Endeavour Mining PLC (EDVMF) (Q3 2026) Earnings Call Highlights: Record $2. ... GuruFocus News Thu, November 12, 2026 at 6:06 PM EST 9 min read GC=F +0.23% EDV.TO -8.03% EDVMF -7.38% This article first appeared on GuruFocus.
Gold Production (Q3): 256,000 ounces, down from Q2 on lower grades at Ity, Hounde and Lafigue, wet-season impacts at Hounde, and the Aviera portal pause at Mana.
Gold Production (9M YTD): 820,000 ounces; full-year guidance expected in the lower half of the range.
All-In Sustaining Costs (Q3): $50/oz lower quarter-on-quarter, driven by lower sustaining capital and lower-than-anticipated input cost increases.
All-In Sustaining Costs (9M YTD): $1,700/oz on a royalty-adjusted gold price basis, in line with the midpoint of original guidance.
Adjusted EBITDA (Q3): $639 million, down slightly on lower gold sales and prices; EBITDA margin also declined slightly.
Adjusted EBITDA (9M YTD): Record $2.25 billion, up 38% year-on-year, at a 61% adjusted EBITDA margin.
Margin: Record 40% margin year-to-date, 40% higher than the same period last year.
Operating Cash Flow (Q3): $407 million, up 28% quarter-on-quarter.
Free Cash Flow (Q3): $261 million, up 76% quarter-on-quarter.
Free Cash Flow (9M YTD): Record $1.02 billion, equivalent to $1,246 per ounce produced, ~50% higher year-on-year.
Earnings from Mine Operations (Q3): $514 million.
Adjusted Net Earnings (Q3): $241 million, or $1 per share.
Cash Taxes: Decreased $291 million quarter-on-quarter; ~95% of full-year cash taxes already paid.
Net Cash Position: $263 million, with leverage well below long-term target.
Gross Debt: Reduced to $586 million after repaying $410 million on the RCF and $10 million on the Lafigue term loan.
Liquidity: ~$850 million cash and ~$700 million available through undrawn RCF.
Shareholder Returns: Record $312 million in dividends and buybacks returned YTD, exceeding the full-year minimum commitment; over $1.9 billion returned since 2021.
Assafou Project CapEx: Increased to $1.2 billion to further de-risk; ~5% of initial capital committed; first gold targeted H1 2029.
Lafigue Throughput: 11.5% above design nameplate year-to-date 2026; on track for near top-end production guidance and costs near lower end.
Ity Non-Sustaining Capital: Reduced full-year spend by $20 million to $25 million.
Mana Guidance: Production expected significantly below the low end of guidance with costs above the top end; processing paused until Q2 2027.
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For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Record financial performance with adjusted EBITDA of $2.25 billion, up 38% year-over-year, and a 61% EBITDA margin.
Record free cash flow generation of over $1 billion year-to-date, a 50% increase from the prior year.
Strong balance sheet with a net cash position of $263 million and leverage well below target.
Sector-leading shareholder returns with $1.9 billion returned since 2021 and a record $312 million returned in 2026 so far.
Organic growth pipeline on track: Assafou project approved with first gold expected in H1 2029, and Sabodala-Massawa underground expansion progressing.
Production guidance for the year is expected at the lower half of the range due to lower-than-expected production at Mana.
Suspension of underground mining at Mana following ramp subsidence; production expected to be significantly below guidance and costs above the top end.
Safety incident at Ity mine resulted in a fatality, highlighting ongoing safety challenges.
Q3 production decreased quarter-over-quarter due to lower grades and wet season impacts, with EBITDA and adjusted EBITDA also lower.
Increased capital expenditure at Assafou to $1.2 billion, with cost pressures from land compensation and additional contingencies.
Q: Daniel Major (UBS) asked for a broad steer on the distribution of the increased $1.2 billion Assafou CapEx between now and commissioning in 2029, and whether the group still expects to spend near $100 million on growth CapEx this year.A: CEO Ian Cockerill said up to roughly $100 million will be spent this year, focused on long-lead items and the crop compensation scheme, which forms part of the $1.2 billion rather than being additional to it. Of the remaining ~$1.1 billion, he guided to up to ~$500 million in 2027 and ~$600-odd million in 2028, preparing for production in early 2029, with a significant acceleration in Q4 2026 as crop compensation payments and long-lead invoices come through.
