Endeavour Mining, a gold miner focused on Africa, has expedited the construction of a 37 MWp photovoltaic (PV) solar facility at Senegal’s Sabodala-Massawa mine, investing $55 million. This solar plant will complement the ongoing expansion of a 36 MW heavy fuel oil power plant at the same location. Additionally, a 16 MW battery system will be erected to regulate the power supply and minimize generator usage.
This hybrid approach aligns with Endeavour’s optimization strategy and is projected to yield a pre-tax internal rate of return of 15%, based on the current reserve mine, and over 20% if considering additional resource conversion and exploration potential. The solar facility aims to reduce fuel consumption, power expenses, and emissions. Commissioning is set for early 2025.
Endeavour recently sold mines in Burkina Faso for $300 million to focus on higher-quality assets. The company’s CEO, Sebastien de Montessus, highlights their commitment to cost efficiency and announces their intention to enhance shareholder returns once organic growth projects conclude.
Despite a 13% YoY decline in H1 2023 production due to various operational factors, Endeavour remains on track to meet its 2023 production guidance. The miner posted adjusted net earnings of $54 million in the June quarter and declared a first-half dividend of $100 million, reflecting their commitment to shareholder benefits.