Endomines - Ambitious but for good reason
Endomines CMD provided a solid presentation of current operations and future plans and demonstrated the significant potential, while acting as a reminder of the capital intensity of the industry.
CMD: review of operations/targets, some new information
Endomines held its Capital Markets Day on March 27th, delivering a comprehensive review of current operations but also shedding further light on future plans and targets. The gold production plans of ramping up volumes to 70,000-100,000 oz in 2030 remains, with a defined gold resource of 1.5-2.0 Moz, while estimated production ranges of tungsten and molybdenum concentrate amounting to 1000 tonnes and 600 tonnes per annum respectively were now floated. Compared with 2025, the gold production and resource figures imply roughly 4x increase in production and 3x increase in resources.
Significant production increase plans won’t come cheap
Future production emphasis lies on the Southern Gold Line through a production system set in two phases. In the first, production capacity would be 1.5 Mt gold ore with an output of 60,000-65,000 oz, with plans to double that in phase 2. Gold grades of 1.5g/t are expected, which are fairly low, but being greenfield projects and at current gold prices would very likely be clearly profitable. The CMD material suggests plans for multiple smaller projects feeding into the planned new production facility. The investments will be very significant, with a figure of EUR 200m now given, which doesn’t include tungsten and molybdenum production. Near-and mid-term exploration activities will also increase significantly, with plans to drill 50,000 meters in 2026, likely to increase further should gold prices remain at high levels. The strong cash flows provide good support for now, but significant further financing will be needed if and when investments into production at the SGL are made.
Expect to hear a lot more news in the near-term
Endomines targets are most certainly ambitious, and there is still significant uncertainty regarding new projects, but the mineralization at the Karelian Gold Line and outlook for gold and critical minerals remain appealing. We expect the coming years to be very busy, as further resources are sought to be defined to lay a sufficient foundation for production plans and financing.