Endeavour Mining Corp (TSX:EDV) (OTCQX:EDVMF) (FRA:E5Y1) said it has increased its production guidance for 2021 to include production from the recently integrated Sabodala-Massawa and Wahgnion mines in West Africa following the completion of its acquisition of Teranga Gold Corporation.
The gold producer said consolidated 2021 production guidance for continuing operations has been increased to between 1.35-1.475 million ounces from between 900,000-990,000 ounces while consolidated all-in sustaining costs (AISC) guidance has decreased by $40 per ounce to between $840-$890 per ounce.
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Endeavour said the change reflects the addition of 450,000-485,000 ounces of production from the Sabodala-Massawa and Wahgnion operations from February 11 at an AISC of below $900 an ounce for an 11 month period.
Additionally, the company said it is progressing with a two-phase expansion project at the Sabodala-Massawa mine to unlock the value of the Massawa deposits.
The first phase of this, which is expected to increase production by about 90 kilo-ounces (koz) per annum, has commenced and is expected to be completed by year-end. Meanwhile, the company said following the positive outcome of a 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.
“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 Sabodala-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,” Endeavour president and chief executive Sébastien de Montessus said in a statement.
“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,” he added.
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