Endeavour Financial Corporation

Published : January 15th, 2016

Endeavour Mining Exceeds 2015 Guidance With 518,000 Ounces

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  

Endeavour Mining Exceeds 2015 Guidance With 518,000 Ounces

January 14, 2016

George Town, January 14, 2016 - Endeavour Mining Corporation ('Endeavour Mining') (TSX:EDV) (OTCQX:EDVMF) announces 2015 gold production of 517,948 ounces, which includes 5,689 ounces from the newly acquired Ity Mine, to exceed the 2015 production guidance range. The 2015 AISC/oz is expected to be slightly below the $930 to $980 guidance range.

At December 31, 2015 the cash balance was $110 million and net debt was reduced to $143 million.

For 2016, Endeavour Mining is providing gold production guidance of 575,000 to 600,000 ounces and AISC/oz is expected to decrease to $875 to $925.

2015 Production and AISC Highlights

  • 2015 production exceeded guidance of 475,000 to 500,000 ounces with 512,259 ounces from the Agbaou, Nzema, Tabakoto and Youga mines.
  • Endeavour Mining's five mines, which now includes the Ity Mine, produced 593,066 ounces during 2015.
  • The Ity Mine was acquired November 27, 2015 so the consolidated financial statements will only include Ity's post-acquisition results of 5,689 ounces for total gold production of 517,948 ounces during 2015, an increase of 11% over 2014.

Table 1: 2015 Gold Production and Guidance by Mine (in ounces, 100% basis)

Mine 2014 Q4 2015 2015 2015
Full year 3 months Full year Guidance Range, by Mine
Agbaou 146,757 51,732 181,365 150,000 - 155,000
Nzema 115,129 23,076 110,302 110,000 - 115,000
Tabakoto 127,323 42,665 152,185 155,000 - 165,000
Youga 76,561 14,985 68,407 60,000 - 65,000
Sub-Total 465,770 132,458 512,259 475,000 - 500,000
Ity 5,689 5,689
Grand-Total 465,770 138,147 517,948 11% year-over-year growth

Gold production is on a 100% consolidated basis. Actual mine ownership is Agbaou - 85%, Nzema - 90%, Tabakoto - 80%, Youga - 90%, Ity - 55%
Ity Mine is included for the post-acquisition period of November 28 to December 31, 2015. During 2015, the Ity Mine produced 80,807 ounces.

  • The 2015 AISC/oz is expected to be slightly below the $930 to $980 guidance range, representing a cost improvement of at least 8% compared to 2014.
  • At December 31, 2015, the net debt position has been reduced by 44% to $143 million, which compares to $254 million at the start of the year.
  • The net debt to Operating EBITDA ratio has improved to 0.7 times, which compares to 1.8 times at the start of the year.
  • The December 31, 2015 balance sheet includes $110 million of cash and $240 million of debt drawn from the $350 million revolving credit facility ('RCF'). During 2015, the RCF drawings were reduced by $60 million including $20 million in each of Q2, Q3 and Q4.
  • Endeavour Mining has a sound balance sheet with strong liquidity including its cash position of $110 million, undrawn RCF capacity of $110 million, and its 2016 cash flow generation which is projected at $100 million, as shown in Table 5. The group is also supported by a $75 million in-principle commitment from La Mancha (Naguib Sawiris) to finance its development and growth projects.

Table 2 - Net Debt reduction during 2015 (US$ million)

As of
December 31
As of
December 31
Cash $62 $110
Less: Equipment finance lease $16 $13
Less: Drawn portion of $350 million RCF $300 $240
Net debt $254 $143
Operating EBITDA* (2014 MD&A) $143
Consolidated financial statements (2015 estimated) $170
Add: Ity Mine EBITDA (Jan-Nov 2015 estimated) $45
Operating EBITDA (adjusted to full year basis) $143 $215
Net debt to Operating EBITDA ratio 1.8 times 0.7 times

* Operating EBITDA is all-in sustaining margin and operating earnings before interest and finance costs, tax, depreciation and amortization
** The preliminary Q4 2015 production and other financial information provided in this news release are approximate figures and may differ from the final results included in the 2015 annual audited statements and MD&A

Neil Woodyer, CEO, stated

'We are very pleased to report our above-guidance production performance for the group which was achieved with an outstanding health and safety record for the year. In addition to increasing production by 11% compared to 2014, we have reduced our costs by at least 8% as the group AISC/oz for 2015 is anticipated to remain below our 2015 guidance range of $930 to $980.

