Proactive Investors - Endeavour Mining PLC (LON:EDV)'s operational and financial results for the second quarter of 2023 showed continuing operations that performed according to expectations, according to analysts at the investment bank Stifel.
The West Africa-focused group produced 268,000 ounces (koz) of gold at all-in-sustaining costs (AISC) of $1,000 per ounce. These numbers were in line with Stifel's forecasts and slightly ahead of the consensus average.
Financial outlook
Barclays (LON:BARC) Capital described Endeavour's Q2 earnings before interest, taxes, depreciation, and amortization (EBITDA) as "a touch light," down 10% compared to their estimates and 9% versus the consensus, due to the higher AISC.
The all-in sustaining cost was up 5% compared to the previous quarter, and revenue was only a 1% beat versus Barclays' estimate, offset by pricing and higher costs.
Dividends and shareholder returns
Endeavour declared a first-half 2023 dividend of $100 million or approximately $0.40 per share, according to Stifel. This annualized dividend is $25 million higher than the previously-stated minimum dividend commitment for 2023. Additionally, shareholder returns were supplemented with share buybacks, with 0.4 million shares repurchased for $9.2 million in the second quarter, analysts pointed out.
Growth projects
Stifel also highlighted Endeavour's organic growth projects, including the construction of the Lafigué project in Côte d'Ivoire, and the Sabodala-Massawa expansion project in Senegal. Both projects are on schedule and within budget. Barclays noted a big acceleration in drilling on the Tanda Iguela project, aiming for a resource update in the fourth quarter of 2023.
And finally...
The second quarter for Endeavour presented a mixed picture. Growth and stability were counterbalanced by some higher costs and adjustments. But there was consensus over the investment fundamentals. Stifel's evaluation offers optimism for the company's strategic advancements, reiterating its 'buy' rating and maintaining a target price of 2,750p. Barclays remains 'overweight' on the stock with a 2,600p price target. The stock is currently changing hands for 1,759p.