All-in Sustaining Cost further decreased to $900/oz ($889/oz, excluding Youga, which was divested end of February), in line with full-year guidance of $870 to $920/oz.
All-in sustaining margin was up 54% over the previous quarter to $37m, lifted by lower AISC/oz and higher gold prices.
The miner said free cash flow (before tax, WC & financing costs) was $28m, slightly above guidance, while net debt reduced to $136m at quarter-end from $259m as of March 31, 2015; and further reduced to $71m following the La Mancha $65m anti-dilution cash injection under the True Gold acquisition.
Neil Woodyer, CEO of Endeavour, stated: “Our first quarter results have met our expectations and we are on track to achieve our objectives for 2016. The Agbaou and Ity mines are delivering excellent performance and the underground Tabakoto mines should gain momentum in the coming quarters. Our group AISC has continued to decrease, achieving $889/oz from our current operations, which provides a solid cash generation foundation. We have also strengthened our financial position with the cash received from La Mancha following the close of the True Gold transaction. The second quarter will be important for Endeavour with the integration of True Gold’s Karma Mine and its ramp-up to commercial production, and the start of construction at our Houndé project which will ultimately become our flagship low-cost mine. Updated guidance for 2016, which will include these recent developments, will be provided with the release of our second quarter results at the end of July.”