Endeavour accelerates cash flow generation in Q3 and significantly improves liquidity sources
(Thomson Reuters ONE) -
Endeavour accelerates cash flow generation in Q3 and significantly improves
liquidity sources
View News Release in PDF Format
View Q3 Presentation in PDF Format
Q3 Highlights:
* Produced 146koz in Q3-2016, up 6% over Q2-2016 with increases expected
across all mines in Q4-2016, remaining on track to meet full year guidance
* All-in Sustaining Cost ("AISC") continued to trend lower, achieving $898/oz
in Q3-2016
* All-in sustaining margin increased to $55m in Q3-2016, lifted by increased
production, lower costs, and higher gold prices
* Free Cash Flow (before WC, tax & financing costs, Houndé and Karma) of $41m
for Q3-2016, up 41% over Q2-2016 and a three-fold increase over Q3-2015
* Well positioned to finance growth projects with $397m in available sources
of financing and liquidity, as Net Debt was decreased from $242m to $14m
over the last 12-months
* Adjusted net earnings from continuing operations increased by 19% over the
previous quarter to $33m and 39% on a per share basis
* Declared commercial production at Karma mine on October 1, 2016
* Houndé construction progressing on-time and on-budget, with 60% of capital
committed
* Two new discoveries near Ity mine demonstrate potential of underexplored
land package in Birimian Greenstone Belt
George Town, October 31, 2016 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is
pleased to announce its financial and operating results for the third quarter
ended September 30, 2016, with highlights provided in the table below.
Table 1: Key Operational and Financial Highlights
(All 2016 Quarter ended, Nine months ended,
amounts exclude--------------------------------- -----------------------------
discontinued
Youga
operation, Sept. June, Sept. Sept. Sept. Change
while 2015 30, 2016 2016 30, 2015 30, 2016 30, 2015
amounts include
Youga.)
-------------------------------------------------------------------------------
Gold 146,425 138,487 124,893 408,565 379,802 +8%
Production, oz*
Realized Gold 1,328 1,257 1,121 1,260 1,178 +7%
Price, $/oz
AISC, $/oz 898 901 908 896 917 (2%)
-------------------------------------------------------------------------------
All-in
Sustaining 430 356 213 364 261 +39%
Margin, $/oz
All-in
Sustaining
Margin, $m 55 45 24 137 98 +40%
Free Cash Flow,
$m
(before WC, tax 41 29 14 100 72 +39%
& financing
costs, Houndé
and Karma)
Net Debt At
Period End, $m 14 83 242 14 242 (94%)
-------------------------------------------------------------------------------
*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 ending September 30, 2016.
Sébastien de Montessus, President & CEO, stated: "There was continued momentum
in our business in the third quarter as consistent operational performance
helped us remain on track to keep our AISC below $900 for the year. Cash flow
generation remains a top priority and the collective performance of our
operating mines is contributing to an increase in free cash flow. Our results
year to date, combined with our expectation for stronger performance from each
of our five operating mines in the fourth quarter, have us well-positioned to
meet our key guidance metrics for 2016.
Longer-term, we remain focused on delivering value through ongoing exploration
and project development in West Africa which is supported by our strong
liquidity and financing sources. The new Ity discoveries we made during the
quarter are proof of the potential of what we believe is one of the most
promising under-explored land packages in the region and we look forward to the
upcoming results of the Ity feasibility study. The advancement of our Houndé
project on time and on budget and the achievement of commercial production at
Karma are more evidence of our project development capabilities."
Production continued to increase in Q3 with a larger lift expected in Q4
* Q3-2016 production from continuing operations increased in line with
expectations, up 6% over the previous quarter due to the ramp-up of Karma,
continued strong performance from the low-cost Agbaou mine and improved
performance from Nzema.
* AISC for continuing operations continued to trend lower, averaging $898/oz
in Q3-2016.
* Q4-2016 is expected to be the strongest quarter of the year with forecast
improvements across all of mining operations following the end of the rainy
season and the benefit of Karma commercial production.
