Endeavour Posts Record 2016 Results
posted on
Mar 07, 2017 09:14AM
ENDEAVOUR POSTS RECORD 2016 RESULTS
Production up 13% · AISC down to record low $884/oz · Cash flow generation up 55%
Q4 AND FY-2016 HIGHLIGHTS
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George Town, March 7, 2017 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce its financial and operating results for the fourth quarter and full year ended December 31, 2016, with highlights provided in the table below.
Table 1: Key Operational and Financial Highlights
QUARTER ENDED1,2 | year ENDED1 | ||||||
Dec. 31, 2016 |
Sept 30, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Change | ||
Gold Production, oz | 175, 411 | 146,425 | 136,844 | 583,712 | 516,646 | +13% | |
Realized Gold Price, $/oz | 1,177 | 1,328 | 1,102 | 1,234 | 1,157 | +7% | |
AISC, $/oz | 855 | 898 | 912 | 884 | 922 | (16%) | |
All-in Sustaining Margin, $/oz | 322 | 430 | 167 | 351 | 235 | +53% | |
Cash Generated From Operating Activities, $m | 72 | 23 | 39 | 154 | 144 | +7% | |
Cash Used (Generated) in Investing Activities, $m | 79 | 57 | (61) | 180 | 7 | n.a | |
Free Cash Flow Before Growth Projects3, $m | 42 | 41 | 13 | 142 | 92 | +55% | |
Net Debt At Period End, $m | 26 | 14 | 144 | 26 | 144 | (77%) | |
Earnings From Mine Operations, $m | 45 | 52 | 16 | 168 | 99 | +70% | |
Net Earnings (Loss), $/share | (0.57) | 0.16 | 0.08 | (0.83) | 0.42 | n.a. | |
Adjusted Earnings (Loss), $/share | 0.44 | 0.25 | (0.18) | 1.15 | 0.47 | +145% |
Sébastien de Montessus, President & CEO, stated: "We are proud to have met all of our guidance for the year, achieving record production of 584koz with a significant increase in Q4 compared to Q3, particularly at Agbaou and Tabakoto which increased by 16% and 30% respectively. We are pleased with the continued ramp up at Karma, which has increased production by 43% over the previous quarter to 29koz, while the reserve conversion at the North Kao deposit has extended its mine life beyond 10 years. This strong group performance has allowed us to lower our All-In Sustaining Costs below $900/oz for the first time, and we are on track to continue that momentum in 2017. We have also significantly deleveraged our balance sheet this year, providing strong liquidity and financing sources to fund our organic growth.
Last year's strong performance, which continued in the first quarter, leaves us in a solid position to continue to increase production to 600-640koz and further lower the group's AISC to $860-905/oz in 2017, without the contribution of Houndé for which the construction is progressing on-budget and on-schedule for a first gold pour for Q4.
Looking ahead, we remain focused on unlocking further organic growth potential, with an upcoming investment decision at our Ity CIL development project and through our reinvigorated exploration program."
RECORD HIGH PRODUCTION & RECORD LOW AISC FOR BOTH Q4 AND FY-2016
Table 2: Group Production, koz
(All amounts in koz, on a 100% basis) | QUARTER ENDED, | YEAR ENDED DECEMBER 31, | |||||
Q4-2016 | Q3-2016 | Q4-2015 | 2016 | 2015 | Change | ||
Agbaou | 57 | 49 | 52 | 196 | 181 | +8% | |
Tabakoto | 48 | 37 | 42 | 163 | 151 | +8% | |
Nzema | 24 | 24 | 23 | 88 | 110 | (20%) | |
Ity (post-acquisition period for 2015) | 17 | 15 | 6 | 76 | 6 | n/a | |
Karma (including pre-commercial production) | 29 | 20 | - | 62 | - | n/a | |
PRODUCTION FROM CONTINUING OPERATIONS | 175 | 145 | 123 | 585 | 448 | +30% | |
Youga (divested in March 2016) | - | - | 15 | Excluded | 68 | n/a | |
TOTAL PRODUCTION | 175 | 145 | 138 | 585 | 516 | +13% |
Table 3: Group All-In Sustaining Costs, US$/oz
(All amounts in US$/oz) | QUARTER ENDED, | YEAR ENDED DECEMBER 31, | |||||
Q4-2016 | Q3-2016 | Q4-2015 | 2016 | 2015 | Change | ||
Agbaou | 532 | 550 | 537 | 534 | 576 | (7%) | |
Tabakoto | 927 | 1,071 | 1,119 | 1,027 | 1,067 | (4%) | |
Nzema | 1,118 | 1,136 | 1,133 | 1,167 | 1,064 | +10% | |
Ity (post-acquisition period for 2015) | 827 | 724 | 683 | 756 | 683 | +16% | |
Karma (commercial production) | 738 | n/a | - | 738 | - | n/a | |
Youga (divested in March 2016) | - | - | 985 | Excluded | 913 | n/a | |
MINE-LEVEL AISC | 779 | 831 | 862 | 820 | 868 | (4%) | |
