Endeavour Mining’s second-biggest gold mine hit by strike

Endeavour Mining’s second-biggest gold mine hit by strikeWorkers at the Houndé gold mine in Burkina Faso. (Image courtesy of Endeavour Mining.)

Workers at Endeavour Mining’s (TSX: EDV; LSE: EDV) Hondué mine in Burkina Faso, the company’s second-largest gold operation, walked off the job on Tuesday, blocking the access road to the site.

A memo seen by Bloomberg revealed that an “illegal” and “unplanned” strike began affecting operations at Hondué on Sunday, in the latest setback for the Canadian miner, which earlier this month fired its chief executive over a hefty irregular payment.

Shares in the company have lost nearly more than 23% of their value since Jan. 4, when Endeavour dismissed Sébastien de Montessus.

Neither the company or the former executive have disclosed the asset in question or its location. 

Endeavour said it became aware of the payment instruction during a review of acquisitions and disposals, which is ongoing. In the past two years, Endeavor has sold mines in Burkina Faso and its stake in an Ivory Coast gold project.

The Houndé gold mine, which began production in 2017, is one of Endeavour’s cornerstone assets. It accounted for almost 30% of the 1.1 million oz. of gold produced by Endeavour last year.

The operation is located southwest of Ouagadougou, Burkina Faso’s capital and is accessed by a 250 km paved highway that is currently blocked.

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