Endeavour Posts Record Performance in Q4, Meets 2016 Guidance and Expects Further Production Growth and AISC Reduction in 2017
(Thomson Reuters ONE) -
Unaudited Preliminary Financial and Operating Results
Endeavour Posts Record Performance in Q4, Meets 2016 Guidance and Expects
Further Production Growth and AISC Reduction in 2017
View News Release in PDF Format
Q4 and Full Year 2016 Highlights:
* Record Q4 performance with production of 175koz, up 20% over previous
quarter, and AISC of circa $865/oz, down 4%
* 2016 guidance achieved with record production of 584koz, up 13% on prior
year, and record low AISC of circa $895/oz, down 3%
* 2016 Free Cash Flow (before growth projects, WC, tax and financing cost)
increased by 60% to circa $135m, in line with guidance
* Year-end Net Debt decreased from $144m to $25m
* Well positioned to finance growth projects with $335m in available sources
of financing and liquidity
2017 Outlook:
* Gold production expected to increase to 600-640koz, excluding Houndé, and
AISC expected to decrease further to $860-905/oz
* Free Cash Flow (before growth projects, WC, tax and financing cost) expected
to increase to $150m, based on the 2016 realized gold price of circa
$1,240/oz
* Continued strong focus on internal growth opportunities:
* Houndé construction remains on-time and on-budget; first gold pour
expected in Q4
* Ity Feasibility Study expected to improve with inclusion of high-grade
discoveries
* 5-year exploration strategy implemented, 2017 budget increased to $40m
George Town, January 23, 2017 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is
pleased to announce its preliminary financial and operating results for the
fourth quarter and full year 2016, with highlights provided in the table below.
Table 1: Key Preliminary Operational and Financial Highlights
(All 2016 Quarter ended, Year ended December 31,
amounts --------------------------------- ------------------------
exclude
discontinued
Youga
operation, Dec. Sept. Dec. 2016 2015 Change
while 2015 30, 2016 30, 2016 30, 2015
amounts
include
Youga.) Units
-------------------------------------------------------------------------------
Gold oz 175, 146 146,425 583,712 +13%
Production 136,844 516,646
Realized Gold $/oz 1,205 1,328 1,102 1,240 1,157 +7%
Price
AISC $/oz ~865 898 934 ~895 922 (3%)
-------------------------------------------------------------------------------
All-in $/oz 168 235
Sustaining ~340 430 ~345 +47%
Margin
All-in
Sustaining
Margin $m ~65 55 24 ~190 122 +55%
Free Cash Flow
(before growth
projects, WC, $m ~50 41 12 ~135 85 +59%
tax and
financing
cost)
Net Debt At
Period End $m 25 14 144 25 144 (83%)
-------------------------------------------------------------------------------
The preliminary Q4 2016 production and other financial information provided in
this news release are approximate figures and may differ from the final results
included in the 2016 annual audited statements and MD&A. Production shown
inclusive of Karma's pre-commercial period. 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: "I would like to acknowledge
the hard work and dedication of our entire team for achieving our record
performance in 2016 and improving all our key operating metrics as we met all of
our guidance objectives for the year. As expected, our fourth quarter was our
strongest with a record performance at Agbaou and Tabakoto, and the continued
ramp-up at Karma.
In 2017, we are well positioned to continue to increase production and lower
all-in sustaining costs even further, notably without the inclusion of organic
growth benefits provided by our Houndé project which is progressing on-time and
on-budget. Looking ahead, we remain focused on unlocking our organic growth
potential which will be enhanced by a potential positive investment decision at
the Ity CIL project and through our reinvigorated exploration program."
/> 2016 Guidance Achieved with Record High Production & Record Low AISC
* Endeavour produced a total of 583,712 ounces of gold in 2016 at a low AISC
of circa $895/oz, achieving both its ambitious production guidance of
575,000 to 610,000 ounces and its AISC guidance of $870-920/oz.
