Endomines - Focus on ramp-up
Endomines did not sell any gold concentrate from Friday in Q1. Design capacity at Friday is sought to be reached in Q2, although impacts of the COVID-19 pandemic may cause delays. No numeric production guidance was given. 3,700 tonnes of ore at 5.7g/t grade mined during Q1. EBITDA lower than our expectations at SEK -27.8m (Evli -13.6m).
- Endomines did not sell any gold concentrate from Friday in Q1. An agreement for the sale of gold concentrate was signed and the first shipment of gold concentrate from the Friday mine was done in May.
- Revenue in Q1 amounted to SEK 3.0m, with our estimates at SEK 3.1m.
- EBITDA in Q1 was at SEK -27.8m, below our estimate of SEK -13.6m following higher than expected costs.
- At the processing facility at Friday Endomines was able to operate at a rate of 36 tonnes per day. Ramp up to design capacity (3,445 tonnes per month) continued. The goal is to reach design capacity during Q2, however, the COVID-19 pandemic poses some challenges with staff and part availability and continued effects of the pandemic may postpone the reaching of design capacity. Endomines has mined approximately 3,700 tonnes of ore at a grade of 5.7 g/t at Friday in Q1.
- Endomines did not yet give any numeric production guidance for 2020.
- Liquid assets amounted to SEK 1.3m at the end of the quarter. After the quarter Endomines raised SEK 81m net proceedings through the issuance of two loans and a directed share issue.
- An agreement with Transatlantic Mining was signed after Q1 to buy US Grant Mine and mill and the Kearsarge Gold Project.