Endeavour reports 301koz gold production in Q1-2023
ENDEAVOUR has reported that Q1-2023 production from continuing operations amounted to 301koz, a decrease of 54koz or 15% over Q4-2022 due to FY-2023 production being weighted towards H2-2023.
The decrease was mainly due to lower production at Sabodala-Massawa (down 42koz) due to the mine sequence as lower grades were processed from the Sabodala pit as the focus was on waste stripping to prepare for in-pit tailings deposition and development of the new Massawa North Zone satellite pit.
Houndé and Boungou had lower production as a result of a focus on stripping activity to open up higher grade mining areas for later in the year. Mana had slightly lower production due to the focus on underground development to increase access to underground production stopes later in the year. This was partially offset by higher production at Ity and Wahgnion in line with the mine sequence.
Q1-2023 AISC from continuing operations amounted to $1,022/oz, an increase of $68/oz or 7% over Q4-2022 due to lower gold sales volumes in addition to higher costs across several mines. Costs increased at Boungou and Houndé as a result of mining lower-grade zones at higher strip ratios as the mine plan focussed on stripping activity.
Costs were higher at Sabodala-Massawa due to the above mentioned lower grades processed and higher strip ratio. At Mana, higher costs were the result of sequencing lower grade ore from the underground development to prioritise the advancement of the third decline into Wona underground.
These AISC increases were partially offset by lower AISC at Ity and Wahgnion due to lower processing costs as a result of the benefit of softer oxide ore representing a larger proportion of the mill feed.
Gold sales from continuing operations decreased from 352koz in Q4-2022 to 309koz in Q1-2023 due primarily to decreases in gold sales at Houndé, Sabodala-Massawa and Boungou as a result of lower production, partially offset by an increase at Ity.
Gold sales were slightly ahead of the quarter’s production of 301koz due to the timing of gold sales. The realised gold price from continuing operations for Q1-2023 was $1,904 per ounce compared to $1,742 per ounce for Q4-2022.
Including the impact of the Group’s Revenue Protection Programme, the realised gold price for Q1-2023 was $1,886 per ounce compared to $1,758 per ounce for Q4-2022.
The Group remains on track to achieve its FY-2023 production guidance of 1,325 – 1,425koz at an AISC of $940 – 995/oz, with performance weighted towards H2-2023 as previously guided.
