Endeavour Mining Reports First Quarter 2017 Results
(Thomson Reuters ONE) -
NEWS RELEASE - TSX: EDV
All amounts in US$
ENDEAVOUR MINING REPORTS FIRST QUARTER 2017 RESULTS
All mines on-track with guidance · Houndé construction on-time & on-budget ·
Ity CIL project optimization underway
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Q1 Financial Highlights
* Production of 159koz at AISC of $905/oz, both on track to be within FY-2017
guidance
* All-in Sustaining Margin of $46m, up 24% over the previous year due to
stronger production
* Free Cash Flow Before Growth Projects (and before WC, tax and financing
cost) of $32m, on-track to meet guidance of $125m based on gold price of
$1,200/oz
* Net debt increased to $62m from $26m at year-end 2016 due to Houndé
construction spend
* Remain well positioned to fund growth with $48m La Mancha private placement
closed in April 2017, increasing available sources of financing and
liquidity to $345m (pro-forma at March 31)
* Adjusted net earnings of $0.10 per share in Q1-2017 compared to $0.10 in Q1-
2016
Project Highlights
* Houndé construction remains on-time and on-budget; first gold pour expected
in Q4-2017
* Ity CIL Project progressing towards investment decision with an in-principle
agreement to increase stake from 55% to 80% received and the optimization
study scheduled for mid-year
George Town, May 9, 2017 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased
to announce its financial and operating results for the quarter ended March
31, 2017, with highlights provided in the table below.
Table 1: Key Operational and Financial Highlights
QUARTER ENDED(1)
Mar. 31, Dec. 31, Mar. 31, Change Q1-17
2017 2016 2016 vs. Q1-16
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Gold Production From Continuing
Operations, oz 158,640 175,411 123,388 +29%
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Realized Gold Price, $/oz 1,190 1,177 1,192 0%
AISC, $/oz 905 855 889 +2%
All-in Sustaining Margin, $/oz 285 322 302 (6%)
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All-in Sustaining Margin, $m 46 55 37 +24%
Operating EBITDA, $m 47 68 45 +4%
Free Cash Flow Before Growth 32 45 32 0%
Projects(2), $m
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Net Debt At Period End, $m 62 26 136 (54%)
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Earnings From Mine Operations, $m 27 45 27 0%
Basic Net Earnings (Loss), $/share (0.08) (0.57) 0.02 n.a.
Adjusted Net Earnings, $/share3 0.10 0.33 0.10 0%
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1. All financials exclude discontinued Youga operation
2. Free Cash Flow before Growth Projects stated before WC, tax & financing
costs, Houndé and Karma)
3. Adjusted net earnings per share has been modified for Q4-2016 from 0.44 to
0.33 as the NCI portion of earnings has been adjusted
Sébastien de Montessus, President & CEO, stated: "Our strong performance in the
first quarter leaves us on track to meet our guidance for 2017. Each of our
operating mines contributed in line with our expectations as we benefitted from
the portfolio improvement and the asset optimizations carried out last year,
resulting in increased and more diversified cash generation.
During the quarter we also continued to deliver on our growth strategy.
Construction at Houndé is progressing on time and on budget, with the first gold
pour on track for the fourth quarter of this year. At Ity, we reached an in-
principle agreement to increase our ownership position from 55% to 80% and we
now look forward to moving to a formal investment decision in the coming weeks
which would allow our experienced in-house construction team to smoothly
transition from Houndé to building the Ity CIL project in the second half of
2017.
We continued to strengthen our balance sheet. The post-period $47.5 million
private placement by La Mancha, will, in conjunction with our internal cash flow
generation capabilities, give us additional flexibility to pursue our growth
strategy. As a result we are well positioned to make further progress towards
our long-term goals throughout the rest of the year."
PRODUCTION & AISC ON TRACK TO MEET GUIDANCE AT ALL MINES
* Q1-2017 production totaled 159koz, on track to meet the FY-2017 guidance of
600-640koz.
* The Group's production profile improved compared to Q1-2016, up 19%,
mainly due to last year's portfolio improvements (with the sale of the
high-AISC Youga mine and the purchase of the low-AISC Karma mine) and
the asset optimization work done at Tabakoto and Nzema.
