ENDEAVOUR REPORTS ROBUST H1-2022 RESULTS; INCREASES HALF YEAR DIVIDEND BY 43% TO $100M Production of 702koz at an AISC of $900/oz l Operating cash flow of $553m l Net cash position increased by $141m OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)
NEWS RELEASE – LSE & TSX: EDV All amounts in US$
ENDEAVOUR REPORTS ROBUST H1-2022 RESULTS; INCREASES HALF YEAR DIVIDEND BY 43% TO $100M Production of 702koz at an AISC of $900/oz l Operating cash flow of $553m l Net cash position increased by $141m OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)
- Well positioned to achieve FY-2022 production guidance of 1,315-1,400koz at an AISC of $880-930/oz given robust H1-2022 production of 702koz at an AISC of $900/oz
- Q2-2022 production amounted to 345koz at an AISC of $954/oz as the cost base benefitted from favourable EUR:USD currency variation which offset higher fuel costs
- Adjusted Net Earnings of $245m (or $0.99/sh) for H1-2022; $111m (or $0.45/sh) for Q2-2022
- Operating Cash Flow of $553m (or $2.22/sh) for H1-2022; $253m (or $1.02/sh) for Q2-2022
- Net cash position increased by $141m during H1-2022 to $217m after $108m paid in shareholder returns
SHAREHOLDER RETURNS PROGRAMME
- H1-2022 dividend of $100m declared, up 43% over H1-2021; minimum FY-2022 dividend increased by 33% to $200m
- Share buyback programme continued with $38m worth of shares repurchased in H1-2022, including $7m in Q2-2022
- H1-2022 shareholder returns represent $197/oz produced, 10% of revenue, 25% of operating cash flow, 56% of adj. net earnings for the period or an implied annualized yield of 4.9%
- Cumulative shareholder returns since early 2021 stand at $476m, inclusive of the H1-2022 dividend
ORGANIC GROWTH
- Sabodala-Massawa expansion on track with 37% of capital committed; DFS underway for Lafigué greenfield project
- Strong H1-2022 exploration effort with $44m spent, including $26m in Q2-2022; resource updates expected in late 2022
London, 3 August 2022 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased to announce its operating and financial results for Q2-2022 and H1-2022, with highlights provided in Table 1 below.
Table 1: Highlights for Continuing Operations1 THREE MONTHS ENDED SIX MONTHS ENDED
| All amounts in US$ million unless otherwise specified | 30 June 2022 | 31 March 30 June 2021 2022 | 30 June 2022 | 30 June 2021 | Δ H1-2022 vs. H1-2021 |
|---|---|---|---|---|---|
| OPERATING DATA Gold Production, koz All-in Sustaining Cost2, $/oz Realised Gold Price, $/oz | 357 384 848 839 1,911 1,795 | 697 838 1,779 | |||
| 345 | 702 | +1% +7% +5% | |||
| 954 | 900 | ||||
| 1,832 | 1,872 | ||||
| CASH FLOW Operating Cash Flow before Changes in WC Operating Cash Flow before Changes in WC2, $/sh Operating Cash Flow Operating Cash Flow2, $/sh | 370 269 1.49 1.07 299 284 1.21 1.13 | 502 2.18 488 2.12 | +24% +15% +13% +5% | ||
| 253 | 622 | ||||
| 1.02 | 2.50 | ||||
| 253 | 553 | ||||
| 1.02 | 2.22 | ||||
| PROFITABILITY Net Earnings/(Loss) Attributable to Shareholders Net Earnings/(Loss), $/sh Adj. Net Earnings Attributable to Shareholders2 Adj. Net Earnings2, $/sh EBITDA2 Adj. EBITDA2 | (57) 126 (0.23) 0.50 134 175 0.54 0.69 218 344 398 403 | 210 0.91 282 1.22 646 728 | |||
| 189 | 133 | (37)% (42)% (13)% (19)% (2)% | |||
| 0.76 | 0.53 | ||||
| 111 | 245 | ||||
| 0.45 | 0.99 | ||||
| 417 | 635 | ||||
| 329 | 726 | 0% | |||
| SHAREHOLDER RETURNS Shareholder dividends paid Share buybacks | 70 — 31 59 | 60 59 | +17% | ||
| — | 70 | ||||
| 7 | 38 | (36)% | |||
| FINANCIAL POSITION HIGHLIGHTS (Net Cash)/Net Debt2 (Net Cash), Net Debt / Adjusted EBITDA (LTM) ratio2 | (167) 77 (0.11) 0.07 | 77 0.07 | n.a. n.a. | ||
| (217) | (217) | ||||
| (0.14) | (0.14) |
1From Continuing Operations excludes the Karma mine which was divested on 10 March 2022 and the Agbaou mine which was divested on 1 March 2021. 2This is a non-GAAP measure. Refer to the non-GAAP measure section in this press release and in the Management Report.
Management will host a conference call and webcast today, Wednesday 3 August, at 8:30 am EDT / 1:30 pm BST. For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release.
Sebastien de Montessus, President and CEO, commented: “We are very pleased with our solid operating and financial performance over the first six months of the year, which has resulted in robust operating cash flow generation of more than $550 million. We are very proud to be on track to achieving both production and AISC guidance for the tenth consecutive year, despite the macro environment, which is a reflection of the resilience of our business and the strong dedication of our team.
This strong performance allowed us to continue to execute our capital allocation strategy, which is focused on strengthening our balance sheet, maximising shareholder returns and investing in our growth. As such, during the period, we continued to strengthen our balance sheet, increasing our net cash position by $141 million to reach $217 million, while also returning $108 million, in the form of dividend and buybacks, to shareholders.
In line with our strong shareholder returns commitment, we are pleased to declare a H1-2022 dividend of $100 million, which represents a 43% increase over last year’s dividend and is reflective of our improved financial position and confidence in our business outlook. Moreover, we are now targeting a minimum dividend of $200 million for the year, which is $50 million more than the initial minimum commitment. We are also continuing to supplement our shareholder returns with share buybacks, having completed $38 million over the last six months and $176 million since launching the programme in April 2021.
Our capital returns programme has returned an impressive $476 million to shareholders since early 2021, inclusive of the H1-2022 dividend, which represents approximately 10% of our current market capitalisation.
