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(Kitco News) - Endeavour Mining (TSX: EDV) (OTCQX: EDVMF), a senior global gold producer, announced Thursday that it has closed the sale of its 90% interests in its Boungou and Wahgnion non-core mines in Burkina Faso to Lilium Mining.
The company said that the total consideration is expected to exceed $300 million and is comprised of upfront and deferred cash considerations and net smelter return royalties (NSR).
Lilium Mining is a subsidiary of Lilium Capital, an African and frontier markets focused strategic investment vehicle led by West African entrepreneurs.
The Boungou mine was acquired by Endeavour in July 2020, as part of its acquisition of SEMAFO. Endeavour owned a 90% stake in the Boungou mine, with the remaining 10% owned by the State of Burkina Faso.
For the full year ended 31 December 2022, Boungou produced 116koz at an AISC of $1,064/oz, while for H1 2023 production is expected to amount to approximately 33koz at an AISC of above $1,500/oz.
The Wahgnion mine was acquired by Endeavour in February 2021, as part of its acquisition of Teranga. Endeavour owned a 90% stake in the Wahgnion mine, with the remaining 10% owned by the State of Burkina Faso.
For the full year ended 31 December 2022, Wahgnion produced 124koz at an AISC of $1,525/oz, while for H1 2023 production is expected to amount to approximately 68koz at an AISC of above $1,500/oz.
Following the sale of the Boungou and Wahgnion mines, Endeavour has updated its 2023 full year production and all-in sustaining cost (AISC) guidance to account for the removal of guided production from the Boungou mine of 115 –125koz at an AISC of $985 – 1,075/oz and from the Wahgnion mine of 150 – 165koz at an AISC of $1,250 – 1,350/oz.
As a result, the full year 2023 production guidance for continuing operations has decreased from 1,325 – 1,425koz to 1,060 – 1,135koz, while AISC guidance from continuing operations has improved by $45/oz to $895 – 950/oz.
“This asset sale is expected to be more than offset by Endeavour’s ongoing construction activities as the Group’s production and AISC are expected to significantly improve next year as the Sabodala-Massawa brownfield expansion in Senegal, and the Lafigué greenfield project in Côte d’Ivoire remain on track to be commissioned in Q2 2024 and Q3 2024, respectively,” the company said in a statement.
Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Côte d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.
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