* Production increased by 13% over 2015, with Agbaou setting another record
year and strong contributions from Tabakoto, Ity and Karma which either met
or exceeded their respective guidance while Nzema was impacted by lower than
expected purchased ore.
* AISC continued to decrease in 2016 with strong performance at Agbaou and an
improved asset portfolio with a full year's contribution from Ity, the
purchase and ramp-up of Karma and the divestment of the higher-cost Youga
mine.
Table 2: Preliminary Production and AISC Compared to Guidance
Production, koz Preliminary AISC/oz
------------------------- -----------------------------------
2016 2016 2015 2016 2016 2015
(in koz on a 100% basis) Guidance Actual Actual Guidance (Preliminary) Actual
--------------------------------------------------------------------------------------------
Agbaou 180 - 195 196 181 550 - 600 ~535 576
--------------------------------------------------------------------------------------------
Tabakoto 155 - 175 163 152 970 - 1,050 ~1,030 1,067
--------------------------------------------------------------------------------------------
Nzema 90 - 100 88 110 1,050 - 1,125 ~1,170 1,064
--------------------------------------------------------------------------------------------
Ity 70 - 80 76 6 800 - 850 ~790 683
--------------------------------------------------------------------------------------------
Karma* 50 - 60 62 - 750 - 800 ~750 -
--------------------------------------------------------------------------------------------
Youga (divested in March 2016) Excluded - 68 Excluded - 913
Group 575 - 610 584 517 870 - 920 ~895 922
--------------------------------------------------------------------------------------------
*Karma production shown inclusive of the pre-commercial period, while AISC
stated for the commercial period
/> Strong 2016 Finish with Record Quarterly Performance in Q4
* As expected, Q4 was Endeavour's strongest quarter with production up 20%
over the previous quarter to a record 175koz, and AISC down 3% to record low
of circa $865/oz.
* Fourth quarter performance was lifted by strong increases at Agbaou, Ity and
Tabakoto which benefited from the end of the rainy season, and continued
ramp-up at Karma.
Table 3: Preliminary Production and AISC
Quarter ended, Year ended December 31,
------------------------ ------------------------
Q4-2016 Q3-2016 Q4- 2016 2015 Change
(All amounts in koz, on a 100% basis) 2015
---------------------------------------------------------------------------------------
Agbaou 57 49 52 196 181 +8%
---------------------------------------------------------------------------------------
Tabakoto 48 37 42 163 151 +8%
---------------------------------------------------------------------------------------
Nzema 24 24 23 88 110 (20%)
---------------------------------------------------------------------------------------
Ity 17 15 6 76 6 n/a
---------------------------------------------------------------------------------------
Karma (including pre-commercial 29 20 - 62 - n/a
production)
---------------------------------------------------------------------------------------
Production from continuing operations 175 146 123 584 449 +30%
---------------------------------------------------------------------------------------
Youga (divested in March 2016) Excluded Excluded 15 Excluded 68 n/a
---------------------------------------------------------------------------------------
Total Production 175 146 138 584 517 +13%
---------------------------------------------------------------------------------------
Table 4: Group All-In Sustaining Costs, US$/oz
Quarter ended, Year ended December 31,
--------------------------- ------------------------
(All amounts in US$/oz) Q4-2016 Q3-2016 Q4-2015 2016 2015 Change
-------------------------------------------------------------------------------
Agbaou ~535 550 537 ~535 576 (7%)
-------------------------------------------------------------------------------
Tabakoto ~930 1,071 1,119 ~1,030 1,067 (3%)
-------------------------------------------------------------------------------
Nzema ~1,120 1,136 1,133 ~1,170 1,064 +10%
-------------------------------------------------------------------------------
Ity ~850 724 683 ~790 683 +16%
-------------------------------------------------------------------------------
Karma (commercial ~750 n/a - ~750 - n/a
production)
-------------------------------------------------------------------------------
Youga (divested in March Excluded Excluded 985 Excluded 913 n/a
2016)
-------------------------------------------------------------------------------
Mine-level AISC ~785 831 862 ~830 868 (4%)
-------------------------------------------------------------------------------
Corporate G&A ~55 47 56 ~47 41 +15%
-------------------------------------------------------------------------------
Sustaining exploration ~25 20 15 ~18 13 +38%
-------------------------------------------------------------------------------
Group AISC ~865 898 934 ~895 922 (3%)
-------------------------------------------------------------------------------
Agbaou Mine
Q4-2016 Insights:
* Agbaou achieved record performance in Q4, up 16% over the previous quarter,
as the mine benefitted from the end of the rainy season and a greater mix of
higher grade transitional ore, which represented 15% of total ore processed
during the quarter.