Looking ahead, we are excited with our growth prospects, with the priority being the Sabodala-Massawa plant expansion which is progressing on-schedule and on budget, with already over a third of the total capital committed. We have also continued to refine the DFS for our Lafigué project which is expected to be published in late Q3-2022. While, on the exploration front, we have continued to aggressively drill, which has resulted in a number of new discoveries, for which we expect to publish resource updates later in the year.
Given our strong performance across the business, we have significant momentum going into the second half of the year and are well positioned to continue to generate value for our stakeholders over the long term.”
UPCOMING CATALYSTS
The key upcoming expected catalysts are summarised in the table below.
Table 2: Key Upcoming Catalysts
TIMING CATALYST
Q3-2022 Shareholder returns Payment of H1-2022 dividend Q3-2022 Lafigué deposit - Fetekro property Completion of Definitive Feasibility Study Mana Wona underground first stope production Q3-2022 H2-2022 Exploration Greenfield exploration programme progress update H2-2022 Sabodala-Massawa Expansion project progress update Exploration results and resource update H2-2022 Exploration
OPERATING SUMMARY
- Continued strong safety record for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) of 0.13 for continuing operations for the trailing twelve months ending 30 June 2022.
- The Group is well positioned to achieve its FY-2022 production and all-in sustaining costs (“AISC”) guidance for continuing operations of 1,315-1,400koz at an AISC of $880-930 per ounce.
- H1-2022 production from continuing operations amounted to 702koz, an increase of 6koz over H1-2021 due to full period consolidation of production from Sabodala-Massawa as well as improved performance at Houndé (due to improved mining flexibility with the addition of the Kari mining areas), offsetting lower production from Boungou and Wahgnion. H1-2022 AISC from continuing operations increased by $62 per ounce over H1-2021 with higher AISC at Boungou, Ity, and Wahgnion, offset by lower AISC at Mana and Sabodala-Massawa.
- Q2-2022 production from continuing operations amounted to 345koz, a decrease of 12koz over Q1-2022, as a result of lower production at Sabodala-Massawa and Boungou in line with the mining sequence. This was slightly offset by higher production at Houndé and Ity due to high grade ore in the feed from the Kari Pump and Le Plaque pits respectively. Q2-2022 AISC from continuing operations increased in line with guidance by $106 per ounce over Q1-2022 to $954 per ounce mainly due to stripping activity and mine scheduling ahead of the rainy season while Endeavour’s cost base benefitted from favourable exchange rate variations, long-term supply contracts, production and cost optimisation initiatives, and the benefit of regulated in-country fuel pricing mechanisms. As expected, key drivers for the higher AISC were: scheduled increased operating and sustaining capital costs associated with mining and processing increased proportions of fresh rock sourced from deeper elevations in the Boungou, Sabodala-Massawa and Wahgnion pits (approx. impact of $61 per ounce), higher
fuel prices (approx. impact of $39 per ounce), lower volumes of gold ounces sold (approx. impact of $38 per ounce), and increased explosive prices (approx. impact of $13 per ounce). These factors were partially offset by foreign exchange benefits as the euro continued to decline against the dollar (approx. impact of $37 per ounce) and reduced royalties (approx. impact of $8 per ounce) due to the lower realised gold price.
Table 3: Group Production and FY-2022 Guidance THREE MONTHS ENDED SIX MONTHS ENDED
| All amounts in koz, on a 100% basis | 30 June 2022 | 31 March 2022 | 30 June 2021 | 30 June 2022 | 30 June 2021 | 2022 FULL-YEAR GUIDANCE | ||
|---|---|---|---|---|---|---|---|---|
| Boungou Houndé Ity Mana Sabodala-Massawa1 Wahgnion1 | 27 87 77 | 34 73 72 | 39 | 61 160 149 | 99 146 150 | 130 260 255 170 360 140 | — — — — — — | 140 275 270 190 375 150 |
| 80 | ||||||||
| 79 | ||||||||
| 55 | 53 49 | 107 169 55 | 102 135 66 | |||||
| 73 27 | 96 29 | 96 | ||||||
| 41 | ||||||||
| PRODUCTION FROM CONTINUING OPERATIONS | 345 | 357 | 384 | 702 | 697 | 1,315 | — | 1,400 |
| Karma2 Agbaou3 | — | 10 | 25 | 10 | 47 | |||
| — | — — | — | 13 | |||||
| GROUP PRODUCTION | 345 | 367 | 409 | 712 | 756 |
1Included for the post acquisition period commencing 10 February 2021. 2Divested on 10 March 2022. 3Divested on 1 March 2021.
Table 4: Group All-In Sustaining Costs and FY-2022 Guidance THREE MONTHS ENDED SIX MONTHS ENDED
| All amounts in US$/oz | 30 June 2022 | 31 March 2022 | 30 June 2021 | 30 June 2022 | 30 June 2021 | 2022 FULL-YEAR GUIDANCE | ||
|---|---|---|---|---|---|---|---|---|
| Boungou Houndé Ity Mana Sabodala-Massawa1 Wahgnion1 Corporate G&A | 1,062 | 901 950 | 971 791 | 793 787 796 | 900 875 850 | — — — | 1,000 925 900 | |
| 807 | 771 741 | |||||||
| 895 | 728 806 | 813 | ||||||
| 905 | 1,000 578 1,351 | 1,016 | 953 | 982 675 903 | 1,000 675 1,050 | — — — 30 | 1,100 725 1,150 | |
| 779 | 637 | 666 1,558 | ||||||
| 1,788 | 980 | |||||||
| 20 | 39 27 | 30 | 30 | |||||
| AISC FROM CONTINUING OPERATIONS | 954 | 848 839 | 900 | 838 | 880 | — | 930 | |
| Karma2 Agbaou3 | — | 1,504 1,074 | 1,504 | 1,120 | ||||
| — | — — | — | 1,131 | |||||
| GROUP AISC | 954 | 866 853 | 909 | 860 |
1Included for the post acquisition period commencing 10 February 2021. 2Divested on 10 March 2022. 3Divested on 1 March 2021.
- The Group sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $169.0 million as $68.8 million was incurred in H1-2022, of which $38.0 million was incurred in Q2-2022 and mainly related to waste stripping activities at Houndé, Ity and Sabodala-Massawa as well as fleet upgrades at Houndé, Sabodala-Massawa and Wahgnion.
