January 30, 2012 / 4:18 PM / 6 years ago

UPDATE 1-Endeavour's Q4 output falls, costs to rise in 2012

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Jan 30 (Reuters) - Endeavour Mining Corp reported a sequential fall in fourth-quarter gold production and said it expects cash costs to rise this year.

Endeavour, which operates the Youga mine in Burkina Faso And the Nzema mine in Ghana, said gold production for the fourth quarter fell 9 percent from the prior quarter at the Nzema mine and 10 percent at the Youga mine as it mined lower grades of ore.

Endeavour expects to produce 170,000 to 190,000 ounces of gold in 2012, compared with 177,290 ounces of gold produced in 2011.

It also expects output to exceed 250,000 ounces per year by the end of 2013 as its Agbaou property in Côte d’Ivoire starts producing.

Cash costs are likely to rise to between $645 and $685 per ounce in 2012 from $614 per ounce in 2011, due mainly to increased drilling and higher fuel costs, the company said in a statement.

The miner also set an exploration budget of $30 million for the year.

Shares of Endeavour were up 2 Canadian cents at C$2.52 on Monday morning on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Sreejiraj Eluvangal)

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