13th Nov 2025 10:18
(Alliance News) - Endeavour Mining PLC on Thursday reported improved earnings and plans to increase shareholder returns alongside a new joint venture in Kazakhstan.
In response shares in the London-based gold producer in West Africa jumped 10% to 3,534.00 pence each in London on Thursday morning. It was the best performing stock in the FTSE 100 index, which itself was down 0.3%.
Endeavour said it expects in early 2026 to announce a new shareholder returns programme for 2026 to 2028, which will outline a "significant increase" in minimum shareholder dividend commitments.
The company noted that total shareholder returns for 2025 of USD232.8 million have already exceeded the USD225.0 million target minimum for the year and are expected to "significantly" increase, with the second half dividend and further share buybacks.
Net earnings totalled USD167 million in the third quarter compared to a net loss of USD95 million a year prior.
Earnings before interest, tax, depreciation and amortisation ballooned to USD472 million from USD128 million, and increased 47% to USD466 million from USD317 million on an adjusted basis.
Free cash flow improved to USD166 million from USD97 million, while net debt was nearly halved to USD453 million from USD834 million.
Gold production edged down to 264,000 ounces from 270,000 ounces a year ago, but at a significantly higher realised gold price of USD3,247 per ounce, up 39% when compared to USD2,342 a year ago.
This outstripped the rise in the all-in sustaining cost of 22% to USD1,569 per ounce from USD1,287 per ounce.
Chief Executive Officer Ian Cockerill said the third quarter marked another "solid" operational quarter "placing us firmly on track" to achieve full-year guidance.
"Strong year-to-date production has positioned us to achieve the top half of our production guidance with AISC within the guidance range, when adjusted for the impact of higher gold prices on royalty costs," he added.
For 2025, Endeavour said it remains on track to achieve the top half of its production guidance of 1.1 million to 1.3 million ounces driven by strong year-to-date production at Hounde and Sabodala-Massawa.
Fourth quarter production is expected to increase over the third quarter due to mining and processing of higher grades at Lafigue, Mana and Sabodala-Massawa CIL.
The group remains on track to achieve its AISC guidance of USD1,150 to USD1,350 per ounce, when adjusted for the impact of higher gold prices on royalty costs.
Fourth quarter AISC is expected to improve over the third quarter due to higher grades, higher gold production and sales.
Group capital expenditure outlook for 2025 remains unchanged at USD30.0 million, of which USD22.8 million has been incurred year-to-date.
In addition, Endeavour on Thursday announced a joint venture agreement with Kazakhstan-focused copper and gold explorer East Star Resources PLC.
Endeavour will invest USD25 million in the venture for the exploration and development of gold projects in Kazakhstan.
The investment gives Endeavour the right to earn up to an 80% interest in a newly incorporated company, with East Star retaining a 20% interest upon full earn-in by Endeavour.
Endeavour will make milestone payments to East Star during the earn-in period, based on pre-agreed amounts per ounce for any maiden resource and any maiden pre-feasibility study.
Alex Walker, chief executive of East Star Resources, said: "We are delighted to sign this agreement with Endeavour, which is a transformational milestone for East Star that validates the quality of our exploration programme and provides a clear pathway to unlock the full potential of our gold exploration strategy."
Shares in East Star soared 25% to 2.50 pence each in London on Thursday morning, giving it a GBP11.1 million market capitalisation.
By Jeremy Cutler, Alliance News reporter
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