Endomines brings forward start of Selective mining, slightly reduced production in 2015/ received a waiver from Nordea for breaches of loan covenants
Production guidance and Selective Mining
The previously announced start of Selective Mining in early 2016 has, for practical reasons, been brought forward. This will slightly decrease the 2015 annual production from the previously announced production guidance of 550-600 kg of gold. The co-operation negotiations have been concluded and about 50 % of the Pampalo mine operational personnel have been temporarily laid off from latest today’s date. Endomines will, as normal, release its quarterly production update early January 2016.
During 2016 the Company expects to produce approximately 300 – 350 kg gold from its Pampalo mining operations.
Production in 2016 will be based on the selective mining principle. During 2016, the Company intends to mine and process approximately 125,000 tonnes of high-grade ore. Mining will therefore be concentrated to previously known, as well as in 2015 discovered high-grade areas. The reduced mine tonnage will be processed in campaigns, approximately for 7-10 days per month. The Pampalo underground mine will operate continuously, however only during weekdays.
The Company expects these changes to the mining and processing schedule, including the temporary lay-offs of personnel, to improve the profitability of its Pampalo Gold mine operations. Cash Cost is estimated to be reduced below the current and forecasted gold price level.
Financial covenants
Due to the lower than planned gold volume Endomines will be in breach of its financial covenants for the full year 2015. The lender Nordea Bank has waived the above mentioned covenant breaches. Finnvera as guarantor has given its consent to this waiver. Other terms and conditions in the loan agreement remain thereby unchanged. Total bank loans as of today amount to about 68 MSEK (7,290 KEUR) and agreed amortizations will start in 2018.
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
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 CET on December 21, 2015.
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. The ore from satellite mines will be processed in the centrally located mill at Pampalo.
The Company’s 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.
This news release may contain forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking
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