The full interim report is found on the company’s website and is in Swedish
only.
Highlights Q1/2015
· Gold production 131.3 kg (176.0)
· Revenues 31.7 MSEK (37.6)
· EBITDA before unrealized losses/gains on derivatives -16.1 MSEK (-5.7)
· Profit after tax -32.6 MSEK (-17.4)
· Earnings per share SEK -0.12 (-0.13)
· Total investments 8.2 MSEK (5.9)
· Total cash flow -20.4 MSEK (-13.0), of which realised gold hedge -11.3 MSEK
(-4.0)
· Endomines Exploration Challenge the Karelian Gold Rush was launched on 2nd
of March
· Mineral Reserve and Resource Estimate update announced 13th of March
Production guidance for 2015
· The production guidance for 2015 is approx. 700 kg of gold
Key data-Group
January - March
MSEK om ej annat anges 2015 2014 +/-
Revenues 31.7 37.6 -5.9
EBITDA before unrealised loss on derivatives -16.1 -5.7 -10.4
EBIT -37.6 -20.1 -17.4
Profit before tax -39.8 -21.0 -18.8
Net profit -32.6 -17.4 -15.2
Cash flow -20.4 -12.9 -7.5
Gold production (kg) 131.3 176.0 -44.7
Gold production (oz) 4,221 5,659 -1 438
Milled ore (tonnes) 76,089 107,866 -31,777
Operations review
The production for the first quarter 2015 amounted to 131.3 kg gold (176.0).
Key figures by quarter
2 014 2 014 2 014 2 014 2 015
Q1 Q2 Q3 Q4 Q1
Milled ore (tonnes) 107,866 104,688 95,583 87,205 76,089
Head grade (Au gram/tonne) 2.0 2.3 2.7 2.4 2.3
Gold recovery (%) 81.6 80.3 81.6 82.9 83.8
Hourly utilization (%) 94.6 95.7 93.7 89.8 82.8
Gold production (kg) 176.0 195.7 210.9 179.3 131.3
Gold production (oz) 5,659 6,292 6,781 5,765 4,221
LTIFR (12 months rolling) 11 16 23 24 25
Cost per milled ore tonne (EUR) 41 39 46 51 61
Cost per milled ore tonne (SEK) 365 349 415 462 577
Cash Cost (USD/oz) per quarter 1,271 939 960 1,046 1,394
Cash Cost (USD/oz) rolling 12 months 1,243 1,130 1,127 1,047 1,059
Gold price (USD/oz) 1,293 1,289 1,284 1,229 1,220
Footnotes for Production figures[1] (http://connect.ne.cision.com#_ftn1) /
LTIFR[2] (http://connect.ne.cision.com#_ftn2)
As a consequence of a reduced access to new stoping areas in the Pampalo under
ground mine, the mined and milled tonnage during the quarter was below the
target. The restricted access to stopes, in combination with some technical
issues at the crushing circuit in the processing plant, reduced the total
throughput tonnage and gold production below the target. The hourly utilization
rate in the mill was 82.8%.
The unit production costs were higher than expected due to lower than planned
milled ore tonnage and gold production. Total production cost per milled ore
tonne amounted to 577 SEK or 61 EUR. Cash cost for the quarter amounted to 1,394
USD/oz (1,271).
Mineral Reserves and Mineral Resources
In March an update of the Company’s mineral reserves and mineral resources was
announced. As the Pampalo mine has progressively been deepened, the conditions
for the production at Pampalo mine have become more challenging. Previously
interpreted larger ore lenses have been observed to be broken up into smaller
lenses.
The company commenced infill drilling at its Hosko deposit in late 2014
immediately once financing was secured. The recent drilling has however not been
able to confirm the extent of the previously identified high grade part of the
deposit. The recent drilling has also delineated grade distribution within the
deposit. As earlier announced the Hosko mineral resources and ore reserves have
decreased materially.
The updated mineral reserves and mineral resources as of 31 December 2014 are
available on the Company website.
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[1] Production figures for the last quarter are based on company own assaying
and not confirmed by any external laboratory. Figures are individually rounded
off.
[2] LTIFR = The Lost Time Injury Frequency Rate is based on reported lost time
injuries on a rolling 12-month bases resulting in one day/shift or more off work
per 1,000,000 hours worked. LTIFR has been calculated for the whole company
including contractors
Health and Safety
The safety performance in terms of Lost Time Accident Frequency Rate (LTIFR)
has, during the first quarter, had a negative trend. By end of the quarter the
overall 12 month rolling LTIFR is at 25. Management and the Board are reviewing
the situation and further safety initiatives have been and will be implemented.
