JOHANNESBURG (miningweekly.com) – Gold miner Endeavour Mining’s adjusted net earnings decreased by 33% year-on-year to $66-million for the year ended December 31, from $99-million in the prior year.
Its earnings were mainly adjusted for a $130-million impairment charge on Tabakoto mine and a $44-million net loss on the sale of the Nzema mine in November.
Operating cash flow before working capital, however, increased by 24% year-on-year to $235-million.
Production increased by 12% year-on-year to 663 000 oz, while all-in sustaining costs (AISC) decreased by $17/oz to $869/oz.
Endeavour president and CEO Sébastien de Montessus on Tuesday stated that 2017 had been a strong year for the company, which delivered against all key performance metrics and achieved record production, while successfully reducing costs.
“We were able to significantly increase our operating cash flow to $235-million, compared with $190-million in 2016, with the start-up of our flagship Houndé mine in the fourth quarter, which we commissioned ahead of schedule and under budget,” he noted, adding that the company’s production is expected to increase to between 670 000 oz and 720 000 oz and AISC to decline to between $840/oz and $890/oz with the full-year benefit of Houndé.
The company also improved its portfolio quality with the $38.5-million sale of its 90% interest in its noncore Nzema mine to BCM International and the purchase of the Kalana project, for which an updated feasibility study will be conducted by end-2018.
Looking ahead, De Montessus averred that Endeavour would continue with the construction of its Ity carbon-in-leach project, which is on time for its first gold pour by mid-2019, and with aggressive exploration efforts as the company aims to develop more greenfield projects for securing a longer-term growth pipeline.
He added that active portfolio management would continue, with a strategic decision regarding its Tabakoto mine to be made in mid-2018, owing to the mine’s decreasing production and quality grades.
Endeavour plans to increase its production to above 800 000 oz and achieve an AISC of below $800/oz in 2019.