Mining Forum Americas: Endeavour Mining lines up growth in West Africa

Colorado Springs, Colo. – Endeavour Mining (TSX, LSE: EDV) is shifting from capital-intensive growth to lifting West African output 30% by 2030 through fine-tuning assets, says CEO Ian Cockerill.

Despite periodic coups and conflict flashpoints across the Sahel, West Africa’s major gold belts have stayed largely insulated from disruption at established mines. Endeavour has navigated the noise by keeping deep ties with host governments and communities, structuring negotiated exits from non-core assets and working within country “conventions” as codes evolve, Cockerill said. 

“Some people call it risk– I call it challenges, but it also has the potential for outsized returns,” Cockerill told The Northern Miner on the margins of the recent Mining Forum Americas.

Endeavour has had to steady the ship after a governance shock and shifting ground in Burkina Faso. The board fired former CEO Sébastien de Montessus in January 2024 for “serious misconduct” tied to an irregular $5.9-million (about C$8.2 million)payment, later noting he would forfeit about $29.1 million in awards. Ian Cockerill was appointed to take the helm.

In Burkina Faso, the Traoré government has seized the Boungou and Wahgnion mines in recent months and transferred additional assets to a new state miner, paying roughly $80 million despite reports speculating on a prior sale valuation of $300 million.

Operationally, Endeavour has worked through higher unit costs during underground transitions at Mana in Burkina Faso and increased mining volumes at Ity in western Côte d’Ivoire. Meanwhile, Endeavour put price collars on 50,000 oz. gold per quarter to secure minimum cash flow for the Lafigué greenfield build in Côte d’Ivoire and the Sabodala–Massawa BIOX expansion in Senegal, and to underpin ongoing dividends. The hedges capped upside when gold ran, but Cockerill says they roll off at the end the year.

Endeavour’s Toronto-listed shares were trading at C$57.78 on Monday, off the 12-month high of C$58.44. They have gained 76.5% in the past year, giving the company a market capitalization of C$14 billion ($10 billion). 

‘Secret sauce’ 

At the heart of the London-based company’s growth is the Assafou gold project in Côte d’Ivoire. Endeavour aims to complete a definitive feasibility study by early next year. If approvals go through, construction may begin in the second half of 2026, and the first gold could be produced in 2028. 

“From discovery to first pour will be under eight years,” Cockerill said. “West Africa’s permitting cadence and established supply chains help compress timelines,” he underlined. 

The biological oxidation (BIOX) circuit at Senegal’s Sabodala-Massawa complex is running roughly 10% above its 1.2-million-tonne-per-year nameplate capacity, Cockerill said. That’s after workers rebalanced feed to about 80% fresh refractory ore and 20% transitional material, from an earlier ore mix of roughly 70%-30%, respectively. They also rerouted flotation underflow to the carbon-in-leach plant to “scavenge” additional ounces. 

“That’s the secret sauce,” Cockerill said. “BIOX is now working the way it should – and we’re looking to make it sweat a bit more.” 

First gold from the Sabodala-Massawa BIOX expansion with VP Operations Lawrence Manjengwa. Credit: Endeavour Mining

Endeavour is set to bring in higher-grade oxides and fresh ore to the Sabodala-Massawa mill while advancing the Karakunda and Guruma underground mines. First material from these mines is expected by late 2027 and into 2028. 

“We want to replace low-grade stockpiles,” Cockerill said. “The undergrounds are good grade oxides that help the whole flowsheet.” 

Free cash 

First-half output hit 647,000 oz. gold at an all-in sustaining cost (AISC) of $1,281 per oz. (C$1,773.90). That’s up 3.6% from $1,237 per oz. in the same period last year. 

Record gold prices have helped Endeavour generate significant amounts of cash. Free cash flow reached $879 million over the past 12 months. That’s equivalent to $687 per oz. produced, a yield exceeding 17%, Cockerill said. 

The company declared a record dividend of $150 million for the half-year period, supplemented by $69 million in share buybacks. Total shareholder returns reached $338 per oz. of gold produced, highlighting a commitment to strong investor returns, Cockerill said. 

“We run Endeavour as both a growth and yield story – funding exploration and new builds inside a conservative leverage guardrail, then handing excess back through dividends and buybacks so investors get paid while the pipeline advances,” the executive said. 

Portfolio upgrade 

In Côte d’Ivoire, Endeavour aims to combine several satellite pits at Ity into a “super-pit.” Cockerill believes this will allow for bigger equipment, lower mining costs and more stable output of just over 300,000 oz. per year.” 

In Burkina Faso, drilling at Houndé is exploring deeper extensions of Vindaloo Main. This could support an underground mine in a few years. Early results show promising widths of about 6 grams of gold per tonne, the executive noted. 

Cockerill framed the program as the latest turn of Endeavour’s portfolio-upgrade strategy. The company’s internal “magic box” favouring long-life, low-cost mines has seen it sell shorter-life, higher-cost operations over the past decade. That includes Boungou and Wahgnion in Burkina Faso – transactions he stressed were negotiated sales, not nationalizations. 

“It takes as much effort to manage a tough mine as a good one,” he said. “We focus on the good stuff.” 

Part of that focus includes Mana in Burkina Faso, which has transitioned to a pure underground operation. With high costs and a short mine life compared to other company assets, Mana is an outlier in Endeavour’s portfolio – though strategically useful, the CEO said. Operating the mine helps employees gain underground expertise for Sabodala-Massawa, Houndé and eventually, Ity. 

“Even with a contractor, you need to know what good looks like,” he said. “Mana gives us that muscle.” 

Endeavour Mining’s “magic box” shows its definition of Tier 1 assets. Credit: Endeavour Mining

Organic growth 

Endeavour’s exploration engine also helps the company’s cost profile – “just under 21 million oz. discovered at about $25 (C$35) per oz. over nine years,” with reserve grades averaging nearly 1.8 grams per tonne, Cockerill said. Orebody quality, and not scale, is what drives value, the CEO stressed. 

“We don’t want to be the biggest,” he said, echoing recent pledges by senior producers to adhere to discipline amid record metal prices. 

“We want to be mid-range in volume but high value.” 

Legislative environment 

On the policy front, Endeavour has agreed to Burkina Faso’s move from a 10% to 15% state free carry in its 2024 mining code update. In Côte d’Ivoire, he characterized a proposed royalty and ownership review as a “green paper” – a discussion document – with expectations that existing project conventions will be respected. 

Senegal, he added, has signalled no immediate changes. 

The company assigns a public-affairs lead to each country. This keeps communication open with all levels of the administration. The goal is to create good outcomes while protecting investments. “People call it risk; I call it challenges with outsized returns if you manage them,” he said. 

“We’re a rare combination in gold – we offer growth and a yield,” Cockerill said. “While we build the next leg, we’re improving the plants we have, bringing on underground ounces and keeping the dialogue tight in our countries. That’s how you protect margins and the social licence to operate.”