PERTH (miningweekly.com) – ASX- and TSX-listed gold miner Endeavour Mining on Thursday announced that its cost reduction measures were delivering fruit in the second quarter of 2013, with all-in sustaining costs down 4% to $1 038/oz during the three months to June, compared with the $1 083/oz reported in the first quarter.

In May, the miner, which owns three mines in Mali, Ghana and Burkina Faso, announced that it would cut back on its 2013 capital spend as market volatility in the gold sector continued. A number of cost savings were implemented, including a reduction in the exploration budget and corporate expenses.

“We have responded vigorously to the more challenging gold price environment and put the company on a much stronger footing to withstand lower long-term gold prices,” said CEO Neil Woodyer.

He noted that Endeavour had focused on prudent growth, with projects that decreased operating costs.

“During the second quarter, we completed ramp-up of the Tabakoto mill expansion, which will increase production and lower costs in the second half of this year. We’re over 80% complete on our construction of Agbaou, which is on track to begin production in the first quarter of 2014 and is expected to be our lowest cost mine.”

Woodyer added that the company had also been cutting costs at its existing operations, including employee reductions in the first six months at the Nzema, Youga and Tabakoto operations.

“Thirdly, we have increased our debt facility to provide greater financial flexibility and ensure we have the resources we need to complete Agbaou,” Woodyer said.

During the second quarter, ending June, Endeavour delivered some 75 421 oz of gold, compared with the 50 728 oz delivered in the previous corresponding period.

Gold sold during the quarter reached 73 004 oz for a cash margin of $30.7-million.

Woodyer said that Endeavour expected a stronger second half of 2013, with higher production and lower costs, adding that the company was on track to achieve its production and cost guidance for the year.

“In addition, we anticipate good year-over-year growth in 2014, with further cost reductions. We are targeting all-in sustaining costs, including underground development expenses at operating mines, of around $1 000/oz for the group,” he said.