* Endeavour produced 408koz from continuing operations since the beginning of
the year at an average AISC of $896, remaining on track to achieve its full
year guidance of 575-610koz at an AISC of $870-920/oz.
Table 2: Gold Production from Continuing Operations, koz
Quarter ended, Nine months ended Sept
30,
------------------------- -----------------------
(All amounts in koz, on a Q3-2016 Q2-2016 Q3-2015 2016 2015 Change
100% basis)
-------------------------------------------------------------------------------
Agbaou 49 46 44 138 130 +6%
Tabakoto 37 39 36 115 110 +5%
Nzema 24 20 27 64 87 (26%)
Ity 15 21 - 58 - n/a
Karma (pre-commercial 20 12 - 33 - n/a
production)
-------------------------------------------------------------------------------
Production from continuing 146 138 108 408 327 +25%
operations
Youga (divested in March - - 17 8 53 n/a
2016)
-------------------------------------------------------------------------------
Total Production 146 138 125 416 380 +9%
-------------------------------------------------------------------------------
Table 3: Group All-In Sustaining Costs, US$/oz
Quarter ended, Nine months ended Sept
30,
--------------------------- -----------------------
(All amounts in US$/oz, on Q3-2016 Q2-2016 Q3-2015 2016 2015 Change
a 100% basis)
-------------------------------------------------------------------------------
Agbaou 550 525 583 534 592 (10%)
Tabakoto 1,071 1,061 1,032 1,067 1,048 +2%
Nzema 1,136 1,266 1,011 1,184 1,046 +13%
Ity 724 775 - 737 - n/a
Youga (divested in March Excluded Excluded 952 Excluded 888 n/a
2016)
-------------------------------------------------------------------------------
Mine-level AISC 831 845 859 839 870 (4%)
Corporate G&A 47 44 39 43 35 +23%
Sustaining exploration 20 12 10 14 12 +17%
-------------------------------------------------------------------------------
Group AISC 898 901 908 896 917 (2%)
-------------------------------------------------------------------------------
Agbaou Mine
Q3-2016 Insights:
* Agbaou continued to perform strongly in Q3-2016 despite the negative impact
of the rainy season, with production up 6% compared to the previous quarter.
* The successful commissioning of the secondary crusher in July provided the
flexibility to process higher grade transitional ore, which represented 15%
of total ore processed during the quarter.
* The aforementioned higher gold grades and gold-in-circuit balance
optimization compensated for lower processed tonnage and recovery rate.
* Total cash costs slightly decreased over the previous quarter while AISC
increased due to greater waste capitalization.
Q4-2016 Outlook
* Production is expected to increase, benefitting from the improved operating
conditions following the end of the rainy season and mixing of greater
quantities of higher grade transitional ore.
Exploration Activities
* The 2016 exploration campaign is focused on the North pit and South pit
extensions, the Agbaou South target, and on generating targets beyond the
current resource boundaries. The drill program commenced in April based on
previous geophysics and soil geochemistry results.
* At the end of September 2016, over 12,900 meters had been drilled. This
represents approximately 25% of the exploration program which is expected to
be completed by mid-2017.
* Initial drill results suggest the extension of mineralized zones, which will
be followed up with further drilling.
Tabakoto Mine
Q3-2016 Insights:
* Production decreased slightly in Q3-2016 compared to the previous quarter
mainly due to a reduction in mill throughput caused by maintenance shutdowns
and a reduction in grade at Segala as foreseen by the mine plan which is
expected to increase in Q4-2016.
* Improved equipment availability and underground mining efficiency resulted
in a 7% increase in total ore tonnage mined, marking the first time in over
a year that mine extraction was greater than mill throughput.
Q4-2016 Outlook
* Production and AISC are expected to improve in the fourth quarter due to
anticipated higher levels of mill throughput and higher grades at Segala.
