The Toronto-listed firm's deal for rival gold miner Semafo helped the company increase production by 40% from 2019's levels to a record 908,000 ounces last year


Endeavour increased production from 2019 to a record 908,000 ounces last year (Credit: Endeavour)

Endeavour Mining has reported a full-year results record in 2020, with cash flow up 148% on the previous year to $364m.

The Toronto-listed firm posted $345m in adjusted net earnings – worth $2.51 per share – for the 12-month period ending December, marking a year-on-year increase of 368%.

That was aided by a 258,000 ounces (oz) – or 40% – increase in production from 2019 to a record 908,000 oz last year, as the company became West Africa’s biggest gold producer following the one billion Canadian dollar ($802m) deal for rival gold miner Semafo in July 2020.

Endeavour president and CEO Sebastien de Montessus said: “2020 was a transformational year for Endeavour as we consolidated our strategic position in West Africa, creating a resilient business capable of rewarding our shareholders through the cycle.

“Our business is underpinned by long-life and low-cost cash-generative mines, robust organic growth opportunities and a strong focus on contributing to socio-economic development wherever we operate.”


Endeavour posted strong financial results in 2020

The miner’s free cash flow increased from $38m in 2019 to $476m across last year, with the fourth quarter alone delivering $261m.

On top of the strong financial figures, the company reduced its net debt by $603m in 2020 to end the year with a net cash position of $75m.

Last year’s record production total came as a result of a record Q4 output of 344,000 oz – a 41% increase on Q3.

De Montessus said the improved production figures arrived as the company realised the full benefits from the integration of the Semafo assets and the ramp-up of the high-grade Kari Pump deposit at Houndé.

The company confirmed it has upgraded its previous 2021 production guidance from between 900,000 oz and 990,000 oz to 1.35 million oz and 1.48 million oz.

“Looking ahead to 2021, we are focused on progressing our organic growth opportunities through mine life extensions, asset optimisation, and green and brownfield exploration,” said De Montessus.

“The most promising of these is the Phase 1 and 2 expansions at Sabodala-Massawa which will help transform the mine into a tier-one asset.”

Endeavour’s CEO said the company are also excited to continue working towards securing a premium listing on the London Stock Exchange as it seeks to broaden its appeal to a “wider group of potential investors”.

He added: “We believe that our robust business, upcoming catalysts, and our attractive shareholder return programme, which offers an attractive dividend that will be supplemented with the introduction of a share buyback programme, offers a compelling value proposition for both existing and new shareholders.”