Ivanhoe’s Kipushi zinc mine in DRC officially reopens
The restart marked exactly a century since the mine first went into production.
Today was a good day for two West African gold miners with head offices in Canada.
Endeavour Mining (TSX:EDV) declared commercial production at their Agbao mine in Côte d’Ivoire, which is that company’s fourth gold mine in West Africa.
Ivorian Prime Minister Mr. Daniel Kablan Duncan was on hand for the ribbon cutting ceremony and convention signing which confirmed Endeavour’s expectations for taxes and royalties when they set out to build the mine in 2012. Endeavour is now planning on 400,000 ounces of gold production for 2014 with cash costs of under $1000 per ounce. Agbao also came under its $160 million proposed budget, was completed ahead of schedule, and safely, according to founder and CEO Neil Woodyer.
Nearby in Burkina Faso, True Gold Mining (TSXV:TGM) received its exploitation (mining) permit for its Karma gold project which shows positive economics at today’s gold price. The company also filed its Karma feasibility study on SEDAR, and with the help of Barclays and Societe General, are expected to be able to fully finance their first mine for a production start sometime in late 2015.
Mark O’Dea was right when he said “West Africa is now the world’s low risk mining jurisdiction.”
These are two gold miners delivering on expectations in a region which welcomes them.
Disclosure: I am long EDV.
