By: OrePulse

Endeavour Mining expects full-year gold production to land in the lower half of its target range after disruptions at its Mana mine in Burkina Faso, where underground mining and processing are not expected to resume until the second quarter of 2027.

The London-listed miner said on Thursday it remained on track to produce between 1.09 million and 1.265 million ounces this year, though weaker-than-expected output at Mana would only be partly offset by stronger production at its Lafigué mine in Côte d’Ivoire.

Mana is now expected to miss the lower end of its own production target of 155,000 to 180,000 ounces, and all-in sustaining costs there will exceed the upper end of its $2,000 to $2,250 per ounce forecast.

Burkina Faso regulations

Endeavour also faces new regulatory requirements in Burkina Faso, where the government has ordered that all gold doré produced in the country be refined domestically starting November 1. Gold doré is a partially refined form of gold produced at mines before further processing at a refinery; the government opened the country’s first such refinery in September. Endeavour said it was in discussions with the local refinery over implementation at Mana and its other Burkina Faso mine, Houndé.

CEO Ian Cockerill has previously expressed confidence in Endeavour’s operating environment in the country despite increased government intervention in the mining industry. In July, he said conditions had become more stable, though he acknowledged that new government requirements for the supply of mining materials had initially disrupted operations.

Mana disruption

Underground mining at Mana was suspended on October 28 after part of an access ramp subsided, restricting access to two underground portals; mining at a third portal was halted as a precaution. The company now expects rehabilitation work to begin in the fourth quarter, with underground ore mining and processing scheduled to resume in the second quarter of 2027. Endeavour is also accelerating open-pit mining to help compensate for the disruption, and said revised production, cost and capital expenditure forecasts for Mana in 2027 are expected in January.

Nine-month results

Endeavour produced 256,000 ounces in the September quarter, down 10 percent from the preceding quarter, bringing production for the first nine months to 820,000 ounces, also down 10 percent. The company expects a stronger fourth quarter, supported by higher grades at its Houndé mine in Burkina Faso, Ity in Côte d’Ivoire and Sabodala-Massawa in Senegal.

Group all-in sustaining costs rose 37 percent year on year to $1,866 per ounce over the nine months, above the company’s full-year target range of $1,600 to $1,800 per ounce. Endeavour said higher gold prices added $166 per ounce to royalty costs; adjusted for that effect, all-in sustaining costs were $1,700 per ounce, within the target range.

Despite lower production, higher gold prices lifted nine-month free cash flow 50 percent to a record $1.02 billion. Cockerill said stronger performance at Lafigué had largely offset the disruption at Mana, and that the group remained on track to meet its full-year targets.