Endeavour Mining delivers strong first quarter results

Endeavour Mining Corporation is pleased to report the financial and operational results for the first quarter of 2012. Endeavour’s two operating mines exceeded guidance by producing 49,531 ounces during the quarter at a cash cost of $664 per ounce produced.

Neil Woodyer, CEO, stated that “This was a very successful first full quarter as a merged company. Our mines produced over 49,000 ouncrobo sand manufacturing processes and delivered $38.9 million of cash margin. Recent exploration successes are demonstrating the upside potential at our operations. We are making steady progress advancing our construction-ready Agbaou project including discussions with the Côte d’Ivoire government to obtain our mining permit and, in parallel, we are finalizing the EPCM contractor selection. Endeavour is focused on continuing to deliver and achieve its growth objectives.”

Gold production totaled 49,531 ounces for the quarter, providing a strong start on delivering full year production within the 170,000 to 190,000 ounce guidance range. Gold sales of 45,127 ounces, resulting in revenue of $72.6 million. Total cash cost1 (excluding royalties) of $659 per gold ounce sold, in line with our guidance range of $645 to $685 per ounce. Cash margin of $38.9 million, which is revenues from gold sales less cash costs and royalties. Endeavour is pleased to reiterate its guidance for 2012 with production of 170,000 to 190,000 ounces at a cash cost (excluding royalties) of $645 to $685 per ounce. For the first quarter of 2012, the operating cash flow from mine operations was $24.4 million, and adjusted for $8.5 million for March production with cash proceeds received in early April, it was $32.9 million. Adjusted net earnings were $16.0 million or $0.07 per share.
During the first quarter of 2012, the Corporation invested $23.2 million from its operating cash flow into its operations and exploration programs. Of this, $20.5 million was capitalized and $2.7 million was expensed as exploration. These investments in operational improvements and growth include:

• Sustaining capital at Nzema: $5.0 million


• Sustaining capital at Youga: $0.4 million


• Near-mine exploration: $9.7 million


• Agbaou exploration and development: $3.7 million


• Regional exploration: $1.2 million


• Completion of Salman Village: $3.2 million

At March 31, 2012, the Corporation had cash & equivalents and marketable securities of $128.2 million and holds a 38.5% stake in Namibia Rare Earths with a market value of $12.0 million. As at March 31, 2012, the Corporation had drawn $100 million of its $200 million corporate loan facility.

During the first quarter of 2012, the Corporation sold its 40% interest in the Finkolo Joint Venture for $20.0 million in cash. This transaction is expected to close during the second half of 2012.

Mark Connelly, COO, stated “The strong first quarter continues Endeavour’s +2 year successful performance track record, and gives us a great start to deliver our full year production guidance of 170,000 to 190,000 ozs at $645 to $685 cash cost per ounce. Beyond the solid performance at our two mines, we are focused on completing the final steps in preparation for building our next mine, the Agbaou Gold Project in Côte d’Ivoire. We are nearing completion of our Agbaou engineering optimization studies that take into account our improved mineral resources/reserves from the successful drilling campaigns of 2010 and 2011 as well as updated capital and operating costs. This NI 43-101 technical report is scheduled to be ready within the next few weeks.”