Endeavour Mining — Meeting guidance for 10th consecutive year

Metals & Mining

Endeavour Mining

Meeting guidance for 10th consecutive year

Q422 preliminary results and FY23 estimates

Metals and mining

1 February 2023

Price	1,891p
Market cap	£4,660m
C$1.33389/US$, US$ 1.23753/£
Net cash (US$m) at end-September		121

Shares in issue	247.0m
Free float	73.2%
Code	EDV

Primary exchange	LSE
Secondary exchange	TSX, USOTC

Share price performance

%	1m	3m	12m
Abs	9.3	25.9	18.8
Rel (local)	5.2	13.9	15.9

52-week high/low

2,090p

1,461p

Business description

Following its acquisitions of SEMAFO and Teranga, Endeavour Mining has become one of the top 10 major gold producers globally, with six mines in Côte d’Ivoire, Burkina Faso and Senegal plus a portfolio of development projects, all in the West African Birimian greenstone belt.

Next events

Ex-dividend date	23 February 2023
FY22 results	9 March 2023
Dividend payment	23 March 2023

Analysts

Thomas Batho	+44 (0)20 3077 5700
Lord Ashbourne	+44 (0)20 3077 5700

mining@edisongroup.com

Edison profile page

Endeavour Mining is a research client of Edison Investment Research Limited

In preparation for FY22 results on 9 March, Endeavour has released preliminary operational results. Q422 saw a 4% increase in gold production, totalling 355koz, showing a strong close to the year, whereas all-in sustaining costs (AISC) remained stable at c US$954/oz. As such, FY22 marks the 10th year in which Endeavour has either achieved or beaten both its production and AISC cost guidance (see below). Looking to FY23, production guidance is broadly comparable at 1,325–1,425koz and AISC of US$940–995/oz. Endeavour also announced an H222 dividend of US$100m confirming a FY22 total dividend of $200m, 33% above its minimum committed level of US$150m.

Year end	Revenue (US$m)	PBT* (US$m)	EPS* (c)	DPS (c)	P/E (x)	Yield (%)
12/20	1,847.9	501.2	185.3	37	15.7	1.3
12/21	2,903.8	756.5	205.0	56	14.2	1.9
12/22e	2,488.1	560.2	103.7	81	28.1	2.8
12/23e	2,635.8	620.9	151.2	82	19.3	2.8

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Positive preliminary results

FY22 gold production from continuing operations totalled 1,400koz, at the top end of Endeavour’s guidance of 1,315–1,400koz, while AISC were c US$928/oz, achieving the guided US$880–930/oz despite industry-wide inflationary pressures. Production guidance for FY23 is 1,325–1,425koz, while AISC are expected to remain consistent with those of recent quarters at US$940–995/oz.

Impressive shareholder returns and cash position

The H222 interim dividend of US$100m confirmed a distribution of US$200m for the full year. This represents a US$50m (33%) uplift relative to the minimum committed level of US$150m, while not compromising net cash, which increased by US$119m over the quarter to US$121m (Endeavour’s calculation). At the same time, share buybacks added US$98.7m to shareholder returns during FY22.

Valuation: Consistent valuation before FY22 results

We broadly maintain our valuation methodology ahead of the FY22 results, whereby we discount back five years of cash flows then apply an ex-growth, ad infinitum multiple to steady-state terminal cash flows in FY26. This implies a present valuation for the company of US$35.07 (C$46.84 or £28.35), previously US$35.54 per share if performed using a 10% discount rate or US$57.32 (C$76.56 or £46.33) per share if performed using a CAPM-derived (real) discount rate of 6.51% (based on inflation expectations of 2.34% derived from US 30-year break-evens). To these valuations a further US$4.30–7.45/share may be added to reflect the value of Endeavour’s five-year exploration programme (see The second five-year plan, published on 20 October 2021).

Positive dividend announcement

Endeavour announced a strong H222 interim dividend of US$100m (approximately US$0.41 per share), resulting in a total dividend for the year of US$200m (c US$0.81/share). This represents a US$50m or 33% uplift relative to the base dividend commitment for the year.

