Endeavour Mining to beat production guidance

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Burundi urges increase in share income on mining operations

Endeavour Mining has announced plans to beat its full-year production guidance following a reported strong third-quarter results.

382 000 oz at an all-in sustaining cost (AISC) of $904/oz was produced by the West Africa-focused gold miner in the third quarter, taking year-to-date output to 1.14-million ounces. Production decreased by 7% quarter-on-quarter, mainly owing to the rainy season, while AISC increased by $50/oz.

President and CEO Sebastien de Montessus  announced that the group’s full-year guidance, which it looks set to beat, is 1.37-million to 1.5-million ounces at an AISC of $850/oz to $900/oz. It will be the ninth year in a row that Endeavour would exceed its production guidance.

Strong performance

The gold producer reported revenue of $692-million in the quarter, down from $753-million in the June quarter, mainly owing to lower sales together with a lower realised gold price. Adjusted earnings fell to $153-million, or $0.61 a share, from $183-million, or $0.73 a share, in the preceding quarter.

“Given this strong performance we expect to generate well in excess of $1-billion in operating cash flow for the full year, which has already significantly improved our balance sheet strength and bolstered our ability to reward shareholders,” said De Montessus.

“Having already returned $224-million in dividends and share buybacks this year, and considering our near zero net debt to adjusted Ebitda leverage ratio, we expect to continue to supplement our shareholder return programme with further share buybacks and deliver more than the guided minimum dividend of $125-million for the full year.”

De Montessus said that Endeavour’s growth pipeline continued to develop with the Sabodala-Massawa Phase 1 expansion, in Senegal, on track for completion in the fourth quarter. The definitive feasibility studies for the Sabodala-Massawa Phase 2 expansion, and the Fetekro and Kalana projects, in Cote d’Ivoire and Mali respectively, were progressing well.

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