Bli medlem
Bli medlem

Du är här

2016-03-04

Endeavour Mining Corporation: Endeavour significantly increases Free Cash Flow on record production and lower AISC

Endeavour significantly increases Free Cash Flow on record production and lower AISCView News Release in PDF Format
http://hugin.info/171882/R/1991774/732925.pdf
2015 Full Year Highlights:
>Gold production up 11% to 517koz, exceeding production guidance of 475-500koz

>All-in Sustaining Cost down 9% to $922/oz, below guidance of $930-980/oz

>All-in sustaining margin up 4% to $122m, despite an 8% decline in realized
gold price

>Free Cash Flow before tax, working capital&financing costs more than doubled
to $85m, exceeding guidance of $80m[1]

>Free Cash Flow of $34m, turning positive with increased production and lower
AISC/oz

>Cash balance increased to $110m and net debt reduced to $144m after debt
repayment of $60m in 2015

>Adjusted net earnings attributable to shareholders tripled to $42m, or $0.99
per share

George Town, March 3, 2016
- Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce its
financial and operating results for the fourth quarter and full year 2015,
with highlights provided in the table below.

Table
1
: Key Operational and Financial Highlights

------------------------------------------------------------------------------------------------------------------------
| All amuonts in US$ Three months ended December 31, Year ended December 31, |
| 2015 2014 Var 2015 2014 Var |
| Gold Production, oz 136,844 119,729 14% 516,646 465,770 +11% |
| Realized Gold Price, $/oz 1,102 1,198 (8%) 1,157 1,264 (8%) |
| AISC , $/oz 934 995 (6%) 922 1,010 (9%) |
| All-in Sustaining Margin, $/oz 168 203 (17%) 235 254 (7%) |
| All-in Sustaining Margin, $m 24 25 (7%) 122 117 +4% |
| Free Cash Flow, $m (before WC, tax&financing costs) 12 (4) n.a 85 35 +143% |
| Free Cash Flow, $m 25 7 257% 34 (11) n.a |
| Net Debt At Period End, $m 144 254 (43%) 144 254 (43%) |
| Adjusted Net Earnings, $m (attributable to shareholders) (6) (2) (200%) 42 14 +200% |
| Adjusted Earnings Per Share, $/share (0.12) (0.06) (100%) 0.99 0.34 +191% |
------------------------------------------------------------------------------------------------------------------------

Neil Woodyer, CEO of Endeavour, stated: "The strong 2015 financial results are
the culmination of several years of asset development and optimization. We
are now ideally positioned as the major pure West-African multi-operation
gold mining company, with a demonstrated capacity to generate significant
cash flows even at lower gold prices, as witnessed last year.

In addition, our strengthened balance sheet and significant liquidity sources
give us the needed financial flexibility to continue our growth strategy."

Production increased by 11% to 516,646 ounces

* Endeavour produced a total of 516,646 ounces of gold in 2015, inclusive of
Ity's post-acquisition production of 5,689 ounces. Excluding the Ity mine,
Endeavour's production amounted to 510,957 ounces, exceeding the 2015
production guidance of 475,000 to 500,000 ounces, as the strong performance
from Agbaou and Tabakoto more than offset the slight declines at Nzema and
Youga.

Table
2
: Gold Production by mine, oz

----------------------------------------------------------------------------
| (on a 100% basis) 2015 Guidance 2015 Actual 2014 Actual Var |
| Agbaou 150,000 - 155,000 181,365 146,757 +24% |
| Tabakoto 155,000 - 165,000 151,067 127,323 +19% |
| Nzema 110,000 - 115,000 110,302 115,129 (4%) |
| Youga 60,000 - 65,000 68,223 76,561 (11%) |
| Subtotal 475,000 - 500,000 510,957 465,770 +10% |
| Ity 5,689 - - |
| Total 516,646 465,770 +11% |
----------------------------------------------------------------------------

* Agbaou achieved record production in 2015, up 24% over the previous year,
mainly due to a 20% increase in mill throughput and the continued benefit
of mining free-dig oxide ore

* Tabakoto increased production by 19% over the previous year as the mine
benefited from the start of mining of the Kofi C open pit and the full
ramp-up of the Segala underground mine.

* Nzema's production declined only slightly compared with the previous year
as the mine strategically increased purchased ore to improve the mine's
operating margins, and to preserve reserves in-situ.

* The Ity Mine is included for the post-acquisition period of November 28 to
December 31, 2015. During 2015, the Ity Mine produced a total of 80,807
ounces.

* Subsequent to the year ended December 31, 2015, on February 29, 2016,
Endeavour announced that it had sold the Youga Gold Mine in Burkina Faso
for $25.3 million.

