Endeavour Mining PLC on Thursday said it kicked off 2022 on ‘strong footing’ with revenue increasing in the first quarter on stronger gold prices.

Shares in the company were 8.0% higher at 2,096.00 pence each in London on Thursday morning, the best FTSE 100 performer.

The miner, which has assets in Burkina Faso and Ivory Coast, said its average realised gold price climbed 8.5% year-on-year to $1,911 an ounce in the first quarter of 2022, from $1,762.

Chunkier gold prices helped quarterly revenue rise 14% annually to $686 million from $601 million.

Pretax profit dropped 71% to $51 million from $173 million a year prior. Profit was hit by a $178.8 million loss on financial instruments, related to forward gold sales, the company explained.

Endeavour added: ‘The loss in Q1-2022 was mainly due to an unrealised loss on gold forward sales of $79.2 million and an unrealised loss on gold collars of $43.8 million.’

More promisingly, adjusted earnings before interest, tax, depreciation and amortisation climbed 22% year-on-year to $398 million.

Gold production increased 14% to 357,000 ounces from 313,000 ounces a year earlier.

‘We are pleased to have started the year on a strong footing with both production and all-in sustaining costs well positioned to meet full year guidance,’ Chief Executive Sebastien de Montessus said.

Endeavour said it is working towards expanding its Sabodala-Massawa operation in Senegal. In addition, a definitive feasibility study for the Lafigue asset in Ivory Coast ‘is nearing competion’.

‘In addition, we are continuously working on improving the efficiency of our operations by identifying and pursuing high priority optimisation initiatives, in an effort to remain a low-cost producer despite the industry-wide inflationary pressures,’ CEO de Montessus added.

Copyright 2022 Alliance News Limited. All Rights Reserved.