Endomines - Finishing a solid year
Endomines H2 results were fairly in line with expectations, with main deviations relating to one-offs. Gold production is expected to increase 10-20% in 2026, in line with our expectations.
- Revenue in H2 amounted to EUR 24.0m (EUR 15.6m H2/2024), slightly above our estimate of EUR 22.7m.
- Revenue growth was supported by the growth in production growth rate of 7% during H2, combined with a significant increase in gold prices. During the year, the gold price had increased to ~4,300 USD by the end of the year from a level of around 2,600 USD at the start of the year.
- The group EBITDA in H2 was at EUR 8.7m (3.9m H2/2024), falling short of our estimate of EUR 10.2m. The difference in EBITDA was partly driven by the higher cash cost of Pampalo, at 1,563 EUR/oz compared with 1,252 EUR/oz during H2/2024. Cash costs were expected to be higher due to the acquisition of Power Minings mining operations at Pampalo, but our expectations were too optimistic.
- EBIT in H2 amounted to EUR 2.2m also lower than we estimated (Evli est. EUR 8.0m) due to lower-than-expected Pampalo EBITDA. Endomines also booked a write-down of EUR 3.9m related to the divestment of three US assets, which we had assumed to be booked at completion and as such not included.
- EBITDA from Pampalo production was at EUR 11.8m, up from EUR 6.3m during the second half of 2024. We had estimated EBITDA of EUR 12.6m for Pampalo.
- EBITDA from the company’s other functions (Karelian gold line operations, USA operations and common functions) was at EUR -3.0m (EUR -2.4m Evli est.).
- 2026 outlook: Gold production is estimated to increase by 10-20%, implying roughly 18,300-20,000 oz production. Our 19,153oz estimate is well in line with the guidance.