Corporate G&A | 52 | 47 | 56 | 46 | 41 | +12% | |
Sustaining Exploration | 25 | 20 | 15 | 18 | 13 | +38% | |
GROUP AISC | 855 | 898 | 934 | 884 | 922 | (3%) |
AGBAOU MINE
Q4 Insights
Table 4: Agbaou Performance Indicators
For The Quarter Ended | Q4-2016 | Q3-2016 | Change |
Tonnes ore mined, kt | 674 | 651 | +4% |
Strip ratio (incl. waste cap) | 8.67 | 9.56 | (9%) |
Tonnes milled, kt | 721 | 709 | +2% |
Grade, g/t | 2.46 | 2.21 | +11% |
Recovery rate, % | 97% | 96% | +1% |
PRODUCTION, KOZ | 57 | 49 | +16% |
AISC/OZ | 532 | 550 | (3) |
Full Year 2016 Insights
Table 5: Agbaou Performance Indicators
For The Year Ended | 2016 | 2015 | Change |
Tonnes ore mined, kt | 2,797 | 2,818 | (1%) |
Strip ratio (incl. waste cap) | 8.07 | 6.26 | +29% |
Tonnes milled, kt | 2,827 | 2,665 | +6% |
Grade, g/t | 2.27 | 2.15 | +6% |
Recovery rate, % | 97% | 97% | - |
PRODUCTION, KOZ | 196 | 181 | +8% |
AISC/OZ | 534 | 576 | (7%) |
2017 Outlook
Exploration Activities
Reserve & Resource Evolution
TABAKOTO MINE
Q4 Insights
Table 6: Tabakoto Performance Indicators
For The Quarter Ended | Q4-2016 | Q3-2016 | Change |
OP tonnes ore mined, kt | 195 | 160 | +22% |
OP strip ratio (incl. waste cap) | 7.17 | 8.81 | (19%) |
UG tonnes ore mined, kt | 253 | 238 | +6% |
Tonnes milled, kt | 402 | 381 | +6% |
Grade, g/t | 3.93 | 3.11 | +26% |
Recovery rate, % | 95% | 95% | - |
PRODUCTION, KOZ | 48 | 37 | +30% |
AISC/OZ | 927 | 1,071 | (13%) |
Full-Year 2016 Insights
Table 7: Tabakoto Performance Indicators
For The Year Ended | 2016 | 2015 | Change |
OP tonnes ore mined, kt | 649 | 511 | +27% |
OP strip ratio (incl. waste cap) | 9.94 | 17.20 | (42%) |
UG tonnes ore mined, kt | 944 | 860 | +10% |
Tonnes milled, kt | 1,588 | 1,588 | - |
Grade, g/t | 3.36 | 3.17 | +6% |
Recovery rate, % | 95% | 93% | +2% |
PRODUCTION, KOZ | 163 | 151 | +8% |
AISC/OZ | 1,027 | 1,067 | (4%) |
2017 Outlook
Exploration Activities
Reserve & Resource Evolution
ITY MINE
Q4 Insights
Table 8: Ity Performance Indicators
For The Quarter Ended | Q4-2016 | Q3-2016 | Change |
Tonnes ore mined, kt | 316 | 200 | +58% |
Strip ratio (incl. waste cap) | 3.66 | 3.74 | (2%) |
Tonnes stacked, kt | 295 | 271 | +9% |
Grade, g/t | 2.0 | 1.9 | +5% |
Recovery rate, % | 90% | 91% | (1%) |
PRODUCTION, KOZ | 17 | 15 | +13% |
AISC/OZ | 827 | 724 | +14% |
Full-Year 2016 Insights
Table 9: Ity Performance Indicators
For The Year Ended | 2016 | 2015* |
Tonnes ore mined, kt | 1,186 | 64 |
Strip ratio (incl. waste cap) | 4.15 | 4.86 |
Tonnes stacked, kt | 1,173 | 71 |
Grade, g/t | 2.20 | 2.39 |
Recovery rate, % | 93% | 81% |
PRODUCTION, KOZ | 76 | 6 |
AISC/OZ | 756 | 683 |
*For the post Acquisition Period
2017 Outlook
Exploration and Resource/Reserve Evolution
Reserve & Resource Evolution
NZEMA MINE
Q4 Insights
Table 10: Nzema Performance Indicators
For The Quarter Ended | Q4-2016 | Q3-2016 | Change |
Tonnes ore mined, kt | 288 | 222 | +30% |
Strip ratio (incl. waste cap) | 9.02 | 11.83 | (24%) |
Total Tonnes milled, kt | 428 | 424 | +1% |
Grade, g/t | 2.20 | 2.40 | (8%) |
Recovery rate, % | 82% | 82% | +5% |
PRODUCTION, KOZ | 24 | 24 | 0% |
AISC/OZ | 1,118 | 1,136 | (2%) |
Full-Year 2016 Insights
Table 11: Nzema Performance Indicators
For The Year Ended | 2016 | 2015 | Change |
Tonnes ore mined, kt | 1,000 | 1,310 | (24%) |
Strip ratio (incl. waste cap) | 8.30 | 5.22 | +60% |
Tonnes milled, kt | 1,761 | 1,783 | (1%) |
Grade, g/t | 1.87 | 2.21 | (15%) |
Recovery rate, % | 83% | 87% | (5%) |
PRODUCTION, KOZ | 88 | 110 | (25%) |
AISC/OZ | 1,167 | 1,064 | +10% |
2017 Outlook
Exploration Activities
Reserve & Resource Evolution
KARMA MINE
Full-Year 2016 Insights
Table 12: Karma Performance Indicators
For The Quarter Ended | Q4-2016 | Q3-2016 | Change |
Tonnes ore mined, kt | 783 | 650 | +20% |
Strip ratio (incl. waste cap) | 4.14 | 3.68 | +13% |
Tonnes stacked, kt | 853 | 880 | (3%) |
Grade, g/t | 1.14 | 1.21 | (6%) |
Recovery rate, % | 90% | 90% | 0% |
PRODUCTION, KOZ | 29 | 20 | +45% |
AISC/OZ | 738 | n.a. | n.a. |
Q4 2016 Insights
Table 13: Karma Performance Indicators
For The Year Ended | 2016 |
Tonnes ore mined, kt | 1,879 |
Strip ratio (incl. waste cap) | 3.66 |
Tonnes stacked, kt | 2,089 |
Grade, g/t | 1.16 |
Recovery rate, % | 90 |
PRODUCTION, KOZ | 62 |
