Endeavour Mining (TSX: EDV) has delivered the financial results of its first quarter of 2025, with revenues soaring 120% year-over-year to $1.04 billion, driven by a 57% jump in gold sales volume to 353,000 ounces and a realized gold price of $2,783 per ounce—up sharply from $2,041 per ounce in Q1 2024 and $2,590 per ounce in Q4 2024.
Operating income rose to $533 million from $130 million a year ago. Net earnings then swung to a $173 million profit from a $119 million loss in Q4 2024 and a $20 million loss a year ago, while adjusted net income jumped 99% quarter-over-quarter to $219 million, or $0.90 per share. Adjusted EBITDA climbed to $613 million, up 12% from Q4 and nearly triple Q1 2024 levels.
However, Endeavour’s use of derivative instruments to hedge revenue backfired, with a $100 million loss on financial instruments dragging down earnings. The group’s Revenue Protection Programme—consisting of gold collars and LBMA price averaging—sapped $93 per ounce from realized pricing.
“Despite robust operational execution, these hedging losses warrant close scrutiny,” one analyst noted, emphasizing their impact on an otherwise clean earnings report.
On the cost side, Endeavour lowered its AISC to $1,129 per ounce, down from $1,186 per ounce in Q1 2024. Total cash cost declined to $929 per ounce from $1,007 per ounce in Q1 2024. Mana remained a cost outlier at $1,887 per ounce AISC, up from last year’s $1,453 per ounce.
Free cash flow hit a record $409 million, up 53% quarter-on-quarter and a sharp reversal from the $133 million outflow in Q1 2024. Operating cash flow before working capital adjustments surged to $592 million from $356 million in Q4 and just $137 million a year earlier.
Endeavour’s net debt fell to $378 million from $732 million in Q4, slashing the net debt-to-EBITDA ratio to 0.22x—well below the 0.50x target. This was aided by reduced capital spending: growth capex dropped to just $5.7 million in Q1 from $24 million in Q4 and $99 million in Q1 2024 as the Lafigué and Sabodala-Massawa expansions concluded.
Production reached 341,000 ounces, a 6% drop from Q4 but up 56% from Q1 2024. The sequential decrease was expected due to mine sequencing at Houndé and Lafigué, while gains at Mana and Sabodala-Massawa partially offset losses.
The company reaffirmed its full-year guidance of 1.11–1.26 million ounces at an AISC of $1,150–$1,350 per ounce.
Endeavour Mining last traded at $37.35 on the TSX.
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