Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (April 2016)
43 slides from Endeavour Mining's investor presentation, April 2016
Slide 1: Corporate Presentation: Creating a Premier African Gold Producer
TSX:EDV Endeavour Mining April 2016 Corporate Presentation CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP market prices of mining consumables, possible variations in ore reserves, performance measures with no standard meaning under IFRS. This grade or recovery rates; failure of plant, equip
Slide 3: Introductions
Introductions Contents: Section 1: About Endeavour Mining Section 2: True Gold Acquisition Appendix 1: Asset Description Appendix 2: Corporate Information CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 4: Section 1: About Endeavour Mining
Section 1: About Endeavour Mining CREATING A PREMIER AFRICAN GOLD PRODUCER 3
Slide 5: Endeavour Mining Overview
Endeavour Mining Overview Intermediate West African Gold Producer with 4 Producing Mines at Low AISC SENEGAL MALI – 2015 production: 517 koz Tabakoto Mine Karma GAMBIA Project – 2016 production: 535-560koz BURKINA FASO – 2015 AISC : 922 US$/oz GUINEA- Bamako BISSAU Ouagadougou – 2016 AISC: US$870 -
Slide 6: Building A Premier African Gold Producer
Building A Premier African Gold Producer Current Gold Production Profile (100%) and AISC (Mine-Level, US$/oz) 1,000 $1,2 $1,137 +900koz Strategic Objective 900 $1,1 800 for 2018-2020 700 $1,010 $1,0 $922 ~ 900 koz 600 500 462koz 517koz $90 YEARLY PRODUCTION 400 $800 $80 317koz 300 $70 < 800$/oz 200
Slide 7: 4 Strategic Levers
Dynamic Portfolio Management AISC, US$/oz Portfolio Strategic Matrix 4 Strategic Levers $1,100/oz Decreased costs from >1,300/oz $1,050/oz 1 Youga OPERATIONAL (40-45koz) Nzema $1,000/oz EXCELLENCE (110-130koz) Tabakoto (155-175koz) $950/oz 2 Cut-back Optimization PROJECT + exploration DEVELOPMENT $9
Slide 8: Operational excellence – Delivering objectives
1 Operational excellence – Delivering objectives 1) Increase Production 2) Decrease All-in Sustaining Cash Costs Production, on a 100% basis in koz AISC, in US$/oz +11% $1,137/oz 535-560koz 517koz 466koz -9% $1,010/oz 324koz $922/oz $870-920/oz 2013A 2014A 2015A 2016 Guidance 2013A 2014A 2015A 2016
Slide 9: Operational excellence – Mine production and AISC
1 Operational excellence – Mine production and AISC Group AISC Production, All-in Sustaining Cash Costs, decreased by 9% in koz on a 100% basis in US$/oz $1,010 200 +32% in 2014 $922 2016E 2015 2014 621 in 2015 Agbaou 181 180 576 650-700 +19% 165 -175 160 2016E 2015 2014 155 -175 Tabakoto 1,335 151
Slide 10: Operational excellence – Improved Balance Sheet
1 Operational excellence – Improved Balance Sheet • Net debt reduced by 43% in 2015, from US$254 million to US$144 million with US$60 million debt voluntarily reimbursed • Strong liquidity and financing sources of $352 million and improved net debt position supports: – Karma ramp-up from final commi
Slide 11: Operational excellence – Free cash flow expected to increase
1 Operational excellence – Free cash flow expected to increase • At US$1,150 gold price, AISC margin of 2016 production guidance of 535-560koz at AISC of US$870-920/oz approximately US$138m in 2016, or Production Guidance1, ounces AISC Guidance, $/oz US$255/oz Agbaou 165,000 - 175,000 Agbaou 650 - 7
Slide 12: Develop Projects: Houndé and Ity CIL are top tier projects
2 Develop Projects: Houndé and Ity CIL are top tier projects West African Peer Projects: $1,000/oz 2 top-tier West African Mine life and All-in cost (including Capex) projects: 1. Houndé Project in Burkina Faso, $950/oz All-in Cash Cost, US$/oz (AISC + Initial Capex) Banfora which is fully permitted
Slide 13: Unlock Exploration Value – Long-term planning underway
3 Unlock Exploration Value – Long-term planning underway • One of the largest exploration packages in Most West African gold findings are located in the Birimian greenstone belt West-Africa • Capital constrains since 2010 has limited exploration to focus primarily on replenishing mined ounces • A st
Slide 14: Opportunistic M&A to increase quality of portfolio
4 Opportunistic M&A to increase quality of portfolio • Priority is Internal growth before M&A 2015-2016 transactions improved quality of portfolio consideration • M&A is driven by value creation and Youga Mine cash-flow per share increase, NOT Strategic Partnership divestment Acquisition of producti
Slide 15: Why True Gold?
