Endeavour Mining reports record cash flow supported by high gold prices

Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) generated record first-half free cash flow of US$761 million as surging gold prices outweighed lower production and sharply higher costs. Adjusted EBITDA rose 38% year on year to US$1.61 billion, while adjusted net earnings increased 69% to US$672 million. The realised gold price averaged US$4,579 an ounce, up 55%. Production declined 13% to 564,000 ounces, and all-in sustaining costs increased 46% to US$1,871 an ounce. Endeavour said US$184 an ounce of the cost figure reflected higher gold-linked royalties; excluding that impact, AISC was US$1,687 an ounce. The West Africa-focused miner maintained full-year guidance of 1.09 million to 1.265 million ounces, with operating performance weighted towards the fourth quarter. Mana is expected to fall below its production range and exceed cost guidance, while Lafigué is forecast to deliver output in the upper half of its range. Endeavour returned a record US$301.5 million to shareholders through a US$230 million dividend and US$71.5 million of buybacks. It expects to make a final investment decision on the Assafou project by year-end and launch the Sabodala-Massawa underground expansion during the second half.