Good afternoon, ladies and gentlemen. Thank you for joining today's conference call and live webcast regarding the post combination of Endeavour Mining and Simbafeld. Following management's presentation, there will be an opportunity for questions and answers. To ask a question. President and CEO of Endeavour Mining.
Thank you, operator. Good morning, good afternoon to everyone, and thank you for joining today's call. I'm Sebastien Dumontissuer, CEO of Andeavor, and if pleasure to be talking to you as we announced that we have entered into a definitive agreement to combine with CEMAFO to create a leading West African gold producer. Joining me is Benoit Desormeaux, CEO of CEMAFO. And together, we will share the details of today's announcement and why this compelling transaction will deliver long term value for both sets of shareholder.
As we begin, I would like to remind everyone that today's call is governed by our disclaimer and cautionary forward looking statements. Please do take a moment to read them. Before we start I would like to take a moment to discuss our response to the coronavirus. I hope you and your loved ones are safe and keeping him well in these unprecedented times. As you will have seen from our announcement last week, we have implemented a number of procedures across our business to keep our employees and contractors safe and to play our part in limiting this pandemic.
We have identified 3 levels of response within our overall plan. Currently, we are in what we are trimming at level 1 response which is similar to the response being taken in most countries worldwide. This includes health screening, strictly monitoring access to sites suspension of all non essential business travel, mandatory 14 day quarantine for all travelers arriving in West Africa. Working from home for all our office staff and regular communication updates. These measures are working well, and so far we have had only two cases, all those who had direct contact with these two cases were placed in Quarantine.
We have a second level of response, which is where the virus starts to be more prevalent in our operating countries, where we start to apply more restrictions to our operations, but can still mostly keep things working as normal. Finally, there is a certain level of restriction where we might expect to see severe restrictions on operations and need to consider suspending or curtaining operations. But to be clear, we are currently at level 1, and we are operating on all mines as usual, but are monitoring things very closely. In addition, we also have a well regarded epidemiologist acting as special advisor to Endeavour. He is supported by an eleven person medical team from a leading U.
S. NGO who will be deployed as and when the need arise using our own planes in West Africa. Many of you may be wondering why we are pressing forward with this transaction when there is so much uncertainty across the world due to this pandemic. This transaction announcement is very much part of our objective to build a sustainable business and while the world is currently facing challenging times, We continue to be optimistic We believe that
Yes. Thank you, Sebastian, and good morning, everyone. We have taken many similar measures to endeavor to prevent the spread of the coronavirus. And I want to stress that our priority is the safety of our people. For our global office employees, we have implemented remote work programs For our operating sites, we have taken every possible precaution, including the elimination of non essential travel, mandatory quarantines for anyone who travels, and we continue to closely monitor the recommendations of elkatorides worldwide.
Thank you, Benoit. Moving on to Slide 3 and the rationale for today's transaction, agreement to combine with CEMAFO through this acquisition represents an attractive value proposition for both sets of shareholder I think it speaks well to our collaborative approach that we were able to negotiate this transaction while our teams allocated around the world and working remotely. In today's changing well, gold producers require scale, tangible and interim growth prospects and the business models that demonstrate sustainable cash flow. We believe that now is the right time to carry out this transaction, and the combined company will be very well positioned in the gold sector and it will become a top 15 global gold producer. The strategic rationale for this transaction is underpinned by 3 key elements: Firstly, the combined company will benefit from an enhanced strategic position and enhanced capability to manage risk creating a partner of choice for government and Key West African stakeholders.
Secondly, the business will benefit from a Stanson asset portfolio with diversified production and enhanced exploration potential. This portfolio will be centered around 4 Cornerstone mines with which each producing more than 200,000 ounce of gold per year over a sustained period of time. Finally, The combined entity will have an enhanced capital market profile. I'm also pleased that La Mancha will remain a highly supportive cornerstone investor injecting $100,000,000 through a private placement. Clearly, this is a compelling transaction on many levels, Before we continue through the presentation, I'd like to hand over to Benoit, again, who will explain some of our perspective.
