Endeavour increases 2021 production guidance by 50%

Endeavour increases 2021 production guidance by 50%

Endeavour Mining has increased its guidance for 2021 to include production from the recently integrated Sabodala-Massawa and Wahgnion mines.

This follows the completion of the Teranga Gold Corporation acquisition.

Consolidated 2021 production guidance for continuing operations has increased from 900,000 – 990,000 ounces to 1,350,000 – 1,475,000 ounces, while consolidated AISC guidance has decreased by $40/oz to $840 – $890/oz.

The change reflects the inclusion of the Sabodala-Massawa and Wahgnion operations from February 11, 2021, which results in the addition of 450,000 – 485,000 ounces of production at AISC of below $900/oz for the 11-month period.

In addition, Endeavour is progressing with the two-phase expansion project at the Sabodala-Massawa mine to unlock the value of the Massawa deposits. The first phase, which is expected to increase production by approximately 90 kozpa, has commenced and is expected to be completed by year-end.

Following the positive outcome of the 2020 Pre-Feasibility Study (PFS) for the second phase, which outlined the potential to increase production to above 400koz per year, a Definitive Feasibility Study (DFS) is underway and is expected to be completed by year-end.

Sébastien de Montessus, President & CEO, comments:

“Today’s updated 2021 guidance confirms our position as a senior, low cost, global gold producer and re-affirms our confidence in the potential of the newly acquired mines.

“The integration of the Sabodala-Massawa and Wahgnion mines is progressing well as we remain focused on optimizing operations and delivering on the anticipated synergies.

“We are therefore moving forward with the Phase 1 expansion at the Sabodola-Massawa mine, which is the first stage in unlocking value from the large, high grade Massawa deposits, and in parallel we are advancing the DFS on Phase 2 and ramping-up exploration.

Given the significant potential within our portfolio, our sole strategic priority is to unlock value organically through mine life extensions, asset optimization initiatives, and by advancing our brownfield and greenfield projects through studies and further exploration.

“As such, investment in exploration remains a core focus and consequently we have increased our 2021 budget to $70-90 million, one of the largest in West Africa, with 40% allocated to greenfield exploration.

“Our corporate efforts continue to be focused on maximizing shareholder returns, with the goal of augmenting our shareholder return program, which may include increasing our dividend or initiating a share buyback program as part of our capital allocation framework.

“In addition, we are on track to obtain a listing on the Premium segment of the London Stock Exchange in late Q2-2021, which we believe will boost investor appeal.”

NewsSource: miningreview

LEAVE A REPLY

Please enter your comment!
Please enter your name here