GEORGE TOWN – Endeavour Mining reports that its gold sales increased by 63koz in Q1-2021 compared to Q4-2020 due to the addition of the newly acquired Sabodala-Massawa and Wahgnion mines and by 190koz compared to Q1-2020 as a result of the SEMAFO and Teranga acquisitions.
The realized gold price for Q1-2021 was $1,749/oz compared to $1,841/oz for Q4-2020 and $1,538/oz for Q1-2020, inclusive of the Sabodala-Massawa and Karma streams. The Sabodala-Massawa stream amounted to 1,567 ounces on a consolidated basis in Q1-2021. The Karma stream amounted to 3,333 ounces in Q1-2021.
The Company completed the delivery of 100,000 ounces of gold from the Karma mine as at March 31, 2021. Going forward, the Karma stream will be reduced to 6.5% of gold production. Both streams result in the Company being paid at 20% of the spot gold price for gold subject to the stream.
Total cash costs increased in Q1-2021 compared to Q4-2020 due to increased production, while cash costs increased compared to Q1-2020 due to both increased production and higher royalty costs.
The acquisition of Teranga Gold was completed on February 10, 2021 and as such the Wahgnion and Sabodala-Massawa assets have been consolidated into the financial statements from this date. The sale of Endeavour’s non-core Agbaou mine closed on March 1, 2021, and as such it has been classified as a discontinued operation.
The Group is well positioned to meet its full year 2021 production guidance of 1,365-1,495koz at an AISC of $850-900/oz, following the strong performance in Q1-2021 and the successful integration of the Teranga assets, which will be fully reflected in Q2-2021.
Sebastien de Montessus, President and CEO, commented: “Over the past twelve months we have significantly transformed our company into a resilient business capable of rewarding our shareholders through the cycle. This quarter’s strong performance demonstrates the quality of our enhanced portfolio of operating mines, following the successful integration of the Teranga assets within our business. Moreover, we are pleased to report significant increases in our per share metrics.
The combined portfolio is on track to meet its FY-2021 guidance and deliver strong cash flows, bolstering our balance sheet and providing the flexibility to advance our exciting organic growth opportunities while continuing to reward shareholders through our dividend and share buyback programs.
From a capital markets perspective, we remain on track to obtain our premium listing on the London Stock Exchange in June, which we expect to broaden our appeal to a wider pool of investor capital, whilst benefiting from the projected increase in indexation demand.
We look forward to continuing to build on the progress we have made throughout the remainder of this year.”
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.