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Endeavour delivers record results in second quarter, on track to achieve 2021 production guidance

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(Kitco News) - Africa-focused mining company Endeavour Mining (LSE:EDV, TSX:EDV), one of the world’s senior gold producers, announced today that its gold production increased 18% in Q2 2021 over Q1 2021 to 409koz, while AISC decreased by $15/oz to $853/oz, due to the full benefit of consolidated production from Sabodala-Massawa and Wahgnion and strong operational performance.

The company’s revenue for Q2 2021 was $753.4 million compared to $635.8 million for Q1 2021. The increase in revenue in Q2 2021 was mainly due to higher gold sales in Q2 2021 due to the benefit of a full quarter of production from the newly acquired Sabodala-Massawa and Wahgnion mines, together with strong performances at Houndé and Ity and a higher realised gold price for Q2 2021 of $1,791/oz compared to $1,749/oz for Q1 2021.

Net comprehensive earnings were $148.9 million for Q2 2021 compared to $110.9 million in Q1 2021. The increase in earnings was related to higher earnings from mine operations due to the addition of Wahgnion and Sabodola-Massawa, as well as a lower income tax expense, which contained one-off expenses related to the divestment of Agbaou in Q1 2021.

The company added that strong H1 2021 performance of 756koz at an AISC of $860/oz positions the group well to meet the top-half of its FY 2021 production guidance of 1,365-1,495koz at an AISC of $850-900/oz, as H2 2021 will benefit from the full consolidation of the Sabodala-Massawa and Wahgnion mines, which have been consolidated starting from the closing date of the Teranga Gold acquisition of 10 February 2021.

President and CEO Sebastien de Montessus commented, “Our growth pipeline continues to develop with the Sabodala-Massawa phase 1 expansion on track to be completed in Q4 2021 while Definitive Feasibility Studies are progressing well for the Sabodala-Massawa Phase 2 expansion, Fetekro, and Kalana projects.”

“We have enjoyed further exploration success, with significant discoveries made at Ity, Houndé, Sabodala-Massawa and Fetekro, where updated resources are expected to be published later this year. Overall, the group is on track to delineate over 2.5 million ounces of Indicated resources in 2021, which represents significantly more than the expected annual depletion and contributes to our portfolio’s longevity,” added de Montessus.

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.