Endeavour Mining Cor Stock Earnings Reports

Endeavour delivered a strong Q1 2026: production (282,000 oz) was in line with plan and group guidance remains intact, with higher production expected into H2 and peaking in Q4 as higher-grade ore is accessed. All-in sustaining costs were elevated in Q1 largely because of gold-price driven royalties, some stripping and higher power costs, but on a gold-price adjusted basis underlying costs are in the lower half of guidance. Financially, the quarter was transformational: record free cash flow of $613 million (up 29% QoQ; $2,176/oz), adjusted EBITDA of $880 million and a swing from net debt $158 million to net cash $405 million. Management intends to increase shareholder returns (supplemental dividend in H1 and opportunistic buybacks) and says at prevailing gold prices supplemental returns could be at least double the $1 billion minimum commitment for 2026–2028.

On growth, the Assafou DFS shows very strong project economics (after-tax NPV/value in excess of $5 billion at $4,000/oz and IRR ~55%), early works and long‑lead procurement are underway, and management is targeting an FID before year-end with construction of ~24–30 months. Exploration spend is being accelerated (2026 guidance increased to $100 million) with maiden Vindaloo Deeps resource expected in H1 and other near-mine and new-ventures programs underway (including a $20 million strategic investment in Altair/Guyana).

Operational and near-term financial considerations: cash tax (withholding) timing is seasonal — Q2 will see higher tax payments and management increased cash tax guidance to ~$660–770 million for the year; working capital built in Q1 (notably stockpiles and VAT) is expected to normalize through the year; fuel pricing is the main external cost risk (management estimates roughly $10/oz AISC impact for every $10/bbl move in oil and expects ~ $25/oz impact in Q2 at current oil prices, with additional sensitivity if grid availability forces more self-generation). Safety remains a priority after a contractor fatality at Mana; corrective actions are being implemented.

Capital allocation: pre‑expenditure of c.$50–100m (management referenced ~ $80m of long‑lead buys) for Assafou this year, sustaining and non‑sustaining capex weighted to the first three quarters, and the RCF drawn in Q1 is expected to be repaid in Q3 as OpCo dividends are repatriated. Management does not plan to hold an unnecessarily large net cash position and will prioritize Assafou, exploration and enhanced shareholder returns.