Caledonia Mining Corporation Plc press release
Endeavour Reports Strong FY-2024 Results
NYSE - New York Stock Exchange · Jersey
ENDEAVOUR REPORTS STRONG FY-2024 RESULTS Record Q4-2024 free cash flow of $268m • Improved leverage ratio of 0.55x • 32% increase in P&P reserves
| OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations) | | - Q4-2024 production of 363koz at a class-leading AISC of $1,141/oz; totalling 1,103koz at an AISC of $1,218/oz for FY-2024 | | - Adj. EBITDA of $546m for Q4-2024, a 72% increase over Q3-2024; FY-2024 Adj. EBITDA of $1,325m | | - Adj. Net Earnings of $110m ($0.45/sh) for Q4-2024, a 49% increase over Q3-2024; $227m ($0.93/sh) for FY-2024 | | - Record free cash flow of $268m ($1.10/sh) for Q4-2024, or $418m before the one-off pre-payment settlement | | - Net debt of $732m; leverage of 0.55x Net Debt / Adj. EBITDA (LTM) on track to 0.50x leverage target in near-term | | ROBUST SHAREHOLDER RETURNS | | - Record FY-2024 dividend of $240m and share buybacks of $37m; total shareholder returns of $277m, or $251/oz produced; 32% above the minimum commitment at an attractive 5.9% indicative yield | | - Share buybacks of $22m completed YTD-2025, 69% higher than the prior year bringing total shareholder returns since 2021 to 1.2bn, 82% above minimum commitment | | ATTRACTIVE ORGANIC GROWTH | | - Tier 1 Assafou project DFS on track for late-2025 to early-2026; aggressive exploration ongoing around the project | | - Group reserves increased by 32% or 4.5 Moz, net of depletion, to 18.4 Moz with additions at Assafou (+ 4.1Moz ) and Ity (+ 1.2Moz ); Group M&I discovery target of 12-17Moz achieved with 12.2Moz discovered since 2021 for less than $25/oz |
London, 6 March 2025 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased to announce its FY-2024 operating and financial results, with highlights provided in Table 1 below.
_Table 1: Highlights from continuing operations __1 _
| All amounts in US$ million unless otherwise specified | THREE MONTHS ENDED | YEAR ENDED | | | | | | 31 December 2024 | 30 September 2024 | 31 December 2023 | 31 December 2024 | 31 December 2023 | Δ Q4-2024 vs. Q3-2024 | | | OPERATING DATA | | | | | | | | Gold Production, koz | 363 | 270 | 280 | 1,103 | 1,072 | +34% | | Gold Sold, koz | 356 | 280 | 285 | 1,099 | 1,084 | +27% | | Total Cash Cost 2,3 , $/oz | 979 | 1,128 | 837 | 1,058 | 837 | (13)% | | All-in Sustaining Cost 2,3 , $/oz | 1,141 | 1,287 | 947 | 1,218 | 967 | (11)% | | Realised Gold Price 2,4 , $/oz | 2,590 | 2,342 | 1,945 | 2,349 | 1,919 | +11% | | CASH FLOW | | | | | | | | Operating Cash Flow before changes in working capital | 356 | 245 | 246 | 952 | 746 | +45% | | Operating Cash Flow before changes in working capital 2 , $/sh | 1.46 | 1.00 | 1.00 | 3.89 | 3.02 | +46% | | Operating Cash Flow | 381 | 255 | 167 | 950 | 619 | +49% | | Operating Cash Flow 2 , $/sh | 1.56 | 1.04 | 0.68 | 3.88 | 2.51 | +50% | | Free Cash Flow 2,5 | 268 | 97 | (44) | 313 | (174) | +176% | | Free Cash Flow 2,5 , $/sh | 1.10 | 0.40 | (0.18) | 1.28 | (0.71) | +178% | | PROFITABILITY | | | | | | | | Net Earnings Attributable to Shareholders | (119) | (95) | (160) | (294) | (23) | +25% | | Net Earnings, $/sh | (0.49) | (0.39) | (0.65) | (1.20) | (0.09) | +26% | | Adj. Net Earnings Attributable to Shareholders 2 | 110 | 74 | 42 | 227 | 230 | +49% | | Adj. Net Earnings 2 , $/sh | 0.45 | 0.30 | 0.17 | 0.93 | 0.93 | +50% | | EBITDA 2 | 357 | 128 | 70 | 834 | 773 | +179% | | Adj. EBITDA 2 | 546 | 317 | 292 | 1,325 | 1,047 | +72% | | SHAREHOLDER RETURNS 2 | | | | | | | | Shareholder Dividends 6 | 140 | — | 100 | 240 | 200 | n.a. | | Share Buybacks | 8 | 9 | 26 | 37 | 66 | (11)% | | FINANCIAL POSITION HIGHLIGHTS 2 | | | | | | | | Net Debt | 732 | 834 | 555 | 732 | 555 | (12)% | | Net Debt / LTM Trailing adj. EBITDA 7 | 0.55x | 0.77x | 0.50x | 0.55x | 0.50x | (29)% |
