Endeavour Mining posts record Q4 production as SEMAFO, Kari Pump contribute

ENDEAVOUR Mining reported a 41% improvement in fourth quarter production of 344,000 ounces of gold compared to the previous quarter – enough to take full-year gold output to 908,000 oz, 39% higher year-on-year.

The numbers reflect the incorporation of SEMAFO, the Canadian firm Endeavour bought in May last year. There is, though, more production growth to come.

Endeavour is hoping to conclude the purchase and integration of Teranga Gold Corporation by the close of the first quarter which will take production far beyond the current guidance for 2021 of between 915,000 to 1.01 million oz. This guidance included the sale of Agbaou mine in Côte d’Ivoire to Allied Gold announced by the company last week.

Speaking last year, Sébastien de Montessus, CEO of Endeavour, said the incorporation of Teranga Gold would take the group’s production to 1.5 million oz/year and see Endeavour rank in the top 10 of gold mining firms globally.

He said outlined today the key features of 2021 which, in addition to the combination with Teranga, would also see the listing of Endeavour on the London Stock Exchange. Before that, the company would pay its maiden dividend with a view to updating its payout policy once it had net cash of $250m.

Some $600m in net debt had been removed last year, partly owing to the improvement in the gold price. The company would also focus on its organic pipeline suggesting that a line had been drawn under additional M&A.

In addition to SEMAFO’s contribution, fourth quarter production was assisted by the first production from the Kari Pump deposit at Houndé in Burkina Faso, one of Endeavour’s key assets.

“In spite of the challenges presented by the global pandemic, we are proud to have achieved our annual production and all-in sustaining (AISC) guidance for the eighth consecutive year,” said De Montessus.

Shares in Endeavour Mining gained nearly 3% in early trade on the Toronto Stock Exchange. The company has a market capitalisation of C$4.45bn.