Endeavour Mining’s gold output in 2023 met the miner’s targets, while all-in sustaining costs came in above the guided range. For 2024, it sees production increase as much as 19% given the start-up of production at the Lafigue project in Ivory Coast and the expansion of the Sabodala-Massawa mine in Senegal. Here’s what the London-based gold miner had to say.
On production:
Endeavour Mining had targeted production between 1.06 million and 1.135 million ounces in 2023.
“4Q production from continuing operations amounted to 280,000 ounces and was flat over 3Q as the anticipated decrease at Hounde [in Burkina Faso] was offset by increases at Sabodala-Massawa–albeit by less than anticipated due to the lower grades encountered in the Sabodala pit as it enters its final phase of mining–and Mana [in Burkina Faso], while Ity [in Ivory Coast] remained flat.
2023 production from continuing operations amounted to 1.07 million ounces, which represents a decrease of 89,000 ounces or 8% over the 1.16 million ounces produced in 2022 due to lower production at Mana and at Sabodala-Massawa, while both Hounde and Ity achieved record annual production.”
On all-in sustaining costs:
Endeavour Mining had guided for AISC between $895 and $950 per ounce in 2023.
“2023 AISC from continuing operations increased by $114 an ounce, from $850 an ounce in 2022 to approximately $964 an ounce in 2023, as AISC increased at Hounde, Mana, Sabodala-Massawa and at Corporate, in addition to a $15 an ounce increase in royalty costs, which was partially offset by decreased AISC at Ity.
[4Q] AISC decreased by $31 an ounce or 3.2% over 3Q to approximately $936 an ounce despite a $24 an ounce increase in royalty costs linked to the higher realized gold price and the impact of the change in the sliding scale royalty rates in Burkina Faso, which came into effect in November 2023.
The [4Q] AISC benefited from reductions at Sabodala-Massawa and Mana, which was offset by the increase at Hounde while Ity remained flat.”
On guidance:
“The production guidance for 2024 amounts to 1.130 million-1.27 million ounces which marks an increase of up to nearly 200,000 ounces or 19%… which is largely due to the commissioning of the Sabodala-Massawa expansion and the Lafigue projects in 2Q 2024.
The AISC is expected to remain consistent with that achieved over recent quarters at an industry-low $955-1,035 an ounce.
Group production is expected to be more heavily weighted towards 2H while AISC is also expected to be lower in 2H as the group’s organic growth projects are expected to significantly increase the quality of Endeavour’s portfolio.
Total mine capital expenditure for 2024, consisting of both sustaining and non-sustaining capital spend, is expected to be approximately $315.0 million, which marks a decrease of $32.7 million or 9% compared to the 2023 expenditure.
Growth capital spend for 2024 is expected to amount to approximately $245.0 million, which marks a decrease of $202.1 million or 45% compared to the 2023 expenditure of $447.1 million. The 2024 expenditure is expected to consist of approximately $75.0 million of remaining growth capital for the Sabodala-Massawa expansion project and approximately $170.0 million of remaining growth capital for the Lafigue project.
Exploration will continue to be a strong focus in 2024 with a company-wide exploration budget of $65.0 million. For 2024, approximately $15.0 million will be spent on the highly prospective Tanda-Iguela property in Ivory Coast, which already ranks as one of the most significant discoveries made in West Africa over the last decade.”
Write to Christian Moess Laursen at christian.moess@wsj.com
