Endeavour Mining reports record gold production in Q2 2014 at an AISC of $1,021/oz

VANCOUVER, Aug. 11, 2014 /CNW/ - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV) (ASX:EVR) (OTCQX:EDVMF) announces record gold production of 122,517 ounces resulting in revenue of $153.4 million that generated an all-in sustaining margin of $32.3 million in Q2 2014. Endeavour is benefiting from low cost production from Agbaou, the transition to owner mining at Tabakoto, and the impact of ongoing optimization programs. The AISC of $1,021/oz during Q2 2014 has decreased significantly from $1,115/oz in Q2 2013 and also improved compared to $1,059/oz in Q1 2014.

(All amounts in US dollars unless otherwise indicated)

Q2 2014 Financial and Operating Highlights

  • Record gold production of 122,517 ounces 
  • Gold sold was 118,653 ounces at a cash cost per ounce of $854
  • EBITDA of $40.2 million
  • All-in sustaining cost ("AISC") per ounce sold of $1,021
  • AISC margin of $32.3 million
  • Endeavour's Tabakoto underground mining team successfully advanced development of the Segala mine, a second underground mine that began feeding the Tabakoto mill in late June, as scheduled
  • Endeavour ended the quarter in a strong financial position with $57.1 million in cash

H1 2014 Financial and Operating Highlights

  • Record gold production of 228,429 ounces
  • Gold sold was 224,319 ounces at a cash cost per ounce of $866
  • EBITDA of $76.3 million
  • AISC per ounce sold of $1,039
  • AISC margin of $57.5 million

Neil Woodyer, CEO, stated

With gold production for the first half of 2014 of 228,000 ounces we now expect to achieve the top end of the guidance range of 400,000 to 440,000 ounces for the full year.  We have also been focused on managing our costs and are pleased with the continued improvements in Q2 as compared to Q1 and as compared to last year.  Our six-month AISC per ounce of $1,039 is within our full-year guidance range of $985 to $1,070.

During Q2, we converted the Tabakoto mine to owner mining.  We are very pleased that our underground mining team advanced the development of the new Segala mine and started delivering ore to the Tabakoto mill in late June, as planned.  This was a challenge for our operators as not all of the owner-mining fleet was on site during the quarter.  Our successful transition was in large part due to our ability to retain over 300 employees from the contractor.

The conversion to owner-mining at Tabakoto is now behind us.  Looking forward we expect mining costs will reduce as the ore production from Segala ramps up during the second half of 2014.  At Segala, we are currently mining from two stopes and four more are in development.  We are also developing additional sources of long-term mill feed to supplement ore from the two underground mines.  During the quarter, the Kofi Nord permit was received which includes all eight of the known Kofi mineral deposits.  The Kofi C deposit with a reserve grade of 4.26 g/t Au and open pit design promises to be a superior source of mill feed as compared to the Djambaye open pit which is scheduled to end its operating life in late 2014.  Endeavour's Construction Service Team is currently planning the 38km haul road to Kofi to optimize the route among all of the known deposits and initial production is scheduled for early 2015.

Q2 2014 Operational Results by Mine

Agbaou Gold Mine, Côte d'Ivoire

  • Gold production of 31,878 ounces in Q2 2014
  • Cash cost of $671/oz sold
  • Mine-level AISC of $728/oz sold (references to mine-level AISC includes cash costs, royalties, and sustaining capital)
  • Agbaou has been performing above plan due to higher than expected grade, mill throughput and strong recoveries

Tabakoto Gold Mine, Mali

  • Gold production of 36,408 ounces in Q2 2014
  • Cash cost of $1,133/oz sold
  • Mine-level AISC of $1,283/oz sold
  • Cash costs and AISC are expected to improve by Q4 as Segala moves toward full production
  • Segala development is progressing well and by July 17, 2014 3,945 metres of lateral development has been completed on four levels to provide access to the ore body.  Mining of underground stoping ore commenced during Q2 2014
  • The Kofi Nord permit was received during Q2 2014.  The Kofi C deposit is now incorporated into the Tabakoto production schedule in 2015