- The Group non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $204.0 million as $95.1 million was incurred in H1-2022, of which $53.2 million was incurred in Q2-2022 and mainly related to tailings storage facilities (“TSF”) at Houndé, Ity and Mana, pre-stripping activities at Boungou and infrastructure projects at Mana, Sabodala-Massawa and Wahgnion.
- The Group growth capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $121.0 million as $42.2 million was incurred in H1-2022, of which $34.3 million was incurred in Q2-2022 mainly related to the Sabodala- Massawa expansion project and the Lafigué project DFS and its associated establishment works.
SHAREHOLDER RETURNS PROGRAMME
- In line with its strong shareholder returns commitment, Endeavour is pleased to declare a H1-2022 dividend of $100 million, or $0.40 per share, which represents a 43% increase over the H1-2021 dividend and is reflective of its improved financial position and confidence in its business outlook. Endeavour’s H1-2022 dividend will be paid on 28 September 2022 to shareholders of record on 2 September 2022, the last day for currency election will be 9 September 2022.
- Endeavour is also pleased to announce an increase of its FY-2022 minimum dividend commitment by $50 million to $200 million, in line with its minimum progressive dividend policy, which is to be supplemented with additional dividends and share buybacks provided the gold price remains above $1,500 per ounce and the Group’s leverage remains below 0.5x Net Debt/adjusted EBITDA.
- In addition, shareholder returns continued to be supplemented through the Company’s share buyback programme. During H1-2022, a total of $37.8 million or 1.6 million shares were repurchased, of which $6.7 million or 0.3 million shares were repurchased in Q2-2022. Since the commencement of the buyback programme on 9 April 2021, a total of $176.0 million, or 7.6 million shares have been repurchased.
- H1-2022 shareholder capital returns represent $197 per ounce produced, 10% of revenue, 25% of operating cash flow, 56% of adjusted net earnings for the period or an implied annualised yield of 4.9% based on the TSX closing share price on 29 July 2022.
- As shown in the table below, Endeavour has returned $476 million to shareholders in the form of dividends and buybacks since its shareholder returns programme began in late 2020, inclusive of the H1-2022 dividend, which represents $216 million more than its minimum commitment for the period.
Table 5: Actual Shareholder Returns vs. Minimum Commitment
| All amounts in US$ million | MINIMUM DIVIDEND COMMITMENT | ACTUAL SHAREHOLDER RETURNS DIVIDENDS BUYBACKS TOTAL DECLARED COMPLETED RETURNS | SUPPLEMENTAL SHAREHOLDER RETURNS | ||
|---|---|---|---|---|---|
| FY-2020 FY-2021 H1-2022 | 60 125 75 | 60 — 60 140 138 278 100 38 138 | — | ||
| +153 | |||||
| +63 | |||||
| TOTAL | 260 | 300 | 176 | 476 | +216 |
- Concurrent with the H1-2022 dividend, Endeavour is pleased to launch a Distribution Reinvestment Plan (“DRIP”) to offer existing shareholders the opportunity, at their own election, to increase their investment in Endeavour by receiving dividend payments in the form of common shares in the Company.
- Participation in the DRIP is optional and available to shareholders, subject to local law, who hold shares on the London Stock Exchange or on the Toronto Stock Exchange. Participants may opt to reinvest all, or any portion of their dividends in the DRIP. The enrolment form will be distributed to shareholders by Computershare on 3 August 2022 and will be made available on Endeavour’s website, alongside the DRIP circular, which will also be submitted to the National Storage Mechanism in accordance with Listing Rule 9.6.1. The last election date for participation in the H1-2022 DRIP for beneficial shareholders who hold shares through the Canadian Depository System (“CDS”) will be 2 September 2022, for all other eligible shareholders the last election date will be 7 September 2022.
- In accordance with the DRIP, Computershare will use cash dividends payable to participating shareholders to purchase common shares in the open market on the Toronto Stock Exchange and the London Stock Exchange at the prevailing market price.
CASH FLOW AND LIQUIDITY SUMMARY
The table below presents the cash flow and net debt position for Endeavour for the three month periods ended 30 June 2022, 31 March 2022, and 30 June 2021 and the six month periods ending 30 June 2022 and 30 June 2021, with accompanying explanations below.
Table 6: Cash Flow and Net Debt Position THREE MONTHS ENDED SIX MONTHS ENDED
| All amounts in US$ million unless otherwise specified | 30 June 2022 | 31 March 2022 | 30 June 2021 | 30 June 2022 | 30 June 2021 | |
|---|---|---|---|---|---|---|
| Net cash from/(used in), as per cash flow statement: Operating cash flows before changes in working capital from continuing operations Changes in working capital Cash generated from discontinued operations | 370 269 (70) 15 5 16 | 502 (14) 10 | ||||
| 253 | 622 | |||||
| 1 | (70) 5 | |||||
| — | ||||||
| Cash generated from operating activities [1] Cash used in investing activities [2] Cash used in financing activities [3] Effect of exchange rate changes on cash | 253 | 304 301 (94) (137) (50) (192) (20) (7) | 558 (238) (76) (53) | 498 (243) (127) (11) | ||
| (145) | ||||||
| (26) | ||||||
| (33) | ||||||
| INCREASE/(DECREASE) IN CASH | 50 140 (35) | 191 118 | ||||
| Cash position at beginning of period | 1,047 | 906 868 | 906 | 715 | ||
| CASH POSITION AT END OF PERIOD | [4] | 1,097 1,047 | 833 | 1,097 833 | ||
| Principal amount of Senior Notes Principal amount of Convertible Notes Drawn portion of Revolving Credit Facility Drawn portion of Corporate Loan Facility | (500) | (500) — (330) (330) (50) — — (580) | (500) (330) (50) | — (330) — (580) | ||
| (330) | ||||||
| (50) — | ||||||
| — | ||||||
| NET CASH / (NET DEBT) | [5] | 217 | 167 | (77) | 217 | (77) |
| (Net cash), Net debt / Adjusted EBITDA (LTM) ratio1 [5] | (0.14) x | (0.11) x 0.07 x | (0.14) x | 0.07 x |
1Net debt, Adjusted EBITDA, and cash flow per share are Non-GAAP measures. Refer to the non-GAAP measure section in this press release and in the Management Report.
