Toronto-listed gold miner Endeavour Mining on Tuesday reported lower-than-guided all-in sustaining costs (AISC) and higher production, as it benefitted from the first full-year of production at the low-cost Hounde mine, in Burkina Faso.

Full-year production from continuing operations increased by 52% to 612 000 oz, beating the top-end of the West Africa-focused miner’s guidance of 550 000 oz to 590 000 oz, while AISC decreased by $25/oz from the prior year to $744/oz – well below the guided range of $760/oz to $810/oz.  

Including the high-cost Tabakoto mine that Endeavour sold to Algom Resources in December, the company produced a total of 727 000 oz and its AISC were $843/oz in 2018. The Mali-based operation’s ASIC was $1 369/oz last year.

“The first full-year contribution from Houndé, coupled with the successful management of our portfolio, has sustainably decreased our all-in sustaining costs to below our strategic target of $800/oz,” said Endeavour president and CEO Sébastien de Montessus.

He stated that 2019 was expected to be another strong year for Endeavour, with the first gold pour at the Ity carbon-in-leach (CIL) plant expected in the coming weeks.

“Over the past two years, we have transformed our portfolio, investing nearly $1-billion into the business. Once Ity CIL commences production, we expect to enter a period of sustained strong free cash flow generation with a continued focus on return on capital employed,” De Montessus commented in a statement.

Despite the focus at Ity shifting to CIL construction activities, the heap-leach operation performed above expectations, producing 85 000 oz at an AISC of $719/oz in 2018.

The flagship Hounde mine produced 227 000 oz at an AISC of $564/oz in 2018 and is expected to produce between 230 000 oz and 250 000 oz at an AISC of $720/oz to $790/oz in 2019.

The Agbaou mine, Cote d’Ivoire, is forecast to produce between 120 000 oz and 130 000 oz at an ASIC of $850/oz to $900/oz, which is below the 141 000 oz produced in 2018 at an AISC of $819/oz

The Karma mine, in Burkina Faso, produced 109 000 oz at an AISC of $813/oz. Its guided range for 2019 is between 105 000 oz and 115 000 oz at an AISC of $860/oz to $910/oz.

De Montessus highlighted the maiden resource at Houndé's Kari Pump discovery as Endeavour’s most notable exploration achievement in 2018.

“In 2019 we look forward to converting this discovery into reserves. We will maintain an aggressive exploration program focused specifically at Houndé where we expect further maiden resources on new discoveries. In addition, we will look to further grow the resource in the Le Plaque area at Ity and advance exploration at our greenfield properties.”