Endeavour Mining (LSE:EDV) reported adjusted EBITDA of $2,250m for the first nine months of 2026, up 38% on the same period last year, as higher realised gold prices offset a production shortfall at its Mana mine in Burkina Faso.
The London-listed, West Africa-focused gold producer posted record year-to-date free cash flow of $1,023m, up 50% year-on-year, and adjusted net earnings of $913m, or $3.78 per share, up 64%.
For the third quarter alone, production came to 256koz at an all-in sustaining cost (AISC) of $1,857 per ounce, down from 283koz in the second quarter, reflecting lower grades at Ity, Houndé and Lafigué in line with the mine sequence, along with wet-season disruption at Houndé and a temporary mining pause at Mana's Aviera portal.
Nine-month production totalled 820koz at an AISC of $1,866/oz, or approximately $1,700/oz when adjusted for the $166/oz impact of higher gold prices on royalty costs, which the company said keeps it in line with the midpoint of its guidance range.
Endeavour said it remains on track to hit the lower half of its full-year production guidance of 1,090koz to 1,265koz, with Lafigué expected to finish near the top of its range on continued outperformance, while Mana is expected to come in below the low end after the accelerated depletion of its high-grade Siou underground deposit and a ramp subsidence that forced the suspension of underground mining from 28 October.
The company ended the quarter with net cash of $263m, having cut gross debt by $412m to $586m, helped by the full repayment of its revolving credit facility, which had been drawn by $410m at the end of the second quarter.
Endeavour returned $312m to shareholders in the nine months to September, including a record $230m dividend, equivalent to $0.95 per share, and $82m of share buybacks; the company said total returns are now 86% above its minimum commitment since the shareholder returns programme began in 2021, having grown at a compound annual rate of around 12%.
"With our strongest operational quarter planned for Q4, we expect an even better financial performance to round off a record year," said chief executive Ian Cockerill, adding that the company had made "significant progress in de-risking our organic growth strategy".
The company confirmed that its board has approved the final investment decision for the Assafou project and launched development, targeting first gold in the first half of 2029, less than seven years after discovery.
The definitive feasibility study, completed earlier this year, outlined output of 320koz a year at an AISC of $1,026/oz over the first eight years of a 16-year mine life, with an after-tax net present value of $5.1bn and an internal rate of return of 55%; Endeavour said the initial capital cost estimate has risen slightly to $1.2bn to reflect additional compensation and de-risking costs, against the $1,061m previously outlined in the DFS.
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Phase 1 of the Sabodala-Massawa underground expansion in Senegal has also started, with portal development under way and first ore targeted by year-end, ahead of a Phase 2 launch in early 2027 and commercial production expected in early 2028.
Endeavour said exploration at the Kawsara discovery near Sabodala-Massawa and the Vindaloo Deeps discovery near Houndé is expected to support improved life-of-mine outlooks at both operations, with resource updates due in the fourth quarter.
Mana's setback stems from a subsidence of part of the access ramp leading to the Wona open pit, which the company said has restricted access to two of its three underground portals; a geotechnical review is ongoing, with rehabilitation at Wona expected to begin in the fourth quarter and ore mining there to restart in the second quarter of 2027, subject to Burkina Faso regulatory approval.
Processing activities at Mana are expected to remain paused until the second quarter of 2027, and the company said full production, cost and capital guidance for the mine in 2027 will be provided with its preliminary results in January.
Management will host a conference call and webcast today, Thursday 12 November, at 8:30am EST.