Endeavour Mining (TSX: EDV) this morning reported its first quarter financial results. Gold production during the quarter amounted to 357,000 ounces, a decline on a quarter over quarter basis.
Total gold production declined from 398,000 ounces in the prior quarter, but was up on a year over year basis from the 313,000 ounces produced in the first quarter of 2021. All in sustaining costs meanwhile hit $848 per ounce, an improvement over the $894 AISC per ounce recorded in the fourth quarter, but a decline in terms of the $837 AISC per ounce reported in the year ago period.
Realized gold price per ounce meanwhile hit $1,911 in the first quarter, a substantial improvement over the $1,762 per ounce recorded in the year ago period and the $1,792 per ounce achieved in the fourth quarter. Despite this, the firm still posted a net loss of $57 million, compared to a net income of $85 million in the year ago period. The fourth quarter comparatively saw a net loss of $87 million. Adjusted EBITDA meanwhile hit $398 million, versus $363 million in the fourth quarter and $325 million in the first quarter of 2021.
Operating cash flow came in it $299 million, as compared to $345 million in Q4 and $204 million in Q1 2021.
“This performance has resulted in robust cash flow generation during the quarter which, in line with our capital allocation framework, was used to further strengthen our balance sheet, to continue our attractive shareholder returns programme, and to reinvest back into our business. Our net cash position has improved by $90 million to reach $167 million by the end of the quarter, and we also returned more than $100 million to shareholders over the period through dividends and buybacks,” commented Sebastien de Montessus, CEO.
The company views that it is well positioned to hit its prior issued guidance for the fiscal year. Endeavour has previously guided to all in sustaining costs of $880 to $930 per ounce and annual production of 1,315,000 to 1,400,000 gold ounces.
Sustaining capital expenditures of $169.0 million are expected for the year, of which $30.8 million was spent in the first quarter. Non-sustaining expenditures are meanwhile estimated at $204.0 million, of which $41.9 million has been spent.
Endeavour Mining last traded at $31.87 on the TSX.
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