NOTES:
1) Operating cash flows decreased by $51.1 million from $304.3 million (or $1.23 per share) in Q1-2022 to $253.2 million (or $1.02 per share) in Q2-2022 due to a decrease in the realised gold price, a decrease in gold sales and the expected higher costs, which were partially offset by a lower working capital outflow.
Operating cash flows increased by $59.2 million from $498.3 million (or $2.17 per share) in H1-2021 to $557.5 million (or $2.24 per share) in H1-2022 due to an increase in the realised gold price, which was offset by higher working capital outflows and lower gold sales.
Notable variances are summarised below:
- Changes in working capital were negligible in Q2-2022, an increase of $70.9 million over Q1-2022, as an increase in inventories was largely offset by reductions in prepaid expenses and other payables.
Working capital was an outflow of $69.5 million in H1-2022, an increase of $55.2 million over H1-2021 due to an increase in trade receivables at Sabodala-Massawa as VAT receivable increased following the startup of mining at the Massawa pit and due to increased receivables from gold sales, offset slightly by a decrease in receivables at Mana and Boungou as a result of VAT received during H1-2022.
- Gold sales from continuing operations decreased from 359koz in Q1-2022 to 344koz in Q2-2022 due primarily to decreases in production at Sabodala-Massawa and Boungou. The realised gold price from continuing operations for Q2-2022 was $1,832 per ounce compared to $1,911 per ounce for Q1-2022. Total cash cost per ounce increased from $723 per ounce in Q1-2022 to $824 per ounce in Q2-2022, primarily due to the expected higher fuel and explosive costs.
Gold sales from continuing operations decreased from 736koz in H1-2021 to 703koz in H1-2022 primarily due to lower sales at Boungou, Ity and Wahgnion, partially offset by higher sales at Sabodala-Massawa and Houndé. The realised gold price from continuing operations for H1-2022 was $1,872 per ounce compared to $1,779 per ounce for H1-2021. Total cash cost per ounce increased from $715 per ounce in H1-2021 to $773 per ounce in H1-2022.
- Income taxes paid increased by $35.5 million from $28.7 million in Q1-2022 to $64.2 million in Q2-2022, due to an increase in taxes paid at Ity by $19.8 million from $0.2 million in Q1-2022 to $20.0 million in Q2-2022 and an increase at Houndé by $9.0 million from $8.8 million in Q1-2022 to $17.8 million in Q2-2022 which was largely related to the final tax payments for the last financial year and the timing of payments at Houndé and Ity.
Income taxes paid decreased by $35.4 million from $128.3 million in H1-2021 to $92.9 million in H1-2022 largely due to lower associated production at Boungou, a non-recurring charge at Ity in H1-2021 related to a customs audit and lower withholding taxes.
2) Cashflows used in investing activities increased by $50.8 million from $93.8 million in Q1-2022 to $144.6 million in Q2-2022 due to the ramp up at the Sabodala-Massawa expansion and increased capital expenditure at Sabodala- Massawa, Houndé, Ity, Mana and Wahgnion. Cashflows used in investing activities for the HY-2022 were stable at $238.4 million in H1-2022.
- Sustaining capital from continuing operations increased from $30.8 million in Q1-2022 to $38.0 million in Q2-2022 primarily due to increased capitalised waste stripping activity at Houndé, Ity and Wahgnion.
Sustaining capital from continuing operations was relatively consistent with the prior period at $68.8 in H1-2022.
- Non-sustaining capital from continuing operations increased from $41.9 million in Q1-2022 to $53.2 million in Q2-2022, due to TSF raise activities at Mana, Ity and Wahgnion, underground development at Mana, and engineering works at the recyanidation project at Ity, which were partially offset by decreased spending at Houndé and Boungou. Non-sustaining capital from continuing operations decreased from $112.2 million in H1-2021 to $95.1 million in H1-2022, driven largely by a decrease at Ity where H1-2021 included spending for the Le Plaque haul road construction and at Mana where H1-2021 spending included increased waste development spending coupled with spending on the TSF raise.
- Growth capital spend increased as expected from $7.9 million in Q1-2022 to $34.3 million in Q2-2022 and primarily relates to earthworks and early construction activities at the Sabodala-Massawa Expansion project and the DFS for the Lafigué project and infrastructure upgrades.
Growth capital was relatively stable at $42.2 million in H1-2022 compared to the prior period as the prior period incurred payment for the purchase of an additional stake in the Lafigué project property as announced on 21 December 2020.
3) Cash flows used in financing decreased by $24.2 million from $50.1 million in Q1-2022 to $25.9 million in Q2-2022. Financing activities for Q2-2022 primarily consisted of payments of financing and other fees of $14.0 million, payments for the acquisition of the Company’s own shares of $6.7 million, and repayment of finance and lease obligations of $5.2 million.
Cash flows used in financing decreased by $51.0 million from $127.0 million in H1-2021 to $76.0 million in H1-2022 largely due to the net repayment of $120.0 million of long-term debt in H1-2021.
4) At period-end, Endeavour’s liquidity remained strong with $1,096.8 million of cash on hand and $450.0 million undrawn under the Revolving Credit Facility.
5) Endeavour’s net cash position increased by $50.2 million during Q2-2022 to $216.8 million, which provides the financial flexibility to continue to supplement shareholder returns while maintaining headroom to fund organic growth.
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three and six month periods ending 30 June 2022, with accompanying notes below.
