Endeavour Mining Approves $1.2 Billion Assafou Gold Project in Côte d’Ivoire

Assafou gold project in Côte d’Ivoire. (Image courtesy of Endeavour Mining.)

Endeavour Mining has approved a $1.2 billion investment to develop its Assafou gold project in Côte d’Ivoire, marking a major expansion of the company’s West African operations as it targets first gold production in the first half of 2029.

The project is expected to produce an average of 320,000 ounces of gold annually during its first eight years of operation, at an all-in sustaining cost (AISC) of $1,026 per ounce, according to the definitive feasibility study released in April 2026.

Assafou has an initial mine life of 16 years and will feature a processing plant with an annual capacity of five million tonnes of ore.

The investment decision represents a significant milestone in Endeavour’s growth strategy, with the company expecting the project to contribute towards increasing annual gold production to approximately 1.5 million ounces by 2030.

Project development budget increases by 13%

The revised development budget has increased by $139 million, or approximately 13%, from the $1.06 billion estimated in the feasibility study.

Endeavour attributed the increase to higher land and crop compensation payments, infrastructure adjustments and additional measures intended to reduce construction and commissioning risks.

Land and crop compensation accounts for approximately 60% of the budget increase, following consultations with local authorities and affected communities.

Power infrastructure revisions contribute another 10%, while additional operational preparations and contingency allowances each account for approximately 15%.

Some costs remain subject to further negotiations, including grid connections and the final route of a planned national highway diversion.

Endeavour has appointed Lycopodium to undertake the engineering, procurement and construction management (EPCM) contract. The contractor previously supported the project’s technical studies.

The company is also finalising contracts for major processing equipment and has reached an agreement in principle with the Ivorian government on the terms of its mining convention.

Construction preparations advance towards 2029 production

Development activities are expected to accelerate over the coming months, with resettlement work scheduled to begin in late November 2026.

Process plant earthworks are expected before the end of the year, followed by concrete works in the second quarter of 2027.

Construction of the processing plant and commissioning activities are scheduled for early 2029.

Infrastructure development, including power facilities, tailings storage and water storage systems, is expected to begin in early 2027.

Mining pre-stripping is planned for 2028, although Endeavour has yet to decide whether the work will be undertaken using contractors or its own mining fleet.

The company has committed $58.7 million, representing approximately 5% of the revised capital budget, with expenditure expected to increase during the fourth quarter of 2026 as compensation payments and deposits for long-lead equipment become due.

Exploration programme targets additional gold resources

Alongside the mine development, Endeavour is pursuing further exploration opportunities across the broader Tanda-Iguela property.

The company is investigating more than 20 exploration targets within 10 kilometres of Assafou, with its 2026–2030 exploration programme aiming to identify an additional one million to 1.5 million ounces of gold resources.

Successful exploration could extend the project’s operating life and provide greater flexibility in future production planning.

The development also complements Endeavour’s underground expansion at the Sabodala-Massawa mine in Senegal, where commercial production is targeted for early 2028.

Together, the two projects are expected to support the company’s ambition of reaching annual production of approximately 1.5 million ounces by 2030.

Strong cash generation supports expansion plans

The Assafou investment approval comes amid strong financial performance for Endeavour during the first nine months of 2026.

The company reported record free cash flow of $1.02 billion, representing a 50% increase compared with the corresponding period in 2025.

Adjusted earnings rose 64% to $913 million, while adjusted EBITDA increased 38% to $2.25 billion.

Gold production totalled 820,000 ounces through September, down 10% year-on-year, at an AISC of $1,866 per ounce.

Endeavour maintained its full-year production guidance of 1.09 million to 1.27 million ounces, although it expects production to fall within the lower half of that range.

The company ended September with net cash of $263 million after reducing gross debt by $412 million. It also returned $312 million to shareholders through dividends and share buybacks during the year to November 10.

However, operational challenges persist at the Mana mine in Burkina Faso, where underground mining was suspended following access-ramp subsidence in October. Processing is not expected to resume until the second quarter of 2027.

Stronger production at Lafigué in Côte d’Ivoire has helped offset some of the disruption.

Côte d’Ivoire strengthens position as a gold investment destination

The Assafou development represents a major addition to Côte d’Ivoire’s mining industry and reinforces West Africa’s importance in global gold production.

With a projected annual output of 320,000 ounces during its first eight years, the project is expected to become a significant contributor to Endeavour’s regional production portfolio.

Beyond production growth, the investment will involve substantial

infrastructure development, local compensation arrangements and further exploration across the Tanda-Iguela property.

As construction moves towards its planned 2029 production start, project execution, infrastructure delivery and the management of development costs will be important factors in determining whether Assafou achieves its production and financial targets.