Endeavour Reports Record Q2-2021 Results; Well Positioned to Achieve Top-Half of Full Year Production Guidance Operational and Financial Highlights
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR REPORTS RECORD Q2-2021 RESULTS;
WELL POSITIONED TO ACHIEVE TOP-HALF OF FULL YEAR PRODUCTION GUIDANCE
OPERATIONAL AND FINANCIAL HIGHLIGHTS
• Q2-2021 production up 18% over Q1-2021 to 409koz, while AISC decreased by $15/oz to $853/oz
• Strong H1-2021 performance of 756koz at an AISC of $860/oz positions the Group well to meet the top half of its FY-2021
production guidance of 1,365-1,495koz at an AISC of $850-900/oz
• Adjusted Net Earnings (from cont. operations) of $183m or $0.73/share in Q2-2021; $276m or $1.20/share in H1-2021
• Operating Cash Flow before working capital (from cont. operations) of $286m or $1.13/share in Q2-2021; $549m or
$2.39/share in H1-2021
• Healthy balance sheet at quarter-end with Net Debt to adjusted EBITDA leverage ratio of 0.07x; Net Debt decreased by
$85m during the quarter to $77m and gross debt decreased by $120m
SHAREHOLDER RETURNS PROGRAMME
• First dividend of $60m paid on 5 February 2021 for the 2020 fiscal year
• Declaration of H1-2021 interim dividend of $70m, with record date set at 10 September 2021; well positioned to deliver
more than the minimum committed dividend of $125m for the full year
• Share buybacks continue to supplement shareholder returns with a total of $70m of shares repurchased since April 2021,
$59m of which were repurchased in Q2-2021
ORGANIC GROWTH
• Construction of Sabodala-Massawa Phase 1 expansion on schedule for completion by year-end; DFS underway for
Sabodala-Massawa Phase 2 expansion, Fetekro, and Kalana projects
• Group on track to discover over 2.5Moz of Indicated resources in 2021; significant discoveries recently made at Ity,
Houndé, Sabodala-Massawa and Fetekro
London, 4 August, 2021 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) ('Endeavour' or the 'Group' or the
'Company') is pleased to announce its financial and operating results for Q2-2021 and H1-2021, with highlights provided in Table
1 below. Management will host a conference call and webcast on Wednesday 4 August, at 8:30 am ET / 1:30 pm BST. For
instructions on how to participate, please refer to the conference call and webcast section at the end of the news release.
Table 1: Consolidated Highlights1
All amounts in US$ million, unless otherwise stated
THREE MONTHS ENDED SIX MONTHS ENDED
30 June
2021
31 March
2021
30 June
2020
30 June
2021
30 June
2020
Δ H1-2021
vs. H1-2020
OPERATING DATA
Gold Production, koz 409 347 149 756 321 +136%
All-in Sustaining Cost2, $/oz 853 868 941 860 916 (6)%
Realised Gold Price, $/oz 1,791 1,749 1,680 1,771 1,603 +10%
CASH FLOW FROM CONTINUING OPERATIONS3
Operating Cash Flow Before Changes in Working Capital 286 263 75 549 170 +223%
Operating Cash Flow Before Changes in Working Capital2, $/share 1.13 1.27 0.67 2.39 1.54 +55%
Operating Cash Flow 300 207 53 507 153 +231%
Operating Cash Flow2, $/share 1.19 0.99 0.48 2.21 1.38 +60%
PROFITABILITY FROM CONTINUING OPERATIONS3
EBITDA2 363 333 23 696 124 +461%
Adjusted EBITDA2 400 306 99 706 206 +243%
Net Earnings/(loss) Attributable to Shareholders2 127 87 (38) 213 (22) (1068)%
Net Earnings per Share, $/share 0.50 0.42 (0.35) 0.93 (0.20) (565)%
Adjusted Net Earnings Attributable to Shareholders2 183 93 49 276 74 +273%
Adjusted Net Earnings per Share2, $/share 0.73 0.45 0.44 1.20 0.66 +82%
SHAREHOLDER RETURNS
Dividends paid — 60 — 60 — n.a.
