TSX-listed gold miner Endeavour Mining Corporation has produced 517 948 oz of gold in 2015, exceeding its 2015 production guidance range of 475 000 to 500 000 ounces, the company reported on Friday.
This total production amount includes 5 689 oz of gold from the newly acquired Ity mine, in Côte d'Ivoire, with the remaining 512 259 oz produced from the Agbaou, Nzema, Tabakoto and Youga mines.
Despite this production figure, the company expects its 2015 AISC/oz to be slightly below the $930 to $980 guidance range predicted.
At December 31, 2015 Endeavour’s cash balance was $110 million and net debt was reduced to $143 million, a 44% decrease, compared with $254 million at the start of the year.
For 2016, Endeavour Mining has provided a gold production guidance of 575 000 to 600 000 ounces. Its AISC/oz is expected to decrease to $875 to $925.
While the mine production forecasts are largely in line with 2015 production rates, Agbaou production is expected to decline modestly due to changing ore feed, while Nzema production is expected to increase with additional deliveries of high grade third-party ore during the Adamus pit push-back period.
Further, Tabakoto’s production is expected to increase as the operating improvements of the fourth quarter of 2015 are sustained in 2016.
“During 2015, the strong performance of our mining operations, the creation of a strategic partnership with Naguib Sawiris, the significant reduction in our net debt, our continued growth with the addition of Ity as our fifth gold mine, and the advancement of our strong project development pipeline have all been important contributors to the 80% increase in our share price, in an environment where the S&P TSX Global Gold Index declined by 10%, says Endeavour CEO Neil Woodyer.
He believes that the company is well positioned to continue its growth strategy at this low point in the gold price cycle with its reconstituted balance sheet providing it with good downside protection.