* In addition, Q4 is expected to benefit from the end of the cyclical rainy
season which impacts ore handling characteristics.
Exploration Activities
* A first exploration program on open-pit targets, consisting of 72,900 meters
of Reverse Circulation (RC) and Diamond Drilling (DD) and 1,311 Auger holes,
was completed in Q3-2016.
* At the Kofi North open-pit target, a drilling program consisting of 244 RC
and 1,311 Auger holes was completed and drill results are currently being
analyzed.
* At the Tabakoto, Fougala and Kreko open-pit targets, an initial shallow 344
hole RC program was completed during Q3-2016, confirming two mineralized
trends. A second phase drill program was launched to follow-up.
* Underground exploration programs are ongoing with 22,400 meters of diamond
drilling completed to date at the Tabakoto and Segala underground mines.
Ity Mine
Q3-2016 Insights:
* As expected and previously guided, production decreased due to the impact of
the rainy season. This resulted in lower stacked tonnage, decreased grades
due to the processing of lower-grade stockpiles and higher mining costs
related primarily to having to pump more water out of the mines.
* Despite the rainy season AISC decreased over the previous quarter due to a
lower operating strip ratio and cost reduction programs.
* During the quarter, pre-strip mining began at the Zia pit which has started
to contribute to production in Q4-2016.
Q4-2016 Outlook
* Production is expected to increase in line with its historical cyclical
pattern after the rainy season.
* The CIL Definitive Feasibility Study remains on track to be announced in
November 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.
* Since the start of 2016, a total of 44,000 meters have been drilled and the
Bakatouo and Colline Sud discoveries have been announced in recent weeks.
* A maiden resource estimate is expected for the Bakatouo and Colline Sud
discoveries in Q4-2016, both of which have the potential to extend mine life
at the existing heap leach operations and to improve the economics of the
Ity CIL project.
* Endeavour intends to resume exploration in and around the Ity mine after the
end of the rainy season in November, with up to six drill rigs expected to
be operational. A follow-up 3,700 meter RC and DD drilling program is
planned on Colline Sud to test the extensions and conduct infill drilling.
An 8,000 meter DD drilling campaign is also planned on Bakatouo.
* In addition, a 21,400 meter Auger drilling program was completed in Q3-
2016. This program identified several new targets, within five kilometers of
the existing mill, which are also being explored.
* In September 2016, an 80km underexplored portion of the Birimian corridor
along the Ity trend was secured for future exploration.
Nzema Mine
Q3-2016 Insights:
* Nzema's performance improved significantly in Q3-2016, with production up
20% and AISC down 10% compared to the previous quarter. This improvement was
due to the continued ramp-up of purchased ore with better grades from more
suppliers; improved grades from the Adamus pit ahead of the cut-back
completion and contribution from the Nugget Hill deposit. AISC however
remains high due to the impact of processing lower grade stockpiles to help
fill the mill while the Adamus cut-back is still in progress.
* The Adamus pit push-back is progressing on time and on budget with 3Mt of a
planned 4.5Mt already completed.
Q4-2016 Outlook
* Both production and AISC are expected to continue to improve due to higher
expected grades from the Adamus pit and purchased ore tonnage continues to
increase.
* The Nugget Hill satellite deposit is expected to continue to further
complement production, although its recovery rate is lower than that of the
Adamus pit.
Exploration Activities
* No significant exploration activity is underway.
Karma Mine: Commercial Production Started
Q3-2016 Insights:
* Commercial production was declared on October 1, 2016. Pre-commercial
production revenue and costs have been offset against the mineral interest
on the balance sheet.
* Processing capacity has increased from 1.5mtpa in June to 2.5mtpa in
September.
* Production continued to ramp up during Q3-2016 and is currently at the
annual run-rate of approximately 90koz of gold per annum.
* The low production costs achieved to date confirm Karma's potential to have
AISC in the low $700s, in line with Endeavour's acquisition case. Mining and
processing costs during the quarter amounted to $1.30/t moved and $8.81/t
stacked, which compared favorably to DFS assumptions.
