- Over 33 tonnes of gold produced
- The lowest production costs in its history, at 964 $/oz in 2023
- Houndé reaches record annual production in 2023
- Gold came in at 1,945 $/oz in Q4 and 1,919 $/oz for the financial year 2023
- Solid financial position with 455 billion FCFA in available cash
- The increase in the royalty rate had no effect on the company
- Outlook for 2024: Increased production and lower production costs
Endeavour mining’s gold production expenditure decreased in 2023 despite a 24 $/oz increase in royalty costs. This increase follows the signing of the decree increasing royalty rates in Burkina Faso. Under this decree, the rate, which was capped at 5%, has been increased to 7%, depending on the price of gold. This is the conclusion of a press release issued by Endeavour Mining in London on 22 January 2024. The press release covered the preliminary financial and operating results for the year 2023.
2023 was a very successful year for the company. Indeed, the figures presented betray the performance recorded in 2023. Production for 2023 stood at 1,072,000 oz (33.3 tonnes of gold), marking the 11th consecutive year of meeting or exceeding production forecasts. However, this production is 8% lower than in 2022 due to lower production at Mana, which is reportedly in transition from open-pit to underground mining. Sabodala-Massawa has also seen a decline due to the extraction and processing of lower-grade ore. Meanwhile, Houndé and Ity both achieved record annual production. This production was sold at 1,945 $/oz in Q4 2023 and 1,919 $/oz for the year 2023.
Endeavour mining has recorded the lowest production costs in its history, at 964 $/oz for the year 2023. As a result, the company is in a strong financial position, with 757 million $ (455 billion FCFA) in available cash. Dividends declared in 2023 will be 180 billion FCFA, 14% above the minimum dividend commitment. Endeavour reiterates its firm commitment to pay additional returns to shareholders.
Looking ahead to 2024, Endeavour Mining plans to expand Sabodala-Massawa. The programme of activities is on budget and on schedule for start-up in Q2 2024. This expansion will increase production in 2024 to 400,000 oz with production costs below 850 $/oz. Construction of the Lafigué project is also on budget and ahead of schedule, with start-up scheduled for Q2 2024.
Ian Cockerill, CEO of Endeavour, commented, “2023 has been another successful year for Endeavour, during which we have continued to focus on improving the quality of our portfolio through asset optimisation initiatives, the disposal of the non-core Boungou and Wahgnion mines, the construction of our two high-margin, long-life growth projects, and continued significant exploration success. Operationally, we are pleased to have achieved our production targets for the eleventh consecutive year and to remain one of the lowest all-in sustaining cost producers in the industry, enabling us to generate robust cash flow to fund both our organic growth and shareholder return programmes. In addition, we achieved record production at Ity and Houndé in 2023 where production exceeded 300 OO oz. Whilst we look forward to continuing to optimise and explore these two mines with the aim of maintaining such production levels over the long term, Endeavour’s other flagship asset, Sabodala-Massawa, is well positioned to produce up to 400koz in 2024”. He congratulated the team on their hard work.
Elie KABORE
#Mines_Actu_Burkina