2017 Outlook
* The secondary crusher, which was commissioned in mid-2016, provides the
flexibility to process higher grade transitional ore while maintaining a
fairly constant ore blend and throughput over the remaining life of mine.
* After achieving an exceptional year, Agbaou is expected to return to a more
normalized and sustainable production rate of 175-180koz in 2017 with fresh
ore representing up to 50% of tonnes processed.
* AISC are expected to remain competitive, at $660-700/oz, as higher grade
transitional ore is expected to compensate for increased unit costs and
lower throughput.
* Nearly $20 million of sustaining expenditures are planned for 2017, mainly
occurring in the first and last quarter, including $13 million for waste
capitalization. No significant non-sustaining expenditures are planned.
Exploration Activities
* The ongoing exploration campaign, which commenced in April 2016 based on
previous geophysics and soil geochemistry results, is focused on the North
pit and South pit extensions, the Agbaou South target, Niafouta target, and
on generating targets beyond the current resource boundaries.
* Initial drill results suggest the extension of mineralized zones.
* An exploration budget of $7 million has been planned for 2017, totaling
approximately 45,000 meters of drilling.
Tabakoto Mine
Q4-2016 Insights:
* Tabakoto achieved a record quarter with production increasing 30% over the
previous quarter due to the anticipated higher grades from Kofi C and Segala
and increased mill throughput following the end of the rainy season.
2017 Outlook
* Cost reduction will continue to be the main focus in 2017, with AISC
expected to decrease to $950-990/oz. Ongoing cost saving and optimization
programs include overhead reduction centralizing procurement, fleet
replacement, and improving equipment availability and mining efficiency.
* Tabakoto production is expected to slightly decrease in 2017 to 150-160koz
as grades are expected to slightly decrease due to open pit mining
transitioning from Kofi C to Kofi B in the second half of the year, and
underground mining sequence.
* Nearly $20 million of sustaining expenditures are planned for 2017,
inclusive of $7 million for equipment replacement (expected to be incurred
in the first half of the year) and the remainder for underground development
and Kofi B waste capitalization. No significant non-sustaining expenditures
are planned.
Exploration Activities
* As set out in Endeavour's 5-year exploration strategy published in November
2016, Tabakoto is a top exploration priority in 2017 given its relatively
short mine life and significant potential. As such, a $9 million exploration
program totaling approximately 72,000 meters of drilling has been planned
for 2017.
* The 2017 program will focus on both surface exploration, with the aim of
delineating resources within trucking distance at discoveries made in 2016
and on new targets, and underground drilling.
Ity Mine
Q4-2016 Insights:
* As expected, production increased in Q4 following the end of the rainy
season which allowed for increased throughput. Pre-strip at the Zia pit was
completed during the quarter which positively contributed to Ity's Q4
production increase.
2017 Outlook
* Production is expected to remain stable in 2017, at 75-80koz while AISC are
expected to slightly decrease to $740-780/oz due to higher grades.
* Nearly $10 million of sustaining expenditures are planned for 2017, for
waste capitalization and fleet renewal, while roughly $4 million of non-
sustaining expenditures are planned mainly for infrastructure related to the
Bakatouo pit access.
* The CIL Project Mineral Reserves, published in November 2016, are expected
to be updated in Q2-2017 to include the recent high-grade Bakatouo and
Colline Sud discoveries.
