West Africa-focused gold miner reports record quarterly free cash flow of $613 million and flags returns may far exceed minimum commitment
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) has signalled it could more than double its minimum shareholder returns commitment for 2026, with record cash generation and a surging gold price combining to put the FTSE 100-listed gold producer in an enviably strong financial position.
The company, which operates a portfolio of mines across West Africa, said that at prevailing gold prices it expects total returns to shareholders to significantly exceed the $1 billion minimum dividend underpinning its 2026-2028 programme, with the potential to more than double it.
Endeavour reported record adjusted EBITDA of $880 million for the first quarter of 2026, up 29% on the preceding quarter, alongside record free cash flow of $613 million, equivalent to $2,176 per ounce produced.
The results were driven in large part by a 24% jump in the realised gold price to $4,810 per ounce, reflecting the continued strength of bullion markets.
Net earnings attributable to shareholders surged 421% quarter on quarter to $354 million, while the company swung from a net debt position of $158 million at the end of 2025 to net cash of $405 million by the close of March.
The company has completed $54 million of share buybacks so far this year, including $30 million in the first quarter, supplementing its dividend programme.
Production of 282,000 ounces in the quarter came in below the 298,000 ounces recorded in Q4-2025, with full-year guidance reaffirmed and performance weighted towards the second half of the year, reflecting mining sequences at the Houndé, Mana and Ity operations.
All-in sustaining costs (AISC), the industry’s standard measure of the total cost of gold production, rose 11% quarter on quarter to $1,834 per ounce, though remained well below the prevailing gold price.
Chief executive Ian Cockerill said the group’s financial strength gave it the flexibility to simultaneously fund construction at its Assafou development project and sustain its shareholder returns programme.
Assafou, located in Côte d’Ivoire, is the subject of a recently completed definitive feasibility study (DFS) that outlined production of 320,000 ounces per year at an AISC of $1,026 per ounce over the first eight years of a 16-year mine life.
The project carries an after-tax net present value of $5.1 billion and an internal rate of return of 55% at a gold price of $4,000 per ounce, with upfront capital of $1.06 billion.
A final investment decision is targeted before the end of 2026, followed by a 24 to 30-month construction period.