Endeavour Mining shares spiked 8.4% to 2,104p in late morning trading following a slate of positive results from the company, including a 14% Q1 2022 gold production to 357koz and a relatively flat AISC at $848 per oz.
The mining group reported that it was well-positioned to hit its FY2022 guidance of 1,315 to 1,400koz at an AISC of $880 to $930 per oz.
Endeavour added that its adjusted net earnings rose $22 million to $122 million, representing a 2% increase on a per share basis to 49c per share, with an operating cash flow saw a boost of $96 million to $299 million and a 23% rise on a per share basis to $1.21.
The company said its net cash position increased by $90 million over Q1 2022 to $167 million, despite $101 million paid in capital returns to shareholders.
The mining firm paid out a dividend of $70 million over the quarter, amounting to $200 million in dividends paid out since Q1 2021.
Endeavour Mining reported the continuation of its share buyback programme, with $31 million in shares repurchased across the quarter, totally $169 million since the programme started in April 2021.
“We are pleased to have started the year on a strong footing with both production and all-in sustaining costs well positioned to meet full year guidance,” said Endeavour Mining CEO Sebastien de Montessus.
“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.”