* The possibility of running the CIL and Heap leaching operations in parallel
for the first few years is also currently under analysis. A budget of $10
million has been allocated for studies and metallurgical test work.
Exploration Activities
* The largest portion of Endeavour's exploration budget has been allocated to
the Ity area in light of its strong prospectivity and potential to further
extend the lives of the CIL project and Heap Leach operations. A $10 million
exploration program totaling approximately 50,000 meters has been planned
for 2017.
* In 2017, exploration will be primarily focused on infill drilling at the
Daapleu and Mount Ity deposits, and infill drilling and extension drilling
at the new Bakatouo and Colline Sud discoveries, as well as on conducting
initial drilling campaigns on strong Auger anomalies such as the Yacetouo
and Vavoua targets.
* An auger drilling program will also be conducted on the 80km underexplored
portion of the Birimian corridor along the Ity trend which was consolidated
in September 2016.
Nzema Mine
Q4-2016 Insights:
* Production slightly decreased over the previous quarter as the higher grades
mined was offset by lower purchased ore grades. The Adamus pit push-back
progressed well in 2016 and is expected to be completed in Q1-2017.
2017 Outlook
* In light of push-back activity, 2016 was a transitional year for Nzema as
ore feed was restrained to low grade ore mined and stockpiles, while
purchased ore feed was ramping up in the first half of the year. Following
the cutback, Nzema is expected to generate healthy cash flows for the coming
years.
* As a result of the higher expected grades from the Adamus pit following the
cut-back, production is expected to increase to 100-110koz in 2017 while
AISC are expected to decrease to $895-940/oz.
* To complement production from the Adamus pit, pre-stripping at the Bokrobo
deposit is expected to start in the second half of the year.
* Roughly $5 million of sustaining expenditures are planned for 2017, mainly
being incurred in the first half of a TSF lift. In addition, approximately
$12 million of non-sustaining expenditures are planned for the Adamus cut-
back completion, and Bokrobo pre-strip and resettlement.
Exploration Activities
* No significant exploration activities are planned for 2017.
Karma Mine
Q4-2016 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.
* Production continued to ramp up in Q4 to achieve an annualized run-rate of
approximately 115koz as the higher grade Rambo pit complemented ore feed
from the GG2 pit and stacking capacity continued to improve.
* The low AISC of circa $750/oz achieved in Q4, confirms Karma's potential to
have low AISC, in line with Endeavour's acquisition case.
2017 Outlook
* Production in 2017 is expected to increase to 100-110koz as higher grade
Rambo ore feed will complement that of the GG2 pit with contribution from
the Kao pit in the later portion of the year. In addition, stacking capacity
is expected to increase in the second half of the year following the
completion of the plant optimization efforts.
* AISC are expected to range between $750-800/oz with higher grades and
volumes offsetting higher mining cost related to the increased drilling and
blasting requirements.
* Nearly $10 million of sustaining expenditures are planned for 2017, with a
large portion occurring in the latter portion of the year for pre-stripping
related to the Kao pit which is expected to be in operation by year-end.
* Nearly $19 million of non-sustaining capital is planned for 2017, inclusive
of $6 million to increase the mining fleet and $3 million for pre-stripping
at the Kao pit which will be conducted in the latter portion of the year.
* Capacity at the processing facility is expected to further increase in the
second half of the year following the replacement of the front-end and other
plant optimization activities, which are expected to amount to $35 million.
Exploration Activities
* In 2016, the exploration program focused on Kao North, with the goal of
extending mine life by +2.5 years. The results are currently being compiled
and are expected to be published in the coming weeks.
* In 2017, a $4 million exploration program totaling approximately 30,000
meters has been planned to drill near-mill targets such as Rambo West and
Yabonsgo.
/> Houndé Project
Construction remains on-time and on-budget
* Construction of the Houndé project is progressing as planned, with over 50%
completed by year-end, in line with project planning, with first gold pour
expected by Q4-2017.
* The project remains on-budget with over 65% of the $328 million upfront
capital (including $28 million for contingences) committed.