AISC/OZ | 738 |
2017 Outlook
Exploration Activities
Reserve & Resource Evolution
HOUNDE CONSTRUCTION REMAINS ON-TIME AND ON-BUDGET
Construction Achievement To-Date
Table 14: Remaining capital spend, in $m |
|
UPFRONT PROJECT CAPITAL | 328 |
Capital spent in 2016 | (102) |
Mining fleet equipment financing | (47) |
REMAINING CAPITAL SPEND | ~180 |
Exploration Activities
GROUP RESERVES AND RESOURCES
Table 15: Reserve and Resource Evolution
In Moz on a 100% basis | December 31, 2016 |
December 31, 2015 Pro-Forma1 |
December 31, 2015 |
Change Dec 31, 2016 vs. Dec 31, 2015 |
|
P&P Reserves | 7.1 Moz | 6.7 Moz | 5.9 Moz | +1.2 Moz | +19% |
M&I Resources (inclusive of Reserves) | 12.6 Moz | 12.8 Moz | 11.0 Moz | +1.6 Moz | +15% |
Inferred Resources | 3.7 Moz | 4.7 Moz | 2.4 moz | +1.3 Moz | +51% |
1Pro-Forma for sale of Youga mine and purchase of Karma. Notes available in Apendix 2 for the 2016 Mineral Reserves and Resources. For 2015 Reserves and Resource notes, please consult Company's press release dated March 4, 2016, entitled "Endeavour Mining to acquire True Gold to grow its low-cost gold production" available on the Company's website.
INCREASED CASH FLOW GENERATION
Table 16: Simplified Cash Flow Statement
12 MONTHS ENDED DECEMBER, | |||
(in US$ million) | 2016 | 2015 | |
GOLD SOLD, koz | 546 | 520 | |
Gold Price, $/oz | 1,234 | 1,157 | |
REVENUE | 673 | 522 | |
Total cash costs | (371) | (316) | |
Royalties | (32) | (26) | |
Corporate costs | (25) | (22) | |
Sustaining capex | (44) | (48) | |
Sustaining exploration | (10) | (7) | |
AISC COSTS | (482) | (419) | |
AISC MARGIN | 191 | 103 | |
Less: Non-sustaining capital | (26) | (24) | |
Less: Non-sustaining exploration | (23) | (7) | |
Operating cash flow from Youga discontinued operation | - | 20 | |
FREE CASH FLOW BEFORE GROWTH PROJECTS (and before working capital, tax & financing costs) |
142 | 92 | |
Working capital | (27) | 6 | |
Taxes paid | (11) | (7) | |
Interest paid | (20) | (25) | |
Cash settlements on hedge programs and gold collar premiums | (14) | (3) | |
NET FREE CASH FLOW FROM OPERATIONS | 70 | 62 | |
Growth Project | (110) | (7) | |
Change in growth project working capital | (6) | - | |
Cash received for Youga mineral property interests (net) | 22 | - | |
Cash received for Ity mineral property interests (net) | - | 86 | |
True Gold (Bridge loan, cash acquired, less change of control payments) | (11) | - | |
Restructuring and acquisition costs | (24) | - | |
Other | (1) | (30) | |
Net equity proceeds | 185 | - | |
NET CASH/(NET DEBT) VARIATION | 125 | 110 | |
Reduction of debt obligations | (110) | (63) | |
CASH INFLOW (OUTFLOW) FOR THE PERIOD | 15 | 47 |
SOUND BALANCE SHEET AND STRONG FINANCING & LIQUIDITY SOURCES
Table 17: Net Debt Reduction, in US$m
(in US$ million) | December 31, 2016 | September 30, 2016 | December 31, 2015 |
Cash | 124 | 137 | 110 |
Less: Equipment finance lease | (10) | (11) | (13) |
Less: Drawn portion of $350 million RCF | (140) | (140) | (240) |
NET DEBT/(CASH) POSITION | 26 | 14 | 144 |
NET DEBT / EBITDA (LTM) RATIO | 0.11x | 0.08x | 1.02x |
ADJUSTED NET EARNINGS PER SHARE INCREASED BY 143%
o $71 million adjustment for an Nzema impairment charge due to the removal of sulfide material from the valuation model as the Company has no plans to invest in its related sulfide mill expansion, in line with management's strategy of focusing efforts on long-life low AISC assets.
o $45 million add-back of non-cash deferred tax expense, mainly comprised of the de-recognition of historical carry-forward losses at Nzema (shorter life due to removal of sulfide material), the Tabakoto new tax structure decided between Segala and Kofi subsidiaries with the Government, and Accelerated depreciation at Karma utilized in 2016 resulting in a reduced tax base.
o $24 million of acquisition and restructuring costs, as detailed above.
o $12 million loss on financial instruments relates primarily to realized and unrealized losses in 2016 on FCFA denominated currency due to the Euro devaluation against the US dollar, while in 2015 the Company realized a gain due to the Euro appreciation.
o Adjustment for the removal of discontinued Youga operation, as it was sold in 2016.
