CONSTRUCTION OF SENEGAL 37 MVP SOLAR FACILITY BROUGTH FORWARD BY INVESTORS

Africa-focused gold miner Endeavour Mining has brought forward the construction of a 37 MWp photovoltaic (PV) solar facility at the Sabodala-Massawa mine, in Senegal, for $ 55 million.

The solar plant will complement the 36 MW heavy fuel oil power plant that is currently being expanded as part of a brownfield expansion at the Sabodala-Massawa mine.

In addition, a 16 MW battery system will be constructed to regulate the power supply and ensure fewer generators are required.

Endeavour says the hybridization of the Sabodala-Massawa mine is aligned with its optimization strategy and will realize a 15% pretax internal rate of return on the investment, based on the current reserve mine, and exceed 20% based on the additional resource conversion and exploration potential.

“Our relentless focus on cost and efficiency improvements has continued to identify optimization opportunities across the portfolio, leading to our decision to move forward with the 37 MWp PV facility at our Sabodala-Massawa mine, thereby redeploying a portion of the proceeds obtained from the sale of our non-core mines,” comments president and CEO Sebastien de Montessus.

Endeavour recently sold its Boungou and Wahgnion mines, in Burkina Faso, for $ 300 million, as part of its strategy to focus on higher-quality assets.

The plant, which will significantly lower fuel consumption and power costs, while reducing emissions, will be commissioned in early 2025.

Meanwhile, commenting on the brownfield expansion of Sabodala-Massawa and the Lafigue greenfield project, in Cote d’Ivoire, De Montessus reports that both are on budget and on track to be commissioned next year.

The dual-listed miner is investing $ 740 million on the two growth projects.

De Montessus also reports that Endeavour will meet its 2023 production guidance, which was adjusted to reflect the sale of the Boungou and Wahgnion mines. The group is aiming to produce 1.06 million to 1.14 million ounces at an all-in-sustaining cost (AISC) guidance of $895/oz to $950/oz.

In the first half of 2023, production from continuing operations decreased by 13% year-on-year to 511 000 oz, owing to decreased production at Hounde and Sabodala-Massawa as an increased focus on stripping activity resulted in lower grade ore being processed, and at Mana owing to an increased focus on underground development.

Second-quarter output fell by 10% quarter-on-quarter to 268 000 oz at an AISC of $1 136/oz.

The miner posted adjusted net earnings of $ 54 million in the June quarter, down from $ 65 million in the March quarter and $ 109 million in the June 2023 quarter.

Endeavour also declared a first-half dividend of $ 100 million, which on an annualized basis represents $ 25 million more than the minimum dividend commitment for the year.

“Looking ahead, our goal is to increase our shareholder returns program further once our organic growth projects are complete, to ensure that our efforts to unlock growth benefit all stakeholders,” says De Montessus.

SOURCE: Miningweekly