Endeavour Mining Shares Fell 1.7% on 2023 Results, 2024 Outlook

The Endeavour Mining PLC (LON: EDV) share price fell 1.74% after releasing a trading update for the 2023 fiscal year and its outlook for 2024. The company is poised for a significant upturn in 2024, with two major projects scheduled for commencement in the second quarter.

The company's FY-2023 output reached 1.1 million ounces, with a commendable All-in Sustaining Cost (AISC) of approximately $964 per ounce. Furthermore, shareholder returns for the same period were substantial, totalling $266 million, alongside a robust growth investment of $542 million.

Regarding operational and financial highlights for the continuing operations, Q4-2023 saw a stable production of 280 thousand ounces, consistent with the previous quarter. However, there was a notable decrease in AISC by $31 per ounce to around $936 per ounce. This decrease occurred despite a $24 per ounce increase in royalty costs.

The year 2023 marked the 11th consecutive year Endeavour met or exceeded its production guidance, totalling 1,072 thousand ounces. Looking ahead to FY-2024, production is expected to surge by up to 18% to between 1,130 and 1,270 thousand ounces, thanks to the initiation of new projects in Q2-2024.

The company's AISC for FY-2023 was remarkably low at about $964 per ounce, slightly above expectations due to increased royalty costs. For FY-2024, the AISC is projected to remain competitive, ranging between $955 and $1,035 per ounce.

Endeavour's financial position remains strong, with $757 million in available liquidity, comprising $517 million in cash and $240 million in undrawn credit facilities. The company's net debt was a healthy $555 million at year-end as it nears the completion of two key growth projects.

Ian Cockerill, CEO of Endeavour, commented: “I am honoured to assume the CEO role at a pivotal time for Endeavour as strong foundations are in place to unlock significant value as we deliver on our organic growth pipeline. I look forward to continuing to implement the strategy approved by the Board and lead the Company forward for the benefit of all our stakeholders. 2023 was another successful year for Endeavour, during which we continued to focus on improving the quality of our portfolio through asset optimisation initiatives, the divestment of non-core Boungou and Wahgnion mines, construction of our two high-margin, long-life growth projects, and continued to deliver significant exploration success.”

Endeavour Mining (EDV) share price. 

The Endeavour Mining share price fell 1.71% to trade at 1359.3p from Friday’s closing price of 1383.0p.