PERTH (miningweekly.com) – Dual-listed gold miner Endeavour Mining on Thursday reported that gold production for the full year had exceeded expectations, with the miner targeting further growth in 2013.

Gold production for the full year ended December reached 220 462 oz, including 75 days of production from the Tabakoto mine, which Endeavour acquired in October.

Endeavour CEO Neil Woodyer said the Nzema and Youga mines produced a combined 200 476 oz for the year, exceeding the guidance range of between 180 000 oz and 192 000 oz.

“In October, we acquired our third operating mine, Tabakoto, in Mali, and two attractive projects, Hounde, in Burkina Faso and Kofi, in Mali. In our view, Tabakoto was underperforming due to a lack of working capital, poor management structures, overuse of contractors and excessive site staffing levels.”

Woodyer said that, to counteract this, Endeavour closed the Avion corporate office in Toronto and redirected Tabakoto mine management to report to the company’s COO and senior operations team in Accra, Ghana.

“In December, we started a major restructuring initiative, which has included a 20% reduction in site staff levels during the first quarter of 2013, the termination of the openpit mining contractor in January, and the implementation of cost budgeting and mine reporting systems, which were inadequate under previous management.”

He added that during the 75 days post acquisition, Tabakoto produced 19 985 oz at a cash cost of A$1 250/oz, and with the restructuring now under way, the cash costs had started to improve significantly.

“During 2013, we expect to increase gold production from our three mines to between 310 000 oz and 345 000 oz with growth coming from the nearly-complete mill expansion at Tabakoto, while focusing on managing our costs.”

Woodyer said that, as a result of slower-than-expected access to the higher-grade ore at Nzema’s Adamus pits, Endeavour had revised its 2013 cash cost guidance at Nzema to between $850/oz and $900/oz, and had also increased the cash cost guidance at Tabakoto to between $880/oz and $900/oz owing to the time lag for implementation and realising the benefits of the cost saving measures.

Meanwhile, Endeavour also reported that some 218 887 oz of gold was sold during the year under review, generating revenue of some $365.3-million.