During 2015, the strong performance of our mining operations, the creation of a strategic partnership with Naguib Sawiris, the significant reduction in our net debt from $254 million to $143 million, our continued growth with the addition of Ity as our fifth gold mine, and the advancement of our strong project development pipeline have all been important contributors to the 80% increase in our share price, in an environment where the S&P TSX Global Gold Index declined by 10%.

For 2016, we are expecting continued cost improvements with an AISC/oz guidance range of $875 to $925 while our gold production is forecast to increase to 575,000 to 600,000 ounces. We are benefiting from our five mine platform that facilitates the sharing of costs, knowledge and risks. In addition, we are well positioned to continue our growth strategy at this low point in the gold price cycle with our reconstituted balance sheet giving us good downside protection.'

2016 Production and AISC/oz Guidance

  • Endeavour Mining is providing 2016 production guidance of 575,000 to 600,000 ounces at an all-in sustaining cost per ounce of $875 to $925.
  • While the mine production forecasts are largely in line with 2015 production rates: Agbaou production is expected to decline modestly due to changing ore feed; Nzema production is expected to increase with additional deliveries of high grade third-party ore during the Adamus pit push-back period; and Tabakoto production is expected to increase as the operating improvements of Q4 2015 are sustained in 2016.

Table 3: 2016 Production guidance by mine (ounces, 100% basis)

Mine 2013 2014 2015 2016
Actual Actual Actual Guidance Range
Agbaou 6,132 146,757 181,365 165,000 - 175,000
Nzema 103,464 115,129 110,302 110,000 - 130,000
Tabakoto 125,231 127,323 152,186 155,000 - 175,000
Youga 89,448 76,561 68,407 40,000 - 45,000
Ity 80,807 65,000 - 75,000
Total 324,275 465,770 593,066 535,000 - 600,000
Selected 2016 guidance range 575,000 - 600,000

Gold production is on a 100% consolidated basis. Actual mine ownership is Agbaou - 85%, Nzema - 90%, Tabakoto - 80%, Youga - 90%, Ity - 55%

Table 4: 2016 AISC/oz guidance by mine ($/oz)

2016 Guidance Range ($/oz)
Agbaou $650 - $700
Nzema $970 - $1,020
Tabakoto $920 - $970
Youga $980 - $1,030
Ity $800 - $850
Mine-level AISC/oz $830 - $880
Plus Corporate G&A $35
Plus Sustaining exploration $10
AISC/oz $875 - $925

Figure 1: 2016 AISC Guidance Range and Historical Trend

2016 Derived AISC Margin and Free Cash Flow

  • At a gold price of $1,150 per ounce and using the mid-point of 2016 production and AISC/oz guidance ranges, Endeavour Mining is projecting an AISC margin of approximately $148 million in 2016, or $250 per ounce.
  • Exploration has been allocated $20 million toward programs focused on reserve replacement and mine life extensions, with $6 million or approximately $10 per 2016 production ounce toward sustaining exploration programs and $14 million toward non-sustaining exploration programs.
  • Non-sustaining project capital has been allocated $48 million, which includes installation of a secondary crusher at the Agbaou Mine, a pit wall push-back at the Nzema Mine, non-sustaining exploration programs ($14 million mentioned earlier), and project-related investments at both Houndé and Ity CIL projects.
  • Endeavour Mining is continuing to prepare the Houndé Project for a construction decision in the first half of 2016 and expects to complete the Ity CIL feasibility study by mid-year 2016.