* In 2016, a total of approximately $100 million was spent and a $47 million
mining fleet equipment financing agreement with Komatsu was signed. The
remaining spend, to be incurred in 2017, is expected to be up to $180
million, as shown below.
Table 5: Remaining capital spend, in $m
-------------------------------------------
Upfront project capital 328
-------------------------------------------
Capital spent in 2016 (100)
-------------------------------------------
Mining fleet equipment financing (47)
-------------------------------------------
Remaining capital spend ~180
-------------------------------------------
Achievements To-Date
* Over 2 million man-hours have been worked without Lost Time Injury (LTI).
* The 38km long, 91kv overhead power line construction is 52% complete. First
power from Sonobel is scheduled for August 2017.
* Open pit pre-strip mining at the Main Vindaloo open pit, adjacent the
processing facility, commenced in late 2016.
* Detailed engineering of the processing facility along with the design HAZOP
has been completed, also ahead of schedule in November 2016.
* CIL ring beam concrete pour was achieved in early August 2016, and the SAG
and Ball Mill first lift on both plinths was completed by year-end.
* The construction of the water harvest dam decant tower is complete, with
water already being pumped to the water storage dam two months ahead of
schedule.
* Construction of the 300-person permanent accommodation village is
approaching completion.
* Over 2,000 personnel including contractors are currently employed on-site,
more than 94% of which are Burkinabe.
* Full back-up 26Mw backup power station has been awarded to JA Delmas. This
is on schedule to be operational in Q3-2017.
* The land compensation process has been successfully completed with
resettlement commencing in early 2017.
Exploration Activities
* Following a two year period of no drilling exploration, activities will
resume in 2017 with a $5 million program totaling approximately 45,000
meters.
* 2017 exploration efforts will leverage off of the 2016 data analysis, and
structural geology and ground geophysical analytical work. The focus will be
on delineating high-grade targets such as Bouere and Kari Pump, in addition
to preforming reconnaissance drilling.
/> 2017 Outlook: Further Production Growth and AISC Reduction
* Production is expected to increase to 600,000 - 640,000 ounces (excluding
Houndé) in 2017 as improvements at Karma and Nzema are expected to more than
compensate for Agbaou returning to a normalized production level after a
record-breaking year. As was the case in 2016, production is expected to
fluctuate throughout the year due to mine plan sequences, with a peak
towards the middle of the year.
Table 6: Production Guidance, koz
+-----------------------+
(on a 100% basis) 2016 Actual | 2017 Guidance |
--------------------------------------+-----------------------+
Agbaou 195,505 | 175,000 - 180,000 |
--------------------------------------+-----------------------+
Tabakoto 162,817 | 150,000 - 160,000 |
--------------------------------------+-----------------------+
Nzema 87,710 | 100,000 - 110,000 |
--------------------------------------+-----------------------+
Ity 75,867 | 75,000 - 80,000 |
--------------------------------------+-----------------------+
Karma 61,817 | 100,000 - 110,000 |
--------------------------------------+-----------------------+
Group-wide Production 583,712 | 600,000 - 640,000 |
--------------------------------------+-----------------------+
* Group AISC is expected to continue to decrease to $860-905/oz due to the
full year benefit of Karma, optimizations at Nzema and Tabakoto, and cost
reduction programs. As with production, AISC are expected to fluctuate
throughout the year with lower costs expected in the second half.
