VANCOUVER, Nov. 13,
2015 /CNW/ - Endeavour Mining Corporation
("Endeavour Mining") (TSX:EDV) (ASX:EVR) (OTCQX:EDVMF) announces Q3
2015 gold production of 124,893 ounces resulting in an all-in
sustaining margin of $26.1
million. Over the nine month period to September 30, 2015, Endeavour Mining has produced
379,802 ounces at an AISC/oz of $917
resulting in an all-in sustaining margin of $98.2 million. Endeavour Mining's operations
continue to perform well and are positioned to deliver at the high
end of production guidance of 475,000 to 500,000 ounces with
AISC/oz below our full-year $930 to
$980/oz guidance range.
(All amounts in US dollars unless otherwise
indicated)
Q3 2015 Financial and Operating
Highlights
- Gold production of 124,893 ounces and sales of 123,002
ounces at a realized gold price of $1,121 per ounce
- Cash cost per ounce sold of $710
- Operating EBITDA of $36.3
million
- AISC per ounce sold of $908
- AISC margin of $26.1
million
- Non-sustaining capital and exploration investments of
$13 million
- A $20 million advance
principal payment was made in July
2015 to further reduce the drawn amount on the revolving
credit facility to $260 million.
Advance principal payments have totaled $40
million so far this year.
- Ended Q3 2015 with $31.8
million in cash
- The third quarter results do not include the
contributions from Ity Gold Mine in Côte d'Ivoire, acquired via the
La Mancha transaction subsequent to quarter end in November 2015. At closing, Endeavour Mining will
benefit from the cash flow generated from the Ity mine and will
strengthen its balance sheet and funding position from the
$63 million attributable cash amount
to be received from the La Mancha transaction
Neil Woodyer,
CEO, stated
"We continue to be pleased with our operations
this quarter as we remain on track to deliver at the high end of
our full-year production guidance at an AISC/oz below our
$930 to $980 guidance range. At
the start of the year, we forecasted our free cashflow, before tax
and financing costs, at $100 million
at $1,200 gold price. Actual
free cash flow for the nine months to September 30 with our actual realized gold price
of $1,178 is $72.5 million or 73% of the full year
target.
We are in the process of closing the La Mancha
transaction and have commenced the integration of the Ity mine into
Endeavour Mining's operating and management control systems.
The La Mancha transaction is expected to complete next week.
The additional operating cash flows generated at the Ity mine and
the $63 million cash contribution
improves our balance sheet and positions Endeavour Mining to pursue
further growth and continue our 'build & acquire' strategy at a
low point in this gold price cycle.
The Houndé Project is a priority for the company
and our Construction Services team is busy optimizing the
construction plan. A construction decision for Houndé is
expected in early 2016."
Table 1: Q3 2015 and 9 Months Margin
Generation and All-in Sustaining Cost
|
Three months ended
September 30, 2015
|
|
Nine months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
M
|
|
In gold
ozs
|
|
AISC
$/oz
|
|
US$
M
|
|
In gold
ozs
|
|
AISC
$/oz
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
revenue
|
$137.9
|
|
123,002
|
|
|
|
$444.5
|
|
377,468
|
|
|
|
Less:
Royalties
|
6.7
|
|
5,933
|
|
$54
|
|
21.3
|
|
18,096
|
|
$56
|
|
Less: Cash costs for
ounces sold
|
87.4
|
|
77,950
|
|
710
|
|
268.7
|
|
228,183
|
|
712
|
Mine cash
margin
|
43.8
|
|
39,119
|
|
|
|
154.5
|
|
131,189
|
|
|
|
Less: Corporate
G&A
|
4.7
|
|
4,233
|
|
39
|
|
13.2
|
|
11,190
|
|
35
|
|
Less: Sustaining
capital
|
11.8
|
|
10,491
|
|
96
|
|
38.5
|
|
32,717
|
|
102
|
|
Less: Sustaining
exploration
|
1.2
|
|
1,071
|
|
10
|
|
4.6
|
|
3,906
|
|
12
|
All-in sustaining
margin / cost
|
$26.1
|
|
23,325
|
|
$908
|
|
$98.2
|
|
83,376
|
|
$917
|
|
|
|
|
|
|
|
|
|
|
|
|
Numbers may not add
due to rounding
|
|
|
|
|
|
|
Figure 1: Maintaining All-in Sustaining Costs Below
$1,000 per ounce
Please click on link below:
http://files.newswire.ca/910/Endeavour_Figure_1.pdf
Table 2: Year-to-date Performance Versus Mid-point of 2015
Guidance
|
Actual
|
|
Full year
2015
|
|
Nine-months
|
|
Nine-months
to
|
|
Guidance
range
|
|
as %
of
|
|
September 30,
2015
|
|
Mid-point
|
|
Full
Year
|
|
|
|
|
|
|
Gold sold
(ounces)
|
377,468
|
|
487,500
|
|
77%
|
Gold price
(US$/oz)
|
$1,177
|
|
$1,200
|
|
|
|
|
|
|
|
|
|
US$
M
|
|
US$
M
|
|
|
|
|
|
|
|
|
Revenue
|
$444.5
|
|
$585
|
|
76%
|
|
|
|
|
|
|
|
AISC costs
|
346.3
|
|
465
|
|
|
|
Non-sustaining
capital & exploration