Table 7: Earnings from Continuing Operations
THREE MONTHS ENDED SIX MONTHS ENDED
| All amounts in US$ million unless otherwise specified | 30 June 2022 | 31 March 2022 | 30 June 2021 | 30 June 2022 | 30 June 2021 | |
|---|---|---|---|---|---|---|
| Revenue [8] Operating expenses [9] Depreciation and depletion [9] Royalties [10] | 630 (251) (140) (38) | 686 709 (218) (258) (152) (145) (41) (40) | 1,316 | 1,310 (510) (262) (81) | ||
| (469) (292) (79) | ||||||
| Earnings from mine operations | 201 | 276 | 267 | 476 | 457 | |
| Corporate costs [11] Acquisition and restructuring costs Share-based compensation Other expense Exploration costs | (7) (1) (3) | (14) (16) — (15) (8) (10) (2) (8) (7) (6) | (21) (2) | (30) (27) (18) (11) (16) | ||
| (11) | ||||||
| (11) | (13) | |||||
| (8) | (15) | |||||
| Earnings from operations | 171 | 247 | 213 | 415 | 356 | |
| Gain/(loss) on financial instruments [12] Finance costs | 107 | (179) (13) (15) (14) | (72) | 29 (26) | ||
| (17) | (32) | |||||
| Earnings before taxes | 261 51 186 | 312 | 359 | |||
| Current income tax expense [13] Deferred income tax recovery/(expense) [14] | (65) 8 | (75) (44) (11) 7 | (139) | (116) 13 | ||
| (3) | ||||||
| Net comprehensive earnings/(loss) from continuing operations | [15] | 205 | (35) | 148 | 169 | 256 |
| Add-back adjustments [16] | (70) | 192 55 | 122 | 90 | ||
| Adjusted net earnings from continuing operations | [17] | 134 | 157 203 | 292 | 346 | |
| Portion attributable to non-controlling interests | 23 | 24 28 | 47 | 64 | ||
| Adjusted net earnings from continuing operations attributable to shareholders of the Company | [17] | 111 | 134 | 174 | 245 | 282 |
| Earnings/(loss) per share from continuing operations Adjusted net earnings per share from continuing operations | 0.76 | (0.24) 0.50 0.54 0.69 | 0.53 | 0.91 1.22 | ||
| 0.45 | 0.99 |
NOTES:
8) Revenue decreased by $56.6 million from $686.2 million in Q1-2022 to $629.6 million in Q2-2022 mainly due to lower production and sales from Sabodala-Massawa and Boungou, in line with the mining sequence, in addition to a lower realised gold price in Q2-2022 of $1,832 per ounce compared to $1,911 per ounce for Q1-2022.
Revenue for H1-2022 increased by $5.7 million compared to H1-2021 due to the higher realised gold price of $1,872 per ounce in H1-2022, compared to $1,779 per ounce in H1-2021, which was offset slightly by lower gold sold in H1-2022.
9) Operating expenses increased by $33.7 million from $217.5 million in Q1-2022 to $251.2 million in Q2-2022 due to higher AISC due to the expected increased costs associated with fuel and explosives, as well as increased levels of stripping activity during the quarter, ahead of the wet season. Depreciation and depletion decreased by $12.2 million from $152.0 million in Q1-2022 to $139.8 million in Q2-2022 mainly due to lower levels of production at the Sabodala-Massawa and Boungou mines.
Operating expenses for the H1-2022 decreased by $41.4 million compared to H1-2021, primarily due to a decrease in inventory adjustments at Sabodala-Massawa and the expense related to the change in inventory associated with gold sold in excess of gold produced in H1-2021 following the Teranga acquisition. Depreciation and depletion for the H1-2022 increased by $30.3 million due to slightly higher production compared to the same period last year.
10)Royalties decreased from $41.0 million in Q1-2022 to $38.1 million in Q2-2022 despite the higher realised gold price, due to lower levels of gold sales in Q2-2022. Royalties decreased slightly from $81.1 million in H1-2021 to $79.1 million in H1-2022 due to lower gold sales, despite the higher realised gold price.
11)Corporate costs decreased from $14.0 million in Q1-2022 to $6.8 million in Q2-2022 due to lower costs associated with employee and professional services, partially due to the payment of annual employee bonuses in Q1-2022. Corporate costs also decreased from $30.2 million in H1-2021 to $20.8 million in H1-2022 due to the cessation of costs associated with corporate integration and the LSE listing.
12)The loss on financial instruments of $178.8 million in Q1-2022 reversed to a gain of $106.8 million in Q2-2022 due predominantly to an unrealised gain on gold forward sales of $72.8 million, an unrealised gain on gold collars of $33.5 million, an unrealised gain on the revaluation of the conversion option on the convertible notes of $31.7 million and a gain on the change in fair value of the call rights of $5.6 million, which was offset by a foreign exchange loss of $38.5 million.
The gain on financial instruments of $28.9 million in H1-2021 decreased to a loss of $72.0 million in H1-2022 due to a loss on foreign exchange of $58.0 million, an unrealised loss on gold collars of $10.3 million, an unrealised loss on forward sales of $6.4 million, a realised loss on forward sales $5.6 million, a loss on the fair value of the redemption of senior notes $4.6 million and a loss on change in fair value of warrant liabilities of $3.3 million, which was slightly offset by an unrealised gain on the revaluation of the conversion option of the convertible notes of $13.7 million.
As previously disclosed, Endeavour entered into a revenue protection programme for a portion of its production across FY-2022 and FY-2023, to provide greater cash flow visibility during its investment phase. This was structured as an upfront low premium collar with a put price of $1,750 per ounce and a call price of $2,100 per ounce for 75koz of production per quarter, from Q1-2022 until Q4-2023. In addition, the Company entered into forward sales contracts for FY-2022 and FY-2023, for which 65koz at an average gold price of $1,834 per ounce and 99koz at an average gold price of $1,834 per ounce were financially delivered in Q1-2022 and Q2-2022 respectively. Forward contracts scheduled to be settled in Q3-2022 amount to 95koz at an average gold price of $1,834 per ounce, while 90koz at an average gold price of $1,842 per ounce are scheduled to be settled in Q4-2022. For FY-2023, forward sales contracts amount to 120koz, or 30koz ounces per quarter at an average gold price of $1,828 per ounce.
13)Current income tax expense decreased by $10.0 million from $74.7 million in Q1-2022 to $64.7 million in Q2-2022 largely due to a decrease in taxes at Boungou due to lower levels of production. Current income taxes increased by $23.1 million from $116.3 million in H1-2021 to $139.4 million in H1-2022 due to an increase in tax expense at Sabodala-Massawa as a result of the start-up of mining at the Massawa pits as well as an increase in taxable profit at Ity due to earnings generated at Floleu, which includes the Le Plaque pit, which was partially offset by a decrease in tax expense at Boungou associated with lower levels of production.
