Endeavour Mining (TSX: EDV), West Africa’s top gold producer, has resumed operations at its Boungou mine in Burkina Faso, a year after previous owner Semafo decided to shut it down following an attack that killed 39 civilians.
The Toronto-listed miner said the reopening of the mine follows infrastructure improvements and a new security plan developed in “close partnership” with Burkina Faso’s government.
Endeavour, which acquired Semafo in July, has confirmed potential synergies of US$35-$40 million during the integration process. About 60% of the benefit would be progressively unlocked by the end of 2020 and the remaining in 2021, the miner said.
“The newly acquired assets are now well embedded into our West African operating model,” Sebastien de Montessus, Endeavour’s president and chief executive, aid in a statement. “In addition to the significant procurement, supply chain, and G&A savings, we are also seeing the benefits of softer synergies that arise from being the largest gold producer in Burkina Faso.”
The company noted the Boungou plant has been processing stockpiles since early 2020. Endeavour said it expects the mine to achieve the top half of its 2020 production guidance range of 130,000-150,000 oz. gold, at all-in sustaining costs (AISCs) of US$680-$725 per ounce.
Endeavour Mining said in August it was considering a dual listing either in London or New York in the wake of its merger with Semafo. The company’s management team is based in London.
With a market cap of C$5.7 billion (US$4.3 billion), Endeavour would be amongst the most valuable precious metals companies listed on the London Stock Exchange. These include Russian duo Polyus (LON: PLZL) and Polymetal International (LON: POLY), Mexico-focused Fresnillo (LON: FRES) and Canadian Yamana Gold (LON: AUY), all of whom have a market value of more than $4.5 billion.