Endeavour Mining hits full-year guidance, generates record free cash flow

(Sharecast News) - Endeavour Mining said on Thursday that it met full-year guidance in 2025, generated record free cash flow and cut net debt sharply, as higher realised gold prices underpinned earnings and supported a step-up in shareholder returns, including a record second-half dividend. The FTSE 100 miner produced 1.209 million ounces of gold in 2025, up 10% on 2024, placing output in the top half of its 1.11 million to 1.26 million ounce guidance range.

All-in sustaining costs were about $1,435 per ounce, up from $1,218 per ounce a year earlier, which Endeavour said was within guidance when adjusted for $128 per ounce of higher royalty costs linked to higher gold prices.

The company reported a realised gold price of $3,244 per ounce for the year, up 38%, while total cash costs rose about 15% to roughly $1,215 per ounce.

Chief executive Ian Cockerill said the group "safely achieved our guidance for the twelfth time in thirteen years, generated record free cash flow, fully de-leveraged our balance sheet and paid record shareholder returns."

He said free cash flow exceeded $1bn in 2025, enabling Endeavour to reduce net debt by $574.2m to $157.4m by year-end and exit the year with "near zero leverage".

Endeavour declared a record second half dividend of $200m, or about 83 cents per share, taking the full-year dividend to $350m, or about $1.45 per share, including $125m of supplemental dividends above its $225m minimum commitment.

The company also repurchased $85.3m of shares during 2025, bringing total shareholder returns for the year to $435.3m, which Endeavour said was 93% above the minimum commitment and equivalent to $360 per ounce produced.

It said the second half dividend would be paid on 14 April to shareholders of record on 13 March, with currency elections and dividend reinvestment plan elections due by 1700 GMT on 20 March.

For 2026, Endeavour guided gold production of 1.09 million to 1.265 million ounces and all-in sustaining costs of $1,600 to $1,800 per ounce, citing the impact of higher gold prices on royalties, increased stripping and sustaining capital at Houndé and Lafigué, and higher royalty rates in Côte d'Ivoire.

The group said performance was expected to be weighted to the second half of 2026, with higher grades at Houndé after waste stripping in the first half and higher throughput at Ity and Mana following planned maintenance and development.

Cockerill said Endeavour expected to "significantly increase minimum shareholder returns over the 2026 to 2028 period" while advancing the Assafou project, committing to return at least $1bn subject to a minimum realised gold price of $3,000 per ounce and leverage staying below its 0.50x net debt-to-adjusted EBITDA target.

He said the Assafou project's environmental permit had been approved, with final exploitation permit approval expected in the first quarter alongside completion of the definitive feasibility study, and first production on track for the second half of 2028.

The company also reiterated a new exploration strategy targeting discovery of 12 million to 15 million ounces of measured, indicated and inferred resources over 2026 to 2030 for a discovery cost of less than $40 per ounce, supported by an expected $100m exploration budget in 2026.

Endeavour said it ended 2025 with about $1.153bn of available liquidity, including $453.3m of cash and $700m of undrawn revolving credit facility capacity, and noted that after completing its revenue protection programme in the fourth quarter its gold sales were now fully unhedged.

At 0932 GMT, shares in Endeavour Mining were up 4.91% at 4,766p.

Reporting by Josh White for Sharecast.com.