TORONTO-listed mid-tier gold producer, Endeavour Mining, continued to reshape its portfolio putting its Tabokoto mine on the block in an effort to drive down costs while gold production replacement would come from new and newly commissioned assets.
Commenting in the firm’s second quarter and interim operating and financial results, published on August 1, Sébastien de Montessus, President and CEO of Endeavour, said the preference was for a 100% cash deal for Tabakoto. A number of non-binding bids were on the table with a view to completing the sale by the fourth quarter, he said.
Production from continuing operations totalled 147,000 oz for the second quarter taking half-year output to 299,000 oz which De Montessus said was on course for the 555,000 oz to 590,000 oz full year target guided at the commencement of the year. All-in sustaining costs (AISC) have been guided to $760 to $810/oz for the year against which, the half-year number of $732/oz stacked up well.
Tabakoto, a mine sited in West Africa’s Mali, reported AISC in the second quarter of $1,397/oz which compares to the $1,208/oz it produced in the first quarter of the financial year. De Montessus said the firm would attempt to operate the mine as well as it could, although significant investment in much-needed fleet replacement was unlikely.