The ex-dividend date for the H222 interims 23 February 2023 and the record date will be 24 February 2023, with the payment being paid to shareholders around 28 March 2023. Shareholder returns are also being supplemented through the company’s share buyback programme, of which a total of US$98.7m, or 4.6m shares, were repurchased during the year. Alongside its robust dividend results, Endeavour also ended the year with a net cash position of US$121.1m, which represents an increase of US$118.6m relative to the prior quarter and US$44.9m over the prior year.

FY22 operational performance updates

Endeavour ended an impressive FY22 with production from continuing operations of 1,400koz, achieving the top end of the guided 1,315–1,400koz range, while AISC amounted to c US$928/oz, within a guided range of $880–930/oz. Strong production performance was largely related to the Houndé and Ity assets, which benefitted from higher than planned throughput, and the Mana mine where higher than expected open pit mining tonnages were extracted from the Wona open pit prior to its depletion. Although industry-wide inflationary pressures have typically affected costing, in Endeavour’s case they were partially offset by favourable foreign exchange movements as the euro declined against the dollar, as well as group-wide optimisation initiatives.

Q422 preliminary results and forecasts

Endeavour’s Q422 preliminary results met the top end of its guidance for the year of 1,400koz for production at an AISC of US$928/oz. In addition to incorporating its Q422 preliminary results into our full-year forecast, we have updated our gold price forecast to reflect a fractionally marginally increased gold price in Q4 (US$1,728/oz vs US$1,727/oz previously). We have also attempted to forecast the effect of realised hedging gains and losses on earnings in the form of an estimate of the intrinsic value of these contracts for the quarter included in profit/(loss) on financial instruments. As a result (and with the usual caveat around quarterly estimates), our updated forecast for adjusted net earnings attributable to shareholders for FY22 for Endeavour in the wake of its Q422 preliminary results is now as follows:

Exhibit 1: Endeavour Mining FY22 forecasts, by quarter

US$000s (unless otherwise indicated)	Q122	Q222	Q322	Q422e (prior)	Q422e	FY22e	FY22e (prior)
Houndé production (koz)	73.1	87.0	72.3	57.3	62.5	294.9	289.7
Karma production (koz)	10.2	0.0	0.0	0.0	0.0	10.2	10.2
Ity production (koz)	72.4	76.9	80.9	63.2	82.5	312.7	293.3
Boungou production (koz)	33.8	27.0	29.3	30.4	25.5	115.6	120.5
Mana production (koz)	52.6	54.8	41.7	43.1	45.5	194.5	192.1
Sabodala-Massawa	96.3	72.9	86.3	98.2	103.0	358.5	353.7
Wahgnion	28.9	26.5	32.3	43.1	36.0	123.7	130.8
Total gold produced (koz)	357.1	345.1	342.7	335.1	354.9	***1,410.1	***1,390.3
Total gold sold (koz)	359.1	343.7	338.1	335.1	352.0	***1,403.0	***1,386.0
Gold price (US$/oz)	1,911	*1,832	1,679	1,727	1,718	*1,785	*1,778
Mine level cash costs (US$/oz)**	609	713	733	769	732	701	793
Mine level AISC (US$/oz)	809	934	921	882	907	896	889
Revenue
– Gold revenue	686,200	629,600	567,633	576,424	604,704	2,504,889	2,459,824
Cost of sales
– Operating expenses	217,500	251,200	247,923	222,158	257,861	987,914	944,458
– Royalties	41,000	38,100	35,300	35,608	37,085	153,185	150,008
Gross profit	427,700	340,300	278,700	318,658	309,757	1,356,457	1,365,358
Depreciation	(152,000)	(139,800)	(151,200)	(164,191)	(163,637)	(606,637)	(607,191)
Expenses
– Corporate costs	(14,000)	(6,800)	(12,400)	(15,000)	(16,432)	(49,632)	(48,200)
– Impairments
– Acquisition etc costs	(200)	(1,300)	(1,000)	0	0	(2,500)	(2,500)
– Share based compensation	(7,700)	(3,100)	(4,200)	(7,082)	(7,082)	(22,082)	(22,082)
– Exploration costs	(7,100)	(8,000)	(11,800)	(5,000)	(5,000)	(31,900)	(31,900)
Total expenses	(29,000)	(19,200)	(29,400)	(27,082)	(28,514)	(106,114)	(104,682)
Earnings from operations	246,700	181,300	98,100	127,386	117,606	643,706	653,486
Interest income
Interest expense	(15,200)	(16,500)	(18,600)	(15,681)	(15,681)	(65,981)	(65,981)
Net interest	(15,200)	(16,500)	(18,600)	(15,681)	(15,681)	(65,981)	(65,981)
Profit/(loss) on financial instruments	(178,800)	106,800	60,100	11,458	11,910	10	(442)
Other expenses	(2,000)	(10,600)	(7,400)	0	0	(20,000)	(20,000)
Profit before tax	50,700	261,000	132,200	123,163	113,835	557,735	567,063
Current income tax	74,700	64,700	77,000	34,498	35,747	252,147	250,898
Deferred income tax	11,200	(8,200)	(11,900)	0	0	(8,900)	(8,900)
Total tax	85,900	56,500	65,100	34,498	35,747	243,247	241,998
Effective tax rate (%)	169.4	21.6	49.2	28.0	31.4	43.6	42.7
Profit after tax	(35,200)	204,500	67,100	88,665	78,088	314,488	325,065
Net profit from discontinued ops.	14,800	0	0	0	0	14,800	14,800
Total net and comprehensive income	(20,400)	204,500	67,100	88,665	78,088	329,288	339,875
Minority interest	21,800	15,100	9,500	13,758	13,667	60,067	60,158
Minority interest (%)	(106.9)	7.4	14.2	15.5	17.5	18.2	17.7
Profit attributable to shareholders	(42,200)	189,400	57,600	74,907	64,421	269,221	279,707

