Issue link: http://resourceworld.uberflip.com/i/423464
D E C E M B E R / J A N U A R Y 2 0 1 5 www.resourceworld.com 35 to production growth and cost reduction. This is the ideal performance for a gold pro- ducer in a difficult market environment. A focus on reduced operating costs is an important part of the growth plan. To reduce costs Endeavour has worked with its suppliers and contractors to have all parties tighten their belts and deliver better efficiency. The company is also a beneficiary of operating in lower cost jurisdictions. For example, the electricity rate locked in for Agbaou in Côte d'Ivoire is about 8.5 cents per KWh, among the lowest in all of Africa. Endeavour has been able to report steady cost reductions quar- ter after quarter, while still maintaining strong production growth. For the full year the company issued a production target for 400,000 to 440,000 ounces of gold. The company is well on track to exceed this guidance with one quarter to go. Al-in sustaining costs are expected within the $985 to $1,070/oz range. This appears to be easily achievable and if so, Endeavour is capable of generat- ing very strong cash flow for the year. The company has drawn down about $300 million of revolving debt facility with $50 million in available funding if needed. As long as Endeavour can continue to meet its operating targets the company should be just fine to pay interest obligations and capital funding requirements without any duress. West Africa has been in the headlines lately due to the ongoing Ebola outbreak and this has put additional scrutiny on some of the companies that are operating in that part of the world. None of the mines run by Endeavour are located in countries that have any reported Ebola cases, but the company has chosen a proactive strategy. All employees and contractors are subject to screening and each of the projects has a medical facility where staff members have been trained to take precautions against disease transmission. Endeavour is looking ahead to maintain growth in the pipeline. Their advanced stage Hounde Project, in the southwestern region of Burkina Faso, is awaiting per- mitting approval for mine development, which is anticipated within a matter of months. The company has already engaged with its construction services team to con- sider various strategies for optimal mine development when it receives the green light to go ahead. Additional exploration work is also being completed to augment the resources for the planned mine. Despite all of the recent achievements for the company, the stock price has been under pressure in line with most of the sector. Endeavour Mining embarked on its gold production strategy under similar con- ditions and the company is moving ahead with the full expectation that it will con- tinue with a successful track record. The drive towards optimal efficiency, combined with sustainable growth, should put the company in great shape when the gold price recovers. n