Endomines - Production guidance lower than expected
Endomines H2 figures were negatively impacted by the production method change in Pampalo and preparatory work in Hosko. Excluding the effect, profitability was above our estimates. The production guidance for 2024 was weaker than expected.
- Revenue in H2 amounted to EUR 9.0m, slightly lower than we had expected.
- EBITDA in H2 was at EUR -1.0 m (-2.9m H2 2022), lower than our estimate of EUR 0.4m. EBITDA included roughly EUR 2.0m negative effect from production method change in mine and preparatory work for Hosko. Excluding the effect, the EBITDA would have been approximately EUR 1m.
- EBIT in H1 amounted to EUR -2.2m, lower than our estimate of EUR -0.8m.
- EBITDA from Pampalo production was at EUR 0.9m, up from EUR 0.4m during the second half of 2022. Excluding the EUR 2m negative effect, Pampalo’s profitability was slightly higher than we anticipated.
- EBITDA from the company’s other functions (Karelian gold line operations, USA operations and common functions) was at EUR -1.9m (EUR -2.1m Evli est.).
- Endomines will continue negotiations regarding the company’s US assets in 2024 and the goal is to find a solution as soon as possible.
- With the new exploration results from Kuittila and Korvilansuo, the company will treat the Muurinsuo-Korvilansuo-Kuittila area as one entity called Southern Gold Line. Endomines was able to increase Korvilansuo resources by 307% and Kuittila by 114% in 2023.
- 2024 outlook: Gold production will increase by 15-35% from 2023 (roughly 14 700 – 17 300 ounces, our current estimate at 17 600 ounces) and financial result is expected to improve from 2023.