Endeavour Mining Reports Strong Q1 2025 Results - Record Free Cash Flow & Sector-Leading Shareholder Returns

• Strong quarterly production of 341koz at AISC of $1,129/oz; on track to achieve FY-2025 guidance
• Adjusted EBITDA of $613m for Q1-2025, up 12% over Q4-2024
• Record Free Cash Flow of $409m for Q1-2025, up 53% over Q4-2024; $775m generated over past three quarters
• Net debt reduced by over $350m in Q1-2025 to $378m; Net Debt/Adj. EBITDA improved to 0.22x
• FY-2025 total returns expected to exceed FY-2024's record $277m as minimum dividend of $225m has already been supplemented with $52m of share buybacks

Endeavour Mining plc is one of the world's senior gold producers and the largest in West Africa, with operating assets across Senegal, Côte d'Ivoire, and Burkina Faso. The company also maintains a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa. As a member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering meaningful value to people and society.

Q1 2025 Financial Performance: Breaking Records

Endeavour Mining has delivered exceptional financial results in Q1 2025, demonstrating the strength of its operational portfolio and benefiting from favorable gold price environments. The company reported adjusted EBITDA of $613 million, representing a 12% increase over Q4 2024. More impressively, adjusted net earnings reached $219 million (or $0.90 per share), marking a substantial 99% improvement over the previous quarter.

The highlight of the financial results was the record free cash flow of $409 million (or $1.68 per share) for Q1 2025, a 53% increase compared to Q4 2024. This exceptional cash generation continues a strong trend, with Endeavour having generated $775 million in free cash flow over the past three quarters following the completion of its growth phase in Q2 2024. This translates to approximately $795 per ounce produced, showcasing the company's ability to efficiently convert production into cash.

As Ian Cockerill highlighted:

"Our low operating costs coupled with higher realised gold prices underpinned attractive margins and record free cash flow of $409 million for the quarter. Since we've completed our construction phase three quarters ago, we have now generated more than three quarters of a billion dollars of free cash flow and that's equivalent to $795 for every ounce that we have produced. This highlights Endeavour's ability to convert mine ounces into cash."

Operating cash flow before changes in working capital reached $592 million (or $2.43 per share), up 66% over Q4 2024, further highlighting the company's strong operational performance and cash generation capabilities.

Balance Sheet Strength: Rapid Deleveraging

Endeavour's financial discipline has resulted in significant improvements to its balance sheet. The company reduced its net debt by over $350 million in Q1 2025 to $378 million, representing an impressive 48% reduction from the $732 million reported at the end of Q4 2024. As a result, the Net Debt/Adjusted EBITDA ratio improved to 0.22x, well below the company's 0.50x target and down 60% from the 0.55x ratio at the end of Q4 2024.

Ian Cockerill emphasised the strategic importance of this deleveraging:

"And at the same time, we've delivered our balance sheet to below our target, giving us the opportunity to prioritise returning that cash to our shareholders."

This rapid deleveraging following the completion of the company's growth phase reflects the strong cash flow generation capability of the business and positions Endeavour with significant financial flexibility to fund future growth initiatives while continuing to prioritise shareholder returns.

Operational Excellence Across the Portfolio

Endeavour's operational performance in Q1 2025 remained robust, with the company producing 341,000 ounces of gold at an all-in sustaining cost (AISC) of $1,129 per ounce. While production showed a slight decrease of 6% compared to Q4 2024's 363,000 ounces, the company confirmed it remains on track to achieve its FY 2025 production guidance of 1,110,000 - 1,260,000 ounces at an AISC of $1,150 - $1,350 per ounce.

As CEO Ian Cockerill noted in his statement:

"We are pleased that the strong momentum from the end of last year has continued into Q1, as we delivered another quarter of exceptional operational performance, placing us firmly on track to achieve our full-year guidance."

This confidence is further echoed by Ian Cockerill who stated:

"This quarter all of our mines performed well and as a group we produced 341,000 ounces of gold at a class-leading all-in sustaining cost of $1129 per ounce, positioning us firmly on track to achieve our guidance for 2025."

The slight production decrease was primarily attributed to lower output at Houndé (despite stronger than expected performance) and Lafigué as lower grades were mined and processed in line with mine sequencing. This was partially offset by increased production at Mana due to higher grade stopes and at Sabodala-Massawa due to higher mill throughput and recovery rates.

AISC improved marginally from $1,141 per ounce in Q4 2024 to $1,129 per ounce in Q1 2025, driven by lower total cash costs and reduced sustaining waste capital at Houndé and Lafigué, partially offset by higher sustaining underground development at Mana.

