Endeavour Reports Second Quarter 2016 Results; On-Track to Meet Full-Year Guidance
(Thomson Reuters ONE) -
Endeavour Reports Second Quarter 2016 Results; On-Track to Meet Full-Year
Guidance
View News Release in PDF Format
View Presentation in PDF Format
Highlights:
* 262koz produced in H1-2016 and higher production expected in H2-2016, on-
track to meet full year guidance
* 2016 production guidance raised to 575-610koz with the inclusion of Karma
* $896/oz All-in Sustaining Cost ("AISC") in H1-2016, in line with full-year
guidance of $870 to $920/oz
* All-in sustaining margin of $82m in H1-2016, up 39% over H1-2015, lifted by
increased production, lower costs, and higher gold prices
* Free Cash Flow((before tax, WC & financing costs)) of $59m for H1-2016, up
26% over H1-2015
* Net Cash position of $21m following bought deal close on July 11, 2016,
compared to a Net Debt position of $242m at June 30, 2015
* Houndé construction progressing on-time and on-budget, with 30% of capital
committed
* Further optimization by relocating its corporate functions, including its
CEO, to a new corporate headquarters in London
George Town, July 28, 2016 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased
to announce its financial and operating results for the quarter ended June
30, 2016, with highlights provided in the table below.
Table 1: Key Operational and Financial Highlights
Quarter ended, Six months ended,
------------------------- ------------------------------------
Q2-2016 Q1-2016 Q2-2015 June 30, 2016 June Variance
(in US$) 30, 2015
-------------------------------------------------------------------------------
Gold Production, 138,487 123,388 112,924 261,875 218,800 +20%
oz*
Realized Gold 1,257 1,192 1,193 1,225 1,206 +2%
Price, $/oz
AISC, $/oz 901 889 902 896 931 (5%)
-------------------------------------------------------------------------------
All-in
Sustaining 356 303 291 330 275 +20%
Margin, $/oz
All-in
Sustaining
Margin, $m 45 37 32 82 59 +39%
Free Cash Flow,
$m
(befORE WC, tax 29 30 29 59 47 +26%
& financing
costs, Houndé
and Karma)
Net Debt At
Period End, $m** (21) 136 242 (21) 242 n.a.
-------------------------------------------------------------------------------
NB: All amounts exclude discontinued Youga operation. *Includes Karma's pre-
commercial production. Karma's revenue, costs, and operating cash flow is netted
against its capital costs for its pre-commercial production period. **End of
June 2016 amount presented is pro-forma inclusive of Bought Deal financing which
closed on July 11, 2016. Before Bought Deal proceeds, the net debt amounted to
$82 million.
Sébastien de Montessus, President & CEO, stated: "Our results for the first half
of the year demonstrate the benefits of a diverse portfolio of mines, where
impressive out-performance at the Agbaou and Ity mines compensated for lower
production at Nzema and Tabakoto. We expect Nzema and Tabakoto performance to
improve in H2, as we continue to deliver against our group-level objectives,
remaining on-track to meet all our guidance metrics for 2016.
Following the La Mancha transaction in November, we have steadily deleveraged
our balance sheet and are now in a strong position to execute our growth
strategy with nearly $440 million in liquidity and financing sources to fund our
developments.
Moving forward, we will continue to build on our track record of being efficient
operators and project builders in West Africa. In addition, we will also focus
on increasing investment in exploration across our portfolio to extend mine life
and unlock further value for shareholders, while implementing a new management
culture that is focused on operational excellence, increased transparency,
improved governance and engagement with stakeholders."
Gold production and AISC on-track to meet initial full-year guidance
* Q2-2016 production from continuing operations (excluding Youga) increased by
6% over the previous quarter, with continued strong performance from Agbaou
and Ity compensating for lower purchased ore production at Nzema.
* Endeavour is on-track to meet its initial full-year guidance as production
is expected to increase in H2-2016 with stronger performance expected from
the Tabakoto and Nzema mines.
* Endeavour's AISC for its continuing operations averaged $896/oz during H1-
2016, remaining in-line with guidance while improvements are expected at
both Nzema and Tabakoto in H2-2016.
