Slide 1: Management Presentation
Management Presentation Results for the First Quarter 2014 ended March 31, 2014 Webcast Presentation for May 12, 2014 GOLD PRODUCER WEST AFRICA CASH FLOW
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce rates, increases in market prices of mining consumables, possible are non-GAAP performance measures with no standard meaning variations in ore reserves, grade or recovery rates; failure of under IFR
Slide 3: Introduction
Introduction Neil Woodyer CEO Attie Roux Christian Milau COO CFO Amounts expressed in US$, unless otherwise indicated GOLD PRODUCER WEST AFRICA CASH FLOW 3
Slide 4: Q1 2014 Highlights
Q1 2014 Highlights • Record gold production from four mines: − Produced 105,912 ounces − Revenue of $137 million − AISC of $1,059/oz1 − All-in sustaining margin of $25 million Aerial view of Agbaou • Agbaou is demonstrating strong, sustained performance: − Produced 24,086 oz − Mine-level AISC of $64
Slide 5: Q1 2014 Highlights
Q1 2014 Highlights Total / Agbaou1 Tabakoto Nzema Youga Average Production (oz) 24,086 33,472 28,487 19,867 105,912 Cash cost / oz $594 $1,157 $890 $680 $879 AISC / oz $647 $1,320 $1,046 $758 $1,059 • Good cost profiles at three of our mines and, as expected, a high cost during transitional phase of
Slide 6: Q1 2014 All-in Sustaining Margin and AISC
Q1 2014 All-in Sustaining Margin and AISC 3 Months Ended 3 Months Ended Mar 31, 2014 Mar 31, 2014 US$ M In Gold Ozs* Gold sold (ozs) 105,666 Gold revenue $137.2 105,666 US$ M $/oz Less: Royalties 7.2 5,512 Royalties $7.2 $68 Less: Cash costs for ounces sold 92.9 71,508 Cash costs for ounces sold 92.
Slide 7: Q1 2014 Reconciliation of Cash Position
Q1 2014 Reconciliation of Cash Position US$ M Cash - Opening Balance (Dec 31, 2013) $73.3 • As of March 31, 2014, cash balance All-in sustaining margin 25.3 of $68 million Non-sustaining investments • During Q1/2014 $20 million investments Tabakoto 16.5 in new mines and development Nzema and other 2
Slide 8: Operating Summary – Agbaou Gold Mine, Côte d’Ivoire
Operating Summary – Agbaou Gold Mine, Côte d’Ivoire Q1 20141 Q1 2013 2 months 3 months Tonnes of ore milled ‘000s 318 n/a Average gold grade milled g/t 1.69 n/a Gold ounces sold oz 21,888 n/a Total cash cost $/oz $594 n/a Royalties $/oz $51 n/a Sustaining capital $/oz $2 n/a Mine-level AISC $/oz $64
Slide 9: Operating Summary – Tabakoto Gold Mine, Mali
Operating Summary – Tabakoto Gold Mine, Mali Q1 2014 Q1 2013 3 months 3 months Tonnes of ore milled ‘000s 350 201 Average gold grade milled g/t 3.25 4.60 Gold ounces sold oz 35,407 26,627 Total cash cost $/oz $1,157 $939 Royalties $/oz $78 $98 Sustaining capital $/oz $85 $228 Mine-level AISC $/oz $1
Slide 10: Update on Segala Underground Development
Update on Segala Underground Development • At April 30, 2014: – Decline face at 201 metres below surface – 1,271 metres in the decline – 3,038 metres of lateral development on four levels to provide access to the ore body • Commenced production stoping in Q2 2014 using owner operated fleet Segala 20
Slide 11: Operating Summary – Nzema Gold Mine, Ghana
Operating Summary – Nzema Gold Mine, Ghana Q1 2014 Q1 2013 3 months 3 months Tonnes of ore milled ‘000s 396 536 Average gold grade milled g/t 2.75 1.58 Gold ounces sold oz 28,533 22,013 Total cash cost $/oz $890 $1,073 Royalties $/oz $73 $82 Sustaining capital $/oz $83 $75 Mine-level AISC $/oz $1,04
Slide 12: Operating Summary – Youga Gold Mine, Burkina Faso
Operating Summary – Youga Gold Mine, Burkina Faso Q1 2014 Q1 2013 3 months 3 months Tonnes of ore milled ‘000s 251 241 Average gold grade milled g/t 2.78 3.26 Gold ounces sold oz 19,838 21,286 Total cash cost $/oz $680 $657 Royalties $/oz $62 $79 Sustaining capital $/oz $16 $62 Mine-level AISC $/oz
Slide 13: Houndé Project – In Permitting
Houndé Project – In Permitting Houndé Property Targets and Trends • Feasibility study completed in 2013 with 180,000 ozs per year over 8 years and AISC/oz of less than $800/oz • Houndé to expand Endeavour’s low-AISC gold production base • Submitted for permitting in Nov 2013 – 6 to 9 month process –
Slide 14: Conclusion
Conclusion • Achieved record production in Q1 2014 at improved cost per ounce – 106,000 ozs at AISC/oz of $1,059 – 10% reduction in AISC/oz as compared to Q1 2013 – Benefiting from cost reduction program, Tabakoto mill expansion and from low-AISC cost of newly constructed Agbaou mine • Good cost pro
Slide 15: Questions?
Questions? Neil Woodyer CEO Attie Roux Christian Milau COO CFO Doug Reddy SVP Business Development For additional information, please contact: Doug Reddy on +1 604 609 6114 dreddy@endeavourmining.com 15
Slide 16: Appendix: Q1 2014 Cash Cost Detail by Mine
Appendix: Q1 2014 Cash Cost Detail by Mine Tabakoto Nzema Youga Agbaou2 Total Mining Physicals Total tonnes mined - Open pit 000t 1,740 1,943 1,112 2,878 Total tonnes mined - Underground 000t 244 - - - Total ore tonnes - Open pit 000t 106 313 327 507 Total ore tonnes - Underground 000t 121 - - - Tot