Mine-by-Mine Performance

Houndé Gold Mine (Burkina Faso)

Houndé delivered a strong performance in Q1 2025, producing 92,000 ounces at an AISC of $858 per ounce. While production decreased from 109,000 ounces in Q4 2024, the mine benefited from lower mining unit costs following drill and blast optimisation and higher excavator productivities. The decrease in production was attributed to lower processed grades and mill throughput, partially offset by improved recovery rates. Houndé remains on track to achieve its FY 2025 production guidance of 230,000 - 260,000 ounces at an AISC of $1,225 - $1,375 per ounce.

Ity Gold Mine (Côte d'Ivoire)

Ity maintained stable production of 84,000 ounces in Q1 2025, with AISC improving to $930 per ounce from $987 per ounce in Q4 2024. The improvement in AISC was driven by lower processing unit costs due to improved reagent consumption efficiencies and higher availability of lower-cost grid power. Ity remains on track to achieve its FY 2025 guidance of 290,000 - 330,000 ounces at an AISC of $975 - $1,100 per ounce.

Mana Gold Mine (Burkina Faso)

Mana increased production to 46,000 ounces in Q1 2025 from 41,000 ounces in Q4 2024, driven by higher processed grades despite lower mill throughput. AISC increased to $1,887 per ounce from $1,698 per ounce due to higher sustaining capital development, increased royalties, and higher mining and processing unit costs. Mana is on track to meet its FY 2025 guidance of 160,000 - 180,000 ounces at an AISC of $1,550 - $1,750 per ounce.

Sabodala-Massawa Gold Mine (Senegal)

Sabodala-Massawa increased production to 72,000 ounces in Q1 2025 from 70,000 ounces in Q4 2024, with AISC improving to $1,173 per ounce from $1,261 per ounce. The improvement was driven by higher mill throughput and recovery rates through both the CIL and BIOX processing plants, as well as lower haulage costs due to shorter distances. The mine remains on track to achieve its FY 2025 guidance of 250,000 - 280,000 ounces at an AISC of $1,100 - $1,250 per ounce.

A significant milestone was achieved with the commissioning of the 37MWp photovoltaic solar facility and 16MW battery system at Sabodala-Massawa, which reached full nameplate capacity on March 1, 2025. This initiative is expected to significantly reduce fuel consumption, greenhouse gas emissions, and power costs.

Lafigué Mine (Côte d'Ivoire)

Lafigué, Endeavour's newest mine, produced 48,000 ounces in Q1 2025, down from 60,000 ounces in Q4 2024, with AISC increasing to $926 per ounce from $801 per ounce. The decrease in production was due to lower processed grades, partially offset by increased mill throughput. Lafigué is on track to achieve its FY 2025 guidance of 180,000 - 210,000 ounces at an AISC of $950 - $1,075 per ounce.

Sector-Leading Shareholder Returns

Endeavour continues to demonstrate its commitment to delivering sector-leading shareholder returns. Since initiating its shareholder returns program in Q1 2021, the company has returned more than $1.23 billion to shareholders, including $840 million in dividends and $392 million in share buybacks, exceeding its minimum returns commitments by $572 million, or 87%.

For FY 2024, Endeavour returned record dividends of $240 million, with the H2 2024 dividend of $140 million ($0.57 per share) paid on April 15, 2025. These dividends were supplemented with $37 million of share buybacks, bringing total shareholder returns for FY 2024 to $277 million, equivalent to an indicative yield of 5.9%, or $251 per ounce produced.

Ian Cockerill highlighted the company's commitment to shareholder returns:

"In 2024, we returned a sector leading indicative yield of 5.9%. And we've continued to increase shareholder returns in 2025. Already, supplementing our minimum return of $225 million by buying back $40 million worth of shares in Q1 alone. We've also increased the rate of share buybacks by four times compared with Q4 last year, and we're going to continue enhancing our supplemental returns over and above our minimum."

The company has accelerated its share buyback program in 2025, with $40 million or 1.9 million shares repurchased during Q1 2025, a 400% increase compared to Q4 2024. This trend has continued into April with an additional $12.4 million or 0.5 million shares repurchased, bringing total YTD 2025 share repurchases to $52.4 million. Combined with the FY 2025 minimum dividend commitment of $225 million, Endeavour's total minimum return for FY 2025 already stands at $277.4 million, equivalent to the total shareholder returns for FY 2024, with potential for further increases.