* Compared to Q4-2016, as anticipated, production decreased mainly due to
Agbaou returning to a more normalized production rate (following its
record Q4-2016 performance), while Karma continued to ramp-up, Nzema
improved as it started to benefit from the completion of the cut-back,
Ity remained fairly stable, and Tabakoto decreased in line with its
anticipated open pit grade profile decline.
* Q1-2017 AISC totaled $905/oz, on track to meet the FY-2017 guidance of $860-
905/oz as AISC are expected to trend lower throughout the year with
increased production from Agbaou, better grades at Ity, and lower sustaining
exploration spend per ounce.
* The Group Mine-level AISC remained fairly stable compared to Q1-2016, at
circa $840/oz, as the expected AISC increase at Agbaou (due to the start
of mining harder ore) was offset with the aforementioned portfolio
improvements and asset optimizations.
* The Group AISC increased compared to Q1-2016 mainly due to a $17/oz
increase in sustaining exploration, in line with Endeavour's strategy of
extending mine lives.
* Compared to Q4-2016, Group AISC increased mainly due to the expected
increase at Agbaou, following its record quarter in Q4-2016.
Table 2: Group Production, koz
QUARTER 2017 FULL-YEAR
(All amounts in koz, on a 100% ------------------------- GUIDANCE
basis) Q1-2017 Q4-2016 Q1-2016
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Agbaou 42 57 43 175 - 180
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Tabakoto 43 48 39 150 - 160
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Nzema 26 24 20 100 - 110
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Ity 16 17 22 75 - 80
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Karma 32 29 - 100 - 110
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PRODUCTION FROM CONTINUING 159 175 124 600 - 640
OPERATIONS
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Youga (divested in March - - 8
2016)
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TOTAL PRODUCTION 159 175 132 600 - 640
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Table 3: Group All-In Sustaining Costs, US$/oz
QUARTER 2017 FULL-YEAR
---------------------------- GUIDANCE
(All amounts in US$/oz) Q1-2017 Q4-2016 Q1-2016
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Agbaou 660 532 525 660 - 700
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Tabakoto 975 927 1,071 950 - 990
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Nzema 951 1,118 1,158 895 - 940
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Ity 879 827 710 740 - 780
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Karma 748 738 n.a 750 - 800
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Youga (divested in March - - (excluded) - - -
2016)
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MINE-LEVEL AISC 840 779 839 800 - 850
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Corporate G&A 37 52 38 37 - 34
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Sustaining Exploration 29 25 12 23 - 22
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GROUP AISC 905 855 889 860 - 905
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AGBAOU MINE
Q1 Insights
* Agbaou performed in line with expectations in Q1-2017 and remains on track
to meet the FY-2017 guidance.
* As planned in the mining sequence, production decreased compared to the
previous record-breaking Q4-2016 (however flat compared to Q1-2016) as oxide
mining temporarily shifted from a high grade zone to a lower grade zone,
resulting in the head grade decreasing by 18%.
Table 4: Agbaou Performance Indicators
For The Quarter Ended Q1-2017 Q4-2016 Q1-2016
--------------------------------------------------------------
Tonnes ore mined, kt 624 674 820
Strip ratio (incl. waste cap) 9.19 8.67 6.41
Tonnes milled, kt 683 721 654
Grade, g/t 2.09 2.46 2.05
Recovery rate, % 95% 97% 98%
--------------------------------------------------------------
PRODUCTION, KOZ 42 57 43
AISC/OZ 660 532 525
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* Due to the successful installation of the secondary crusher in 2016
processing throughput continues to perform well, achieving an annualized
throughput rate of 2.7Mt despite increases in the fresh ore blend from 8% to
30% over the previous quarter, as shown in Table 5.
Table 5: Fresh Ore Break-down and impact
For The Quarter Ended Q1-2017 Q4-2016 Q1-2016
----------------------------------------------------------
Impact on throughput
% of hard ore processed 30% 8% 0%
Tonnes milled, kt 683 721 654
Annualized throughput, Mt 2.7 2.9 2.6
----------------------------------------------------------
Impact on unit costs
Mining costs, $/t moved 2.45 2.38 2.36
Tonnes milled, $/t 6.82 6.26 5.79
----------------------------------------------------------
* All-in sustaining costs increased compared to Q4-2016 to be in line with the
FY-2017 guidance of $660-700/oz, as a result of:
* Temporary mining of a lower grade oxide ore area.
