La Mancha sells down Endeavour Mining stake

Core Viewpoint - La Mancha Resource Capital is reducing its stake in Endeavour Mining after a significant increase in share value, while still remaining a major shareholder [1][2][4]. Group 1: Stake Reduction - La Mancha sold 3.5% of Endeavour at C$71.25 per share, totaling approximately C$605 million ($437 million), reducing its holding from about 15% to 11% [2][3]. - The shares of Endeavour closed at C$77.61, reflecting a 191% increase from the previous year, but fell 6.1% to C$72.91 shortly after the sale [2][3]. Group 2: Company Performance - Endeavour Mining's portfolio includes key operations such as the Houndé mine in Burkina Faso and the Ity and Agbaou mines in Côte d'Ivoire, with an annual output of approximately 900,000 ounces [5]. - The company has divested from non-core assets, selling the Boungou and Wahgnion properties in Burkina Faso in 2023 [5]. Group 3: Long-term Commitment - La Mancha has been a cornerstone shareholder since 2015 and continues to support Endeavour's strategy and management, retaining board representation [6][7]. - The CEO of La Mancha emphasized that the stake reduction does not reflect a change in confidence regarding Endeavour's long-term potential [4][6]. Group 4: Government Involvement - The government of Burkina Faso has taken control of Endeavour's former Boungou and Wahgnion mines, nationalizing the assets after a failed sale to Lilium Mining [8][9]. - This move is part of a broader trend in the Sahel region, where military governments are seeking greater stakes in mining operations to generate revenue [10].