Endeavour Mining and Fortuna Silver operations unaffected by Burkina coup

Endeavour Mining (TSX: EDV; LSE: EDV; US-OTC: EDVMF) and Fortuna Silver Mines (TSX: FVI; NYSE: FSM) say their mines in Burkina Faso have not been affected after a military junta seized control of the country and detained its president. 

More than a dozen soldiers announced on state television on January 24 that they had seized control of the West African nation and detained President Roch Marc Christian Kabore following a day of gun battles in the capital, Associated Press reported. 

The group of soldiers cited the president’s inability to control the deteriorating security situation in the country amidst a deepening Islamic insurgency.  The soldiers also said that those who had been arrested “are being held in a safe place, with respect for their dignity,” Associated Press reported. 

In a statement, Kaboré’s political party accused the soldiers of trying to assassinate the president and another government minister, and said the presidential palace in the capital of Ouagadougou remained surrounded by “heavily armed and hooded men,” the news agency reported.  

Burkina Faso is home to a number of mines operated by mining companies.  

Fortuna, which owns the Yaramoko gold mine in Burkina Faso, said its operations continue as normal and that the “current political situation” has not affected “its workforce and associated supply chains.”  

Endeavour Mining, which has five out of its seven mines in the west African country, said its mines and projects “continue to operate as usual” and have not been “affected by the current political situation.” 

“The company continues to monitor the situation and will provide updates as and when appropriate,” Endeavour stated in a press release on January 24.  

According to Raymond James analyst Craig Stanley, who follows Endeavour Mining, the five mines, Hounde, Wahgnion, Mana, Bongou and Karma, account for 40% of his asset valuation for the company.  

Last year Endeavour produced 1.5 million oz. of gold, beating its guidance of 1.2 to 1.4 million ounces, and at an all in sustaining cost (AISC) of US$880 per ounce. 

“2021 was another successful year for Endeavour in which we delivered against all our objectives,” Sebastien de Montessus, the company’s CEO, said in a separate press release on January 24.  “Our focus was on executing our capital allocation priorities … while supporting our operations, continuing to strengthen our balance sheet and investing in exploration.” 

Iamgold (TSX: IMG; NYSE: IAG), which owns the Essakane gold mine in Burkina Faso, told The Northern Miner that it plans to issue a press release on January 25 after it completes an assessment of the situation.