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Endeavour Mining posts record production, reduces net debt $603M in 2020

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(Kitco News) - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) today reported that its 2020 consolidated production from all operations amounted to a record 908koz, an increase of 258koz or 40% over 2019 as the addition of Mana and Boungou in the second half of the year, the ramp-up of Kari Pump at Houndé, and the benefit of a full year's production from Ity more than offset the expected decline in production at Agbaou.

The company said that net cash position of $75 million was achieved at year-end, marking a net debt reduction of $250 million during Q4 2020 and $603 million during 2020, reflecting the strong operating performance in 2020 following the completion of the company's construction phase in 2019.

Operating cash flow before non-cash working capital from all operations amounted to $705 million or $5.14 per share in 2020, an increase of $2.53 per share or 97% compared to 2019, due primarily to the increase in the company’s earnings from mine operations driven by the acquisition of SEMAFO and the inclusion of the results of operations at Mana and Boungou for the last six months of the year, as well as the higher gold price over the course of the year.

Proven and probable reserves amounted to 18.0Moz at year-end 2020, up 128% over the previous year, net of mine depletion, due to the additions of the recently acquired Sabodala-Massawa, Wahgnion, Mana and Boungou mines, additions at Houndé and maiden reserves at Fetekro which were partially offset with the sale of the Agbaou mine and slight decreases at Ity and Kalana.

Measured and indicated resources amounted to 28.4Moz at year-end 2020, up 93% over the previous year, net of mine depletion, due to the addition the recently acquired assets and additions at Houndé and Fetekro which were partially offset by the sale of the Agabou mine and decreases at Kalana, Karma, and Ity.

The company’s consolidated total production guidance for 2021 amounts to 1,365,000 – 1,495,000 ounces, which includes the Sabodala-Massawa and Wahgnion operations from February 11, 2021.

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 strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.

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