Endomines - Progressing well despite a slight miss
Robust growth continued as expected, though profitability fell slightly short of our estimates due to our too optimistic cash cost assumption for Pampalo production.
- Revenue in H1 amounted to EUR 21.5m (EUR 13.1m H1/2024), roughly in line with our estimate of EUR 22.4m as the production figures were already reported.
- The production growth rate of 25.8%, combined with an average gold price of 3,072 USD per ounce (2,205 per ounce H1/24), contributed to the overall growth.
- The group EBITDA in H1 was at EUR 7.7m (1.9m H1 2024), falling short of our estimate of EUR 9.1m. Cash cost of Pampalo operation exceeded our estimates at EUR 1,325 per ounce.
- EBIT in H1 amounted to EUR 5.4m also lower than we estimated (Evli est. EUR 7.3m) due to lower-than-expected Pampalo EBITDA as overhead costs were roughly in line with our estimates.
- EBITDA from Pampalo production was at EUR 10.0m, up from EUR 4.0m during the first half of 2024. We had estimated EBITDA of EUR 11.4m for Pampalo.
- EBITDA from the company’s other functions (Karelian gold line operations, USA operations and common functions) was at EUR -2.4m (EUR -2.3m Evli est.).
- 2025 outlook (unchanged): Gold production will be between 16,000 – 22,000 ounces. Production growth is estimated to be greater during H2/25.