* Recovery rates have reached 90%, which is higher than the forecast recovery
rates of 87% in the DFS.
* While ore extraction is currently from the GoulaGou II pit, the mine plan
has been shifted to focus on the highest grade Rambo pit, with pre-stripping
activities having started at the end of Q3-2016 and first contribution to
production expected in Q1-2017.
Outlook
* The outlook for Karma remains positive with production expected to increase
in Q4-2016 due primarily to throughput increases at the processing facility,
which is expected to increase to above 3.0mtpa, having a positive impact on
cash flows in the upcoming quarter.
* Capacity at the process facility is expected to further increase to 4.0mtpa
by mid-2017 following the replacement of the front-end and other plant
optimization activities. The capex for process improvements is expected to
be $32 million with plans to incur these costs over the coming nine months.
Exploration Activities
* Exploration at Karma is underway with a target of increasing mine life to
+10 years by the end of 2016.
* A 60,000 meter drilling program at Kao North began in July 2016 with the
goal of extending mine life by +2.5 years. This drilling program is expected
to be completed by the end of 2016.
Houndé Project construction progressing on-time and on-budget
* The Houndé project construction is progressing as planned, with 22%
complete.
* Procurement is already 60% complete with $170 million already committed and
$61 million incurred.
* Full back-up power station has been tendered with CAT 26MW of redundancy.
Financing negotiations are currently underway, and are expected to conclude
during Q4-2016.
* CIL ring beam concrete pour was achieved in early August 2016, two weeks
ahead of schedule.
* Mining fleet equipment financing was signed with Komatsu Ltd., with some
deliveries already on-site, and machinery commissioned and operational.
* The construction of the water harvest dam has been completed, and water is
already being pumped to the water storage dam two months ahead of schedule.
* Construction of the 300-person permanent accommodation village is 52%
complete and on-schedule for completion in Q1-2017.
* Procurement has been completed for the 38km long, 91kv overhead power line
and clearing commenced on schedule in October 2016.
* Detailed engineering of the processing facility is progressing ahead of
schedule and is 65% complete. It is scheduled to be completed in mid-
November 2016.
* 1,058 personnel including contractors are currently employed on-site, of
which >96% are Burkinabe.
* Over 800,000 man-hours have been worked without a Lost Time Injury (LTI) or
Medical Treatment Injury (MTI).
* The land compensation process has been successfully completed and
resettlement is underway, with all approvals in place.
Increased Cash Flow generation
* All-in Sustaining Margin for the first nine months of 2016 increased by 65%
over the previous year (excluding discontinued Youga operation), lifted
mainly by greater production due to the out-performance of the low-cost
Agbaou mine, the addition of the Ity mine, and a higher realized gold price.
* $100 million of Free Cash Flow (before WC, taxes and financing costs, Houndé
capex and Karma) for the first nine months of 2016, up significantly over
the $72 million over the same period of 2015. This improvement is notably
due to the increased overall portfolio quality brought by the acquisition of
the low-AISC Ity mine (which generated an operating cash flow of $21 million
in the first 9-months of 2016) and the subsequent sale of the high-AISC end
of life Youga mine (which in contrast generated a lower operating cash flow
of $12 million over the first 9-months of 2015).
* Free Cash Flow is already well on-track to meet the 2016 full year guidance
of $135 million[1] with a stronger Q4-2016 in perspective due to:
* The expected aforementioned increase in performance across all mines.
* Karma's positive contribution to the Group's consolidated free cash flow
now that it has entered commercial production (while under pre-
production accounting treatment, Karma's Q3-2016 free cash flow of $9
million was offset against the mineral interest as a balance sheet
item).
* Less mine-related non-sustaining capital required as main capital spend
programs have already been completed for the year (Agbaou secondary
crusher, Ity DFS, Nzema push-back)
* Nzema being hedge-free as at the end of Q3-2016, following close of its
historic hedge book with 20koz delivered since the start of the year
which resulted in a realized loss of $9 million.
