Endeavour Reports Strong Q1-2021 Results
Endeavour Mining reported robust Q1-2021 results with a 102% increase in gold production to 347koz and a 3% decrease in All-in Sustaining Costs (AISC) to $868/oz. Adjusted net earnings rose by 111%, reaching $105m or $0.50/share. Operating cash flow before working capital surged 47% to $265m. The company maintains a healthy balance sheet with a 0.16x net debt to adjusted EBITDA ratio. A $60m dividend was paid and share buybacks initiated post-quarter-end. Anticipation builds for a premium listing on the London Stock Exchange in June.
- Gold production increased by 102% to 347koz.
- Adjusted net earnings rose by 111% to $105m ($0.50/share).
- Operating cash flow before working capital increased by 178% to $265m.
- AISC decreased by 3% to $868/oz.
- Healthy balance sheet with a net debt to adjusted EBITDA ratio of 0.16x.
- First dividend of $60m paid, with share buybacks initiated.
- Adjusted net earnings down 36% from $164m in Q4-2020.
- Operating cash flow decreased by 46% from $384m in Q4-2020.
ENDEAVOUR REPORTS STRONG Q1-2021 RESULTS
Production up
Q1-2021 HIGHLIGHTS
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George Town, May 13, 2021 – Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) ('Endeavour' or the 'Group' or the 'Company') is pleased to announce its financial and operating results for the first quarter of 2021, with highlights provided in Table 1 below.
Management will host a conference call and webcast on Thursday May 13, at 8:30am Toronto time (ET) to discuss the Company's Q1-2021 financial and operating results. For instructions on how to participate please refer to page 17.
Table 1: Consolidated Highlights1
| In US$ million unless otherwise specified. | THREE MONTHS ENDED | ||||
| March 31, 2021 | December 31, 2020 | March 31, 2020 | Δ Q1-2021 vs. Q1-2020 | ||
| PRODUCTION AND AISC | |||||
| Gold Production, koz | 347 | 344 | 172 | + | |
| All-in Sustaining Cost2, $/oz | 868 | 803 | 899 | (3)% | |
| CASH FLOW FROM CONTINUING OPERATIONS3 | |||||
| Operating Cash Flow Before Non-Cash Working Capital | 265 | 297 | 95 | + | |
| Operating Cash Flow Before Non-Cash Working Capital2, $/share | 1.28 | 1.82 | 0.86 | + | |
| Operating Cash Flow | 207 | 384 | 100 | + | |
| Operating Cash Flow2, $/share | 0.99 | 2.36 | 0.90 | + | |
| PROFITABILITY FROM CONTINUING OPERATIONS3 | |||||
| EBITDA2 | 335 | 227 | 102 | + | |
| Adjusted EBITDA2 | 311 | 297 | 107 | + | |
| Net Earnings/(loss) Attributable to Shareholders2 | 95 | 66 | 19 | + | |
| Net Earnings per Share2, $/share | 0.46 | 0.40 | 0.18 | + | |
| Adjusted Net Earnings Attributable to Shareholders2 | 105 | 164 | 26 | + | |
| Adjusted Net Earnings per Share2, $/share | 0.50 | 1.00 | 0.24 | + | |
| SHAREHOLDER RETURNS | |||||
| Dividends paid | 60 | — | — | n.a. | |
| Share buyback (commenced in Q2-2021) | — | — | — | n.a. | |
| FINANCIAL POSITION HIGHLIGHT | |||||
| Net Debt/(Net Cash)2 | 162 | (75) | 473 | (66)% | |
| Net (Cash)/Debt / Adjusted EBITDA (LTM) ratio2 | 0.16 | (0.09) | 1.06 | (85)% | |
1All amounts include Teranga assets from February 10, 2021 2This is a non-GAAP measure. Refer to the non-GAAP measure section of the MD&A. 3From Continuing Operations excludes the Agbaou mine which was divested on March 1, 2021.
Sebastien de Montessus, President and CEO, commented: “Over the past twelve months we have significantly transformed our company into a resilient business capable of rewarding our shareholders through the cycle. This quarter's strong performance demonstrates the quality of our enhanced portfolio of operating mines, following the successful integration of the Teranga assets within our business. Moreover, we are pleased to report significant increases in our per share metrics.
The combined portfolio is on track to meet its FY-2021 guidance and deliver strong cash flows, bolstering our balance sheet and providing the flexibility to advance our exciting organic growth opportunities while continuing to reward shareholders through our dividend and share buyback programs.
From a capital markets perspective, we remain on track to obtain our premium listing on the London Stock Exchange in June, which we expect to broaden our appeal to a wider pool of investor capital, whilst benefiting from the projected increase in indexation demand.
We look forward to continuing to build on the progress we have made throughout the remainder of this year.”
UPCOMING CATALYSTS
The key upcoming expected catalysts are summarized in the table below.
Table 2: Key Upcoming Catalysts
| TIMING | CATALYST | |
| Q2-2021 | Corporate | Capital markets virtual teach-in event ahead of UK lisiting |
| Q2-2021 | Corporate | Premium LSE Listing |
| Q3-2021 | Afema | Initial resource estimate |
| Q3-2021 | Sabodala-Massawa | Exploration update |
| Q3-2021 | Exploration | 5-year exploration strategy |
| Q4-2021 | Sabodala-Massawa | Completion of Phase 1 plant upgrades |
| Q4-2021 | Sabodala-Massawa | Completion of Definitive Feasibility Study for Phase 2 |
| Q4-2021 |
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FAQ
What are Endeavour Mining's Q1-2021 production results for EDVMF?
Endeavour Mining achieved a production increase of 102%, totaling 347koz during Q1-2021.
What was the All-in Sustaining Cost (AISC) for Endeavour Mining in Q1-2021?
The AISC for Endeavour Mining in Q1-2021 was $868/oz, a 3% decrease compared to Q1-2020.
How much did Endeavour Mining's adjusted net earnings increase in Q1-2021?
Adjusted net earnings increased by 111%, reaching $105 million or $0.50 per share in Q1-2021.
What were the cash flow results for Endeavour Mining in Q1-2021?
Endeavour Mining reported operating cash flow before working capital of $265 million, a rise of 178% compared to Q1-2020.
When is Endeavour Mining's premium listing on the London Stock Exchange?
Endeavour Mining plans to secure its premium listing on the London Stock Exchange in June 2021.
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