* Increased mining costs due to more drill and blast activity necessary
for the harder ore, as well as deeper elevations mined.
* Processing cost increased due to harder fresh ore resulting in increased
mill power, higher grinding media and reagent consumption, and higher
general wear and tear on mill liners.
Q1 Exploration Activities
* Exploration progressed well during the first quarter, with a total of
approximately 10,000 meters drilled out of the 45,000 meters planned for the
year.
* The drill program is based on previous geophysics and soil geochemistry
result and is focused on the MPN extension, Agbaou south, Niafouta, and Beta
extension targets.
* An update to the reserves and resources will be made following the
completion of the program in H2-2017.
2017 Outlook
* Improved grades and increased production is expected over the coming
quarters, while AISC are expected to remain within the guided $660-700/oz
range.
* Continuing to progress toward 50/50 fresh ore blend in Q2-2017.
* Sustaining capital spending is expected to grow in upcoming quarters with
increased waste capitalization.
* FY-2017 guidance remains unchanged. As guided, after achieving an
exceptional 2016, Agbaou is expected to return to a more normalized and
sustainable annual production rate of 175,000-180,000 ounces in 2017, with
fresh ore representing up to 50% of tonnes processed.
TABAKOTO MINE
Q4 Insights
* Tabakoto performed in line with expectations in Q1-2017 and remains on track
to meet the FY-2017 guidance.
* As anticipated, production decreased over the previous record Q4-2016
(however was up 10% compared to Q1-2016) mainly due to:
* Lower open pit grade from Kofi C which is approaching the end of its
high grade mine life.
* First contribution from Kofi B, which has a lower grade than Kofi C.
* Underground mining efficiency remained at a good level, however the mine
sequence at Segala resulted in mining a lower grade zone.
* Processing activities continued to perform well, maintaining a stable
throughput.
Table 6: Tabakoto Performance Indicators
For The Quarter Ended Q1-2017 Q4-2016 Q1-2016
-----------------------------------------------------------------
OP tonnes ore mined, kt 217 195 146
OP strip ratio (incl. waste cap) 7.70 7.17 14.29
UG tonnes ore mined, kt 236 253 233
Tonnes milled, kt 405 402 406
Grade, g/t 3.50 3.93 3.10
Recovery rate, % 94% 95% 94%
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PRODUCTION, KOZ 43 48 39
Cash cost/oz 771 769 808
AISC/OZ 975 927 1,071
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* As expected, All-in Sustaining Costs increased compared to Q4-2016 to be
within the FY-2017 guidance of $950-990/oz
* While the AISC were impacted by the aforementioned lower grades and
lower production, the cash cost remained fairly stable as the mine
benefited from improved unit costs (on a $/t basis) reflecting the
efforts and continuous focus on cost reduction which is expected to
continue throughout 2017.
* Sustaining capital increased mainly as a result of new equipment
purchases.
Q1 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 proven mine life and significant potential.
* As such, a $9 million exploration program totaling approximately 72,000
meters of drilling has been planned for 2017, with 21,000 meters drilled in
Q1-2017.
* During the quarter, open pit drilling focused mainly on infill drilling at
Kreko and Fougala, for which a maiden resource is expected in Q3-2017, and
testing the area between Fougala and Djambaye.
* During the quarter, underground drilling focused on testing the eastern side
extensions at Segala and North-East extensions at Tabakoto.
2017 Outlook
* Ongoing cost saving and optimization programs are underway, which include
overhead reduction, centralizing procurement, fleet replacement, and
improvement of equipment availability and mining efficiency.
* Production is expected to be lower in the second half of the year with the
end of Kofi C mining and full transition to Kofi B.
* FY-2017 guidance remains unchanged with an expected production of 150,000 -
160,000 ounces at AISC of $950-990/oz.
ITY MINE
Q4 Insights
* Ity production remains on track to finish within its FY-2017 production
guidance (with details provided in the "2017 outlook" section), despite
production decreasing by 9% compared to Q4-2016.
