Endomines - Concentrate production missing in Q1
Endomines’ revenue and EBITDA in Q1 amounted to SEK 2.1m (Evli 8.0m) and SEK -11.5m (Evli -3.9m) respectively, below our estimates mainly due to our estimates not accounting for the processing plant damage during Q1 and revenue only generated from sale of remaining Pampalo concentrate. No gold concentrate was produced at Friday in Q1 but production is expected to commence in Q2.
- Endomines did not produce any gold concentrate in Q1. The revenue was generated by sales of remaining Pampalo gold concentrate. Gold concentrate production at Friday has been delayed due to damage to the tailings area of the processing plant. Concentrate production is expected to commence in Q2.
- Revenue amounted to SEK 2.1m (29.4m in Q4/18), below our estimates of SEK 8.0m due to our estimates not having accounted for the processing plant damage.
- EBITDA in Q1 was at SEK -11.5m, below our estimates of SEK -3.9m, mainly due to the lower revenue.
- Friday’s processing plant repairs expected to amount to USD 400,000 and to take four to six weeks to complete.
- Guidance reiterated: Annual gold production at the Friday mine in Idaho, USA, is expected to be approximately 9,000oz at a cash cost of 650-900 USD/oz, depending on the area of production, over the life time of the mine. Endomines anticipates production of 5,000 – 8,000oz gold (~156-249kg) in concentrate during the year.