Table 2: Gold Production by mine, koz
Quarter ended, Six months ended June
30,
------------------------- ----------------------
(All amounts in koz, on a Q2-2016 Q1-2016 Q2-2015 2016 2015 Variance
100% basis)
-------------------------------------------------------------------------------
Agbaou 46 43 41 89 86 +4%
Tabakoto 39 39 40 78 73 +7%
Nzema 20 20 33 40 60 (34%)
Ity 21 22 n.a. 43 n.a. n.a.
-------------------------------------------------------------------------------
Subtotal 126 123 113 250 219 +14%
Youga (discountinued 0 8 18 8 36 n.a.
operation)
Karma (pre-commerical 12 - - 12 - n.a.
production)
-------------------------------------------------------------------------------
Total 138 132 131 270 255 +6%
-------------------------------------------------------------------------------
Table 3: Group All-In Sustaining Costs, US$/oz
Quarter ended, Six months ended June
30,
------------------------- ----------------------
(All amounts in US$/oz, on a Q2-2016 Q1-2016 Q2-2015 2016 2015 Variance
100% basis)
-------------------------------------------------------------------------------
Agbaou 525 525 619 525 597 (12%)
Tabakoto 1,061 1,071 990 1,066 1,055 +1%
Nzema 1,266 1,158 953 1,212 1,062 +14%
Ity 775 710 n.a. 742 n.a. n.a.
-------------------------------------------------------------------------------
Mine-level AISC 845 837 846 842 877 (4%)
Corporate G&A 44 40 40 42 39 +8%
Sustaining exploration 12 12 16 12 16 (16%)
-------------------------------------------------------------------------------
Group AISC/oz 901 889 902 896 931 (4%)
-------------------------------------------------------------------------------
Agbaou Mine
H1-2016 Insights:
* Agbaou continued its strong performance in Q2-2016, with an increase in
tonnes milled which contributed to overall higher production of gold. The
optimized mill throughput is currently running significantly above nameplate
capacity.
* AISC for Q2-2016 was in line with the prior quarter at $525 per ounce. This
reflects the benefit of a full quarter of savings associated with the
revision of rates under the mining contract, offset slightly by the
scheduled maintenance at the processing facility.
* The secondary crusher was commissioned in July on-time and under-budget,
providing improved processing flexibility.
H2-2016 Outlook
* Agbaou is expected to benefit in the second half of 2016 from continued
higher mill throughput and higher expected recoveries, and the introduction
of higher grade transitional ore in Q4-2016.
* In light of the strong performance in H1-2016 and the positive outlook on
the remainder of the year, Agbaou's FY2016 production guidance has been
increased from 165-175koz to 180-195koz while its AISC guidance has been
lowered from $650-700/oz to $550-600/oz.
Exploration Activities
* In 2016, exploration is focused on the North pit and South pit extensions,
the Agbaou South target, and on generating targets beyond the current
resource boundaries.
* Following resolution of ground reclamation and compensation issues with
local communities, drilling based on previous geophysics surveys and soil
geochemistry results commenced in April 2016.
* At the end of June 2016, over 8,000 meters of Reverse Circulation (RC) and
Diamond Drilling (DD) had already been drilled (representing approximately
20% of the initial program).
* Initial results suggest the extension of mineralized zones, which will be
further investigated.
* Additional studies include an infill geochemical program, a resistivity
survey and a magnetic survey.
Tabakoto Mine
H1-2016 Insights:
* Production remained stable in Q2-2016 compared to the previous quarter --
despite an 8 day general strike against the State -- due to good performance
at both Segala and Kofi, which positively impacted grade milled.
* AISC decreased slightly in Q2-2016 compared to the previous quarter, however
remained above the guidance range, as mining at Tabakoto underground was
restricted to low grade areas due to slow development.
H2-2016 Outlook
* Production and AISC are expected to improve in the second half of 2016 due
to anticipated higher levels of production at Tabakoto underground and Kofi.
Segala should continue to perform in-line with expectations. The focus
remains on continued optimization of the operation by increasing equipment
availability and improving underground mining efficiency, and reducing the
number of expatriates.
* Tabakoto's FY2016 production guidance has remained unchanged at 155-175koz,
as the mine is currently producing in-line with the low end of its guidance
with further improvement expected in the second half of the year. AISC
guidance has been increased from $920-970/oz to $970-1,050/oz to take into
account the issues experienced in H1-2016.