Ben?
Thank you, Sebastian. We are very excited about this announcement. Over the past number of years, we've worked with End of our as industry partners address business issues coming to companies operating in West Africa. For74 shareholders, this transaction offers the benefits of both an immediate premium and the chance for significant rerating within a larger combined entity. Our management team is excited to join the combined group and we look forward to contributing to the success of this larger business.
As a combined entity, we will work together to realize operational technical and exploration synergies across our mines and projects. And finally, we are proud to be maintaining a presence in Montreal through the establishment of a technical ops as it is a testament to the quality of our team and to this of the Quebec Mining Industry.
This reinforces why we believe the timing is optimal for us to combine our companies. We have both undergone a period of significant investments and have successfully derisked the development risk within our business. We are now both poised to generate significant cash flows and as such are looking to achieve the same next steps. As shown on the bottom right of the page, that to further optimize our assets, generate returns to our shareholder and set ourselves up for the next growth phase through our successful exploration. Due to this strong strategic alignment, We believe that this at the right time for both set of shareholders.
Our companies are worked incorporated together as industry partners over the past few years on a range of common issues including most recently on our response to COVID-nineteen as an example. In early 2019, we worked through a detailed mutual due diligence process. We discussed the terms of a potential transaction, and while both companies saw the strategic rationale for a deal, We were unable to agree on the terms, which appropriately shared the risk and rewards of the combination and mutually agreed to focus on other opportunities. In early 2020, we restarted discussions and we completed mutual on-site due diligence, including a comprehensive assessment of security, operation and exploration. Despite the current market volatility, both teams are pleased that we've been able to agree terms that fairly value the contributions of both companies to a combined business and we look forward to engaging with our shareholders over the coming weeks to discuss the merits of Here is a summary of the agreed terms of the transaction.
Existing Endeavour and Semafo shareholder, we own approximately 70% and 30%, respectively, The new Board of Directors will be comprised of 10 directors, 7 of whom will be nominated by Endeavour and 3 of whom will be nominated by CEMAFO. And we're excited to have key members of CymaFo's management team joining us. Most notably, Benoit will become President in charge of operational performance and CEMAFO, Martin Millett, who will take on the role of Executive Vice President and CFO, with the combined entity upon closing of the transaction. Concerning our offices, the corporate office will continue to be located in London, and we will maintain a strong presence in Montreal, which will become our technical expertise office for the operations. Turning to the next page.
We believe there are numerous benefits for both groups of shareholders. Both companies will benefit from a diversified portfolio with 4 Cornerstone operations within six mines and an additional 4 potential projects. The combined company will have a sustainable cash flow profile the sound balance sheet, which underpins our ability to pursue future organic growth. Our improved diversification and strengthened management team will enhance our ability to manage risks, and the combined company will provide us a stronger foundation in our dealings with governments and key stakeholders. Finally, we will both have the opportunity to participate in the value created through exploration and active portfolio management as well as a strong potential to rerate with improved trading liquidity.
On the another side, our shareholders will benefit from the addition will be immediately a credit on key financial metrics, including NAV per share, earnings per share and cash flow per share. We are excited for how this transaction improves our strategic positioning in West Africa. CEMAFO shareholders we realize an immediate premium and have the potential for additional rerating. It also brings diversification and enhances gross profitability. And lastly, brings the benefit of a long term strategic partner with La Mancha.
Moving on to Slide 8, you can see that the combined group will have an enhanced position in West Africa, which will give us the ability to leverage our size operational know how and well established relationship in the region to be the goal to name in the region. As we've always said, the Caribbean Gesto belt in West Africa is one of the most prospective gold mining regions in the world, and we will have perhaps the strongest position in the region. Looking at some key stats, we believe that borkina Faso and Cote d'Ivoire represents some of the most Countries in the world for gold exploration. Together, they account for nearly 60% of the total land mass of the Birmian Johnston Belt, but only 27% of the current gold production as it is under explored. It is worth remembering that on a global basis, The region ranks number 4 for gold production and number 1 for gold discoveries over the past decade.