Basic EPS from continuing ops (US$)	(0.23)	0.76	0.232	0.303	0.261	1.027	1.069
Diluted EPS from continuing ops (US$)	(0.23)	0.76	0.232	0.303	0.261	1.025	1.067
Basic EPS (US$)	(0.17)	0.76	0.232	0.303	0.261	1.087	1.128
Diluted EPS (US$)	(0.17)	0.76	0.232	0.303	0.261	1.085	1.126
Norm. basic EPS from cont. ops (US$)	0.49	0.34	(0.006)	0.257	0.213	1.037	1.081
Norm. diluted EPS from cont. ops (US$)	0.49	0.34	(0.006)	0.256	0.212	1.035	1.079
Adj net earnings attributable (US$000s)	122,300	111,300	36,500	65,227	54,595	324,695	335,327
Adj net EPS from continuing ops (US$)	0.493	0.448	0.147	0.264	0.221	1.310	1.353

Source: Endeavour Mining, Edison Investment Research. Note: *Includes Karma and Sabodala-Massawa streams. **Excludes royalty costs. ***Includes 10.2koz produced and 10.1koz sold from Karma in Q122.

Please note that in Q420 Endeavour changed its definition of cash costs to include royalties. The decision was made so that Endeavour may be more consistent in reporting within the context of its peer group. For reasons of comparability with past results, however, as well as ease of forecasting (given royalties are reported as a standalone item distinct from operating expenses), we are continuing to calculate total cash costs in Exhibits 1 and 3 excluding royalties.

In the wake of the changes made to our Q422 forecasts, a comparison between our quarterly and full-year forecast and consensus forecasts for FY22 adjusted net EPS is as follows:

Exhibit 2: Edison-adjusted net EPS from continuing operations estimates vs consensus FY22 by quarter

(US$/share)	Q122	Q222	Q322	Q422e	Sum Q1–Q422e	FY22e
Edison	0.493	0.448	0.147	0.221	1.310	1.310
Mean consensus forecast	0.493	0.448	0.147	0.270	1.358	1.310
High consensus forecast	0.493	0.448	0.147	0.350	1.438	1.430
Low consensus forecast	0.493	0.448	0.147	0.130	1.218	1.080

Source: Refinitiv, Edison Investment Research. Note: Consensus at 27 January 2022.