Table 5: Derived 2016 AISC margin and Free Cash Flow (before working capital movement, tax and financing)

2016 Production (ounces, guidance range mid-point) 587,500
2016 AISC/oz ($/oz, guidance range mid-point) $900
US$ million $ / ounce
Revenue $1,150 gold price 676 $1,150
Less: AISC costs (includes Corporate G&A, sustaining capital and sustaining exploration costs) 528 $900
All-in sustaining margin 148 $250
Non-sustaining capital
Current allocations include: 48 $80
Agbaou Mine secondary crusher - $12 million
Nzema Mine push-back - $12 million
Houndé Project - $5 million
Ity CIL Project - $5 million
Non-sustaining exploration - $14 million
Free cash flow
(before working capital movement, tax and financing costs)
100 $170
  • At $1,150 gold price, and with the current allocations to non-sustaining capital, the free cash flow (before working capital movement, tax and financing costs) is projected to be $100 million or $170 per ounce, with a $30 million sensitivity for a $50 per ounce gold price movement.

Qualified Persons

Adriaan 'Attie' Roux, Pr.Sci.Nat, Endeavour Mining's Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information in this news release.

About Endeavour Mining Corporation

Endeavour Mining is a TSX-listed intermediate gold mining company producing approximately 600,000 ounces per year from five mines in West Africa. Endeavour Mining is focused on effectively managing its existing assets to maximize cash flow as well as pursuing organic and strategic growth opportunities that benefit from its management and operational expertise.

On behalf of Endeavour Mining Corporation

Neil Woodyer
Chief Executive Officer

Cash cost per ounce and all-in sustaining cash cost per ounce, all-in sustaining margin, operating EBITDA, free cash flow, and net debt are non-GAAP performance measures with no standard meaning under IFRS. This news release contains 'forward-looking statements' including but not limited to, statements with respect to Endeavour Mining'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 Mining operates. Although Endeavour Mining 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 Mining's most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour Mining and its business.

For additional information, contact:

Endeavour Mining Corporation

Vincent Benoit, EVP - Strategy & Business Development
+33 (0)1 70 38 36 96
[email protected]

Martino De Ciccio, VP - Strategy & Investor Relations
+33 (0)1 70 38 36 95
[email protected]

Brunswick Group LLP
Carole Cable, Partner
+44 7974 982 458
[email protected]

You can view the Previous News item: January 11th, 2016, Endeavour Mining Confirms ASX Delisting and Corporate Update

Back to the main News page, or press the Back button on your browser.

Read the rest of the article at www.noodls.com
Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All

Endeavour Financial Corporation

ISIN : KYG3040R1092
CUSIP : G3040R109
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Endeavour Financial is a gold and cobalt producing company based in Cayman islands.

Its main exploration property is FYRE LAKE (KONA) in Canada.

Endeavour Financial is listed in Canada and in United States of America. Its market capitalisation is CA$ 3.0 billions as of today (US$ 2.4 billions, € 2.1 billions).

Its stock quote reached its lowest recent point on January 15, 1999 at CA$ 10.02, and its highest recent level on August 10, 2007 at CA$ 97.43.

