Endomines - Pampalo progress, Friday challenges
Ramp-up of ore development and processing at Friday continues but mining was temporarily halted due to a need to conduct further underground definition drilling. Pampalo is progressing well, with the first batch of concentrate delivered and full production capacity seen in Q1/22.
- Revenue in Q4 amounted to SEK 3.2*m, below our estimate of SEK 17.3m. The company fell short of its earlier production guidance of around 1,200oz, with production of 460.3oz, at a head grade of 2.89g/t.
- EBITDA in Q4 was at SEK -41.6m*, below our estimate of SEK -28.0m given the lower revenue.
- EBIT in Q4 amounted to SEK -121.4m* (Evli SEK -33.7m), including larger write-downs on the Friday project.
*Figures derived from Q1-Q3 and H1 figures - During Q4, at Pampalo, ore production from the mine reached mine development started. The decline reached target levels in September. The mill was refurbished and tested in December and the first concentrate was delivered in January.
- Ramp up and ore processing continued at Friday. Ramp up was delayed by a need to conduct underground definition drilling due to ore irregularities. The production guidance for 2022 is as such under review and can be updated once new resource estimates have been completed.
- Production guidance for 2022: The Pampalo mine and mill are expected to reach full production capacity during Q1/22. When in full production the annual gold production is expected to be 10,000 to 11,500oz. The production guidance for Friday is under review.