Endeavour gold sales decreased to 1,393koz in FY-2021
Gold sales from continuing operations increased from 338koz in Q3-2022 to 352koz in Q4-2022 due to increased sales at the Ity, Sabodala-Massawa and Wahgnion mines as a result of increased production. The realised gold price from continuing operations for Q4-2022 was $1,758 per ounce compared to $1,737 per ounce for Q3-2022. Total cash cost per ounce decreased slightly from $839 per ounce in Q3-2022 to $829 per ounce in Q4-2022, primarily related to higher sales and lower operating expenses compared to the prior quarter.
Gold sales from continuing operations decreased from 1,478koz in FY-2021 to 1,393koz in FY-2022 due to lower sales at the Boungou, Mana, Wahgnion and Sabodala-Massawa mines, which was partially offset by higher sales at the Ity and Houndé mines. The realised gold price from continuing operations was $1,807 per ounce for FY-2022 compared to $1,781 per ounce for FY-2021. Total cash cost increased from $718 per ounce in FY-2021 to $803 per ounce in FY-2022 largely due to the higher fuel and explosive costs, when compared to the prior period, and the lower number of ounces sold.
Growth capital, inclusive of the non-cash movements in project working capital, increased from $29.7 million in Q3-2022 to $54.6 million in Q4-2022, as construction activities at the Lafigué project were launched, activity at the Sabodala-Massawa Expansion project accelerated and the Definitive Feasibility Studies (“DFS”) were finalised at Lafigué and continued at Kalana. In Q4-2022, the cash outflow related to growth projects amounted to $66.6 million.
Growth capital, inclusive of the non-cash movements in project working capital, was $126.5 million in FY-2022 due to the construction of the Sabodala-Massawa Expansion project and the Lafigué project, which both commenced during the year, as well as costs related to the DFS’s for the growth projects. In FY-2022, the cash outflow related to growth projects amounted to $111.5 million.
Revenue increased by $47.0 million from $570.0 million in Q3-2022 to $617.0 million in Q4-2022 mainly due to higher gold sales from the Sabodala-Massawa, Ity and Wahgnion mines and a higher realised gold price. Gold sales from continuing operations increased from 338koz in Q3-2022 to 352koz in Q4-2022.
The realised gold price, including the realised gain on the gold forward contract and gold collars, increased from $1,686 per ounce in Q3-2022 to $1,751 per ounce in Q4-2022. When excluding the impact of the realised gains on the gold forward contracts and gold collars, the realised gold price increased from $1,679 per ounce in Q3-2022 to $1,742 per ounce in Q4-2022.
Revenue decreased by $134.0 million from $2,642.1 million in FY-2021 to $2,508.1 million in FY-2022 due to the lower gold sales compared to the prior period, which was partially offset by the higher realised gold price. Gold sales from continuing operations decreased from 1,478koz in FY-2021 to 1,393koz in FY-2022. The realised gold price, including the impact of the Group’s revenue protection programme, increased from $1,781 per ounce for FY-2021 to $1,807 per ounce in FY-2022.
Operating expenses were stable at $249.5 million in Q4-2022 compared to the prior period. Depreciation and depletion increased by $21.8 million from $151.2 million in Q3-2022 to $173.0 million in Q4-2022 mainly due to increases at the Sabodala-Massawa, Ity and Wahgnion mines, which was partially offset by decreases at the Houndé and Boungou mines. Increases at the Sabodala-Massawa mine were due to the commencement of mining at the Bambaraya deposit, while the increase at Ity was due to high production during the period and at Wahgnion due to the decrease in the reserve base.
Operating expenses of $979.5 million in FY-2022 were largely consistent with the prior period as increased operating costs at the Sabodala-Massawa and Wahgnion mines, in addition to higher fuel and consumable costs across the portfolio, were offset by the decrease in expenses related to the reversal of fair value adjustments to inventory that impacted FY-2021.
Depreciation and depletion for FY-2022 increased by $16.2 million from $599.8 million in FY-2021 to $616.0 million in FY-2022 largely due to increases at the Houndé, Mana, Sabodala-Massawa and Wahgnion mines, which was partially offset by decreases at the Boungou and Ity mines. I
ncreased depletion at the Sabodala-Massawa and Wahgnion mines is due to a full year of operations in FY-2022, following the acquisition of Teranga in February 2021. The increase at the Mana mine is due to a slight reduction in the depletable base this year, and the increase at Ity mine is due to the commencement of mining at new deposits. This was partially offset by decreases at the Boungou and Ity mines due to lower production and a higher depletable reserves base, respectively.
Royalties increased from $35.3 million in Q3-2022 to $38.5 million in Q4-2022 largely due to more gold ounces sold at a higher realised gold price in Q4-2022.
Royalties decreased from $162.3 million in FY-2021 to $152.9 million in FY-2022 due to lower gold sales from the Group which was partially offset by the higher realised gold price.
