Endeavour completes acquisition of Semafo, creating West Africa’s top gold producer

Canada’s Endeavour Mining yesterday announced the completion of its US$732 million acquisition of smaller group Semafo, becoming West Africa’s biggest gold producer in the process.

The deal, first announced in March, brings together six operating mines in two locations – Burkina Faso and Côte d’Ivoire. Combined reserves stand at 10.5 million ounces, and measured and indicated resources, 20.7 million ounces.

Semafo president and chief executive Benoit Desormeaux has assumed the role of Endeavour’s new president, but chief financial officer Martin Milette declined the same role at Endeavour, citing personal reasons.

Henri de Joux, executive VP of people and information technology at Endeavour, will instead act as interim chief financial officer, the company said.

Endeavour, which has seen its share price rise by more than 60% since it announced the deal for Semafo, is anticipating its gold production to exceed the one million ounces mark this year.

The company expects to generate C$750 million of operating cash flow this year, and will update its 2020 production and cost guidance incorporating Semafo’s operations in its Q2 financial and operating results in early August.