Table 7: AISC Guidance, US$/oz
+---------------+
(In US$/oz) 2016 Actual | 2017 Guidance |
---------------------------------------+---------------+
Agbaou ~535 | 660 - 700 |
---------------------------------------+---------------+
Tabakoto ~1,030 | 950 - 990 |
---------------------------------------+---------------+
Nzema ~1,170 | 895 - 940 |
---------------------------------------+---------------+
Ity ~790 | 740 - 780 |
---------------------------------------+---------------+
Karma ~750 | 750 - 800 |
---------------------------------------+---------------+
Mine-level AISC ~870 | 800 - 850 |
| |
Corporate G&A ~46 | 37 - 34 |
---------------------------------------+---------------+
Sustaining exploration ~18 | 23 - 22 |
---------------------------------------+---------------+
Group AISC ~895 | 860 - 905 |
---------------------------------------+---------------+
* Exploration will continue to be an increased focus in 2017 with a company-
wide exploration program of roughly $40 million (up approximately 20% over
2016 and more than double that of 2015), totaling 285,000 meters of
drilling. Mine related exploration is expected to total $35 million and in
addition approximately $5 million has been allocated for grassroots
exploration programs.
Table 8: Exploration Guidance, $m
(In $m) 2017 Guidance
-----------------------------------------------------
Agbaou 7
-----------------------------------------------------
Tabakoto 9
-----------------------------------------------------
Ity 10
-----------------------------------------------------
Karma 4
-----------------------------------------------------
Houndé 5
-----------------------------------------------------
Exploration Expenditures for Mines 35
Grassroots exploration expense 5
-----------------------------------------------------
Total Exploration Expenditures 40
-----------------------------------------------------
* As detailed in the above mine sections, sustaining and non-sustaining
capital allocations for 2017 amount to $65 million and $35 million
respectively, in total up approximately $25 million over 2016 due to the
addition of Karma. Growth projects amount to $225 million for the Houndé
construction, Karma optimization and Ity CIL project.
Table 9: Capital Expenditure Guidance, $m
Sustaining Non-Sustaining Growth
(in US$m) Capital Capital Projects
------------------------------------------------------
Agbaou 20 - -
------------------------------------------------------
Tabakoto 20 - -
------------------------------------------------------
Nzema 5 12 -
------------------------------------------------------
Ity 10 4 10
------------------------------------------------------
Karma 10 19 35
------------------------------------------------------
Houndé - - 180
------------------------------------------------------
Total 65 35 225
------------------------------------------------------
* Due to the expected increased production and lower AISC, the Free Cash Flow
before growth projects (and before working capital movement, tax and
financing costs) is projected to increase by approximately $15 million to
circa $150 million, based on the 2016 realized gold price of circa
$1,240/oz, and using the mid-point of 2017 production and AISC/oz guidance
ranges
* Based on a more conservative gold price of $1,200/oz, the Free Cash Flow
before growth projects (and before working capital movement, tax and
financing costs) is projected to be $125 million, with the gold price
sensitivity as shown in Table 10 below.
Table 10: 2017 Free Cash Flow Guidance based on Production and AISC Guidance
Mid-points, in US$m
(in US$m) $1,100/oz $1,200/oz $1,300/oz
------------------------------------------------------------------------------------------------------
Net Revenue (based on production guidance mid-point) 685 725 785
------------------------------------------------------------------------------------------------------
Mine level AISC costs (based on AISC guidance mid-point) (510) (510) (510)
------------------------------------------------------------------------------------------------------
Corporate G&A (21) (21) (21)
------------------------------------------------------------------------------------------------------
Sustaining exploration (14) (14) (14)
------------------------------------------------------------------------------------------------------
Group AIS Margin 140 180 240
------------------------------------------------------------------------------------------------------
Non-sustaining mine exploration (20) (20) (20)
------------------------------------------------------------------------------------------------------
Non-sustaining capital (35) (35) (35)
------------------------------------------------------------------------------------------------------
Free Cash Flow before growth projects 85 125 185
(Mine cash flow less corporate costs before WC, tax and financing cost)
------------------------------------------------------------------------------------------------------
* The short-term Gold Revenue Protection Strategy put in place when the Houndé
construction was launched in April 2016 will end in June 2017. The remaining
gold collar program covers a total of approximately 187,000 ounces,
representing approximately 60% of Endeavour's total estimated gold
production for the period, with a floor price of $1,200/oz and ceiling price
of $1,400/oz.
