Hello, and welcome to Endeavour's Capital Markets event. Thank you for joining us today. My name is Martino De Ciccio, and I am Vice President of Strategy and Investor Relations. The past few years have been transformational for our business, and we're now about to take another important step forward. Over the coming days, we'll obtain our listing on the London Stock Exchange. We expect this will be a strong catalyst as we'll be able to appeal to a wider group of investors with a deeper pool of capital. This will see us become the largest pure gold producer on the premium segment of the LSE. Today's agenda has been put together with the goal of explaining how our business is poised to deliver strong shareholder returns across the cycles.
We have made this event as engaging as possible with virtual site visits to operations, 3D tours, videos, and guest appearances. For those who are new to the story, we'll be presenting our unmatched competitive advantage, our high-quality portfolio, and our exciting growth pipeline, as well as our ESG strategy. For those who are more familiar with the Endeavour story, we'll be providing an update of our integration of our recently acquired assets, our five-years outlook, as well as presenting our new capital allocation framework, which will highlight our enhanced focus on rewarding shareholders. Before we get started, I'd like to draw your attention to the disclaimer and forward-looking statements. Now I'd like to welcome Sébastien.
Thank you, Martino. Pleasure to be with you today on the cusp of our U.K. listing. This moment is the culmination of several years of hard work and marks the full turnaround of our business. Given that our business has significantly changed over the last few years, I thought the best place to start would be to look at our footprint across West Africa, where we've put together a great portfolio of assets. We now have seven operating mines, six development projects, and one of the largest land positions in the underexplored West African Birimian Greenstone Belt. Our growth has elevated us to senior gold producer status globally. Most importantly, it makes us the largest gold producer in West Africa, which has now become the second-largest global gold-producing region. As we will cover in the next section, this gives us unmatched competitive advantage.
Given the rapid change in our business, I thought it would be interesting, with the next few slides, to give you a brief overview of our positioning against peers. While we are a senior producer based on production size, we're particularly proud of our cost structure related to our peers. Our position on the cost curves ensures that we are resilient across cycles with the ability to self-fund our organic growth while maintaining a strong shareholder returns program. Our cost structure is helped by our strategic focus in the region, which allows us to save costs and realize material synergies, including on supply chain and people. We're proud of the company we've built, and we believe that we are very attractively positioned within the sector. Our capacity to produce at low cost is supported by the geological potential of West Africa.
We have focused ourselves on building high-grade mine and discovering high-grade resources, which has led to an increase in our group average reserve grade. At 1.87 grams per tonne, our grades are more than 30% higher than the global average reserve grade. This enhances our profitability and makes us more competitive in low-price environments. As you see here, a higher-grade profile also contributes to a lower environmental intensity. Our business is underpinned by access to renewable energy sources and relatively green grid power sources and operational efficiency. The chart indicates our relative position on emissions intensity, which we are focused on improving. Our operations already outperform many in the sector, but being good isn't good enough. We're currently exploring several alternatives for further reducing our environmental impact, including investments in solar power.
Our target is to continue to reduce our emissions intensity and keep our position among the industry leaders. Next, let's move on to our relative valuation benchmarked against other senior gold companies. We're trading at an attractive price to cash flow multiple and have the highest free cash yield in the sector, which we believe is because the market has yet to factor in the free cash flow generation of the new company we've created in such a short period. Also, as we will show you later on, Endeavour is a business with embedded growth options. Our goal has been to run our business like any other business, regardless of the industry we are in. Given the decisions we have taken, we are proud to be able to compete for capital, not only within our own industry but against other sector.
We didn't want to repeat the errors made by others in the last bull run, where companies focused on growth for the sake of growth. Costs rose, and shareholders did not see much benefit. Today, the industry is in much better shape. In fact, the best it's ever been. Gold miners are generating healthy cash flows, are paying dividends, building up their balance sheets, and are focused on improving the quality of their portfolio rather than only chasing growth. This bodes well for our industry, which is small compared to other sectors. We, of course, all need to remain disciplined. Before moving into the description of our business, we thought it would be interesting to remind you why we are so bullish on West Africa.
We've been building up our competitive advantage in the region for the last five years and now have reached a status where I believe that this competitive advantage is unmatched. We truly believe that this creates a sustainable competitive advantage for our business, which will be able to reward shareholders for many years to come across cycles. From the stats you see on this page, the opportunity for the gold sector and Endeavour in particular in West Africa is truly exceptional. West Africa is the second-largest region for gold production globally and was the top region globally for new gold discovery over the past decade. Endeavour's track record of successfully building and operating operations here over many years sets us apart. We are now the largest producer in each of the three countries where we have operations. We account for 20% of the total exploration spend in the region.
Moreover, the $2 billion of investments made in the region over the last five years by our mines and projects has created sustainable value for local communities and governments, which now gives us a strong social license to operate. You can see here how production has been growing in the region over the past 30 years, from less than a million ounces in 1990 to over 12 million ounces today. While most of the production has historically come from Ghana, you see here that most of the recent production growth has come from Burkina Faso, Côte d'Ivoire, and Senegal. This is why we're focused on these countries and are now the largest in each of them. We expect West Africa to continue to grow faster than other regions in the world, helped in part by the significant exploration spending we have planned over the next five years.
Our competitive advantage starts with the region's significant underexplored geological potential. This is a high-growth region where Endeavour is exceptionally well-positioned to deliver growth for our shareholders. Let's now shift to look at gold production by region. While West Africa is the second-largest region now, with continued investments, we anticipate West Africa will overtake China as the largest global producing region for gold in the near future. Given the golden opportunity in West Africa, six out of the top 10 senior gold producers have a presence in the region. Given you might think that we're a bit biased, given our exposure to the region we thought it would be interesting to also hear it from someone else who has significant success in West Africa. In fact, this person built the blueprint on how to operate in the region, and today continues to focus on the region.
Mark Bristow, who is now the CEO of Barrick. Over to you, Mark.
West Africa is one of the most prolific gold regions. I call it a province, the Birimian of West Africa, and it's delivered more than any other region around the world when it comes to new discoveries. I built Randgold Resources on the back of the West African Birimian gold potential. When I started in the early 1990s, it was risky, much more risky than it is today. I've always said that, for instance, Mali, which is the very foundation on what we built Randgold Resources, has always been a country with risk. It worried me most, but it's the country that's delivered the most as far as our exploration success goes. When you operate in the emerging markets, and in particular the Sub-Saharan region, you can only really prosper and be successful if you have a license to operate.
It's a very complicated environment in which to operate, and you need a license to operate. Certainly, we in Randgold Resources are now Barrick. It took us decades to earn that license, and again, we would never have done the deal with Sabodala if we didn't believe and then encourage the onward consolidation with Endeavour. We would have never done that if we didn't feel those two companies had the ability to operate with a real license to operate in West Africa. I'm a big believer in consolidation of the industry. Barrick-Randgold merger started that process. I've been talking about it for years now, and then we led the consolidation of the Nevada assets. That's the Newmont and Barrick Nevada assets, which have been talked about for a long time. Never really happened, to create the Nevada Gold Mines joint venture.
Subsequent to that, we had a number of consolidations in the industry. Massawa took a decade to really bring to account. The big debate around Massawa was it was a significant deposit, but we had Sabodala right next door, and I don't believe that you end up building A big mistake in gold mining is that we build mines right next door to each other, and we don't really utilize the capital base. It's got a fantastic bit of infrastructure. It had everything that you need to process the ore in Massawa initially, and then you could add a bit to it. It made sense to partner with Teranga at the time and join all those deposits together and process them through one processing facility. The Endeavour consolidation in West Africa was always an inevitable occurrence.
I've spoken to Sébastien, the CEO of Endeavour, many times over that consolidation. He started it, and I was privileged enough to be able to help Endeavour consolidate further. Now we have a real West African-focused gold mining company, which really supersedes the Randgold brand. Endeavour now listing on the London Stock Exchange again, creates another significant vehicle for investors to invest specifically into West Africa.
Thanks, Mark. What has been great is that the operators in the region don't really see themselves as competitors. It is our common benefit to help each other out and to promote West Africa. Moving next, you'll see that within West Africa, Endeavour is the largest producer overall. While focused on West Africa as a region, given its highly prospective ore bodies, Endeavour is diversified across multiple countries and seven producing assets. Our leading position in the region helps us maintain strong support and alignment with host governments on key issues such as security and permitting. We continue to view our host governments and communities as partners, delivering value for all. We are well-positioned to continue to support our social license through ongoing programs to improve the lives of employees and other community stakeholders in the areas of our mines.
Our operating model is at the core of our competitive advantage. It is unrivaled because of the size we have in the area. Our scale allows us to set ourselves up in a different way to peers. We are not trying to manage mines based out of Perth, Vancouver, where it takes several days to get to sites. We have a regional office in Abidjan in Côte d'Ivoire, where our group support functions are located. From here, our teams are able to reach all of our operations within a few hours using the airstrips built at each mine site. This allows us to bring both people and critical supplies to site on short notice, as well as to export gold for sale in a straightforward manner. This system pivots around the mine general managers who are empowered to make decisions with the support of our strong group support functions.
We also gain significant benefit from our centralized technical functions, which can rapidly share best practices across operations, most of which rely on relatively similar technology and layout. This strong operating model has yielded strong results. On the top of this graphic, you can see that our safety performance continues to significantly outperform the industry, showing how we mine safely. This is often a representation of how well a mine is run. Despite this strong safety approach, our objective is not just to be better than the average, it's to bring this number to zero. On the bottom of the slide, our operations have performed exceptionally well, with Endeavour meeting its annual production and cost guidance for each of the last eight years. This is very important to us.
Our goal is to remove the operating uncertainty so that investors can reap the benefits of leverage to the gold price and our growth. The next slide provides some additional detail about our exploration spend across West Africa. A total of $5 billion has been spent in the area over the last 10 years, accounting for approximately 10% of the global exploration budget. In 2020, the region received more exploration dollars than all but Australia, Canada, and the U.S., which are the sources of much of global exploration funding, and as a result, receive a disproportionate share of spending. Given that exploration spend often foreshadows future production growth, West Africa has the potential to continue to be a large producing region. Endeavour is at the forefront of driving that growth. Here you can see that the industry has been investing in West Africa for a good reason.
It ranks as the first globally for discoveries with nearly 80 million ounces discovered in 10 years. This region is significantly underexplored compared to other regions, which leads to attractive exploration leverage. Our stronghold in the region also positions us for exploration success. The key here is the relatively unexplored nature of West Africa, and particularly Burkina Faso and Côte d'Ivoire, which account for 60% of the total greenstone belt, but only 30% of current production. This is changing rapidly, with 50% of total West African exploration spend now targeted on Burkina and Côte d'Ivoire, where Endeavour accounts for a significant portion of investment. As you can see, we have a great position in two of the most prospective belts in the region, which are the Ity and the Houndé belts.
Here you can see our position in the Ivorian portion of the Ity greenstone belt, where we have exploration permits covering the full 125 km Ity trend, including the Ity mine permit area. Outside of the mine permits, there are six additional exploration targets already identified by regional scale exploration work and which are being evaluated. It was a very competitive process to secure these tenements, but given our first-mover advantage and operating track record, we were the obvious partner of choice. Next, you can see our permit locations in the Houndé belt, as well as the recently acquired Wahgnion area on the Banfora greenstone belt. Our well-consolidated land package includes 20 deposits and at least eight identified exploration targets. This land package would be the equivalent of controlling most of the Abitibi Belt in Canada.
I would not be surprised if in the not-so-distant future, there would be a mine every 50 km or so in this belt, given its huge potential. By being in the right region and having a good team, we've been able to achieve extraordinary efficiency with our exploration dollars, with more than eight million ounces of gold discovered through to the end of 2020 at a cost of less than $25 per ounce. This places well on track to reaching our goal of between 10 million-15 million ounces of new discoveries by the end of 2021. This was an aggressive target initially set in 2016, which at the time represented two times our depletion. We wanted to bring accountability to our exploration efforts.
Just as our operations team is accountable for production and cost, and our project team is accountable for CapEx and timeline, our exploration team is accountable for the dollars spent, discoveries made, and quality of those ounces found. Given the new assets in our portfolio, we are working on a new five-year exploration target, which we expect to publish in September. Now, I just mentioned our project team. We have built four mines over the last decade with Ity, Houndé, Agbaou, and Nzema, all constructed on time and within budget, while also achieving zero LTIs during construction. The region has been a very favorable environment in which to build new mines. We've had success because the geology is simple, the terrain is simple, infrastructure is good, and the region is very mining friendly. This means that mines can be built in under 18 months, as we have done.
