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Endeavour extends LOM and increases production outlook

Endeavour Mining has significantly extended the mine lives and increased the production outlook at its flagship assets, the Houndé mine in Burkina Faso and the Ity mine in Côte d’Ivoire.

This follows recent near-mine exploration success.

The mine plans have been developed with a focus on sustaining a 250 koz per year production profile to provide long-term cash flow visibility ahead of implementing a dividend policy.

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The combined annual production of both mines is expected to average approximately 500 koz over the next five years (2021-2025) and 465 koz over the next 10 years (2021-2030).

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The Company expects that near-mine exploration will continue to add further ounces and generate the flexibility to bring forward higher grade production while maintaining long mine life visibility.

In addition, Endeavour will continue to monitor its impact on the environment and seek to improve its environmental impact metrics to continue to be better than industry average.

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Sebastien de Montessus, President and CEO of Endeavour Mining, says:

“Having successfully built and operated the Houndé and Ity mines over the past few years, we are delighted to be able to present updated mine plans which confirm the value unlocked through exploration and which demonstrate the high quality of these assets.

“Moreover, we have continued to refine the individual mine plans with a focus on providing long-term cash flow visibility ahead of implementing a dividend policy.

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“With the combined addition of more than 2 Moz of higher grade reserves from the newly discovered deposits, we have been able to both increase production and extend the mine lives of Houndé and Ity.

“We are very pleased with the value created as our discovery cost per ounce of reserves has averaged below $25 since 2017, whereas the mine plans show that our combined all in sustaining cost of production over the next five years is below $850/oz, therefore generating significant returns on exploration.

“We believe that exploration potential exists at both mines to sustain production at 250 kozpa beyond the current life of mine plans. We expect further reserves additions in the coming months with maiden reserves expected at the Kari Center and Kari Gap discoveries.

“In addition, given the strong value creation potential, we will continue to have a strong focus on exploration at both operations given the numerous identified near-mill targets.”