Endeavour Mining reopens Boungou, targets upper end of production guidance

Boungou mine, Burkina Faso

ENDEAVOUR Mining said its Boungou mine in Burkina Faso would achieve the upper end of production guidance this year following its re-opening after nearly a year in mothballs.

The mine was acquired in the May merger between Endeavour and SEMAFO. SEMAFO had in December last year shuttered Boungou following a deadly attack by jihadists in which 37 employees were killed and another 60 people wounded.

Guidance was put at between 130,000 to 150,000 oz in gold at an all-in sustaining cost of $680 to $725/oz.

Endeavour said it had identified potential annual synergies of between $35m to $40m during the integration of its assets with those of SEMAFO. The synergies, of which about 60% will be realised by year-end, were derived from procurement and supply chain optimisation, corporate and in-country general and administrative (G&A) activities, and the centralisation of technical services.

The reopening of Boungou is a substantial boost for Endeavour. The mine accounts for about 15% of asset net present value, according to BMO Capital Markets in a report today. Boungou will also comprise 18% of Endeavour’s 2021 production which is expected to top one million oz.

“In addition to the significant procurement, supply chain and G&A savings, we are also seeing the benefits of softer synergies that arise from being the largest gold producer in Burkina Faso, such as a further strengthening of our partnership with the government and an enhanced ability to manage risks across the business,” said Endeavour CEO, Sebastién de Montessus in a statement.