Exploration Activities
* An exploration program was launched in early 2016 to extend the mine lives
of the current underground mines, to test the potential extension of the
Kofi B deposit and to generate new open pit targets on the Kofi trend, which
lies immediately north of Randgold's Loulo property.
* At Kofi B North (an open-pit target) a 244 hole RC drilling program and a
1,311 hole auger drilling program have been completed since the beginning of
the year with drill results currently being received and analyzed.
* Near the Tabakoto underground mine, a shallow 334 hole RC program was
completed on the Fougala and Kreko open-pit targets, with drill results
currently being analyzed. Results to date suggest that the Fougala program
confirmed two mineralized trends that will be evaluated in the second half
of 2016 and the Kreko program successfully targeted a structural intercept
model below laterite.
Ity Mine
H1-2016 Insights:
* Production continued at a trend above the FY-2016 guidance run-rate,
remaining stable in Q2-2016 over the previous quarter as production
benefitted from the cyclical nature of heap leach processing recovery rates.
* AISC slightly increased in Q2-2016 over the previous quarter as sustaining
costs increased due to planned delivery of mobile equipment, while cash
costs per ounce remained stable.
H2-2016 Outlook
* Ity's FY-2016 production guidance has been increased from 65-75koz to
70-80koz to take into account its strong H1 performance, despite the
anticipated slight decrease in production over the remainder of the year due
to the expected grade decline and the cyclical nature of heap leach
processing recovery rates. The AISC guidance remains unchanged at $800-
850/oz.
* The CIL Feasibility Study is on track for the end of October 2016.
Exploration Activities
* In 2016, exploration is focused on drilling previously identified oxide
targets to prolong the life of the heap leach operation and drill new
targets with the aim of delineating additional resources for the CIL
project.
* Furthermore, Endeavour has strategically applied for adjacent exploration
tenements in light of the exploration success achieved at Ity over the
recent years.
* In the Greater Ity area, an 18,000 meter RC and DD program has been
completed and the drill results are currently being received.
* A large auger drilling program was completed and successfully identified
several new targets, which will be drilled in the second half of 2016 and in
2017.
Nzema Mine
H1-2016 Insights:
* Production remained stable in Q2-2016 compared to the previous quarter,
however at a rate below guidance as purchased ore volumes and grades were
less than expected. Ore suppliers continued to ramp-up their operations
following the halt they experienced in late 2015 due to new permitting
requirements imposed on them.
* AISC in Q2-2016 increased over the previous quarter as a result of
processing lower grade stockpiles and the increased cost of purchased ore
due to its price-link to the gold price, while owner mining is performing
slightly above expectations.
H2-2016 Outlook
* Nzema's performance is expected to improve in the second half of the year as
purchased ore tonnage continues to increase (July tonnage and grade are both
up 25% over Q2 monthly average) and Endeavour's own grades are expected to
improve during Q4-2016 as the Adamus pit cutback progresses.
* Nzema's FY-2016 production guidance has been decreased from 110-130koz to
90-100koz and its AISC guidance has been increased from $970-1,020/oz to
$1,050-1,125/oz to take into account the lower purchased ore volumes
encountered during the first half of the year.
Karma Mine in ramp-up phase
* Endeavour's construction, operations, and exploration teams further reviewed
and re-validated the acquisition case assumptions following the close of the
transaction and have concluded the following:
* Production capacity of >100-120kozpa
* AISC potential in the low $700/oz range
* Mine life potential of +10 years
* Mining is performing well with:
* +14% positive reconciliation on ounces on the GG2 orebody
* Current mining costs are $1.4/t, roughly 15% below feasibility study
assumptions
* The mine plan has been amended to accommodate a shift in focus to the
highest grade Rambo pit in priority, expected to start contributing to
production in H1-2017
* Processing has showed high recovery rates, however bottlenecks in the front-
end of the plant limits capacity:
* Above 85% recovery achieved to date, with cells 1 & 2 still delivering
pregnant solution. As such, the overall recovery rate is expected to be
in-line with the 87% estimated in the feasibility study.