4 Why True Gold? Karma Production Profile • Fits with our M&A criteria : AISC (US$/oz) Production based on reserves (koz) – Production-ready with immediate 160 cash flow generation 140 – 110-120koz low-cost production at Objective of converting 120 100 AISC of ~US$700/oz on average over 668 639 636
Slide 16: Combination with True Gold Mining
4 Combination with True Gold Mining • All share offer: – Each True Gold common share exchanged for 0.044 of an Endeavour Mining common share – 43% premium based on each company’s closing price as at March 3, 2016 and 33% based on 20-day VWAP – Share consideration represents a value of ~C$0.57 per Tr
Slide 17: Benchmarking vs Peers – Gold Production
Benchmarking vs Peers – Gold Production 2016E Gold Production (kozs)(1) +900 795 794 786 655 555 537 526 480 422 412 370 285 256 236 236 100 2015 – 2018E Annual Gold Production Growth (2) 20.9% 20.4% 20.1% 15.4% 14.8% 14.3% 10.9% 6.8% Average: 7.3% 5.5% 4.7% 3.8% 2.8% 0.8% (1.8%) (7.7%) B2Gold PF ED
Slide 18: Benchmarking vs Peers – 2016E Price / Cash Flow
Benchmarking vs Peers – 2016E Price / Cash Flow • With continued strong execution of Endeavour’s existing asset portfolio, and Karma brought into production the combined company is expected to generate significant operating and free cash flow 2016E Price / Operating Cash Flow 12.1x 9.4x 8.6x 8.3x 6.
Slide 19: Conclusion: Endeavour's Re-rating has begun
Conclusion: Endeavour’s Re-rating has begun 350 1,400 +100% 300 since announcement of strategic 1,200 Volume traded (EDV shares) partnership with La Mancha EDV TSX Global gold index 250 1,000 200 800 150 600 La Mancha Strategic partnership Transaction close announced 100 400 50 200 0 0 CREATING A PR
Slide 20: Appendix 1: Asset Description
Appendix 1: Asset Description CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 21: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Quick Facts (on 100% basis) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 14.4Mt @ 2.5 g/t for 1.180Moz Côte d’Ivoire (incl. of Reserves) Inferred: 1.2Mt @ 1.7 g/t for 0.065Moz Ity Mine Reserves 13.2Mt @ 2.4 g/t for 1.027Moz Agbaou Up to 2.2 Mtpa Gravity/
Slide 22: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Agbaou achieved record production in 2015, up 24% over the previous year with a 20% increase in mill throughput Mining and continued benefit from mining free-dig oxide ore Waste (k
Slide 23: Agbaou Exploration Potential – Côte d'Ivoire
Agbaou Exploration Potential – Côte d’Ivoire • 47,620m drilled in 2015, totaling Agbaou Site Map 475 holes, with aim of replacing depletion and extending oxide ore mine life • Drill results confirmed the continuity of oxide mineralization at the pit extensions and at surrounding targets • Results in
Slide 24: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quick Facts (on 100% basis) Ownership 80% Endeavour, 20% government in Mali Resources M&I: 18.5Mt @ 3.1 g/t for 1.844Moz Mali (incl. of Reserves) Inferred: 9.0Mt @ 3.6 g/t for 1.023Moz Reserves 6.4Mt @ 3.5 g/t for 0.725Moz Processing Rate 1.4 Mtpa Gravity/CIL Plan Tabakoto Mine
Slide 25: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Tabakoto increased production by 19% over the Mining previous year as the mine benefited from the Waste (kt) 1,314 2,286 6,407 6,453 start of mining of Kofi C open pit and the full Ore Mi
Slide 26: Tabakoto Exploration Potential – Mali
Tabakoto Exploration Potential – Mali • Located on the same trend as Randgold’s Tabakoto Site Map Loulo property which hosts >11 Moz • After significantly optimizing and improving the mining operation, exploration to become a greater focus • Objective of replacing production depletion and extending
Slide 27: Nzema Mine – Ghana
Nzema Mine – Ghana Quick Facts (on 100% basis) Ownership 90% EDV, 10% government of Ghana Resources M&I: 34.6Mt @ 1.3 g/t for 1.490Moz Ghana (incl. of Reserves) Inferred: 5.9Mt @ 1.3 g/t for 0.244Moz Reserves 4.7Mt @ 2.4 g/t for 0.356Moz Processing Rate 1.6 Mtpa Gravity/CIL plant Nzema Accra Gold Re
Slide 28: Nzema Mine – Ghana
Nzema Mine – Ghana Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Nzema’s production remained fairly constant Mining over the previous year as the mine strategically Waste (kt) 1,826 1,063 6,963 4,096 increased the levels of purchased ore to Ore Mined - o
Slide 29: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Quick Facts (on 100% basis) 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% private Ownership Côte d’Ivoire investor Ity Mine Resources (HL + CIL) M&I: 61.4Mt @ 1.6 g/t for 3.106Moz (incl. of Reserves) Inferred: 14.1Mt @ 1.5 g/t for 0.687Moz Agbaou Mine Reserves (HL+CIL) 30.4Mt @
