"As a result of our disciplined focus, we have successfully delivered on our strategy and transformed the group into one of the top 10 global gold producers and the largest in West Africa."

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Sébastien de Montessus

PRESIDENT & CEO, ENDEAVOUR MINING

November 10, 2021

Endeavour successfully completed two acquisitions within one year. Could you comment on the integration process of the Sabodala-Massawa complex and the expansion work undertaken there?

We have been really pleased with how smoothly and quickly the Teranga assets were integrated into our West African operating platform.

Amongst our portfolio of seven mines across Cote d’Ivoire, Burkina Faso and Senegal, we believe the Sabodala-Massawa mine in Senegal has the most potential to be a long-life, low cost, top tier asset.

Earlier this year we approved the $20m Phase 1 expansion, which  will optimise the processing of the higher grade Massawa ore more efficiently and increase production by approximately 90kozpa. The expansion is progressing well and is on track for completion in Q4-2021.

We are busy finalising the feasibility study for the Phase 2 expansion which will enable us to process the high-grade refractory ore from the Massawa deposit with the addition of a bio-oxidation plant located adjacent to the current plant. We estimate this will increase production to above 400koz per year.

What is the rationale behind listing on the LSE, alongside the TSX, and what is the significance of this milestone for the company?

Our listing on the London Stock Exchange (LSE) was a natural next step for Endeavour given the evolution of our business over the past four years and our new size as one of the world’s largest gold producers.

We believed there was a gap in the market that Endeavour could fill - with the removal of Randgold, there were limited options on the LSE for investors seeking significant, diversified gold production exposure.

We chose to list on the premium segment of the LSE so we could benefit from the index inclusion and we were pleased to be included in the FTSE250 index in September 2021, just a few months after listing.

Since listing, we have gained access to a new, wider base of globally minded investors and a deeper pool of capital. This, in turn, has enabled us to attract UK generalist funds and we are starting to see some good daily trading volumes on the LSE.

Endeavour has consistently met yearly production guidelines, while operating at an AISC under US$900/oz. What are the key factors underpinning these strong economics?

Over the four past years, we have been focused on creating a resilient business centered around our four strategic pillars: operational excellence, project development, unlocking exploration value, and portfolio and balance sheet management. This has been underpinned by our core asset criteria of: a mine life of 10 years of more, production of more than 200,000 ounces per year and an AISC of below $900 per ounce over the life of mine.

As a result of our disciplined focus, we have successfully delivered on our strategy and transformed the group into one of the top 10 global gold producers and the largest in West Africa.

Our capacity to produce gold at low cost is further supported by the geological potential of West Africa, which is highly prospective and remains underexplored. With discovery costs significantly lower than the global average, we have concentrated on building high grade, low cost mines and discovering high grade resources.

Across our business we are focused on returns, particularly a +20% ROCE target, which underpins our business as a whole. In 2020, we successfully achieved this target across the business, and going forwards we hope to maintain this through our disciplined capital allocation framework.

Endeavour has developed a very robust organic project pipeline, with recently advanced PFS releases at both Fetekro and Kalana. Could you elaborate on your near-term exploration strategy?

Unlocking exploration value is an integral part of our strategy.  We have one of them largest and most promising portfolios on the highly prospective and underexplored Birimian Greenstone Belt in West Africa.

This part of West Africa ranks as number one globally for discoveries, with nearly 80 million ounces discovered in 10 years, and a total of 5 billion dollars spent, which accounts for approximately 10% of the global exploration budget. In 2020, this region received more exploration spend than all but Australia, Canada and the United States.

Since 2016, we have discovered 8.5 million ounces, at a cost of less than $25 per ounce, and consolidated our position on two world class belts, the Hounde Belt in Burkina Faso and the Ity Belt in Côte d'Ivoire.

With the new, recently acquired assets in our portfolio, our new 5-year exploration target is to discover 15-20 million ounces of Indicated resources over the next five years at an average cost of less than $25/oz.

A key focus area will be on extending the mines lives of Sabodala-Massawa, Wahgnion, Mana and Boungou to beyond 10 years to ensure they are contributing to our overall portfolio quality on a sustained basis.

Endeavour has embedded ESG targets within its compensation schemes. Why do you think it’s important to incorporate ESG measures into management and governance plans? How else is Endeavour driving ESG implementation?

ESG is at the heart of what we do every day as a responsible gold miner and one of the largest private employers in West Africa.

Our operations contribute to the revenues of the countries where we operate, as well as being vitally important to the people we employ and the communities that we call home.

Our integrated ESG strategy is centered around two strategic key pillars: investing in our host countries and protecting the environment. These are supported by high standards of ethics and governance.

On the social side, our priority areas are health, education, access to water and electricity, and economic development, including ECODEV, our impacting investing fund, which invests in industries outside of mining that support the broader national government economic agenda.

We have committed to a 30% reduction in emissions by 2030, as well as an ultimate goal of net zero by 2050, as part of our environmental strategy, which also includes a focus on water stewardship, biodiversity and reducing plastic waste.

In June 2021, we launched the Endeavour Foundation, which is our primary vehicle to implement our sustainability projects at the regional and national levels in the countries in which we operate.

Incorporating quantifiable ESG targets into our both the short- and long-term executive compensation schemes reinforces the importance of ESG to our business.

Why do you think gold companies are underrated by the public markets at the moment?

Falling gold prices earlier this summer impacted investor sentiment despite the recent consolidation, as well as the strong dividend payments and increasing ESG commitments we’ve seen in the industry.

We believe key to a re-rating of the sector is attracting generalist investors by focussing on shareholder returns, maintaining strong production levels and cash flow to support these payments, maintaining net cash positions, and mitigating risks well.

Investors today further expect that their investments both generate attractive returns and are sustainable and responsible, therefore showcasing responsible mining and ESG credentials will stay crucial.

Separately, it will also be crucial to show investors that gold is a good asset to hold in their portfolios; it is a vital asset that has a key role to play in renewable technologies and medical technologies. It will continue to be important in our everyday lives, and even more so as we move towards a post carbon world.

Secondly, gold is often viewed as a “safe haven” asset – a good one to hold in times of uncertainty which we have seen particularly during the first few months of the pandemic.

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