* Due to seasonal effects, working capital movement started the year strongly
negative with a $20 million outflow in Q1-2016 following a $26 million
inflow in Q4-2015. This movement is expected to progressively become near-
neutral by year-end.
Table 4: Simplified Cash Flow Statement
9 months ended Sept
30,
----------------------
(in US$ million) 2016 2015
-------------------------------------------------------------------------------
Gold Sales, oz 376 327
-------------------------------------------------------------------------------
Realized gold price, $/oz 1,260 1,178
-------------------------------------------------------------------------------
Revenue 474 385
-------------------------------------------------------------------------------
Cash cost for ounces sold (259) (227)
-------------------------------------------------------------------------------
Royalties (22) (19)
-------------------------------------------------------------------------------
Corporate G&A (16) (13)
-------------------------------------------------------------------------------
Sustaining capital (34) (39)
-------------------------------------------------------------------------------
Sustaining exploration (6) (5)
-------------------------------------------------------------------------------
AISC Margin 137 83
-------------------------------------------------------------------------------
Non-sustaining capital (20) (17)
-------------------------------------------------------------------------------
Non-sustaining exploration (17) (4)
-------------------------------------------------------------------------------
Operating cash flow from Youga discontinued operation 0 12
-------------------------------------------------------------------------------
Free Cash Flow before mine WC, taxes and financing 100 72
costs, Houndé capex and Karma
-------------------------------------------------------------------------------
Hounde project costs (45) (5)
-------------------------------------------------------------------------------
Karma proceeds from sales less mining costs capitalized (1) 0
and capital expenditure
-------------------------------------------------------------------------------
Change in projects working capital (24) 0
-------------------------------------------------------------------------------
Free Cash Flow before mine working capital, tax & 30 68
financing costs
-------------------------------------------------------------------------------
Operating working capital changes as per statement of (19) (21)
cash flows
-------------------------------------------------------------------------------
Taxes paid (12) (6)
-------------------------------------------------------------------------------
Interest paid (10) (9)
-------------------------------------------------------------------------------
Cash settlements on hedge programs, gold collar premiums (15) (4)
and share appreciation rights
-------------------------------------------------------------------------------
Other (foreign exchange gains/losses and other) (4) (16)
-------------------------------------------------------------------------------
Free Cash Flow before other items (31) 12
-------------------------------------------------------------------------------
Cash received for Youga mineral property interests (net) 22 0
-------------------------------------------------------------------------------
Bridge loan advanced to True Gold (15) 0
-------------------------------------------------------------------------------
True Gold cash acquired, less acquisition COC payments, (2) 0
less acquisition expenses
-------------------------------------------------------------------------------
Restructuring costs (18) 0
-------------------------------------------------------------------------------
Net equity proceeds* 180 0
-------------------------------------------------------------------------------
RCF, debt and lease repayments (109) (42)
-------------------------------------------------------------------------------
Cash movement for the period 28 (30)
-------------------------------------------------------------------------------
*Includes the La Mancha anti-dilution proceeds with True Gold, Bought Deal
proceeds, share option exercise, net of equity linked payments
(SARs and PSU's)
Continued reduction in Net Debt
* Endeavour significantly improved its balance sheet, with net debt reduced to
$14 million as of September 30, 2016 compared to $242 million at the same
date last year. This was due to
* $180 million of net equity proceeds received since the beginning of the
year, which include the La Mancha anti-dilution proceeds related to the
True Gold acquisition, Bought Deal proceeds, share option exercise, net
of equity linked payments (SARs and PSU's)
* $120 million voluntary repayment made under the $350 million revolving
corporate facility, resulting in a net drawn amount of $140 million. In
addition, the $5 million Auramet loan, previously drawn by True Gold,
was also repaid in Q3-2016.