Table 18: Net Earnings and adjusted earnings
Three months ended | YEAR ended | |||||
($ in millions except per share amounts) | Dec 31, 2016 |
Sept.30, 2016 |
Dec 31, 2015 |
Dec 31, 2016 |
Dec 31, 2015 |
|
TOTAL NET EARNINGS | (69) | 24 | (21) | (52) | 36 | |
Less adjustments (see MD&A) | 110 | 9 | 16 | 166 | 2 | |
ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS | 40 | 33 | (5) | 114 | 38 | |
Less portion attributable to non-controlling interests | (1) | 10 | 4 | 21 | 18 | |
ATTRIBUTABLE TO SHAREHOLDERS | 43 | 23 | (9) | 93 | 20 | |
Divided by weighted average number of O/S shares | 93 | 92 | 48 | 81 | 43 | |
ADJUSTED NET EARNINGS PER SHARE (BASIC) FROM CONTINUING OPERATIONS |
$0.44 | $0.25 | ($0.18) | $1.15 | $0.47 |
2017 OUTLOOK: FURTHER PRODUCTION GROWTH AND AISC REDUCTION
Table 19: Production Guidance, koz
on a 100% basis | 2016 ACTUAL | 2017 GUIDANCE | ||
Agbaou | 195,505 | 175,000 | - | 180,000 |
Tabakoto | 162,817 | 150,000 | - | 160,000 |
Nzema | 87,710 | 100,000 | - | 110,000 |
Ity | 75,867 | 75,000 | - | 80,000 |
Karma | 61,813 | 100,000 | - | 110,000 |
GROUP-WIDE PRODUCTION | 583,712 | 600,000 | - | 640,000 |
Table 20: AISC Guidance, $/oz
In $/oz | 2016 ACTUAL | 2017 GUIDANCE | ||
Agbaou | 534 | 660 | - | 700 |
Tabakoto | 1,027 | 950 | - | 990 |
Nzema | 1,167 | 895 | - | 940 |
Ity | 756 | 740 | - | 780 |
Karma | 738 | 750 | - | 800 |
MINE-LEVEL AISC | 820 | 800 | - | 850 |
Corporate G&A | 46 | 37 | - | 34 |
Sustaining exploration | 18 | 23 | - | 22 |
GROUP AISC | 884 | 860 | - | 905 |
Table 21: Exploration Guidance, $m
On a 100% basis | 2017 GUIDANCE |
Agbaou | 7 |
Tabakoto | 9 |
Ity | 10 |
Karma | 4 |
Houndé | 5 |
EXPLORATION EXPENDITURES FOR MINES | 35 |
Grassroots exploration expense | 5 |
TOTAL EXPLORATION EXPENDITURES | 40 |
Table 22: Capital Expenditure Guidance, $m
In $m |
SUSTAINING CAPITAL |
NON-SUSTAINING CAPITAL |
GROWTH PROJECTS |
Agbaou | 20 | - | - |
Tabakoto | 20 | - | - |
Nzema | 5 | 12 | - |
Ity | 10 | 4 | 10 |
Karma | 10 | 19 | 35 |
Houndé | - | - | 180 |
TOTAL | 65 | 35 | 225 |
Table 23: Free Cash Flow Guidance based on Production and AISC Guidance Mid-points, $m
In $m | $1,100/oz | $1,200/oz | $1,300/oz |
NET REVENUE (based on production guidance mid-point) | 685 | 725 | 785 |
Mine level AISC costs (based on AISC guidance mid-point) | (510) | (510) | (510) |
Corporate G&A | (21) | (21) | (21) |
Sustaining exploration | (14) | (14) | (14) |
GROUP AISC MARGIN | 140 | 180 | 240 |
Non-sustaining mine exploration | (20) | (20) | (20) |
Non-sustaining capital | (35) | (35) | (35) |
FREE CASH FLOW BEFORE GROWTH PROJECTS (and before WC, tax and financing cost) |
85 | 125 | 185 |
CONFERENCE CALL AND LIVE WEBCAST
The 2016 Fourth Quarter and Year End Financials will be released before-market open on March 7, 2017. Management will host a conference call and live webcast on Tuesday, March 7, 2017, at 10:00am Toronto time (EST), 3:00pm London time (GMT), 4:00pm Paris time (CET), to discuss the Company's financial results.
The live webcast can be accessed through the following link:
http://edge.media-server.com/m/p/ei9msxtz
Analysts and interested investors are also invited to participate and ask questions using the dial-in numbers below:
International: | +1646 254 3361 |
North American toll-free: | 1877 280 2342 |
UK toll-free: | 0800 279 4992 |
Australian toll-free: | 1800 027 830 |
Confirmation code: | 8720003 |
Click here to add Webcast reminder to Outlook Calendar
Webcast Access for mobile devices - QR code:
Access the live and On-Demand version of the webcast from mobile devices running iOS and Android.
A replay of the conference call and webcast will be available on Endeavour's website.
QUALIFIED PERSONS
Adriaan "Attie" Roux, Pr.Sci.Nat, Endeavour's Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations in this news release.
CONTACT INFORMATION
Martino De Ciccio VP - Strategy & Investor Relations +33 (0)1 70 38 36 95 [email protected] |
DFH Public Affairs in Toronto John Vincic, Senior Advisor (416) 206-0118 x.224 [email protected] Brunswick Group LLP in London Carole Cable, Partner +44 7974 982 458 [email protected] |
ABOUT ENDEAVOUR MINING CORPORATION
Endeavour Mining is a TSX-listed intermediate gold producer, focused on developing a portfolio of high quality mines in the prolific West-African region, where it has established a solid operational and construction track record.