Share buyback (commenced in Q2-2021) 59 — — 59 — n.a.
FINANCIAL POSITION HIGHLIGHTS
Net Debt/(Net Cash)2 77 162 473 77 473 (84)%
Net (Cash)/Debt / Adjusted EBITDA (LTM) ratio2,4 0.07 0.16 1.00 0.07 1.00 (93)%
1All amounts include Teranga assets from 10 February, 2021 2This is a non-GAAP measure. Refer to the non-GAAP measure section of the Management Report. 3From Continuing
Operations excludes the Agbaou mine which was divested on 1 March, 2021. 4LTM means last twelve months.
Sebastien de Montessus, President and CEO, commented: “Our strong Q2 performance positions us well to achieve the top half
of our production guidance for the full year, as all our mines are continuing to perform well and we have quickly integrated the
Teranga assets within our business.
Our strong free cash flow generation has significantly improved our balance sheet strength and bolstered our ability to reward
shareholders. We paid our first dividend of $60 million in Q1 for the 2020 fiscal year, and today we are declaring an interim
dividend of $70 million for H1-2021, placing us on track to deliver more than the guided minimum dividend of $125 million for the
full year. Given our near zero Net Debt to adjusted EBITDA leverage ratio, we have been supplementing our shareholder return
programme with share buybacks, having repurchased $70 million of shares since April.
Our growth pipeline continues to develop with the Sabodala-Massawa phase 1 expansion on track to be completed in Q4-2021
while Definitive Feasibility Studies are progressing well for the Sabodala-Massawa Phase 2 expansion, Fetekro, and Kalana
projects.
We have enjoyed further exploration success, with significant discoveries made at Ity, Houndé, Sabodala-Massawa and Fetekro,
where updated resources are expected to be published later this year. Overall, the group is on track to delineate over 2.5 million
ounces of Indicated resources in 2021, which represents significantly more than the expected annual depletion and contributes
to our portfolio’s longevity.
We are also very pleased to have successfully completed our listing on the premium-segment of the London Stock Exchange in
June and remain on track to be included into the UK and European indexes.
These achievements leave Endeavour well positioned for the remainder of the year and beyond.”
UPCOMING CATALYSTS
The key upcoming expected catalysts are summarized in the table below.
Table 2: Key Upcoming Catalysts
TIMING CATALYST
Q3-2021 Exploration 5-year exploration strategy
Q4-2021 Sabodala-Massawa Completion of Phase 1 plant upgrades
Q4-2021 Sabodala-Massawa Completion of Definitive Feasibility Study for Phase 2
Q4-2021 Fetekro Completion of Definitive Feasibility Study
Q1-2022 Kalana Completion of Definitive Feasibility Study
LONDON STOCK EXCHANGE LISTING
• Endeavour’s premium listing on the London Stock Exchange (“LSE”) was successfully completed on 14 June 2021, positioning
Endeavour as the largest pure-play gold producer listed on the premium segment of the LSE.
• Endeavour is well positioned to be included in the upcoming FTSE Russell index quarterly review based on its recent re-
domicile to the UK and subject to its trading liquidity being above the required threshold. Membership changes to the indices
are expected to be communicated by FTSE Russell on 1 September 2021 with potential inclusion becoming effective on the
20 September 2021.
• In addition, Endeavour expects to be eligible for inclusion in the MSCI Europe index, with index rebalancing occurring on 30
November 2021 following the semi-annual review which is expected to be completed by mid-November.
SHAREHOLDER RETURNS PROGRAM
• As disclosed on 7 June 2021, Endeavour has implemented a shareholder returns programme that is composed of a minimum
progressive dividend that may be supplemented with additional dividends and buybacks, providing the prevailing gold price
remains above $1,500/oz and that Endeavour’s leverage remains below 0.5x Net Debt / adjusted EBITDA.