While a good portion of our management is French, which helps when dealing in French-speaking West Africa, we also like the region beyond the geological potential because it is a favorable mining jurisdiction. Collectively, the countries in West Africa have taken proactive steps to create a stable environment for investment. The countries in which we operate are part of an economic and monetary union with a common currency, stable fiscal and monetary policies, and a common central bank. The mining codes in the region are all stable and balance the sharing of profits between miners and the state. Because the royalty rate is based on a sliding scale based on the gold price, it means the governments are also benefiting from the current higher gold price environment.
Lastly, because the mining sector doesn't represent the bulk of the country's GDP, this means there is less pressure on the sector as opposed to other development countries whose income is mainly driven by mining. This creates a good operating environment. To further speak about the mining sector within the region, we invited the Minister of Mines of Burkina Faso to say a few words.
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Thank you, Mr. Minister. This graphic now shows the development timeline for our key internally developed deposits, including the Kari area at Houndé and La Plaque at Ity, as well as the Fetekro project, where we are currently completing a DFS. In each case, we drilled the discovery hole during 2017 with the Kari area at Houndé reaching production the most quickly following the award of the permit in 2020. At Ity, we anticipate commencing production from La Plaque during 2021.
At Fetekro, a greenfield discovery, we've generated a resource, upgraded it to a reserve, and advanced to a stage where we will have a construction-ready project by the end of this year, leveraging our in-house teams and flexible plan designs, which are able to be rapidly modified to fit various project requirements. This demonstrates our proven track record of quickly moving from first discovery to production within three to five years. This is unmatched across the globe. We can move this quickly by leveraging the benefit of the mining-friendly jurisdiction, quick permitting process, long-standing partnerships, and of course, the quality of our internal teams. Here you can see how all these points come together to create the competitive advantage I mentioned earlier, where we have a dominant presence in the world's second-largest producing region.
Our scale position allows us to realize benefits from our operating model, and our teams have an exceptional track record for meeting or exceeding production, cost, exploration, and development targets over the last eight years.
That's a strong case for West Africa. You heard it from Sébastien, but even from our guest speaker, Mark Bristow, CEO of Barrick. If you want more information on the region, I invite you to check out our fact sheet and our most recent sustainability report, or of course, by contacting us directly. It's been very pleasing to see Sébastien describe our resilient business. I remember five years ago, we were marketing with investors, we were saying, "Don't look at the portfolio we have today, but rather look at the potential we have and where we want to go." I will now invite Sébastien to describe that journey.
It's been quite the journey. This all started back in 2016 when we joined Endeavour. At the time, we took a look at Endeavour's shareholder register, which had no blue-chip investors. We went out to ask them, why? This gave a clear roadmap of the portfolio that would be both appealing for them and for us. Our objectives were to create a high-quality portfolio resulting in sustaining costs below $900 per ounce, one that could generate good levels of cash flow regardless of the gold price, be diverse across multiple countries and mines, have at least 10 years of production visibility, have a sizable production in the region to be able to leverage economies of scale, and focus on a threshold of a 20% return on capital employed. Ultimately, we wanted to be able to generate sufficient cash flow to reinvest in our business and reward our stakeholders.
Following five years of portfolio turnaround, we have now reached this objective. We increased our production visibility from four years to now over 10 years. We are producing nearly three times more at a cost that is slightly less than in 2015, with most importantly, a return on capital employed that has increased fourfold. Our journey so far has been split up into three distinct phases. Our first four years were focused on organic growth and divestments. Our strategy was built over four key levers. First, be good operators through operational excellence, which has seen us deliver guidance for the last eight years. Second, on project development, where we have invested over $1 billion to build Houndé and Ity. Third, on unlocking exploration value, which has seen us discover over eight million ounces at less than $25 per ounce.
Lastly, by an active portfolio management, which has seen us divest four non-core assets. Last year, we focused on strategic consolidation, having purchased Teranga and SEMAFO to leverage our strong West African operating platform. We significantly delevered ourselves, allowing us to start our shareholder returns program, which saw us paying our first dividend at the beginning of this year. Given the organic growth potential within our portfolio, we entered this year another organic growth phase. The key difference, however, between the first phase and this one is that now we are able to self-fund our own growth through the cash flows being generated by our mines, while also being able to deliver shareholder returns. Existing shareholders will certainly recognize this bubble chart. The bottom axis here is mine life, whereas the right-hand axis is all-in sustaining cost.
Put simply, our strategy has been to get assets into the bottom right box. This approach is focused on owning and running the most cash generative, highest returning mines that are long life and will generate the best returns whatever the prevailing gold price. Assets that don't fit our core criteria are divested, as shown with the white circles. Looking forward, we will continue to aggressively explore with a strong focus on our recently acquired assets at Sabodala-Massawa, Wahgnion, Mana and Boungou. To extend their lives beyond 10 years to ensure they are contributing to our overall portfolio quality on a sustained basis.
Thanks, Sébastien. Having referred to that bubble chart often, I can vouch that it has been very useful to explain our strategy. Before we take a tour of our assets with our COO, I'd like to touch upon the integration of the recent SEMAFO and Teranga acquisitions. We have rapidly integrated those assets within our West African operating platform, and as mentioned during our Q1 webcast, we're on track to realize nearly $100 million of synergies. One of the key factors for our successful integration has been the people aspect. Our staff has grown by 80% over the last year alone.
I therefore sat down with Henri, our EVP of People, to discuss this in more detail, and particularly how we approached making our new employees feel part of the Endeavour family. For those of you who haven't met Henri, he is based in Abidjan and is probably the EVP who spends the most time on-site. You've integrated two businesses last year. Our workforce has nearly doubled. What's been the biggest success factor in being able to integrate so many people so quick within our culture?
The keyword is humility and not trying to just copy-paste what you did before to the new acquired asset. We have started by clearly understanding the culture of the assets. They operated in a different way at ours. It was not about to tell them, "Guys, you did that before. It's going to change now." We have adjusted our operating model, did not change its DNA because we strongly believe that we need to have a decentralized model with strong policies, guidelines to have consistency across the group and to make sure that we deliver our objective. More importantly is to create a common culture and common references, and for the people and for the workforce to see all the opportunities that are linked by the fact of belonging to a larger group. We just want to take the best out of the two worlds to create one world.
Social license to operate means a lot of things to a lot of people. What does it mean from an HR perspective?
It's something that we have to deliver on a daily basis. It's not only a concept. The way I see it starts with the recruitment strategy. We have very long processes and policies on the matter, but I would summarize it by the closer, the better. We always try to promote people internally first when we have a vacant position. The interest of being a group because it increases the number of opportunities within the group, which means a lot of internal communication and HR speaking to each other so as to identify potential candidates to take another position in another site and to be promoted. Then, we hire externally, but we first hire in the country. That's only if we do not find that we enlarge the search in West Africa or internationally.
How do you make this happen?
First, we have a team in Abidjan, the regional HR team that provides support and assistance to mine sites on daily issues, daily matters, as well as making sure that our strategic pillars are well applied across the board. The strategic pillars, there are four. One is Endeavour Care, which was created three or four years ago, and the original intention was to make sure that each and every employee is covered by a medical insurance, him, her, and the family. That was the first step, and now we have enlarged it to make sure that we have a positive mindset across the board around health and safety. We have a lot of communication, and we work together with the HSE Department to make the Endeavour Care program the one that highlights everything that needs to be done to make sure that we operate safely.
The second program that we have launched is the Endeavour Next program. It's to make sure that for every critical position, we have identified successors and a program to train them, to make sure that they are ready to take the position. It's called the Endeavour Academy. We have a lot of ambition around the Endeavour Academy program, which is about partnering with schools. It's about soft skills, hard skills, knowledge transfer, skill transfers, and we are going to launch soon an online platform on the matter. At the end, I think perhaps for some people, this is the most important program, which is the Endeavour Rewards program. It's to make sure that we pay the people the right amount, and we have the right compensation scheme in place. Best salary, short-term incentive plan, long-term incentive plan, all aligned with the objective of the company.
That's where you put in place the short-term incentive plan program that cover every employee within the group from the CEO to the lowest level of the organization. We have consistency across the board, and we try to have this consistency being ensured by a strong HR network that communicate to each other so as to break down barriers between mine sites. We don't want to be the sum of the parts. We want to be a group. We have a duty to hire locally, and we are very proud of, for example, we have reduced the number of expats at both Boungou and Mana by 40% in less than a year. The objective is not to oppose expats versus nationals. We are all Endeavour employees.
When you are an expatriate, we believe that you have an additional duty to train, to mentor, to transfer skills and knowledge to identify successors. It's a very important part of our HR strategy, and I think it's a very important part of our social license to operate.
How would you define our culture today?
We have a very diverse team workforce, 52 nationalities, different origins. We wanted to articulate what are the main features that define Endeavour. The four Ps, partners, pioneers, proactive, performers. Every time we take a decision, within the decision-making process, we need to make sure that the four Ps are in the room.
Henri , you spend a lot of time on site, but I think the person who now spends the most time on site is Goldie.
Goldie. Goldie is our mascot, and Goldie is a vector to communicate things in a positive way on mine site. Not to just tell people that they are prohibited from doing X and Y for safety reasons but communicate in a much more positive way. It's a kind of a funny character that is everywhere across the board and that give a kind of a tone, positive and nice tone at Endeavour.
You mentioned diversity earlier. How is this integrated within your HR strategy?
That's a very important point, Martino. I think it's very important that everyone within the organization, not only HR, knows that he has to deliver on the matter, on diversity. Diversity cannot only be the matter of HR. It should be the matter of everybody. We have a lot of communication around that. Every month, monthly reviews, business reviews. This is part of the KPI that we track. This is part of our incentive program as well. For example, last year, we targeted to reach 10% of our workforce being women. We were at 8%, so it was a kind of an ambition, a big step, and we managed it. On top of reaching the 10%, internal communication by just saying, everyone is incentivized on the fact that we need to reach that, sends a very strong message internally.
Now that the integrations are complete, what's next?
I think what next is just what makes our DNA, which is attracting, retaining talents. More importantly, I think, is to make sure that every employee at Endeavour, whatever his position or her position is happy in the morning to go to work. I think it's very important to have a very positive attitude, positive feedback from the people, and to have people making sure, knowing that they can grow, they can have opportunities with Endeavour, and that they have a future with Endeavour.
If you'd like to learn more, I invite you to watch the Meet Our People and Ask the Experts video series on our website. It's now time for the fun part. Let's travel to West Africa for Mark, our COO, to give us a virtual tour of our assets. Mark joined Endeavour in early 2019 following the successful build of Ity and Houndé. His arrival really marks the moment that Endeavour transitioned from being a project company to a producer focused on operational excellence. Mark has significant operating experience in Africa across both open pit and underground mines, as well as CIL, heap leach, and refractory processing circuits. Mark, over to you.
Thanks, Martino. Over the next 20 minutes, I'll take you on a virtual flyover of our portfolio of mines. Before I start, let me explain a little about how we operate. We have a very hands-on management model, and our executives are in West Africa frequently. It's so important to spend time on site and in the regional offices with the various teams. They've done an amazing job keeping our assets running throughout the pandemic and through the integration of both SEMAFO and Teranga. International travel is made easier by having our regional headquarters in Abidjan, from where we can get to six out of seven of our mines in under three hours. One really important aspect is the way we empower our general managers to run the operations and ensure we have the right balance of corporate oversight and support with mine level decision making.
We are also very proud to have three West African general managers, plus many more of our talented local professionals in senior roles on site and in the regional offices, as it is a priority for us to continue to enhance local opportunity and leadership. Safety will always be our number one priority. Whilst we are pleased with our strong safety record, we continue to strive to improve by focusing on leading indicators, including on the ground leadership and through workplace audits and task observations. I'm really proud of what we've achieved within our portfolio, including the integration of newly acquired assets over the past 12 months. Let me now walk you through our operating mines, starting with our flagship operation, the Sabodala-Massawa complex. Sabodala-Massawa is a great asset with the potential to get even better.
Something that really impressed me when I first visited was the self-sufficiency developed by the team after many years as Teranga's only asset. Some great systems have been developed through a predominantly owner-based approach to many aspects of the business, which aligns well with the Endeavour approach. We acquired the mine in February 2021 and worked to rapidly integrate the team and systems within our own operating platform. Last month, our general manager from Houndé transferred to Sabodala, which was part of a planned transition as the incumbent general manager had indicated his desire to stop expat work by the middle of the year. In 2020, Teranga acquired the adjacent Massawa permit, which hosts significant deposits of high-grade refractory mineralization, which is overlaid by free milling oxide ore.