1 Continuing Operations excludes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023. 2 This is a non-GAAP measure, refer to the non-GAAP Measures section for further details. 3 Excludes pre-commercial costs and ounces sold. 4 Realised gold prices are inclusive of the Sabodala-Massawa stream and the realised gains/losses from the Group’s revenue protection programme. 5 From all operations; calculated as Operating Cash Flow less Cash used in investing activities. 6 Shareholder Dividends incl udes H2-2024 declared dividend which are due to be paid on 15 April 2025. 7 Last Twelve Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by discontinued operations.
Management will host a conference call and webcast today, 6 March 2025, at 8:30 am EST / 1:30 pm GMT. For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release. Today the Management Discussion & Analysis, audited Financial Statements and Annual Report for the year ended 31 December 2024 have been submitted to the National Storage Mechanism and filed on SEDAR+. The documents will shortly be available for inspection on the Company’s website and at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism. In addition, the Company has published its 2024 Sustainability Report and associated ESG Reporting Centre, which is also available on the Company’s website.
Ian Cockerill, Chief Executive Officer, commented: “2024 was another year of robust operational performance. We produced 1.1 million ounces of gold at an all-in sustaining cost of $1,218 per ounce, increasing our annual production and solidifying our position as one of the sector’s lowest-cost producers.
We further strengthened our portfolio, adding two high-margin growth projects in Senegal and Côte d'Ivoire, both of which were delivered on budget and on time. These will help to grow our production profile, improve costs and extend mine-life visibility, increasing both the quality and diversification of our portfolio.
Following the startup of these projects, we delivered a strong end to the year, generating a record $268 million of free cash flow in Q4 – or over $400 million when adjusted for the one-off pre-payment settlement – demonstrating the improved capacity of our higher quality portfolio, to generate cash. As a result, our financial position also improved significantly and we ended the year with a leverage ratio of 0.55x, placing us firmly on track to achieve our near-term target of 0.50x.
Given our strong financial position and robust operational performance, we declared a record $240 million dividend, which was supplemented with $37 million of share buybacks, bringing total returns to shareholders to $277 million for FY-2024, equivalent to more than $250 for every ounce produced. This year we will prioritise maximising free cash flow generation to support our increased commitment to shareholder returns.
Whilst we remain focused on free cash flow in the near-term, we retain a strong platform for further growth, with the pre-feasibility study for the Assafou project, that was completed in December, confirming the project’s potential to be a tier-1 asset and underpinning the Groups production growth to 1.5 million ounces by the end of the decade. As we advance the definitive feasibility study towards completion before early 2026, we are advancing exploration at the highly prospective, 20-kilometre long, Assafou corridor and at several nearby satellite targets.
Following the successes at Lafigué and Assafou, exploration continues to generate significant value and our programme has now delivered 12.2 million ounces of M&I resource discoveries, at less than $25 per ounce, since 2021, achieving our five year target, a year early. During FY-2024, we successfully increased group reserves by 32% or 4.5 million ounces, net of depletion, equivalent to more than three times annual production depletion, underlining our ability to not only maintain production visibility, but to extend mine lives as well.
