@EndeavourMining $EDV Reports Record Q1-2020: +42% #Gold Production, 5X Operating Cash Flow YOY

     

ENDEAVOUR REPORTS RECORD 
OPERATING CASH FLOW IN Q1-2020 
Net Debt down $55m in Q1-2020 · Well positioned to meet FY-2020 production and AISC guidance  

Highlights

• Strong Q1-2020 performance with production of 172koz at an AISC of $899/oz; well positioned to meet 
  FY- 2020 guidance 
• Q1-2020 production increased by 42% over Q1-2019, driven by the start-up of the Ity CIL operation, while AISC increased by 3% to $899/oz
• Record Operating Cash Flow of $126m in Q1-2020, a fivefold increase over Q1-2019 
• Net debt was reduced by $55m in Q1-2020 to $473m, marking a reduction of $187m over the past three quarters, following nearly four years of intensive growth-capital investment
• Healthy Net Debt / Adjusted EBITDA (LTM) of 1.06x at quarter-end, a reduction of 64% from 2.96x at the end of Q1-2019
• Cash reserves of $357m at quarter-end, providing significant headroom to operate within the COVID-19 environment 
• Adjusted Net Earnings of $34m or $0.30/share in Q1-2020, a $39m increase compared to Q1-2019
• Continued exploration focus with $17m spent in Q1-2020, representing nearly 40% of the full-year budget
• SEMAFO transaction Extraordinary General Shareholder Meeting on May 28 and AGM now scheduled for the first half of Q3-2020

Sébastien de Montessus, President & CEO, commented: "We have started 2020 well with continued momentum across the business, as production and costs from all our mines track in line with our full-year guidance. 

To date, our operations have not been significantly impacted by COVID-19. We have implemented a business continuity plan and are working very closely with host governments to support a coordinated response in the communities where we operate. In the few instances where we had positive cases, those individuals are fully recovered and have returned to work.

This quarter we are particularly pleased to have achieved a record in operating cash flow, which has enabled us to further reduce our net debt by $55 million. The additional cash will help to ensure the resilience of our balance sheet as we respond to the current operating environment and will provide us with capital allocation flexibility going forward as we place an increased focus on return on capital employed.

Exploration remains a core strategic pillar and during the quarter we invested nearly 40% of our annual budget across the portfolio. Over the coming months, we expect to see the fruits of this activity as we announce resource increases for the Kari area at Houndé, the Le Plaque area at Ity, and at Fetekro. In addition, we aim to demonstrate the value created by publishing increased reserves and updated mine plans at both Houndé and Ity along with a PEA for Fetekro. 

As we look ahead, we are well advanced in our planning to integrate our operations with SEMAFO. We remain excited about this combination and the value that it will create for all our stakeholders."

 

George Town, May 13, 2020 – Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce its financial and operating results for the first quarter of 2020, with highlights provided in the table below.

 

Table 1: Key Operational and Financial Highlights

(in US$ million)	QUARTER ENDED
	Mar. 31,	Dec. 31,	Mar. 31,	Q1-2020 vs.
	2020	2019	2019	Q1-2019
PRODUCTION AND AISC HIGHLIGHTS
Gold Production, koz	172	178	121	+42%
Gold Sold, koz	175	172	121	+44%
Realized Gold Price2, $/oz	1,546	1,445	1,252	+24%
All-in Sustaining Cost1, $/oz	899	819	877	+3%
All-in Sustaining Margin1,3, $/oz	647	627	375	+73%
CASH FLOW HIGHLIGHTS 1
All-in Sustaining Margin4, $m	113	108	45	+149%
All-in Margin5, $m	80	85	22	+258%
Operating Cash Flow Before Non-Cash Working Capital, $m	119	73	48	+149%
Operating Cash Flow Before Non-Cash Working Capital, $/share	1.08	0.67	0.44	+146%
Operating Cash Flow, $m	126	120	23	+450%
Operating Cash Flow, $/share	1.14	1.10	0.21	+444%
PROFITABILITY HIGHLIGHTS
Revenues, $m	270	248	151	+78%
Adjusted EBITDA1, $m	130	98	41	+217%
Net Earnings Attr. to Shareholders, $m	26	(113)	(15)	n.a.
Net Earnings, $/share	0.24	(1.03)	(0.13)	n.a.
Adjusted Net Earnings Attr. to Shareholders1, $m	34	37	(5)	n.a.
Adjusted Net Earnings per Share1, $/share	0.30	0.34	(0.04)	n.a.
BALANCE SHEET HIGHLIGHTS1
Net Debt, $m	473	528	635	(26%)
Net Debt / Adjusted EBITDA (LTM) ratio	1.06	1.48	2.96	(64%)

¹This is a non-GAAP measure. Refer to the non-GAAP measure section of the MD&A. ²Realized Gold Price inclusive of Karma stream; ³Realized Gold Price less AISC per ounce; ⁴Net revenue less All-in Sustaining Costs; ⁵Net revenue less All-in Sustaining Costs and Non-Sustaining capital.  

See the whole release here:https://www.endeavourmining.com/news-releases/press-release-details/2020/Endeavour-Reports-Record-Operating-Cash-Flow-in-Q1-2020/default.aspx  

______________________________

MasterMetals

@MasterMetals