* As shown in Table 10, within our collar gold price boundaries of $1,200/oz
to $1,400/oz, the Free Cash Flow variation to each $100/oz fluctuation is
roughly $60 million. Thanks to the Gold Revenue Protection program, if the
gold price were to drop below $1,200/oz in 2017, this fluctuation is reduced
to roughly $40 million per $100/oz change.
/> Sound Balance Sheet and Strong Financing & Liquidity Sources
* Endeavour significantly improved its balance sheet in 2016, with net debt
reduced to $25 million as of December 31, 2016 compared to $144 million at
the same date last year, despite roughly $100 million spent on the Houndé
project construction. 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 and the bought deal proceeds.
* $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 $335 million which
include its $125 million cash position and $210 million undrawn on the
revolving credit facility, in addition to its strong cash flow generation.
Table 11: Net Debt Reduction, in US$m
December 31, December 31, December 31,
(in US$ million) 2016 2015 2014
-------------------------------------------------------------------------------
Cash 125 110 62
-------------------------------------------------------------------------------
Less: Equipment finance lease 10 13 16
-------------------------------------------------------------------------------
Less: Drawn portion of $350 million RCF 140 240 300
-------------------------------------------------------------------------------
Net Debt/(Cash) position 25 144 254
-------------------------------------------------------------------------------
/> Conference call and live webcast
The 2016 Fourth Quarter and Year End Financials will be released before-market
open on March 7, 2017. Management will host a conference call and live webcast
on Tuesday, March 7, 2016, at 10:00 am Toronto time (EST), 3:00pm London time
(GMT), 4:00pm Paris time (CET), to discuss the Company's financial results.
The live webcast can be accessed through the following link:
http://edge.media-server.com/m/p/ei9msxtz
Analysts and interested investors are also invited to participate and ask
questions using the dial-in numbers below:
International: +1646 254 3361
North American toll-free: 1877 280 2342
UK toll-free: 0800 279 4992
Australian toll-free: 1800 027 830
Confirmation code: 8720003
Click here to add Webcast reminder to Outlook Calendar
Webcast Access for mobile devices - QR code:
Access the live and On-Demand version of the webcast from mobile devices running
iOS and Android.
A replay of the conference call and webcast will be available on Endeavour's
website.
Contact Information Qualified Persons
Martino De Ciccio Adriaan "Attie" Roux, Pr.Sci.Nat,
VP - Strategy & Investor Relations Endeavour's Chief Operating Officer, is a
+33 (0)1 70 38 36 95 Qualified Person under NI 43-101, and has
mdeciccio(at)endeavourmining.com reviewed and approved the technical
information related to mining operations in
DFH Public Affairs in Toronto this news release.
John Vincic, Senior Advisor
(416) 206-0118 x.224
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 600koz and 640koz at an AISC of US$860 to US$905/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
year ended December 31, 2015.
Appendix 1: Preliminary Production and Cost Details by Mine
On a quarterly basis
Agbaou Nzema Tabakoto Ity Karma
---------------------- ---------------------- ---------------------- --------------------- ---------
(on a 100% Unit Q4- Q3- Q4- Q4- Q3- Q4- Q4- Q3- Q4- Q4- Q3- Q4- Q4-
basis) 2016 2016 2015 2016 2016 2015 2016 2016 2015 2016 2016 2015 2016
----------------------------------------------------------------------------------------------------------------------
Total
tonnes 000t 6,518 6,877 4,924 2,885 2,848 1,341 1,593 1,569 2,423 1,472 948 375 4,022
mined -
OP(*)
----------------------------------------------------------------------------------------------------------------------
Total ore 000t 674 651 753 288 222 278 195 160 137 316 200 63 782
tonnes - OP
----------------------------------------------------------------------------------------------------------------------
Open pit W:t
strip ore 8.7 9.6 5.5 9.0 11.8 3.8 7.2 8.8 16.6 3.7 3.7 4.9 4.1
ratio(*)
----------------------------------------------------------------------------------------------------------------------
Total
tonnes 000t - - - - - - 324 302 358 - - - -
mined - UG