• The minimum progressive dividend policy has a target of distributing at least $500 million to shareholders over the next
three years. Minimum dividends are set at $125 million, $150 million and $175 million for FY-2021, FY-2022, and FY-2023
respectively, payable semi-annually, significantly higher than our inaugural FY-2020 dividend of $60 million.
• Endeavour is pleased to declare its H1-2021 interim dividend of $70 million or $0.28 per share based on its current issued
share capital, which represents 56% of the minimum dividend for FY-2021, highlighting its strong commitment to paying
supplemental shareholder returns. The ex-dividend date for the interim dividend will be 9 September 2021 and the record
date will be 10 September 2021. The dividend will be paid on or about 28 September 2021 (the “Payment Date”).
• Shareholders of shares traded on the Toronto Stock Exchange will receive dividends in Canadian Dollars (“CAD”), but can
elect to receive United States Dollars (“USD”). Shareholders of shares traded on the London Stock Exchange will receive
dividends in USD, but can elect to receive Pounds Sterling (“GBP”). Certificated shareholders will receive dividends in USD but
can elect to receive dividends in GBP or CAD. Currency elections must be made by shareholders prior to 17:00 GMT on 13
September 2021. Dividends will be paid in the default or elected currency on the Payment Date, at the prevailing USD:CAD
and USD:GBP exchange rates on 15 September 2021. This dividend does not qualify as an “eligible dividend” for Canadian
income tax purposes. The tax consequences of the dividend will be dependent on the particular circumstances of a
shareholder.
• Shareholder returns are being supplemented through the Company’s share buyback programme. A total of $70 million of
shares have been repurchased since the start of the buyback programme on 9 April 2021 until end of July 2021, of which $59
million or 2.7 million shares were repurchased in Q2-2021.
ON TRACK TO ACHIEVE FY-2021 GUIDANCE
• Strong H1-2021 performance of 756koz at an AISC of $ 860/oz positions the Group well to meet the top-half of its FY-2021
production guidance of 1,365-1,495koz at an AISC of $850-900/oz.
• H2-2021 will benefit from the full consolidation of the Sabodala-Massawa and Wahgnion mines, which have been
consolidated starting from the closing date of the Teranga Gold acquisition of 10 February 2021.
• Group sustaining and non-sustaining capital expenditure outlook for FY-2021 remains in line with initial guidance of $173
million and $201 million, respectively.
Table 3: H1-2021 Performance vs. FY-2021 Guidance
2021 FULL YEAR GUIDANCEH1-2021
Production, koz 756 1,365 — 1,495
AISC, $/oz 860 850 — 900
CASH FLOW AND LIQUIDITY SUMMARY
The table below presents the cash flow and Net Debt position for Endeavour for the three and six month period ending 30 June,
2021, with accompanying notes below.
Table 4: Cash Flow and Net Debt Position
THREE MONTHS ENDED SIX MONTHS ENDED
In US$ million unless otherwise specified
30 June
2021
31 March
2021
30 June
2020
30 June
2021
30 June
2020
Net cash from (used in), as per cash flow statement:
Operating cash flows before changes in working capital
from cont. operations 286 263 75 549 170
Changes in working capital 15 (57) (21) (42) (17)
Cash generated from/(used by) discontinued operations 0 (9) 4 (9) 30
Cash generated from operating activities (Note 1) 300 198 57 498 183
Cash used by investing activities (Note 2) (137) (105) (48) (243) (105)
Cash (used in)/generated from financing activities (Note 3) (192) 65 (16) (127) 84
Effect of exchange rate changes on cash (7) (4) 1 (10) 0
INCREASE/(DECREASE) IN CASH (35) 154 (6) 118 162
Cash position at beginning of period 868 715 357 715 190
CASH POSITION AT END OF PERIOD (Note 4) 833 868 352 833 352
Equipment financing 0 0 (64) 0 (64)
Convertible senior bond (330) (330) (330) (330) (330)
Drawn portion of corporate loan facility (Note 5) (580) (700) (430) (580) (430)
NET DEBT/ (CASH) POSITION (Note 6) 77 162 473 77 473
Net Debt / Adjusted EBITDA (LTM) ratio1 (Note 7) 0.07 x 0.16 x 1.00 x 0.07 x 1.00 x
1Net Debt and Adjusted EBITDA are Non-GAAP measures. Refer to the non-GAAP measure section of the Management Report.
