Endeavour Mining’s Profit Rises on Higher Gold Output, Prices
(Reuters) – Gold miner Endeavour Mining Corp’s second-quarter profit rose, helped by higher production and sales as well as strong gold prices, sending its shares up 5 percent.
The Canadian company, which operates the Youga Mine in Burkina Faso in West Africa, said production rose 8 percent to 21,575 ounces at a cash cost of $586 per ounce.
Endeavour still expects to produce 84,000 ounces of gold this year but said higher fuel price and tax hikes in Burkina Faso would lead to cash costs of $610-$650 per ounce, compared with its earlier forecast of $600 per ounce.
Second-quarter net earnings attributable to shareholders rose to $32.8 million or 29 cents a share, from $8.9 million or 9 cents a share, last year.
Gold revenue rose 73 percent to $36 million helped by higher prices. Gold prices have risen over 40 percent in the last 12 months and currently trades at $1,762.39 per ounce.
Cash flow from operations at its mines rose to $13.3 million from $7.2 million last year.
Shares of the Cayman Islands-based company were up 5 percent at C$2.45 in morning trade on the Toronto Stock Exchange. (Reporting by Ankur Banerjee in Bangalore; Editing by Chakrabarty)