West Africa-focused Endeavour Mining (LON, TSX: EDV) has approved construction of its $1.2-billion Assafou gold project in Côte d’Ivoire, targeting first production in the first half of 2029 as the company advances one of its largest growth investments.
The project is expected to produce an average of 320,000 oz. of gold annually at all-in sustaining costs (AISC) of $1,026 per oz. during its first eight years, according to a definitive feasibility study released in April. Assafou has an initial mine life of 16 years and will use a processing plant designed to handle 5 million tonnes of ore annually.
“We will continue to prioritize shareholder returns while we organically grow the business, and we have made significant progress in de-risking our organic growth strategy,” CEO Ian Cockerill said in a release Thursday.
The investment decision marks a major step for Endeavour’s expansion plans in West Africa. Assafou, discovered less than seven years before its scheduled first gold pour, is expected to help lift the company’s annual production to 1.5 million oz. by 2030, alongside an underground expansion at its Sabodala-Massawa mine in Senegal.
Development budget, however, has risen by $139 million, or 13%, from the $1.06 billion estimated in the feasibility study. The revised figure reflects higher compensation payments, infrastructure costs and additional measures intended to reduce construction and commissioning risks.
Costs jump
Increased land and crop compensation accounts for approximately 60% of the budget increase following consultations with local authorities and communities. Power infrastructure revisions account for another 10%, while additional operational preparations and contingency allowances each contribute about 15%.
Some costs remain subject to negotiation, including grid connections and the final route of a national highway diversion.
Endeavour has awarded the engineering, procurement and construction management contract to Lycopodium, which supported the project’s earlier technical studies. Contracts for major processing equipment are also being finalized, while the company has reached an agreement in principle on the terms of its mining convention with Côte d’Ivoire.
Construction preparations are advancing on several fronts. Resettlement work is scheduled to begin in late November, with process plant earthworks expected before year-end. Concrete work is planned for the second quarter of 2027, followed by plant construction and commissioning in early 2029.
Work on power infrastructure, tailings and water storage facilities is expected to begin in early 2027. Mining pre-stripping is scheduled for 2028, although Endeavour has yet to decide whether to use contractors or operate its own mining fleet.
The company has committed $58.7 million, representing about 5% of the revised capital budget. It expects spending to accelerate in the fourth quarter as compensation payments and deposits for long-lead equipment come due.
Endeavour is also investigating more than 20 exploration targets within 10 km of Assafou. Its 2026-2030 exploration program aims to identify another 1 million to 1.5 million oz. of resources across the broader Tanda-Iguela property, potentially extending the operation’s life and improving production flexibility.
Cash generation
The investment decision accompanied Endeavour’s third-quarter financial results, which showed record free cash flow of $1.02 billion for the first nine months of 2026, up 50% from a year earlier. Adjusted earnings rose 64% to $913 million, while adjusted EBITDA increased 38% to $2.25 billion.
Gold production totalled 820,000 oz. through September, down 10% year over year, at AISC of $1,866 per oz. The company maintained its annual production guidance of 1.09 million to 1.27 million oz., although it expects output in the lower half of that range.
Performance at the Mana mine in Burkina Faso remains a concern after underground mining was suspended following access-ramp subsidence in October. Processing is not expected to resume until the second quarter of 2027, while stronger production at Lafigué in Côte d’Ivoire has helped offset the disruption.
Endeavour ended September with $263 million in net cash after reducing gross debt by $412 million. It returned $312 million to shareholders through dividends and buybacks during the year to Nov. 10.
The company is also advancing the Sabodala-Massawa underground expansion, with commercial production targeted for early 2028, as it prepares to fund its next phase of growth.
Source: https://www.mining.com/endeavour-bets-1-2-billion-on-major-ivory-coast-gold-mine/
