Lycopodium secures A$42.9 million EP contract for Endeavour Mining’s Assafou gold project
Lycopodium Limited has been awarded an Engineering and Procurement (EP) services contract valued at approximately A$42.9 million for Endeavour Mining’s Assafou Gold Project in Côte d’Ivoire. The contract covers EP services for a 5.0 Mtpa carbon-in-leach (CIL) processing plant and associated non-process infrastructure.
The Assafou deposit sits on the Tanda-Iguela property in eastern Côte d’Ivoire, approximately 280km northeast of Abidjan, adjacent to the Ghana border. EP activities have commenced, though the project remains subject to Endeavour’s Board of Directors making a Final Investment Decision (FID), expected before year-end 2026.
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A$42.9 million contract scope and project significance
The EP contract encompasses early works, engineering and design activities, and the procurement of long-lead items. The Assafou deposit is situated within the Birimian and Tarkwaian geological belts and is considered one of the most significant gold discoveries in West Africa over the past decade, with the potential to be another flagship asset for Endeavour.
Peter De Leo, Managing Director & CEO, Lycopodium
“We are extremely pleased to be given this opportunity to again work with Endeavour in the delivery of another high-quality gold operation in Africa, with Assafou set to become a cornerstone asset for the company.”
Key contract and project facts at a glance:
- Contract value: A$42.9 million
- Scope: EP services, including engineering, design, and procurement
- Processing plant: 5.0 Mtpa CIL
- Location: Tanda-Iguela, Côte d’Ivoire (approximately 280km northeast of Abidjan)
- FID: Expected before year-end 2026
What is an EP services contract — and why does it matter?
Engineering and Procurement (EP) services cover two core phases of a mining project’s development. The engineering component involves detailed design work and the preparation of technical specifications for the processing plant and supporting infrastructure. The procurement component involves sourcing and ordering the equipment and materials required to build the facility.
EP scope is distinct from a full EPCM (Engineering, Procurement, Construction Management) contract. EPCM is a broader mandate that extends through to managing the physical construction of a project. An EP contract is typically awarded at an earlier stage, often before a project owner has committed to full development, allowing critical preparatory work to advance in parallel with the FID process.
“Long-lead items” refers to equipment that has lengthy manufacturing or delivery timelines — such as large processing mills or specialised electrical components. Ordering these items early is necessary to keep the overall project schedule on track, even before construction begins.
For investors, the fact that Lycopodium has commenced EP work ahead of FID is significant. It means revenue is being generated now, and the company is deeply embedded in the project. If Endeavour proceeds with FID, Lycopodium is well positioned for continued involvement into the full implementation phase. Continued execution of the contract remains contingent upon that FID approval.
Lycopodium’s 12-year relationship with Endeavour Mining
Lycopodium’s involvement with Endeavour Mining spans more than 12 years, during which the company has delivered more than five major capital projects for the client. For the Assafou project specifically, Lycopodium delivered both the Pre-Feasibility Study (PFS) and the Definitive Feasibility Study (DFS) before being awarded the current EP contract.
This continuity across multiple project stages reflects a level of client trust that is difficult to replicate. Having delivered the PFS and DFS, Lycopodium carries deep technical familiarity with the Assafou project, reducing handover risk and supporting smoother EP execution. Repeat-client wins of this nature also reduce business development costs and tend to reflect a track record of execution quality.
The Tulu Kapi Gold Project in Ethiopia followed the same pattern, with Lycopodium converting early feasibility work into an A$118 million execution contract, a precedent that illustrates how deeply embedded the company can become across the full lifecycle of a project.
The table below summarises Lycopodium’s confirmed involvement on the Assafou project across study and execution stages:
| Project Stage | Scope Delivered | Status |
|---|---|---|
| Pre-Feasibility Study | PFS delivery | Completed |
| Definitive Feasibility Study | DFS delivery | Completed |
| EP Services Contract | Engineering, design, and procurement | Underway (subject to FID) |
Continued contract execution and any advancement to full project implementation remain contingent on FID approval, expected before year-end 2026.
Investment thesis — repeat contracts and African pipeline
This contract win reflects the core of Lycopodium’s business model: generating recurring revenue through long-term client relationships, particularly in the African gold sector. Rather than competing for each project from scratch, the company’s track record with clients such as Endeavour positions it to move through successive project stages with the same counterparty.
Lycopodium’s operational presence across Africa, including offices in Ghana, South Africa, Namibia, Botswana, and Tanzania, provides direct relevance to projects of this nature. That established regional network supports the company’s ability to deliver on the ground in West Africa.
From a near-term revenue perspective, EP activities have commenced, meaning the A$42.9 million contract is contributing to Lycopodium’s workbook now. The FID decision, expected before year-end 2026, represents a clear catalyst. If Endeavour’s Board approves full project development, the scope of Lycopodium’s involvement could extend beyond the current EP mandate into full project implementation. The announcement does not disclose a contract value for any potential future scope beyond the current EP services contract.
The Katanning Gold Project in Western Australia presents a structurally similar setup, with Lycopodium holding preferred EPC contractor status and an A$6.0 million early works engagement ahead of an FID targeted by end of 2026, the same contingency structure governing the Assafou contract.
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