Soaring gold prices boost earnings at Endeavour Mining

(Sharecast News) - Endeavour Mining posted a surge in annual earnings on Thursday, as bumper gold prices helped offset higher costs.

The Africa-focused gold miner saw production rise 10% in the year to December end to 1.2m ounces, while solid gold rose 11% at 1.2m ounces.

Costs jumped 18% to $1,433 per ounce. But a 38% spike in averaged realised prices helped offset that, with adjusted earnings before interest, tax, depreciation and amortisation surging 75% to $2.3bn.

Prices of gold, a traditional safe haven asset, soared throughout 2025, fuelled Donald Trump's swingeing tariff regime, mounting geopolitical tensions and economic uncertainty.

Ian Cockerill, chief executive, said: "2025 was a strong year of operational performance and a record year of financial performance, as we safely achieved our strategic objectives.

"Importantly, higher gold prices combined with our strong operational performance are directly translating into increased margins and increased cash flows."

Shareholder returns during the year came in at a recored $435m, Endeavour said, including dividends of $1.45 per share and share buybacks of $85m.

Looking to the current year, and Endeavour reiterated annual production guidance for between 1.1m and 1.3m ounces. Costs were forecast to rise to between $1,600 and $1,800 an ounce, based on an assumed average gold price of $3,000 per ounce, due in part to increase phased stripping activity, stockpile drawn down and lower average grades processed at its Hounde and Lafigue mines.

That weighed on the shares, which had eased 1% at 4,776p by 0930 GMT.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "With production in 2026 expected to remain broadly stable and unit costs still heading up, shareholders will need pricing to stay strong to generate further earnings growth.

"But in times of feast, management is showing a balanced approach to capital allocation. Net debt is now di minimis, and Endeavour has upped its promises on shareholder payouts based on the prevailing gold price.

"There's also an ambitious exploration target in place, of 12 to 15m ounces of discoveries by the end of the decade."