* Endeavour has strong financing and liquidity sources of $397 million which
include its $137 million cash position, approximately $50 million of
available and anticipated Houndé mine equipment financing, and $210 million
undrawn on the revolving credit facility, in addition to its strong cash
flow generation.
Table 5: Net Debt Reduction, in US$m
September 30, June 30, 2016 September 30,
(in US$ million) 2016 2015
-------------------------------------------------------------------------------
Cash 137 134 32
Less: Auramet loan - 5 -
Less: Equipment finance lease 11 12 14
Less: Drawn portion of $350 million 140 200 260
RCF
-------------------------------------------------------------------------------
Net Debt/(Cash) position 14 83 242
-------------------------------------------------------------------------------
Net Debt / EBITDA (LTM) ratio 0.06x 0.50x 1.72x
-------------------------------------------------------------------------------
Adjusted Net Earnings per Share
* Q3-2016 adjusted net earnings from continuing operations increased by 19%
over the previous quarter to $33m and 39% on a per share basis.
* Adjustments made to the net earnings are mainly related to the divestment of
Youga mine, transaction and restructuring costs, and foreign exchange gains
and losses.
Table 6: Net Earnings and adjusted earnings
Three months ended Nine months ended
------------------------------------------ ------------------
($ in millions Sept. Sept 30, Sept 30,
except per share Sept.30, 2016 June 30, 2016 30, 2015 2016 2015
amounts)
-------------------------------------------------------------------------------
Total net 24 (15) 7 17 57
earnings
Less 9 43 1 56 (15)
adjustments*
-------------------------------------------------------------------------------
Adjusted net
earnings from 33 28 8 73 43
continuing
operations
Less portion
attributable to 10 14 9 22 14
non-controlling
interests
-------------------------------------------------------------------------------
Attributable to 23 14 (8) 51 29
shareholders
Divided by
weighted average 92 78 41 76 41
number of O/S
shares
-------------------------------------------------------------------------------
Adjusted net
earnings per
share (basic) 0.25 0.18 (0.20) 0.67 0.70
from continuing
operations
-------------------------------------------------------------------------------
*For more details, see Company MD&A.
Other corporate information and events
* The exploration strategic review is on-track to be published in November
2016.
* Endeavour will be hosting a site visit for investors and analysts in
Abidjan, Côte d'Ivoire, from November 14 to 17, 2016, including trips to the
Ity and Agbaou mines. Presentations to be delivered during the site visit
will be made available ahead of time on Endeavour's website.
Conference call and live webcast
Management will host a conference call and live webcast today to discuss the
Company's financial and operational results.
The conference call and live webcast are scheduled on Monday October 31, 2016,
at:
5:30am in Vancouver
8:30am in Toronto and New York
12:30pm in London (Note the daylight saving time change)
8:30pm in Hong Kong and Perth
The live webcast can be accessed through the following link:
http://edge.media-server.com/m/p/bte6fibr
Analysts and interested investors are also invited to participate and ask
questions using the dial-in numbers below:
International: +1646 254 3388
North American toll-free: 1877 280 2296
UK toll-free: 0800 279 4841
Confirmation code: 5019756
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
Martino De Ciccio DFH Public Affairs in Toronto
VP - Strategy & Investor Relations John Vincic, Senior Advisor
+33 (0)1 70 38 36 95 (416) 206-0118 x.224
mdeciccio(at)endeavourmining.com jvincic(at)dfhpublicaffairs.com
Brunswick Group LLP in London
Carole Cable, Partner
+44 7974 982 458
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.
Corporate Office: 5 Young St, Kensington, London W8 5EH, UK
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.
