iguela property, as increasingly, exploration activities are being capitalised at Assafou following the commencement of the pre-feasibility study which is expected to be published in Q4-2024.
12) The loss on financial instruments decreased from a loss of $46.2 million in Q1-2024 to a loss of $31.8 million in Q2-2024 largely due to a decrease in unrealised losses on gold collars and forwards. The loss on financial instruments during the quarter included an unrealised loss on Net Smelter Royalties (“NSRs”) and deferred compensation related to asset sales of $12.3 million, net realised losses on gold collars and forward contracts of $8.4 million (including $9.0 million related to the Group's Revenue Protection Programme partially offset by a gain of $0.6 million related to the Group's London Bullion Market Association (“LBMA”) gold price averaging strategy), unrealised foreign exchange losses of $8.2 million, an unrealised loss on marketable securities of $4.0 million, an unrealised loss on the early redemption feature of senior notes of $0.7 million and a realised loss on foreign currency contracts of $0.1 million, partially offset by a $1.5 million unrealised gain on other financial instruments, unrealised gains on gold collars and forward sales of $0.3 million and unrealised gains on foreign currency contracts of $0.1 million.
The loss on financial instruments increased from a loss of $40.9 million in H1-2023 to a loss of $78.0 million in H1-2024, due largely to unrealised losses in relation to gold hedges, realised losses on gold hedges and exchange rate movements between the Euro and the US dollar.
As previously disclosed, in order to increase cash flow visibility during its construction and de-leveraging phases, Endeavour entered into a Revenue Protection Programme, using a combination of zero premium gold collars and forward sales contracts, to cover a portion of its 2023, 2024 and 2025 production.
As previously disclosed, Endeavour entered into a Growth Capital Protection Programme designed to enhance cost certainty for a portion of its growth capital expenditure at the BIOX® Expansion and Lafigué growth projects. The Group had entered into various foreign exchange forward contracts across both the Euro and the Australian Dollar over 2023 and 2024.
13) Current income tax expense increased by $94.5 million from $40.5 million in Q1-2024 to $135.0 million in Q2-2024 largely due to an increase in recognised withholding tax expenses, which increased by $69.1 million from $4.5 million in Q1-2024 to $73.6 million in Q2-2024 due to the timing of local board approvals for cash upstreaming, an increase in taxes due to higher earnings from Ity and a temporary contribution of 2% of profits before tax and interest from the Houndé and Mana mines that became effective in December 2023 in Burkina Faso.
Current income tax expense increased by $35.9 million from $139.6 million in H1-2023 to $175.5 million in H1-2024 due to an increase in withholding taxes on dividends paid by operating subsidiaries, an increase in current income taxes at Houndé and Ity, and adjustments in respect of the prior year income tax mainly in relation to the temporary contribution of 2% of net profit after tax of operating mines in Burkina Faso.
14) Net comprehensive losses from continuing operations increased by $35.5 million from a net comprehensive loss of $9.3 million in Q1-2024 to a net comprehensive loss of $44.8 million in Q2-2024. The increase in losses is largely driven by a higher tax expense, lower operating margins, higher royalties and higher depreciation partially offset by decreased losses on financial instruments.
Net comprehensive earnings from continuing operations decreased by $170.7 million from net comprehensive earnings of $116.6 million in H1-2023 to a net comprehensive loss of $54.1 million in H1-2024. The decrease in earnings was largely driven by lower earnings from mine operations due to higher tax expense, lower production, higher operating expenses, higher depreciation and higher royalties in addition to higher finance costs due to increased interest expenses reflecting higher borrowings.
15) For Q2-2024, adjustments included other expenses of $30.5 million largely related to legal and other costs for the ongoing arbitration process, an unrealised loss on financial instruments of $23.4 million largely related to the unrealised loss on forward sales and collars, a net loss from discontinued operations of $6.3 million related to the settlement of historic liabilities under the sale agreement of the Boungou mine and a loss on non-cash, tax and other adjustments of $11.2 million that mainly relate to the impact of foreign exchange remeasurements of deferred tax balances.
16) Adjusted net earnings attributable to shareholders for continuing operations decreased by $37.7 million from earnings of $40.7 million (or $0.17 per share) in Q1-2024 to adjusted net earnings of $3.1 million (or $0.01 per share) in Q2-2024, due to lower operating margins, higher depreciation, higher royalties and higher tax expenses.
Adjusted net earnings attributable to shareholders for continuing operations decreased by $73.8 million from $118.7 million (or $0.48 per share) in H1-2023 to $44.9 million (or $0.18 per share) in H1-2024 due to lower operating margins, higher tax expenses, higher interest expenses, higher realised losses on gold forward sales and higher royalties.
SUMMARISED STATEMENT OF FINANCIAL POSITION
The following tables present the summarised statement of financial position and liquidity for Endeavour, with accompanying explanations below.
Table 10: Summarised Statement of Financial Position
NOTES:
17) Other current assets at the end of Q2-2024 consisted of $280.5 million of current inventories, $246.3 million of trade and other receivables, $54.3 million of prepaid expenses and other and $46.4 million of other financial assets.
