Endeavour Mining more than doubles net income in Q3, expects to beat its 2021 gold production guidance
(Kitco News) - Endeavour Mining (LSE, TSX:EDV) announced Thursday that the company produced 382 koz of gold in Q3 2021, an increase of 57% from Q3 2020 (244 koz), due to the full benefit of consolidated production from Sabodala-Massawa and Wahgnion and the strong operational performance notably at Ity, Hound?(C) and Boungou, while group AISC remained fairly flat.
The company said that net earnings from continuing operations attributable to shareholders were $114 million for Q3 2021, up 119% compared to $52 million in Q3 2020, whereas adjusted net earnings attributable to shareholders were $153 million in Q3 2021, an increase of 89% compared to $81 million in Q3 2020.
According to the company's statement, strong year to date production of 1,138 koz at an AISC of $875/oz positions the group well to beat the top end of its FY-2021 production guidance of 1,365-1,495 koz at an AISC within its guidance of $850-900/oz.
The company added that this outperformance is led by the Hound?(C), Ity, Sabodala-Massawa and Mana mines where full year production is expected to be near or above the top end of their respective guidances, while the other mines are tracking within guidance.
In addition, the company noted it is benefiting from the successful rapid integration of the Teranga Gold assets and associated synergies.
President and CEO Sebastien de Montessus commented, "Following a strong third quarter performance, we are on track to achieve a record year. We are now well positioned to beat the top end of our 1.5Moz full year production guidance at an AISC within the guided range."
"Given this strong performance we expect to generate well in excess of $1 billion in operating cash flow for the full year, which has already significantly improved our balance sheet strength and bolstered our ability to reward shareholders," he said.
Importantly, the company pointed out that construction of Sabodala-Massawa Phase 1 expansion on schedule for completion by year-end, and that DFS is underway for Sabodala-Massawa Phase 2 expansion, Fetekro and Kalana projects.
The company added it is on track to discover over 2.5Moz of Indicated resources in 2021 with resource updates expected to be published in in Q4 2021, and that it is targeting to discover 15-20Moz of Indicated resources over next 5 years.
Endeavour Mining is one of the world's senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d'Ivoire and Burkina Faso and a portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.
By Vladimir BasovFor Kitco News
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