* Plant commissioning shows a number of constraints with in particular the
feeder-breaker, limiting the current throughput to 75-80% of nameplate
capacity. Plans are underway to rectify the constraints and modify and
upgrade the front-end of the plant, to increase throughput to nameplate
capacity.
* Remediation of the front-end and other changes are expected to be
completed in mid-2017 with associated capex currently being assessed.
* Processing costs of $7.90/t, expected to reach the feasibility
study rate of $6.60/t once the plant is optimized.
* Current run-rate is roughly 80kozpa, and is expected to reach >110kozpa in
mid-2017
* First gold pour on April 11th with 14koz produced to date during the
ramp-up phase
* 2016 production is estimated to be between 50 to 60koz at AISC of $750-
850/oz
* Endeavour currently expects to declare commercial production in Q4-
2016, maintaining tax exoneration benefits associated with its pre-
production status.
* Personnel will be relocated to an on-site camp to increase security.
* Undertaking a 60,000 meter program at Kao North, with the aim of extending
sterilization and mine life by +2.5 years to +10 years based on reserves.
Production guidance increased with the addition of Karma
* Initial production guidance is maintained, as out-performance at Agbaou and
Ity is expected to compensate for Nzema while Karma increases group 2016
Guidance to 575-610koz.
* AISC guidance is maintained at $870-920/oz, despite increasing sustaining
exploration from $11/oz to $20/oz due to the benefit from removing the
higher cost Youga mine and adding lower cost Karma mine.
* Free cash flow before Houndé and Karma (and before WC, tax and financing
costs) has been revised upward from $90 million to $135 million based on the
increased gold price forecast from $1,150/oz to $1,250/oz for the second
half of the year and including Karma's commercial production.
Table 4: Updated Guidance Production, koz
H1-2016 Initial Revised
2016 2016
(in koz on a 100% basis) Actual Guidance Guidance
---------------------------------------------------------------------------
Agbaou 89 165 - 175 180 - 195
Tabakoto 78 155 - 175 155 - 175
Nzema 40 110 - 130 90 - 100
Ity 43 65 - 75 70 - 80
Youga 8 7 - 8 7 - 8
---------------------------------------------------------------------------
Sub-total 258 502 - 563 502 - 558
Karma (including pre-commercial production) 12 - - - 50 - 60
Removal of Youga (discontinued operation) - - - - (7) - (8)
---------------------------------------------------------------------------
Total 270 502 - 563 545 610
Group selected guidance range 535 - 560 575 - 610
---------------------------------------------------------------------------
Table 5: Updated Guidance AISC, US$/oz
H1-2016 Initial 2016 Revised 2016
(in $/oz) Actual Guidance Guidance
-------------------------------------------------------------------------------
Agbaou 525 650 - 700 550 - 600
Tabakoto 1,066 920 - 970 970 - 1,050
Nzema 1,212 970 - 1,020 1,050 - 1,125
Ity 742 800 - 850 800 - 850
Youga 1,101 980 - 1,030 980 - 1,030
-------------------------------------------------------------------------------
Subtotal Mine-level AISC 849 820 - 870 820 - 870
Karma (excluding pre-commercial n.a. - - - 750 - 850
production*)
Remove Youga (discontinued operation) (1,101) - - - (980) - (1,030)
-------------------------------------------------------------------------------
Mine-level AISC 845 820 - 870 810 - 860
Corporate G&A 44 38 40
Sustaining exploration 12 11 20
-------------------------------------------------------------------------------
Group AISC 901 870 - 920 870 - 920
-------------------------------------------------------------------------------
*Assuming 3 months of commercial production
Table 6: Updated 2016 Free Cash Flow before Working Capital, Tax and Financing
Costs Guidance
assuming a gold price of $1,250/oz for H2-2016 and actuals for H1-2016
(in US$ millions) Initial Guidance Revised Guidance
-------------------------------------------------------------------------------
Revenue (based on production guidance range 630 665
mid-point)
AISC costs (based on AISC guidance range (492) (481)
mid-point)
-------------------------------------------------------------------------------
All-in sustaining margin 138 185
Agbaou secondary crusher ($12m)
Nzema pit wall push-back ($12m)
(48) (50)
Non-sustaining exploration ($16m, increased
from $14m)
Houndé and the Ity CIL projects ($10m)
-------------------------------------------------------------------------------
Free cash flow before Houndé and Karma 90 135
(and before WC, tax and financing costs)
Houndé capex n/a (80)
Karma net pre-production n/a (15)
-------------------------------------------------------------------------------
Free cash flow (before WC, tax and financing n/a 40
costs)
-------------------------------------------------------------------------------
Houndé Project construction progressing on-time and on-budget
* Procurement is approximately 30% complete, with total capital commitments
amounting to $105 million which includes $58 million for mainly long lead
items and $46 million for mining equipment.
