TSX- and ASX-listed gold mining company Endeavour Mining will deliver a presentation at this year’s Investing in African Mining Indaba on the company’s ability to increase gold production rates during 2014, when the price of the yellow metal kept fluctuating and was often at record lows.
Endeavour Mining business development senior VP Doug Reddy tells Mining Weekly that the company will also report on its 2014 results, based on its third- quarter (Q3) report, released in September. Further, the miner will provide its gold production figures for 2014 and also outline its 2015 production plans for its West African operations.
Endeavour owns and operates four gold mines in West Africa, including the Agbaou gold mine, in Côte d’Ivoire; the Tabakoto gold mine, in Mali; the Nzema gold mine, in Ghana; and the Youga gold mine, in Burkina Faso.
The company reports that the four mines are producing a combined total of more than 450 000 oz/y of gold.
Meanwhile, Endeavour Mining continued to proceed through the permitting process for the Burkina Faso-based Hounde gold project, which is expected to produce about 180 000 oz/y of gold over eight years. The feasibility study and environmental and social impact assessment for the project were completed in November 2013.
Endeavour views the indaba as an important platform, as it provides mining companies operating in Africa with an opportunity to meet with analysts and members of the investment community, says Reddy.
Endeavour was established as a mine operator in 2010 and has attended the indaba ever since. Reddy believes that discussions at this year’s event will be dominated by metal prices, the state of the mining industry, cost reductions, the Ebola outbreak and political unrest.
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In its Q3 report, Endeavour Mining announced that it had achieved gold production of 117 612 oz/y, which resulted in an all-in sustaining margin of $32.1-million in Q3 of 2014. The company’s all-in sustaining cost of $991/oz in Q3 improved from $1 118/oz in Q3 of 2013.
Endeavour Mining CEO Neil Woodyer said in a statement following the release of the Q3 results that the company set a target of less than $1 000/oz and implemented a targeted optimisation and investment programme to achieve the result.
“With an all-in sustaining cost that is below our set target, we are pleased with our performance. Looking forward, we are transitioning from the capital investment programmes into free cash flow generation. We anticipate using a portion of our free cash flow to reduce outstanding debt balances,” he declared in the statement.
Woodyer added that Agbaou continued to exceed Endeavour Mining’s expectations from the mine feasibility study and that it was a significant cash flow generator for the company. Further, he stated: “Results from the ongoing Agbaou drilling programme, some of which were announced in October, make us confident of being able to replace and expand our reserve base and extend the mine life at Agbaou.”
He added that the company’s Youga mine continued to operate, despite civil unrest in Burkina Faso.
The Investing in African Mining Indaba will take place at the Cape Town International Convention Centre from February 9 to 12.