* Mining activities improved over the previous quarter, due to higher
equipment availability, resulting in 23% more tonnes mined than stacked
during the quarter.
* Production decreased mainly due to a 5% drop in grade, down-time related
to work stoppages, and by a longer leach cycle of stacked ore.
* The timing of the stacking has caused the recovery rate to temporarily
increase to 98% in Q1-2017, which is expected to return to a more
normalized rate over the course of the year.
Table 7: Ity Performance Indicators
For The Quarter Ended Q1-2017 Q4-2016 Q1-2016
--------------------------------------------------------------
Tonnes ore mined, kt 329 316 287
Strip ratio (incl. waste cap) 4.44 3.66 6.31
Tonnes stacked, kt 267 295 303
Grade, g/t 1.90 2.00 2.53
Recovery rate, % 98% 90% 90%
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PRODUCTION, KOZ 16 17 22
Cash cost/oz 750 760 609
AISC/OZ 879 827 710
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* Ity remains on track to finish within its FY-2017 All-in Sustaining Costs
guidance (with details provided in the "2017 outlook" section), despite AISC
increasing by 6% compared to Q4-2016.
* AISC increased mainly due to planned sustaining capital spend and lower
grades.
* Cash cost decreased over Q4-2016 due to lower mining costs per tonnes,
as a result of increased volumes, and lower G&A costs.
* Processing costs per tonne have increased due to the lower stacking
volumes.
Q1 Exploration Activities
* The largest portion of Endeavour's 2017 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.
* For 2017, a $10 million exploration program totaling approximately 50,000
meters has been planned, with approximately 25,000 meters completed in Q1-
2017.
* During the first quarter drilling focused mainly on the Mont Ity Flat area,
Daapleu, and Colline Sud.
* Drill results for the Le Plaque target are being analyzed.
* In addition, a Regional Airborne Geophysics program was completed.
2017 Outlook
* Production and cost profile is expected to improve over the remainder of
2017 due to:
* Grade profile is expected to increase as a result of starting to mine
Bakatouo at the end of Q2-2017.
* Increased stacking and benefit of the lag between tonnes mined and
tonnes stacked.
* FY-2017 guidance remains unchanged with 75-80koz production expected at an
AISC of $740-780/oz.
ITY CIL PROJECT
* Ity CIL Project is progressing towards an investment decision with an in-
principle agreement to increase stake from 55% to 80% received.
* The engineering optimisation study remains on track to be completed by mid-
year, which will include additional resources based on the addition of the
new discoveries made last year and the on-going in-fill drilling programs.
* Test work on Dapleau and Bakatouo is nearly complete, with positive results.
NZEMA MINE
Q4 Insights
* Nzema performed in line with expectations in Q1-2017, on track to meet FY-
2017 guidance, with production up 9% over Q4-2016.
* Production benefited from the completion of the Adamus cut-back in Q1-
2017 which started to lift grades mined.
* Ore mine extraction successfully increased in the first quarter in order
to build up the stockpile in anticipation of the upcoming rainy season.
* Total mill throughput decreased by 9% to reflect the increased
proportion of fresh ore processed during the quarter.
* With decreased dependency on purchased ore due to higher grades coming
from our own mining activities, a more selective quality control process
was established to focus on purchasing ore that is of higher grade and
with high recovery rate characteristics. Toll purchasing is however
expected to increase in the coming quarters.
Table 8: Nzema Performance Indicators
For The Quarter Ended Q1-2017 Q4-2016 Q1-2016
--------------------------------------------------------------
Tonnes ore mined, kt 396 288 277
Strip ratio (incl. waste cap) 5.81 9.02 3.40
Total Tonnes milled, kt 391 428 459
Grade, g/t 2.36 2.20 1.53
Recovery rate, % 88% 82% 86%
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PRODUCTION, KOZ 26 24 20
Cash cost/oz 834 956 1,095
AISC/OZ 951 1,118 1,158
--------------------------------------------------------------
* As expected, All-in Sustaining Costs decreased by 15% over Q4-2016 and are
expected to continue to trend lower to be within the FY-2017 guidance of
$895-940/oz.
