Toronto Stock Exchange: EDV
(All figures are in US dollars unless otherwise indicated)
GEORGE TOWN, Grand Cayman, June 13, 2011 /CNW/ - Endeavour Mining
Corporation ("Endeavour" or the "Corporation") (TSX: EDV) today
announces financial and operational results for the first quarter of
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."
During Q1 2011, the Corporation spent approximately $1.3 million of the
2011 budget amount of $10 million for Youga and Ouaré exploration, with
promising results including:
New resources reported on the Zergoré and A2NE deposits (as reported in
press release on February 17, 2011), adding:
95,000 inferred ounces at Zergoré, 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
Several of these targets had initial success and will require follow-up
At Ouaré, 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
Ouaré 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 Ouaré programs will be
close to $5 million.
During Q1 2011, 7,970 metres of infill and condemnation drilling were
completed at Agbaou in Côte 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.
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
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.
SOURCE Endeavour Mining Corporation
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