Endeavour Mining, Kobo Resources, Fortuna Mining: Opportunities in West Africa

Endeavour Mining: High Gold Prices Boost Cash Flow

While gold prices are correcting in the short term, Endeavour Mining demonstrates the economic strength behind mining the precious metal. The mining group, which specialises in West Africa, generated record free cash flow of USD 761 million in the first half of 2026. This represents an increase of 48% compared with the same period last year. Adjusted net profit rose by as much as 69% to USD 672 million.

Endeavour operates several gold mines in West Africa and is one of the region's major producers. In the first half of the year, 564,000 ounces of gold were mined. The all-in sustaining costs averaged USD 1,871 per ounce. With a gold price above USD 4,000, the group has a substantial operating margin.

Alongside the mines already in production, the development pipeline is full. The Assafou project in Côte d'Ivoire is expected to usher in the next phase of growth. A feasibility study puts the after-tax net present value at USD 5.1 billion, assuming a gold price of USD 4,000. The final investment decision is targeted by the end of the year.

In the first half of the year, Endeavour also paid USD 301 million in dividends and share buybacks. For the period from 2026 to 2028, the company has committed to a minimum dividend of USD 1 billion.

The latest gold price correction could weigh on short-term sentiment. In the long term, however, strong cash flow generation, new projects and a strong market position support the group's prospects.

Kobo Resources: The Countdown Is On

While established producers are already generating strong cash flows, Kobo Resources is approaching a decisive development step. The Canadian exploration company is focusing on the 100%-controlled Kossou Gold project in Côte d'Ivoire. There, Kobo is working to develop a series of promising gold discoveries into an officially declared mineral resource for the first time.

The latest drilling results provide compelling evidence. At the end of last month, Kobo reported a 19 m interval averaging 1.94 g/t of gold from the Road Cut Zone. This included 9 m at 3.29 g/t. Further drilling confirmed that the mineralisation continues northwards and that additional potential exists in areas that have seen little exploration to date.

The company had already reported high-grade intercepts in early September. Particularly notable results included 5 m at 4.55 g/t gold and 1 m at 68.60 g/t. In total, the company has completed more than 53,430 m of drilling across 260 drill holes. The data will feed into the initial resource estimate, which is scheduled for the fourth quarter of 2026.

The metallurgical studies are another positive factor. Earlier tests yielded average gold recovery rates of around 97%. This points to favourable conditions for subsequent processing, but does not yet replace an economic assessment.

Particularly following the latest correction in the gold market, the forthcoming resource estimate could attract considerable attention. While short-term price fluctuations drive sentiment, Kobo's geological database continues to grow. If the initial resource confirms the exploration results to date, it would mark an important step toward further project development. The Canadian company's market capitalisation currently stands at around CAD 27 million.

Fortuna Mining: West Africa Becomes a Growth Driver

Fortuna Mining is increasingly focusing its strategy on the African gold market. The Canadian mining group operates the Séguéla mine in Côte d'Ivoire and the Lindero mine in Argentina, among others. The company is also developing the Diamba Sud project in Senegal.

In the second quarter of 2026, Fortuna generated USD 318.4 million in revenue. At the same time, management is working to expand gold production over the long term and reduce operational dependence on individual sites.

Diamba Sud is particularly interesting. The project is one of the group's key growth initiatives. The Senegalese government has already approved the environmental and social impact assessment. This has established an important regulatory prerequisite for further development.

Analysts also see further upside potential. On October 14, Scotiabank reiterated a price target of USD 14.50 for Fortuna shares. At the current share price of USD 10.71, this implies upside potential of around 35%.

For Fortuna, the combination of existing mines and new development projects holds enormous potential. Rising production volumes could improve long-term earnings power.

Conclusion

With record cash flows, Endeavour Mining demonstrates the potential high gold prices offer established producers. Fortuna Mining is expanding its position in West Africa with new projects. Kobo Resources, meanwhile, is approaching an important milestone: the first gold resource estimate for Kossou could be available as early as 2026. Although the current correction in the gold market increases short-term risks, it does not change the long-term value of economically viable gold deposits.