So it is already a significant area, but it has more to come. We are therefore excited to be well positioned to grasp this opportunity. Turning over to Slide 9. As we've touched on already, the combination will create the largest gold producer in West Africa. Through our leading presence in Bockcock Gigouard and Bockina Faso.
We believe that it is important to increase our size and diversification not because it makes us stand out on the chart, but more so because it allows us to leverage this added size to enhance our risk management. Rather than duplicating procedures and splitting resources, we will be able to pull our assets, be it from a security standpoint, fiscal operational standpoint. Being able to grasp the geological opportunities also means that you need to be a partner of choice and with additional scale, we will be able to better address the needs of our all our key stakeholders. Turning to Slide 10. Consolidate our holdings in the 200 kilometer Hounde Belt in Bockina Faso to create a world class mining district with 2 mines and strong featured development potential as we illustrate here.
We expect to produce over 400,000 ounce annual leeches from our operations in this belt. As we all know, it is a growing district with significant exploration potential as over 20,000,000 ounces have already been found on this belt. When combined with the Ity belt in Cote d'Ivoire, where we hold extensive exploration permits, covering the most prospective areas of the belt, We believe we hold 1 of the most extensive and prospective land positions in West Africa. Turning to next slide. With this transaction, we see the ability to deliver synergies at the corporate, country and asset level in a number of areas.
First, we believe the combined management team represents an extensive pool of complimentary experience and expertise. In corporate G And A within the 1st year following the close of the transaction. In country, we see significant opportunity to leverage the combined expertise of the of know how to create a centralized technical services hub with immense security across operations capable of delivering cost efficiencies. At the asset level, consolidating the 200 kilometer Hounde Belt in Bockin, Afaso offers mining and exploration synergies as we create a world class mining district. Going forward, there will be opportunities to optimize maintenance and equipment suppliers as well as our workforce across Turning to Slide 12 now.
Most of the Endeavour shareholder will be familiar with this final charge, but this is an opportunity for us to talk about the assets of the combined portfolio fit together. Our strategy has been centered on offering our shareholders exposure to immediate cash flow, from producing mines and offering both near term and long term growth. This transaction, therefore, strengthens our operating platform while increasing our growth optionality. It's great to have more options in the portfolio as ultimately it will increase our capital allocation efficiency given projects and exploration targets compete against one another for capital. On Slide 13, we're diving deeper on the operating assets.
Again, this by the chart might be familiar to most, The bottom axis is mine life and right hand is all in sustaining costs, while the size of the bubble corresponds to production. Our goal has been to move assets into the bottom right box and then ensure they stay there. With this transaction, we'll have 4 cornerstone assets generating significant cash flow and either in the bottom right or the on their way towards it. Let me look each one in more detail. And Boungou at Boungou, the Dash Circle represent the long term production potential, while the solid circle represents 2020 estimates, including 10 months stockpile processing in 2020.
We are confident that we will be able to meet altogether the targeted restart of this operation in Q4 following a stage ramp up towards the end of 2020. At Mana, the priority will be to extend its mine life, which we are confident we can do based on due diligence and successful track record. For Hounde and Ity, the priority now is to bring into production the higher grade discoveries we've made. I'm convinced that optimizing these assets will unlock significant value for all shareholders. Moving to Slide 14, you see there here the combined production profile of the group based on guidance and consensus amounts.
We are confident that our group should produce over a 1,000,000 ounce per year as at very attractive cost. On the next slide, I think it's useful to show the combined group's position on the industry or in sustaining cost curve. As you can see, we are well within the bottom third of the industry cost curve. This is before we see any benefits from the expected synergies that we have identified. Turning now to Slide 16.