Endeavour is ideally positioned as the major pure West-African multi-operation gold mining company, operating 5 mines in Côte d'Ivoire (Agbaou and Ity), Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema). In 2016, it expects to produce between 575koz and 610koz at an AISC of US$870 to US$920/oz. Endeavour is currently building its Houndé project in Burkina Faso, which is expected to commence production in Q4-2017 and to become its flagship low-cost mine with an average annual production of 190koz at an AISC of US$709/oz over an initial 10-year mine life based on reserves. The development of the Houndé project is expected to lift Endeavour's group production +900kozpa and decrease its average AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives to +10 years.
Corporate Office: 5 Young St, Kensington, London W8 5EH, UK
This news release contains "forward-looking statements" including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", and "anticipates". Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour's most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business. AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in sustaining margin, free cash flow, net free cash flow, free cash flow per share, net debt, and adjusted earnings are non-GAAP financial performance measures with no standard meaning under IFRS, further discussed in the section Non-GAAP Measures in the most recently filed Management Discussion and Analysis for the quarter ended March 31, 2016.
Appendix 1: Production and Cost Details by Mine
ON A QUARTERLY BASIS
(on a 100% basis) | AGBAOU | NZEMA | TABAKOTO | ITY3 | KARMA | |||||||||||||
Unit | Q4-2016 | Q3-2016 | Q4-2015 | Q4-2016 | Q3-2016 | Q4-2015 | Q4-2016 | Q3-2016 | Q4-2015 | Q4-2016 | Q3-2016 | Q4-2015 | Q4-2016 | |||||
Physicals | ||||||||||||||||||
Total tonnes mined - OP1 | 000t | 6,518 | 6,877 | 5,116 | 2,885 | 2,848 | 1,437 | 1,593 | 1,569 | 2,424 | 1,472 | 948 | 375 | 4,023 | ||||
Total ore tonnes - OP | 000t | 674 | 651 | 753 | 288 | 222 | 279 | 195 | 160 | 137 | 316 | 200 | 64 | 783 | ||||
Open pit strip ratio1 | W:t ore | 8.67 | 9.56 | 5.79 | 9.02 | 11.83 | 4.15 | 7.17 | 8.81 | 16.69 | 3.66 | 3.74 | 4.86 | 4.14 | ||||
Total tonnes mined - UG | 000t | - | - | - | - | - | - | 324 | 302 | 358 | - | - | - | - | ||||
Total ore tonnes - UG | 000t | - | - | - | - | - | - | 253 | 238 | 215 | - | - | - | - | ||||
Total tonnes milled | 000t | 721 | 709 | 748 | 428 | 424 | 446 | 402 | 381 | 393 | 295 | 271 | 71 | 853 | ||||
Average gold grade milled | g/t | 2.46 | 2.21 | 2.05 | 2.20 | 2.40 | 1.80 | 3.93 | 3.11 | 3.53 | 2.00 | 1.90 | 2.39 | 1.14 | ||||
Recovery rate | % | 97% | 96% | 97% | 82% | 82% | 87% | 95% | 95% | 95% | 90% | 91% | 81% | 90% | ||||
Gold ounces produced | oz | 57,061 | 49,384 | 51,732 | 23,874 | 24,279 | 23,076 | 47,884 | 37,019 | 41,546 | 17,480 | 15,334 | 5,689 | 29,112 | ||||
Gold sold | oz | 56,936 | 51,308 | 53,298 | 22,033 | 23,526 | 22,526 | 47,053 | 37,324 | 41,118 | 15,038 | 15,349 | 7,917 | 28,743 | ||||
Unit Cost Analysis | ||||||||||||||||||
Mining costs - Open pit | $/t mined | 2.38 | 2.26 | 2.73 | 4.21 | 4.16 | 5.74 | 4.07 | 3.76 | 3.15 | 2.44 | 4.09 | 2.38 | 1.32 | ||||
Mining costs - Underground | $/t mined | - | - | - | - | - | - | 58.80 | 52.58 | 52.85 | - | - | - | - | ||||
Processing and maintenance | $/t milled | 6.26 | 7.11 | 5.44 | 14.08 | 14.23 | 12.63 | 23.50 | 22.57 | 22.91 | 13.13 | 13.24 | 23.28 | 7.76 | ||||
Site G&A | $/t milled | 4.66 | 4.77 | 3.93 | 6.61 | 6.18 | 7.08 | 14.32 | 12.28 | 15.68 | 15.11 | 13.06 | 16.97 | 9.66 | ||||
Cash Cost Details | ||||||||||||||||||
Mining costs - Open pit1 | $000s | 15,537 | 15,550 | 13,962 | 12,151 | 11,857 | 8,245 | 6,479 | 5,892 | 7,633 | 3,585 | 3,878 | 892 | 5,306 | ||||
Mining costs -Underground | $000s | - | - | - | - | - | - | 19,050 | 15,880 | 18,921 | - | - | - | - | ||||
Processing and maintenance | $000s | 4,513 | 5,043 | 4,071 | 6,026 | 6,032 | 5,633 | 9,448 | 8,600 | 9,003 | 3,874 | 3,588 | 1,653 | 6,616 | ||||