All-In Sustaining Cost decreased by 9% to $922/oz

* Endeavour's Group All-in Sustaining Cost ("AISC") decreased by 9% over the
previous year to $922/oz mainly due to lower operating costs, specifically
at Agbaou and Tabakoto, as well as the benefit of the decline in crude oil
prices and favorable exchange rates against the US$.

* Agbaou reduced its mine-level AISC by 7% over the previous year to $576/oz,
primarily due to a lower strip ratio and a decrease in milling cost per
tonne driven by larger volumes.

* Tabakoto reduced its mine-level AISC by 20% over the previous year to
$1,067/oz, as lower fuel prices and switching to owner mining led to a
decrease in mining costs (open pit reduced from $4.6 to $2.6/t, and
underground reduced from $51 to $40/t).

* Sustaining capital increased from $31 million to $48 million, up $27/oz,
mainly due to increased underground development at the Tabakoto mine and
capitalized waste at Agbaou.

* Corporate costs and sustaining exploration costs remained fairly constant
on a total dollar spent basis.

Table
3
: Group All-In Sustaining costs, $/oz

------------------------------------------------------------------------------
| 2015 Guidance 2015 Actual 2014 Actual Var |
| Agbaou 690 - 740 576 621 (7%) |
| Tabakoto 950 - 1,000 1,067 1,335 (20%) |
| Nzema 1,000 - 1,050 1,064 1,036 +3% |
| Youga 975 - 1,025 913 824 +11% |
| Ity* 683 - - |
| Mine-level AISC/oz 883 - 933 868 954 (9%) |
| Corporate G&A 37 41 47 (13%) |
| Sustaining exploration 10 13 9 44% |
| Group 930 - 980 922 1,010 (9%) |
|AISC/oz |
------------------------------------------------------------------------------

*Ity Mine is included for the post-acquisition period of November 28 to
December 31, 2015.

Increased Cash Flow generation despite lower realized gold price

* All-in sustaining margin increased by 4% to $122 million as the increased
production and lower AISC/oz more than compensated for the lower realized
gold price.

* Free cash flow (before working capital, tax&financing costs) increased by
143% to $85 million as non-sustaining capital returned to normalized
levels. In 2014, non-sustaining capital included $46 million for Tabakoto
(Kofi C open pit and Segala underground development, Cement Rock Fill
plant, and equipment purchase). In 2015, the $37 million non-sustaining
capital consisted of $19 million for Tabakoto underground development, $8
million in non-sustaining exploration, $7 million at the Houndé project, $2
million for Ity, and $1 million at Nzema.

* Free cash flow shifted from an outflow of $11 million to a positive $34
million generated in 2015, as a result of reduced non-sustaining capital.

Table
4
: Simplified Cash Flow Statement

-----------------------------------------------------------------------------------------------
| Year Ended December 31 Var |
| In US$ million 2015 2014 |
| Gold Sales, oz 519,812 467,887 +11% |
| Realized gold price, $/oz 1,157 1,264 (8%) |
| Revenue 601 584 +3% |
| Cash cost for ounces sold (374) (382) (2%) |
| Royalties (29) (28) +4% |
| Corporate G&A (21) (22) (5%) |
| Sustaining capital (48) (31) +55% |
| Sustaining exploration (7) (4) +75% |
| AISC Margin 122 117 +4% |
| Non-sustaining exploration (9) (20) (55%) |
| Non-sustaining capital (28) (62) (55%) |
| Free cash flow (before working capital, tax&financing costs) 85 35 +143% |
| Working capital 6 21 (71%) |
| Taxes paid (7) (12) (42%) |
| Interest paid (16) (13) (23%) |
| Other items* (34) (42) (24%) |
| Free Cash Flow 34 (11) n.a |
| Cash received from La Mancha acquisition** 73 - - |
| Revolving credit facility payments (60) - - |
| Year over year change in cash 47 (11) n.a |
-----------------------------------------------------------------------------------------------

*Includes financial fees, lease repayments, hedge settlements, realized loss
on derivative financial instruments, unrealized foreign exchange loss on
cash, and other non-operating cash adjustments. **Includes $63m of cash
received from La Mancha and minority cash interest in Ity operating entity,
net of transaction fees

Decreased Net Debt by 43%, improving debt ratio to 0.9x

* Endeavour voluntarily repaid $60 million of its drawn down debt against the
revolving credit facility ("RCF") during the year, reducing its net debt by
43% to $144 million.

* The net debt to operating EBITDA ratio has improved to 0.9 times, a 50%
decrease from the prior year's position.

* Endeavour finished the year with a sound balance sheet with strong
liquidity sources including its cash position of $110 million undrawn RCF
capacity of $110 million, and its 2016 cash flow generation. The group also
has a $75 million i...

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.