* Significant decrease in AISC due to increased production and reduction
of sustaining waste capital.
* Mining unit costs are higher versus Q4-2016 due to mining at deeper
depth, longer haul distances, and higher drill and blast activity.
* Processing unit costs increased due to the 10% increase in SAG mill
power used, driven by higher primary ore feed.
* Non-sustaining expenditures for the Adamus push-back project and Bokrobo
resettlement remained in line with expectations.
Q1 Exploration Activities
* No significant exploration activity is underway.
2017 Outlook
* Following the completion of the cut-back, Nzema returned to profitability in
Q1-2017 and is expected to continue to produce positive all-in sustaining
margin and earnings from mine operations.
* FY-2017 guidance remains unchanged with 100- 110koz planned at an AISC of
$895-940/oz, as AISC are expected to continue to decline throughout the
year.
* To complement production from the Adamus pit, pre-stripping at the Bokrobo
deposit is expected to start in the second half of the year.
KARMA MINE
Full-Year 2016 Insights
* Karma continued to ramp-up in line with expectations in Q1-2017, on track to
meet its FY-2017 guidance, with production up 9% over Q4-2016.
* Mining activity increased by 34% to respond to increased stacking
capacity.
* Stacking increased by 12% due to the optimized performance of the mobile
power screen and crushing sections.
* The grade decrease was offset by the aforementioned increased stacking.
Table 9: Karma Performance Indicators
For The Quarter Ended Q1-2017 Q4-2016
----------------------------------------------------
Tonnes ore mined, kt 1,050 783
Strip ratio (incl. waste cap) 3.14 4.14
Tonnes stacked, kt 954 853
Grade, g/t 1.07 1.14
Recovery rate, % 87% 90%
----------------------------------------------------
PRODUCTION, KOZ 32 29
Cash cost/oz 661 657
AISC/OZ 748 738
----------------------------------------------------
* All-in sustaining costs are tracking in line with the FY-2017 guidance of
$750-800/oz, remaining fairly flat over Q4-2016:
* AISC benefited from its increased production profile.
* As expected, mining costs increased due to increased drill and blast
requirements from hard rock in the mining sequence, as well as
additional grade control. In addition, some G&A costs were reclassified
to mining costs to conform to group standards.
* G&A costs decreased by $1.30 per tonne as a result of cost saving
actions, after taking into account the reclassifications made to conform
to group standards.
Q1 Exploration Activities
* In 2017 a $4 million exploration program totaling approximately 30,000
meters has been planned of which approximately 15,000 meters was completed
in the first quarter.
* During Q1-2017, drilling focused on testing the extensions of the Rambo,
Goulagou and North Kao deposits.
* Drilling on the Yabonsgo target drill is expected to start in Q2-2017.
2017 Outlook
* FY-2017 guidance remains unchanged with 100- 110koz planned at an AISC of
$750-800/oz.
* The higher-grade Rambo ore feed will continue to complement that of the GG2
pit, with contribution from the Kao pit in the later portion of the year.
* Stacking capacity is expected to increase in the second half of the year
following the completion of the plant optimization project, which is
progressing on-time.
* Sustaining capital is expected to increase later in the year due to
stripping activities related to the Kao pit, which is expected to be in
operation by year-end 2017.
HOUNDE CONSTRUCTION REMAINS ON-TIME AND ON-BUDGET
Construction Achievement To-Date
* Construction is progressing as planned, and is currently more than 75%
complete and remains on-budget.
* 100% of the procurement has been complete, reducing cost over-run risk, and
only 35% of the capital remains to be spent.
* During Q1-2017, $58 million was incurred on the project, with the remaining
spend amounting to $120 million for the remainder of the year as shown
below.
Table 10: Remaining capital spend, in $m
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UPFRONT PROJECT CAPITAL 328
-------------------------------------------
Capital spent in 2016 (102)
-------------------------------------------
Capital spent in Q1-2017 (58)
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Mining fleet equipment financing (47)
-------------------------------------------
REMAINING CAPITAL SPEND ~120
-------------------------------------------
* 3.7 million man-hours have been worked without a lost time injury.
* The 38 km long, 90kv overhead power line construction is 89% complete. Power
from the national grid is scheduled for August 2017.