Site G&A | $000s | 3,362 | 3,382 | 2,940 | 2,831 | 2,620 | 3,159 | 5,757 | 4,680 | 8,500 | 4,458 | 3,538 | 1,205 | 8,241 | ||||
Purchased ore at Nzema | $000s | - | - | - | 4,093 | 7,817 | 3,197 | - | - | - | - | - | - | - | ||||
Inventory adjustments and other2 | $000s | 2,050 | 587 | 3,626 | 1,638 | 1,144 | 3,887 | 22 | 1,034 | 1,991 | 115 | (854) | 605 | (906) | ||||
Cash costs for ounces sold | $000s | 24,511 | 22,149 | 24,087 | 21,068 | 24,415 | 23,280 | 36,170 | 33,386 | 37,296 | 11,432 | 7,001 | 4,355 | 18,898 | ||||
Royalties | $000s | 2,340 | 2,761 | 2,143 | 1,464 | 1,651 | 1,344 | 3,384 | 2,962 | 2,702 | 633 | 832 | 536 | 1,953 | ||||
Sustaining capital | $000s | 3,434 | 3,324 | 2,390 | 2,106 | 670 | 897 | 4,081 | 3,610 | 6,024 | 378 | 3,276 | 519 | 359 | ||||
Cash cost per ounce sold | $/oz | 431 | 432 | 452 | 956 | 1,038 | 1,033 | 769 | 894 | 907 | 760 | 456 | 550 | 657 | ||||
Mine-level AISC Per Ounce Sold | $/oz | 532 | 550 | 537 | 1,118 | 1,136 | 1,133 | 927 | 1,071 | 1,119 | 827 | 724 | 683 |
ON A YEARLY BASIS
(on a 100% basis) | AGBAOU | NZEMA | TABAKOTO | ITY3 | KARMA | |||||||||
Unit | FY-2016 | FY-2015 | FY-2016 | FY-2015 | FY-2016 | FY-2015 | FY-2016 | FY-2015 | FY-2016 | |||||
Physicals | ||||||||||||||
Total tonnes mined - OP1 | 000t | 25,382 | 20,447 | 9,295 | 8,144 | 7,098 | 9,298 | 6,102 | 375 | 8,753 | ||||
Total ore tonnes - OP | 000t | 2,797 | 2,818 | 1,000 | 1,310 | 649 | 511 | 1,186 | 64 | 1,879 | ||||
Open pit strip ratio1 | W:t ore | 8.07 | 6.26 | 8.30 | 5.22 | 9.94 | 17.20 | 4.15 | 4.86 | 3.66 | ||||
Total tonnes mined - UG | 000t | - | - | - | - | 1,301 | 1,360 | - | - | - | ||||
Total ore tonnes - UG | 000t | - | - | - | - | 944 | 860 | - | - | - | ||||
Total tonnes milled | 000t | 2,827 | 2,665 | 1,761 | 1,783 | 1,588 | 1,588 | 1,173 | 71 | 2,089 | ||||
Average gold grade milled | g/t | 2.27 | 2.15 | 1.87 | 2.21 | 3.36 | 3.17 | 2.20 | 2.39 | 1.16 | ||||
Recovery rate | % | 97% | 97% | 83% | 87% | 95% | 93% | 93% | 81% | 90% | ||||
Gold ounces produced | oz | 195,505 | 181,365 | 87,710 | 110,302 | 162,817 | 151,067 | 75,867 | 5,689 | 61,813 | ||||
Gold sold | oz | 196,316 | 182,219 | 85,495 | 110,404 | 161,803 | 151,345 | 73,332 | 7,917 | 28,743 | ||||
Unit Cost Analysis | ||||||||||||||
Mining costs - Open pit | $/t mined | 2.22 | 2.64 | 4.64 | 4.78 | 3.60 | 2.79 | 2.88 | 2.38 | 1.32 | ||||
Mining costs - Underground | $/t mined | - | - | - | - | 51.04 | 50.24 | - | - | - | ||||
Processing and maintenance | $/t milled | 6.60 | 6.40 | 13.16 | 14.26 | 21.93 | 22.89 | 14.71 | 23.28 | 7.76 | ||||
Site G&A | $/t milled | 4.66 | 5.56 | 6.57 | 6.81 | 12.80 | 15.66 | 11.43 | 16.97 | 9.66 | ||||
Cash Cost Details | ||||||||||||||
Mining costs - Open pit1 | $000s | 56,420 | 54,060 | 43,109 | 38,947 | 25,586 | 25,960 | 17,583 | 892 | 5,306 | ||||
Mining costs -Underground | $000s | - | - | - | - | 66,406 | 68,328 | - | - | - | ||||
Processing and maintenance | $000s | 18,656 | 17,069 | 23,177 | 25,423 | 34,825 | 36,347 | 17,256 | 1,653 | 6,616 | ||||
Site G&A | $000s | 13,175 | 14,806 | 11,577 | 12,151 | 20,325 | 28,659 | 13,413 | 1,205 | 8,241 | ||||
Purchased ore at Nzema | $000s | - | - | 21,255 | 29,447 | - | - | - | - | - | ||||
Inventory adjustments and other2 | $000s | 1,702 | 3,375 | 7,885 | 1,059 | 3,357 | 4,961 | (53) | 605 | (906) | ||||
Cash costs for ounces sold | $000s | 84,477 | 84,172 | 90,801 | 99,374 | 132,906 | 128,041 | 44,450 | 4,355 | 18,898 | ||||
Royalties | $000s | 8,871 | 7,574 | 5,662 | 7,234 | 11,997 | 10,438 | 3,316 | 536 | 1,952 | ||||
Sustaining capital | $000s | 11,407 | 13,191 | 3,318 | 10,839 | 21,193 | 23,048 | 7,648 | 519 | 359 | ||||
Cash cost per ounce sold | $/oz | 430 | 462 | 1,062 | 900 | 821 | 846 | 606 | 550 | 657 | ||||
Mine-level AISC Per Ounce Sold | $/oz | 534 | 576 | 1,167 | 1,064 | 1,027 | 1,067 | 756 | 683 | 738 |
Appendix 2: Reserves and Resources as at December 31, 2016
ON A 100% BASIS | ON AN ATTRIBUTABLE BASIS | ||||||
Resources shown inclusive of Reserves |
Tonnage (Mt) |
Grade (Au g/t) |
Content (Au koz) |
Tonnage (Mt) |
Grade (Au g/t) |
Content (Au koz) |
