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Endeavour Mining set to reach upper end of production guidance after strong 3Q gold output

The group's output totalled 139,000 ounces of the yellow metal in the three months to end September
Endeavour Mining set to reach upper end of production guidance after strong 3Q gold output
Endeavour Mining is a gold producer

Endeavour Mining Corp (EDV:TSE), the West Africa gold producer, said it was on track to meet the upper-end of its full-year production guidance of between 555 and 590,000 ounces for the full year, as it posted third-quarter results.

It comes after the group's output totalled 139,000 ounces of the yellow metal in the three months to end September.

Production significantly increased in the quarter versus last year due to the commissioning of the Hounde mine and increases at the Ity and Karma mines, which offset the expected decline at the Agbaou mine, the firm said.

READ THE BIG PICTURE: Endeavour Mining gears up for significant revenue growth from West African gold mine

CEO Sebastien de Montessus said Endeavour was "well positioned" to meet all key guidance metrics for 2018.

"Production across our portfolio is expected to increase in Q4-2018 due to the end of the rainy season in West Africa," he said.

"Group production is therefore on track to meet the top end of our guidance of between 555-590koz, while we expect All-In Sustaining Costs (AISC) to achieve the lower end of guidance of $760-810/oz."

Next up is the commissioning of the Ity CIL project, which is expected to be the group's next flagship mine.

The first gold pour is now anticipated to occur early in the second quarter of 2019 as the project is tracking two months ahead of schedule, said the miner's boss.

"As a result of the pace of construction, we accelerated the Ity CIL capital spend, which has been possible due to the financial flexibility provided by our strong balance sheet.

"With Ity CIL's low projected production costs, we expected to quickly deleverage from current levels once the project goes into commercial production."

In exploration activity, the group recently announced a maiden resource at  the greenfield Fetekro project in Cote D'Ivoire, and the firm expects to follow this with a maiden resource at the Kari Pump discovery at Hounde in Burkina Faso in coming weeks.

Net earnings for the quarter were $15 million compared to $4 million in the second quarter, on revenue of $156 million versus $190 million in the June quarter this year.

Endeavour Mining shares eased 1.85% in Toronto to $19.59.

Reporting by Giles Gwinnett

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