Endeavour Mining Cash Flow Soars on High Gold Prices

Endeavour Mining reported record-breaking cash flow for its first half of the year, driven by high gold prices. The company generated US$761 million in free cash flow, a significant increase from previous years. Despite lower production and higher costs, Endeavour's Adjusted EBITDA rose 38% 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%, which helped offset the decline in production and cost increases. Endeavour's all-in sustaining costs (AISC) rose 46% to US$1,871 per ounce, but excluding gold-linked royalties, AISC was US$1,687 per ounce.

The company maintained its full-year guidance of 1.09 million to 1.265 million ounces and expects operating performance to be 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. The company also plans to make a final investment decision on the Assafou project by year-end and launch the Sabodala-Massawa underground expansion during the second half.