Endeavour Mining reports strong Q2, with cash flow of $47.6 million from production of 50,728 ozs of gold
Wednesday, Aug 08, 2012
Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) announces strong financial and operational results for the second quarter of 2012, including adjusted operating cash flow of $47.6 million. As previously announced on July 16, Endeavour's two operating mines exceeded prior guidance by producing 50,728 ounces during Q2 and 102,691 ozs for H1 2012.
Neil Woodyer, CEO, stated
"Our strong Q2 results clearly demonstrate the benefits of the merger we completed last year with Adamus as both mines continue to perform above previous guidance. Endeavour's adjusted cash flow has increased from $32 million in the previous quarter to $48 million this quarter and our cash position, net of debt, has also increased, from $11 million to $36 million. This financial strength positions us well as we continue to expand in West Africa, with our most significant growth initiative being construction of our third mine, Agbaou. We were very pleased to be informed recently by the Ivorian government that our Mining Permit for Agbaou has been granted and we are expecting receipt of the official permit shortly."
"We are very pleased with the operating results from both Nzema and Youga as well as commencement of construction at Agbaou to add approximately 100,000 ounces per year of production beginning in Q1 2014. We've already ordered our mills for Agbaou, which came in below budget, with delivery planned for June 2013. In September, we plan to begin earthworks, as construction ramps up. We are actively enhancing our existing mines, with power supply improvement projects ongoing at both operations and cost containment programs beginning to take effect. Our largest investment is in exploration, with 80% of that spending focussed on near-mine targets with the objective of extending the life of all our operations, including Agbaou."
Agbaou Project Development
Toward the end of the Q2 2012, Endeavour announced commencement of construction of the Agbaou Gold Project to add production of approximately 100,000 oz per year starting in Q1 2014, completion of an updated NI 43-101 compliant technical report, and selection of our EPCM contractor. The technical report indicated an economically robust project, with a total up-front funding requirement of $159 million and an Internal Rate of Return of 28% on an after-tax, 100% project basis at a gold price of $1,250. Since that announcement, long-lead items have been ordered (including the mills), engineering and planning has progressed and Endeavour's office in Abidjan, Côte d'Ivoire has been staffed. Our next major milestone is expected to be the commencement of earthworks in September of 2012. In addition, the Corporation was recently informed by a senior member of the government that the Ivorian cabinet had approved Agbaou's Mining Permit and, accordingly, receipt of the signed official permit is expected shortly.
Source: Endeavour Mining Corporation