Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Endeavour Mining (LON, TSX: EDV) reported on Monday it poured first gold from its Senegal mine expansion on April 18, marking the successful delivery of the BIOX expansion project on schedule and on budget.
The miner, backed by Egyptian billionaire Naguib Sawiris, said the milestone was achieved two years after construction began, adding the company is on track to achieve its 2024 output guidance of 1.13 million to 1.27 million ounces of gold.
Commercial production at the expansion project is expected late in the second quarter and it will ramp up to its nameplate capacity of 1.2 million tonnes a year in the third quarter.
The $290 million Sabodala-Massawa BIOX expansion is the fourth capital project Endeavour Mining has completed in the last ten years.
“This is a testament to the quality of our projects team and the competitive advantage we have in West Africa,” chief executive Ian Cockerill said in the statement.
The gold miner is starting to shift focus to delivering the Lafigué project, in Côte d’Ivoire. This is expected in the coming weeks, which it will be a full quarter ahead of schedule.
The news injects some positivity into Endeavour Mining’s recent history, which was tainted by the firing earlier this year of former president and chief executive officer Sébastien de Montessus for serious misconduct.
The announcement also follows accusations of misrepresentation over the sale of two African gold mines, Wahgnion and Boungou in Burkina Faso, as the fallout from the tenure of the ousted executive continues.