Appendix 1: Production and Cost Details by Mine
On a quarterly basis
Agbaou Nzema Tabakoto Ity
----------------------- ----------------------- -------------------------- -----------------
(on a 100% Unit Q3-2016 Q2- Q3- Q3-2016 Q2- Q3- Q3-2016 Q2-2016 Q3 2015 Q3-2016 Q2
basis) 2016 2015 2016 2015 2016
-----------------------------------------------------------------------------------------------------------------
Physicals
Total tonnes
mined - 000t 6,877 5,918 5,037 2,848 1,852 1,323 1,569 1,704 2,129 948 1,584
OP(1)
Total ore 000t 651 654 706 222 213 231 160 148 123 200 383
tonnes - OP
Open pit W:t
strip ore 9.6 8.0 6.1 11.8 7.7 4.7 8.8 10.5 16.3 3.7 3.1
ratio(1)
Total tonnes 000t - - - - - - 302 315 377 - -
mined - UG
Total ore 000t - - - - - - 238 221 255 - -
tonnes - UG
Total tonnes 000t 709 743 746 424 450 450 381 399 408 271 304
milled
Average gold g/t 2.2 2.2 2.0 2.4 1.6 2.2 3.1 3.3 3.0 1.9 2.1
grade milled
Recovery % 96% 97% 96% 82% 86% 85% 95% 95% 93% 91% 101%
rate
Gold ounces oz 49,384 46,295 43,802 24,279 19,800 27,405 37,019 39,372 36,373 15,334 20,729
produced
Gold sold oz 51,308 47,638 43,304 23,526 19,827 28,072 37,324 39,156 37,298 15,349 20,981
Unit cost
analysis
Mining costs $/t 2.3 1.9 2.6 4.2 5.4 5.3 3.8 3.8 3.5 4.1 2.8
- Open pit mined
Mining costs $/t
- mined - - - - - - 52.6 50.0 49.7 - -
Underground
Processing $/t
and milled 7.1 7.1 6.0 14.2 12.3 14.0 22.6 21.2 24.4 13.2 15.9
maintenance
Site G&A $/t 4.8 4.6 4.5 6.2 6.3 6.1 12.3 11.3 15.7 13.1 7.1
milled
Cash cost
details
Mining costs
- Open $000s 15,550 11,008 13,189 11,857 9,992 6,996 5,892 6,527 7,541 3,878 4,450
pit(1)
Mining costs $000s - - - - - - 15,880 15,740 18,727 - -
-Underground
Processing
and $000s 5,043 5,312 4,504 6,032 5,541 6,309 8,600 8,470 9,957 3,588 4,841
maintenance
Site G&A $000s 3,382 3,396 3,385 2,620 2,837 2,748 4,680 4,519 7,815 3,538 2,154
Purchased $000s - - - 7,817 5574 8,490 - - - - -
ore at Nzema
Inventory
adjustments $000s (1,826) 1,038 1,217 (3,911) (670) - (1,666) (2,815) (16,336) (4,003) 1,187
and other(2)
Cash costs
for ounces $000s 22,149 20,754 22,295 24,415 23,274 24,543 33,386 32,441 27,704 7,001 12,632
sold
Royalties $000s 2,761 2,037 1,748 1,651 1,322 1,768 2,962 2,951 2,493 832 919
Sustaining $000s 3,324 2,206 1,187 670 506 2,083 3,610 6,134 8,302 3,276 2,709
capital
Cash cost
per ounce $/oz 432 436 515 1,038 1,174 874 894 829 743 456 602
sold
| | | | | | | | | | | | | | | | |
Mine-level | | | | | | | | | | | | | | | | |
AISC per| $/oz | | 550 | 525 | 583 | | 1,136 |1,266 |1,011 | | 1,071 | 1,061 | 1,032 | | 724 | 775 |
ounce sold | | | | | | | | | | | | | | | | |
-------------+------+-+-------+------+------+-+-------+------+------+-+-------+-------+--------+-+-------+------+
1) Includes waste capitalized 2) Includes waste capitalized adjustment
For the 9 months period ended 2016 and 2015
Agbaou Nzema Tabakoto Ity(3)
----------------- ----------------- ------------------ ---------
9- 9- 9- 9- 9- 9-months 9-
(on a 100% Unit months months months months months 2015 months
basis) 2016 2015 2016 2015 2016 2016
--------------------------------------------------------------------------------------
