La Mancha Cuts Back Endeavour Mining Holding After Share Price Surge

London-based investment firm La Mancha Resource Capital has reduced its stake in Endeavour Mining following a sharp rise in the gold miner’s share price over the past year.

La Mancha’s Luxembourg-based fund sold approximately 3.5% of Endeavour’s issued share capital through a bought deal priced at C$71.25 per share, raising about C$605 million (US$437 million). The transaction trims La Mancha’s holding while leaving it as one of Endeavour’s largest shareholders.

Endeavour’s shares have gained nearly 200% year-on-year, closing at C$77.61 on Thursday before retreating to C$72.91 in early Friday trading. Despite the pullback, the company remains valued at around C$17.5 billion (US$12.6 billion), reflecting strong investor appetite for gold producers amid elevated bullion prices.

The broader gold sector has enjoyed a powerful rally, with many major miners more than doubling in value over the past 12 months as geopolitical tensions and sustained central bank buying pushed gold prices up roughly 65% to successive record highs.

Prior to the sale, La Mancha held about 35.3 million shares, representing roughly 15% of Endeavour on a non-diluted basis. Following the transaction, its stake stands at approximately 11%.

“This transaction forms part of La Mancha’s ongoing capital management strategy,” said Vincent Benoit, chief executive and managing partner of La Mancha. He noted that the sale was aimed at reducing leverage and rebalancing the portfolio after Endeavour’s strong share-price performance significantly increased the fund’s exposure.

West African Gold Portfolio

Endeavour has evolved from an explorer into one of West Africa’s leading gold producers, with a portfolio anchored by operations in Burkina Faso and Côte d’Ivoire. Core assets include the Houndé mine in Burkina Faso and the Ity and Agbaou mines in Côte d’Ivoire, with total attributable production typically in the mid- to high-900,000-ounce range annually.

The company streamlined its portfolio in 2023 by divesting non-core assets, including the Boungou and Wahgnion mines in Burkina Faso.

Long-Term Shareholder Commitment

Despite the stake reduction, La Mancha emphasised that it remains a committed long-term investor. Benoit described the group as a “cornerstone shareholder” for more than a decade and said the transaction does not signal any loss of confidence in Endeavour’s strategy or management.

La Mancha intends to retain a stake exceeding 10%, maintain board representation, and continue supporting the company’s long-term growth plans. Egyptian businessman Naguib Sawiris will continue to represent La Mancha on Endeavour’s board.

La Mancha has been a key shareholder since 2015, when it sold its interest in the Ity mine to Endeavour in exchange for equity.

Shifting State Role in the Sahel

Endeavour’s past exposure to Burkina Faso highlights a broader regional trend toward increased state participation in mining. The government of Burkina Faso, led by Ibrahim Traoré, took control of the Boungou and Wahgnion mines after the collapse of their proposed sale to Lilium Mining.

Following disputes over payments and ownership, the state nationalised the assets in August 2024, compensating Endeavour with approximately US$80 million in cash and royalties. The mines are now fully state-operated, with Endeavour retaining a residual economic interest through royalty arrangements.

Across the Sahel, military-led governments are seeking greater stakes in foreign-operated mines to boost revenues amid security challenges and fiscal pressure. Similar dynamics have played out in Mali, where Barrick Mining recently settled a long-running dispute with the state, and in Niger, where uranium projects are advancing under revised state frameworks.

As gold prices remain elevated, Endeavour Mining’s scale, asset quality, and regional exposure continue to attract investor interest—while also placing the company at the centre of evolving resource nationalism trends across West Africa.