Endeavour Mining (LON: EDV), the West African gold miner, reported record free cash flow for the first nine months of 2026 but said group production will land in the lower half of its guidance range. The shares fell sharply in London.
The results statement came out at 7am, before the market opened. The shares opened at 3,963p against a previous close of 4,127p and were down 6.3% at 3,867p by 11:31 UK time, after touching 3,709p. The company reports in US dollars; the shares trade in pence.
Free cash flow, the operating cash left after investing spend, reached a record $1,023m year to date, up 50%. Adjusted EBITDA was $2,250m. The realised gold price, the average actually received, was $4,477 an ounce against $3,036 a year earlier. Third-quarter revenue was $1,108m, ahead of the roughly $1,095m average analyst forecast.
Production is the weak spot. Output was 820koz (thousand ounces) year to date, down 10% from 911koz, and third-quarter output of 256koz compared with 283koz in the second. All-in sustaining cost, the total cost of producing an ounce, was $1,866 an ounce, up 37%, including a $166 an ounce royalty impact. Third-quarter adjusted earnings per share were $1.00, down from $1.25 in the second quarter.
The group now expects the lower half of its 1,090koz to 1,265koz production range. At Mana, its Burkina Faso mine, output is expected below the low end of 155koz to 180koz, with 96koz produced so far. Underground mining has been suspended since the 28th of October after a ramp subsidence, a collapse of part of an access road. Processing is paused until the second quarter of 2027, and Mana’s 2027 guidance is due in January 2027.
There are offsets. Lafigué, its Côte d’Ivoire mine, is expected near the top of its 170koz to 195koz range, net cash is $263m against net debt of $453m a year earlier, and sustaining capital spending guidance is cut to $255m from $280m. Chief executive Ian Cockerill said:
Our strong operational performance over the first three quarters positions us on track to deliver our full-year guidance, as outperformance at Lafigué has largely offset underperformance due to stoppages at Mana.
Ian Cockerill, Chief Executive Officer, Endeavour Mining
The company said the fourth quarter is planned as its strongest operationally, with higher grades expected at Houndé, Ity and Sabodala-Massawa. Investors will now watch that catch-up, Mana and the January guidance. An investor call is scheduled for 1:30pm today.