Africa-focused gold producer Endeavour Mining (TSX: EDV) on Thursday released its preliminary financial and operating results for the fourth quarter and full year 2019, as well as an updated guidance for 2020.
Last year, the company saw its gold production increase by 6% to 651,000 ounces, achieving guidance for the seventh consecutive year. However, production was near the lower end of its 2019 guidance owing to slower-than-planned ramp-up at the Houndé mine in Burkina Faso and a severely rainy season in the third quarter.
All-in sustaining costs (AISC) for the year amounted to $813/oz, which was within the lower half of the firm’s guidance range.
Following nearly four years of intensive capital investment, the company is starting to see “strong cash flow generation capability” from its operating assets, said CEO Sébastien de Montessus in a media release.
In the second half of last year, Endeavour managed to cut its net debt by $129 million. The miner’s net debt stood at $533 million as of year-end 2019.
In 2020, Endeavour expects production to increase to between 680,000-740,000 ounces at an AISC of $845-$895/oz. During the latter part of the year, production is forecast to rise and AISC to lower, due to the expected commissioning of the higher-grade Kari Pump deposit at Houndé.
The company’s goal is to achieve annual production of at least 500,000 ounces for a minimum of ten years.