torsdag 19 februari 2015

Endeavour's Houndé vässat

Har hämtat grabben, lyssnat på Dream Global och skummat EDV releasen allt på en gång. Men direkt ur huvudet så ser det mkt bra ut. IRR siffran vid 1250 är det jag märkte först, även ökat minelife är bra. Får gräva fram den gamla releasen och läsa genom detta i lugn och ro. Ironiskt nog är det nog så att marknaden är så skräckslagen för att ledningen ska smälla till med en PP för att finansiera att kursen inte svarar så lätt..

Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV) (ASX:EVR) (OTCQX:EDVMF) announces year-end mineral reserves of 2.1 million ounces (see Tables 1 and 2) at the Houndé Project, an increase of 34% due to the expansion of the Vindaloo deposit and inclusion of two new deposits located within 14 kilometres of the proposed plant site.  An updated open pit mine plan delivers more gold production and extended mine life with highlights including: 10 year life, total gold production of 1.9 million ounces, forecast LOM AISC of $714/oz, and after-tax IRR of 31.4% at $1,250/oz gold price.  The strong project economics across a range of gold prices confirms that Houndé is a core asset in our growth profile.
Houndé Exploration Drill Program and Resource & Reserve Update
  • The Houndé drilling program began in June 2014 and was completed in November 2014.  It included 57,978 metres drilled with 110 diamond holes (22,780 metres) and 358 reverse-circulation holes (35,198 metres) completed (Figure 1).
  • Drilling along the Vindaloo trend had two objectives: (1) test the extents of the Vindaloo Main mineralization at depth and on strike; and (2) convert Inferred mineral resources to Indicated category (Figure 2). Drilling on the Vindaloo West and Vindaloo Main zone targeted Inferred resource blocks and was successful in confirming mineralization.  Upgrading of Inferred mineral resources not only provided additions to mineral reserves but also reduced strip ratios in the Vindaloo Main zone. 
  • Bouéré is located 12 km west of the Houndé process plant site and the drilling program was successful in extending the mineralization over a 600 metre strike length with widths of mineralization varying from 2 to 25 metres and generally 80 degree dip to the northwest.
  • Dohoun is located approximately 14 km northwest of the Houndé process plant site and the drill program aimed at improving confidence in grade and continuity to enable resource estimation.  The Dohoun mineralization is 500 metres along strike and dips steeply northwest in the main ore zone.
Neil Woodyer, CEO, stated
"We are very pleased to report on the exploration success at Houndé during 2014.  We invested $6.7 million in the Houndé program during 2014 while we progressed through the mine permitting phase.  This has resulted in a 523,000 ounce addition to Proven and Probable reserves, or a 34% increase, for a cost of approximately $13 per discovered reserve ounce. 
The reserve additions have enhanced the after-tax project IRR to between 28% and 35%, with a gold price range of$1,200 to $1,300/oz.  At a $1,250/oz gold price the 5% NPV is $359 million.
The mining permit was received on February 5, 2015 and our Construction Services team, which recently completed the construction of the Agbaou Mine in Côte d'Ivoire both ahead of schedule and under budget, is preparing the Houndé Project for a construction decision.  We have had the upfront capital cost estimate confirmed by Lycopodium at $325 million and a detailed construction plan has been completed.  We are now focusing on refining the Houndéoperations plan, which now includes the updated mine plan with the 2014 exploration additions.  We are also reviewing operating costs in the context of reduced energy costs and the benefits of local currency rate devaluation.  The strong project economics across a range of gold price assumptions highlights the significant value of Houndé toEndeavour shareholders." 
Table 1: Houndé Mineral Resources (including reserves, effective December 31, 2014)
Deposit
Mineral Resources (including reserves)
Measured
Indicated
Measured & Indicated
Inferred
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
(000's)
Au g/t
(000's)
(000's)
Au g/t
(000's)
(000's)
Au g/t
(000's)
(000's)
Au g/t
(000's)
Vindaloo1
3,690
2.57
305
31,830
1.92
1,966
35,520
1.99
2,270
2,980
2.57
247
Bouéré2
-
-
-
1,090
5.37
189
1,090
5.37
189
180
3.43
20
Dohoun2
-
-
-
1,150
2.35
87
1,150
2.35
87
70
2.91
6
Houndé - Total
3,690
2.57
305
34,070
2.05
2,242
37,760
2.10
2,546
3,230
2.63
273
Attributable - 90%