NOTES:
1) Operating cash flows increased by $102.5 million from $197.9 million (or $0.99 per share) in Q1-2021 to $300.5 million (or
$1.19 per share) in Q2-2021 mainly due to higher gold sales at a higher realised price as well as lower operating costs and a
working capital inflow, which more than offset the higher income taxes paid and the foreign exchange losses incurred.
Operating cash flow before non-cash working capital from all operations increased by $22.2 million from $263.4 million (or
$1.27 per share) in Q1-2021 to $285.7 million (or $1.13 per share) in Q2-2021. Notable variances are summarised below:
• Gold sales increased by 57koz over Q1-2021 to 421koz in Q2-2021 due to the benefit of a full quarter of production
from the newly acquired Sabodala-Massawa and Wahgnion mines, together with strong performances at Houndé and
Ity. The realised gold price for Q2-2021 was $1,791/oz compared to $1,749/oz for Q1-2021. Total cash cost per ounce
decreased from $751/oz in Q1-2021 to $729/oz in Q2-2021 due to the inclusion of the lower cost Wahgnion and
Sabodala-Massawa mines for the full quarter
• Income taxes paid increased by $82.9 million to $106.5 million in Q2-2021 reflective of the timing of provisional
payments based on full year 2020 earnings
• Working capital was an inflow of $14.8 million in Q2-2021 due to the reduction in receivable balances and inventories.
Specifically, VAT receivables at Houndé decreased and certain corporate receivables were received in Q2-2021. There
was also a reduction in inventory stockpiles and finished gold inventories at Ity, Sabodala-Massawa and Wahgnion
• Acquisition and restructuring costs of $14.5 million in Q2-2021 related to the Teranga acquisition and integration as
well as restructuring costs
2) Cash flows used by investing activities increased from Q1-2021 to $137.3 million in Q2-2021 due to increased expenditures
on mining interest including sustaining capital and non-sustaining capital:
• Sustaining capital from continuing operations increased by $13.9 million from Q1-2021 to $41.5 million in Q2-2021 due
to higher sustaining capital at Boungou, Houndé and Ity primarily due to planned waste capitalisation
• Non-sustaining capital from continuing operations increased slightly in Q2-2021 to $58.3 million, due to increases at
Wahgnion and increases in non-mining capital expenditure which were mostly offset by decreases at Ity, Mana and
Houndé
• Growth capital spend decreased by $15.4 million from Q1-2021 to $12.6 million in Q2-2021 and primarily relates to the
Massawa expansion with the remainder for ongoing Definitive Feasibility Studies (“DFS”) studies
3) Cash flows used by financing activities increased by $256.4 million to $191.8 million in Q2-2021 mainly due to a higher net
repayment of long-term debt in Q2-2021, which was $120.0 million and payments for the acquisition of own shares, as part
of the ongoing share buyback programme, of $59.5 million, which started in Q2-2021.
4) At quarter-end, Endeavour’s liquidity remained strong with $ 832.9 million of cash on hand and $220.0 million undrawn of
the RCF. The Company will seek to reduce its cash balance in the upcoming quarters by continuing to pay down its debt.
5) Endeavour's corporate loan facility was increased from $430.0 million to $800.0 million in Q1-2021 to retire Teranga’s
various higher cost debt facilities. In Q2-2021 $120.0 million was repaid on the facility with $580.0 million drawn on the
facility at quarter-end.
