Endeavour Mining Q2 Results Report

News

James B. Bell

August 07, 2023

Endeavour Mining, the Africa-focused gold miner, is scheduled to release its second-quarter results on Wednesday. Here are the key details:

Revenue Expectations

Analysts estimate that Endeavour Mining will report quarterly revenue of $583 million. This represents a decline from $591 million in the first quarter and a decrease from the $629.6 million generated in the same period last year.

Earnings per share are also expected to decrease, with the market consensus indicating 0.36 cents compared to 0.76 cents in the year-ago period.

Net Profit Outlook

Based on a FactSet poll, it is projected that net profit will reach $19 million for the quarter. While this represents an increase from $4 million in the previous quarter, it is a significant decline compared to the $189 million achieved a year prior.

Key Factors to Watch

Costs

The sale of non-core, high-cost mines in Burkina Faso in June has resulted in improved full-year cost guidance. Endeavour Mining now expects costs to range from $895 to $950 per ounce, compared to the previous estimate of $940 to $995 per ounce. For the quarter, analysts predict the company's all-in sustaining costs to be $1,185 per ounce, which is higher than the $1,022 per ounce recorded in Q1.

Tanda-Iguela Resource Update

Investors should pay attention to a resource update on the Tanda-Iguela discovery in Ivory Coast, as it has the potential to be a significant asset for Endeavour Mining. The Chief Executive, Sebastien de Montessus, has stated that they will provide a resource update later this year.

Dividend Announcement

Last year, the company raised its dividend for the half-year by 43% to $100 million, or 40 cents per share. It is expected that a similar dividend will be declared for this half-year. Additionally, the company may reiterate its intention to provide $300 million in total shareholder returns for 2023.