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(Sharecast News) - Endeavour Mining reported strong third-quarter results on Thursday, saying it remained on track to meet its 2025 production and cost guidance, supported by higher grades, strong gold prices and continued improvements in free cash flow and balance sheet strength.
The FTSE 100 West Africa-focused producer delivered 911,000 ounces of gold in the first nine months of the year, positioning it for the top half of its full-year production target of 1.11 million to 1.26 million ounces.
Third quarter output of 264,000 ounces reflected lower grades and seasonal reductions in mill throughput but was in line with mine sequencing.
Year-to-date all-in sustaining costs averaged $1,362 per ounce, within guidance once adjusted for $103 per ounce in additional royalty charges driven by the much higher realised gold price of $3,221 per ounce.
Third quarter AISC rose to $1,569 per ounce, similarly affected by higher royalty costs and wet-season operating impacts.
Year-to-date adjusted EBITDA more than doubled to $1.63bn, while adjusted net earnings rose almost fivefold to $556m, or $2.29 per share.
Free cash flow reached $680m, up more than 1,400% on the prior year, with the third quarter contributing $166m.
Endeavour repaid its revolving credit facility during the quarter, reducing gross debt by $425m to $678m and lowering net debt to just 0.21x adjusted EBITDA.
Chief executive Ian Cockerill said the company's operational performance and higher gold prices underpinned a sharp increase in free cash flow.
"The third quarter of 2025 marked another solid operational quarter placing us firmly on track to achieve our full-year guidance," he said.
"This performance, coupled with higher gold prices, underpinned a 59% increase in free cash flow generation in the third quarter ... and we remain focused on maximising free cash flow generation from every ounce of gold that we produce."
He added that shareholder returns increased, noting that after payment of the firm's record $150m dividend early in the fourth quarter, it continued to buy back shares, bringing year-to-date returns to $233m.
"As we look forward to our next phase of growth, we expect to be well positioned to continue delivering sector-leading returns throughout."
Endeavour said it had now returned more than $1.4bn to shareholders since 2021, exceeding its minimum commitment by 83%.
In October it paid a record $150m interim dividend and had repurchased $83m of shares so far this year.
Total returns for 2025 were already above the $225m minimum, and were set to rise further when the second-half dividend is declared in early 2026.
The company said its organic growth pipeline remained robust.
At Assafou, the environmental permit was approved in the third quarter and a definitive feasibility study remained on track for completion in the first three months of the 2026 financial year.
Exploration spending reached $72m year-to-date, extending near-mine resources at Hound, Sabodala-Massawa, Ity and Assafou.
Endeavour said it had completed its five-year exploration strategy, delivering 12.4 million ounces of discoveries at less than $25 per ounce, and plans to outline a new strategy in the fourth quarter.
Endeavour reiterated its expectation of achieving the top half of its production range and its AISC target of $1,150 to $1,350 per ounce, excluding the impact of royalty increases linked to high gold prices.
Fourth-quarter output was expected to rise due to higher-grade ore at Lafigu, Mana and Sabodala-Massawa, with AISC set to improve as grades and sales increase.
At 1156 GMT, shares in Endeavour Mining were up 10.83% at 3,562p.
Reporting by Josh White for Sharecast.com.