Our commitment to ESG disclosure continues to earn external recognition. We have maintained top-tier Sustainalytics and MSCI ratings, placing us among the leading companies not only in our sector, but across industries.
Looking ahead we will carry the strong momentum from the second half of 2024 into 2025, as we focus on operational delivery to maximise cashflow and support enhanced returns for our shareholders."
SHAREHOLDER RETURNS PROGRAMME
• As previously announced, Endeavour’s H2-2024 dividend amounts to a record $140.0 million, or approximately $0.57 per share and is expected to be paid on 15 April 2025 to shareholders of record on 14 March 2025. This brings the FY-2024 dividend to an annual record of $240.0 million or approximately $0.98 per share, which represents $30.0 million more than the minimum dividend commitment of $210.0 million for the year, reiterating Endeavour's strong commitment to paying supplemental shareholder returns.
• Shareholder returns continue to be supplemented through the Company’s share buyback programme. A total of $37.0 million, or 1.8 million shares were repurchased during FY-2024, of which $8.0 million or 0.4 million shares were repurchased in Q4-2024. Furthermore, a total of $21.8 million or 1.1 million shares have been repurchased year-to-date, equivalent to a 69% increase over the same period last year; the increased commitment to share buybacks is expected to continue subject to gold price and operational performance.
• As shown in the table below, Endeavour has returned $277.0 million to shareholders through dividends and share buybacks, 32% above the $210.0 million minimum commitment for the year, and equivalent to $251/oz produced. Since Endeavour’s first dividend payment in 2021, Endeavour has returned $1,202 million to shareholders in the form of dividends and buybacks which represents $542.0 million or 82% more than its minimum commitment over the 2020-2024 period.
Table 2: Cumulative Shareholder Returns
| (All amounts in US$m) | | MINIMUM DIVIDEND COMMITMENT | SUPPLEMENTAL DIVIDENDS | BUYBACKS COMPLETED | TOTAL RETURN | △ ABOVE MINIMUM COMMITMENT | | | FY-2020 | — | 60 | — | 60 | +60 | | 2021-2023 Shareholder Returns Programme (completed) | FY-2021 | 125 | 15 | 138 | 278 | +153 | | FY-2022 | 150 | 50 | 99 | 299 | +149 | | | FY-2023 | 175 | 25 | 66 | 266 | +91 | | | 2024-2025 Shareholder Returns Programme (ongoing) | FY-2024 | 210 | 30 | 37 | 277 | +67 | | FY-2025 (minimum) | 225 | n.a | 22 | 247 | +22 | | | TOTAL | | 885 | 180 | 362 | 1,427 | +542 |
• As previously stated, Endeavour implemented a renewed shareholder returns programme in 2024 covering the FY-2024 and FY-2025 period. The minimum dividend for FY-2025 is $225.0 million and this is expected to be supplemented with both additional dividends and increased opportunistic share buybacks. Dividends are expected to be paid semi-annually, provided that the prevailing gold price for the dividend period is at or above $1,850/oz and the Company has a healthy financial position. Supplemental returns are expected to be paid in the form of dividends and opportunistic share buybacks, if the gold price exceeds $1,850/oz and if the Company has a healthy financial position. As such, Endeavour targets a minimum return of $1,427.0 million to shareholders by the end of 2025, to be further supplemented with additional dividends and opportunistic share buybacks.
• Endeavour’s H2-2024 dividend will be paid on 15 April 2025 (“Payment Date”), to shareholders of record on 14 March 2025, with an ex-dividend date for holders of shares listed on the London Stock Exchange of 13 March 2025. For holders of shares traded on the Toronto Stock Exchange, both the ex-dividend and record dates will be 14 March 2025. Holders of shares listed on the Toronto Stock Exchange will receive dividends in Canadian Dollars (“CAD”) but can elect to receive United States Dollars (“USD”). Holders of shares traded on the London Stock Exchange will receive dividends in USD but can elect to receive Pounds Sterling (“GBP”). Currency elections and elections under the Company's dividend reinvestment plan ("DRIP") must be made by all shareholders prior to 17:00 GMT on 25 March 2025. Dividends will be paid in the default or elected currency on the Payment Date, at the prevailing USD:CAD and USD:GBP exchange rates as at 27 March 2025. This dividend does not qualify as an “eligible dividend” for Canadian income tax purposes. The tax consequences of the dividend will be dependent on the particular circumstances of a shareholder.
