(Alliance News) - Endeavour Mining PLC on Monday said 2024 promises to deliver growth and shareholder returns, thanks to progress at its west African projects.
The gold miner has operations in the Ivory Coast, Senegal and Burkina Faso. It estimates production totalled 1.1 million ounces of gold in 2023, down 8% from 2022. With all-in sustaining costs of around USD964 per ounce, Endeavour said this will create shareholder returns of USD266 million and amount to growth investment of USD542 million.
The spot gold price was quoted at USD2,020 an ounce early Monday in London.
Fourth-quarter output was at 280,000 ounces, flat from the third quarter but down 2.9% from 294,000 ounces the same time last year.
Endeavour expects production to increase by as much as 18% in 2024, thanks to several project start-ups due to commence in the second quarter. All-in sustaining costs are expected to remain low at between USD955 and USD1,035 per ounce.
Endeavour's Sabodala-Massawa mine in eastern Senegal is scheduled for start-up in the second quarter of 2024, and the company said that its production will be up to 400,000 ounces for the full year at an all-in sustaining cost of less than USD850 per ounce.
At the Lafigue mine in the Ivory Coast, Endeavour said it is "on budget and ahead of schedule", pushing its expected start-up ahead to the second quarter from its previous third quarter target.
The company also claimed that "significant exploration success" was achieved at its Tanda-Iguela Ivory Coast discovery in 2023, with indicated resources increasing to 4.5 million ounces. Endeavour said that it will continue to focus on exploration throughout 2024 and that the budget for the project stands at USD65 million.
According to Endeavour, the continued progress at these prospects will lead to "significant growth" for the company over the coming year.
As of the end of 2023, Endeavour had what it called a strong financial position with USD757 million of available liquidity, which included USD517 million in cash and USD240 million in undrawn credit facilities, alongside healthy net debt of USD555 million.
The company declared a interim dividend of USD100 million in both halves, with the total USD200 million payout 14% above its minimum committed dividend and bringing total shareholder returns since 2021 to USD900 million.
Back on January 4, Endeavour announced the termination of the employment of Sebastien de Montessus as chief executive officer, following investigation into an "irregular payment" instruction issued by him in relation to an asset disposal. Ian Cockerill replaced Montessus immediately following his dismissal.
The ousted CEO will forfeit USD29.1 million in remuneration, comprising cancelled share awards, bonuses, and a 2021 USD10 million award, which the company said it will "claw back" from Montessus.
"The investigation is ongoing and will be progressed as quickly as possible, with further updates to be provided as appropriate," Endeavour said on Monday.
Shares in Endeavour were down 1.2% at 1,367.00 pence each in London on Monday morning. The stock is down 29% over the past year.
By Hugh Cameron, Alliance News reporter
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Endeavour Mining (EDV)