Endeavour Mining Delivers 102,691 Oz of Gold Production in First Half of 2012 and Updates Guidance
July 16 2012 - 8:50AM
PR Newswire (Canada)
VANCOUVER, July 16, 2012 /CNW/ - Endeavour Mining Corporation
("Endeavour") announces total production of 102,691 ounces of gold
in the first half of 2012, including 4,813 ounces produced at Nzema
from ore purchased from an independent producer ("purchased
ore"). As a result of the strong H1 performance, the Company
is updating its full year 2012 production guidance to between
187,000 and 202,000 ounces of gold (see Table 2). Endeavour
anticipates releasing its full quarterly results in early August.
Production results for the second quarter ending June 30, 2012
include 27,863 ounces from the Nzema mine and 22,865 ounces from
the Youga mine for total gold production of 50,728 ounces (see
Table 1). Nzema cash costs (excluding purchased ore ounces) were in
the range of $620-640 per ounce and Youga's cash costs were in the
range of $590-610 per ounce. Costs were at the lower end of
guidance for both mines, due in part to successful cost containment
initiatives. At Nzema, the number of employees has been reduced by
restructuring some positions and continuing efforts to optimize
throughput at the plant are reducing unit costs. Both Youga and
Nzema have reduced inventory levels as well as supply costs through
bulk buying and improved sourcing. Neil Woodyer, CEO, stated "We
are pleased to deliver above-guidance production results from our
two mines for the first half of 2012. Our strong performance to
date has allowed us to increase our production guidance for the
year by about 8%. Given our focus on growth, the most important
result of expanding production is increasing cash flow, which funds
exploration, potential acquisitions and development, including
construction of our third mine, now underway." Table 1: Gold
production from the first two quarters of 2012
____________________________________________ | | Q1 | Q2 | H1 | |
Ounces Produced |______|______|_______| | | (oz) | (oz) | (oz) |
|______________________|______|______|_______| |Youga
|23,988|22,865| 46,853|
|______________________|______|______|_______| |Nzema
|25,543|25,482| 51,025|
|______________________|______|______|_______| |Sub-total
|49,531|48,347| 97,878|
|______________________|______|______|_______| |Purchased Ore at
Nzema| 2,432| 2,381| 4,813|
|______________________|______|______|_______| |Total
|51,963|50,728|102,691|
|______________________|______|______|_______| Table 2: Full
year 2012 Gold Production Guidance, Updated to between 187,000 and
202,000 ounces
________________________________________________________________ |
|Gold Production (Ounces)|Total Cash Cost ($/ounce)| | Mine
|________________________|_________________________| | | New
guidance |Previous |New guidance| Previous | | | |guidance | |
guidance |
|_____________|______________|_________|____________|____________|
|Nzema | 95,000 - |92,000 - |$680 - $700 |$630 - $670 | | | 102,000
| 102,000 | | |
|_____________|______________|_________|____________|____________|
|Youga | 85,000 - |78,000 - |$655 - $675 |$660 - $700 | | | 90,000
| 88,000 | | |
|_____________|______________|_________|____________|____________|
|Sub-total | 180,000 - |170,000 -|$670 - $690 |$645 - $685 | | |
192,000 | 190,000 | | |
|_____________|______________|_________|____________|____________|
|Nzema |7,000 - 10,000| N.A. |see Note 11 | N.A. | |Purchased Ore|
| | | |
|_____________|______________|_________|____________|____________|
|Total | 187,000 - | | | | | | 202,000 | | | |
|_____________|______________|_________|____________|____________|
Note 1: Effective July 1, 2012, Nzema formally agreed on terms for
a two year contract to purchase on average 4,000 tonnes of material
per month (less than 2% of overall throughput at Nzema) at a
minimum grade of 6 g/t. Ore purchase cost is 60% of the
recoverable gold at spot gold prices, the incremental processing
costs are negligible and the ore supplier pays 50% of the 5%
royalty on recovered ounces. At a gold price of $1,600 per ounce,
purchased ore milling is expected to add approximately $5 million
to operating cash flow on an annualized basis Qualified Persons
Adriaan "Attie" Roux, Pr. Sci. Nat, Endeavour's Senior Vice
President - Operations, 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 gold producer delivering growth.
Endeavour owns two gold mines producing approximately 180,000 oz
per year in Ghana and Burkina Faso that are generating significant
operating cash flows to fund exploration and development growth. In
addition to upside potential at its current operations, Endeavour's
third gold mine, Agbaou in Côte d'Ivoire has entered the
construction phase for an additional 100,000 oz per year during Q1
2014. Endeavour's strong financial base encourages investments in
long-term operational growth, exploration to replace and increase
reserves, and funding for acquisitions. Endeavour Mining
Corporation is listed on the TSX (symbol EDV) and ASX (symbol EVR),
and also trades on the OTCQX (symbol EDVMF). On behalf of Endeavour
Mining Corporation Neil Woodyer Chief Executive Officer 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. Endeavour Mining Corporation CONTACT: Marla
GaleVice President - Investor Relations+1 604 609
6117mgale@endeavourmining.comEndeavour Mining CorporationCayman
Corporate Centre27 Hospital RoadGeorge Town, Grand Cayman,KY1 1109,
Cayman IslandsTel: +1 345 946 7603Fax: +1 345 946
7604www.endeavourmining.comA Cayman Islands exempted company with
limited liability.ARBN 153 067 639
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