This was game changing as the combined mining complex now has the potential to be a long life, low cost, top tier asset. Owner mining is undertaken with face shovels and 100-tonne trucks with multiple open pits and a central processing facility. The team did a great job in 2020 to construct a 30 km haul road and quickly establish mining at the Sofia pits at Massawa, which now represents a large portion of the feed. Following a number of stage expansions, the processing plant throughput has steadily increased from 2.4 million tonnes per annum at startup to 4.4 million tonnes per annum today and is currently equipped to treat oxide and fresh ore via a Carbon- In-Leach circuit. Despite being more than 12 years old, the plant is in good condition and achieves very good overall utilization.
The phase I expansion is underway and will allow for the processing of higher-grade Massawa ore more efficiently by enhancing overall carbon management associated with increased residence time, increased elution, regeneration, and electrowinning capacity, and finally, a gravity circuit to recover free gold ahead of the Carbon-In-L each circuit. As of late May, all civil works were completed and the first shipment of structural steel and plate work arrived, allowing assembly to commence on-site. The additional electrowinning cell is now being commissioned ahead of schedule. Phase I is on track for completion in quarter four 2021. Phase II of the expansion will enable processing of high-grade refractory ore. This incorporates a bio-oxidation plant to be located adjacent to the current Sabodala plant, as you can see here. A feasibility study is underway with a focus on several key optimizations, including improved geometallurgical modeling and enhancements to the processing flow sheet.
The timing of our Teranga acquisition was very important, as it allowed us to continue with the phase I expansion work and evaluate the phase II PFS outcomes ahead of commencing the feasibility study. We see an opportunity to further enhance the project relative to the design considered in the PFS and look forward to sharing the results later this year. We believe that there remains a significant opportunity to further enhance our reserves at the operation, which Patrick will now speak about.
Fittingly, our largest exploration budget in 2021 is at Sabodala-Massawa, where we plan to spend $13 million. The ultimate gain for us is similar to all our other operations, which is to increase the mine life as close as possible from 10 years, while adding high-grade ounces that will help to ensure the plant is operated to its maximum capability for as long as possible. This is what we already achieved for Ity and Houndé, and that's our goal for all the recently acquired operations. In the short term, at Sabodala-Massawa, we are mainly targeting non-refractory ore resource. This will allow us to optimize the mine sequencing and grade profile to maximize return from the phase I expansion that's supposed to be completed later this year.
On the longer term, we are also looking to add to the inventory of refractory ore sources, and this will provide additional feed for the proposed phase II expansion.
Moving to Ity, we are incredibly proud of how the mine looks today, how well it is operating, and the reserves that we have, which is a large contrast to when we first acquired a stake in the mine in 2012 with only two years of reserves. Today, it has a very bright future with a capacity to produce at 250,000 ounces per annum over at least 10 years. Ity has been in operation for more than 20 years, starting as a small heap leach mine. Given the exploration success and change of thinking towards a higher capacity Carbon In-Leach plant, we were able to transform the mine completely. The plant was commissioned in early 2019, and following a series of upgrades, is now operating in excess of five million tonnes per annum.
The topography of the region is undulating, densely wooded, and has the Cavally River snaking past many of the deposits. This requires some very careful planning for the mine layout, and the projects team have done a great job to accommodate the plant, TSF, and other facilities in a very compact footprint whilst enabling scope for exploration to continue around the existing pits. We have now successfully completed four small river diversions to enable us to access and expand some of our pits. Ity is much more of a processing operation than a large mining operation, with a low strip ratio and several smaller deposits. Achieving the most optimal ore blend to the processing plant is critical given the many ore types and sources. The tailings storage facility is designed by a reputable consultancy and is fully lined with both clay and plastic sheeting.
The walls of the dam are raised in increments every one to two years, which includes extending the clay and plastic lining. The TSF also has a leak detection system, monitoring bores, and piezometers in the walls. Every year, our TSFs are inspected by the designing consultant, who is also known as the engineer on record. La Plaque is a new discovery approximately 8 km south of the processing plant, with a higher average grade than our other pits. Now that the haul road has been completed, grade control drilling is well underway, which places us in good position to start mining later this year. We've been very fortunate at Ity to have so many exploration targets, which leads to extensions and merging of pits, some of which only become possible to drill once river diversions are completed.
This means that our planning and operations teams have to be very adaptable to the changes and ensure that there is always an eye to the future with placement of waste dumps and staging of pit cutbacks. As we begin La Plaque, we are already looking ahead at the next discoveries, which Patrick will detail.
Ity is really a great example of how our exploration platform can perform while achieving very exciting results. We have been adding over 2.1 million indicated ounces between the end of 2016 and the end of 2020. This has allowed us to extend and expand the production profile while keeping all the costs quite low. On the right, you can see the numerous targets that still remain on this extensively mineralized belt, which we control fully. Our total budget at Ity for this year is going to be $9 million. We are going to spend this money to replace depletion and to maintain a minimum of 10 years of mine life while opening and delineating nearby new targets.
We think the best opportunities to do so in the short term are by continuing to extend the La Plaque and West Flotouo deposit, the latest one being our latest discovery, and also to do additional work around the Daapleu area. With the recent new mine plan and the new project added, it's a bit lower down the exploration priority list now, but due to its quality, we still have a very active program in Ity. In addition, the anticipated small diversion of the Cavally River are anticipated to make some additional lateral and down-dip extension of Colline Sud accessible. It will be the same for deeper Bakatouo and Walter along the river.
Houndé is another great example of our approach to exploring, developing, and operating assets. The mine was developed entirely during Endeavour's ownership from initial studies through to permitting and construction and began operations in late 2017. As far as mine layouts go, Houndé is one of the best examples and benefits from the largely flat topography, though credit goes to the projects team for the quality of the design and construction. This has contributed to the successful execution of the project, which was completed on time and on budget, with the plant now processing at 30% above nameplate. Open pit mining is done from multiple deposits with excavators and 100-tonne trucks, with the drilling and blasting activities contracted out. Following debottlenecking and minor upgrades, the Carbon-In-Leach plant now operates in excess of four million tonnes per annum.
We recover up to 30% of the gold by gravity, with the remainder through the CIL tanks, where the gold is recovered onto carbon before going through the elution and electrowinning process prior to smelting to form gold bars. Houndé is now in its fourth year of production, we are very pleased with how the team has matured and improved across all aspects of the operation. With the addition of the Kari deposits last year, we have even more mining and processing flexibility. Given our commitment to sustainability, we're also looking into commissioning a solar plant, which will provide low-cost, renewable electricity for the mine and reduce our diesel consumption. This will be a really exciting development for the group, as we will then look at options to repeat this in our other operations. There are significant opportunities to extend the Houndé mine life beyond 2031.
These include the potential integration of the recently acquired Golden Hill property, which is around 30 km away. We also see additional scope to continue to add ounces, just as we have already done with the Kari area, through the discovery and development of satellite deposits.
Houndé is another very good example of our exploration success over the last three years, with over 2.6 million indicated ounces added since the end of 2016. Most recently, we have added high-grade resources at Kari Pump, which have significantly improved the overall mine plan of the mine. This year, we've got a $7 million exploration budget, which will be mostly focused on replacing the depletion as usual, but also completing exploration over the entire remaining Kari area, as well as the entire Vindaloo area. We will also be working intensively toward the north of the exploration license, where we will be addressing other attractive targets such as Mambo, which is currently being actively delineated.
The Mana mine has been in operation for over a decade and was acquired in 2020 as part of the SEMAFO acquisition. Mana is a combined open pit and underground mining operation, feeding a central CIL plant from an adjacent open pit complex and an underground mine 15 km to the southeast. Production commenced in 2008, with nominal capacity increasing over time to the current throughput of around 2.8 million tonnes per annum. The plant is well-maintained and operates very consistently. Open pit mining is done by excavators and 100-tonne trucks, with half of the fleet owner and half contractor based on the SEMAFO strategy at the time. Since the acquisition, we've focused on optimizing the asset, which started by bringing in an experienced general manager with over 40 years of open pit and underground experience.
We have reduced the size of the expat workforce and have shifted the focus to really empowering the site team. Production has benefited from the ramp-up of the Siou underground operation last year. Following a detailed review of the Wona North open pit cutback, and given the success of the Siou underground, the decision was taken to forego the next cutback and rather to develop this as an underground operation, which we expect to start next year. Open pit mining will continue at Wona South until 2022, after which time the mine will revert to two underground mines until any further open pit satellite deposits are proven. Mana is also benefiting from a fresh pair of eyes under a new exploration team, and Patrick will describe their focus.
For Mana, we have a total exploration budget of $8 million with the objective, like everywhere, to increase the mine life closer to its 10 years. We still see a lot of additional opportunities remaining. In 2021, we are going to concentrate our exploration effort on open-pittable oxide target, which are within a reasonable trucking distance from the mill. The main area we are going to concentrate in 2021 is Maoula, which you can see is located at the boundary between the exploitation license to the southwest of Mana, as well as looking for extensions in the Siou North and South areas. In the Siou underground area, we see an opportunity to extend mineralization at depths and to consider a much larger open pit concept.
Our next asset is the Boungou mine, which we acquired during 2020 and where we recommenced mining shortly thereafter. As with Mana, following the acquisition, we put in place a new general manager who previously ran our Ity mine and has a wealth of experience mining in the region. Under his leadership, the team at Boungou has really taken a step up, and it is pleasing to see the results. Given its location, we've put in place a comprehensive security plan which leverages our strong relationships with the government of Burkina Faso and regional security forces. We have invested significantly in mine site security, including the construction of an on-site airstrip, new facilities, and other measures. This allowed us to restart mining operations in quarter three last year, utilizing a very capable West African mining contractor.
Open pit mining is fully contracted and utilizes a number of excavators and 100-tonne trucks. The 1.3 million tonne per annum carbon-in-pulp plant was commissioned in 2018. It also has a gravity circuit that recovers up to 50% of the gold, which is a very high percentage. The mine consists of one large open pit and two smaller adjacent satellite pits. Much of the optimization potential at Boungou is based on exploration success, which will start along strike of the existing pits, then expand further into the exploration permit in parallel with enhanced security measures.
At Boungou, we see for 2021 the best opportunities lying just nearby the mine. Our total exploration budget at Boungou for this year will be around $7 million. Our primary goal is also to extend the mine life toward our 10 years mine life target by testing all the remaining deposits extension around the existing mine and open pits. We also see the potential to modestly step out of the area of the Boungou North, Natougou Northwest, and Natougou Southwest target.
Moving to Karma, which is our smallest mine in terms of ounce production and also has the shortest mine life. This is a low-grade heap leach which commenced operating in 2016. The team has done a great job to keep all-in sustaining costs below $900 per ounce for the first five years of production. The operation is well led by a Burkinabè general manager with predominantly local workforce with a strong drive to succeed. Given the low grade, efficiency is key, and the team are doing a great job in this regard. Open pit mining is done using excavators and 100-tonne trucks, mining mainly oxide material with low blasting requirements. Last year, given the short mine life, we transitioned the mine fully to contract mining, which has worked really well.
As a heap leach operation, all mined material is stacked on the lined leach pads, which represent the final storage location for the processed ore. We are investigating a high-pressure leaching option once stacking has been completed in order to recover any remaining gold locked up in the heap and ultimately to flush out any residual cyanide prior to closure of the leach pads, which will be rehabilitated in situ. There is definitely good exploration upside at Karma, with potential to have many small deposits along with sulfide ore at depth. The reality, however, is that this is not a core operation for Endeavour with so much exploration focus on our other assets. Wahgnion is the youngest mine in the portfolio, having been commissioned by Teranga in the fourth quarter of 2019. Wahgnion has a Carbon-In-Leach plant which processes ore from four different open pit groupings.
Due to the size of the pits, mining is done with smaller excavators and trucks than used at our other mines. There are many small pits which require careful sequencing and placement of waste dumps, though this also enables us to backfill some of the pits with waste. Since startup, the plant has produced sustainably at 25% higher than design capacity, enabling a throughput of 3.6 million tonnes per annum. We are also using a contractor in the satellite pits to increase mining volumes to support the higher mill throughput. The operation is host to a number of prospective near mine exploration targets, so our focus is on identifying those ounces which will contribute to extending mine life and potentially increasing production through higher grades. The CIL plant was designed by Lycopodium, who also designed our Ity, Houndé, and Boungou plants.
It is very reliable and is equipped to process a combination of oxide and fresh ore consistent with our other operations in the region. One of the things that we are proud of at Wahgnion is how the team have managed the community relations and village relocations. By providing new land for farming and developing some intensive agriculture projects, we have been able to retain strong community support, which is really important to us. To meet the above nameplate throughput, we are focused on advancing the satellite pits with mining at Fourkoura underway and now early planning for Samavogo as well as ongoing resource drilling to optimize the pits and mine sequencing.
