Slide 1: Endeavour Management Presentation: Results for Fiscal Year 2012
Endeavour Management Presentation Results for the Fiscal Year ended December 31, 2012 28 March 2013
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements This presentation contains “forward-looking statements” including variations in ore reserves, grade or recovery rates; failure of plant, but not limited to, statements with respect to Endeavour’s plans equipment or processes to operate as anticipated; accident
Slide 3: Introduction
Introduction Neil Woodyer CEO Attie Roux Christian Milau COO CFO Amounts expressed in US$, unless otherwise indicated A GOLD PRODUCER DELIVERING GROWTH 3
Slide 4: 2012 and Recent Highlights
2012 and Recent Highlights • Successful year delivering on operating guidance − Nzema, Youga, and Tabakoto, produced 310,778 ozs1 (guidance of 282,000 to 304,000 ozs) − Nzema and Youga produced 200,476 ozs, exceeding guidance of 180,000 – 192,000 ozs, at cash cost of $701/oz (compared to guidance of
Slide 5: 2012 Highlights
2012 Highlights • To improve transparency and understanding of financial performance with our shareholders and government partners: − Providing all-in sustaining margins and per ounce values − Reporting key metrics on a per ounce basis • Audited 2012 financial results only include Tabakoto for 75-da
Slide 6: Youga and Nzema
Youga • 2012 was a strong year generating $86 million of operating cash flow • Continues to meet 2013 production and cost targets • 2013 production guidance: 75,000 to 85,000 ozs • 2013 cash cost per ounce guidance: $740 to $780/oz Nzema • Delayed access to Adamus pits in Q4/2012 led to cash costs o
Slide 7: Tabakoto Cost Reduction and Profit Improvement
Tabakoto Cost Reduction and Profit Improvement • Tabakoto produced 19,985 ozs at a cash cost of $1,250/oz during the 75 day period − In-line with standard industry practice Endeavour has applied more prudent accounting judgments to now include certain expenditures, previously capitalized in Avion’s
Slide 8: 2013 Focus and Outlook
2013 Focus and Outlook • Growing production to 310,000 – 345,000 ozs • Tabakoto mill expansion and ramp up in April • Continue Tabakoto profit improvement plan • Ongoing cost containment at Youga and Nzema • Complete construction at Agbaou, with production expected by Q1/2014 Production Guidance Upd
Slide 9: Endeavour's Production Growth Profile
Endeavour’s Production Growth Profile 2010 2011 2012 2013e 2016e 310,000 to Production 82,402 ozs 177,290 ozs 310,778 ozs +550,000 ozs 345,000 ozs Houndé Houndé (startup in Agbaou 2016) Tabakoto Agbaou Tabakoto Mill (startup in Nzema Expansion 2014) Youga Acquisition of Tabakoto Acquisition of Nzema
Slide 10: 2012 All-in Sustaining Margin Generation
2012 All-in Sustaining Margin Generation US$ Million In Gold Ounces* Net operating margin from Youga, Nzema & Tabakoto** Gold revenue 365.3 218,887 Less: Royalties 19.2 11,517 Less: Cash Costs for ounces sold 166.9 100,005 Mine cash margin 179.2 107,366 Less: Corporate G&A (attributable to operation
Slide 11: 2012 Investments in New Mine Development and Exploration and Free Cash Flow
2012 Investments in New Mine Development and Exploration and Free Cash Flow All-in sustaining Net free 140.0 margin cash flow $130.2M $24.7M 120.0 Corporate G&A Regional Corporate (for new mines) exploration capital costs $5.0M Houndé, $1.0M $13.8M 100.0 Nzema Sulphides, Tabakoto mill Ouaré projects
Slide 12: 2012 Financial Activities and Reconciliation of Cash Position
2012 Financial Activities and Reconciliation of Cash Position US$ Million Cash and cash equivalents ‐ Beginning Balance (Dec 31, 2011) $115.3 Free cash flow after new mine investments (see Table 1) 24.7 Transaction expenses related to Avion acquisition ‐5.8 Repayment of Banque Atlantique Mali loan ‐
Slide 13: 2012 Adjusted Net Earnings Reconciliation
2012 Adjusted Net Earnings Reconciliation Year ended Dec 31, 2012 US$ Million Net loss attributable to shareholders of Endeavour ($15.5) Change in unrealized loss / (gain) ‐ gold price protection program (15.6) Change in fair value of CAD currency share purchase warrants (9.7) One‐off corporate cost
Slide 14: 2012 All-in Sustaining Cash Cost per Ounce and 2013 Guidance
2012 All-in Sustaining Cash Cost per Ounce and 2013 Guidance 2012 Actual 2013 Guidance Gold Production / Guidance Range (ozs) 220,462 310,000 to 345,000 Gold Sold 218,887 $ Million $/oz $/oz $/oz 1 Royalties 19.2 88 85 95 2 Cash costs for ounces produced 169.1 767 840 880 3 Corporate G&A (attributab
Slide 15: Forecast 2013 All-in Sustaining Margin
Forecast 2013 All-in Sustaining Margin US$ Million $/oz In Gold Ounces* Net operating margin from Youga, Nzema & Tabakoto** Gold revenue 524 1,600 327,500 Less: Royalties 29 90 18,422 Less: Cash costs 282 860 176,031 Mine cash margin 213 650 133,047 Less: Corporate G&A (attributable to operations) 1