Endeavour Financial has 96 450 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Corporate Presentations of Endeavour Financial Corporation
9/25/2008Winston Updates Endeavour Financial
5/15/2008 Reinhard Updates Endeavour Mining Capital
1/17/2008Winston says investing in Endeavour Mining Capital (EDV-TSXV...
In the News and Medias of Endeavour Financial Corporation
10/17/2009Endeavour Financial recognizes upside in Etruscan’s assets
Annual reports of Endeavour Financial Corporation
Annual Report 2007
Financings of Endeavour Financial Corporation
Nominations of Endeavour Financial Corporation
3/26/2015Mining Appointment of New CFO
9/17/2013Mining strengthens Board of Directors
6/5/2013Mining Reports Election of Directors
4/2/2013Mining Appoints Ian Henderson to Board of Directors
2/25/2008Announces Appointment of Director, Marketing & Business Deve...
Financials of Endeavour Financial Corporation
11/4/2009To release First quarter results on November 10, 2009
4/29/2008Release Third Quarter Results on May 5, 2008
2/6/2008Release Second Quarter Results on February 12, 2008
Project news of Endeavour Financial Corporation
3/24/2016Endeavour Mining Corporation Announces Special Meeting of Sh...
7/8/2015Mining reports gold production of 255,000 ozs and $20m debt ...
2/19/2015Endeavour Mining increases mineral reserves to 4.5 million o...
8/11/2014Mining reports record gold production in Q2 2014 at an AISC ...
7/15/2014Mining reports six-month gold production of 228,000 ozs
5/12/2014Mining Reports Record Gold Production in Q1 2014 at an AISC ...
1/27/2014Mining declares commercial production at Agbaou and signs co...
9/20/2012Mining Announces Full and Final Settlement with Gold Reserve
4/20/2006reports additional high grade intercepts from Guanacevi proj...
Corporate news of Endeavour Financial Corporation
7/26/2016Endeavour Mining to Announce its Q2 Results on Thursday July...
7/12/2016Endeavour Mining Announces C$125 million Bought Deal Financi...
7/12/2016Endeavour Mining Announces Board Change
7/12/2016Endeavour Mining Reports Fatality at its Tabakoto Mine in Ma...
6/30/2016Endeavour Holds Groundbreaking Ceremony to Mark the Start of...
6/13/2016Endeavour Mining Announces C$125 million Bought Deal Financi...
5/31/2016Endeavour Mining Announces Notice of Annual General Meeting
5/2/2016Endeavour Reports First Quarter 2016 Results; AISC Continue ...
4/26/2016Endeavour Completes Acquisition of True Gold
4/21/2016Endeavour and True Gold Shareholders Approve Acquisition Tra...
1/28/2016Endeavour Silver to cut output in Mexico on low prices
1/15/2016Endeavour Mining Exceeds 2015 Guidance With 518,000 Ounces
1/11/2016Endeavour Mining Confirms ASX Delisting And Corporate Update
1/1/2016Mali produces 50 T of gold in 2015, expects more in 2016
12/1/2015Endeavour Mining Reports Agbaou Gold Mine Fully Repaid Share...
12/1/2015Endeavour Mining Updates ASX Share Consolidation Timetable
11/30/2015Endeavour Mining Announces Details of Share Consolidation an...
11/27/2015Endeavour Mining Completes La Mancha Transaction
11/6/2015Endeavour Mining to Release Q3 Results on November 13, 2015
11/5/2015Endeavour Mining Shareholders Approve the La Mancha Transact...
10/7/2015Endeavour Mining Mails Information Circular in Connection wi...
8/14/2015Endeavour Mining Reports Successful Agbaou Exploration Drill...
7/30/2015Endeavour Mining Q2 2015 AISC/oz of $898, Profit of $33M and...
7/30/2015Mining Q2 2015 AISC/oz of $898, Profit of $33M And $20M Debt...
7/23/2015Endeavour Mining To Release Q2 Results On July 30, 2015
7/23/2015Endeavour Mining Reports Gold Production of 255,000 Ozs and ...
7/23/2015Mining to release Q2 results on July 30, 2015
6/18/2015Endeavour Mining Reports Results of AGM Voting
6/17/2015Edited Transcript of EDV.TO earnings conference call or pres...
4/9/2015Mining produced 124,000 oz in Q1 2015 at mid-point of AISC g...
3/27/2015Endeavour Mining Files Technical Reports for Agbaou and Youg...
3/26/2015Endeavour Mining Appointment of New CFO
3/15/2015Endeavour Mining Generates Record Operating Cash Flow in 201...
