Target Information

The Lafigué mine, located in north-central Côte d’Ivoire, represents a pivotal asset for Endeavour Mining. It is positioned at the northern end of the Birimian aged Oumé-Fetekro greenstone belt, approximately 500 kilometers from Abidjan by road. The mine benefits from proximity to established infrastructure, including paved roads and high voltage power supply. Endeavour Mining holds an 80% ownership stake in the mine, while the Ivorian Government and SODEMI own 10% each.

Since construction commenced in Q4-2022, the Lafigué project has achieved significant milestones, notably the first gold pour on June 28, 2024, just 21 months after construction began. This accelerated timeline highlights Endeavour's effective project management and operational capabilities. With a projected annual production of over 200,000 ounces and an all-in sustaining cost (AISC) between $900 and $975 per ounce, Lafigué is poised to enhance Endeavour's production profile and financial performance.

Industry Overview in Côte d'Ivoire

Côte d’Ivoire is rapidly emerging as one of West Africa's leading gold-producing nations. The country has experienced a significant increase in exploration and production activities, primarily driven by foreign investments and favorable mining policies. The government has made significant efforts to streamline mining regulations, attract foreign direct investment, and enhance the development of mineral resources.

The Ivorian gold mining sector has shown resilience and growth potential, contributing considerably to the national economy. With increasing global gold prices, Côte d’Ivoire's gold industry is expected to flourish, supported by both established and new players in the market. The country's geology, which is rich in gold deposits, continues to attract exploration companies, further illustrating its potential.

In recent years, Côte d’Ivoire has seen numerous new discoveries and the development of new mining projects, reflecting a robust pipeline of opportunities. The government is actively promoting sustainable practices and adherence to international standards, which may enhance investor confidence and long-term growth prospects.

As mining activities ramp up, the Ivorian gold sector is projected to play a vital role in the region's economic development, creating employment opportunities and driving infrastructure investment. The established presence of key mining companies amplifies Côte d’Ivoire's position in the global gold market.

Rationale Behind the Deal

The successful first gold pour at Lafigué underscores Endeavour Mining's strategic focus on growth and value creation in the West African gold mining sector. By delivering the project on time and within budget, Endeavour has demonstrated its operational efficiency and effective management capabilities.

Furthermore, Lafigué's potential for substantial production and low AISC presents a compelling investment opportunity that promises to enhance Endeavour's cash flow. The mine not only strengthens the company's asset base but also positions Endeavour to capitalize on favorable gold market conditions and drive shareholder returns.

Information About the Investor

Endeavour Mining plc is a prominent player in the gold mining sector, with a strategic focus on West Africa. The company has established itself as a leading gold producer through a series of successful project developments and acquisitions. Endeavour has a proven track record, having completed five mine developments in the region within the last decade, all on budget and ahead of schedule.

With experienced management and an in-house construction team, Endeavour is well-positioned to leverage its operational strengths and continue expanding its portfolio. The company's commitment to sustainable practices and community engagement further solidifies its reputation as a responsible mining operator in Côte d’Ivoire and beyond.

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The initial gold pour at the Lafigué mine is a significant achievement for Endeavour Mining and indicates a positive trajectory for the company’s future prospects. This swift movement from discovery to production illustrates Endeavour's capabilities and potential for sustained growth in the gold mining sector.

Given the robust economics highlighted in the Definitive Feasibility Study, including an impressive after-tax NPV and IRR, Lafigué presents a strong case for investment, especially with its competitive AISC and projected production levels. The ability to self-generate projects and streamline costs gives Endeavour a competitive advantage in the region.

Moreover, with the ongoing exploration potential at Lafigué and the wider Fetekro area, Endeavour is well-positioned for future growth. The company has ambitious targets for resource discovery, which can further solidify its asset base. As such, Lafigué is not just a successful project but a critical component of Endeavour's long-term strategy.

In conclusion, while market conditions can evolve, the solid fundamentals presented by Endeavour Mining and its Lafigué project suggest that this investment is likely to yield favorable returns, reinforcing the company's stature as a leading player in the West African gold market.

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