Endeavour Reports Strong H1-2026 Results
Endeavour reports record first half cash returns despite a Mana resource downgrade and rising costs highlighting operational challenges.
Endeavour Mining plc (EDV) reported record first-half 2026 Adjusted EBITDA of $1,611 million, representing a 38% year-over-year increase, alongside record Free Cash Flow of $761 million, up 48% from the prior year. Gold production for the period totaled 564,000 ounces at an All-In Sustaining Cost (AISC) of $1,871 per ounce, which equates to approximately $1,687 per ounce after royalty adjustments. The company realized an average gold price of $4,579 per ounce during the half.
Capital returns reached a record $301 million, comprising $230 million in dividends and $71 million in share buybacks. As of 30 June 2026, the company’s net cash position stood at $254 million.
Operational guidance was adjusted for the Mana mine, which is expected to fall below full-year 2026 production and cost targets due to the accelerated depletion of the Siou deposit. Consequently, full-year sustaining capital expenditure guidance was raised by $50 million to $280 million, and cash tax guidance was revised higher.
The company also completed the Definitive Feasibility Study (DFS) for the Assafou project, which indicated a Net Present Value at a 5% discount rate of $5.1 billion at a gold price of $4,000 per ounce and an Internal Rate of Return (IRR) of 55%. A Final Investment Decision (FID) is targeted by the end of 2026.
Endeavour Mining plc (EDV) released a half-year earnings update featuring strong financial results alongside operational setbacks. Record EBITDA and free cash flow were driven by the robust gold price environment and were largely anticipated by the market. However, the company faced negative operational signals, including a downgrade at the Mana mine, a $50 million increase in sustaining capital expenditure, and the absence of the Vindaloo Deeps resource.
While the company’s financial strength and the Assafou optionality remain notable, the operational misses—particularly regarding cost control and guidance execution at a single mine—have raised questions about management’s near-term delivery. The stock has already declined approximately 25% from its May highs, suggesting the market had priced in some of this weakness.
Endeavour Mining is a senior gold producer operating five mines in West Africa: Houndé (Burkina Faso), Ity and Lafigué (Côte d’Ivoire), Mana (Burkina Faso), and Sabodala-Massawa (Senegal). The company is dual-listed in London (LSE) and Toronto (TSX), with a market cap of ~$15.9bn at the current price. It has a track record of meeting guidance in 12 of the last 13 years, though the current misses dent that record.