Endeavour Mining reports strong 2024 as it continues share buybacks

(Sharecast News) - Endeavour Mining reported a strong 2024 on Thursday, delivering record free cash flow and increasing reserves while improving its leverage ratio. The FTSE 100 company said it produced 1.1 million ounces of gold at an all-in sustaining cost (AISC) of $1,218 per ounce.

In the fourth quarter, production reached 363,000 ounces at an AISC of $1,141 per ounce, driving a record $268m in free cash flow, or $418m before a one-off prepayment settlement.

Adjusted EBITDA for the quarter rose 72% from the previous quarter to $546m, bringing full-year adjusted EBITDA to $1.33bn, rising from $1.05bn a year earlier.

The firm said its adjusted net earnings for the year reached $227m, with fourth-quarter earnings of $110m - a 49% increase from the third quarter.

Endeavour ended 2024 with net debt of $732m and a leverage ratio of 0.55x net debt to adjusted EBITDA, placing it on track to achieve its near-term target of 0.5x.

The company distributed a record $240m in dividends for the year, supplemented by $37m in share buybacks, bringing total shareholder returns to $277m, a 32% increase above its minimum commitment.

Share buybacks had continued into 2025, with $22m completed year-to-date - 69% higher than the prior year - bringing total shareholder returns since 2021 to $1.2 billion.

The firm also advanced its organic growth pipeline, with the pre-feasibility study for the Assafou project completed in December, confirming its potential as a tier-one asset.

Endeavour said it was aiming to complete a definitive feasibility study between late 2025 and early 2026.

Group reserves increased 32% to 18.4 million ounces, net of depletion, driven by additions at Assafou and Ity.

Since 2021, the company said it had discovered 12.2 million ounces of measured and indicated resources at a cost of less than $25 per ounce.

"2024 was another year of robust operational performance," said chief executive officer Ian Cockerill.

"We further strengthened our portfolio, adding two high-margin growth projects in Senegal and Côte d'Ivoire, both of which were delivered on budget and on time.

"These will help to grow our production profile, improve costs and extend mine-life visibility, increasing both the quality and diversification of our portfolio."

Cockerill said that, following the successes at Lafigué and Assafou, exploration was continuing to generate "significant" value.

"During 2024, we successfully increased group reserves by 32% or 4.5 million ounces, net of depletion, equivalent to more than three times annual production depletion, underlining our ability to not only maintain production visibility, but to extend mine lives as well.

"Our commitment to ESG disclosure continues to earn external recognition.

"We have maintained top-tier Sustainalytics and MSCI ratings, placing us among the leading companies not only in our sector, but across industries."

Looking ahead, Endeavour said it expected to maintain its focus on operational efficiency, cash flow generation, and shareholder returns while advancing exploration and development initiatives to support long-term production growth.

Reporting by Josh White for Sharecast.com.