Canada-based Endeavour Mining boosted its production by 6% to 651 000 oz last year and although the company met its guidance, it was at the bottom-end of the 650 000 oz to 695 000 oz range.
The Africa-focused mining company explained that it experienced a slower-than-planned ramp-up at the newly commissioned Bouéré higher grade deposit at Houndé, in Burkina Faso, owing to a severe rainy season in the third quarter.
All-in sustaining costs (AISC) for the full-year amounted to $813/oz, which was within the lower half of the $794/oz to $845/oz guidance range.
"2019 was a pivotal year for the company with the successful ramp-up of our Ity CIL project [in Côte d’Ivoire]. Following four years of significant investment and the development of both Ity and Houndé, we are starting to see the strong cash flow generation capability of our operating assets,” said CEO Sébastien de Montessus.
The firm decreased net debt by a further $77-million in the fourth quarter, nearly 50% more than the previous quarter, amounting to about $130-million in the second half of 2019.
“We believe the business is well positioned to significantly decrease its net debt in the coming year.”
Endeavour is forecasting gold production to increase to between 680 000 oz and 740 000 oz in 2020, at an AISC of $845/oz to $895/oz. Production is expected to be higher and AISC lower during the latter part of the year, owing to the expected commissioning of the higher-grade Kari Pump deposit at Houndé.
“Our goal is to optimise the mine plans for Ity and Houndé to secure a combined annual production of at least half-a-million ounces for a minimum of ten years, while continuing to proactively manage and optimise our broader portfolio of assets,” De Montessus added.