We will take a deeper dive into the combined entities project pipeline As we have discussed, the combined company would process an attractive growth project pipeline and 1 of the largest exploration portfolios in West Africa. Our priority in the near term is to focus on improving our cash flow generation, while improving optionality in the portfolio including completion of an updated feasibility study at Kalana, PEA at Fetekro, as well as progressing on Bantou. 17 and talk about the financial firepower, the combined group will process. As you can see from the patch will have access to liquidity sources of $500,000,000, including nearly $400,000,000 in cash and a same balance sheet. Combined, the company will have enhanced liquidity and an improved leverage ratio of 0.7 times net debt to EBITDA, after accounting for the expected La Mancha investment as shown here.
Together, these factors give us the capability to drive future growth, with the comfort of knowing our significant cash position can help us deal with an uncertain global operating environment. Slide 18 shows our production scale compared to our competitors. And you can see we sit comfortably within the top 15 gold producer on a global basis. Again, these metrics are not important for ego. But rather than important because as this industry struggles remain relevant, increased size means that we become more investable for both generalist and resource focused funds.
On Slide 19, You can see our combined pro form a market cap is $2,100,000,000, which also places us among the top 15 global gold producer by market cap. We believe this added scale should help support increased trading liquidity and, in turn, make endeavor more attractive to wider pool of investors. On Slide 20, you can see that both companies significantly improved their return on capital employed 2019, as they completed their construction phases. On a combined basis, the companies would have had an average 11% return on capital, and our target is On Slide 21, we summarized our priorities post integration oriented around our 4 strategic pillars, On the operation side, we will be focused on restarting Boungou by Q4 2020 with an enhanced security and operations plan, This includes working with the government and our partners in booking a vessel in order to ensure that our people, partners, and assets are safe when we restart mining. We will also focus in the short term on achieving supply chain synergies.
On the project development side, we anticipate working to accelerate the Greenfield Fetekro and Bantou projects as well as completing the Calana updated feasibility study. Our third pillar is focused on unlocking the exploration value within our extensive portfolio. We will continue the current program at Ity and Hounde, the focus on the La Plaque and Cary areas. And we also believe there is an opportunity to extend the mine life at both Mana and Bongo through near mine exploration. Finally, we intend to accelerate our deleveraging and continue our active portfolio management strategy while continuing to focus on shareholder returns Let me now take a moment to summarize the rationale on Slide 22.
This combination is competing on many levels and delivers benefits to both sets of shareholders. With this transaction, we're creating a leading West African gold company with annual production of more than a 1,000,000 ounce of gold, 10,000,000 ounces of reserves and 20,000,000 ounces of resources at a very competitive all in sustaining cost. We are joining forces to become the largest gold producer in West Africa, including the number one producer in both Cote d'Ivoire and Bockina Faso, two countries which account for 2 thirds of the prolific and highly perspective Birimilang Inston Belt. We will have a diversified portfolio of 6 profitable operating mines with 4 Cornerstone mines with each producing more than 200,000 ounce of gold per year. We are establishing a strong project pipeline with optionality through 4 development stage projects.
Our capital markets profile will be enhanced with a sustained cash flow profile, strengthened balance sheet, improved trading liquidity, and broader appeal to investors in today's markets. And we are creating a stronger company with an enhanced leadership team more capable of managing the risks associated with our business. We are excited today and for what the future holds for new endeavor. Notwithstanding the current market volatility, and perhaps in part because of the uncertainty, this is the right time and the right transaction, bringing together 2 accomplished management groups we will be the right team to lead the company going forward. I would now be happy to take any of your questions for Ben and myself.
I don't know if the operator can hear us so that we can proceed to the questions.
Hello, sorry. I was on mute. Our ladies and gentlemen will now begin the question and answer session. Session. Your first question comes from the line Advis Habib.
Please go ahead. Your line is now open.
Hi, thanks. Thanks for taking my questions. Sebastian Benoit. Congratulations on this announcement of the deal. Just a couple of questions from me.
