Gold Mining News Hubb
Advertisement
  • Home
  • Gold News
  • Mining News
  • Contact us
No Result
View All Result
  • Home
  • Gold News
  • Mining News
  • Contact us
No Result
View All Result
Gold Mining News Hubb
No Result
View All Result
Home Gold News

Endeavour may sell Burkina Faso mines as national security deteriorates

admin by admin
March 10, 2023
in Gold News


Sebastien de Montessus, president and CEO, Endeavour Mining

ENDEAVOUR Mining is prepared to sell its Burkina Faso mines with the firm’s CEO Sébastien de Montessus describing assets in the West African country as “non core”.

Commenting in the firm’s 2022 results presentation on Thursday, De Montessus said the Boungou and Wahgnion mines will make a lower contribution as new projects were brought on line.

Boungou and Wahgnion contributed a combined 240,000 ounces or 17% of 2022 gold production. Both reported a net decline in reserves.

For the 12 months ended December 31, Endeavour took an $360m impairment driving the company into a $1.04 per share headline loss. Of these impairments $197m related to Wahgnion and $163m to Boungou. Adjusting for one off items, net earnings came in at $405m for the year or $1.63 per share.

Endeavour’s attitude is that it would seek to divest one or both of the mine in order to maintain the group’s quality of the portfolio and increase geographic diversification.

Security in Burkina Faso has deteriorated in the last three years amid increased attacks by Jihadist organisations. Last year, Endeavour suspended exploration beyond Boungou’s mine boundary about three months after the first of two coups.

In January, France announced it was withdrawing military support from Burkina Faso within the month. Burkinabe prime minister Apollinaire Kyelem de Tambela had said earlier Russia had become a “reasonable choice” of ally. “We think our partnership has to be strengthened,” he said.

“The potential sale of these two assets, in our opinion, could provide Endeavour with a multiple uplift through reduced Burkina Faso exposure,” said Raj Ray, an analyst for BMO Capital Markets. Endeavour’s exposure to Burkina Faso would reduce to 29% of net present value compared to 40% current were the sales completed, he said.

“In a potential divestment scenario, the realisable value could be lower than our carrying value for the two assets, but Endeavour should get a multiple uplift from reduced Burkina Faso exposure,” said Ray.

Endeavour has targeted gold production of between 1.33 to 1.43 million ounces for the current financial year following output of 1.4 million ounces for 2022. All in sustaining costs of between $940 to $995/oz has been forecast. AISC last year was $928/oz.

Endeavour paid a final $200m dividend taking the total cash payout to $300m. Including share buy-backs, the total shareholder return for 2022 was $399m.

The Toronto- and London-listed gold producer is spending $400m this year alone expanding its Sabodala-Massawa mine in Senegal and building the 200,000 oz a year Lafigué project in Côte d’Ivoire with first output due in the third quarter of the 2024 financial year.

Tanda-Iguela, another Côte d’Ivoire mine was described by De Montessus last year as “one of the most significant” new gold resources in West Africa.



Source link

Previous Post

Le directeur général de Petroguin animera le débat sur le développement énergétique et l’investissement lors de la conférence MSGBC 2023

Next Post

Indigenous-owned firms win contracts for BHP’s Jansen project

Next Post

Indigenous-owned firms win contracts for BHP’s Jansen project

Recommended

Biggest European rare earths deposit found in Sweden

January 15, 2023

Northam Platinum dangles prospect of Styldrift expansion if RBPlat bid succeeds

November 13, 2022

Don't miss it

Gold News

Gov Ikpeazu sacks several aides

March 31, 2023
Mining News

Visualizing the Flow of Energy-Related CO2 Emissions in the U.S.

March 30, 2023
Mining News

India to start exporting coal by 2026

March 30, 2023
Gold News

Gemfields warns recessionary pressures may dampen sales after record 2022

March 30, 2023
Gold News

Time to Break the Deadlock on TotalEnergies’ Offshore Gas Deal

March 30, 2023
Gold News

FEC approves N41bn for construction of centre of excellence, hospital in Rivers

March 30, 2023
gold mining-66

© Gold Mining News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Gold News
  • Mining News
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • Gold News
  • Mining News
  • Contact us

© 2022 Gold Mining News Hubb All rights reserved.