Greater reward with a 'slightly elevated level of risk' - Endeavour Mining's Ian Cockerill on Africa

Описание: Single asset miners are going to be more challenged, said Ian Cockerill, CEO of Endeavour Mining.

Last week Cockerill spoke to Kitco Mining at the Gold Forum Americas/XPL-DEV 2024 in Colorado.

Endeavour Mining (TSX: EDV) is a senior gold producer focused on West Africa. The company operates assets across Senegal, Côte d’Ivoire, and Burkina Faso. In 2024, the company expects to produce between 1.1 and 1.3 million ounces at an all-in sustaining cost (AISC) of $955 to $1,035 per ounce.

Endeavour Mining achieved commercial production at its newly opened Lafigué Mine last month. The company forecasts a 4.0-million-ton-per-annum CIL plant with an initial 13-year mine life and annual production of 203,000 ounces at an AISC of $871 per ounce.

Regarding mergers and acquisitions, Cockerill said miners with only one operation will be challenged due to perceived risk.

“Single-asset companies clearly are going to become...more vulnerable than companies like ours that are multi-asset,” Cockerill said. He added that there could be an "industrial logic" in combining smaller companies into larger businesses.

Endeavour is focused on West Africa, a region that has seen some political upheaval. Cockerill acknowledged the associated risk.

“We also recognize that there is a corresponding improved reward profile,” Cockerill said. “Working in Africa, if you can manage that risk, and if you're prepared to sort through the noise... Africa offers very attractive returns for those investors who are prepared to accept a slightly elevated level of risk.”

Coverage of the Gold Forum Americas/XPL-DEV 2024 is sponsored by Metalla Royalty.

Time stamps:

0:00 — Opening Lafigué Mine
1:19 — Endeavour Mining's pipeline
3:17 — Organic growth at Endeavour Mining
3:50 — Endeavour Mining in a select group
4:11 — Mining disputes in Mali
9:11 — African miners moving out of the continent
10:48 — What resonates with resource investors

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