6) Net Debt amounted to $77.1 million at quarter-end, a decrease of $84.9 million during the quarter despite dividend
payments of $60.0 million and $59.5 million of shares repurchased. In H1-2021, Net Debt increased by $ 152 million
compared to the beginning of the year as approximately $332 million of Net Debt was absorbed from Teranga in Q1-2021.
7) The Net Debt / Adjusted EBITDA (LTM) leverage ratio ended the quarter at a healthy 0.07x, down from 0.16x in Q1-2021,
and well below the Company’s long-term target of less than 0.50x, which provides flexibility to continue to supplement its
shareholder return programme while maintaining headroom to fund its organic growth. The ratio has improved by 93%
from the corresponding period last year when the ratio stood at 1.00x.
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three and six month period ending 30 June,
2021, with accompanying notes below.
Table 5: Earnings from Continuing Operations
THREE MONTHS ENDED SIX MONTHS ENDED
30 June
2021
31 March
2021
30 June
2020
30 June
2021
30 June
2020
Revenue (Note 8) 753 636 210 1,389 436
Operating expenses (Note 9) (278) (253) (83) (531) (179)
Depreciation and depletion (Note 9) (158) (132) (35) (290) (78)
Royalties (Note 10) (44) (44) (15) (88) (30)
Earnings from mine operations 273 207 76 480 148
Corporate costs (Note 11) (16) (11) (5) (30) (10)
Acquisition and restructuring costs (Note 12) (15) (12) (3) (27) (7)
Share-based compensation (10) (8) (5) (18) (7)
Exploration costs (6) (10) (2) (16) (3)
Earnings from operations 227 165 61 389 121
(Loss)/gain on financial instruments (Note 13) (15) 42 (72) 27 (75)
Finance costs (14) (12) (12) (26) (23)
Other (expense)/income (7) (6) (2) (11) —
Earnings before taxes 191 189 (25) 380 23
Current income tax expense (Note 14) (44) (72) — (117) (19)
Deferred income tax recovery/(expense) 2 (6) (6) (4) (7)
Net comprehensive earnings/(loss) from continuing
operations (Note 15) 149 111 (31) 260 (3)
Add-back adjustments (Note 16) 59 14 89 71 97
Adjusted net earnings from continuing operations (Note 17) 208 125 59 331 94
Portion attributable to non-controlling interests 25 32 9 54 20
Adjusted net earnings from continuing operations
attributable to shareholders of the Company (Note 17) 183 93 49 276 74
Earnings/(loss) per share from continuing operations 0.50 0.40 (0.35) 0.93 (0.20)
Adjusted net earnings per share from continuing
operations 0.73 0.45 0.44 1.20 0.66
NOTES:
8) Revenue for Q2-2021 was $753.4 million compared to $635.8 million for Q1-2021. The increase in revenue in Q2-2021 was
mainly due to higher gold sales in Q2-2021 due to the benefit of a full quarter of production from the newly acquired
Sabodala-Massawa and Wahgnion mines, together with strong performances at Houndé and Ity and a higher realised gold
price for Q2-2021 of $1,791/oz compared to $1,749/oz for Q1-2021.
9) Operating expenses and depreciation and depletion increased for Q2-2021 compared to Q1-2021 due to the addition of the
Wahgnion and Sabodala-Massawa mines, which were acquired on 10 February, 2021, for the full quarter.
10) Royalties were $43.9 million for Q2-2021, compared to $44.4 million in Q1-2021. Royalty expenses remained stable as the
decrease in realised gold price was offset by increased production from the Wahgnion and Sabodala-Massawa mines
acquired on 10 February, 2021.
11) Corporate costs were $15.9 million for Q2-2021 compared to $11.4 million for Q1-2021. The increase in corporate costs are
primarily due to costs associated with listing on the LSE as well as additional corporate costs following the integration of
Teranga.
