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Endeavour produces 702koz of gold in H1 2022, increases half year dividend by 43% to $100 million

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(Kitco News) - Endeavour Mining (TSX: EDV) announced today that its H1 2022 production from continuing operations amounted to 702koz of gold, an increase of 6koz over H1 2021.

According to a press-release, this increase was due to full period consolidation of production from Sabodala-Massawa as well as improved performance at Houndé, offsetting lower production from Boungou and Wahgnion.

The company's H1 2022 all-in sustaining costs (AISC) from continuing operations of $900/oz increased by $62 per ounce over H1 2021 with higher AISC at Boungou, Ity, and Wahgnion, offset by lower AISC at Mana and Sabodala-Massawa.

The company said it is well positioned to achieve its FY 2022 production and all-in sustaining costs guidance for continuing operations of 1,315-1,400koz at an AISC of $880-930 per ounce.

Endeavour added that operating cash flows increased by $59.2 million from $498.3 million (or $2.17 per share) in H1 2021 to $557.5 million (or $2.24 per share) in H1 2022 due to an increase in the realised gold price, which was offset by higher working capital outflows and lower gold sales.

For H1 2022, net comprehensive earnings of $169.3 million was recognised, a decrease on the earnings of $256.2 million recognised in H1 2021 due to the loss on financial instruments of $72.0 million recorded in H1-2022.

In H1 2022, adjusted net earnings attributable to shareholders for continuing operations decreased to $244.9 million (or $0.99 per share) from $281.5 million (or $1.22 per share) in H1 2021 due to higher income tax expense due to higher taxes at Mana and Sabodala-Massawa, which was partially offset by higher earnings from mine operations and lower acquisition and restructuring costs during H1 2022.

Importantly, Endeavour declared a H1 2022 dividend of $100 million, or $0.40 per share, which represents a 43% increase over the H1 2021 dividend and is reflective of its improved financial position and confidence in its business outlook.

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President and CEO Sebastien de Montessus commented: "We are very pleased with our solid operating and financial performance over the first six months of the year, which has resulted in robust operating cash flow generation of more than $550 million. We are very proud to be on track to achieving both production and AISC guidance for the tenth consecutive year, despite the macro environment, which is a reflection of the resilience of our business and the strong dedication of our team.

"We are now targeting a minimum dividend of $200 million for the year, which is $50 million more than the initial minimum commitment. We are also continuing to supplement our shareholder returns with share buybacks, having completed $38 million over the last six months and $176 million since launching the programme in April 2021."

He added, "Our capital returns programme has returned an impressive $476 million to shareholders since early 2021, inclusive of the H1 2022 dividend, which represents approximately 10% of our current market capitalisation. Looking ahead, we are excited with our growth prospects, with the priority being the Sabodala-Massawa plant expansion which is progressing on-schedule and on budget, with already over a third of the total capital committed."

Endeavour Mining is one of the world's senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d'Ivoire and Burkina Faso and a portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.