14)Deferred income tax recovery increased by $19.4 million from an expense $11.2 million in Q1-2022 to a recovery of $8.2 million in Q2-2022 due to timing difference between the tax base and the accounting base of assets and liabilities at Ity, Houndé and Mana. In H1-2022, a deferred income tax expense of $3.0 million compared to a deferred tax recovery of $13.4 million in H1-2021. In H1-2021, the Group benefitted from deferred tax recoveries at Sabodala-Massawa associated with the unwinding of the fair value adjustment to inventory. The absence of these recoveries in H1-2022 contributed to the decreased deferred tax tax expense for H1-2022.
15)Net comprehensive earnings from continuing operations of $204.5 million was recorded for Q2-2022 compared to a net comprehensive loss of $35.2 million in Q1-2022. The increased earnings are largely attributed to strong earnings from mine operations coupled with a gain on financial instruments associated with unrealised gains associated with fair value adjustments on the gold collars and forward contracts, as well as the conversion feature on the convertible notes. For H1-2022, net comprehensive earnings of $169.3 million was recognised, a decrease on the earnings of $256.2 million recognised in H1-2021 due to the loss on financial instruments of $72.0 million recorded in H1-2022.
16)For Q2-2022, adjustments mainly included a gain on financial instruments of $106.8 million largely related to the unrealised gain on forward sales, non-cash, tax and other adjustments of $24.8 million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances and non-cash fair value adjustments to inventory associated with the purchase price allocation of Teranga, other expenses of $10.6 million and acquisition and restructuring costs of $1.3 million. For H1-2022, adjustments mainly included a loss on financial instruments of $72.0 million largely related to the unrealised loss on forward sales, non-cash, tax and other adjustments of $36.3 million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances and non-cash fair value adjustments to inventory associated with the purchase price allocation of Teranga, other expenses of $12.6 million and acquisition and restructuring costs of $1.5 million, which were slightly offset by net earnings from the discontinued Karma mine of $14.8 million.
17)Adjusted net earnings attributable to shareholders for continuing operations decreased by $22.3 million to $111.3 million (or $0.45 per share) in Q2-2022 compared to $133.6 million (or $0.54 per share) in Q1-2022 due largely to lower earnings from mining operations as a result of lower group production at higher AISC during the quarter. In H1-2022 adjusted net earnings attributable to shareholders for continuing operations decreased to $244.9 million (or $0.99 per share) from $281.5 million (or $1.22 per share) in H1-2021 due to higher income tax expense due to higher taxes at Mana and Sabodala-Massawa, which was partially offset by higher earnings from mine operations and lower acquisition and restructuring costs during H1-2022.
OPERATING ACTIVITIES BY MINE
Boungou Gold Mine, Burkina Faso
Table 8: Boungou Performance Indicators
| For The Period Ended | Q2-2022 | Q1-2022 | Q2-2021 | H1-2022 | H1-2021 |
|---|---|---|---|---|---|
| Tonnes ore mined, kt Total tonnes mined, kt Strip ratio (incl. waste cap) Tonnes milled, kt Grade, g/t Recovery rate, % PRODUCTION, KOZ | 272 5,115 | 252 6,334 24.13 349 3.03 95 34 | 350 8,346 | 524 11,448 | 596 15,018 24.18 651 4.65 95 99 |
| 17.81 | 22.85 | 20.85 | |||
| 366 | 336 | 715 | |||
| 2.47 | 3.84 | 2.76 | |||
| 93 | 95 | 94 | |||
| 27 | 39 | 61 | |||
| Total cash cost/oz AISC/OZ | 996 | 848 901 | 714 | 912 | 657 793 |
| 1,062 | 950 | 971 |
Q2-2022 vs Q1-2022 Insights
- As guided, production decreased from 34koz in Q1-2022 to 27koz in Q2-2022, due to a lower processed grade and lower gold recovery rate, which was partially offset by higher mill throughput.
- Total tonnes mined decreased and tonnes of ore mined increased as ore was mainly sourced from the East pit and low grade stockpiles, as pre-stripping activities continued in the West pit during the quarter.
- Tonnes milled increased slightly as effective fragmentation and increases in mill availability and utilisation improved processing of crushed ore stockpiles which continued to supplement the mill feed, allowing for a stable ore feed.
- Processed grade decreased as ore was sourced from the lower grade East Pit, in line with the mine sequence, supplemented by low grade stockpiles.
- Recovery rates decreased slightly due to the expected lower recovery rates of ore sourced from the East pit.
- AISC increased from $901 per ounce in Q1-2022 to $1,062 per ounce in Q2-2022 due to the decrease in processed grade and an increase in unit mining costs due to the expected increases in fuel and explosive costs.
- Sustaining capital expenditure of $1.8 million in Q2-2022 was consistent with Q1-2022 and primarily related to mining infrastructure, advanced grade control drilling at the East pit and spare parts.
- Non-sustaining capital expenditure decreased from $9.2 million in Q1-2022 to $8.3 million in Q2-2022 and primarily related to a decrease in pre-stripping activity at the West Pit.
H1-2022 vs H1-2021 Insights
- Production decreased from 99koz in H1-2021 to 61koz in H1-2022 primarily due to lower processed grades in H1-2022 compared to H1-2021, when higher grade stockpiles supplemented higher grade ore sourced from the West pit.
- AISC increased from $793 per ounce in H1-2021 to $971 per ounce in H1-2022 as a result of the decrease in gold sold volumes and higher unit mining costs driven in part by the expected increases in fuel and explosive costs, partially offset by lower sustaining capital.
2022 Outlook
- Given the slight delay in progressing the pre-stripping activity at the West pit, Boungou is expected to achieve the low-end of its FY-2022 production guidance of 130—140koz with AISC expected to achieve the guided $900—1,000 per ounce range in FY-2022.
- In H2-2022, waste extraction is expected to continue in the West, East and West Flank pits, while ore is expected to be sourced mainly from the West pit following completion of pre-stripping activities in H1-2022. Mill throughput is expected to increase over the upcoming quarters, while grades are expected to remain flat as the higher grade ore from the West pit is expected to be blended with lower grade stockpile feed.
- The sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the initial guidance of $15.0 million, of which $3.7 million has been incurred in H1-2022. In H2-2022 sustaining capital expenditure is expected to mainly relate to infrastructure and capitalised waste stripping activity at the West pit.