Growth Pipeline: Assafou Project Advancement

While delivering strong operational results and shareholder returns, Endeavour continues to advance its organic growth pipeline, particularly the Assafou project in Côte d'Ivoire. The company announced positive pre-feasibility results for Assafou in December 2024, highlighting expected production of 329,000 ounces per annum at an AISC of $892 per ounce over the first 10 years. The project boasts robust economics with an after-tax NPV5% of $1.53 billion and IRR of 28% at a $2,000 per ounce gold price, increasing to $2.49 billion and 40% respectively at a $2,500 per ounce gold price.

Ian Cockerill emphasised the strategic importance of this project:

"While we continue to generate cash and deliver attractive returns, we're also advancing our Tier 1 Assafu project, which underpins 35% growth in production to 1.5 million ounces by the year 2030. At Assafu, encouraging exploration results continue to highlight the project's growing scale and, as we advance towards the completion of the definitive feasibility study, we expect to provide another resource update later on this year."

The Definitive Feasibility Study (DFS) for Assafou is on track for completion between late 2025 and early 2026. Progress on critical path items includes ongoing metallurgical, geotechnical, and hydrogeological drilling, with sterilisation drilling and geotechnical modeling underway to optimise the planned infrastructure layout. The Environmental and Social Impact Assessment submissions were launched in Q1 2025, with environmental permits expected to be granted in H2 2025.

Endeavour's focus on exploration continues with a planned expenditure of $75 million for FY 2025, of which $24.3 million was spent in Q1 2025. This includes $3.4 million specifically allocated to the Assafou deposit and the wider Tanda-Iguela property. The company has already achieved its five-year exploration target to discover 12-17 million ounces of Measured and Indicated resources over the 2021-2025 period for a discovery cost of less than $25 per ounce, having discovered 12.2 million ounces by year-end 2024.

The Investment Thesis for Endeavour Mining

• High-Quality Asset Portfolio: Diversified operations across West Africa (Senegal, Côte d'Ivoire, and Burkina Faso) consistently delivering strong production at competitive costs
• Strong Operational Performance: Q1 2025 production of 341koz at sector-leading AISC of $1,129/oz, with all mines on track to meet FY-2025 guidance
• Exceptional Cash Generation: Record free cash flow of $409 million in Q1 2025 alone, with $775 million generated over just three quarters ($795/oz produced)
• Rapid Deleveraging: Net debt reduced by over $350 million in Q1 2025 to $378 million; Net Debt/Adj. EBITDA improved to 0.22x, well below the 0.50x target
• Sector-Leading Shareholder Returns:
  • 5.9% dividend yield for FY-2024
  • Increased buyback program (400% increase in Q1 2025 vs. Q4 2024)
  • $1.23 billion returned to shareholders since Q1 2021
  • Minimum FY-2025 returns already at $277.4 million
• Compelling Growth Pipeline: Assafou project expected to increase production by 35% to 1.5 million ounces by 2030
• Successful Exploration Program: Five-year target of 12-17Moz already achieved at discovery cost of less than $25/oz
• Strong ESG Commitment: Member of World Gold Council committed to responsible mining practices, with initiatives like the Sabodala-Massawa solar facility
• Favorable Gold Price Environment: Well-positioned to benefit from current gold market conditions
• Financial Flexibility: Strengthened balance sheet provides options for future organic growth while maintaining shareholder returns

Endeavour Mining's Q1 2025 results demonstrate the company's continued operational and financial strength, with record free cash flow generation and significant deleveraging highlighting the quality of its asset portfolio. The company's balanced approach to capital allocation is evident in its commitment to sector-leading shareholder returns while simultaneously advancing its organic growth pipeline, particularly the promising Assafou project.

As CEO Ian Cockerill summarised:

"Building on our momentum through the year, we will focus on maximising free cash flow and enhancing shareholder returns, as we advance our high-quality organic growth pipeline. With our higher-quality portfolio, sector leading margins and best-in-class growth outlook, we are well positioned to capitalise on the favourable gold price environment and deliver value for all of our stakeholders."

With all mines performing in line with guidance, a strengthened balance sheet providing financial flexibility, and an accelerated share buyback program supplementing its already attractive dividend, Endeavour is well-positioned to capitalise on the favorable gold price environment. The company's focus on sustainable growth through both operational optimisation and strategic exploration investments further enhances its long-term outlook, making it a compelling option for investors seeking exposure to a well-managed, cash-generative gold producer with significant growth potential.