An African Miner Riding High On Gold
You can look at almost any metal miners chart and see the same thing over and over again. Stock price stuck at the 52 week low mark or just skidding sideways with lack of trading volume and in so many cases, a lack of NO NEWS. However there are a few miners out there that are bucking that trend. Today we take a quick look at a miner that although their stock price is way down from previous years, the price today is riding high. In 2007 the stock price for this company was over $10. Today however it can be bought for a mere 70 cents.
Endeavour Mining Corp EDV is a mid tier miner with four mines in Africa. These mines are located in Cote d'Ivoire, Ghana, Mali and Burkina Faso and are currently producing gold at a combined rate of 500,000 ounces per year. There is also the potential to add an additional 190,000 ounces per year by developing the fully permitted Hounde project in Burkina Faso.
Exploration programs continue to add more reserves to existing deposits. Exploration is focused on mine sites principally at Agbaou, Tabakoto, Segala and Kofi. A 2015 exploration program is underway with a budget of $4.6 million. This work program includes 7,500 m of core and 22,500 meters of RC drilling testinga total of eight target areas. Betea is the next deposit to receive work on improving classification and conversion to mineral reserves (mineral resources are currently 169,000 ounces Indicated and 385,000 ounces Inferred).
Endeavour Mining issued news today via press release stating: that they had gold production of 124,893 ounces during the third quarter of 2015 and nine-month production of 379,802 ounces. For the nine months, the Agbaou, Nzema and Youga mines are all ahead of the midpoint of their production guidance ranges. Nzema maintained its production levels despite a temporary drop in the grade of the purchased ore. The Tabakoto mine experienced several extreme rainfalls in the latter part of the quarter. This affected overall operation, in particular production from the North and South sections of the Tabakoto underground mine, reducing the grade of the material delivered to the mill and dropped production below targeted levels.
With that news the stock was active today and it looks like Endeavour may have turned a corner this metals bear market. Endeavour has around 413 million shares O/S at this time
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