Endeavour will spend a median of $80 million a 12 months and it expects to add the sources at a value of lower than $25 per ounce, effectively beneath West Africa’s producers’ common of $74/ouncesand the worldwide imply of $83/oz.
The miner, one of many world’s high 10 gold producers, stated it sees most potential at its Ity mine in Cote d’Ivoire, the place it’s concentrating on an output of between 3.5-4.5 million ounces of gold by the tip of 2025.
The opposite main contributors will probably be Houndué in Burkina Faso (3-4 million ounces anticipated), Sabodala-Massawa in Senegal (2.3-2.7Moz) and Wahignion (1.5-2Moz).
“Whereas we see vital alternatives throughout our portfolio, we’re notably happy with the potential outlined at our flagship mines — Sabodala-Massawa, Hounde and Ity,” chief government officer Sebastien de Montessus stated in an announcement.
“We consider these mines have the potential to be Tier 1 property with over 10 million ounces useful resource endowment, inclusive of historic manufacturing.”
Endeavour’s boss stated the corporate can be “very happy” to show the alternatives recognized at its latest property, which it obtained by means of the acquisition of Teranga Gold less than a year ago. Montessus stated they have the potential to develop Endeavour’s present sources by as a lot as 60%.
“Daring”
BMO Metals analysts Raj Ray stated the goal of 15-20 million gold ounces goal may doubtlessly translate to 10-14 million gold ounces in reserves, given Endeavour has traditionally achieved a useful resource to reserves conversion price of about 70%.
In a observe to traders, Ray described Endeavour’s natural development plan as “daring”. He added that whereas it was nonetheless early days by way of hitting its goal, BMO sees “vital exploration potential inside the firm’s asset portfolio.”
Endeavour has added 8.5 million ounces of sources over the previous 4 years. Moreover Teranga, the corporate additionally bought smaller rival Semafo last year.
In a separate launch, the firm introduced the launch of an offering of fixed-rate senior notes due 2026 in addition to the entry into a brand new revolving credit score facility.
The proceeds of the notes will probably be used to repay all quantities excellent beneath the group’s $370 million bridge time period mortgage facility, which was used to retire larger price debt services acquired upon the acquisition of Teranga Gold; to repay the $130 million drawn beneath the group’s current revolving credit score facility (RCF), and to pay charges and bills in reference to the providing of the notes.