Q: Daniel Major (UBS) asked whether Mana remains core to the portfolio given its quality concerns and the latest incident, and whether there is a viable path back to underground mining.A: CEO Ian Cockerill said Mana had been strongly cash generative and a healthy contributor to the group until this incident, which caused no injuries. On-site investigations indicate a workaround exists to re-enter underground, though it will take time. The review identified a north-south trending graphitic shear zone in the shallow workings, and the company will re-enter cautiously and responsibly, with no further deterioration observed in deeper operations and no associated seismic activity. Fuller details are expected with the year-end results at the end of January.
Q: Daniel Major (UBS) asked whether full-year capital returns of $500 million to $600 million remain the target, referencing the prior $600 million guidance at a $4,500 gold price.A: CEO Ian Cockerill declined to give exact forward guidance but said the company remains in a sound position to deliver very good returns and to continue being a sector leader on shareholder returns, noting the analyst's calculator works as well as theirs.
Q: Kristian Koschany (National Bank Financial) asked what regulatory steps remain to start open pit mining at Bana Camp and Maoula, and whether conversations with authorities have begun for restarting underground mining at Wona, Dangouna and Aviera.A: CEO Ian Cockerill said the official Bana Camp permit has now been received after some delay, enabling limited ground preparation, stripping, drill pad creation and advanced grade control drilling, with stripping hoped to start early next year and ore stockpiling by Q2 2027 given modest stripping ratios. On underground restart approvals, he said open and transparent conversations are underway with the Minister of Mines, whose team will be closely associated with the program, approval of the plan and final authorization to commence operations, and good progress is being made.
Q: Kristian Koschany (National Bank Financial) asked about grade profiles, specifically whether the Q4 grade step-up at Hounde after Vindaloo Main Phase 3 stripping is a peak or the new baseline for 2027, and how long and deep the grade and recovery dip will be at Lafigue as stockpile feed rises during the next Main and West pits pushback.A: EVP Djaria Traore said Vindaloo Main 3 was the main production source in 2026, and with peak stripping complete, higher grades are now expected and should not simply revert downward, as grades follow mine sequencing with stripping followed by higher-grade periods through 2027 and beyond. She noted the pattern of maximizing production in Q1-Q3 with a Q3 dip and a Q4 recovery is part of normal sequencing, and whether Q4 levels become the baseline depends on what the company is targeting.
Q: Analysts sought clarity on full-year guidance given Mana's underground suspension, including production and cost positioning.A: CEO Ian Cockerill said the group remains on track for the lower half of production guidance with costs in line on a royalty-adjusted basis, as Lafigue's strong performance offsets lower-than-expected Mana production. Year-to-date AISC of $1,700 per ounce is in line with the midpoint of original guidance, and Q4 is expected to be the strongest quarter as Hounde, Ity and Sabodala-Massawa move into higher grades.
Q: Analysts asked about the financial performance and cash generation underpinning the quarter and year to date.A: CFO Guy Young reported Q3 production of 256,000 ounces, AISC down $50 per ounce quarter-on-quarter on lower sustaining capital and lower input cost increases, and free cash flow up 76% to $261 million, bringing year-to-date free cash flow to a record $1.02 billion. Year-to-date adjusted EBITDA reached a record $2.25 billion, up 38%, at a 61% margin, with adjusted net earnings attributable to shareholders of $241 million, or $1 per share.
Q: Analysts asked about balance sheet strength and liquidity.A: CFO Guy Young said the company maintained a net cash position of $263 million with leverage well below the long-term target. Gross debt was reduced to $586 million after repaying $410 million on the revolving credit facility and $10 million on the Lafigue term loan, with around $850 million of cash and $700 million available through the undrawn RCF, providing flexibility to fund growth and shareholder returns.
Q: Analysts asked about the Assafou final investment decision and the reasons behind the increased CapEx envelope.A: CEO Ian Cockerill said FID has been approved with first gold targeted for H1 2029, 24 to 30 months post-FID and seven years after discovery, and in-principle Mining Convention terms are finalized under the 2014 code with full sign-off expected in coming weeks. The CapEx envelope rose to $1.2 billion, with about 60% from higher land and crop compensation rates following government and community consultations, 25% from additional contingencies around the highway diversion, grid connection and moved transmission lines, and 15% from small de-risking changes including grade control drilling and EPCM support.
Q: Analysts asked about progress at the Sabodala-Massawa underground expansion and the Massawa North Zone test work.A: Management said phase one of the underground expansion is on track for first ore by year end, and phase two is now board approved, launching in early 2027 with commercial production targeted for early 2028. EVP Djaria Traore noted Massawa North
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