Before I talk about our plan for Wahgnion , a little about the history of the deposit. The mine was developed quite quickly and recently, and lots of pits were opened at the same time in order to feed the plant, which was running at 30% above the nameplate capacity. As a result, some of the deposits have only been drilled down to rather shallow depths and along a very limited length, and we think a significant upside remains deeper and on trend with existing deposits as they are known today. Wahgnion has been targeted with our second-largest exploration budget this year, with $12 million. You can see on the map that there are more than a dozen additional targets occurring within a reasonable hauling distance from the mill, including all those located immediately around the existing near mine infrastructure and deposits.
In the very short term, we are focused on Lafigué North and South areas, but over the longer term, a number of satellite deposits will also be targeted with a multi-year effort where we see significant additional upside potential.
As you can see from the footage, we have built an impressive portfolio of assets in West Africa over the last five years. The mines are well-constructed, and the teams that we have assembled are really doing a great job across all aspects of the business, from safety, environment, social and security, through to production and cost management. We truly believe in developing our people and giving them opportunities to take on more responsibility. This, in turn, has enabled Endeavour to grow the portfolio. I'd like to thank our team for their strong efforts last year to achieve guidance despite the challenging COVID environment. We are very proud to have maintained our track record of meeting production and cost guidance for the last eight years.
I hope you've enjoyed that virtual tour as much as I did. Thank you, Mark and Patrick. For those of you who would like more 3D visits, please look at our website. We have verified tours available on each of our mine pages. We also have historical operating data and financial data available in our analyst center. You heard Patrick speak briefly about exploration potential at each of the assets. He will now talk about the exploration methodology he's been following and take us through his most recent discovery, the Fetekro project in Ivory Coast . As background, Patrick has been with Endeavour since 2016. Before this, he was a core member of the La Mancha team after successes at both Areva and Total.
Over his career, regardless of what he was exploring for, Patrick has deployed a proven methodology, always surrounded himself with solid teams.
Thanks, Martino. I'd now like to spend a bit more time talking about our exploration strategy overall. One of our cornerstones as a company over the last several years has been our capability to add value through the drill bit. In other words, in the end, the only reason why we do exploration is because we can bring additional high-quality answers to the company bottom line at a much cheaper price than if we had to go and buy them on the market. That's all. Once these accountability rules are set, the core criteria here is to identify high-quality answers that would fit in with our portfolio management criteria and our capital allocation framework.
To date, our approach and deployed exploration strategy has resulted in the discovery of over eight million ounces of indicated resource since the end of 2016, and this at the cost of much less than $25 per ounce of indicated resource, which is at least three times cheaper than our West African peers and five times lower than the average cost of discovery worldwide. More broadly, we are looking to support our operation by maintaining a 10-plus year mine life, as well as identifying new significant standalone projects through regional exploration that will fuel our future development. We do this with a proven exploration and portfolio management methodology, which is based roughly around the conservative ranking and screening approach, which is completely similar to what is used in the oil and gas industry for a company scale, high numbers of exploration prospects.
We start with a tentatively exhaustive and large number of exploration targets occurring within our global exploration portfolio. We then filter all this through an exhaustive set of criteria down to our top best selected target. In that case, back in 2016, it was 40 Monte Carlo simulated targets that were the outcome of our exercise. Then we ponderate all these with a global probability of occurrence, which represent broadly the confidence we have in describing the quantity and the quality of the answers we are targeting. The overall result represents the quality and what could be expected from our complete portfolio while incorporating a balanced approach, including some high risk, high reward, and bread-and-butter type targets.
Once the mine requirement priorities are included within our exploration yearly sequences, the five-years exploration plan is delivered and associated with our related budget, so to match our yearly discovery ambition and KPI in terms of discovery cost per new indicated resources. Following the success of this method and exploration program since now four years, a new five-years exploration plan is currently being built and is expected to be published later on this year, and it will be based on the enhanced portfolio of the Endeavour asset. Back in 2016, our main objectives were not only to increase our flagship mine life up to 10 years, which we did, but also to bring to the company through greenfield exploration what could be our next standalone development project.
Fetekro is for us a great example of the success of our approach, where we have delivered an Endeavour-sized project with promising economics for an exploration investment of only $21 million since 2018. The Fetekro project has delivered through our recently published pre-feasibility study, strong economics with an NPV of around $500,000,000 at $1,500 gold price. This represents 23x return on exploration spending. As you can see in the video, the ore body is quite uniform, dips gently towards the southeast, and shows some pretty good lateral continuity of good-grade mineralization. It is amenable to conventional open pit mining because it simply starts at surface. We are continuing to explore the whole Fetekro package with our effort targeting right now and drilling in between Lafigué North and Center deposit, also drilling at Lafigué South, and also addressing other nearby targets.
We expect to increase the resource base later this year and incorporate this into our ongoing definitive feasibility study, which will be completed by year-end. We are very excited about our exploration program in 2021 as we have the largest exploration budget to date of between $70 million- $90 million. Brownfield exploration will indeed focus on the new mine acquired in 2020. Our greenfield priorities will indeed be around Fetekro, but also Afema, Bantou, Siguiri in Guinea, and around the Tanda- Bondoukou cluster in Côte d'Ivoire. We expect our 2021 exploration program to deliver and complete our last year of our five-year exploration plan and give us a headstart on our next strategic exploration one, which will be initiated by year-end.
Thanks, guys. I hope you are enjoying the presentation so far. We'll now take a short break, and we will see you very soon.
[Break]
Welcome back after that short break. Let's now continue. You've heard about our high-quality portfolio, and you've seen our assets and their potential. In order to deliver strong shareholder returns, we also need to have a strong social license to operate, which in today's terms is referred to as ESG. I will now hand it over to Sébastien to take you through some of the exciting initiatives we are doing.
Thank you, Martino. Being a trusted partner is an integral part of our business strategy. While ESG might be the current flavor of the day, this forms part of our social license to operate. It is not new to us. It has been our bread and butter for years and years, and I believe mining in emerging markets is one of the most impactful industries when it comes to ESG. Building infrastructures, access to water and electricity, education, health, and income generation projects are core to our social license to operate and make meaningful contribution towards improving people's life in these developing countries. This is one of the reasons why we are so passionate and proud of our business and why it makes such a difference compared to many other businesses.
As a leading global gold producer and the largest gold miner in West Africa, Endeavour's purpose is to produce gold that provides lasting value to society. Gold has long been prized in society for its beauty and as a store of wealth, and today it plays a critical role in the modern world, from widespread use in electronics to future applications in environmental management as we transition to a decarbonized world. As one of the largest producers of the metal, our starting point is protecting and promoting the people and places where our gold comes from. Our work is a partnership helping to create resilient and self-sustaining communities where people are equipped with the skills, knowledge, and expertise needed to prosper. We recognize the responsibility and the opportunity we have to support long-term social and economic development within our host countries and communities.
We set high standards for our ethics and governance, and we are trusted to unlock the full benefits of the material we mine for all stakeholders, from local communities, government partners, to our shareholders who are invested in its discovery and production. The essence of our purpose is captured in the emphasis we place on supporting long-term sustainable development and promoting a responsible approach to mining aligned with the United Nations Sustainable Development Goals. I believe this is how we can continue to support the wellbeing of our people and host countries long into the future, empowering the next generation of miners to develop new skills, support their communities, and create lasting value for all of society. So that is our purpose, but it cannot just be inspirational words. It has to be backed with actions, or it is meaningless.
Profits do not have to come at the expense of purpose either. For me, they are interlinked. A business with both a clear sense of purpose and an effective strategy should be profitable. Having a strong social license to operate and in turn being a trusted partner has always been at the heart of what we do at Endeavour. Now it has taken on an even greater imperative. The increased scale of Endeavour has reinforced the need to consolidate our initiatives and create a new integrated approach across our business so we can amplify our efforts and deliver even greater value to our local communities and host countries. We can't be all things to all people. We need to concentrate our actions on those key priorities we believe will have the most impact on the social upliftment and economic development of our host countries.
We've centered our integrated ESG strategy around two strategic key pillars, investing in our host countries and protecting the environment. These two pillars are supported by a strong foundational framework for governance, and this combination helps guide the success of our initiatives in ESG. We've designed what we believe are the proper ethical frameworks, along with transparent governance structures, to give our initiatives the greatest impact at the right levels. Our social investments in our host countries are prioritized in the areas of health, education, access to water and energy, and economic development. With regards to protecting the environment, we will focus on tackling climate change, water stewardship, and conserving biodiversity, as well as plastic waste, which is a particular issue in our local communities and host countries. Having an ambitious ESG agenda is all well and good.
We are miners, we are experts in mining, not socioeconomic development. It's important we leverage our size and partner with global experts who can bring the required know-how in these different areas to help us reach our goals. Our ambitious ESG agenda goes beyond just our immediate communities. We see an opportunity to deliver meaningful impact in our host countries as a responsible global citizen and to support government sustainability agendas. Our ECODEV fund is one such example of how we are doing things. I'm also proud to announce that we have now established a new Endeavour Foundation, which will be our primary vehicle to regroup and implement our sustainability projects at the regional and national levels. You can see more detail on this and on all our ESG activities in the detailed presentation on our website that accompanies this capital markets event.
You can also read more in our recently published sustainability report. For the remainder of this section today, I just want to focus on a few key areas. This, I think, will give you an idea of how we think about ESG and the approach that we take. Let me start by diving deeper into the social investments and contributions we make in our host countries. As I mentioned, our priority focus areas are health, education, access to clean water and sanitation, and economic development. Without good health, quality education is hard to achieve, and without these two, social and economic development is impossible. Progress can only be achieved with the strong foundation of a healthy and educated workforce and population. Taking health first. The coronavirus pandemic has really shone a light over the past year on the impact that health can have on economic development.
COVID may have made the world wake up to this, but it has been an under-reported reality in many parts of Africa for many years. While there were nearly 100 million COVID cases worldwide last year, each year, there are around 230 million cases of malaria. The disease kills a child every two minutes, and these deaths are particularly prevalent in West Africa. Yet they are preventable. We've made reducing the number of cases at our mines and in our communities a priority. Malaria should not be seen as something that is normal or an everyday occurrence. Our focus has been on raising awareness and on taking steps towards prevention. Most notably, we are seeking to control the vectors that help it spread, mosquitoes, through regular spraying programs and raising awareness of the simple steps people can take to protect themselves and their families.
Last year, we had considerable success, and we are able to reduce malaria cases by 36% compared to 2019. Our Houndé mine has seen the best results so far, with an 80% reduction between 2018 and 2020, and we have ambitions to cut these cases even further this year. To ensure everyone across our business is aligned, our 10% reduction target forms part of the group-wide bonus for this year. In order to do more on malaria for our communities, we are working with labs and innovative companies to find the next big action we can deploy to further reduce malaria cases. Of course, one of the drivers of malaria is poor quality water and sanitation, but access to clean drinking water and basic hygiene facilities goes far beyond that. It prevents a host of other health impacts, such as typhoid and dysentery.
At the moment, only a quarter of homes in sub-Saharan Africa have their own hand-washing facilities with soap and clean water. Even fewer, just 18%, have access to their own clean sanitation facilities. As part of our efforts to address this issue, I am really pleased to announce our newest partnership in this area with the One Drop Foundation. One Drop was established in 2007 by Cirque du Soleil founder, Guy Laliberté. I am sure you all have seen one of the Cirque du Soleil shows. Magic. Guy Laliberté's ambition is to ensure that all communities around the world have access to safe water supplies. We are proud to support this ambition in West Africa and work with the One Drop team. Our three-year partnership will start with a focus on the Cascades region in Burkina Faso, where our Wahgnion mine is located.
It is targeted at supporting women, firstly by providing access to water and hygiene facilities, and secondly by raising awareness of clean hygiene practices so that we can change behaviors and break the cycle of disease. This is not something we could have done alone. Again, we are miners. It's just an example, though, of what a partnership approach can achieve by bringing together the expertise on one hand and the resources on the other hand to make a difference. We adopted the same approach when looking at education. We know the importance education plays in social mobility, great strides have been made in this across the world by inter and non-governmental organizations. However, West Africa particularly suffers from poor access to education. In countries with young population, such as those we operate in, this poses particular problems in hindering gender equality and economic development.
It is difficult to establish the skills and knowledge required for countries to develop their economies when less than half of children in sub-Saharan Africa are being exposed to secondary education. We are working with a number of institutions across our host countries to promote education, particularly in technical and scientific subjects, and with a particular focus on girls and women. This involves providing scholarship and work experience to ensure future generation entering the market have the best possible opportunities to shape their own futures and those of their countries. Since 2017, we've awarded 114 scholarships and offered over 550 young people internships and the opportunity to start their career development. With our recently acquired assets, this program will be expanded considerably over the coming year. Our ultimate goal is to stimulate and promote economic development.
