Endeavour Mining, the London-based gold-mining company, has announced that it expects an increase in gold production this year, primarily due to the early start-up of a new mine. The company also revealed that it successfully met its output targets for last year.
Fourth-Quarter Production Results
During the fourth quarter, Endeavour Mining reported that its gold production remained flat compared to the previous quarter, with an output of 280,000 ounces. The all-in sustaining cost (AISC) per ounce was approximately $936. While there were anticipated decreases at the Hounde mine in Burkina Faso, there were corresponding increases at the Sabodala-Massawa mine in Senegal and the Mana mine in Burkina Faso.
Gold Production for 2023
In 2023, Endeavour Mining’s gold production decreased by 8% compared to the previous year, reaching 1.07 million ounces on a continuing basis. The AISC for the year was $964 per ounce. When considering the total production, including Sabodala-Massawa and Mana, the figure stood at 1.17 million ounces. Although this was within the guidance range for continuing production, it exceeded the AISC target range.
Positive Update on Lafigue Operations
Endeavour Mining has revised its timeline for first production at the Lafigue operations in Ivory Coast. Originally scheduled for the third quarter, it is now expected in the second quarter. The company projects that Lafigue will contribute up to 110,000 ounces of gold in 2024.
Overall, Endeavour Mining is poised for growth in gold production, thanks to the swift commencement of its new mine and the positive performance of its existing operations in West Africa.
Expansion of Sabodala-Massawa on Track
The expansion of Sabodala-Massawa remains on budget and is scheduled to start in the second quarter. This expansion is expected to significantly increase the mine’s output by up to 36%, reaching 400,000 ounces in 2024.
Endeavour’s Production Guidance
Endeavour has provided production guidance for 2024, anticipating a range of 1.13 million to 1.27 million ounces. With the project start-ups planned for the second quarter, the all-in sustaining cost (AISC) is projected to be between $955 and $1,035 per ounce. The production is expected to be more weighted towards the latter half of the year, and the AISC is also anticipated to decrease in the second half.
Dividend Payout
The company has announced its plan to distribute dividends of $100 million for the second half of 2023. This brings the total dividend payout for the year to $200 million.
Investigation into Irregular Payment
An investigation into an irregular payment instruction for $5.9 million is currently ongoing. The payment was allegedly issued by former Chief Executive Sebastien de Montessus. The company stated that the investigation will be progressed as quickly as possible. De Montessus has denied any intentional misconduct.
At 0924 GMT, the shares are currently down 1.2% at 1,366.00 pence.
