Endomines - Profitability topped our estimates
Endomines successfully capitalized on the increased gold market prices during the second half of the year. Pampalo's profitability exceeded our expectations due to lower-than-expected cash costs.
- Revenue in H2 amounted to EUR 15.6m (EUR 9.0m H2/23), in line with our estimate of EUR 15.4m as the production figures were already reported.
- The production growth rate of 20.7%, combined with an average gold price of 2,599 USD per ounce, contributed to the overall growth.
- The group EBITDA in H2 was at EUR 3.9m (-1.0m H2 2023), higher than our estimate of EUR 3.6m. The profitability of Pampalo’s operations developed favorably as cash cost was at 1252 USD per ounce (H2/23 1399 USD per ounce).
- EBIT in H2 amounted to EUR 2.5m higher than we expected (Evli est. EUR 2.0m) due to improved operative profitability and lower than expected depreciation.
- EBITDA from Pampalo production was at EUR 6.3m, up from EUR 0.9m during the second half of 2023. Pampalo’s profitability was impressive and above our estimate of EUR 5.5m.
- EBITDA from the company’s other functions (Karelian gold line operations, USA operations and common functions) was at EUR -2.4m (EUR -1.8m Evli est.).
- Endomines will continue negotiations regarding the company’s US assets and the goal is to find a solution as soon as possible.
- 2025 outlook: Gold production will be between 16,000 – 22,000 ounces. Production growth is estimate to be greater during H2/25.
- Our current estimate is at 18,200 ounces.