Endeavour Mining Reports Q1 2011 Cash Flow from Mine Operations of $6.6
Million and on Track to Produce 84,000 ozs in 2011
View News Release in PDF Format
(All figures
are in US dollars unless otherwise indicated)
George Town, Grand Cayman, June 13, 2011 - Endeavour Mining Corporation ("Endeavour"
or the "Corporation") (TSX:EDV) today
announces financial and operational results for the first quarter of 2011.
As required by applicable
Canadian rules, effective Q1 2011, Endeavour has prepared its financial
statements in accordance with International Financial Reporting Standards
("IFRS"), including the restatement of the comparative periods
previously reported under Canadian generally accepted accounting principles.
The Corporation's Youga Mine in Burkina Faso produced
20,056 ounces of gold during Q1 2011 at cash cost of $664 per ounce sold1.
Endeavour is pleased to reiterate its production guidance for 2011 with a
production target of 84,000 ounces of gold at cash cost of approximately $600
per ounce sold1. At March 31, 2011, the Corporation had cash &
equivalents and marketable securities of $196 million and was debt-free.
Financial Highlights
from Q1 2011
- Gold revenues of $26.1 million,
which compares to $17.7 million in the same quarter of 2010
- Earnings from mine operations
were $8.5 million, which compares to $3.4 million in the same quarter of
2010
- Operating cash flow from mine
operations was $6.6 million, which compares to $6.7 million in the same
quarter of 2010
- Net earnings attributable to
shareholders of $0.0 million, which compares to a net loss of $36.5
million in the same quarter of 2010
Neil Woodyer, Chief Executive Officer commented: "At our Youga Mine, Q1 2011 gold production was up 13% over the
same period last year. With operating performance achieved in April and May, we
are on track for our full year 2011 targets. During the quarter, we
successfully completed negotiations with our Labour
Union with a new 3 year agreement. We are fortunate to have positive
relationships with the mine employees, surrounding communities and government
that allowed us to remain fully operational throughout the negotiation period.
The momentum established through our focussed
exploration program has accelerated further in Q2 2011."
Youga Growth
During Q1 2011, the Corporation spent approximately $1.3 million of the 2011
budget amount of $10 million for Youga and Ouar� exploration, with promising results including:
- New resources reported on the Zergor� and A2NE deposits (as reported in press
release on February 17, 2011), adding:
- 95,000 inferred ounces at Zergor�, and
- 30,000 indicated ounces and
8,000 inferred ounces at A2NE
- Identification of additional
mineralization in the east wall of the Main pit and drill testing of area
between the Main pit and East pit
- Of the 17 previously identified
targets, drilling was well underway on 4 targets during the quarter
- 5 additional targets identified
during prospecting, mapping and geochemical surveys and exploration
programs will be developed to test these targets
- Several of these targets had
initial success and will require follow-up drilling
At Ouar�,
the Exploration Camp was constructed during Q1 2011 and drilling commenced in
Q2 2011. The objectives of the drilling campaign include increasing the size of
the deposit whilst upgrading the resource classifications and converting
resource to reserves. In addition, metallurgical samples will be taken to
assist in evaluating Ouar� as a potential heap leach
operation.
During Q2 2011, the level of exploration activity has accelerated with 3
drilling rigs operating and a 4th rig being added. By mid-year 2011, the actual
amount invested in the Youga and Ouar�
programs will be close to $5 million.
Agbaou Development
During Q1 2011, 7,970 metres of infill and
condemnation drilling were completed at Agbaou in
C�te d'Ivoire. This drilling program was interrupted in late March 2011 due to
political unrest in the country; however, results from the completed drilling
work are currently being processed and evaluated. The Corporation intends to
recommence the drilling program towards the end of Q2 2011 with our increasing
confidence in the safety of employees and contractors. With drilling
recommencing in late-June, the engineering studies supporting project
development are anticipated in late Q4 2011.
Unlocking Value from Non-core Assets
Subsequent to Q1 2011, Endeavour is pleased that the inherent value of the Lofdal rare earths property in Namibia has been unlocked
through a spin-out and IPO transaction. The Lofdal
property was part of the Etruscan exploration portfolio acquired by Endeavour
in September 2010. Endeavour has retained a 38.5% indirect ownership through a
30 million share holding of Namibia Rare Earths Inc., a newly-listed company on
the TSX. On closing of the IPO (April 14, 2011), Endeavour's ownership was
valued at CDN$24.3 million.
Conference Call Details
Management's discussion of the financial results will be webcast by V-Call on
Monday, June 13, 2011 at 11:00 am Eastern Time or 8:00 am Pacific Time and can
be accessed from the Corporation's website at www.endeavourmining.com or by
calling the operator at 201-689-8565 or toll-free 1-877-407-0778 prior to the
scheduled start time. The call will be archived for later playback on
Endeavour's website until June 13, 2012.
In order to access the Corporation's financial statements directly, please
click the following URL: http://files.newswire.ca/910/EDV_Q1_2011_FS_MD&A.pdf.
Financial Statements and related Management Discussion and Analysis will also
be available on SEDAR.
Qualified Person
K. Kirk Woodman, P. Geo, Head of Exploration is the Qualified Person overseeing
Endeavour's exploration projects in West Africa and has reviewed and approved
this press release.
Adrian De Freitas, C.Eng.,
General Manager, Youga Mine is the Qualified Person
overseeing production and development in West Africa and has reviewed and
approved this press release.
About Endeavour Mining Corporation
Endeavour is a gold producer. Endeavour also holds an extensive exploration
land position and various advanced-stage development gold projects in West
Africa. Endeavour has a global strategy, supported by financial resources and
management's company building expertise, to grow into an intermediate gold
producer through strategic acquisitions.
The common shares of Endeavour Mining Corporation are traded on the Toronto
Stock Exchange under the symbol "EDV".
On behalf of Endeavour Mining Corporation
"Christian Milau"
Christian Milau
Executive Vice President & Chief Financial Officer
1 Cash Cost per Ounce is a non-GAAP
financial performance measure with no standard meaning under IFRS. The amount
presented is calculated on the basis of gold ounces sold and operating costs
exclude royalties, refining, freight, and non-cash adjustments.
The Toronto Stock Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release. The foregoing information may
contain forward-looking information relating to the future performance of
Endeavour Mining Corporation. Forward-looking information, specifically, that
concerning future performance, is subject to certain risks and uncertainties,
and actual results may differ materially. These risks and uncertainties are
detailed from time to time in the Corporation's filings with the appropriate
securities commissions.
For additional information, contact:
Stephen Roberts, Senior Vice President - Investor Relations (604) 609-6130, sroberts@endeavourmining.com
or
Vanguard Shareholder Solutions 1-866-341-4111 or (604) 608-0824, investor@endeavourmining.com