Endomines - Profitability improved yet below estimate
The transformation programme is beginning to deliver results as the company’s EBITDA improved to EUR 0.4m (-3.5m H1 2022) during the first half of 2023. While the development was positive, the profitability was still weaker than we had estimated.
- Revenue in H1 amounted to EUR 10.7m, roughly in line with our estimate of EUR 11.2m. Previously announced gold production amounted to 6,753 oz during the first half, up by 94.1% y/y.
- EBITDA in H1 was at EUR 0.4m (-3.5m H1 2022), lower than our estimate of EUR 1.6m.
- EBIT in H1 amounted to EUR -2.3m, lower than our estimate of EUR 0.2m.
- EBITDA from Pampalo production was at EUR 2.4m, up from EUR 0.2m during the first half of 2022.
- EBITDA from the company’s other functions (Karelian gold line operations, USA operations and common functions) was at EUR -2.0m.
- EBITDA from the company’s other functions was roughly in line with our expectations while the Pampalo’s operating expenses were still at a slightly higher level than expected.
- During the first half of the year, Endomines has conducted preliminary negotiations with potential partners regarding the company’s US assets, based on the preliminary interest, Endomines still targets to conclude the negotiations during 2023.
- As expected, Endomines revises the Pampalo production guidance for 2023 (current guidance: production increase of 35-55% y/y), the company expects that the production will be near the upper end of the given range (Evli current est. increase of 55% y/y).