12) Acquisition and restructuring costs were $14.5 million in Q2-2021 compared to $12.2 million in Q1-2021. Costs slightly
increased in Q2-2021 compared to the comparative period due to the acquisition of Teranga on 10 February 2021 and the
costs related to the integration of the entity into the Endeavour Group.
13) The loss on financial instruments was $14.8 million in Q2-2021 compared to a gain of $42.1 million in Q1-2021. The loss in
Q2-2021 is mainly due to the net impact of a loss on change in fair value of the warrant liabilities and call rights of $5.3
million and $7.0 million respectively, and foreign exchange losses of $7.2 million. The gain in Q1-2021 is primarily due to the
net impact of the unrealised gain/(loss) on convertible senior bond derivative of $30.0 million, loss on foreign exchange of
$6.2 million, and a loss on change in fair value of warrant liabilities of $1.5 million.
14) Current income tax expense was $44.5 million in Q2-2021 compared to $72.1 million in Q1-2021. Current income tax
expense for Q2-2021 decreased compared to Q1-2021, despite the inclusion of the Wahgnion and Sabodala-Massawa
mines acquired in Q1-2021, due to an adjustment to the income tax accrual upon finalisation of the FY-2020 income tax
filings. Income taxes paid of $106.5 million in Q2-2021 were materially higher than income taxes expensed reflecting higher
provisional payments made at the end of the 2020/2021 tax year.
15) Net comprehensive earnings were $148.9 million for Q2-2021 compared to $110.9 million in Q1-2021. The increase in
earnings was related to higher earnings from mine operations due to the addition of Wahgnion and Sabodola-Massawa, as
well as a lower income tax expense, which contained one-off expenses related to the divestment of Agbaou in Q1-2021.
16) Adjustments relate mainly to loss/(gain) on financial instruments, loss on discontinued operations, deferred income tax,
share based compensation, non-recurring items and acquisition and restructuring costs.
17) Adjusted Net Earnings attributable to shareholders for continuing operations were $183.1 million (or $0.73 per share) in
Q2-2021 compared to $93.2 million (or $0.45 per share) in Q1-2021.
OPERATIONS REVIEW SUMMARY
• Continued strong safety record for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) of 0.16 for the trailing twelve
months ending 30 June, 2021.
• The acquisition of Teranga Gold was completed on 10 February, 2021 and the Sabodala-Massawa and Wahgnion assets have
been consolidated into the financial statements from this date. The sale of Endeavour's non-core Agbaou mine closed on 1
March, 2021, and has been classified as a discontinued operation.
• A stronger than guided performance was achieved in Q2-2021 due to outperformance at Houndé and Ity which benefited
from less rainfall than usual.
• Production increased 18% in Q2-2021 over Q1-2021 to 409koz, while AISC decreased by $ 15/oz to $ 853/oz, due to the full
benefit of consolidated production from Sabodala-Massawa and Wahgnion, and the strong operational performance as
noted above.
Table 6: Consolidated Group Production
THREE MONTHS ENDED SIX MONTHS ENDED
30 June 2021 31 March 2021 30 June 2020 30 June 2021 30 June 2020(All amounts in koz, on a 100% basis)
Boungou 39 60 — 99 —
Houndé 80 66 57 146 113
Ity 79 71 47 150 108
Karma 25 22 20 47 48
Mana 49 52 — 102 —
Sabodala-Massawa1 96 39 — 135 —
Wahgnion1 41 25 — 66 —
PRODUCTION FROM CONTINUING OPERATIONS 409 334 125 743 269
Agbaou2 — 13 24 13 52
GROUP PRODUCTION 409 347 149 756 321
1Included for the post acquisition period commencing 10 February, 2021. 2Divested on 1 March, 2021.