Number 1, And I apologize if you guys have already spoken about this. I was going back and forth with clients during call. But priorities for Endeavor after this acquisition, in regards to exploration and development, Obviously, you're going, you're coming out with the studies on Kalana and Fetekro, and Bantou with semaphor obviously is was in their pipeline as well. Any kind of color in terms of which project do you feel that would fit in endeavor's pipeline in terms of priorities, which one goes ahead one's kind of falling behind?
Thanks, Avayid. No, I think that I this stage, we have on the table, different targets that we need to move forward. Clearly, as we always said, between Kalana and Fetekro, FETechro seems to be very promising. So we are pushing ahead on Fetechro. We are hoping to develop and published a scoping study in Q2 for Fetekro.
CEMAFO has been working on the same timeline also for Bantou So they're hoping to publish on a scoping study. What's interesting with Bantou is that they have already a bit more than 2,000,000 ounces of resources and there is a target to reach 2,500,000 to 3,000,000 ounces by year end. And I think this will be completing interestingly with Fetekro where we're hoping to be beyond 2,000,000 ounces also before before year end. So in any case, the strategy remains the same for the combined group. 2021 is going to be focused on cash flow generation.
And as you can expect, the combined group will be generating a lot of net cash flow. And in parallel, we'll continue to push both the exploration and push those 3 potential projects. So that in 2022, we are able to give a green light to the best one in the pipeline.
Got it. And then just Sebastian, one more for you, then I'll add one to Benoit. Just in terms of, with this acquisition of semaphore, does Karma still fit in Deborah's portfolio?
Well, we have a cautious approach to Karma. You saw that, as part of the year end results, we took an impairment on the Karma assets. And you should recall the looking at the breakdown of the return on on the different assets that we have in our portfolio. Karma is the lowest one. I think that we'll continue to have an active portfolio management on our different assets.
I think the current environment and a few weeks ago, we were close to 1700 gold price environment. Now we're back to 1500 So, Karma still have another 3, 4 years of reserves and we see potential to get further into Karma. So we'll monitor that, but obviously Karma is the most challenged asset in the current portfolio.
Got it. And Jen, just moving on to Benoit, in terms of Bongo, obviously restarting mining operations at Bongo, the discussions going on with several contractors. Can you give us some indications that the discussions are still in place and the vaccines with endeavor coming on as the new owner now. And also, what's the situation with the fly in and fly out as well? I mean, is endeavor still looking to kind of go forward with that?
Or is that going to be on to a contractor?
Okay. So I will go with the first part of the questions of Ace on Boungou. Yes. The mining contractor, as I said before, we had some discussions with different mining contractors in order to restart mining in Q4. Those those discussions are selective.
Of course, now with endeavor, we will continue those discussion and see what fits the best for the group. It just makes even more sense now as a bigger group to be able to share whether it's going to be contracted or share some equipment or and stuff like that. I think it's just even better. But we were in discussion and we will continue as our plan is still to restart mining in Q4. So on that side, I think they have a endeavor when when we had some talking together, of course, they are the same goal as we do.
So it's important for the group that we maintain where we were on the booboo track.
Yes. And I think, Orais, I'll add that, as I visited, you know, Boungou about 4 weeks ago, We went there with a part of the CEMAFO management team and some of my key managers. Including ahead of security. We are confident that the plans that have been laid out and with some improvements with the strengths and group, combining both groups that, the restart in Q4 is something achievable. There are some sensible discussions going on already at the same referral level with contractors.
Some of those contractors, we know them well and we know that they are very excited with the opportunity of getting the job at Boungou. So we're reasonably comfortable and confident that this will be achieved quickly.
And just a question just a comment on fly in and fly out?