Improvement in health and education that I have just discussed can certainly play an important role in supporting that. So can our own direct involvement. For us, this starts with our workforce. We now have over 6,500 employees, of which 95% are nationals. Growing and developing our local talent, both men and women, is core philosophy of ours. I'm proud to see so many highly talented West Africans thrive and advance in our business. Our senior management now comprises approximately 60% African nationals. We've also made good progress improving the diversity of our workforce. 21% of our new hires last year were women. While we still have work to do, approximately 15% of our women are in management positions. Alongside direct employment, we are also supporting our host country's broader economic agenda with our impact investing fund, ECODEV.
I will now hand over to Pascal Bernasconi, who is our EVP for Public Affairs, Sustainability, and Security. For those of you who haven't met Pascal in the past, he's based in Abidjan and is managing our ECODEV venture fund.
ECODEV is an impact investment fund that we set up to help create sustainable local businesses in West Africa beyond just the mining sector. It forms a key part of our ESG strategy, which is to support our host country's broader economic and industrial development ambitions. To maximize impact, the fund identifies opportunities to co-invest in small and medium enterprises that improve the value chain in key industries in our host countries. ECODEV works like other impact investing fund. It is professionally managed by Clasquin, specialist in economic development project in Africa. We expect to get a return of our investments, which we can then redeploy in other investments. We launched ECODEV in 2019. So far, we have invested in two projects, Mali Shi and [uncertain].
These investments have created nearly 200 direct jobs will support over 121,000 people at full capacity, and most importantly, enable both Mali and Burkina Faso to access new markets in shea nut butter and beef export, respectively. Our ambition is to implement one ECODEV project each year. The Mali Shi project is a great example of the impact ECODEV can have. Mali is the world's second-largest producer of shea, and it is the country's fourth-largest export. However, it did not have any industrial processing capability. ECODEV, along with a consortium of other investors, identified this barrier and have invested in the country's first industrial-scale shea butter processing facility.
Alongside the direct jobs created, this plant will support 4,500 female farmers around our Kalana projects, with an eventual goal to economically empower 120,000 women in the region and across Mali. Most importantly, ECODEV has helped to accelerate the vertical integration of Mali Shi butter industry and move up the value chain so it can access new customers and new markets. Let me turn now to our second investment, the [uncertain] project located near our Houndé mine in Burkina Faso. Burkina Faso is a large country with a tradition of pastoral farming. Nearly 80% of households herd cattle, and the sector accounts for 18% of GDP and ranking third in terms of export value after gold and cotton. However, the sector has not been commercialized. [uncertain] will be West Africa's first commercial scale intensive cattle feedlot with integrated refrigerated slaughterhouse and meat production facilities.
It will support over 1,000 farmers and create more than 50 direct jobs. The project will produce fresh, traceable quality beef for local sale and export. Meat export generate higher value than the export of beef cattle, and [uncertain] is well-positioned to capture market share in niche markets in Cote d'Ivoire and Ghana, as well as countries in Central Africa. Once fully operational in 2023, [uncertain] will play a key role in strengthening the cattle sector in Burkina Faso and meeting the government's ambition to become a key exporter in the region. The development of ECODEV projects such as Mali Shi and [uncertain] are the results of a pioneer approach for the West African mining industry. They reinforce the role of economic partner that Endeavour Mining want to play with our host countries.
Importantly, these industrial scale projects are win-win, promoting sustainable economic development in the region where we mine, as well as making a concrete contribution to advancing our host country's strategic economic objectives.
What I like the most about ECODEV is that it identifies the most impactful industries where there is a missing link, a barrier in the value chain. ECODEV's role is then to team up with a local partner and finance the development of this missing link to create a sustainable business. In doing so, its impact goes beyond just the immediate business and opens up access to the whole value chain of this particular industry. Those investments will ensure more value is captured by the local communities and our host countries. Through ECODEV, we are enablers, unlocking value by supporting local entrepreneurship.
It's vitally important that our hosts, whether at the local or national level, feel invested in Endeavour as a business. Wherever possible, we seek to ensure that our procurement of goods and services takes place in country. Last year, 74% of our spending, or around $620 million, was on national and local suppliers. Over the past four years, our in-country procurement spend has totaled approximately $1.8 billion. This year, we also adopted a local procurement reporting mechanism to further increase the reporting and visibility of our local procurement strategy, which saw us engage with more than 2,000 businesses and suppliers in our host countries. Given our size, it's no surprise that we are a significant contributor to the economies where we operate. As we have grown, so has our contribution to these economies.
Alongside investing over $1 billion in building our high-quality portfolio, during the same period, we've paid approximately $800 million in taxes and royalties to government. In 2020, the total economic value we distributed approached $1 billion. While our social and economic contributions are important and immediate, we also need to address our environment, possibly one of the greatest challenges the world faces today. Whether protecting biodiversity, ensuring climate resilience at our operations, managing our water use, or transitioning to a net zero carbon business, we recognize our responsibility to act. While we started reporting our Scope 1 and 2 emissions back in 2017, and Scope 3 emissions in 2020, our journey is still in its early stages. This year and next, we plan to further improve Scope 3 reporting by focusing on upstream emissions and asking our top suppliers to detail their emissions too.
This will help us calculate the full impact of Endeavour's operation from the mine to the refinery and help us develop new ways to reduce our emissions intensity. We committed to do the work necessary to align our business with the goals of the Paris Agreement and the Science-Based Targets initiative. To reinforce this commitment and our ultimate ambition of net zero by 2050 and our goal of 30% emissions reduction by 2030, we've done two things. The first is to include a carbon reduction strategy as part of our long-term executive compensation scheme. The second was to start a detailed action plan across our portfolio. First, here is a snapshot of our energy footprint. The three countries in which we operate have very different energy mix, with varying contributions from fossil fuels and renewable, such as solar or hydropower.
In turn, only two of our mines are currently connected to the grid, while the remainder use a variety of different power generation types. The portfolio we have today reported total emissions of 739,000 tonnes of CO₂ equivalent in 2020 for Scopes 1 and 2. From an intensity perspective, taking that total on a per ounce basis, we are amongst the lowest emitters in our peer group, and all our mines perform better than the industry average. We've identified eight levers to reduce greenhouse gas emissions, and work is already underway investigating these opportunities. From the mining perspective, we're looking at the use of cleaner fuels and ways to optimize the use of our fleet. There are additional levers from our electricity use, including improved generating capacity, increased efficiency, and switching to renewable power.
We see solar as forming a core part of our energy mix going forward and have identified potential for up to 150 MW of solar across our operation, starting with our Houndé mine.
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Solar is also a key component of Burkina Faso's national agenda to electrify the nation. The president's goal is to have 80% of the country electrified over the next five years. We see ourselves playing a central role in this. We want to implement our solar strategy in partnership with a renewable energy specialist through PPAs, power purchase agreements, giving us cost stability and certainty while enabling us to fast-track the project. We believe this is the most effective strategy for us and also the best allocation of capital across our different opportunities. If we look at the Houndé project in more detail, we estimate a solar plant could reduce our power cost by 20%-35% and lower Scope 2 emissions by 35%-50%. Our current timeline envisions the commissioning of an 18 MW solar plant by the end of 2022.
We also plan to go beyond the mine and assist with rural electrification. I hope to announce more details on that later on in the year. What I like the most about solar is that it's a really good example of a sustainability project that ticks multiple objectives. It's good for our operation as it reduces our cost and improves efficiencies. It reduces our CO₂ emissions. It's good for our planet. It's good for our local communities as they are electrified with renewable energy, which future-proofs them. Finally, it's good for government as it's aligned with the national agenda towards access to electricity and their own contributions to the Paris Agreement. Tackling emissions and climate change clearly gets much of the world's focus today.
However, rising up the global agenda of issues to address is water and biodiversity, and both these topics form a key part of our environmental strategy. Operating in the Sahel region means water is paramount to our communities, and we are very conscious of our water use. Our strategy aims to ensure we have enough water for our operations, while at the same time protecting the quality and quantity of water available to our host communities. While as a group, our total withdrawal increased in 2020 due to our larger size, I'm pleased that our reuse and recycling rate has increased and our overall intensity has fallen. However, we recognize that it is an area where we still have work to do. If we want our communities to be resilient to climate change, we need to make sure we are also looking at biodiversity.
The African continent is experiencing a dramatic loss of biodiversity due to climate change, human population dynamics, and habitat loss. In Africa, around half of all bird and mammal species are at risk from climate change by the end of this century. This loss affects not just the species involved. It impacts livelihoods, water supply, food security, and lessens resilience to extreme events, as well as the intrinsic harm to other species. In keeping with our ESG strategy, we looked at how we mitigate our own impacts as well as the broader role we, as Endeavour, could play in addressing this with our partnership approach.
At the mine level, building on the experience we gained with the Dépka Forest Reserve on our Agbaou mine, we've set up a partnership with University of Daloa in Côte d'Ivoire to create a forest conservation initiative within the Ity mine site to protect endangered species and promote biodiversity. More recently, we've also established an important partnership with Panthera, the only wildlife organization devoted exclusively to the conservation of the world's wild cat species and their ecosystem. Together, we will work to develop wildlife conservation and management projects in regions where we operate. Our collective goal will be to monitor key wildlife populations while taking steps to ensure the security and management of protected areas and habitats for various species of big cats. Finally, before I move on to governance, I want to address plastic waste, which is a scourge everywhere, but particularly in Africa.
Recycling rates and opportunities to recycle are far lower than in Europe. Plastic waste is often burned to the detriment of air quality and the climate. I think we're all familiar with the length of time that plastic takes to biodegrade and the impact it can have on ecosystems, even thousands of miles away from where it is deposited in landfill. At our mines, we are tackling plastic by reducing single-use plastic where we can, such as introducing refillable water bottles and reducing our overall use of plastic in our supply chain. At a national level, we are proud to partner with the Plastic Odyssey Initiative, an NGO that works on plastic impact awareness and harnesses a mix of technology to recycle plastic. Plastic Odyssey will be assisting us in developing a host of local initiatives in and around our mines to encourage recycling.
It's been quite impressive to see the products we can do with recycled plastic, such as bricks, bags, et cetera. Clearly, you can see today that we've taken on some very ambitious initiatives, each of which can have a large and lasting impact. As I noted earlier, with our increased scale comes bigger and bolder objectives in our ESG program. To be effective, we believe we need to be focused. Each of the initiatives we outlined today has clear objectives supported by a roadmap to help ensure success, not only for us, but most importantly, for our partners and the communities where we operate. We are proud of what we've achieved to date on ESG. Much good work has been done, but we know there is more to do, and we are committed across our organization to continuously improve our efforts and outcomes across our various ESG initiatives.
We recognize that we have an ambitious sustainability program, and to implement this successfully, we must have solid governance in place. I will let Morgan discuss the frameworks and structures we've developed to support our ESG program in more detail.
To make sure we have the appropriate levels of oversight and the right targets and incentives to drive the right behavior, we have a board-level ESG committee that's dedicated to overseeing and monitoring the sustainability practices and performance of the organization. Supporting their efforts, we follow leading ESG reporting frameworks such as SASB and TCFD. We're also leading members of the World Gold Council and fully support their comprehensive ESG framework, the Responsible Gold Mining Principles. In addition, to demonstrate the robustness of our reporting, we externally assure our ESG data and key indicators. We recognize the power of the international organizations and the rigor that they bring, and we are already a signatory to the Women's Empowerment Principles, which support our broader diversity and inclusion initiatives. We plan to adopt the Voluntary Principles on Security and Human Rights, as well as signing the UN Global Compact this year.
These organizations showcase best practice in the area of ESG, and our ambition is to at least match these standards. I'd also like to talk about governance in the context of the upcoming listing on the London Stock Exchange. We are already listed on the Toronto Stock Exchange, and while there are important differences between the two markets, they're not as dramatic as people might think. As part of the preparation for the listing, we completed a thorough gap analysis with our advisors at an early stage. It's widely known that the gold standard of the London premium listing that carries is very exacting in its requirements in the area of FPPP, or Financial Prospects and Procedures.
We also had to develop a corporate risk management framework that didn't exist before. As intensive as they were, I would say that the rigor that the London listing process puts you through forces a company to accelerate its corporate maturity. I think it's fair to say that the listing process that Endeavour has been through has left us in a very strongly governance-driven environment, and I see that only augmenting over time. Like the company, the board has been on a journey in the recent past. While the company has experienced a lot of change in terms of the composition of the business and the assets, the board has been a bedrock of stability for management to be able to rely on at a time which was strategically vital.
