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 $55 million. The additional cash will help to ensure the resilience of our balance sheet as we respond to the current operating environment and will provide us with capital allocation flexibility going forward as we place an increased focus on return on capital employed.
Exploration remains a core strategic pillar and during the quarter we invested nearly 40% of our annual budget across the portfolio. Over the coming months, we expect to see the fruits of this activity as we announce resource increases for the Kari area at Houndé, the Le Plaque area at Ity, and at Fetekro. In addition, we aim to demonstrate the value created by publishing increased reserves and updated mine plans at both Houndé and Ity along with a PEA for Fetekro.
George Town, May 13, 2020 – Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce its financial and operating results for the first quarter of 2020, with highlights provided in the table below.
Table 1: Key Operational and Financial Highlights
(in US$ 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%) |