The Company policy is a safety target of “zero accidents – zero harm”.
Exploration
Base of Till sampling program started on 23.3.2015 at the NE corner of Kuittila
tonalite. By March 31 a 133 samples have been collected. The sampling target for
2015 is 2,000 samples.
Diamond core drilling at Rämepuro South was completed during Q1. The drilling
did target to the Southern part of the Pit and on the possible extension of
mineralisation towards South. In total 36 diamond drill holes with a combined
length of 1,710 meters were drilled. Assay results and interpretation are
pending.
Diamond core drilling at Korvilansuo commenced immediately after completion of
the Rämepuro drilling. As a first step, six diamond drill holes with a combined
length of 680 meters have been planned on wet bog areas targetting to the NE
continuation of the known mineralisation.
Karelian Gold Rush
Endomines Exploration Challenge was launched on March 2nd at PDAC2015 conference
in Toronto, Canada. Endomines will publish all relevant geological data from the
Karelian Gold Line to the competition. Anybody can participate in the
competition by analysing the exploration data and by proposing new exploration
targets. Registration opens on September 1st and the data will be published on
November 4th at FEM2015. Competition will be closed on January 15th, 2016 and
the winners will be announced in March 2016 at PDAC2016 conference. Winning
exploration target proposal will receive a prize of 40,000 €.
The aim of the competition is to challenge the mining community to innovative
and out-of-box thinking in order to come up with new ideas for exploration
targets and models.
Environment
All operations have been run in accordance with the existing environmental
permit.
Personnel
By the end of the reporting period the number of personnel was 69 employees. The
contractors working at the Pampalo Gold Mine had 25 employees.
Realised gold price hedges
Realized gold price hedge during the quarter amounted to -11.3 MSEK (-4.0). The
accumulated total payments due to the gold price hedges from June 2011 to March
2015 amount to 138 MSEK.
Changes in Board
The Annual General Meeting in April resolved that the Board of Directors should
consist of five members. Staffan Simberg, Meg Tivéus, Stefan Månsson and Rauno
Pitkänen were re-elected as members of the Board of Directors. In addition
Staffan Simberg was re-elected as chairman of the Board. Mati Sallert had
declined re-election. Ann Zetterberg Littorin was elected as a new Board member.
Outlook for 2015
The production guidance for 2015 is approx. 700 kg gold.
Financial Calendar 2015
Full quarterly reports in Swedish as well as a summary report in English are
released as follows:
· Q2 2015 on August 13
· Q3 2015 on October 29
In addition key production results are published on the 5thworking day at the
latest after each calendar quarter end.
For further information. please contact:
Markus Ekberg
CEO of Endomines AB
tel. +358 40 706 48 50
or visit the Company´s home page: www.endomines.com
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Endomines AB discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The
information was submitted for publication at 08:45 CEST on April 27, 2015.
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About Endomines:
Endomines conducts exploration and mining business along the 40 kilometer long
Karelian Gold Line. Through various regulatory approvals, Endomines controls the
exploration rights to this entire area.
The Company’s first mine, Pampalo, started in February 2011. During 2014,
Endomines initiated the production of ore from the mine in Rämepuro and is
planning to start mining of the gold deposit in Hosko. The ore from satellite
mines will be processed in the centrally located mill at Pampalo.
The Company’s business practices and mining operations are based on sustainable
principles and on minimizing the impact on the environment.
Endomines applies SveMin's & FinnMin's respective rules for reporting for public
mining & exploration companies. The Company has chosen to report mineral
resources and ore reserves according to the JORC-code, which is the
internationally accepted Australasian code for reporting ore reserves and
mineral resources.
Endomines vision is to participate in the future structural transformation and
consolidation of the Nordic mining industry. The Company may therefore be
involved in acquisitions of interesting deposits or companies, should such
opportunities arise.
The shares of Endomines AB are quoted on NASDAQ Stockholm under ticker ENDO and
on NASDAQ Helsinki under ticker ENDOM. The Liquidity Provider in both Stockholm
and Helsinki is Erik Penser Bankaktiebolag.
SUMMARY OF INTERIM REPORT JANUARY – MARCH 2015
| Source: Endomines AB
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