* Open pit pre-strip mining at the Main Vindaloo open pit, adjacent to the
processing facility, commenced in late December 2016.
* SAG and ball mill plinths concrete, as well as the TSF (Cell 1) earthworks
have been completed.
* The construction of the water harvest dam decant tower is complete, with
water already being pumped to the water storage dam approximately one year
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.
* A full back-up 26Mw power station has been ordered and construction of the
foundations is underway. This is on schedule to be operational in Q3-2017.
* The land compensation process has been successfully completed.
Exploration Activities
* Following a two year period of no exploration drilling, activities resumed
in 2017 with a $5 million program planned totaling approximately 45,000
meters, of which 25,000 meters were completed during Q1-2017
* 2017 exploration efforts are leveraging off the 2016 data analysis,
structural geology and ground geophysical analytical work.
* Drilling activities during the quarter focused on delineating high-grade
targets such as Bouere and Kari Pump, Sia, and Kari Fault, in addition to
preforming reconnaissance drilling.
INCREASED NET FREE CASH FLOW FROM OPERATIONS
* Gold sales totaled 162koz in Q1-2017, up 34% over Q1-2016 mainly due to the
addition of Karma and the deconsolidation of Youga. Gold sales in Q1-2017
were higher than the 159koz produced as the quarter benefited from inventory
variations over the previous quarter.
* The realized gold price in Q1-2017 remained fairly flat over Q1-2016, at
$1,190/oz inclusive of 5,000 ounces delivered under the Karma stream,
generating $193 million of revenues for the period. Excluding the stream,
the Group's realized gold price would have been $1,220/oz.
* The All-in Sustaining Margin in Q1-2017 increased by 24% over Q1-2016 to $46
million with the margin now more diversified across the portfolio, with
Agbaou exposure reduced from 63% to 39%.
* Free cash flow (before working capital, tax, and growth projects) remained
flat at $32 million, despite an increase of $6 million in non-sustaining
exploration expenditures.
* Net free cash flow from operations sharply increased in Q1-2017 compared to
Q1-2016, up from $5 million to $34 million, mainly due to a large negative
working capital variation last year.
* Growth projects capex of $69 million incurred in Q1-2017 consists of $58
million of Houndé spend, $8 million on Karma optimization, and $2 million on
the Ity CIL project.
* Net cash outflow in Q1-2017 was $37 million compared to $7 million inflow in
Q1-2016, with main variances detailed in the table below.
Table 11: Simplified Cash Flow Statement
QUARTER ENDED,
(in US$ million) MAR. 31, 2017 MAR. 31, 2016
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GOLD SOLD, koz 162 121
Gold Price, $/oz 1,190 1,192
REVENUE 193 144
Total cash costs (114) (83)
Royalties (10) (7)
Corporate costs (6) (5)
Sustaining capex (12) (11)
Sustaining exploration (5) (2)
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ALL-IN SUSTAINING COSTS ("AISC") (147) (107)
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ALL-IN SUSTAINING MARGIN 46 37
Less: Non-sustaining capital (7) (4)
Less: Non-sustaining exploration (7) (1)
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FREE CASH FLOW BEFORE GROWTH PROJECTS
(and before working capital, tax & financing 32 32
costs)
Working capital 5 (20)
Taxes paid (1) (3)
Interest paid (0) (0)
Cash settlements on hedge programs and gold (2) (3)
collar premiums
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NET FREE CASH FLOW FROM OPERATIONS 34 5
Growth projects (69) (3)
Non-mine greenfield exploration expense (2) (1)
Other (foreign exchange gains/losses and other) (2) (2)
Cash received for Youga mineral property - 22
interests (net)
Operating cash flow from Youga discontinued - 1
operation
Bridge loan advanced to True Gold - (15)
Restructuring costs (2) -
Net equity proceeds 5 1
Settlement of debt obligations (1) (1)
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CASH INFLOW (OUTFLOW) FOR THE PERIOD (37) 7
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Notes: Youga has been deconsolidated from the Net Free Cash Flow From
Operations. Additional notes available in Endeavour's MD&A filed on Sedar for
the referenced periods.
