Endomines - Production delayed but en route
Due to some delays and changes the production guidance for 2021 was lowered to around 1,500 oz (prev. 3,000-4,000 oz). Production is set to start again in Q3 after a 12-month halt.
- Revenue in Q1 amounted to SEK 0.0*m, with our estimates at SEK 0.0m. The Friday mine was put into care and maintenance during Q3/20 and no significant new gold concentrate production took place during Q2.
- EBITDA in Q2 was at SEK -25.9m*, below our estimate of SEK -16.0m, with costs in the second quarter larger than estimated.
- EBIT amounted to SEK -76.9m* (Evli SEK -20.0m). Depreciations and write-downs of SEK 51.2m were clearly higher than expected.
*Figures derived from Q1 and H1 figures - During Q3 2021 gold production will restart at the Orogrande Processing facility. Restaffing at both mine and the mill has taken slightly longer than Endomines expected due to market conditions caused by COVID-19, which along with delays in delivery of some vital mill equipment and components has caused a slight delay to the mill start-up from July to late August.
- Liquid assets amounted to SEK 28.0m at the end of Q2.
- The gold production guidance for the remainder of the year is now expected to be approx. 1,500 oz (prev. 3,000-4,000 oz).
- Friday: When in full production Endomines expects the annual gold production from the Friday mine to reach 7,800-9,000 oz. Full production estimated by Q4 2021/Q1 2022.
- Pampalo: When in full production Endomines expects the annual gold production from the Pampalo mine to reach 10,000-11,500 oz. Full production estimated by Q2/Q3 2022.