----------------------------------------------------------------------------------------------------------------------
Total ore 000t - - - - - - 253 238 215 - - - -
tonnes - UG
----------------------------------------------------------------------------------------------------------------------
Total
tonnes 000t 721 709 748 428 424 446 402 381 392 295 271 102 1,163
milled
----------------------------------------------------------------------------------------------------------------------
Average
gold grade g/t 2.5 2.2 2.1 2.2 2.4 1.8 3.9 3.1 3.5 2.0 1.9 2.4 1.1
milled
----------------------------------------------------------------------------------------------------------------------
Recovery % 97% 96% 97% 82% 82% 87% 95% 95% 95% 90% 91% 81% 90%
rate
----------------------------------------------------------------------------------------------------------------------
Gold ounces oz 57,061 49,384 51,372 23,874 24,279 23,076 47,884 37,019 41,546 17,480 15,334 5,689 28,848
produced
----------------------------------------------------------------------------------------------------------------------
Gold sold oz 56,936 51,308 53,298 22,033 23,526 22,526 47,053 37,324 41,118 15,038 15,349 7,917 28,743
----------------------------------------------------------------------------------------------------------------------
Preliminary
mine-level $/oz ~535 550 537 ~1,120 1,136 1,133 ~930 1,071 1,119 ~850 724 683 ~750
AISC per
ounce sold
----------------------------------------------------------------------------------------------------------------------
For the year ended December 31
Agbaou Nzema Tabakoto Ity Karma
----------------- ------------------- ----------------- -------------- -------
(on a 100% Unit FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY- FY- FY-
basis) 2016 2015 2016
--------------------------------------------------------------------------------------------------
Total
tonnes 000t 25,382 20,447 9,295 8,144 7,098 9,333 6,102 375 8,753
mined -
OP(*)
--------------------------------------------------------------------------------------------------
Total ore 000t 2,797 2,818 1,000 1,310 649 520 1,186 63 1,879
tonnes - OP
--------------------------------------------------------------------------------------------------
Open pit W:t
strip ore 8.1 6.3 8.3 5.2 10.4 17.2 4.2 4.9 3.7
ratio(*)
--------------------------------------------------------------------------------------------------
Total
tonnes 000t - - - - 1,301 1,360 - - -
mined - UG
--------------------------------------------------------------------------------------------------
Total ore 000t - - - - 944 860 - - -
tonnes - UG
--------------------------------------------------------------------------------------------------
Total
tonnes 000t 2,827 2,665 1,761 1,783 1,588 1,588 1,173 102 2,089
milled
--------------------------------------------------------------------------------------------------
Average
gold grade g/t 2.3 2.2 1.9 2.2 3.4 3.2 2.2 2.4 1.2
milled
--------------------------------------------------------------------------------------------------
Recovery % 97% 97% 83% 87% 95% 93% 93% 81% 90%
rate
--------------------------------------------------------------------------------------------------
Gold ounces oz 195,505 181,365 87,710 110,302 162,817 151,067 75,867 5,689 61,813
produced
--------------------------------------------------------------------------------------------------
Gold sold oz 196,316 182,219 85,495 110,404 161,803 151,345 73,332 7,917 62,884
--------------------------------------------------------------------------------------------------
Preliminary
mine-level
AISC $/oz ~535 576 ~1,170 1,064 ~1,030 1,067 ~790 683 ~750
per ounce
sold
--------------------------------------------------------------------------------------------------
*Includes waste capitalized
View News Release in PDF Format:
https://hugin.info/171882/R/2072738/779021.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: 23.01.2017 - 13:15 Uhr
Sprache: Deutsch
News-ID 519239
Anzahl Zeichen: 52523
contact information:
Town:
George Town, Grand Cayman
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 150 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Endeavour Posts Record Performance in Q4, Meets 2016 Guidance and Expects Further Production Growth and AISC Reduction in 2017"
steht unter der journalistisch-redaktionellen Verantwortung von
Endeavour Mining Corporation (Nachricht senden)
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