PERTH (miningweekly.com) – Dual-listed gold miner Endeavour Mining has moved to lower its operating cost profile, while also enhancing its financial flexibility.

The ASX- and TSX-listed company reported on Thursday that it had increased its revolving corporate loan facility from $200-million to $350-million, with the term extended to five years.

As Endeavour has previously drawn $200-million under the original facility provided, the new facility provided $100-million of additional credit. The remaining $50-million of the facility would be available after the construction of the Agbaou mine, in Côte d'Ivoire, and could be used to fund expansions and other capital projects.

“We are very pleased with the strong support for our operations and development projects, which we have received from five of the top global mining banks,” said Endeavour CEO Neil Woodyer.

“Even in these volatile gold price and challenging capital markets, we will be able to finance our current construction plans and also take advantage of additional capital projects to improve the cash generation and value of our current operations.”

Endeavour has previously announced that it would cut back on capital spending this year, in response to market volatility.

The miner said in May that a number of cost reductions were being implemented for the remainder of the year, including cutting the full-year exploration budget by A$5-million to A$15-million, reducing its land position by some 50% to lower spending commitments on noncore properties, reducing corporate expenses by A$5-million and selling its noncore rare earths assets.

“In parallel, we have a sharp focus on improving the generation of cash flow and earnings before interest, tax, depreciation and amortisation from our current three mines,” Woodyer said Thursday.

He noted that the Agbaou mine, with its access to grid power and free-dig ore, was positioned to become a strong cash flow generating operation by producing gold at a target of less than $800/oz on an all-in sustaining cash cost basis in 2014.

“The expansion of Tabakoto [in Mali], the completion of Agbaou, our cost reduction programmes and increased owner mining will help us achieve our 2014 planning targets, which include producing over 400 000 oz, cash costs in the range of $800/oz, and all-in sustaining costs in the range of $1 000/oz,” Woodyer added.

Meanwhile, Endeavour told shareholders that based on the operating results until the end of June, the company had stuck to its full 2013 production guidance of between 310 000 oz and 345 000 oz.

During the six months to June, Endeavour produced 149 075 oz of gold, while second-half production was forecast to be between 165 000 oz and 180 000 oz. The increased gold production during the second half of the year would be sourced from the expanded mill at the Tabakoto mine, as well as improved processed grade at Nzema, in Ghana.