London-listed Endeavour Mining recorded a strong second quarter, capping an “excellent” first half of the year with 647 000 oz of gold produced at an all-in sustaining cost (AISC) of $1 281/oz, ensuring it is firmly on track to achieve full-year guidance, CEO Ian Cockerill says.

Production guidance for the full-year is 1.1-million ounces to 1.26-million ounces, and AISC guidance $1 150/oz to $1 350/oz.

“As a result of our larger portfolio, following the completion of our growth phase 12 months ago, production [for the first half of this year] was 38% higher than the same period last year, with our all-in sustaining margin 80% higher, ensuring that we realised the full benefit of the strong gold price environment,” he highlights.

Earnings before interest, taxes, depreciation and amortisation of $1.14-billion for the first half was an increase of 226% over the prior comparable period’s $596-million.

Over the past 12 months, Endeavour has generated $879-million of free cash flow, equivalent to over $687 for every ounce of gold it produced, or a yield of more than 17% from the start of the period, Cockerill explains.

“During half one, despite paying approximately 70% of our full-year’s taxes, we still generated record free cash flow of $514-million, equivalent to $794 for every ounce of gold we produced, and we are well positioned to continue delivering strong free cash flow in the second half of the year,” he acclaims.

Underpinned by this strong free cash flow, the company maintained leverage well below its target and declared another record dividend of $150-million in the period, which it further supplemented with $69-million of share buybacks, equivalent to returns of $338 for every ounce of gold produced for the period, Cockerill indicates.

“Since our first payments in 2021, we have returned $1.4-billion to shareholders, over 80% above our minimum commitment, and equivalent to $213 for every ounce produced over the period,” he comments.

Looking ahead, the definitive feasibility study for the company’s Tier 1 Assafou project, in Côte d'Ivoire, is on schedule for completion by early-2026, and the permitting process is well advanced.

Simultaneously, it is continuing to explore the property and expects to outline a resource update later this year, incorporating resources from satellite discoveries in close proximity to Assafou.

“We are very pleased with the operational performance we have delivered from our expanded portfolio and our ability to convert that performance into cash flow. Our high-margin, long-life operations, coupled with our exciting organic growth pipeline, position us well to continue delivering against our strategic objectives,” Cockerill asserts.