Slide 16: Forecast 2013 Investments in New Mine Development and Exploration and Free Cash Flow
Forecast 2013 Investments in New Mine Development and Exploration and Free Cash Flow Regional Exploration $5M Nzema Houndé Development $12M Feasibility Study Adamus Access • $200 million of investments in $17M $12M Tabakoto new mine development and Development exploration expected in 2013 $7M Tabako
Slide 17: Operating Summary – Nzema Gold Mine, Ghana
Operating Summary – Nzema Gold Mine, Ghana Q4/2012 FY 2012 2012 Guidance 3 months 12 months Tonnes of ore milled (000s) 528 2,144 Average gold grade milled (g/t) 1.83 1.79 Gold ounces produced 26,663 109,447 102,000 -112,000 Cash cost per ounce produced (US$/oz) $911 $753 Cash cost per ounce produce
Slide 18: Operating Summary – Youga Gold Mine, Burkina Faso
Operating Summary – Youga Gold Mine, Burkina Faso Q4/2012 FY 2012 2012 Guidance 3 months 12 months Tonnes of ore milled (000s) 241 1,013 Average gold grade milled (g/t) 3.03 2.93 Gold ounces produced 21,651 91,030 85,000 - 90,000 Total cash cost per oz (excl royalties) produced $877 $678 $655 - $675
Slide 19: Operating Summary – Tabakoto Gold Mine, Mali
Operating Summary – Tabakoto Gold Mine, Mali Q4/2012 75 day period1 Tonnes of ore milled (000s) 150 Average gold grade milled (g/t) 4.36 Gold ounces produced 19,985 Total cash cost per oz (excl royalties) produced $1,250 • 2013 mine budgets built from the ground up • Increased production in 2013 fro
Slide 20: Tabakoto Restructuring Initiatives
Tabakoto Restructuring Initiatives The Tabakoto mine is undergoing a significant re-structuring and re-orientation, including: • Prioritization of underground resource development along with rigorous mine planning, as well as renegotiation with the underground contract miner regarding a longer term,
Slide 21: Tabakoto Restructuring Initiatives (cont'd)
Tabakoto Restructuring Initiatives (cont’d) • Reduced reliance on ad hoc use of contractors • Commenced initiatives to reduce power consumption and power generation costs • Optimization and reduction of light duty vehicles, which will reduce related costs such as fuel, repairs and maintenance • Redu
Slide 22: Tabakoto Production Expansion
Tabakoto Production Expansion Tabakoto mill expansion as of early March 2013 • Expansion of mill capacity from 2,000 tpd to 4,000 tpd nearly complete • Currently, hot commissioning of the mill is ongoing and ramp-up of throughput will occur during April A GOLD PRODUCER DELIVERING GROWTH 22
Slide 23: Agbaou Gold Project, Côte d'Ivoire Construction Progress
Agbaou Gold Project, Côte d’Ivoire Construction Progress • 65% of the construction costs committed; the project is +50% physically complete overall • All major contracts, including EPCM and mining contracts, finalized and within cost estimates of feasibility study • Major component deliveries for mi
Slide 24: Houndé Feasibility Study (90% Effective Ownership)
Houndé Feasibility Study (90% Effective Ownership) • All studies for the feasibility are on-schedule for completion in Q4/2013 • In-fill drilling (41,365 m in 369 drill holes) completed a month ahead of schedule − Highlights include: • 73.9 m of 5.26 g/t Au • 38.0 m of 5.93 g/t Au • Metallurgical te
Slide 25: Conclusion
Conclusion • 2013 production guidance of 310,000 to 345,000 ozs. Focused on • Revised 2013 cash cost guidance: $840/oz to $880/oz Operations • 2013 all-in sustaining cost guidance: $1,055 to $1,155/oz • Cost reduction and profit improvement plans at Tabakoto targeting improved Profit Improvement per
Slide 26: Questions?
Questions? Neil Woodyer CEO Attie Roux Christian Milau COO CFO For additional information, please contact: Marla Gale, VP Investor Relations mgale@endeavourmining.com +1 604 609 6117 A GOLD PRODUCER DELIVERING GROWTH 26
Slide 27: Appendix: Mineral Reserves
Appendix: Mineral Reserves Reserves Proven Probable Proven & Probable Gold Mine / Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Price kt g/t k Ozs kt g/t k Ozs kt g/t k Ozs US$/oz Nzema1 - Total 10,273 1.8 604 2,756 2.2 193 13,029 1.9 797 US$ 1350 Attributable - 90% 544 174 717
Slide 28: Appendix: Mineral Resources
Appendix: Mineral Resources Resources (including reserves) Lower Measured Indicated Measured & Indicated Inferred cutoff Mine / Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces kt Au g/t koz kt Au g/t koz kt Au g/t koz kt Au g/t koz Au g/t Nzema1 - Total 30,277
Slide 29: Appendix Notes to Mineral Resource and Reserve Tables
Appendix Notes to Mineral Resource and Reserve Tables 1 Nzema Mine “Technical Report and Mineral Resource and Reserve Update for the Nzema Gold Mine, Ghana, West Africa” effective December 31, 2012. Prepared by N. Johnson MAIG (MPR Geological Consultants), Q. de Klerk FAusIMM (CP) (Cube Consulting),