FY23 forecasts

In line with its Q4 preliminary production results, Endeavour also released initial FY23 guidance indicating comparable operational performances with FY22 in production of 1,325–1,425koz (vs 1,400koz in FY22) and AISC of US$940–995/oz (vs US$928oz in FY22). In light of this guidance, we have updated our FY23 forecasts as follows:

Exhibit 3: Endeavour Mining FY23 forecasts, by quarter

US$000s (unless otherwise indicated)	Q123e	Q223e	Q323e	Q423e	FY23e	FY23e (prior)	FY22e
Houndé production (koz)	55.1	55.1	79.3	87.9	277.5	250.5	294.9
Karma production (koz)	0.0	0.0	0.0	0.0	0.0	0.0	10.2
Ity production (koz)	73.2	71.0	65.4	75.4	285.0	250.6	312.7
Boungou production (koz)	28.0	28.0	29.5	29.5	114.9	122.1	115.6
Mana production (koz)	52.5	52.5	52.5	52.5	209.9	205.0	194.5
Sabodala-Massawa	78.8	78.8	77.3	86.3	321.3	353.7	358.5
Wahgnion	37.9	38.9	42.2	43.7	162.7	147.4	123.7
Total gold produced (koz)	325.5	324.2	346.2	375.3	1,371	1,275	***1,410.1
Total gold sold (koz)	325.5	324.2	346.2	375.3	1,371	1,275	***1,403.0
Gold price (US$/oz)	1,914	1,924	1,925	1,925	1,922	1,749	*1,785
Mine level cash costs (US$/oz)**	723	771	716	648	712	793	701
Mine level AISC (US$/oz)	968	1,017	956	879	952	889	896
Revenue
– Gold revenue	622,950	623,908	666,429	722,470	2,635,757	2,218,986	2,504,889
Cost of sales
– Operating expenses	235,335	249,967	248,016	243,306	976,625	801,748	987,914
– Royalties	38,436	38,537	41,758	45,198	163,930	140,958	153,185
Gross profit	349,178	335,403	376,655	433,966	1,495,202	1,276,279	1,356,457
Depreciation	(158,274)	(163,121)	(179,050)	(194,427)	(694,871)	(461,461)	(606,637)
Expenses
– Corporate costs	(15,000)	(15,000)	(15,000)	(15,000)	(60,000)	(33,104)	(49,632)
– Impairments	0	0	0	0	0	0
– Acquisition etc costs	0	0	0	0	0	0	(2,500)
– Share based compensation	(6,453)	(6,453)	(6,453)	(6,453)	(25,814)	0	(22,082)
– Exploration costs	(8,750)	(8,750)	(8,750)	(8,750)	(35,000)	(20,000)	(31,900)
Total expenses	(30,203)	(30,203)	(30,203)	(30,203)	(120,814)	(53,104)	(106,114)
Earnings from operations	160,701	142,079	167,402	209,336	679,518	761,714	643,706
Interest income
Interest expense	(14,534)	(16,091)	(15,029)	(12,932)	(58,586)	0	(65,981)
Net interest	(14,534)	(16,091)	(15,029)	(12,932)	(58,586)	0	(65,981)
Profit/(loss) on financial instruments	(2,868)	(3,180)	(3,180)	(3,180)	(12,408)	0	10
Other expenses	0	0	0	0	0	0	(20,000)
Profit before tax	143,299	122,808	149,193	193,224	608,524	761,714	557,735
Current income tax	42,469	38,741	42,290	51,250	174,750	216,607	252,147
Deferred income tax	0	0	0	0	0	0	(8,900)
Total tax	42,469	38,741	42,290	51,250	174,750	216,607	243,247
Effective tax rate (%)	29.6	31.5	28.3	26.5	28.7	28.4	43.6
Profit after tax	100,830	84,067	106,903	141,974	433,774	545,108	314,488
Net profit from discontinued ops.	0	0	0	0	0	0	14,800
Total net and comprehensive income	100,830	84,067	106,903	141,974	433,774	545,108	329,288
Minority interest	17,811	16,156	18,036	21,991	73,994	89,696	60,067
Minority interest (%)	17.7	19.2	16.9	15.5	17.1	16.5	18.2
Profit attributable to shareholders	83,019	67,911	88,866	119,983	359,780	455,412	269,221

