TORONTO (miningweekly.com) – Canadian gold producer Endeavour Mining has reported a significantly wider net loss for the three months ended December, as notable impairment charges on its Tabakoto mine, in Mali, weighed on financials.
The ASX- and TSX-listed company on Thursday reported a net loss attributable to shareholders of $280.6-million, or $0.68 a share, compared with a net loss of $74.7-million, or $0.18 a share, in the comparable period in 2013.
The company booked impairment charges on mining interests and related assets of $365.9-million, compared with $74.6-million. The impairment charge to mineral properties and related assets of $278.8-million was mostly related to Tabakoto, which accounted for $245.9-million. Other factors were the unfavourable tax climate in Mali, reduced assumptions regarding mine life, which were revised from ten years down to seven years, for the purpose of a new valuation model and the downward revision in the assumed gold price.
The Nzema mine, in Ghana, and Youga, in Burkina Faso, were also impacted by the lower gold price assumption. Endeavour noted that Youga was also impacted by a new, shorter-life mine plan designed to increase positive cash flow.
Excluding special items, the company reported an adjusted loss of $0.01 a share, shy of analyst expectations of nil a share for the quarter.
Revenue for the fourth quarter rose by $43.5-million to $147.7-million from $104.2-million reported for the same period in 2013. The increase was a result of higher gold sales year-over-year, increasing from 82 578 oz in 2013 to 123 354 oz in the quarter.
The realised price of gold for the period was $1 198/oz compared with $1 262/oz in the year-ago period.
Operating expenses for the fourth quarter of 2014 increased by $9.8-million to $102.6-million, mainly owing to the inclusion of Endeavour’s fourth mine, Agbaou, in Côte d'Ivoire, since commercial production was achieved on January 27, 2014.
Endeavour expected to produce between 475 000 oz and 500 000 oz of gold in 2015, at all-in sustaining costs below $1 000/oz, compared with 465 770 oz in 2014.
For the full-year 2014, Endeavour reported an attributable net loss of $273.3-million, or $0.66 a share, compared with an attributable net loss of $332.5-million, or $0.81 a share, for the full-year 2013.
Adjusted net earnings attributable to shareholders were $13.9-million, or $0.03 per share, compared with a loss of $23.8-million, or $0.06 a share.