Physicals
Total tonnes
mined - 000t 18,864 15,331 6,410 6,707 5,505 6,909 4,630
OP(1)
Total ore 000t 2,123 2,065 712 1,031 454 383 870
tonnes - OP
Open pit W:t
strip ore 7.9 6.4 8.0 5.5 11.1 17.0 4.3
ratio(1)
Total tonnes 000t - - - - 977 1,227 -
mined - UG
Total ore 000t - - - - 691 794 -
tonnes - UG
Total tonnes 000t 2,106 1,917 1,333 1,337 1,186 1,195 878
milled
Average gold g/t 2.2 2.2 1.8 2.3 3.2 3.1 2.2
grade milled
Recovery % 97% 97% 85% 87% 94% 93% 94%
rate
Gold ounces oz 138,444 129,633 63,836 87,226 114,933 109,521 58,387
produced
Gold sold oz 139,380 128,921 63,462 87,878 114,750 110,227 58,294
Unit cost
analysis
Mining costs $/t 2.2 2.6 4.8 4.6 3.5 2.7 3.0
- Open pit mined
Mining costs $/t
- mined - - - - 48.5 40.3 -
Underground
Processing $/t
and milled 6.7 6.8 12.9 14.8 21.4 22.9 15.2
maintenance
Site G&A $/t 4.7 6.2 6.6 6.7 12.3 15.7 10.2
milled
Cash cost
details
Mining costs
- Open $000s 40,883 40,098 30,958 30,702 19,107 18,327 13,998
pit(1)
Mining costs $000s - - - - 47,356 49,407 -
-Underground
Processing
and $000s 14,143 12,998 17,151 19,790 25,377 27,344 13,382
maintenance
Site G&A $000s 9,813 11,866 8,746 8,992 14,568 20,159 8,955
Purchased $000s - - 17,162 26,250 - - -
ore at Nzema
Inventory
adjustments $000s (4,873) (4,877) (4,284) (9,640) (9,672) (24,492) (3,317)
and other(2)
Cash costs
for ounces $000s 59,966 60,085 69,733 76,094 96,736 90,745 33,018
sold
Royalties $000s 6,531 5,431 4,198 5,890 8,613 7,731 2,683
Sustaining $000s 7,973 10,801 1,212 9,942 17,112 17,024 7,270
capital
Cash cost
per ounce $/oz 430 466 1,099 866 843 823 566
sold
| | | | | | | | | | | | |
Mine-level | | | | | | | | | | | | |
AISC per| $/oz | | 534 | 592 | | 1,184 | 1,046 | | 1,067 | 1,048 | | 737 |
ounce sold | | | | | | | | | | | | |
-------------+------+-+-------+-------+-+-------+-------+-+-------+--------+-+-------+
1) Includes waste capitalized 2) Includes waste capitalized adjustment 3) Ity's
production and AISC is excluded for the pre-November 28, 2015 acquisition
period.
--------------------------------------------------------------------------------
[1]Based on Free Cash Flow before WC, taxes and financing costs, Houndé capex
and Karma, as revised upward in the Q2-2016 financials, based on H1-2016
realized gold price of $1,225/oz and $1,250/oz for H2-2016, using mid-point
production and AISC guidance.
View Q3 Presentation in PDF Format:
http://hugin.info/171882/R/2052838/768370.pdf
View News Release in PDF Format:
http://hugin.info/171882/R/2052838/768359.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Endeavour Mining Corporation via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 31.10.2016 - 12:22 Uhr
Sprache: Deutsch
News-ID 503839
Anzahl Zeichen: 50634
contact information:
Town:
George Town, Grand Cayman
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 223 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Endeavour accelerates cash flow generation in Q3 and significantly improves liquidity sources"
steht unter der journalistisch-redaktionellen Verantwortung von
Endeavour Mining Corporation (Nachricht senden)
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