Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) said it is well positioned to hit the top end of full-year targets for production, with costs being kept under control.
The West Africa-focused gold miner reported production of 343k oz of gold at an all-in-sustaining cost of US$960 per oz, stable compared to the preceding quarter despite the impact of the wet season.
This took production so far this year of 1,045koz at an AISC of $920/oz.
The full-year production guidance is 1,315-1,400koz at an AISC range of $880-930/oz.
Operating cash flow of US$195mln was generated before changes in working capital, or US$0.79 per share in the quarter, compared to US$3.34 per share for the year-to-date.
There was US$833mln of cash in the bank at the end of September, some of which will be used to reimburse a US$330mln convertible bond due in February.
Endeavour paid US$100mln of dividends in the third quarter, taking its total paid for the year to US$170mln after the minimum dividend commitment was increased by US$50mln to US$200mln, while the share buyback continued with US$37mln worth of shares repurchased the quarter and US$75mln in the year to date.
Sebastien de Montessus, president and chief executive, said it would be the 10th consecutive year of achieving or exceeding guidance, just as the group enters its next growth phase.
“Our growth projects are progressing well with the expansion of our flagship Sabodala-Massawa mine on schedule and on budget as work starts to ramp up,” he said.
Construction was recently started of the next ‘cornerstone’ asset, the Lafigué project on the Fetekro property, where early works are “gathering pace”.
Growth projects are projected to increase gold production by roughly 30% from 2024 and further enhance geographic diversification.
De Montessus also flagged that a maiden resource will soon be published for the Tanda-Iguela property in Côte d’Ivoire, while “significant near mine exploration success” has been seen at several other key assets, with resource additions expected by year-end.
“As such, we are pleased to be on track to achieve our previously disclosed target of discovering 15-20mln ounces of Indicated resources over the 2021 to 2025 timeframe.”