It's a bit of a tale of two cities because the board has itself been through changes driven by those corporate events. Amongst the events of the last two years or so, we've had the really good fortune to be able to appoint directors who have a profound appreciation for the kind of governance expected for a premium-listed company in London. There's a rigor of discipline and terms of procedures and oversight that the London investor community has come to expect, and I think that the skills and experience matrix of our directors should strike the right tone. We've had the good fortune to appoint some really impressive people, as I mentioned, over the past two years or so. And with 44 board and committee meetings in the last year, I think they probably had more excitement than they expected.
Finally, I'd like to say a few words on compliance, which is a subject on everybody's mind, and it starts with the theme of whistleblowing. We've had an independent outsourced service in place for many years. What we found is that cultural norms in West Africa mean that people sometimes have a reticence about speaking up or a hesitancy about using the services, even if it is anonymous. We're adapting that whistleblowing approach to what we call a speak-up culture in which employees are encouraged to call out non-compliance with our values. Our values are something that are well-established, well-known, well-marketed internally. They're things that people identify with quite easily. They demonstrate what we stand for as an organization and what we don't stand for as an organization.
Turning for a moment to ABC or anti-bribery and anti-corruption, we look at this through the lens of combination of training, awareness, culture, procedures, and audit. Those are the levers that you have to work with in risk mitigation. For several years now, we've conformed with the requirements of the UK Bribery Act. We took that decision in 2016 because it's the highest standard in the world. The U.K. office opening as it was in 2016, we realized that we would have more and more nexus to London and to the U.K. It led us to completing a baseline risk assessment, which was assisted by an external law firm. That was essentially a gap analysis for which we were able to backfill the procedural gaps to ensure that the ABC system was robust and fit for purpose.
We have annual mandatory training on bribery and corruption for anyone who has a managerial or a financial function, and that extends to the board of directors too. Apart from the ABC policies and procedures and promoting this culture of honesty and ethical business, we've taken other recent steps too. We've just adopted a new supplier code of conduct, which imposes our standards on our contractors and suppliers, and this is backed up and embedded in the contracting framework and their obligations. That's the important point. Our values extend beyond just us and our people. We make it clear to everyone who's working with us that we expect the same high standards of ethical behavior from them in return.
In this final section, we bring it all together to talk about how our approach leads to the potential for strong returns for our shareholders.
You'll hear again from Sébastien, but also from Joanna, who recently joined our team as CFO. Prior to Endeavour, Joanna was our audit partner, which allowed her to build a good understanding for our business. Sébastien, back to you.
To deliver on our purpose and realize our potential for our shareholders, we need to have a resilient business and one that is a trusted partner to our stakeholders. I think that we have earned a trusted partner status with host governments and communities where we operate. That secures our social license. This, combined with a high-quality asset base, provides Endeavour with a strong foundation to reward shareholders. That reward is offered by improving our per share metrics, represented by metrics such as Net Asset Value Per Share, increasing dividends per share, and cash flow and earnings per share. Growth in these metrics are supported both by a resilient business and ability to continue to repurchase our own shares when appropriate. Rewarding shareholders also means ensuring that all of our projects compete for capital on a risk-adjusted returns basis to optimize the value that we are able to generate.
You can now see how our approach to capital allocation has evolved over time. In the initial phase, we sought to improve our portfolio and focus on growth. We are now in a position where we have a leading cash generative asset base combined with a solid balance sheet. This means we can now deliver on our next phase of organic growth and provide returns for shareholders. We're well-positioned to meet all of our corporate goals on a sustained basis. Making the necessary investments in our operations, providing economic benefits to our host countries and establishing an attractive shareholder returns profile. From the portfolio's successful transformation, we now have a robust portfolio that is capable of delivering strong returns over the long term. At the front end of the project pipeline is exploration, where we have consistently added ounces and target a discovery cost of less than $20 per ounce.
Our project pipeline is competitive across the industry, and our management team has a strong track record of delivering projects on time and on budget. Using discipline and effective screening metrics, we ensure that our pipelines contain the best projects capable of delivering returns through gold price cycles. For Endeavour, we instill that discipline by applying a 20% after-tax IRR hurdle at gold prices of $1,300 per ounce. With that rigor applied, we're able to benchmark projects against our 20% ROIC target with conviction. They either compete and are feasible, or the capital will be returned to our shareholders. These criteria link back to our core project criteria, which we spoke about earlier, and you'll probably hear again.
We are focused on advancing a portfolio of assets with a 10-plus year mine life, the capability to produce more than 200,000 ounces per year, and an all-in sustaining cost of below $900 per ounce over the mine life. Applying that disciplined approach sees our legacy assets, having gone through a core investment phase, well-positioned to generate attractive returns. We measure this through return on capital employed. In 2020, this more than doubled compared to the prior year to 20%. Consistent with our capital allocation benchmarking, we intend to maintain our focus on this important metric to test future investment. Our approach to advancing quality near-term growth is exemplified by the three projects highlighted on this slide. First, and probably most significant from a value perspective, the expansion of the Sabodala-Massawa operation.
Phase I of the expansion project is underway today and will add approximately 90,000 ounces per year of gold production capability for a very modest CapEx of $20 million in 2021. Following this optimization, the phase II expansion will consider a refractory gold processing circuit. A definitive feasibility study on this project is targeted for completion during Q4 2021. These initiatives are set to position Sabodala-Massawa as a tier 1 low-cost, long-life asset. On the right side of the page, you can see our two most advanced greenfield projects, Fetekro and Kalana. We recently completed positive pre-feasibility studies on these assets, and they are now progressing through definitive feasibility studies targeted for completion in late 2021 and early 2022, respectively. Both projects offer compelling returns and are viable. However, we want to ensure we are optimizing our development plans to ensure the best DFS results before making a construction decision.
As a result of our focus on high-quality assets, our portfolio has evolved systematically, with declining assets replaced by newer mines with growth upside that achieve our stated objectives. Looking forward, we have a diversified portfolio with embedded organic growth options and the ability to produce more than 1.5 million ounces annually on a sustained basis and at an all-in sustaining cost well below our targeted $900 per ounce. This profile incorporates the Sabodala phase II expansion based on the PFS work that Teranga completed and assumes a start in 2023 and a ramp-up in 2024. We are, however, expecting to improve the results, which could further boost production. It also includes the development of our next growth project, with first production commencing in late 2023.
We've assumed that Karma ceases production in 2022 and have not factored in any material additions in exploration, nor any potential to debottleneck some of our existing plants. Given the conservative assumptions incorporated into this outlook, we believe that we will be very well positioned to, at a minimum, deliver this production growth. This, in turn, demonstrates strong cash flow generation capabilities and underpins our ability to reward shareholders over the long term. I will now invite Joanna to walk you through our balance sheet strengths.
Thanks, Séb. I joined in late 2020 and am fortunate to be joining at a time where the company is in cash harvest mode. The chart of net debt tells the Endeavour story well. The company finished its build phase in mid-2019 following the investment of more than $1 billion in the construction of both Ity and Houndé and funding our exploration programs. With the completion of Ity in 2019, we have now been able to significantly de-leverage ourselves, finishing 2020 in a net cash position for the first time. Having assumed that the debt held in Teranga as part of the acquisition in Q1 of this year, we are again in a net debt position at March 31st, but we continue to have a robust balance sheet with strong cash generation anticipated to continue in the next few quarters, in particular with the continued strong gold prices.
Our balance sheet enhances Endeavour's resilience. It allows us to navigate more challenging gold price environments and continue to meet all of our shareholder and broader stakeholder obligations. This includes paying a sustainable dividend, funding organic growth internally, and ensuring we can return excess capital to our various stakeholders. Given the strong gold price environment and our diverse portfolio, we are currently generating levels of cash flow that will enable us to meet our objective of a net cash position of $250 million in the near term. With the recent acquisitions of Teranga and SEMAFO, and the resulting increase in our operations, we have continued to manage our working capital and our overall balance sheet to ensure financial flexibility moving forward. The extension of our Revolving Credit Facility and obtaining the bridge facility enabled us to reduce the cost of group debt upon assumption of the Teranga debt in February.
In the past 12 months, the excess cash generated from our operations has been used to repay outstanding leases and other long-term liabilities, as well as repaying the RCF. Our bumper liquidity available at the end of Q1 was largely the result of the $100 million-$200 million private placement falling at the end of the quarter. Going forward, we will continue to focus on gross debt reduction while maintaining the financial flexibility to assess our various growth opportunities for the lowest cost of capital. Our current debt structure is a diverse set of lower cost debt instruments, and we will continue to manage our liquidity and overall debt structure well in advance of their maturity in the first quarter of 2023.
While we are expected to reach a net cash position in the near term, if we take a more holistic view, we do believe that our business can support debt and should do so at opportune times. This allows us to make efficient use of financial leverage to maximize returns to shareholders. To remain resilient across the gold cycle, our goal is to target a maximum leverage ratio of 0.5x net debt to EBITDA. This will allow us the financial flexibility to periodically increase debt levels to deliver any major organic growth initiatives, with the goal of rapidly deleveraging following the capital spend. We also believe that we have a robust balance sheet relative to our peers. We focus on building assets with strong financial returns, and this is the prime catalyst to our ability to deleverage quickly once they enter production.
Looking across the sector, we are very well-positioned with low leverage compared with our peers. This now positions us very strongly in terms of supporting internal investment and delivering shareholder returns. Séb?
Thank you, Joanna. As I've mentioned, a key part of Endeavour's proposition, in addition to production growth and ability to discover gold at a very competitive cost, is our sustainable shareholder returns program. I want to go into this now in a little more detail about what it means in practice. Given the confidence we have in our business and to provide visibility to our shareholders, we've decided to implement a minimum progressive dividend policy. We're targeting a distribution of at least $500 million over the next three years if gold remains above $ 1,500. This is aligned to our expected production growth. We are rewarding shareholders with a growing dividend, both in nominal terms and of course on a per share basis. Our first dividend saw us pay $0.37 per share or $60 million earlier this year.
For 2021, we expect the minimum to be more than doubled on a nominal basis, which translates into at least $0.50 per share based on our current shares outstanding. We will announce our H1 2021 dividend along with our Q2 results. We'll continue to seek further opportunities to provide value to shareholders based on the continued strength of our balance sheet, which at the moment is benefiting from the higher gold price environment. As long as our leverage is below 0.5x , we can maintain the resilience in the business while having the potential to provide supplemental returns in the form of higher dividends and buybacks. Given where we are today, we're already delivering these. We launched our share buyback program in April, which provides for up to $250 million over the next 12 months. In the first two months, we've already bought back $50 million worth.
Here you can see how cash returns compare to our peers in the sector. With our proposed minimum dividend for 2021, as well as the buybacks already complete, it currently represents an approximate yield of 3%. The important thing to remember is that with our balance sheet, along with our cash flow generation, this does not stop us from pursuing the growth options I laid out earlier, nor is it dependent on market condition. It's sustainable throughout the cycle. In summary, this slide illustrates well our roadmap for rewarding shareholders across cycles. Ultimately, it's a dual approach of maintaining a resilient business and having a disciplined capital allocation model. As mentioned earlier, we have a high-quality portfolio and our business is well positioned to remain resilient over the long term given the unmatched competitive advantage we now have in West Africa.
Our balance sheet strength is also a key component of maintaining our resilience, this of course is achieved through our disciplined approach to capital allocation. Finally, to reward shareholders, we focus on both share price appreciation and delivering on our shareholder returns program. To drive value and gains within our share price, we focus on unlocking value within our business. Put simply, this means increasing our underlying Net Asset Value Per Share and free cash flow. This can be achieved by further optimizing our assets. Extending our mine lives through brownfield exploration, generating new projects organically through greenfield exploration, and by expanding our building new mines. Of course, all of this is only possible thanks to the strong operating exploration and project teams we have.
I do believe that obtaining our U.K. listing will help unlock further value for shareholders by increasing the appeal and demand for our shares. With the removal of Randgold, the LSE has relatively limited option for investors seeking significant diversified gold production exposure. Upon completion of the listing process, we will be the largest premium London-listed pure gold producer, and we also believe we will be well-positioned for inclusion in the FTSE. Our shareholder returns program is also very competitive, with the promise of a minimum progressive dividend supplemented with the ability to pay additional dividends and to implement buybacks. We believe Endeavour is ultimately positioned for generating strong shareholder returns over the long term.
You've heard from management, I hope that we have lived up to the promise that I set out at the beginning of the event.
As you can see, a great deal of hard work has been done over recent years to reshape our business into one that appeals to a diverse investor universe. When we set out five years ago, our first priority was to appeal to precious metal funds. Given the significant change in our top 20 register, which is now mainly comprised of blue-chip investors, we have achieved that goal. Most importantly, most are overweight Endeavour due to their strong conviction in our ability to deliver immediate cash flows through production, short-term growth through project development, and long-term growth through exploration. With the improvement in our portfolio and our larger market cap following the recent acquisitions, we now have an attractive business and the enhanced capital markets profile required to attract large generalist funds. We are now able to appeal to a wide range of investment strategies.
