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Endeavour Mining eyes new cash generation phase as two projects enter commercial production

Published 13/09/2024, 08:56
© Reuters Endeavour Mining eyes new cash generation phase as two projects enter commercial production
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Proactive Investors - Endeavour Mining PLC (LON:EDV) told investors it has now entered commercial production at both the Sabodala-Massawa BIOX Expansion in Senegal and the Lafigué mine in Côte d'Ivoire.

The projects, which were completed on budget and on schedule, represent key milestones in the company’s growth strategy. The commercial production threshold was passed in August, it noted.

The BIOX Expansion, part of the Sabodala-Massawa mine, achieved 94% plant availability and operated at 80% of its nameplate capacity during July and August 2024, with recoveries above 72%.

The Lafigué mine also performed well, operating at 87% plant availability and 72% of nameplate capacity in August 2024, achieving a gold recovery rate of 95%.

Endeavour said it remains on track to meet its full-year production guidance, with all-in sustaining costs (AISC) expected to be near the top end of the previously guided range.

Chief executive Ian Cockerill described it as a significant milestone, highlighting that it moves the company into a phase of free cash flow generation that will support enhanced shareholder returns.

“We are pleased to have achieved commercial production at both of our organic growth projects, fully de-risking construction and ramp-up activities,” he said.

“Both projects will drive stronger operating performance in the second half of the year, underpinning our group production guidance, while adding low-cost production, extending mine life visibility, and increasing the geographic diversification of the portfolio.”

Cockerill added: “We will now transition the team to focus on our asset level optimisation initiatives and technical studies, ahead of our next growth phase, with the construction of the potential tier one Assafou project from 2026.

The Sabodala-Massawa mine, acquired by Endeavour in 2021, includes both non-refractory and refractory ore processing. Endeavour owns a 90% stake in the mine, with the remaining 10% held by the Government of Senegal.

The Lafigué mine is 80% owned by Endeavour, with the remaining stakes held by the Ivorian government and a state-owned mining company.

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