Endeavour Mining reports record gold output in 2016, shares climb
Canada’s Endeavour Mining (TSX:EDV) said Monday it achieved record gold output last year and expects even better figures in 2017, with production rising by as much as 10%.
The company, which earlier this month revealed is in merger talks with African gold producer Acacia Mining, produced 584,000 ounces of the precious metal in 2016, or 13% more than in the previous financial year, with record-low all-in sustaining costs of $895 an ounce, down 3%.
For 2017, the West Africa-focused miner expects to generate between 600,000 and 640,000 ounces of gold.
Shares were up on the news, trading more than 3% higher to $24.62 at 11:00AM ET.
Last year, Endeavour Mining acquired True Gold for about Cdn$240 million, which gave it access to Karma mine, a low-cost gold operation in Burkina Faso. In that country, the company expects to pour its first gold from the Houndé project in during the fourth quarter of this year.
Once that mine is up and running, Endeavour will add 190,000 ounces to its gold output per year, but the company noted is already well-positioned to hike output and lower all-in sustaining costs even without taking into consideration the coming online of Houndé.
There was no mention of the possible merger with Barrick Gold’s controlled Acacia Mining, but experts estimate that the combination of both companies would create a $3.4 billion Africa-focused gold producer.