Basic EPS from continuing ops (US$)	0.337	0.276	0.361	0.487	1.462	1.809	1.027
Diluted EPS from continuing ops (US$)	0.337	0.275	0.360	0.487	1.459	1.800	1.025
Basic EPS (US$)	0.337	0.276	0.361	0.487	1.462	1.809	1.087
Diluted EPS (US$)	0.337	0.275	0.360	0.487	1.459	1.800	1.085
Norm. basic EPS from cont. ops (US$)	0.349	0.289	0.374	0.500	1.512	1.809	1.037
Norm. diluted EPS from cont. ops (US$)	0.349	0.288	0.373	0.499	1.509	1.800	1.035
Adj net earnings attributable (US$000s)	85,380	70,480	91,510	122,671	370,041	389,379	324,695
Adj net EPS from continuing ops (US$)	0.347	0.286	0.372	0.498	1.504	1.547	1.311

Source: Endeavour Mining, Edison Investment Research. Note: *Includes Karma and Sabodala-Massawa streams. **Excludes royalty costs. ***Includes 10.2koz produced and 10.1koz sold from Karma in Q122.

A comparison between our quarterly and full-year forecast and consensus forecasts for FY23 adjusted net EPS is as follows:

Exhibit 4: Edison-adjusted net EPS from continuing operations estimates and consensus FY22 by quarter

(US$/share)	Q123e	Q223e	Q323e	Q423e	Sum Q1–Q423e	FY23e
Edison	0.347	0.286	0.372	0.498	1.504	1.504
Mean consensus forecast	0.300	0.310	0.350	0.350	1.310	1.470
High consensus forecast	0.360	0.370	0.410	0.440	1.580	2.080
Low consensus forecast	0.240	0.260	0.230	0.190	0.920	0.730

Source: Refinitiv, Edison Investment Research. Note: Consensus at 27 January 2023.

Valuation

Endeavour is a multi-asset company that has shown a willingness and desire to trade assets to maintain production, reduce costs and maximise returns to shareholders (eg the sale of Youga in FY16, Nzema in FY17, Tabakoto in FY18, Agbaou in FY20 and Karma in FY22, and the acquisition of SEMAFO in FY20 and Teranga in FY21). Historically, rather than our customary method of discounting maximum potential dividends over the life of operations back to FY22, for Endeavour, we have opted to discount five years of forecast cash flows in FY22–26 back to FY22, then apply an ex-growth terminal multiple of 10x (consistent with using a standardised discount rate of 10%) to forecast cash flows in that year (ie FY26). In the normal course of events, exploration expenditure would have been excluded from such a calculation on the basis that it is an investment. In the case of Endeavour, however, we included it because it was a critical component of ongoing business performance in the company’s ability to continually expand and extend the lives of its mines.

In the wake of Q4 preliminary operational results, we have updated our estimate of cash flows in FY26 to US$4.26/share (US$4.24/share previously), which implies a terminal valuation of the company at end-FY26 of US$42.57/share (US$42.44/share previously) if calculated using a discount rate of 10%. In conjunction with forecast intervening cash flows, this terminal valuation then discounts back to a present valuation of US$35.07/share (US$35.02/share previously) at the start of FY22, as follows:

Exhibit 5: Endeavour forecast valuation and cash flow per share, FY22–26e (US$/share)

Source: Edison Investment Research

Given its elevation into the ranks of the world’s foremost producers of gold, however, we believe Endeavour can increasingly attract lower-cost finance and, as such, a CAPM-derived WACC can also be considered. In this case, long-term nominal equity returns have been 9% and 30-year break-evens are expecting an inflation rate of 2.3339% (source Bloomberg, 26 January) versus 2.3754% previously. These two measures imply an expected real equity return of 6.51% (1.09/1.023339) and applying this to our forecast cash flows would imply a terminal valuation for Endeavour of US$65.35/share (US$65.59/share previously) and a current valuation of US$57.32/share (US$57.63/share previously).