Table 7: Consolidated All-In Sustaining Costs1
(All amounts in US$/oz)
THREE MONTHS ENDED SIX MONTHS ENDED
30 June 2021 31 March 2021 30 June 2020 30 June 2021 30 June 2020
Boungou 950 690 — 793 —
Houndé 741 839 965 787 1,020
Ity 806 786 789 796 707
Karma 1,070 1,179 951 1,120 889
Mana 1,016 954 — 982 —
Sabodala-Massawa1 637 749 — 675 —
Wahgnion1 980 780 — 903 —
Corporate G&A 25 31 34 28 32
Sustaining exploration — — — — —
AISC FROM CONTINUING OPERATIONS 853 858 938 855 909
Agbaou2 — 1,131 955 1,131 953
GROUP AISC 853 868 941 860 916
1Included for the post acquisition period commencing 10 February, 2021. 2Divested on 1 March 2021.
OPERATING ACTIVITIES BY MINE
Boungou Gold Mine, Burkina Faso
Table 8: Boungou Performance Indicators
For The Period Ended Q2-2021 Q1-2021 Q2-2020 H1-2021 H1-2020
Tonnes ore mined, kt 350 246 — 596 —
Total tonnes mined, kt 8,347 6,672 — 15,018 —
Strip ratio (incl. waste cap) 22.82 26.11 — 24.18 —
Tonnes milled, kt 336 315 — 651 —
Grade, g/t 3.84 5.52 — 4.65 —
Recovery rate, % 95 96 — 95 —
PRODUCTION, KOZ 39 60 — 99 —
Total cash cost/oz 714 619 — 657 —
AISC/OZ 950 690 — 793 —
Q2-2021 vs Q1-2021 Insights
• Gold production significantly decreased relative to Q1-2021, as greater throughput was offset by lower grades. Mining and
mill feed was constrained to lower grade areas as the larger mining fleet was focused on waste extraction at the East pit.
– Total tonnes mined was higher following the commissioning of additional mining equipment during Q1-2021. Mining
activities continued to focus on the West pit with total tonnes of ore mined increasing as a result of the lower strip ratio
and the benefit of mining on the top benches. Pre-stripping activities at the East pit continued during Q2-2021.
– Tonnes milled increased in Q2-2021 relative to Q1-2021 as higher mill utilisation resulted from improved mining
fragmentation of the ore, as well as the benefit of improvements made to the SAG mill, pebble crusher and vertical
tower mill which started in Q4-2020 following the restart of mining.
– Average processed grade decreased during Q2-2021 as the mill feed was mainly sourced from the lower grade areas of
the West Pit, as the higher grade areas were targeted during the restart of mining activities in Q4-2020 and Q1-2021.
• AISC per ounce increased during Q2-2021 compared to Q1-2021 due to the decrease in head grade and higher sustaining
capital (an increase of $165 per ounce) due to waste stripping. Unit mining and unit processing costs decreased due to
increased efficiencies as a result of additional mining equipment commissioned in Q1-2021 and improved mining
fragmentation.
• Sustaining capital expenditures of $9.0 million during Q2-2021 mainly related to waste capitalisation at the West pit and the
TSF lift.
• Non-sustaining capital expenditure of $3.9 million during Q2-2021 mainly related to pre-stripping at the East pit.
2021 Outlook
• Boungou is well positioned to meet its FY-2021 production guidance of 180 - 200koz, while AISC are expected to continue to
trend above the guided $690 - 740 per ounce range as a result of higher fuel prices and increased security costs.
• Plant feed is expected to continue to be sourced from the West Pit with waste stripping activities continuing at the East Pit
throughout the year. Mill throughput is expected to remain broadly consistent with H1-2021 performance, along with
average processed grades, while recovery rates are expected to slightly decline due to the ore characteristics.
• The sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $19.0 million, of
which $13.1 million has been incurred in H1-2021. The non-sustaining capital spend outlook for FY-2021 also remains
unchanged compared to the initial guidance of $22.0 million, of which $8.4 million has been incurred in H1-2021.