Endeavour Mining Corporation reported record gold production of 346 041 ounces in the 9 months ended September 30, as its Burkina Faso mine continued operation despite civil unrest.
“The Youga mine continues to operate without interruption following the civil unrest and ensuing events in Burkina Faso. The Youga mine is located approximately 180 kilometres from Ouagadougou and is near the border with Ghana,” said CEO Neil Woodyer.
The company also reported a gold production of 117 612 ounces resulting in an all-in sustaining margin of $32.1 million in Q3 2014. The all-in sustaining costs (AISC) of $991/oz during Q3 2014 is significantly improved from $1,118/oz in Q3 2013.
“During 2013, our AISC was $1,146 per ounce. In July 2013, we set an AISC target of less than $1,000 per ounce as we implemented a targeted optimization and investment program to achieve this result. With an AISC of $991 per ounce this quarter, we are extremely pleased to have achieved our target,” said Woodyer.
“Looking forward, we are now transitioning out of the capital investment programs and into free cash flow generation. Endeavour anticipates using a portion of its free cashflow to reduce outstanding debt balances.”
Endeavour continues to benefit from strong performance at Agbaou and is completing a significant optimization and investment phase at Tabakoto.
Agbaou has performed strongly and has now exceeded the original guidance of 85 000 to 95 000 ounces for the year. Plant throughput of 2.2 Mtpa of softer oxide ore is 37% higher than the original design of 1.6 Mtpa
Investments in Tabakoto’s optimization and development of lower cost sources of ore are nearing completion and set to generate improved operating margins in Q4 2014 and beyond. This includes the ramp up of the new Segala underground mine, which achieved the 1,500 tonnes per day milestone in September.
“Agbaou continues to exceed our expectations from the mine feasibility study and is a significant cash flow generator for the company. Results from the ongoing Agbaou drilling program, some of which were announced in October, give us confidence of being able to replace and expand our reserve base and extend the mine life at Agbaou,” concluded Woodyer.
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