Endeavour peer valuation

Endeavour’s valuation on a series of commonly used measures relative to a selection of gold mining majors (the ranks of which it has now joined since its takeover of SEMAFO and Teranga) is as follows:

Exhibit 6: Endeavour’s valuation relative to peers

Company	Ticker	Price/cash flow (x)			EV/EBITDA (x)			Yield (%)
Company	Ticker	Year 1	Year 2	Year 3	Year 1	Year 2	Year 3	Year 1	Year 2	Year 3
Endeavour (Edison)	EDV	4.9	5.0	4.8	4.2	3.8	4.3	3.8	3.9	4.5
Endeavour (consensus)	EDV	5.7	5.8	5.5	5.0	5.4	5.0	7.7	4.4	9.1
Majors
Barrick	ABX	9.4	8.5	8.0	8.5	8.1	7.4	2.9	2.6	3.0
Newmont	NEM	11.3	10.8	10.5	10.0	9.4	8.5	4.0	3.3	3.0
Newcrest	NCM AU	8.9	8.6	8.6	7.6	7.5	7.3	1.5	1.5	1.7
Kinross	K	6.1	5.0	5.0	6.7	5.4	5.7	2.5	2.5	2.5
Agnico-Eagle	AEM	11.2	10.9	10.7	9.9	8.8	8.6	2.8	3.0	3.2
Eldorado	ELD	8.2	5.1	4.5	6.2	4.5	4.0	0.0	0.0	0.0
Average		9.2	8.1	7.9	8.1	7.3	6.9	2.3	2.1	2.2
Implied EDV share price (US$)		39.97	37.18	34.86	42.06	41.57	36.03	35.69	38.58	43.20
Implied EDV share price (C$)		54.43	50.63	47.48	57.27	56.61	49.06	48.60	52.53	58.83

Source: Edison Investment Research, Refinitiv. Note: Consensus and peers priced at 27 January 2023.

Of note is that, without exception, Endeavour’s valuation is materially lower than the averages of the majors on all the measures shown in Exhibit 6, regardless of whether Edison or consensus forecasts are used. On an individual basis, it is cheaper than its senior gold mining peers on at least 50 out of 54 (93%) valuation measures if Edison forecasts are used and 48 out of 54 (89%) valuation measures if consensus forecasts are used. Reverse engineered, the average valuation measures of its peers imply an average share price for Endeavour of US$38.79, or C$57.53 (or £31.37), per share.

Exhibit 7: Financial summary

	US$'000s	2019	2020	2021	2022e	2023e	2024e
December		IFRS	IFRS	IFRS	IFRS	IFRS	IFRS
PROFIT & LOSS
Revenue		1,362,121	1,847,894	2,903,756	2,488,104	2,635,757	2,235,703
Cost of Sales		(884,869)	(1,061,891)	(1,675,393)	(1,237,760)	(1,261,368)	(1,007,684)
Gross Profit		477,252	786,003	1,228,363	1,250,343	1,374,389	1,228,019
EBITDA		618,443	910,295	1,517,263	1,252,843	1,374,389	1,228,019
Operating Profit (before amort. and except.)		281,400	281,400	546,072	859,409	646,206	679,518
Intangible Amortisation		0	0	0	0	0	0
Exceptionals		(199,159)	(201,532)	(266,000)	(2,490)	(12,408)	0
Other		(9,392)	8,886	(32,263)	(20,000)	0	0
Operating Profit		72,849	353,426	561,146	623,716	667,110	707,316
Net Interest		(51,607)	(53,774)	(70,623)	(65,981)	(58,586)	2,135
Profit Before Tax (norm)		220,401	501,184	756,523	560,225	620,932	709,452
Profit Before Tax (FRS 3)		21,242	299,652	490,523	557,735	608,524	709,452
Tax		(97,253)	(158,466)	(178,253)	(243,247)	(174,750)	(149,734)
Profit After Tax (norm)		123,148	342,718	578,270	316,978	446,182	559,718
Profit After Tax (FRS 3)		(76,011)	141,186	312,270	314,488	433,774	559,718
Net loss from discontinued operations		(4,394)	0	0	14,800	0	0
Minority interests		33,126	44,719	64,486	60,067	73,994	88,338
Net profit		(80,405)	141,186	312,270	329,288	433,774	559,718
Net attrib. to shareholders contg. businesses (norm)		90,022	297,998	90,022	297,998	513,784	256,911
Net attrib.to shareholders contg. businesses		(109,137)	(109,137)	96,466	247,784	254,421	359,780

