JOHANNESBURG (miningweekly.com) – TSX-listed gold producer Endeavour Mining has achieved full-year guidance across its operations, on the back of a strong fourth quarter.

During the three months to December, group production increased by 38% over the previous quarter to 204 000 oz, while all-in sustaining costs (AISC) declined by 13% to around $784/oz owing to the successful start-up and out-performance of the Houndé operations, in Burkina Faso. The company's other West Africa-based mines performed in line with expectations.

Full-year 2017 group production increased by 14% over the prior year to 663 000 oz, attaining the top half of its 630 000 oz to 675 000 oz guidance, while AISC decreased by $15/oz to around $869/oz, ending well within the guidance range of $850/oz to $895/oz.

For the year ahead, Endeavour expects Houndé to produce between 250 000 oz and 260 000 oz, at an AISC of $580/oz to $630/oz.

Mining activities are expected to continue to ramp up to achieve a mining rate of 40-million tonnes a year, up from 18-million tonnes a year in 2017.

The mining and processing of fresh ore started in the latter portion of the fourth quarter, with activities expected to progressively transition from mainly oxides early this year to mainly fresh ore by the end of the year.

Further, nearly $23-million of nonsustaining expenditure is planned for the year, mainly for waste capitalisation and resettlement for the Bouere and Dohoun deposits.

Out of the initial total project spend of $334-million, the company expects to spend $10-million this year - related mainly to billing timing and the second tailings storage facility.

Looking ahead, Endeavour CEO Sébastien de Montessus said the Ity carbon-in-leach (CIL) project, in Côte d'Ivoire, remains on track for first gold pour in mid-2019. "Organic growth was further enhanced through our reinvigorated exploration programme, which is on track to delivering the ambitious five-year discovery target set in 2016," he noted.

De Montessus added that ongoing investment at Houndé and optimisation work at Endeavour's Karma mine, also in Burkina Faso, would position the company well to compensate for expected declines in production at its Agbaou mine, in Côte d'Ivoire, which was transitioning to harder ore, thereby enabling Endeavour to increase guidance.

"We will also continue to invest for longer-term growth and repositioning of the company. Our priorities will be the continued construction of the Ity CIL project, and exploration work to support an updated feasibility study at Kalana, with a project investment decision expected in advance of Ity's first gold pour.

"Exploration investment will remain a key focus, with 40% of the budget allocated to high-potential greenfield exploration activities in support of our goal of generating our next large-scale project through organic investment. Finally, we will continue to actively manage our portfolio of mines to focus management efforts on high-quality assets," said De Montessus.