Endeavour Mining Shares Slide as Mine Stoppage Pulls Full-Year Output Lower

what happened

Shares of gold producer Endeavour Mining opened sharply lower after the company warned that its annual production will likely land only at the bottom of its guided range. The London-listed stock fell almost 9% to 3,758 pence.

The company blamed partial ground subsidence at its Mana mine in Burkina Faso, which led to a suspension of mining there at the end of last month. Endeavour said Mana will produce less gold than expected in the final months of the year, pushing group output toward the lower end of its 1.09 million to 1.265 million troy ounce range. Higher output at its Lafigue mine in Ivory Coast will only partly offset the shortfall.

RBC Capital Markets analysts expect Mana to deliver negligible fourth-quarter production. Year to date, output fell 10% to 820,000 ounces, while adjusted EBITDA rose 38% to $2.25 billion. The details were reported by Dow Jones Newswires.

why it matters

For investors, the story matters mainly as a signal of production risk at one company. With lower output, fourth-quarter revenue and cash flow could come in below earlier expectations. The text does not point to any direct impact on the gold price itself.

market impact

Endeavour Mining shares: lower Mana output weighs on the company's stock

• ▼Endeavour Mining shares pressure down — lower expected output at the Mana mine cuts the company's revenue

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instruments