Nzema Gold Mine, Ghana

  • Gold production of 35,946 ounces in Q2 2014
  • Cash cost of $758/oz sold
  • Mine-level AISC of $916/oz sold
  • Mined grade of 2.05 g/t in Q2 2014 is significantly above 1.31 g/t mined in Q2 2013 as mining has progressed to deeper levels in the Adamus Pit
  • Milled grade was 3.13 g/t in Q2 2014 compared to 1.59 g/t in Q2 2013 as a result of processing ore with improved mined grade and the inclusion of higher grade purchased ore from third parties

Youga Gold Mine, Burkina Faso

  • Gold production of 18,285 ounces in Q2 2014
  • Cash cost of $803/oz sold
  • Mine-level AISC of $888/oz sold
  • Continues to generate positive cash flow with low sustaining capital expenditure

Table 1: Q2 2014 and H1 2014 Margin Generation and All-in Sustaining Cost 

3 Months Ended 

6 Months Ended 

June 30, 2014

June 30, 2014


In Gold Ozs

$ / oz


In Gold Ozs*

$ / oz


Gold revenue





Less: Royalties







Less: Cash costs for ounces sold







Mine cash margin





Less: Corporate G&A







Less: Sustaining capital







Less: Sustaining exploration








All-in sustaining margin / cost per ounce







Numbers may not add due to rounding

*Gold ozs sold excludes 6,132 ozs from Agbaou prior to commercial production



Table 2: Q2 2014 Financing Activities and Reconciliation of Cash Position 


Cash - Opening Balance (March 31, 2014)


All-in sustaining margin


Non-sustaining investments

Tabakoto - Segala u/g development and CRF plant


Tabakoto - Tailings expansion


Tabakoto - Owner mining equipment


Nzema and Agbaou


Exploration and other





Change in working capital and other


Taxes and interest paid


Gold hedge settlement


Cash - Ending Balance (June 30, 2014)




Q2 2014 Adjusted Earnings

Net earnings / (loss) from continuing operations (attributable to Endeavour shareholders) have been adjusted for the impact of fair value change of certain financial instruments, including the gold price protection program. Other adjustments include deferred income tax expense, which relates to an increase in losses from a realized hedge loss, adjustments related to investments in associates, stock-based payments, foreign currency, and marketable securities. 

Table 3: Adjusted Net Earnings Reconciliation for the Quarter Ended June 30, 2014

3 Months Ended
June 30, 2014


Net earnings attributable to shareholders of Endeavour


Loss on financial instruments


Imputed interest on promissory note


Loss on foreign currency


Gain on sale of subsidiary


Stock-based payments


Deferred income taxes


Adjusted net earnings after tax


Weighted average number of outstanding shares


Adjusted net earnings per share (basic, US$ per share)




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'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/EDM-MDA-Q2.pdf

Conference Call Details

Management will host a conference call to discuss the Q2 2014 results on August 12, 2014 as detailed below. The conference call will feature Neil Woodyer, Chief Executive Officer, Attie Roux, Chief Operating Officer, and Christian Milau, Chief Financial Officer.

Analysts and interested investors are invited to participate in the call using the dial in numbers below.


+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 Tuesday August 12, 2014 at:

8:00 am

in Vancouver

11:00 am

in Toronto and New York

4:00 pm

in London

11:00 pm

in Hong Kong and Perth 

The call will be archived for later playback on Endeavour's website until August 12, 2015.  

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.

About Endeavour Mining Corporation

Endeavour is a Canadian-based gold mining company producing over 400,000 ounces per year from four mines in West Africa.  Endeavour 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

Total cash costs, cash costs, all-in sustaining costs at the mine level, AISC, adjusted 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'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.

SOURCE: Endeavour Mining Corporation

For further information: Doug Reddy, SVP Business Development, +1 604 609 6114, dreddy@endeavourmining.com


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