Well, I think that, this is part of the, you know, current discussions that we're having with Benoit and the team. And also, keep in mind that there is another actor, which is critical in this environment, which is the government of Burkina Faso. So there are discussions going on between the teams on the right security plan for restarting the mine and ensuring the safety of our employee and staff, including the contractors. I had this morning a quick phone call with the president of Burkina Faso, which has been, you know, very, very supportive of the transaction and pleased with the announcement. And I know that in that spirit, you will also dedicate even more resources to ensure that we are able to meet this target for Boungou.
Okay. Thanks guys. Again, congrats on like a combination. And I'll leave it at that. Thanks.
Thank you, Alex. Thanks.
Thank you. Your next question comes from the line of Chris Thompson. Please go ahead. Your line is now open.
Hi, good morning guys. Congratulations. Makes a lot of sense. The combination guess I've got two questions, Benoit. These are probably for you, but obviously I've been out of touch with CFO for a couple of years, but you remind me please of the capital requirements to complete, I guess, the underground development and from Mana as well as capital requirements for this year, with a view on obviously bringing Bongo online in Q4.
Capital requirements, for the underground, of course, development has been completed. We said we would reach the 2000 ton per day capacity at the end of the first quarter, which we are on line for. There is still some development to go, because there's still, I think, it's $14,000,000 this year. Continue development underground as we need to go even deeper in the, to get to the bottom of it. At Boungou, capital requirements, they're not really used capital requirements to get back on track.
What we have announced is $10,000,000 in total for the year, $3,000,000 of sustaining $7,000,000 of stripping. It's really normal, normal capital expenditure. So not big enough required this year.
All right. Thank you, Benoit. And then just a final question. Just quickly, I mean, Just remind me on where these two assets are positioned based on their production and cost profile. After this year, maybe?
You mean, you mean we're at Boungou or?
Both, both minor and Boungou.
Yes. So what we have announced this year is, of course, it's not a normal year. Costs and boohoo are a bit higher than where they should be at. We announced the guidance in 2 different phase. So the 1st phase, of course, has a we're processing stockpile with the highest grade.
So we are in the $500 an ounce. For the year, we're 700, but that's not a normal year because we're crossing lots of stockpile. But cost last year, we're below 500 and we're looking to decrease in that vicinity in the coming years as we will get back on mining in Q4. And we have already some higher grade ore is available in the pit. I agree that is available as soon as we restart mining.
So it should get back on track on cost side as well. Mana, this year, it's about $1100 go, all in sustaining costs. That includes everything. That includes the sea on the ground to go deeper for the remaining of the mine life. We have 5 years mine life on the ground.
So of course, the confusion of the underground will be higher next years as this year it's the only the starting point. And as we, of course, this is a 5.3 gram ore body. So as we remind this, with even more tonnage, of course, the fact will go down. There is some stripping that was required this year at Mana, at WONA. There's still some that is planned for the years to come, but of course, as we are moving in our pit, shipping ratio will decline.
So, Erica.
Chris, I think that, a good way to look at it is, going forward, we believe that the combined group we'll have from 'twenty one onwards, all in sustaining costs below $800.50.
That is for the company, Seth?
Yes, the combined growth, yes.
And do you see these 2 assets? Where do these two assets fit in contribute to that next year on a cost basis?
Well, again, as Benoit was saying, Bongo is a low cost operation given the brand new and the high grade. So Mana is the one which has higher all in sustaining costs, but, it's been also including the development of the underground mine. So, overall, the way I'm looking at the combined group is below $850,000,000 all in for the next, the next 4, 5 years.
Okay. All right. Thanks, Ed. Thanks, Benoit.
Thank you. Your next question comes from the line of James Bell.
Yes, thanks for taking my question. I guess I just had one in relation to capital allocation for use about I mean, you've talked about Endeavor sort of pivoting in its capital allocation post the move below one time net debt to EBITDA. Clearly, the pro form a will be below that level. How should we be thinking about dividends given the potential strong cash generation we're gonna see over the next couple of years from the pro form a group?