For those who are deep value-driven, the key feature for you might be our attractive valuation and our ability to remain cheap based on discovering more ounces. For those of you that are more growth-oriented, you might appreciate the optionality of our industry-leading project pipeline, which of course is underpinned by our company's ability to meet our 20% return on capital employed metric. Given our recent dividend initiation, we are now also starting to attract dividend funds, and I'm sure that a minimum progressive dividend with the potential for it to be supplemented with more dividends and buybacks will be appealing to you. Our leadership in ESG is also opening us up to a class of ESG-driven investment funds. Shareholders that have visited our sites have seen firsthand the positive impact of our operations.
For this reason, we believe that a dollar invested in Endeavour can go a longer way than that same dollar invested elsewhere. I'm also seeing more and more demand from emerging market funds, due both to the strong growth that West Africa has seen across other sectors and of course, its rapid growth in the gold mining sector. If you are a family office, you will also take comfort in knowing that your investment is in good hands, given that you have a like-minded investor such as La Mancha, another family office, as a cornerstone shareholder. The last two groups are the ones I spend the most time worrying about. These two classes have grown in importance given their size and market influence. Regarding indexes, we expect to be included into both the FTSE and MSCI indexes, which will be a strong catalyst for our shares.
Regarding quant funds, given our sustained upward trend in per-share metrics and our track record of delivering on guidance, I hope that this will work well within your secret algorithm. After having heard all of this, if you are sitting within a fund and think that we might be a good fit for a colleague running a different strategy, please do refer us. Now, I am sure that you have some questions, I'm going to turn it over to our operator for the live Q&A session.
If you would like to ask any questions on today's call, please press star one on your telephone keypad. Please ensure that your line is unmuted locally. You'll then be advised when to go ahead with your question. That's star one on your telephone keypads. The first question today comes from the line of Ovais Habib calling from Scotiabank. Please go ahead. Your line is unmuted.
Hi, Sébastien and team, thanks for taking my questions. By the way, great presentation as well as a good update on ESG. Also great to see Endeavour implementing a minimum progressive dividend policy today as well. Sébastien, a couple of questions from my end. With the Teranga combination completed, Endeavour obviously now has a solid asset base and growth pipeline. You recently released a PFS study on Kalana and Fetekro, and in your portfolio, you've got the Golden Hill deposit and Bantou project as well. This is a question for Patrick. Which pipeline of projects would you most be interested and excited about in terms of exploration upside?
Thank you, Ovais. I'll probably start, and we'll see if Patrick wants to comment further. I think that, first of all, on the brownfield, and in particular, Sabodala-Massawa, we are very excited. We continue to discover right now. I mean, since we started at the end of last year, we continue to find some new oxide targets, which were not in the existing Massawa resources or reserve from Randgold. We see also a massive potential on the underground side. That's a very attractive one. On the project side, I think that the team is really focused for the time being on the two upcoming projects, Kalana and Fetekro. I think that Fetekro, in particular, is progressing extremely well.
There are some drilling campaigns which are ongoing, and we expect those new results by summertime so that we can include them into the DFS as part of our new reserves. Then, as you mentioned, we've got a pretty hefty pipeline of other key projects, upcoming projects. I think the second part of the year we'll be working on Bantou. Obviously, Golden Hill as a brown field for Houndé is interesting, and we'll be working on it also. I think the priority beyond Kalana and Fetekro is really going to be around Bantou, Golden Hill, and Afema. You've got all the greenfield discoveries, which are less advanced, but on which we are very excited, and I would point out in particular to Guinea, which is one interesting one that is progressing well and is getting Patrick and the team quite excited.
Patrick, I don't know if Patrick is on the line if you want to comment.
Yes, Sébastien. Hi, Ovais. Well, I don't know. I think you answered pretty well to Ovais' question. Unless Ovais wants additional detail, I think you made a very good summary of what's going on.
I think that's good. Just maybe moving on to my next question. Just a follow-up question to that. At Fetekro, obviously you guys have identified 14 exploration targets, and the feasibility study that was done, or sorry, the pre-feas that was done earlier was just on one of those specific areas. Obviously, Patrick, your team will be testing those additional targets during the 2021 drill program. Do you think you'll be including this potential upside in the feasibility study expected by the end of the year? Is the plan to release the feasibility study and then incorporate the upside once the project is built? I mean, similar to what you did at Ity and Houndé.
What we have been doing, we try to be focused because indeed the Fetekro license is quite attractive and hopefully it will be very prolific. Right now, since the beginning of the year, we have been working quite specifically in filling all the gaps that we still see in the Lafigué deposit itself. Actually, we have been quite aggressively drilling in between Lafigué North and Lafigué Center just to homogenize a little bit the deposit and also as well as extending, I would say, the mineralization down- dip to other southeast. This is going to be our main target. Hopefully, we are going to see an update in the resource, as said Sébastien, probably beginning of Q3, and this resource, and they could be indeed integrated within the full feasibility study.
Additional exploration is starting to take place, I doubt that we'll be in a position to add a significant resource by year-end in the feasibility study. Basically, what we want is to make the Fetekro, as called, on the Lafigué deposit itself, the feasibility study, as strong as it is, while keeping the opportunity to add here and there later on next year or the year after, additional deposits that may exist around. The first priority is Lafigué, then we'll be moving at the end of this year and also in the coming years on additional targets we have in the area.
Perfect. Thank you, Patrick.
Just one last question from me. Sébastien, maybe this question is for you. In regard to Sabodala-Massawa phase II expansion, if Fetekro gets the green light in 2022, are you comfortable to build Fetekro and phase II expansion at the same time, or will you consider staggering these two projects?
No, I think we are, Ovais, comfortable with moving those two projects. There are two level of different complexity. One is a brownfield expansion, which we feel comfortable given the strong team we have on-site at Sabodala and given the project team that we kept from the construction phase back between 2016 and 2020. We have one project manager dedicated for the brownfield expansion and the greenfield Fetekro, which we hope to clear by end of the year. We like this project, and we feel very comfortable because it's basically our third project in five year in Côte d'Ivoire. We know extremely well, obviously, the environment. The project manager is already in place and has worked with us a lot over the past few years. He knows extremely well. He was involved, in particular, in the Ity construction as a leading manager.
We feel very comfortable to launch in parallel those [audio distortion].
Perfect, Sébastien. That's it from me. Just again, great job on the presentation.
Thank you very much, Ovais.
The next question comes from the line of Raj Ray calling from BMO Capital Markets. Please go ahead.
Thank you, operator. Good afternoon, Sébastien and team, thanks for the detailed presentation there. Loved the welcome song and obviously the special appearance by Mark Bristow. I have three questions. The first one is on your production profile over the next few years. You expect to go to around 1.6 million ounces by 2025. Sébastien, just want to get a sense of what you think is an optimal level of production for Endeavour as a company, and what's the optimal number of assets to get to that production level as we look forward?
Sure. Thank you, Raj. Always good to have some guest stars as part of your movie. Pretty thankful for Mark to joining us this afternoon. On the production, we always said that 1.5 million ounces was probably a good number, and it's plus or minus, so it depends on the years. Some years you might be slightly below if you decide, for example, to sell a non-core asset, which is becoming less relevant in term of returns than the others. Sometimes you might be over, depending on your organic growth pipeline and production. I would say that 1.5 million is a good environment.
Keep in mind that, and we're mindful on our side that 1.5 million ounces of annual depletion means that we're putting a lot of pressure on Patrick's team in being able to discover at least 1.5 million ounces of reserves to be added, which is in turn probably about 2 million ounces-2.5 million ounces of indicated resources or 3 million ounces-3.5 million ounces of inferred resources on a yearly basis. When you look at 2 million ounces-2.5 million ounces of indicated resources, that's basically what we've been delivering every year for the last now five years with Patrick and the team. We feel comfortable with this kind of level. Moving towards two million or plus is not on the agenda of today. On the number of assets, I always said that for me, I was comfortable with six to eight assets.
I think that's probably a maximum because you want to keep the team focused. The lucky part on our side is that all the assets are in the same region, and that's a very strong benefit to manage.
Thanks, Sébastien. My second question is on your project pipeline. One of Endeavour's core competencies has been building projects. The successful track record you have with Houndé, Ity, b efore that, Agbaou speaks to that. If I look at your portfolio, and you have already touched upon the fact that you have Sabodala-Massawa expansion phase II, you have Fetekro, but you also have Kalana feasibility study coming next year. In the past, you have looked to build most of your projects, a major part of your projects in-house. As you look at your pipeline, do you think you have the capacity to do multiple projects in-house, or you're looking to use third-party EPC contractors for those?
Sure. Well, I think we feel comfortable in running next year two projects in parallel. That's in particular due to the new size of the group compared to three or four years ago. I think the way we'll probably go is doing one fully in-house and another one partially with an EPC contractor. We've been working closely with some over the last few years. Yeah, we feel comfortable in pushing forward.
Okay. Thanks. Lastly, the West Africa exploration potential is definitely very attractive. One of the questions a lot of investors will have is around the security situation. I know you don't have any operating assets in Mali today. You just have a development asset in Kalana. With the French government deciding to suspend cooperation with the Malian government, do you think that's a concern for the security situation in the country? Also, if you can talk to the security infrastructure that Endeavour has in place, just to give some comfort to investors on how you manage the security. That's it for me. Thanks.
Sure. Well, I think on the Malian side, as you pointed out, we don't have today any operations in Mali. We have a project, an upcoming project, Kalana. I think that Mark Bristow was pretty clear on this. There are some risks sometimes in some of the jurisdictions where we operate, but they are also extremely prolific in terms of potential for discoveries. I think the announcement from the French to suspend, for the time being, their military cooperation with Mali is part of the negotiation tactics to push the army to bring quickly an end to this transition and have a democratic election. They haven't suspended the rest of their operations in West Africa, and particularly in Burkina Faso, which is more important for us today than Mali. I think that the beauty of the Endeavour model is its platform of diversified assets across several countries within this region.
We're not focused in one particular jurisdiction. We are over several jurisdictions. In terms of security environment, we've invested a lot in security. We have, I would say, a team which is organized as a dedicated business unit supporting across the group, all the mine sites and monitoring very carefully and having the right intel with all the governments which are involved in the region. We feel comfortable operating there, and I think we've demonstrated over the last few years that we were taking security seriously, but we are also handling security seriously.
Thanks, Sébastien. That's it from me, and best wishes for the upcoming year.
Thank you Raj.
The next question comes from the line of Amos Fletcher calling from Barclays. Please go ahead.
Yeah, good afternoon, gentlemen. Thanks for the opportunity. I just wanted to dig into the capital allocation framework that you gave us earlier on in the presentation. I just wanted to sort of dive into what are the metrics that you use to define the absolute dividend level. I guess you showed us the targeted production profile over the next few years, but I'm interested to know what assumed gold price you're using, the CapEx profile, and what % of resulting free cash flow that you're allocating to dividends. Thanks.
Hi, Amos. Thank you. Well, I think that what we wanted through this minimum dividend distribution was to give visibility irrespective of gold price. What we said is those minimum amounts for the next three years, which are growing amounts, will be distributed as long as we are above $1,500 gold price. This allows to ensure that whatever the environment, this is the minimum that we commit to distribute to our shareholders. Whenever gold price is above $1,500, I would say that the extra cash flow will be properly allocated between the different pillars that we have, including increasing the dividend on top of what has been committed at a minimum. Plus, doing whenever it's deemed opportunistic, doing some buybacks.
The way we did it is we wanted to ensure that given the visibility we have on the production and the cash flow over the next few years, I would say irrespective of the gold price, demonstrate that we have very strong confidence in our ability to deliver this minimum dividend. Then, we could have gone with a certain percentage of cash flow, for example, of free cash flow. Then the question would have been, okay, what is your free cash flow for the next three or four years? We know that analysts or investors would have so different views on this that it would be complicated to manage expectations. We prefer to have a minimum increase base for the dividend, and then whatever is on top of that will be distributed to shareholders.
Okay. Then I guess slight follow-up from that. When you get to the position of $250 million in net cash and assuming that the gold price is above $1,500, is it reasonable to assume that 100% of surplus cash flow generation above that $250 million will be returned to shareholders, or will it be more of a mix between that and organic options, et cetera?
I think we'll have a reasonable and balanced approach, simply because based on the return on capital employed that we currently have, over 20% return on capital employed. We have also a lot of investors which are confident and want us to continue to invest in our business. I think the objective is to be balanced between those two approach, growing dividend on one side and continuing to invest on organic growth.
