Endeavour Mining reports Q2 2011 Cash Flow from Mine Operations of $13.3 million and earnings of $32.8 million
GEORGE TOWN, Grand Cayman, Aug. 10, 2011 /CNW/ --
Toronto Stock Exchange: EDV
(All figures are in US dollars unless otherwise indicated)
GEORGE TOWN, Grand Cayman, Aug. 10, 2011 /CNW/ - Endeavour Mining
Corporation ('Endeavour' or the 'Corporation') (TSX: EDV) today
announces financial and operational results for the second quarter of
2011.
The Corporation's Youga Mine in Burkina Faso produced 21,575 ounces of
gold during Q2 2011 at cash cost of $586 per ounce produced(1). During the quarter, 24,697 ounces of gold were sold at a cash cost of
$512 per ounce sold(1) and operating cash flow from mine operations was $13.3 million. The
combination of steady gold production, reducing inventory levels
through higher gold sales, and continued strength in gold price
resulted in strong financial results.
At June 30, 2011, the Corporation had cash & equivalents and marketable
securities of $195 million and was debt-free. The Corporation also
holds a 38.5% stake in Namibia Rare Earths Inc., a recent IPO on the
TSX, with a market value of $17.7 million as at June 30, 2011.
Financial Highlights from Q2 2011
-- Gold revenues of $36.0 million, which compares to $20.8 million
in the same quarter of 2010
-- Gold production of 21,575 ounces, which compares to 20,292
ounces in the same quarter of 2010
-- Gold sales of 24,697 ounces, which compares to 17,566 ounces in
the same quarter of 2010
-- Earnings from mine operations were $14.8 million, which
compares to $7.2 million in the same quarter of 2010
-- Operating cash flow from mine operations was $13.3 million,
which compares to $6.7 million in the same quarter of 2010
-- Net earnings attributable to shareholders of $32.8 million or
$0.29 per share, which compares to $8.9 million or $0.09 per
share in the same quarter of 2010. The significant increase in
earnings during the current quarter is due to strong earnings
from the mine operations and a one-off gain of $22.1 million
associated with the Namibia Rare Earths Inc. IPO transaction.
Based on actual production results of 41,631 ounces at a cash cost of
$608 per ounce produced(1) for the first half of 2011 and the budgeted plan for the remainder of
2011, the Corporation anticipates achieving full year guidance of
approximately 84,000 ounces. With recent fuel price and indirect tax
increases in Burkina Faso, the Corporation's guidance for 2011 cash
costs has been revised to $610 to $650 per ounce(1), which compares to previous guidance of approximately $600 per ounce(1).
Neil Woodyer, Chief Executive Officer commented: 'Our strong Q2 2011
results were generated by our focus on optimizations and cost controls
at the Youga Mine and with better management of gold inventory levels.
As Youga's primary source of energy for processing operations is
electric grid power from Ghana, and not diesel, the impact of recent
increases in fuel surcharges in Burkina Faso will be modest as compared
to some of our peers.
As discussed in our August 3, 2011 press release, we are excited by the
discovery of new zones of mineralization at our Agbaou
feasibility-stage project in Côte d'Ivoire. A mine construction
decision for Agbaou is anticipated for Q1 2012 with gold production
scheduled to commence in late 2013. In addition to engineering
studies, we are now planning a drilling program to follow-up on this
new mineralization. Our exploration activities on the Youga Gold Belt
in Burkina Faso continue to be successful at identifying additional
mineral resources, particularly around the operational pits and A2NE,
Nanga, and Tail satellite deposits. Metallurgical testwork is being
initiated at the Ouaré deposit, located 40km from the Youga Mine, in
preparation for scoping studies to evaluate whether the deposit will be
processed by agitation or heap leaching.
We anticipate extending the mine life at Youga with near-mine
exploration programs and growing our gold production from Agbaou and
Ouaré development projects and our additional exploration programs in
West Africa.'
Conference Call Details
Management's discussion of the financial results will be webcast by
V-Call on Wednesday, August 10, 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 August 10, 2012.
In order to access the Corporation's financial statements directly,
please click the following URL: http://files.newswire.ca/910/EndeavourCall.pdf
Financial Statements and related Management Discussion and Analysis will
also be available on SEDAR.
Qualified Person
K. Kirk Woodman, P. Geo, Head of Exploration is the Qualified Person
overseeing Endeavour's exploration projects in West Africa and has
review 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
'Christian Milau'
Christian Milau
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 operating costs excluding 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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/10/c2766.html
Stephen Roberts, Senior Vice President - Investor Relations (604) 609-6130, sroberts@endeavourmining.com
or
Vanguard Shareholder Solutions 1-866-341-4111 or (604) 608-0824, investor@endeavourmining.com