- The non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the initial guidance of $19.0 million, of which $17.5 million has been incurred in H1-2022. In H2-2022 non-sustaining capital expenditure is expected to mainly relate to the East pit phase 1 cut back.
Houndé Gold Mine, Burkina Faso
Table 9: Houndé Performance Indicators
| For The Period Ended | Q2-2022 | Q1-2022 | Q2-2021 | H1-2022 | H1-2021 |
|---|---|---|---|---|---|
| Tonnes ore mined, kt Total tonnes mined, kt Strip ratio (incl. waste cap) Tonnes milled, kt Grade, g/t Recovery rate, % PRODUCTION, KOZ | 1,330 10,725 | 1,338 12,686 8.48 1,233 1.94 95 73 | 1,399 11,717 | 2,668 23,411 | 3,024 25,654 7.48 2,254 2.17 92 146 |
| 7.06 | 7.38 | 7.77 | |||
| 1,217 | 1,108 | 2,450 | |||
| 2.42 | 2.47 | 2.18 | |||
| 94 | 92 | 94 | |||
| 87 | 80 | 160 | |||
| Total cash cost/oz AISC/OZ | 699 | 697 771 | 629 | 698 | 694 787 |
| 807 | 741 | 791 |
- Production increased from 73koz in Q1-2022 to 87koz in Q2-2022 mainly due to the higher grade ore processed.
- Tonnes of ore mined was in-line with the prior quarter as the focus on mining oxide material from the Kari Pump pit continued. Supplemental ore was sourced from the Vindaloo Main pit, where waste stripping activities began to ramp down which contributed to a reduction in total tonnes mined, and the Kari West pit, which contributed less ore tonnes as the stage 1 pit was completed ahead of the rainy season.
- Tonnes milled decreased marginally as a slightly higher proportion of transitional ore was introduced into the ore blend as ore mining ramped up at the Vindaloo Main pit towards the end of the period. This was offset slightly by the continued benefit of the optimisation of the pebble crusher.
- Average processed grades increased due to a higher proportion of high grade ore sourced from the Kari Pump pit.
- Recovery rates decreased slightly due to the slightly higher proportion of transitional ore in the ore blend.
- AISC increased from $771 per ounce in Q1-2022 to $807 per ounce in Q2-2022 primarily due to higher mining and processing unit costs due to the expected increase in fuel and explosive costs, which was partially offset by higher gold sales in the period.
- Sustaining capital expenditure increased from $5.4 million in Q1-2022 to $9.3 million in Q2-2022 due to higher waste capitalisation at the Vindaloo Main pit and mining fleet re-builds.
- Non-sustaining capital expenditure slightly decreased from $3.8 million in Q1-2022 to $3.4 million in Q2-2022 and mainly related to the TSF raise and other infrastructure in the Kari area.
- Production increased from 146koz in H1-2021 to 160koz in H1-2022 as a result of increased mill throughput and recoveries due to increased mining flexibility and availability of a higher proportion of soft oxide material from the Kari West pit. Average grade in the mill feed remained consistent, largely due to the continued contributions from the high grade Kari Pump pit.
- AISC was in-line with the prior period at $791 per ounce in H1-2022 as the greater volume of ounces sold was offset by higher sustaining capital.
2022 Outlook
- H1-2022 performance was stronger than scheduled due to the benefit of high-grade oxide ore from the Kari Pump pit. As such, Houndé is expected to continue to trend above its FY-2022 production guidance of 260—275koz, with AISC expected to achieve the guided $875—925 per ounce range.
- In H2-2022, ore is expected to be mainly sourced from the Vindaloo Main and Kari West pits, while stripping activities are conducted at the Kari Pump pit. Slightly lower ore tonnes mined, ore processed, processed grades and recovery rates are expected in the upcoming quarters primarily due to the reduction in high grade oxide ore from the Kari Pump pit.
- The sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $44.0 million, of which $14.7 million has been incurred in H1-2022. In H2-2022, sustaining capital is expected to mainly relate to spare parts and fleet re-builds as well as waste capitalisation at the Vindaloo Main pits.
- The non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $18.0 million, of which $7.2 million has been incurred in H1-2022. In H2-2022, non-sustaining capital expenditure is expected to mainly relate to pre-stripping activities at the Kari Pump stage 3 pit, resettlement and associated mine infrastructure in the Kari area and completion of a TSF wall raise.
Ity Gold Mine, Côte d’Ivoire
Table 10: Ity Performance Indicators
| For The Period Ended | Q2-2022 | Q1-2022 | Q2-2021 | H1-2022 | H1-2021 |
|---|---|---|---|---|---|
| Tonnes ore mined, kt Total tonnes mined, kt Strip ratio (incl. waste cap) Tonnes milled, kt Grade, g/t Recovery rate, % PRODUCTION, KOZ | 1,668 | 2,534 6,951 1.74 1,669 1.70 80 72 | 1,877 | 4,202 | 3,982 12,750 2.20 3,094 1.86 80 150 |
| 6,027 | 5,934 | 12,978 | |||
| 2.61 | 2.16 | 2.09 | |||
| 1,597 | 1,544 | 3,266 | |||
| 1.77 | 1.96 | 1.73 | |||
| 86 | 81 | 83 | |||
| 77 | 79 | 149 | |||
| Total cash cost/oz AISC/OZ | 804 | 707 728 | 720 | 757 | 718 796 |
| 895 | 806 | 813 |
- Production increased from 72koz in Q1-2022 to 77koz in Q2-2022 due to a higher average grade processed and improved recoveries, which was slightly offset by lower plant throughput.
- Tonnes of ore mined decreased, following the completion of the Daapleu pit stage, due to a greater focus on waste stripping activity at Bakatouo and Le Plaque, which resulted in an increased strip ratio during the quarter.
- Tonnes milled decreased due to the higher proportion of fresh and oversize materials processed which resulted in lower crushing rates and slightly lower availability, utilisation and throughput.
- Average grade milled increased slightly as high grade ore from Le Plaque supplemented the decrease in feed from Daapleu.
- Recovery rates increased due to the lower proportion of fresh, semi-refractory ore, with lower associated recoveries, in the mill feed following the completion of the current phase of mining at Daapleu, which was offset by a higher proportion of oxide ore from Le Plaque with higher associated recoveries.