|
Agbaou Mine (85% owned) | |||||||
Proven Reserves | 1.0 | 2.20 | 69 | 0.8 | 2.20 | 59 | |
Probable Reserves | 10.0 | 2.44 | 784 | 8.5 | 2.44 | 666 | |
P&P Reserves | 11.0 | 2.41 | 853 | 9.3 | 2.41 | 725 | |
Measured Resource (incl. reserves) | 1.9 | 1.41 | 85 | 1.6 | 1.41 | 72 | |
Indicated Resources (incl. reserves) | 11.2 | 2.56 | 919 | 9.5 | 2.56 | 781 | |
M&I Resources (incl. reserves) | 13.0 | 2.39 | 1,004 | 11.1 | 2.39 | 853 | |
Inferred Resources | 1.1 | 1.73 | 60 | 0.9 | 1.73 | 51 | |
Nzema Mine (90% owned) | |||||||
Proven Reserves | 2.1 | 2.73 | 181 | 1.9 | 2.73 | 163 | |
Probable Reserves | 1.3 | 2.70 | 110 | 1.1 | 2.70 | 99 | |
P&P Reserves | 3.3 | 2.72 | 291 | 3.0 | 2.72 | 262 | |
Measured Resource (incl. reserves) | 21.1 | 1.37 | 929 | 19.0 | 1.37 | 836 | |
Indicated Resources (incl. reserves) | 12.0 | 1.31 | 502.0 | 10.8 | 1.31 | 452 | |
M&I Resources (incl. reserves) | 33.1 | 1.35 | 1,431 | 29.8 | 1.35 | 1,288 | |
Inferred Resources | 5.9 | 1.29 | 243.4 | 5.3 | 1.29 | 219 | |
Tabakoto Mine(80-90% owned) | |||||||
Proven Reserves | 2.9 | 2.98 | 274 | 2.3 | 2.98 | 221 | |
Probable Reserves | 3.4 | 3.12 | 341 | 2.8 | 3.12 | 283 | |
P&P Reserves | 6.3 | 3.06 | 615 | 5.1 | 3.06 | 504 | |
Measured Resource (incl. reserves) | 6.9 | 2.88 | 638 | 5.5 | 2.88 | 513 | |
Indicated Resources (incl. reserves) | 12.1 | 3.09 | 1,206 | 10.3 | 3.09 | 1,005 | |
M&I Resources (incl. reserves) | 19.0 | 3.01 | 1,844 | 15.8 | 3.01 | 1,517 | |
Inferred Resources | 8.2 | 3.45 | 908 | 6.7 | 3.45 | 734 | |
Houndé Mine (90% owned) | |||||||
Proven Reserves | 3.7 | 2.48 | 296 | 3.3 | 2.48 | 266 | |
Probable Reserves | 26.9 | 2.06 | 1,779 | 24.2 | 2.06 | 1,602 | |
P&P Reserves | 30.6 | 2.11 | 2,075 | 27.5 | 2.11 | 1,868 | |
Measured Resource (incl. reserves) | 3.7 | 2.57 | 305 | 3.3 | 2.57 | 275 | |
Indicated Resources (incl. reserves) | 34.2 | 2.04 | 2,247 | 30.8 | 2.04 | 2,022 | |
M&I Resources (incl. reserves) | 37.9 | 2.09 | 2,551 | 34.1 | 2.09 | 2,297 | |
Inferred Resources | 3.2 | 2.62 | 274 | 2.9 | 2.62 | 246 | |
Ity Mine and CIL Project (55% owned) | |||||||
Proven Reserves | 0.1 | 2.90 | 6 | 0.0 | 2.90 | 3 | |
Probable Reserves | 43.8 | 1.50 | 2,117 | 24.1 | 1.50 | 1,164 | |
P&P Reserves | 43.9 | 1.50 | 2,123 | 24.1 | 1.50 | 1,168 | |
Measured Resource (incl. reserves) | 0.0 | 1.84 | 2 | 0.0 | 1.84 | 1 | |
Indicated Resources (incl. reserves) | 52.8 | 1.64 | 2,777 | 29.0 | 1.64 | 1,527 | |
M&I Resources (incl. reserves) | 52.8 | 1.64 | 2,779 | 29.0 | 1.64 | 1,528 | |
Inferred Resources | 30.2 | 1.45 | 1,406 | 16.6 | 1.45 | 773 | |
Karma Mine (90% owned) | |||||||
Proven Reserves | 0.4 | 0.59 | 8 | 0.4 | 0.59 | 7 | |
Probable Reserves | 37.4 | 0.92 | 1,109 | 33.7 | 0.92 | 997 | |
P&P Reserves | 37.9 | 0.92 | 1,117 | 34.1 | 0.92 | 1,004 | |
Measured Resource (incl. reserves) | 0.4 | 0.59 | 8 | 0.4 | 0.59 | 7 | |
Indicated Resources (incl. reserves) | 83.8 | 1.10 | 2,973 | 75.4 | 1.10 | 2,676 | |
M&I Resources (incl. reserves) | 84.3 | 1.10 | 2,981 | 75.8 | 1.10 | 2,683 | |
Inferred Resources | 19.3 | 1.27 | 791 | 17.4 | 1.27 | 712 | |
Group Consolidated Total | |||||||
Proven Reserves | 10 | 2.57 | 834 | 9 | 2.56 | 720 | |
Probable Reserves | 123 | 1.58 | 6,240 | 94 | 1.58 | 4,812 | |
P&P Reserves | 133 | 1.66 | 7,074 | 103 | 1.67 | 5,532 | |
Measured Resource (incl. reserves) | 34 | 1.80 | 1,967 | 30 | 1.77 | 1,704 | |
Indicated Resources (incl. reserves) | 206 | 1.60 | 10,623 | 166 | 1.59 | 8,463 | |
M&I Resources (incl. reserves) | 240 | 1.63 | 12,590 | 196 | 1.62 | 10,167 | |
Inferred Resources | 68 | 1.69 | 3,682 | 50 | 1.71 | 2,736 |
The mineral reserves and resources were estimated as at December 31, 2016 in accordance with the provisions adopted by the Canadian Institute of Mining Metallurgy and Petroleum (CIM) and incoporated into the NI 43-101. Mr. Adriaan "Attie" Roux, Pr.Sci.Nat., Endeavour Mining's Chief Operating Officer, has reviewed and approved the scientific and technical information contained in this presentation. Adriaan Roux is a "Qualified Person" as defined in NI 43-101.