SOUND BALANCE SHEET AND STRONG FINANCING & LIQUIDITY SOURCES
* Endeavour has maintained a strong balance sheet, with net debt at the end of
Q1-2017 of $62 million, compared to $26 million as of December 31, 2016 and
$136 million at the same date last year. The increase in the net debt
position since year-end is related to the Houndé project construction and
other internal growth investments.
* Subsequent to the quarter end, Endeavour closed a $48 million private
placement by its largest shareholder, La Mancha Holding S.A.R.L., as it
exercised its anti-dilution right to re-increase its stake from 28.1%
interest to its initial 29.9% ownership position.
* Endeavour remains well positioned to fund growth with $345 million (pro-
forma as at March 31, 2017 to include the private placement) which includes
its $135 million cash position and $210 million undrawn on the revolving
credit facility, in addition to its strong cash flow generation.
Table 12: Net Debt Reduction, in US$m
MAR. 31, 2017 MAR. 31, DEC. 31, MAR. 31,
(in US$ million) PRO-FORMA 2017 2016 2016
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Cash 135 87 124 117
Less: Equipment finance lease (9) (9) (10) (13)
Less: Drawn portion of $350 million (140) (140) (140) (240)
RCF
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NET DEBT POSITION 14 62 26 136
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NET DEBT / OPERATING EBITDA (LTM) 0.06x 0.27x 0.11x 0.89x
RATIO
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ADJUSTED NET EARNINGS
* A net loss of $2 million was realized in Q1-2017, mainly due to a $9 million
unrealized loss on financial instruments (related to the gold collar
program), $8 million of stock based compensation, and $4 million of non-cash
inventory adjustments.
* Adjusted net earnings attributable to shareholders amounted to $9 million in
Q1-2017, an increase of 50% compared to Q1-2016.
* In Q1-2017, total adjustments of $16 million were made, mainly related to
unrealized loss on financial instruments, stock-based compensation,
acquisition and restructuring costs, non-cash inventory adjustments, and
deferred income tax expense.
Table 13: Net Earnings and Adjusted Earnings
Three months ended
($ in millions except per share amounts) Mar. 31, Dec 31, Mar. 31,
2017 2016 2016
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TOTAL NET EARNINGS (LOSS) (2) (69) 8
Less adjustments (see MD&A) 16 109 4
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ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS 14 40 12
Less portion attributable to non-controlling 5 10 6
interests
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ATTRIBUTABLE TO SHAREHOLDERS 9 31 6
Divided by weighted average number of O/S shares 94 93 59
-------------------------------------------------------------------------------
ADJUSTED NET EARNINGS PER SHARE (BASIC) 0.10 0.33 0.10
FROM CONTINUING OPERATIONS
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CONFERENCE CALL AND LIVE WEBCAST
Management will host a conference call and live webcast today at 9:00am Toronto
time (EST) to discuss the Company's financial results.
The conference call and live webcast are scheduled today at:
6:00am in Vancouver
9:00am in Toronto and New York
2:00pm in London
9:00pm in Hong Kong and Perth
The live webcast can be accessed through the following link:
http://edge.media-server.com/m/p/tq785ev9
Analysts and interested investors are also invited to participate and ask
questions using the dial-in numbers below:
International: +1718 354 1157
North American toll-free: 1877 280 2296
UK toll-free: 0800 279 5004
Confirmation code: 2728249
The conference call and webcast will be available for playback on Endeavour's
website.
Click here to add Webcast reminder to Outlook Calendar
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
+44 203 640 8665 (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 2017, 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.
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.
View Appendix 1 - Production and Cost Details by Mine
View News Release in PDF Format:
http://hugin.info/171882/R/2102821/797556.pdf
View Presentation in PDF Format:
http://hugin.info/171882/R/2102821/797557.pdf
View Appendix 1 - Production and Cost Details by Mine:
http://hugin.info/171882/R/2102821/797560.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: 09.05.2017 - 13:45 Uhr
Sprache: Deutsch
News-ID 541242
Anzahl Zeichen: 49977
contact information:
Town:
George Town, Grand Cayman
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"Endeavour Mining Reports First Quarter 2017 Results"
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Endeavour Mining Corporation (Nachricht senden)
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