|
25.7
|
|
20
|
|
|
|
|
Total operating and
capital cost
|
372.0
|
|
485
|
|
77%
|
|
|
|
|
|
|
|
|
Free cash flow
(before tax & financing costs)
|
$72.5
|
|
$100
|
|
73%
|
Table 3: Q3 2015 and 9 Months
Non-sustaining Investments and Reconciliation of Cash
Position
|
|
3 months
ended
September 30, 2015
|
|
9 months
ended
September 30, 2015
|
|
|
US$
M
|
|
US$
M
|
|
|
|
|
|
|
|
|
|
Cash - Opening
balance
|
|
|
|
$52.7
|
|
|
|
$62.2
|
|
|
|
|
|
|
|
|
|
|
All-in sustaining
margin
|
|
26.1
|
|
|
|
98.2
|
|
|
|
Non-sustaining
capital investments
|
|
-12.6
|
|
|
|
-25.8
|
|
|
|
Change in working
capital and other
|
|
-10.0
|
|
|
|
-26.6
|
|
|
|
Repayment of Tabakoto
equipment lease
|
|
-0.8
|
|
|
|
-2.4
|
|
|
|
Gold hedge
settlement
|
|
-0.3
|
|
|
|
-4.3
|
|
|
|
Interest and fees
paid
|
|
-2.1
|
|
|
|
-10.7
|
|
|
|
Income taxes and
dividends to local partners
|
|
-1.2
|
|
|
|
-3.7
|
|
|
|
|
Cash generation
before exceptional items
|
|
|
|
-0.9
|
|
|
|
24.7
|
Cash balance before
exceptional items
|
|
|
|
51.8
|
|
|
|
86.9
|
|
|
|
|
|
|
|
|
|
|
Exceptional
items:
|
|
|
|
|
|
|
|
|
|
|
Payment of RCF
refinancing fees
|
|
|
|
|
|
|
|
-5.4
|
|
|
Reduction of VAT
receivable factoring loan
|
|
|
|
|
|
|
|
-9.7
|
|
|
Reduction of RCF
drawn amount
|
|
|
|
-20.0
|
|
|
|
-40.0
|
|
|
|
|
|
|
|
|
|
Cash - Ending
balance (Sept 30, 2015)
|
|
|
|
$31.8
|
|
|
|
$31.8
|
9 Months 2015 Adjusted Earnings
Net earnings from operations (attributable to
Endeavour Mining shareholders) have been adjusted for the impact of
realized and unrealized gain and loss associated to the gold price
protection programs, gain and loss on financial instruments,
imputed interest on the promissory note, gain and loss on foreign
currency, stock-based payments, deferred income taxes and other
non-operating and exceptional items.
Table 4: Adjusted Net Earnings Reconciliation
for the Nine Months Ended September
30, 2015 and 2014
|
|
|
|
|
9 months ended
September 30, 2015
|
|
9 months ended
September 30, 2014
|
|
US$
M
|
|
US$
M
|
|
|
|
|
Net earnings and
total comprehensive earnings
|
$57.2
|
|
$12.0
|
|
Loss/(gain) on
derivative instruments, marketable securities, and
interest
|
-0.8
|
|
6.7
|
|
Imputed interest on
promissory note
|
-0.7
|
|
-1.4
|
|
Loss/(gain) on
foreign currency
|
-2.1
|
|
5.0
|
|
Other
income
|
0.4
|
|
1.1
|
|
Stock-based
payments
|
2.9
|
|
0.9
|
|
Deferred income tax
expense
|
-5.4
|
|
-5.7
|
Adjusted net earnings
after tax
|
51.5
|
|
18.6
|
|
Attributable to
non-controlling interests
|
6.4
|
|
2.3
|
Adjusted net earnings
after tax to Shareholders
|
$45.1
|
|
$16.3
|
|
|
|
|
Weighted average
number of outstanding shares (millions)
|
413.1
|
|
413.1
|
Adjusted net earnings
per share (basic, US$ per share)
|
0.11
|
|
0.04
|
Financial Statements and related MD&A will be
available on SEDAR, the ASX website, OTC Markets website, and in
the Investor Relations section of Endeavour Mining's website
www.endeavourmining.com.
In order to access the Corporation's MD&A and
financial statements directly, please click the following
URL: http://files.newswire.ca/910/MDAFSQ32015.pdf
Conference Call Details
Management will host a conference call to discuss
the Q3 2015 results on November 16,
2015 as detailed below. Presenting on the call will be
Neil Woodyer, Chief Executive
Officer, Attie Roux, Chief Operating
Officer, and Ota Hally, Chief
Financial Officer.
Analysts and interested investors are invited to
participate using the dial in numbers below.
International:
+1 201-689-8040
North American
toll-free: +1
877-407-8133
Australian toll-free:
+1 800-687-004
The conference call can also be accessed through
the following link:
http://www.endeavourmining.com/s/Webcasts.asp
The conference call will be held and webcast by
Issuer Direct on Monday, November 16,
2015 at:
7:00 am
in
Vancouver
10:00
am in
Toronto and New York
3:00 pm
in
London
11:00
pm in
Hong Kong and Perth
The call will be archived for later playback on
Endeavour Mining's website until November
16, 2016.
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 related to mining operations
in this news release.
About Endeavour Mining Corporation
Endeavour Mining is a Canadian-based intermediate
gold mining company producing 580,000 ounces per year from five
mines in West Africa, including
the Ity Mine. 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 costs, all-in sustaining costs at the mine
level, AISC, operating EBITDA and all-in sustaining margin are
non-GAAP financial 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.
SOURCE Endeavour Mining Corporation