The Qualified Persons (QP's) responsible for the NI 43-101 compliant mineral reserve and resource estimates are detailed in the following table. All QP's are independent of Endeavour Mining, except Kevin Harris, Michael Alyoshin and John Barry.
MINERAL RESOURCES
QUALIFIED PERSON | POSITION | PROPERTY/DEPOSIT |
Kevin Harris, CPG | Group Resource Manager, Endeavour Mining Corp | Agbaou, Tabakoto (except Kofi A, Kofi C, Blanaid deposits), Bakatouo and Colline Sud deposits (Ity mine), North Kao deposit (Karma mine), Bouere and Dohoum deposits (Hounde project) |
Mark Zammit, MAIG | Principal, Cube Consulting Pty Ltd | Ity (except Bakatouo and Colline Sud deposits), Vindaloo deposits (Hounde project) |
Eugene Puritch, P.Eng. | President, P&E Mining Consultants Inc | Karma (except North Kao deposit), Kofi A, Kofi C and Blanaid deposits (Tabakoto) |
Nic Johnson, MAIG | Principal, MPR Geological Consultants Pty Ltd | Nzema |
MINERAL RESERVES
QUALIFIED PERSON | POSITION | PROPERTY/DEPOSIT |
Michael Alyoshin, MAusIMM CP (Min) | Chief Mining Engineer - Strategic Projects, Endeavour Mining Corp | Agbaou, Nzema, Tabakoto open pits, Bouere and Dohoun deposits (Hounde), North Kao deposit (Karma), Heap Leach (Ity) |
John Barry, P.Eng. | Technical Services Manager - Tabakoto mine, Endeavour Mining Corp | Tabakoto underground |
Ross Malcolm Cheyne, BE FAusIMM | Director, Orelogy Group Pty Ltd | Vindaloo deposits (Hounde) |
Eugene Puritch, P.Eng. | President, P&E Mining Consultants Inc | Karma (except North Kao deposit) |
Tamer Dincer, FAusIMM | Principal, Mining Solutions | CIL (Ity) |
Project1 | Agbaou | Nzema | Tabakoto | Ity | Karma2 | Hounde | |
UG | Open Pit | ||||||
Reserves Au price | 1,350 | 1,250 | 1,250 | 1,250 | 1,250 | 1,300 | 1,300 |
Resources Au price | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,557 | 1,500 |
1 Cut off grades for all resources open pits are 0,5g/tAu, except at Karma where the cutoff grade is defined by material type: Oxide=0.2, Transition=0.22 and Sulfide=0,5
2 North Kao resources has a gold price of $1,500/oz
7. At Tabakoto, the breakdown for underground and open pit reserves is as follows:
Underground Reserves | Open Pit Reserves | ||||||
On a 100% basis | Tonnage (kt) |
Grade (Au g/t) |
Content (Au koz) |
Tonnage (kt) |
Grade (Au g/t) |
Content (Au koz) |
|
Proven Reserves | 2,589 | 3.03 | 252 | 263 | 2.60 | 22 | |
Probable Reserves | 1,975 | 3.13 | 199 | 1,432 | 3.08 | 142 | |
P&P Reserves | 4,564 | 3.07 | 451 | 1,695 | 3.01 | 164 |
Heap Leach Reserves | CIL Reserves | ||||||
On a 100% basis | Tonnage (kt) |
Grade (Au g/t) |
Content (Au koz) |
Tonnage (kt) |
Grade (Au g/t) |
Content (Au koz) |
|
Proven Reserves | 70 | 2.67 | 6 | - | - | - | |
Probable Reserves | 3,209 | 2.48 | 256 | 40,620 | 1.43 | 1,861 | |
P&P Reserves | 3,279 | 2.49 | 262 | 40,620 | 1.43 | 1,861 |
The scientific and technical information relating to the Agbaou mine, Nzema mine, Ity mine, Tabakoto mine, Karma mine and Hounde project contained in this website has been derived from or based on the following technical reports. Copies of the reports are available electronically on SEDAR at www.sedar.com under the Corporation's profile.
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