• Endeavour is pleased to continue to offer a DRIP, to offer existing shareholders the opportunity, at their own election, to increase their investment in Endeavour by receiving dividend payments in the form of ordinary shares in the Company.
• Participation in the DRIP is optional and available to shareholders, subject to local law, who hold shares on the London Stock Exchange or on the Toronto Stock Exchange. Participants may opt to reinvest all, or any portion of their dividends in the DRIP. Custodians are reminded that as part of the terms and conditions of the DRIP, if you make a partial election on the DRIP, the remaining shares on your holding will be paid out automatically in GBP and not in the default currency of your specific holding(s). The enrolment form is available on Endeavour’s website. The last election date for participation in the H2-2024 DRIP will be 25 March 2025.
• In accordance with the DRIP, Endeavour’s Registrar, Computershare, will use cash dividends payable to participating shareholders to purchase ordinary shares in the open market on the Toronto Stock Exchange and the London Stock Exchange at the prevailing market price.
CASH FLOW SUMMARY
The table below presents the cash flow for Endeavour for the three month period ended 31 December 2024, 30 September 2024, and 31 December 2023, and the twelve month period ended 31 December 2024 and 31 December 2023 with accompanying explanations below.
Table 3: Cash Flow Summary
| | | THREE MONTHS ENDED | YEAR ENDED | | | | | All amounts in US$ million unless otherwise specified | Notes | 31 December 2024 | 30 September 2024 | 31 December 2023 | 31 December 2024 | 31 December 2023 | | Net cash from/(used in), as per cash flow statement: | | | | | | | | Operating cash flows before changes in working capital 1 | | 356 | 245 | 246 | 952 | 746 | | Changes in working capital 1 | | 25 | 10 | (80) | (2) | (127) | | Cash generated from operating activities from continuing operations | [1] | 381 | 255 | 167 | 950 | 619 | | Cash generated from discontinued operations | | — | — | — | (6) | 27 | | Cash generated from operating activities | [1] | 381 | 255 | 167 | 943 | 647 | | Cash used in investing activities | [2] | (113) | (158) | (211) | (630) | (821) | | Free Cash Flow 2,3 | | 268 | 97 | (44) | 313 | (174) | | Cash used in financing activities | [3] | (136) | (241) | (79) | (439) | (277) | | Effect of exchange rate changes on cash | | 0 | 9 | 15 | (7) | 17 | | (DECREASE)/INCREASE IN CASH | | 132 | (135) | (108) | (133) | (434) | | Cash and cash equivalent position at beginning of period 4 | | 252 | 387 | 625 | 517 | 951 | | CASH AND CASH EQUIVALENT POSITION AT END OF PERIOD 4 | [4] | 384 | 252 | 517 | 384 | 517 | | Gross debt 5 | | 1,116 | 1,085 | 1,072 | 1,116 | 1,072 | | NET DEBT 2 | [5] | 732 | 834 | 555 | 732 | 555 | | Trailing twelve month adjusted EBITDA 2,6 | | 1,325 | 1,082 | 1,101 | 1,325 | 1,101 | | Net Debt / Adjusted EBITDA (LTM) ratio 2,6 | | 0.55x | 0.77x | 0.50x | 0.55x | 0.50x |
1 Continuing operations excludes the Boungou and Wahgnion mines which were divested on 30 June 2023. 2 Free cash flow, net debt, and adjusted EBITDA are Non-GAAP measures. Refer to the non-GAAP measure section in this press release and in the Management Report. 3 Calculated as Operating Cash Flow less Cash used in investing activities. 4 Cash and cash equivalents are net of bank overdrafts ($13.1 million at 31 December 2024, $62.2 million at 30 September 2024; $21.1 million at 30 June 2024; Nil at 31 December 2023; Nil at 30 September 2023; Nil at 30 June 2023; Nil at 31 December 2022). 5 Gross debt includes the principal amount of the $500 million Senior Notes and the drawn portions of the $700 million Revolving Credit Facility, $167 million Lafigué term loan, and $2 8 million Sabodala-Massawa term loan. Gross debt excludes $13.1 million overdraft facility. 6 Trailing twelve month adjusted EBITDA includes EBITDA generated by discontinued operations.