Got it. Thank you. The final question, I guess, just to ask around your preference between dividends and buybacks for surplus capital terms. Is that driven purely by a decision over NAV per share relative to the share price, or do any of your major shareholders have a specific preference for dividends over buybacks?
No. The way we're looking at it is, depending on where the share price is, we have our internal model to define whether buying our own shares can ensure that we deliver this 20% return on capital employed. Obviously, in the case of buyback, this is a risk-free investment. This is why I said it's opportunistic because we would continue to do buyback as long as we feel that the share price is not reflecting what we consider is the real value of this company, given its cash flow generation. That's why we initiated that back about eight weeks ago. I think so far, we've already completed close to $50 million of buyback, and we'll continue as long as the share price remains low.
Okay. That's great. Thank you so much.
The next question comes from the line of Lawson Winder, caller from Bank of America Securities. Please go ahead. Lawson, please ensure that your line is unmuted locally, and please go ahead with your question. Thank you.
Yes. Thank you very much, operator, and thank you, Sébastien and team for the presentation today. I just wanted to start off with a question on your growth outlook. You're targeting 1.6 million ounces by 2025, and I was hoping to get a little bit of clarity on some of the asset-specific targets within that. Obviously, Fetekro would be part of that, I would assume. What sort of number for Boungou would be built into that and Mana as well?
Well, I think what we've been looking at is the overall portfolio and for Boungou will probably remain into the 150 t o 200,000 ounce by that time. We're expecting further discoveries there. I think if we take just the current reserve, we are probably around 150,000, but we hope to be able to maintain that closer to 200. Then, as you said, it's really the kicking of the Sabodala-Massawa expansion that will allow Sabodala-Massawa to be over 400,000 ounce by that time. In parallel, the strong Fetekro greenfield also into account, which will be over 200,000 ounce. We're still working on Fetekro at looking what's the right size of the plant based on the further discoveries that we're making.
I can't exclude that a bit like Ity, we continue to increase the plant size as we progress the studies, which might lead to Fetekro going even over to 200,000 ounce.
Just in terms of Sabodala-Massawa, are you assuming anything beyond 400,000 ounces a year in that 1.6 million ounces?
No, not yet. We planned conservatively at about 400,000 ounces. My internal expectation would be to deliver much more.
Okay, great. Just on Mana, actually, Patrick, when you were speaking, you mentioned the concept of a potential larger open pit there. Can you maybe just talk a little bit more about what you're seeing there, and then also maybe touch on potential strip ratio and grade? Thanks.
I think on Mana, what we're heading up is for the next few years is we believe that, in fact, we will switch off progressively the Wona open pit and turn this into a Wona underground. For the next few years, we would have two underground running in parallel. On one side, two underground, and on the other side, one underground which will give visibility over the next few years for production, again, between 150-200,000 ounce for this asset, while being able on the other side to give time for Patrick and his team to do exploration to identify new oxide open pit targets and also progress studies that we started on regarding refractory ore. There are a lot of refractory ore in the Mana inventory and around.
We want to give visibility and time to work on those two aspects in order to bring progressively Mana to, again, above 10 years mine life.
Great. That's excellent. Then I wanted to touch on the new dividend framework. Super helpful framework, I think very bullish for the outlook. I just wanted to maybe understand your thinking a little bit more on the downside. Granted, we're well above $1,500 per ounce, but how do you think about your commitment to that three-year dividend outlook at prices below $1,500? Maybe you could talk to it in terms of what is your sort of downside tolerance on that $1,500 lower end. Thanks.
Sure. I think that everyone would understand that the gold price has an impact on the balance sheet. I think that the longer gold price stays at the current level, the more we accumulate cash on the balance sheet, and therefore the more we are immune for the next three years to, in fact, whatever gold price and still being able to deliver those committed minimal dividends. I would say, although we're saying that those are the minimal dividends that we would distribute as long as gold price is above $1,500, my sense is that with the current gold price environment, we are going to strengthen very strongly the balance sheet and therefore should be in a position to even maintain that beyond, or I would say, below a $1,500 gold price.
I think as you said, the visibility we wanted to give there is to make things simple and also demonstrate that we are extremely confident on the ability for the current business to deliver those dividends, whatever the gold price environment.
That's excellent. Thanks for that. You talked about greenhouse gas reduction levers. I was curious if you guys are kind of working on an internal target and when you might provide that, and I apologize if I missed it, but I don't think I did. I think it's something that maybe you're working on internally.
We're working towards two targets. Obviously, net zero by 2050 and in the short term, reducing by 30% our intensity by 2030. There are a number of levers that we are working on. What we outlined in the presentation is that if you take Scope 1 and Scope 2, about 50% of our emissions is linked to the mining fleet. We need to work on levers such as green fuel and also optimizing progressively our fleet with lower consumption. I think we'll be monitoring over the next few years how things evolve on the electrical side for mining fleet. I don't think the gold industry is advanced on this, but our peers in the base metal are progressing extremely well, so we'll be carefully monitoring that. The second half, I would say, of our emissions is really on the electricity production.
There what we said is that we see massive improvements on our CO₂ emissions by growing a strong portfolio of solar plants, in particular in Burkina Faso. We start by launching a solar plant at Houndé. Overall, we see the potential for building a portfolio of up to 150 MW of electricity generated by solar across our business. What was interesting in doing all the analysis and preparing this new strategy, what was interesting for us is to see that from an intensity standpoint, we are one of the lowest in our peer group. So when you take, I would say, two key features of Endeavour, I would say one of the lowest production cost of our peer group and also one of the lowest in terms of CO₂ emissions intensity per ounce produced, which I think is, again, a good feature going forward.
Great. Thanks so much, Sébastien. Just any update on the Karma sales process?
Not yet, Lawson. I think we've been pretty busy on preparing the London listing and integrating the Teranga assets. I would expect progress on the Karma sale probably in the second half of the year.
Great. Thanks very much.
Thank you.
Before we move to the next question, please be reminded, if you would like to ask a question, please press star one on your telephone keypads. The next question comes from the line of Don DeMarco calling from National Bank Financial. Please go ahead.
Oh, hi. Good morning. Thanks for taking my call. Hi, Sébastien and team. You guys have provided three-year dividend guidance. Can we expect three-year production and cost guidance may follow at some point?
Sure. I think that as part of our production guidance, we also gave indication of all-in sustaining cost for the next five years, in fact, saying that we would expect for the next three years to have production, sorry, all-in sustaining cost to be below $900. We said for the two remaining years, 2024, 2025, to be well below $900. I think it's a way to confirm that whatever gold price assumption, this business will continue to generate very strong cash flow over the next five years.
Okay, great. You guys have had a very clear messaging on no more M&A. Has anything changed when you see other companies such as Roxgold being bid on?
No, not at all. I think that we're so happy with the portfolio that we have that we feel that there is more value creation for our shareholders to be done by organic growth rather than looking at M&A. We haven't seen anything that would be of interest that would jump us out or any interest in West Africa. Very happy again with what we did last year to build this portfolio and now focused on delivering the value creation out of that portfolio.
Okay, thanks for that. Now shifting to your primary shareholder, La Mancha. They completed the $200 million financing. To the extent that you're aware, can you comment on their plans with respect to increasing or decreasing their position in Endeavour?
Sorry, say that again, Don?
I was just wondering how La Mancha feels after this $200 million financing. Do you have any thoughts? Can you provide any color on whether or not they may further increase or potentially decrease their position in Endeavour at some point?
No, I don't. What I can say is that their $200 million commitment was on the back of the Teranga deal as part of their anti-dilution clause, which at the time we agreed that was the last time they would exercise the anti-dilution clause. It has now vanished. We were jointly with Naguib Sawiris, we were jointly agreeing that having them below 20% as part of our London listing would be the right level. They are on the 19.3% or 5% currently, and they've been clear on the fact, Naguib has been clear that for him this was a long-term investment for his family and therefore I don't expect them to move from that position.
Okay. That's all for me. Thank you, guys.
The next question comes from the line of Anita Soni, coming from CIBC World Markets. Please go ahead.
Hi. Good morning. Thanks, Sébastien and team, for a very good presentation and particularly the ESG component. My question relates to that. I don't think I saw it, and I'm sorry if I missed it, did you give any indication of how many females you have employed at the company and how many are in management positions?
Sorry, Anita, the line broke out as you said.
Sorry, I was just asking about the components of female employees that you have and how many are also in management positions as well?
Overall, we are slightly above 10% in terms of female across the group in terms of employment, and we have about 15% in management position.
Okay. Second question, a little bit leveraging off of Don's question on cost. Could you give us an idea of the capital spending profile over the next three years? I don't think I saw that. You also mentioned that if needed that you could increase your net debt to EBITDA if the CapEx, I guess, is lumpy. I'm just trying to get an understanding how the CapEx profile will roll out over the next two to three years. Not the EPS, I'm talking about growth capital here.
I think if we take just the sustaining and non-sustaining CapEx approach, we guided this year for around $370 million. What we said is that we would expect going forward to have sustaining and non-sustaining CapEx on our existing operations to be closer to $250 million going forward. From 2022 onwards. I would say that's for the sustaining and non-sustaining CapEx. When it comes to growth CapEx, obviously the important one is in 2022 and 2023 linked to the construction of the Sabodala-Massawa expansion phase II and the potential construction of Fetekro. We would expect the total CapEx to be between $550 million-$600 million maximum spread over this 18-month period. I would say that usually we have about, I would put about 40% in the first 12 months and 60% in the last six months. 40% in 2022 and 60% in 2023.
Okay, that $550 million-$600 million was the combination of both Fetekro and Sabodala-Massawa?
Yeah, exactly.
Okay. That's your split 40/60/40. Okay. All right. Thank you.
The final question comes from the line of Travis Anderson from Gilder Gagnon Howe & Co. Please go ahead.
Thank you for taking my questions. I was wondering, Teranga had done a fairly complete phase II study. What was it that you felt needed to be improved there or were hoping to change by basically redoing it?
Sorry, which project you were talking about?
Sabodala-Massawa phase II.
Okay. Sabodala-Massawa, when we took over from Teranga, they had completed the PFS. This was published, in fact, in September, October last year.
Okay.
We've done further trade-off studies since we took it over. Even after the announcement, from November to March, we did some further trade-off studies to confirm some of the key parameters of the PFS and in particular, the size of the BIOX plant, putting into competition BIOX with other processing options also. We've now firmed up all those different options and are progressing to the DFS, and we are expecting the DFS to be completed by year-end.
Okay, thanks. Secondly, I just noticed Nevada has now agreed to increase their royalties on gold mining in the state. Is there any issues or pending possibilities you think of changes in terms in any of the countries you're working in a major way?
Sure. Well, I think there are two ways to look at it. The first thing is, in the countries where we operate, as part of our mining conventions, we have some stability clauses. If there were some changes to the tax royalty regime, this wouldn't apply, I mean, for the existing operations, but only for the future ones.
Okay.
Where we are confident is that as part of this mistake which was done in the past, and in particular during the previous gold bull run, where in fact royalties were a fixed amount, irrespective of gold price, it created inevitably some tensions between mining companies and governments. All the countries where we operate in West Africa have evolved and changed that about five or 10 years ago in changing the royalty scheme so that it scales royalties depending on gold price. When the gold price increases, the royalties also are increasing, which makes sure that everyone is on the same boat and fully aligned. It's not just one mine site in country, which is suddenly enjoying huge profits without giving that back to the host country.
Higher gold price, you have obviously your higher royalties, but obviously you're also paying more taxes on the income part, and we've got tax rates which are similar, I would say, than in Western countries. Then for the communities, the good thing is, we have now implemented again in all the countries where we operate, this 1% turnover additional payments that we're making to local funds in order to enable local projects. Obviously if gold price goes up, turnover goes up, and therefore the 1% for communities is going up. I think there is, across the operations and the countries where we operate, a good alignment between the mine, the communities, and the host governments in sharing that increased value when gold price goes up.
Okay, great. Thank you. It was a good presentation.
Thank you very much.
We have no further questions through on the phone lines, so I'd like to hand the call back over to Martino De Ciccio, Vice President of Strategy and Investor Relations, for closing remarks. Thank you.
Thank you everyone for joining our virtual event today. We hope that the information presented has been helpful. The replay will be available on our website very shortly. I'll now hand it back to Sébastien for closing remarks.
Thank you, Martino. I'd like first to give a big thanks to the entire team and in particular to Martino's team for preparing this Capital Market Day. We've tried to be as comprehensive as possible, in particular on our business, on why we are so bullish about West Africa, but also giving visibility on our capital allocation strategy going forward, and also our enhanced ESG strategy following the increase of our size. Thank you so much for attending this day. As Martino said, everything will be on replay on our website, and hope to see you all later on. Thank you very much.