Photo by: Bloomberg
PERTH (miningweekly.com) – Dual-listed gold miner Endeavour Mining has swung to profit during the June quarter, on the back of record gold production from its mines in Africa.
During the second quarter, Endeavour reported earnings before interest, tax, depreciation and amortisation of $40.2-million, compared with an adjusted net loss of A$11.6-million in the previous corresponding period.
The previous year’s net loss incorporated an after-tax impairment charge of $225.4-million, resulting largely from a $141.8-million charge associated with the Nzema mine, in south-western Ghana.
Endeavour reported on Tuesday that its higher second-quarter earnings were driven by record gold production of 122 517 oz, which pushed half-year production to a record 228 429 oz.
Earnings before interest, tax, deprecation and amortisation for the half-year period reached $76.3-million.
During the quarter ended June, revenue generated from gold sales increased to $153.4-million, compared with the $101.1-million reported in the previous corresponding period, boosting half-year revenue to $290.6-million, compared with the $218-million reported in the previous corresponding period.
“With gold production for the first half of 2014 of 228 000 oz, we now expect to achieve the top end of the guidance range of 400 000 oz to 440 000 oz for the full year,” said Endeavor CEO Neil Woodyer.
“We have also been focused on managing our costs and are pleased with the continued improvements in the second quarter, as compared with the first, and as compared with last year.”
Endeavour’s all-in sustaining costs were recorded at $1 039/oz, which was within the company’s full-year guidance range of between $985/oz and $1 070/oz.
Woodyer pointed out that during the second quarter, Endeavour converted its Tabakoto mine, in Mali, to owner-operated, with the underground team advancing the new Segala mine.
The Tabakoto mine produced some 36 408 oz of gold during the three months to June, while the Agbaou mine, in Cote d’Ivoire, produced 31 878 oz. The Nzema mine, in Ghana, produced a further 35 946 oz during the quarter, while the Youga mine, in Burkina Faso, produced the balance of 18 285 oz.
Woodyer predicted that mining costs would likely reduce in the period ahead, as the conversion to owner-mining was completed at Tabakoto.
The company was also working on developing additional sources of long-term mill feed to supplement ore from its two underground mines.