274


2,017


2,291


246
1 Prepared by M. Zammit, MAIG (Cube Consulting) reported above 0.5 g/t cut-off and inside an optimized pit shell using US$1,500 per ounce gold price; - includes Vindaloo, Madras and Koho mineral resources 
2 Prepared by K. Harris CPG (Endeavour) reported above 0.5 g/t cut-off and inside an optimized pit shell usingUS$1,500 per ounce gold price
Table 2: Houndé Mineral Reserves (effective December 31, 2014) using $1,300/oz gold price
Deposit
Mineral Reserves
Proven
Probable
Proven & Probable
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
(000's)
Au g/t
(000's)
(000's)
Au g/t
(000's)
(000's)
Au g/t
(000's)
Vindaloo1
3,700
2.5
295
24,600
1.9
1,527
28,300
2.0
1,820
Dohoun2
-
-
-
1,214
1.9
72
1,214
1.9
72
Bouéré2
-
-
-
1,087
5.2
181
1,087
5.2
181
Houndé - Total
3,700
2.5
295
26,901
2.1
1,780
30,601
2.1
2,073
Attributable - 90%


266


1,602


1,866
1 Prepared by R.M. Cheyne FAusIMM (ORELOGY)
2 Prepared by M. Alyoshin MAusIMM CP Min (Endeavour)
Houndé Updated Mine Plan
Endeavour has prepared an updated economic model based on the substantially updated mineral reserves and rescheduled mine plan prepared by ORELOGY Group Pty Ltd. (see Table 3).  The updated mine plan defines a large-scale open pit mine that delivers 1.9 million ounces of recovered gold and the processing plant consists of a 3.0 million tonne per year primary crushing with SABC milling circuit to feed a gravity / CIL plant.  The enhanced production relative to the November 2013 Feasibility Study is a result of the exploration additions from 2014 and an optimization of the mine plan to access high grade and shallow gold mineralization during the initial years of the mine life.
Table 3: Houndé LOM Production Profile1

Year
1
2
3
4
5
6
7
8
9
10
Total
Mining












Ore mined
kt
3,537
2,875
2,853
5,133
3,079
3,018
1,501
7,727
0
0
29,723
Waste mined
kt
27,101
29,125
29,147
17,813
38,618
38,893
37,774
32,432
0
0
250,903
Total mined
kt
30,638
32,000
32,000
22,946
41,697
41,911
39,275
40,159
0
0
280,626
Strip ratio
ratio
7.7
10.1
10.2
3.5
12.5
12.9
25.2
4.2
0.0
0.0
8.4













Processing1












Ore processed
kt
3,000
2,997
3,000
3,000
3,000
3,000
3,000
2,979
3,000
2,748
29,723
Feed grade
g/t
2.92
2.68
2.59
2.44
1.92
2.46
1.39
2.41
1.36
1.29
2.15
Contained gold
k ozs
281.9
257.9
249.6
235.3
185.2
236.9
133.9
230.7
131.1
114.2
2,057
Recovery
%
93.9%
89.7%
89.2%
92.8%
94.8%
93.9%
91.7%
93.9%
94.7%
94.2%
92.7%
Recovered gold
k ozs
264.7
231.4
222.6
218.5
175.5
222.4
122.7
216.6
124.1
107.5
1,906.1


























LOM Production Schedule (November 2013 Feasibility Study)








Recovered gold
k ozs
191.3
215.3
189.9
168.4
211.1
167.8
136.9
152.9
11.9

1,445.5
Change vs. new LOM
k ozs
73.4
16.1
32.7
50.1
-35.6
54.6
-14.2
63.7
112.2
107.5
460.6
1 Life of mine processing schedule is based on dynamic cut-off grade optimization generating highest NPV
Houndé Capital Cost Estimate and Financial Summary
Endeavour engaged Lycopodium Minerals Pty Ltd to complete a detailed review and assessment of the total estimated cost to bring the Houndé Project into production.  The updated capital cost is $325 million (inclusive of contingency, working capital, and import duties), representing a 3.2% increase over the $315 million estimate in theNovember 2013 Feasibility Study.  Endeavour's Construction Services team has also completed a mine construction plan. 
The key parameters of the Houndé Project which are included in the updated financial model are summarized in Table 4 along with a summary of the key economic indicators. 
Table 4: Key Parameters of the Houndé Project and Updated Economic Summary
Parameter
Units
Feasibility Study 
(Nov 2013) – 
Base Case
Updated with
2014 Exploration
Additions
Change
Mill throughput
Mtpa
3.0
3.0