NOTES:
1) Operating cash flows increased by $126.6 million from $254.8 million ($1.04 per share) in Q3-2024 to $381.4 million ($1.56 per share) in Q4-2024 due to higher gold sales volumes, a higher realised gold price, lower taxes paid related to the timing of tax payments, and a higher working capital inflow partially offset by the non-cash adjustments for deferred revenue of $150.0 million recognised in relation to the settlement of the gold prepayment agreements entered in Q2-2024, higher royalties and higher operating costs. Operating cash flows increased by $296.8 million from $646.5 million ($2.62 per share) in FY-2023 to $943.3 million ($3.85 per share) in FY-2024 due to a higher realised gold price, a lower working capital outflow and lower taxes paid at Sabodala-Massawa and Mana, partially offset by higher operating costs and royalties. Notable variances are summarised below:
• Working capital was an inflow of $25.1 million in Q4-2024, an increase of $15.0 million over the Q3-2024 inflow of $10.1 million. The inflow in Q4-2024 was largely driven by a trade and other payables inflow of $46.7 million primarily related to the timing of supplier payments at Lafigué, Mana and Sabodala-Massawa, timing of royalty payments and year-end payroll related liabilities, partially offset by an outflow in trade and other receivables of $11.8 million related to the timing of gold sales, an outflow of inventories of $7.4 million primarily related to additions to stockpiles and consumables at Sabodala-Massawa, Ity and Lafigué, and an outflow in prepaid expenses and other items of $2.4 million. Working capital was an outflow of $2.1 million in FY-2024, a decrease of $124.8 million over the FY-2023 outflow of $126.9 million, driven by an outflow of inventories at Sabodala-Massawa and Lafigué in line with operational readiness of the assets and stockpiling ahead of processing, an outflow of prepaid expenses and other items at Sabodala-Massawa and Ity and an outflow in trade and other receivables related to the timing of gold sales which were partially offset by an inflow of trade and other payables related to an overall higher operating cost base with the addition of Lafigué and Sabodala-Massawa BIOX projects and higher royalties.
• Gold sales increased from 280koz in Q3-2024 to 356koz in Q4-2024 following increased production across the portfolio primarily driven by access to higher-grade ore at Houndé’s Kari Pump pit, a full quarter of production at Lafigué, and increased production at Mana due to increased stoping rates at Wona. The realised gold price increased from $2,506/oz for Q3-2024 to $2,620/oz for Q4-2024. Inclusive of the Group’s Revenue Protection Programme, the realised gold price increased from $2,342/oz for Q3-2024 to $2,590/oz for Q4-2024. Gold sales from continuing operations increased from 1,084koz in FY-2023 to 1,099koz in FY-2024, due to higher Group production from continuing operations in FY-2024, driven by record production at Ity, increased production at Mana and the addition of Lafigué, partially offset by lower production at Houndé following record production in FY-2023 and underperformance at Sabodala-Massawa. The realised gold price from continuing operations increased from $1,939/oz for FY-2023 to $2,418/oz for FY-2024. Inclusive of the Group’s Revenue Protection Programme, the realised gold price increased from $1,919/oz for FY-2023 to $2,349/oz for FY-2024.
• Total cash cost per ounce decreased from $1,128/oz in Q3-2024 to $979/oz in Q4-2024, due to higher gold sales at Houndé, Mana and Lafigué driving per ounce cash costs lower as well as lower underground mining costs at Mana, partially offset by higher costs at Ity due to increased mining unit costs as average haulage distance increased. Total cash cost per ounce increased from $837/oz in FY-2023 to $1,058/oz in FY-2024 due to increased cash costs at Houndé, Ity, Mana and Sabodala-Massawa due to higher royalty costs, the impact of low grid power availability in H1-2024, as well as significantly lower production at Sabodala-Massawa, partially offset by the H2-2024 impact of the lower-cost Lafigué mine.