* Mining fleet equipment financing, amounting to approximately $38 million
(for equipment valued at $46 million), has been signed with Komatsu Ltd.;
with deliveries commencing in Q3-2016. A further $6 million of equipment
financing for the balance of mining and construction equipment is
anticipated to be engaged with a third party in the near term.
* All long lead-time capital items have been ordered, including the Ball and
Semi-Autogenous Grinding (SAG) mill which will be manufactured by Outotec
(who previously successfully supplied Endeavour's Nzema and Agbaou
projects). Delivery of the mills expected in April 2017.
* The grid power offtake agreement with Sonabel, the national electricity
provider, has been signed, with a 38km 91kv overhead power line and a
dedicated 91/11kv substation. The compensation and clearing of the 91Kv OHPL
is expected to commence in Q4-2016.
* Front End Engineering Design ("FEED") of the processing facility completed.
Commencing detailed design of processing facilities ahead of first concrete
pour in the CIL area of the process plant.
* Land compensation process was successfully completed and resettlement is
underway, with all approvals in place.
* +300 personnel including contractors are currently employed on-site, of
which >90% are Burkinabe in line with Endeavour's objective.
Increased Cash Flow generation
* All-in Sustaining Margin in H1-2016 was $82 million, up 39% year on year,
lifted mainly by lower AISC/oz and greater production as a result of the Ity
acquisition.
* Free Cash Flow (before working capital, tax, financing costs, Houndé capex,
and Karma) was $59 million, ahead of guidance due to higher realized gold
prices and in-line with guidance when rebased at the guidance gold price of
$1,150/oz.
* Non-sustaining capital expenditures (mainly related to Agbaou secondary
crusher and Nzema push-back) of $15 million, in line with guidance.
* While Q1-2016 was negatively impacted by a ($20) million change in working
capital, as planned, working capital returned positive in Q2-2016 at $2
million. Working capital variation should progressively become nearly
neutral by year-end.
* Endeavour received a $65 million cash injection from La Mancha relating to
the True Gold transaction close on April 26, as well as $104 million of net
proceeds from a bought deal financing completed on July 11.
* $40 million voluntary repayment made under the $350 million revolving
corporate facility, resulting in a net drawn amount of $200 million.
Table 7: Simplified Cash Flow Statement
Six months ended, June
30,
-------------------------
(in US$ million) 2016 2015 Variance
-------------------------------------------------------------------------------
Gold Sales, oz 248,379 218,355 +14%
-------------------------------------------------------------------------------
Realized gold price, $/oz 1,225 1,206 +2%
-------------------------------------------------------------------------------
Revenue 304 263 +16%
-------------------------------------------------------------------------------
Cash cost for ounces sold 173 152 +14%
-------------------------------------------------------------------------------
Royalties 14 13 +8%
-------------------------------------------------------------------------------
Corporate G&A 10 8 +25%
-------------------------------------------------------------------------------
Sustaining capital 23 27 (15%)
-------------------------------------------------------------------------------
Sustaining exploration 3 3 0%
-------------------------------------------------------------------------------
AISC Margin 82 59 +39%
-------------------------------------------------------------------------------
Non-sustaining exploration (9) (3) +167%
-------------------------------------------------------------------------------
Non-sustaining capital (15) (9) +67%
-------------------------------------------------------------------------------
Free Cash Flow (before WC, taxes and financing costs, 59 47
Houndé capex and Karma) +26%
-------------------------------------------------------------------------------
Houndé project cash-out (15) (2) +650%
-------------------------------------------------------------------------------
Karma cashflow (2) - n.a.
