Endomines - Profitability of Pampalo lower than expected
Endomines' net sales for the first half of the year were roughly as expected, though profitability did not meet our estimates.
- Revenue in H1 amounted to EUR 13.1m (EUR 10.7m H1/23), only slightly below our estimate of EUR 13.3m.
- The group EBITDA in H1 was at EUR 1.9 m (0.4m H1 2023), lower than our estimate of EUR 3.3m. The profitability of Pampalo’s operations fell short of our estimates, in addition, the company’s overhead costs were slightly higher than expected.
- EBIT in H1 amounted to EUR 0.1m, well short of our estimate, due to the EBITDA miss and higher than expected depreciation.
- EBITDA from Pampalo production was at EUR 4.0m, up from EUR 2.4m during the first half of 2023. While profitability improved, it fell short of our estimate of EUR 5.2m.
- EBITDA from the company’s other functions (Karelian gold line operations, USA operations and common functions) was at EUR -2.1m (EUR -1.9m 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.
- 2024 outlook (unchanged): Gold production will increase by 15-35% from 2023 (roughly 14 700 – 17 300 ounces, our current estimate at 15 922 ounces) and financial result is expected to improve from 2023.