Endeavour Reports Record FY-2020 Results
Endeavour Mining (TSX:EDV, OTCQX:EDVMF) reported record financial results for FY-2020, highlighting a 148% increase in operating cash flow and a significant net debt reduction of $603 million, achieving a net cash position of $75 million. Q4-2020 saw record gold production of 344koz, a 41% increase over the previous quarter, while all-in sustaining costs (AISC) decreased by 11% to $803/oz. Adjusted net earnings surged 368% to $345 million for the full year. The company plans a buyback program and aims for a premium listing on the London Stock Exchange.
- Operating cash flow increased by 148% to $749 million in FY-2020.
- Record gold production of 908koz in FY-2020, up 40% from FY-2019.
- Net debt reduced by $603 million, reaching a net cash position of $75 million.
- Adjusted net earnings surged 368% to $345 million for FY-2020.
- Plans to initiate a share buyback program.
- AISC increased by 7% year-over-year, reaching $873/oz.
- Net earnings attributable to shareholders showed a loss of $141 million in FY-2019, though improved in FY-2020.
ENDEAVOUR REPORTS RECORD FY-2020 RESULTS
Operating Cash Flow up
Q4 & FY-2020 HIGHLIGHTS
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George Town, March 18, 2021 – Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce its financial and operating results for the fourth quarter and full year 2020, with highlights provided in the table below.
Table 1: Consolidated Highlights
| In US$ million unless otherwise specified, inclusive of Agbaou which was sold on March 1, 2021. | THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | Δ FY-2020 vs. FY-2019 | ||
| PRODUCTION AND AISC HIGHLIGHTS | |||||||
| Gold Production1, koz | 344 | 244 | 178 | 908 | 651 | + | |
| All-in Sustaining Cost1, $/oz | 803 | 906 | 819 | 873 | 818 | + | |
| CASH FLOW HIGHLIGHTS | |||||||
| Operating Cash Flow Before Non-Cash Working Capital | 311 | 223 | 70 | 705 | 287 | + | |
| Operating Cash Flow Before Non-Cash Working Capital1, $/share | 1.91 | 1.37 | 0.64 | 5.14 | 2.62 | + | |
| Operating Cash Flow | 364 | 202 | 120 | 749 | 302 | + | |
| Operating Cash Flow1, $/share | 2.23 | 1.24 | 1.10 | 5.46 | 2.75 | + | |
| PROFITABILITY HIGHLIGHTS | |||||||
| Net earnings/(loss) Attr. to Shareholders1 | 30 | 59 | (113) | 112 | (141) | n.a. | |
| Net Earnings per Share1, $/share | 0.19 | 0.36 | (0.69) | 0.82 | (1.29) | n.a. | |
| Adjusted Net Earnings Attr. to Shareholders1 | 166 | 76 | 37 | 345 | 74 | + | |
| Adjusted Net Earnings per Share1, $/share | 1.02 | 0.47 | 0.34 | 2.51 | 0.67 | + | |
| FINANCIAL POSITION HIGHLIGHT1 | |||||||
| Net Cash (Net Debt)1 | 75 | (175) | (528) | 75 | (528) | n.a. | |
1This is a non-GAAP measure. Refer to the non-GAAP measure section of the MD&A.
Sebastien de Montessus, President and CEO, commented: “2020 was a transformational year for Endeavour as we consolidated our strategic position in West Africa, creating a resilient business capable of rewarding our shareholders through the cycle. Our business is underpinned by long-life and low-cost cash-generative mines, robust organic growth opportunities and a strong focus on contributing to socio-economic development wherever we operate.
In the fourth quarter of 2020, we delivered record results as we realized the full benefits from the integration of the SEMAFO assets and the ramp-up of the high grade Kari Pump deposit at Houndé. For the eighth consecutive year, we met or exceeded our annual production and AISC guidance, and notably achieved record production in 2020 as both our internally developed and acquired operations delivered strong performances.
Looking ahead to 2021, we are focused on progressing our organic growth opportunities through mine life extensions, asset optimization, and green and brownfield exploration. The most promising of these is the Phase 1 and 2 expansions at Sabodala-Massawa which will help transform the mine into a tier-one asset.
We are also excited to continue working towards a premium listing on the London Stock Exchange as we seek to broaden our appeal to a wider group of potential investors. We believe that our robust business, upcoming catalysts, and our attractive shareholder return program, which offers an attractive dividend that will be supplemented with the introduction of a share buyback program, offers a compelling value proposition for both existing and new shareholders.”
Management will host a conference call and webcast on Thursday March 18, at 8:30am Toronto time (ET) to discuss the Company's Q4 and FY-2020 financial and operating results. For instructions on how to participate please refer to page 30.
UPCOMING CATALYSTS
The key upcoming expected catalysts are summarized in the table below.
Table 2: Key Upcoming Catalysts
| TIMING | CATALYST | |
| Q2-2021 | Afema | Initial resource estimate |
| Q2-2021 | Corporate | Capital Markets Day |
| Q2-2021 | Corporate | Premium LSE Listing |
| Q4-2021 |
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FAQ
What were Endeavour Mining's Q4-2020 production results for EDVMF?
Endeavour Mining reported record Q4-2020 gold production of 344koz, a 41% increase over Q3-2020.
How much did Endeavour Mining reduce its net debt in FY-2020?
Endeavour Mining reduced its net debt by $603 million, achieving a net cash position of $75 million by year-end.
What was the adjusted net earnings for Endeavour Mining in FY-2020?
Adjusted net earnings for FY-2020 reached $345 million, representing a 368% increase over FY-2019.
What is Endeavour Mining's AISC for FY-2020?
Endeavour Mining reported an all-in sustaining cost (AISC) of $873/oz for FY-2020, a 7% increase from FY-2019.
What are Endeavour Mining's future plans following FY-2020 results?
Endeavour Mining plans to initiate a share buyback program and aims for a premium listing on the London Stock Exchange.
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