Sure. Thanks, James. Mean, the way we're looking at it is, hasn't changed. The next 2 years is really going to be focused on cash flow generation and no particular large capital for development of a new project. Therefore, with the current balance sheet that the combined group will have and will have at the end of the year in particular going through a strong cash flow generated by the 4 key mines.
Will be even more on a stronger position to be able to start a dividend policy. I just feel that it would be premature to talk about it right now given the current financial crisis and coronavirus environment. I've seen a lot of peers that have been now came telling dividends for 2020. So, let's wait for the closing, which to be done as quickly as possible, we'll be able to present the strategy for the combined group going forward. And I'm sure that people will realize how much cash flow this combined group is able to generate in this environment.
Okay, that's very clear and fair points there. I guess, maybe I'll save my question on M And A then until we've had closure in terms of potential further transactions. But In terms of a London listing, again, slightly selfish question being a London based analyst, but does a larger pro form a group mean that consideration is made towards a potential London listing again?
Sure. I mean, you know, that, it's always been part of our thinking to think about a London listing at some point. We always said that we needed for that, I mean, to have a bigger size, which this transaction hopefully will provide us and also to finish the completion of all the key projects which both companies have now done. I think it's important to stress that over the last 2 years, Both companies have been through a lot of different projects with Endeavor Building in a row, Hounde and Ity. And on the other side, CEMAFO building Boungou and also getting the on the ground done at you, which has been now derisked So we are entering with this strong cash flow from the joint company in the sweet spot hopefully to think further about a London listing, yes.
Okay. That makes sense. And then just one more quick one. We're just seeing Newmont basically remove its guidance for 2020. We've got a number of Americas focused operators putting operations on care and maintenance all because of COVID-nineteen.
I just wondered if you could give us a bit more color on what Endeavour's kind of management policies are around that and what you're around the situation as it stands for your mines?
Sure. Well, as I was saying, the beginning of the, of the webcast, the way we're looking at the current virus environment is, we've described that into 3 levels. Level 1 is the current level where we are at, where the virus is spreading outside West Africa. If you take the number of cases currently in Burkina Faso and Cote d'Ivoire, you're between 30 60 case and has been highly contained into the capital cities. And therefore, at this stage, level 1, we are operating normally we've been putting all the barriers to ensure that there is no access to people that have been potentially in contact with the virus to site.
And therefore, for the moment, all sites of the combined group, whether Endeavour or Semapo, are operating according to their plan. What we need to follow and monitor is, the spread potential spread of the virus in country. So in, in Cote d'Ivoirel in Burkina Faso, which, again, is not the case yet. And I think that both governments have taken strong measures early on as early as possible. They've already closed all the borders to ensure and they're able to contain the spread of the virus.
So level 2 will be in case of a spread of the virus in country to make sure that we are able to lock down the mine and continue to operate, but isolating the mine from the rest of the environment. And it's only a near term, in our, results that, we hope that we won't have to go to, or care maintenance of the operations in level 3 that might be imposed at some point by the government. But at this stage, we're not yet there. We're still in level 1 and we're still able to continue to operate properly and putting all those measures in place.
Okay. That's very clear. Thanks for taking my questions. Thank you. Thank
you. Your next question comes from the line of Carrie Smith. Please go ahead. Your line is now open. Hello, Carrie Smith.
Please go ahead. Your line is now open.
Okay. So maybe we'll move to the next one and we'll come back. So we move to the next one, operator. If there is no further questions, You might end up the call now. I'm not sure if the operator hears this, but, well, I just would like to,
We have, no questions. If you wanna close the call now.
Yep. So first of all, let me thank you all for attending this conference call. I think that Benoit, myself, and our joint teams are very excited about this transaction. I'd like to congratulate both teams that have worked harder over the last few weeks in particular. To make this transaction happen.
And very excited with getting Benoit on board with us and leading this company to the next level. So again, thank you very much to all of you and looking forward to the next step. Thank you. Benoit,
this concludes our conference call for today. Thank you for participating. You may now disconnect.