3/10/2015Endeavour Mining Extends Five Year Credit Facility To March ...
3/10/2015Endeavour Mining Extends Five Year Credit Facility to March ...
3/10/2015Mining Extends Five Year Credit Facility to March 31, 2020
2/26/2015Endeavour Mining Generates Record Operating Cash Flow in 201...
2/26/2015Endeavour Mining Files Early Warning Report Related to Share...
2/25/2015Endeavour Mining files Early Warning Report related to share...
2/24/2015Endeavour Mining to release 2014 year-end results on Februar...
2/23/2015Geodrill Secures Significant New Drilling Contracts for 2015
2/19/2015IIROC Trade Resumption - EDV
2/19/2015Mining Updates Houndé Project Economics Following Increase I...
2/19/2015Endeavour Mining Updates Houndé Project Economics Following ...
1/15/2015Mining delivers 466,000 oz in 2014 to exceed guidance and ge...
10/30/2014Mining to release Q3 results on November 3, 2014
9/15/2014Mining provides notice of a substantial holder
8/1/2014Mining to Release Q2 Results on August 11, 2014
6/25/2014Mining Reports Commencement of Production from Segala Underg...
6/19/2014Mining reports results of AGM voting
5/22/2014Mining files Early Warning Report related to shareholding in...
5/5/2014Mining to Release Q1 Results on May 12, 2014
4/28/2014Mining files Technical Report for Tabakoto Gold Mine
3/19/2014Mining Reports 2013 All-In Margin of $93 Million and AISC of...
3/6/2014Mining Updates Agbaou Gold Mine Performance
11/4/2013Mining to release Q3 results on November 12, 2013
10/15/2013Mining initiates mining at Agbaou and completes power line i...
8/14/2013Mining reports Q2 all-in sustaining cost of $1,038/oz
8/6/2013Mining Reports Delivery of Mining Equipment at Agbaou Gold M...
7/24/2013Mining increases and extends debt facility to strengthen fin...
7/24/2013Mining increases and extends debt facility to strengthen fin...
6/25/2013Mining reports Tabakoto Mill expansion achieves design capac...
5/14/2013Mining reports Q1 all-in sustaining margin of $39 million an...
5/6/2013Mining to release Q1 results on May 14, 2013
4/24/2013Mining reports Agbaou Gold Mine construction progress
4/11/2013Mining Announces Mali Humanitarian Donation In Cooperation W...
3/20/2013Mining to release 2012 year-end results on March 28, 2013
3/12/2013Mining files Houndé PEA, completes in-fill drilling and adva...
10/18/2012Avion Gold announces completion of acquisition by Endeavour ...
10/1/2012Mining announces ISS and Glass Lewis recommend in favour of ...
8/21/2011Mining and Adamus Resources to Merge and Create a New Growth...
9/29/2009Burkina Faso, Brazil, Ghana & H1N1
1/26/2009GSWeekly - smart money - Endeavour Financial
9/10/2008Reinhard Updates Endeavour Financial Corp.
6/9/2008Announces Proposed Name Change and New Website
4/1/2008 Renews normal course issuer bid
2/15/2008Declares Monthly Dividend for February 2008
2/12/2008 Announces Q2 Earnings
1/14/2008declares monthly dividend for January 2008
12/12/2007Declares Monthly Dividend
10/23/2007Announces 80% Increase in Dividend
5/19/2006reports record silver quaterly silver production, gross reve...
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 31.12
03/24 15:59 0.060
Prev close Open
31.06 31.37
Low High
30.75 31.69
Year l/h YTD var.
26.44 -  32.24 5.81%
52 week l/h 52 week var.
23.06 -  34.15 0.941%
Volume 1 month var.
312,968 12.06%
24hGold TrendPower© : 37
Explores for Cobalt - Copper - Gold
Interactive chart Add to compare
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 6.85-0.72%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 7.88-1.25%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.89+14.97%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.04-18.18%Trend Power :
Closes Bridge Loan Financing
CA$ 1.87-3.61%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 7.90+0.77%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.24+2.08%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.32+3.17%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.92+2.67%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 46.57-0.32%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.02+0.00%Trend Power :