Endeavour Mining Assafou study points to lower costs and long-term growth potential, says Stifel

Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) has released a definitive feasibility survey (DFS) for its Assafou golden task successful Côte d’Ivoire, with cardinal metrics broadly successful enactment with expectations and portion costs coming successful beneath forecasts, according to Stifel analysts.

The steadfast described the update arsenic supportive for the company’s longer-term accumulation outlook, highlighting the project’s relation successful underpinning Endeavour’s pathway toward higher output and portfolio enlargement implicit the remainder of the decade.

“The survey includes important upside potential, some via enlargement of the assets basal and throughput increases,” the analysts wrote.

The Assafou DFS outlines a 5 cardinal tonnes per annum (Mtpa) processing works utilizing a accepted flowsheet involving two-stage crushing, high-pressure grinding rolls, shot milling, and gravity positive carbon-in-leach (CIL) recovery. The task is based connected a excavation beingness of 16 years, with mean accumulation of astir 320,000 ounces per twelvemonth successful the archetypal 8 years and life-of-mine accumulation averaging astir 257,000 ounces annually.

Capital expenditure is estimated astatine astir US$1.06 billion, broadly successful enactment with expectations. However, all-in sustaining costs (AISC) came successful astatine US$1,062 per ounce, materially beneath the broker’s forecast of astir US$1,414 per ounce, which Stifel noted is simply a comparatively uncommon affirmative astonishment successful the sector.

The survey is based connected 4.4 cardinal ounces of reserves, calculated utilizing a golden terms presumption of US$1,500 per ounce. Stifel noted that this is blimpish comparative to its ain estimation of 5 cardinal ounces, which aligns much intimately with measured and indicated resources. The analysts suggested that further conversion of resources into reserves could widen the excavation beingness and assistance support accumulation connected a plateau for longer than presently modelled.

Stifel besides highlighted optionality embedded successful the task design. The processing works has been sized with enlargement successful mind, including comminution circuit capableness that could let for comparatively straightforward throughput increases successful the future.

They pointed to Endeavour’s anterior way grounds of debottlenecking and expanding existing operations, citing Ity and Houndé arsenic examples, and suggested that Assafou could perchance spot a akin enlargement of up to 50% implicit time.

On the improvement timeline, absorption is targeting a last concern determination (FID) by the extremity of the year. This is expected to travel completion of the mining convention, which volition specify fiscal and regulatory presumption for the project. Mining permits person already been secured, and backing is expected to beryllium manageable from Endeavour’s equilibrium sheet, according to the note.