- AISC increased from $728 per ounce in Q1-2022 to $895 per ounce in Q2-2022 primarily due to higher sustaining capital, higher mining and processing unit costs due to the expected increases in fuel and explosive costs, as well as higher haulage costs given the increased proportion of ore feed from Le Plaque.
- Sustaining capital expenditure increased from $1.5 million in Q1-2022 to $6.9 million in Q2-2022 and related primarily to waste stripping activities at the Walter pit, purchasing of major spare parts and infrastructure associated with dewatering boreholes.
- Non-sustaining capital expenditure increased from $5.1 million in Q1-2022 to $5.6 million in Q2-2022 and related primarily to the detailed engineering and early works for the recyanidation circuit, the TSF stage 4 lift, compensation for the TSF 2 land resettlement and the completion of the pre-leach tank and spargers.
H1-2022 vs H1-2021 Insights
- Production was in-line with the prior period at 149koz in H1-2022. Tonnes milled and recoveries increased due to the increased use of the surge bin feeder and a lower proportion of ore processed from the Daapleu pit, which has lower associated recoveries. This was offset by lower average grade processed due to less high grade ore from the Daapleu pit.
- AISC increased from $796 per ounce in H1-2021 to $813 per ounce in H1-2022 due to lower ounces sold and higher mining and processing unit costs which were driven by the expected increases in fuel and explosive costs, partially offset by lower sustaining capital in the period.
2022 Outlook
- Ity is on track to produce near the top end of the guided 255—270koz in FY-2022 at an AISC of between $850—900 per ounce.
- Over the remainder of the year, mill feed is expected to continue to be sourced from the Le Plaque, Ity, Bakatouo and Walter pits and supplemented by historic stockpiles. Following the completion of mining at the current stage of the Daapleu pit in H1-2022, recovery rates are expected to improve in H2-2022 while the average grade is expected to be slightly lower. Throughput is expected to be lower in H2-2022 as a result of the wet season impacting mill feed rate and mill utilisation.
- Sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $20.0 million, of which $8.4 million has been incurred in H1-2021. In H2-2022, sustaining capital expenditure is expected to mainly relate to waste stripping activities primarily at the Bakatouo pit, dewatering and borehole drilling and plant maintenance.
- Non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the previously provided guidance of $60.0 million, of which $10.7 million has been incurred in H1-2021. In H2-2022, non-sustaining capital is expected to mainly relate to the recyanidation circuit construction which is ramping up following completion of detailed engineering with tendering and ordering of long lead items expected early in Q3-2022.
Mana Gold Mine, Burkina Faso
Table 11: Mana Performance Indicators
| For The Period Ended | Q2-2022 | Q1-2022 | Q2-2021 | H1-2022 | H1-2021 |
|---|---|---|---|---|---|
| OP tonnes ore mined, kt OP total tonnes mined, kt OP strip ratio (incl. waste cap) UG tonnes ore mined, kt Tonnes milled, kt Grade, g/t Recovery rate, % PRODUCTION, KOZ | 376 | 470 1,644 2.50 199 622 2.94 92 53 | 549 | 846 | 904 15,720 16.38 459 1,275 2.68 91 102 |
| 837 | 7,187 | 2,482 | |||
| 1.23 | 12.09 | 1.93 | |||
| 196 | 214 | 395 | |||
| 652 | 670 | 1,274 | |||
| 2.83 | 2.49 | 2.88 | |||
| 90 | 92 | 91 | |||
| 55 | 49 | 107 | |||
| Total cash cost/oz AISC/OZ | 880 | 948 1,000 | 911 | 914 | 909 982 |
| 905 | 1,016 | 953 |
Q2-2022 vs Q1-2022 Insights
- Production of 55koz remained consistent with the prior quarter as slightly lower grades processed and lower recoveries were largely offset by higher plant throughput.
- Open pit tonnes of ore mined decreased, in line with the mine plan, as the Wona open pit was depleted. Total underground tonnes of ore mined was relatively stable as mining remained consistent at Siou underground and the Wona underground development continued to advance, with 1,582 meters developed across the two declines during Q2-2022.
- Tonnes milled increased primarily due to a higher mill utilisation.
- Average grade processed decreased slightly due to lower grades mined at the end of the Wona open pit mine life while recovery rates decreased slightly due to the Wona open pit material having lower associated recoveries.
- AISC decreased from $1,000 per ounce in Q1-2022 to $905 per ounce in Q2-2022 due to lower open pit mining costs as there was less open pit mining as the Wona open pit was depleted, slightly lower underground unit mining costs and lower sustaining capital.
- Sustaining capital expenditure decreased from $2.8 million in Q1-2022 to $1.4 million in Q2-2022 and related primarily to additional geotechnical equipment.
- Non-sustaining capital expenditure increased from $10.4 million in Q1-2022 to $15.1 million in Q2-2022 and was mainly related to the development of the Wona underground and a TSF raise.
- Production increased from 102koz in H1-2021 to 107koz in H1-2022 driven by higher grade material available from the Siou underground deposit whilst the plant performance remained consistently strong.
- AISC decreased from $982 per ounce in H1-2021 to $953 per ounce in H1-2022 primarily as a result of lower sustaining capital in the period, which was slightly offset by marginally higher mining costs in the final stages of mining at the Wona open pit.
2022 Outlook
- Mana is on track to achieve a production near the top end of its FY-2022 production guidance of 170—190koz with AISC expected to achieve the guided $1,000—1,100 per ounce.
- Open pit mining activities at the Wona open pit concluded in H1-2022 and the Maoula satellite pit is expected to commence in late H2-2022. Underground mining activities continue to progress as planned, with ongoing stope production at Siou underground and the Wona underground development advancing well with first stope production scheduled for later in the year. In the upcoming quarters, mill throughput is expected to be fairly consistent, recoveries are expected to be slightly lower due to the ore blend, while processed grades are expected to be slightly lower due the commencement of mining and processing activities from the Maoula open pit.
- The sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $7.0 million, of which $4.2 was million incurred in H1-2022. In H2-2022 sustaining capital is expected to mainly relate to plant maintenance and equipment re-builds.
- The non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $40.0 million, of which $25.5 million has been incurred in H1-2022. In H2-2022 non-sustaining capital is expected to mainly relate to the Wona underground development and associated infrastructure, Maoula infrastructure, and a TSF wall raise.