The Challenge
Delivering a Definitive Feasibility Study (DFS) Quantity Surveyor (QS) report on a Major Project in 4 months
Producing a Definitive Feasibility Study (DFS) Quantity Surveyor (QS) report for a $0.5 billion USD Gold Mining project within a tight 4-month timeframe is a significant challenge – especially when the design complexity is high.
Time Constraints vs Design Complexity
The Lafigué Gold Project project involved intricate, multi-disciplinary designs that included structural, civil, mechanical, and electrical. These design inputs contain complex documents and estimates that take time to collate, digest and fully comprehend. With only four months, the ProfitPays QS team in collaboration with Fowler QS C&CM Services worked dilligently to deliver an accurate assessment and sound feasibility insights on the Project.
High Financial Stakes
At half a billion US dollars, even minor errors in the feasibility study can lead to substantial cost overruns. ProfitPays had to balance speed with precision.
Strategic Significance
Lafigué is Endeavour’s second mine in Côte d’Ivoire and joins a portfolio of six operating mines across West Africa. Its successful delivery reinforces Endeavour’s reputation as a reliable mine builder and operator.
Our Approach
Tailored Strategy. Integrated Delivery.
Collaboration & Risk Management
ProfitPays brought an agile and cross-functional collaborative approach with the Client and the key stakeholders. ProfitPays completed detailed reviews on areas such as:
- Pre-Feasibility (PFS) vs Definitive Feasibility Study (DFS)
- Identification of DFS examples and accuracy guidelines
- Estimate review and determination on suitable Association for the Advancement of Cost Engineering (AACE) classification
- Review of Bills of Quantities and Material Take-Offs
- Owner costs
- Review of the study report and project schedule
- GAP Analysis
- Risk register review and oversight on contingency calculations using the deterministic method
- Analysing the Project models and understanding the Level of Development (LOD) achieved
- Review of the Project Execution Plan (PEP)
On conclusion of the various analysis, workshops and reviews. ProfitPays drafted a detailed QS Report.
Key Services
Core Services That Enabled Success
Strategic solutions that ensured alignment between cost, design, and on-site execution.
-
Quantity Surveying Reports
-
Report Writing
-
Gap Analysis
-
Estimating
-
Measurement
-
Risk Analysis
The Results
Project Success
A comprehensive QS Report delivering stakeholder confidence - all delivered on time
Ahead of Schedule & Within Budget
Endeavour Mining’s Lafigué Gold Project was delivered ahead of schedule and within budget, with a final capital cost of US$477 million and commercial production commencing in September 2024.
Endeavour Mining’s Lafigué Gold Project in Côte d’Ivoire stands as a textbook example of disciplined project execution in the gold mining sector. Discovered through a modest exploration investment of US$31 million, the project evolved from greenfield status into a cornerstone asset for Endeavour, showcasing its ability to unlock value organically through exploration.
Timeline and Development Milestones
The Lafigué deposit was first drilled in 2018, following a soil geochemical sampling campaign in 2017 that identified over 20 targets within a 12 km radius. A Definitive Feasibility Study (DFS) was completed in 2022, confirming the project’s robust economics and paving the way for construction. Groundbreaking began in Q4 2022, and remarkably, first gold was poured in June 2024, ahead of the projected Q3 2024 target. Commercial production officially commenced in September 2024, marking a swift and efficient ramp-up phase.
Budget and Capital Expenditure
The DFS outlined an initial capital cost of US$477 million, which was adhered to throughout the construction phase. The project’s financial metrics were compelling: a post-tax Net Present Value (NPV) of US$477 million and an Internal Rate of Return (IRR) of 21% at a conservative gold price of US$1,500/oz. Pre-tax figures were even stronger, with an NPV of US$664 million and IRR of 25%, delivering a payback period of just 3.9 years.
Final Account and Operational Outlook
Lafigué is designed as a conventional open-pit operation with a 12.8-year mine life, producing an average of 203,000 ounces of gold annually at a low All-In Sustaining Cost (AISC) of US$871/oz. The mine has proven and probable reserves of 49.8 million tonnes at 1.69 g/t gold, and the processing plant – capable of handling 4 million tonnes per year – is currently operating at 87% plant availability and 72% of nameplate capacity, with average recoveries of 95%.
The final account confirms that the project was completed on budget and ahead of schedule, with no major cost overruns or delays. The EPCM contractor, Lycopodium, played a key role in maintaining project discipline, having previously delivered several successful builds for Endeavour across West Africa.
Gallery
Visual Highlights From the Build
Explore key stages of the project through renderings, plans, and progress photos.
Feedback
Client Testimonials
Endeavour Mining
ProfitPays assisted Endeavour with QS services, interrogating the capital cost estimate prepared by our project consultant. Michael was diligent and responsive, conducting a thorough review and providing timely reports. He worked seamlessly with the project consultant and collaborated with all parties involved. The final result gave us confidence in the final estimate, which was confirmed during the project’s execution phase.
Endeavour Mining
ProfitPays assisted Endeavour with QS services, interrogating the capital cost estimate prepared by our project consultant. Michael was diligent and responsive, conducting a thorough review and providing timely reports. He worked seamlessly with the project consultant and collaborated with all parties involved. The final result gave us confidence in the final estimate, which was confirmed during the project’s execution phase.
Did you like it? Share it!