18) Mining interests increased by $54.6 million from $4,236.0 million at the end of Q1-2024 to $4,290.6 million at the end of Q2-2024 due to increased capitalised costs incurred during the quarter as detailed in the above section, partly offset by increased depreciation and depletion.
19) Other current liabilities increased by $283.0 million from $411.5 million at the end of Q1-2024 to $694.5 million at the end of Q2-2024, largely due to the addition of the $150.0 million gold pre-payment into deferred revenue (details included in the above section). Other current liabilities consist of $497.6 million in trade and other payables, $150.0 million in deferred revenue related to the gold pre-payment, $29.6 million related to the current portion of financial derivatives and $17.3 million related to the current portion of equipment financing obligations.
20) Income taxes payable decreased by $28.4 million from $151.3 million at the end of Q1-2024 to $122.9 million at the end of Q2-2024, largely due to the increased taxes paid during the quarter.
21) Long-term debt decreased by $87.8 million from $1,281.3 million at the end of Q1-2024 to $1,193.5 million at the end of Q2-2024 due to the repayment on the Company's RCF during the quarter. Total debt at the end of Q2-2024 consisted of $575.0 million drawn on the RCF, $498.9 million in senior notes, $147.3 million in term loan financing and $9.8 million in interest accruals partially offset by $5.2 million in deferred financing costs, of which $33.6 million was deemed to be the current portion of debt.
Table 11: Summarised Statement of Financial Position
Net debt, Adjusted EBITDA, and cash flow per share are Non-GAAP measures. Refer to the non-GAAP measure section in this press release and in the Management Report. Last Twelve Months (“LTM”) Trailing EBITDA adj. includes EBITDA generated by discontinued operations
22) At quarter end, Endeavour's liquidity remained strong at $476.6 million, consisting of $386.9 million of cash and cash equivalents, $70.0 million available through the Company's RCF and $19.7 million available through the Lafigué Term Loan.
23) Endeavour's net debt position slightly increased by $4.9 million, from $830.5 million at the end of Q1-2024 to $835.4 million at the end of Q2-2024, while the Company's net debt / Adjusted EBITDA (LTM) leverage ratio remains healthy, albeit above its long-term target of 0.50x, at 0.81x at the end of Q2-2024. As the Company's growth projects ramp up, leverage is expected to quickly return to levels below the long-term target.
OPERATING ACTIVITIES BY MINE
Houndé Gold Mine, Burkina Faso
Table 12: Houndé Performance Indicators
Q2-2024 vs Q1-2024 Insights
H1-2024 vs H1-2023 Insights
FY-2024 Outlook
Ity Gold Mine, Côte d'Ivoire
Table 13: Ity Performance Indicators
Q2-2024 vs Q1-2024 Insights
H1-2024 vs H1-2023 Insights
FY-2024 Outlook
Mana Gold Mine, Burkina Faso
Table 14: Mana Performance Indicators
Q2-2024 vs Q1-2024 Insights
H1-2024 vs H1-2023 Insights
FY-2024 Outlook
Sabodala-Massawa Gold Mine, Senegal
Table 15: Sabodala-Massawa Performance Indicators
All-in Sustaining Cost excludes costs and ounces sold related to pre-commercial production at the Sabodala-Massawa BIOX® Expansion.
Q2-2024 vs Q1-2024 Insights
H1-2024 vs H1-2023 Insights
FY-2024 Outlook
Solar Power Plant
Lafigué Mine, Côte d'Ivoire
Table 16: Lafigué Performance Indicators
Q2-2024 vs Q1-2024 Insights
FY-2024 Outlook
EXPLORATION ACTIVITIES
Table 17: Q2-2024 and H1-2024 Exploration Expenditure and 2024 Guidance
Exploration expenditures include expensed, sustaining and non-sustaining exploration expenditures.
Houndé mine
Ity mine
Mana mine
Sabodala-Massawa mine
Lafigué mine
Tanda-Iguela
CONFERENCE CALL AND LIVE WEBCAST
Management will host a conference call and webcast on Wednesday 31 July, at 8:30 am EDT / 1:30 pm BST 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
8:30pm in Hong Kong and Perth
The video webcast can be accessed through the following link:
https://edge.media-server.com/mmc/p/eybcokij
Click here to add a Webcast reminder to your Outlook Calendar.
Analysts and investors are also invited to participate and ask questions by registering for the conference call dial-in via the following link:
https://register.vevent.com/register/BIf3889e9ffe4447c8b58b16b90a25128e
The conference call and webcast will be available for playback on Endeavour's website .
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
ABOUT ENDEAVOUR MINING PLC
Endeavour Mining is one of the world's senior gold producers and the largest in West Africa, with operating assets across Senegal, Côte 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 ability of the Group to achieve its production guidance, AISC guidance, Group non-sustaining capital expenditure outlook, and growth capital expenditure outlook for FY-2024, the estimated exploration expenditures for FY-2024, the ability of Endeavour to meet its 5-year exploration target, the availability of additional dividends and share buybacks, the success of exploration activities, estimated costs incurred in connection with the construction of the Solar Power Plant and the timing for an updated resource for the Vindaloo Deeps deposit and Tanda-Iguela. 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.
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.
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.
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