- Endeavour Mining (EDV) is giving back to its shareholders following a highly successful third-quarter performance
- Based on anticipated free cash flow, the company unveiled a distribution of C$0.48 per share, representing $60 million in total
- This price represents a 1.6 per cent yield on the shares’ recent trading price and will be paid to shareholders early next year
- The third quarter of 2020 saw a significant increase in production compared to the second, a trend expected to continue due to the restart and ramp-up of various operations
- Endeavour Mining is currently up 2.99 per cent to $30.30 per share
Endeavour Mining (EDV) is giving back to its shareholders following a highly successful third-quarter performance.
Based on the company’s strong balance sheet and strong expected free cash flow, its Board of Directors has elected to issue its first-ever dividend of C$0.48 per share, payable early next year. This price represents a total outlay of $60 million and a 1.6 per cent yield compared to the closing share price of November 11.
Once the initial dividend has been paid, Endeavour expects to declare future distributions on a semi-annual basis.
“Our goal is to maintain a similar dividend yield until we have reached a targeted net cash position of $250 million,” said Sebastien de Montessus, President and CEO of Endeavour Mining.
“Once this targeted net cash position is reached, we would be well positioned to re-assess our capital allocation priorities, which include increasing our shareholder return program,” he added.
The news follows a strong third quarter for Endeavour, which saw a 64 per cent increase in production compared to the second quarter fo 2020. This trend is expected to continue with the restart of mining operations at Boungou and the processing of higher grade ore from the Kari Pump deposit at Houndé.
As such, Endeavour remains on track to achieve its full-year production guidance of between 995,000 and 1,095,000 ounces of gold.
Adjusted net earnings attributable to shareholders came to $72 million, representing a $20 million increase compared to the second quarter earnings despite an $80 million increase in depreciation and a $66 million increase in income tax expenses.
Endeavour Mining is currently up 2.99 per cent to $30.30 per share at 10:43am EST.