Total ore processed
Mt
24.6
29.7

Gold grade
g/t
1.95
2.15

Contained gold
000 ozs
1,548.7
2,056.6

Recovery (average)
%
93.3%
92.7%

Recovered gold
000 ozs
1,445.5
1,906.1
+460.6 (+32%)
Upfront capital cost
US$M
$315
$325
+10 (+3.2%)
Royalty rates, operating unit costs for mining (US$/t mined) & processing (US$/t milled), site G&A costs, sustaining capital and corporate tax parameters unchanged from the Feasibility Study
NPV (5%, after tax) - $1,300
US$M
$230
$415
$185 or 80% increase
IRR (after tax) - $1,300
%
22.4%
34.7%

AISC/ounce
US$/oz
$775
$717
$58/oz cost savings due to
increase in grade

Gold price sensitivity - at $1,250/oz




NPV (5%, after tax) - $1,250
US$M
n/a
$359

IRR (after tax) - $1,250
%
n/a
31.4%

AISC/ounce
US$/oz
n/a
$714


Gold price sensitivity - at $1,200/oz




NPV (5%, after tax) - $1,200
US$M
n/a
$302

IRR (after tax) - $1,200
%
n/a
27.9%

AISC/ounce
US$/oz
n/a
$711


Image with caption: "Figure 1: Houndé 2014 Drilling Targets and Reserves (CNW Group/Endeavour Mining Corporation)". Image available at:http://photos.newswire.ca/images/download/20150219_C7523_PHOTO_EN_12349.jpg
Image with caption: "Figure 2: Vindaloo 2014 Drill Program Showing Highlights (CNW Group/Endeavour Mining Corporation)". Image available at:http://photos.newswire.ca/images/download/20150219_C7523_PHOTO_EN_12350.jpg


5 kommentarer:

  1. IRR på dryga 31% är mycket bra. Jag brukar vilja se åtminstone 20%.

    SvaraRadera
  2. Off topic..
    OB..Har du något intressant att säga om stockholmsbörsen? Jag har aldrig sett en sån uppgång vi haft senaste tiden. Vad beror detta på? ECB:s lättnader eller är det risk för en fet rekyl som det skrivs mycket om.

    Mvh Valle

    SvaraRadera
    Svar
    1. Off topic är okej...
      Jag följer inte STH så mycket men kanske spelar svag svensk valuta roll? Många internationella bolag har ju någon form av värdering som kanske är mer oberoende av kronan och kanske i vissa fall även Euron. Besläktat med det då kanske fördelen med att det blir varmt när man kissar i byxorna dvs orsakar valutanedgång istället för att göra reformer så att ekonomin fungerar bättre.

      Radera
  3. Ursäkta den dumma frågan men vad betyder "PP" i sammanhanget ovan?

    I övrigt - tack för en intressant blog.

    SvaraRadera
    Svar
    1. Fikonspråk för Private placement. I Kanada har man inte vanan att göra nyemission med företräde för existerande aktieägare. Istället sopar man till med emissioner med kanske 10% rabatt och ibland kryddat med extra warranter till nya placerare som måste uppfylla att man är tillräckligt rik. Krasst uttryckt, men så är det och systemet är väldigt fientligt mot "icke kanadensare" och småsparare och kraftigt riggat för att gynna institutioner i Kanada och förstås mäklarna.

      Utan att ha fakta och bevis så är min uppfattning att mäklarna har tillstånd att sälja aktier i vetskap om att dom kommer köpa tillbaka billigare för att "försvara kursen". Fritt fram att motbevisa mig med regelverk och lagtext. Jag skulle tacksamt ta emot motbevisning om att jag under 10 år missuppfattat vad jag uppfattar som korruption godkänd av lagstiftaren i Nordamerika.

      Radera