Endeavour Mining PLC on Thursday reported a steep fall in annual profit for 2022, amid lower gold sales and higher operating costs.

The gold miner, with assets in nations including Senegal and Burkina Faso, said pretax profit in 2022 fell to $145 million, sharply missing UBS analyst forecasts, from $448 million posted for 2021. UBS analysts estimated a pretax profit of $610 million for 2022.

Endeavour Mining shares fell 6.0% to 1,589.00 pence each in London on Thursday morning.

Revenue fell to $2.51 billion, in line with forecasts by UBS analysts, from $2.78 billion in 2021.

Endeavour’s all-in sustaining cost per ounce increased by 7.4% to $928 from $864. Total all-in costs widened 21% to $223.8 million from $185.3 million. Meanwhile, Endeavour’s realised gold price increased by only 1.5% to $1,807 per ounce from $1,781 in 2021.

At its Hounde mine in Burkina Faso, production grew to 295,000 ounces of gold in 2022 from 293,000 ounces in 2021. For 2023 however, the company expects this to drop to between 270,000 and 285,000 ounces.

Further, Endeavour Mining anticipates 2023 non-sustaining capital expenditure to fall to $35.0m from $39.2 million in 2022. It expects the total mine capital expenditure to be similar to 2022.

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