Slide 30: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Full Year Post acquisition period Insights: 2015 (Nov 28 to Dec 31, 2015) OperationalData • The Ity Mine is included for the post- Mining acquisition period of November 28 to Waste (kt) 5,465 368 December 31, 2015, in the company’s 2015 Ore Mined - open pit (kt) 1,021 63 fin
Slide 31: Ity Exploration Upside – Côte d'Ivoire
Ity Exploration Upside – Côte d’Ivoire • Strategic exploration planning underway to Ity Site Map fully identify all exploration potential of this significantly underexplored area • Near-mine exploration has already outlined 1.5Moz of M+I resources from January to September of 2015 • Focused on ident
Slide 32: Ity CIL Project – Côte d'Ivoire
Ity CIL Project – Côte d’Ivoire Quick Facts based upon PFS (on 100% basis)* Côte d’Ivoire 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% Ownership private investor Ity CIL Project Status DFS expected by mid-2016 Agbaou Production start date 2019E Mine Resources (HL + CIL) M&I: 61.4Mt @ 1.6 g/t for 3.106
Slide 33: Houndé Project – Burkina Faso
Houndé Project – Burkina Faso Quick Facts (on 100% basis) Karma Project Ownership 90% EDV, 10% Burkina Faso Status Fully permitted, awaiting investment decision Ouagadougou Production start date 2017E (if launched mid 2016) Burkina Faso Houndé Project Resources M&I: 37.9Mt @ 2.1 g/t for 2.551Moz (in
Slide 34: Karma Project – Burkina Faso
Karma Project – Burkina Faso Karma Mine Quick Facts (1) (on 100% basis) Karma Project Ownership 90% True Gold, 10% Burkina Faso Resources M&I: 75.2Mt @ 1.08 g/t for 2.621Moz Ouagadougou (incl. of Reserves) Inferred: 65.3Mt @ 1.13 g/t for 2.362Moz Houndé Project Reserves 33.2Mt @ 0.89 g/t for 0.949Mo
Slide 35: Overview of Truegold's Assets: Karma Exploration Upside
Overview of Truegold’s Assets: Karma Exploration Upside 7 DRILL DISCOVERIES 7.1m @ 6.6g/t Au 70.5m @ 1.9g/t Au 45 NEW DRILL READY TARGETS 233 SIGNIFICANT GOLD ANOMALIES 6.0m @ 29.5g/t Au • 866km² land package 16.3m @ 0.9g/t Au • ~90 km strike length of regional unconformity 5.6m @ 12.61g/t Au • Seve
Slide 36: Overview of Truegold's Assets: Liguidi – Exploration Portfolio
Overview of Truegold’s Assets: Liguidi – Exploration Portfolio • One of the largest gold-in-soil anomalies in the country 53 km2 GOLD ANOMALY • In situ anomaly sits above large, underlying gold system • Situated in Markoye regional structure that hosts multiple +5 million ounce deposits • Highly enc
Slide 37: Endeavour's strategic positioning in a fast-growing gold region
Endeavour’s strategic positioning in a fast-growing gold region Gold production by region, • Endeavour strategically in Moz (2006-2014 comparison) positioned as a pure West- Moz 2006 2014 -11% African multi-operation gold 30 miner • West-Africa is expected to continue to be a fast-growing gold regio
Slide 38: Reserve and Resource Table
Reserve and Resource Table As at December 31, 2015 P&P Reserves M&I Resources Inferred Resources Resources inclusive of reserves (Mt) Au g/t (koz) (Mt) Au g/t (koz) (Mt) Au g/t (koz) Agbaou Mine 13.2 2.4 1,027 14.4 2.54 1,180 1.2 1.71 65 Tabakoto Mine 6.4 3.5 725 18.5 3.09 1,844 9.0 3.55 1,023 Nzema
Slide 39: 2015 Depletion replacement
2015 Depletion replacement Proven and Probable Reserves • Successful exploration replenished in Moz 100% basis nearly all of M&I resource ounces +29% 5.9 depleted in 2015 -0.1 5.8 4.5 +1.6 -0.5 – Agbaou fully replaced 2015 soft +0.3 material mined during and added an additional year of free-dig Rese
Slide 40: Appendix 2: Company Information
Appendix 2: Company Information CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 41: Endeavour Mining – Management Team
Endeavour Mining – Management Team Neil Woodyer – Founder & CEO Patrick Bouisset – Exec VP Exploration • Former CEO of Lloyds International Trading, a subsidiary of Lloyds • Former Executive VP Exploration & New Ventures of La Mancha Bank plc • +20 years at Total – in charge of exploration activitie
Slide 42: Endeavour Mining – Board of Directors
Endeavour Mining – Board of Directors Michael E. Beckett – Chairman, Non-executive Director Miguel Rodriguez – Non-executive Director • Former chair of Ashanti Goldfields & former Managing Director of • Director of D.Societe Financiere in Geneva Consolidated Gold Fields • Former Economic Minister &
Slide 43: Neil Woodyer CEO
Neil Woodyer CEO nwoodyer@endeavourmining.com +377 97 98 7130 Vincent Benoit EVP Strategy and Business Development vbenoit@endeavourmining.com +33 170 38 36 96 CREATING A PREMIER AFRICAN GOLD PRODUCER 42
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