Average number of shares outstanding (m)		157.4	157.4	160.8	250.7	247.7	246.1
EPS - normalised (c)		57.20	185.34	204.95	103.70	151.23	191.50
EPS - normalised fully diluted (c)		56.95	181.51	203.21	101.72	148.33	187.83
EPS - (IFRS) ($)		(0.72)	0.60	0.99	1.09	1.46	1.91
Dividend per share (c)		0	37	56	81	82	96

Gross Margin (%)		35.0	42.5	42.3	50.3	52.1	54.9
EBITDA Margin (%)		45.4	49.3	52.3	50.4	52.1	54.9
Operating Margin (before GW and except.) (%)		20.7	20.7	29.6	29.6	26.0	25.8

BALANCE SHEET
Fixed Assets		2,330,033	5,093,409	5,404,900	5,317,588	5,387,718	5,521,192
Intangible Assets		5,498	24,851	10,000	10,000	10,000	10,000
Tangible Assets		2,254,476	3,968,746	4,980,200	4,892,888	4,963,018	5,096,492
Investments		70,059	1,099,812	414,700	414,700	414,700	414,700
Current Assets		652,871	1,168,382	1,366,000	1,549,859	1,692,846	1,766,547
Stocks		266,451	305,075	311,300	311,013	329,470	279,463
Debtors		83,836	104,545	139,900	171,434	251,738	218,856
Cash		288,186	751,563	906,200	1,049,901	1,106,537	1,263,125
Other		14,398	7,199	8,600	17,510	5,102	5,102
Current Liabilities		(354,931)	(661,171)	(567,100)	(661,872)	(660,264)	(586,961)
Creditors		(312,427)	(612,862)	(552,700)	(647,472)	(645,864)	(572,561)
Short term borrowings		(42,504)	(48,309)	(14,400)	(14,400)	(14,400)	(14,400)
Long Term Liabilities		(963,736)	(1,647,799)	(1,818,100)	(1,818,100)	(1,818,100)	(1,818,100)
Long term borrowings		(770,902)	(1,026,337)	(878,600)	(878,600)	(878,600)	(878,600)
Other long term liabilities		(192,834)	(621,462)	(939,500)	(939,500)	(939,500)	(939,500)
Net Assets		1,664,237	3,952,821	4,385,700	4,387,475	4,602,200	4,882,678

CASH FLOW
Operating Cash Flow		628,617	1,046,370	1,415,306	1,330,750	1,299,834	1,237,605
Net Interest		(35,413)	(53,774)	(26,900)	(65,981)	(58,586)	2,135
Tax		(109,494)	(186,332)	(205,573)	(252,147)	(174,750)	(149,734)
Capex		(401,227)	(335,599)	(587,496)	(519,325)	(765,000)	(654,178)
Acquisitions/disposals		3,654	(19,000)	(4,700)	15,000	5,000	0
Financing		2,402	100,000	(89,400)	(119,972)	(5,240)	0
Dividends		(6,154)	(88,288)	(159,800)	(244,623)	(244,623)	(279,240)
Net Cash Flow		82,385	463,377	341,437	143,701	56,636	156,589
Opening net debt/(cash)		518,607	525,220	323,083	(13,200)	(156,901)	(213,537)
HP finance leases initiated		0	0	0	0	0	0
Other		(88,998)	(261,240)	(5,154)	0	0	0
Closing net debt/(cash)		525,220	323,083	(13,200)	(156,901)	(213,537)	(370,125)

Source: Company sources, Edison Investment Research. Note: Presented on a pro-forma basis including SEMAFO from FY18 balance sheet and Teranga from FY20 balance sheet. EPS normalised from FY18 to reflect continuing business only. *Excludes restricted cash.

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