-------------------------------------------------------------------------------
Free cash flow (before working capital, tax & 42 45
financing costs) (7%)
-------------------------------------------------------------------------------
Working capital (19) (17) +12%
-------------------------------------------------------------------------------
Taxes paid (9) (5) +80%
-------------------------------------------------------------------------------
Interest paid (7) (9) (22%)
-------------------------------------------------------------------------------
Other (hedge, financing fees, foreign exchange (15) (3)
gains/losses and other) +400%
-------------------------------------------------------------------------------
Free Cash Flow (7) 12 n.a.
-------------------------------------------------------------------------------
Cash received for Youga mineral property interests 20 - n.a.
-------------------------------------------------------------------------------
Bridge loan advanced to True Gold (15) - n.a.
-------------------------------------------------------------------------------
True Gold acquisition 4 - n.a.
-------------------------------------------------------------------------------
Transaction and restructuring costs (7) - n.a.
-------------------------------------------------------------------------------
Shares issue relating to La Mancha anti-dilution and 73 - n.a.
share options
-------------------------------------------------------------------------------
RCF, debt and lease repayments (43) (22) n.a.
-------------------------------------------------------------------------------
24 (9) n.a.
Cash movement for the period
-------------------------------------------------------------------------------
Continued reduction in Net Debt
* Endeavour significantly improved its balance sheet, with net debt reduced to
$82 million as of June 30, 2016 compared to $242 million at the same date
last year.
* Following the bought deal financing close on July 11, 2016 Endeavour turned
Net Cash positive with $21 million on a pro-forma basis as at June 30, 2016.
* Endeavour has strong financing and liquidity sources which include its $238
million cash position (following the closure of the bought deal financing),
approximately $50 million of available and anticipated Houndé mine equipment
financing, and $150 million undrawn on the revolving credit facility, in
addition to its strong cash flow generation.
Table 8: Net Debt Reduction, in US$m
July 11, 2016 June 30, March 31, 2016 June 30,
(in US$ million) (Bought deal close) 2016 2015
-------------------------------------------------------------------------------
Cash 134 134 117 53
Net bought deal proceeds 104 - - -
Less: Auramet loan 5 5 - -
Less: Tabakoto equipment 12 12 13 15
finance lease
Less: Drawn portion of 200 200 240 280
$350 million RCF
-------------------------------------------------------------------------------
Net Debt/(Cash) position (21) 82 136 242
-------------------------------------------------------------------------------
Net Debt / EBITDA (LTM) (0.1x) 0.5x 0.8x 1.8x
ratio
-------------------------------------------------------------------------------
Other corporate information and events
* After closing its Vancouver office and relocating its Operations office from
Accra to Abidjan in the first half of the year, Endeavour has decided to
further optimize its functionality by relocating its corporate functions,
including its CEO, to a new corporate headquarters in London, UK.
* Exploration strategic review is on-track to be completed during Q3-2016.
* Endeavour Investor Day in Abidjan - week of November 14(th). Management
welcomes both institutional investors and analysts to join the tour to gain
additional insights into its operational performance, exploration potential,
the construction of the Houndé project, and the upcoming Ity CIL Feasibility
Study, among other topics. The tour will include a visit of both the Ity and
Agbaou mines in Côte d'Ivoire, with the possibility of visiting Endeavour's
other operations for those wishing to extend their trip. Guests are
requested to arrive in Abidjan, Côte d'Ivoire, on Monday November 14, 2016.
A more detailed itinerary will be sent in due course to those interested in
attending. Please RSVP to investorday(at)endeavourmining.com
Conference call and live webcast
Management will host a conference call and live webcast on on Friday, July 29 at
8:30am (EST) to discuss the Company's financial and operational results.
The conference call and live webcast are scheduled on Friday July 29, 2016, at:
5:30am in Vancouver
8:30am in Toronto and New York
1:30pm in London
8:30pm in Hong Kong and Perth
The live webcast can be accessed through the following link:
http://edge.media-server.com/m/p/5bazb3w2
Analysts and interested investors are also invited to participate and ask
questions using the dial-in numbers below:
International: +1646 254 3362
North American toll-free: 1 877 280 2296
UK toll-free: 0 800 279 5004
Australian toll-free: 1 800 027 830
Confirmation code: 5157374
A replay of the conference call and webcast will be available on Endeavour's
website.
