Endeavour Mining expects to repay convertible loan from $833m cash pile

ENDEAVOUR Mining expected to repay a $330m convertible loan, due in the first quarter of next year, from its $833m cash pile accumulated as of end-September.

Commenting in the firm’s third quarter production results, CEO Sébastien de Montessus added that in addition to lifting the group’s dividend $50m to $200m, the company had also repurchased $75m of its shares in the quarter.

“As we enter our next growth phase, our high-margin production, sustained free cash flow generation and strong financial position leave us well placed to continue to deliver strong shareholder returns,” he said.

Endeavour produced 343,000 ounces of gold in the quarter taking its year-to-date output to 1.05 million oz, produced at an all-in sustaining cost (AISC) of $920 per oz. This puts the company on target to meet guidance of 1.32 to 1,5 million oz in gold at an AISC of between $880 to $930/oz.

Third quarter net earnings came in at $58m, or some 50.23 cents per share and $190m or 77 cents/share for the nine month period.

In October, Endeavour said it had started construction of its $448m Lafigué gold project with first production of a proposed 203,000 ounces a year forecast in two years.

De Montessus said Endeavour was “ideally positioned” to build Lafigué as it was net cash and had derisked its last major project, the expansion of Sabadola Massawa in Senegal. He also said inflationary pressures were beginning to ease.