Endeavour Mining pours first gold at Senegal mine expansion

Endeavour Mining (LSE: EDV; TSX: EDV) reported on Monday it poured first gold at its Sabodala-Massawa mine in Senegal 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 1.1 million to 1.2 million oz. of gold.

Lawrence Manjengwa, vice president and head of operations at Sabodala-Massawa, holds the first gold bar from the expansion. Credit: Endeavour Mining

Lawrence Manjengwa, vice president and head of operations at Sabodala-Massawa, holds the first gold bar from the expansion. Credit: Endeavour Mining

Lawrence Manjengwa, vice president and head of operations at Sabodala-Massawa, holds the first gold bar from the expansion. Credit: Endeavour Mining

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.

“This is a testament to the quality of our projects team and the competitive advantage we have in West Africa,” CEO Ian Cockerill said in the statement.

The $290 million Sabodala-Massawa BIOX expansion is the fourth capital project Endeavour has completed in the last 10 years.

The gold miner is starting to shift focus to delivering its Lafigué project in Côte d’Ivoire. This is expected in the coming weeks, which will be a full quarter ahead of schedule.

The Senegal news injects some positivity into Endeavour Mining’s recent history, which was tainted by the firing earlier this year of former president and CEO 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.

Endeavour shares were up 1.5% to $29.58 apiece on Monday morning, valuing the company at $7.2 billion. Its shares have traded in a 52-week range of $21.11 and $37.10.