Qualified Persons
Adriaan "Attie" Roux, Pr.Sci.Nat, Endeavour's Chief Operating Officer, is a
Qualified Person under NI 43-101, and has reviewed and approved the technical
information related to mining operations in this news release.
Contact Information
Vincent Benoit DFH Public Affairs in Toronto
EVP - Strategy & Business Development John Vincic, Senior Advisor
+33 (0)1 70 38 36 96 (416) 206-0118 x.224
vbenoit(at)endeavourmining.com jvincic(at)dfhpublicaffairs.com
Martino De Ciccio Brunswick Group LLP in London
VP - Strategy & Investor Relations Carole Cable, Partner
+33 (0)1 70 38 36 95 +44 7974 982 458
mdeciccio(at)endeavourmining.com ccable(at)brunswickgroup.com
About Endeavour Mining Corporation
Endeavour Mining is a TSX-listed intermediate gold producer, focused on
developing a portfolio of high quality mines in the prolific West-African
region, where it has established a solid operational and construction track
record.
Endeavour is ideally positioned as the major pure West-African multi-operation
gold mining company, operating 5 mines in Côte d'Ivoire (Agbaou and Ity),
Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema). In 2016, it expects to
produce between 575koz and 610koz at an AISC of US$870 to US$920/oz. Endeavour
is currently building its Houndé project in Burkina Faso, which is expected to
commence production in Q4-2017 and to become its flagship low-cost mine with an
average annual production of 190koz at an AISC of US$709/oz over an initial 10-
year mine life based on reserves. The development of the Houndé project is
expected to lift Endeavour's group production +900kozpa and decrease its average
AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives
to +10 years.
Endeavour Mining | Executive Office | Bureau 76, 7 Boulevard des Moulins,
Monaco 98000
This news release contains "forward-looking statements" including but not
limited to, statements with respect to Endeavour's plans and operating
performance, the estimation of mineral reserves and resources, the timing and
amount of estimated future production, costs of future production, future
capital expenditures, and the success of exploration activities. Generally,
these forward-looking statements can be identified by the use of forward-looking
terminology such as "expects", "expected", "budgeted", "forecasts", and
"anticipates". Forward-looking statements, while based on management's best
estimates and assumptions, are subject to risks and uncertainties that may cause
actual results to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to: risks related to
the successful integration of acquisitions; risks related to international
operations; risks related to general economic conditions and credit
availability, actual results of current exploration activities, unanticipated
reclamation expenses; changes in project parameters as plans continue to be
refined; fluctuations in prices of metals including gold; fluctuations in
foreign currency exchange rates, increases in market prices of mining
consumables, possible variations in ore reserves, grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated; accidents,
labour disputes, title disputes, claims and limitations on insurance coverage
and other risks of the mining industry; delays in the completion of development
or construction activities, changes in national and local government regulation
of mining operations, tax rules and regulations, and political and economic
developments in countries in which Endeavour operates. Although Endeavour has
attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking statements, there may
be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Please refer to Endeavour's most recent
Annual Information Form filed under its profile at www.sedar.com for further
information respecting the risks affecting Endeavour and its business. AISC,
all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in
sustaining margin, free cash flow, net free cash flow, free cash flow per share,
net debt, and adjusted earnings are non-GAAP financial performance measures with
no standard meaning under IFRS, further discussed in the section Non-GAAP
Measures in the most recently filed Management Discussion and Analysis for the
quarter ended March 31, 2016.
View Presentation in PDF Format:
http://hugin.info/171882/R/2031795/756191.pdf
View News Release in PDF Format:
http://hugin.info/171882/R/2031795/756177.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Endeavour Mining Corporation via GlobeNewswire
[HUG#2031795]
Unternehmensinformation / Kurzprofil:
Datum: 29.07.2016 - 00:50 Uhr
Sprache: Deutsch
News-ID 486221
Anzahl Zeichen: 44553
contact information:
Town:
George Town, Grand Cayman
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 253 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Endeavour Reports Second Quarter 2016 Results; On-Track to Meet Full-Year Guidance"
steht unter der journalistisch-redaktionellen Verantwortung von
Endeavour Mining Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
