Slide 1: Q1 Operational & Financial Results
Q1 Operational Q2 & Financial Results Q3 › May 9, 2017 Q4
Slide 2: Disclaimer & Forward Looking Statements
Q1-2017 RESULTS DISCLAIMER & FORWARD LOOKING STATEMENTS Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. This presentation contains “forward-looking statements” including but not limited to, statements with respect t
Slide 3: Speakers and Table of Content
SPEAKERS TABLE OF CONTENT SÉBASTIEN DE MONTESSUS OPERATIONAL AND Chief Executive Officer, President & Director 1 FINANCIAL SUMMARY ADRIAAN "ATTIE" ROUX DETAILS BY MINE AND Chief Operating Officer 2 PROJECT VINCENT BENOIT EVP – CFO 3 CONCLUSION and Corporate Development PATRICK BOUISSET 4 APPENDIX EV
Slide 4: Safety Is Our First Priority
Q1-2017 RESULTS SAFETY IS OUR FIRST PRIORITY Continued to improve our safety record in Q1-2017 Lost Time Injury Frequency Rate 0.79 4.0m Man Hours in Q1-17 with only 1 LTI 0.40 0.25 0.00 0.00 3.7m Man Hours on Peer Group FY2016 Q1-2017 Houndé Agbaou Average (since start) Houndé with no LTI Operating
Slide 5: Q1 Performance in Line with Expectations
Q1-2017 RESULTS Q1 PERFORMANCE IN LINE WITH EXPECTATIONS On-track to meet all guidance metrics 159koz Tracking well PRODUCTION within GUIDANCE guidance 0koz 600-640koz $905/oz Expected to AISC come down in GUIDANCE the coming $860/oz $905/oz quarters FCF BEFORE $32m Tracking well GROWTH PROJECTS wit
Slide 6: All Mines on Track to Meet Guidance
Q1-2017 RESULTS ALL MINES ON TRACK TO MEET GUIDANCE Back to normalized production after record Q4-16 performance Production and AISC from continuing operations 175koz Records at Agbaou 159koz 146koz and Tabakoto 138koz 123koz $889/oz $901/oz $898/oz $905/oz $855/oz Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Prod
Slide 7: Improved Margins Despite Increased Exploration
Q1-2017 RESULTS IMPROVED MARGINS DESPITE INCREASED EXPLORATION Driven by improvements at Tabakoto, Nzema, and the addition to portfolio management with Karma PRODUCTION VARIATION 159koz Q1-16 vs Q1-17 Bridge +32koz 132koz (8koz) +6koz +4koz (6koz) (1koz) AISC: +26% AISC: -18% AISC: -9% AISC: +24% Q1
Slide 8: All-In Sustaining Margin Now More Diversified
Q1-2017 RESULTS ALL-IN SUSTAINING MARGIN NOW MORE DIVERSIFIED Portfolio management has diversified the sustaining margin All-In Sustaining Margin From Mines- Breakdown by Operation Excludes Exploration and Corporate Costs Youga Karma 0% Ity 17% 26% Agbaou 39% $43m Ity 10% $57m Q1-2017 Q1-2016 10% 63
Slide 9: Increased Free Cash Flow from Operations
Q1-2017 RESULTS INCREASED FREE CASH FLOW FROM OPERATIONS QUARTER ENDED, INSIGHTS (in US$ million) MAR. 31, 2017 MAR. 31, 2016 GOLD SOLD, koz 162 121 1. Gold sales up 34% mainly due to the 1 Gold Price, $/oz 2 1,190 1,192 acquisition of Karma, the deconsolidation REVENUE 193 144 of Youga and improvem
Slide 10: Net Earnings Breakdown
Q1-2017 RESULTS NET EARNINGS BREAKDOWN QUARTER ENDED All-In Sustaining Margin to Adjusted Net Earnings Bridge March 31, March 31, For the 3-month period ended March 31, 2017 (in US$ million) A = Adjustments made 2017 2016 $2m Gold Revenue 193.1 144.0 Operating expenses (120.1) (84.0) $17m Depreciati
Slide 11: Significant Balance Sheet Improvement
Q1-2017 RESULTS SIGNIFICANT BALANCE SHEET IMPROVEMENT Healthy Net Debt of $14m despite Houndé spend being 65% complete Net Debt Evolution Liquidity and Financing Sources at March 31, 2017 Net debt Net Debt / trailing 12-month Operating EBITDA ratio $87m 0.89x Cash Position $136m 0.22x 0.27x 0.11x $3
Slide 12: Details by Mine and Project
OPERATIONAL AND 1 FINANCIAL SUMMARY DETAILS BY MINE 2 AND PROJECT 3 CONCLUSION 4 APPENDIX
Slide 13: Agbaou Mine, Cote d'Ivoire
Q1-2017 RESULTS AGBAOU MINE, COTE D’IVOIRE Agbaou production decreased to be in line with guidance Q1-17 vs. Q4-16 INSIGHTS: Production and AISC › Coming off a record Q4, lower production in Production, koz AISC, US$/oz 660/oz Q1 (as expected) due to temporary mining 57koz in lower grade area 49koz
Slide 14: Tabakoto Mine, Mali
Q1-2017 RESULTS TABAKOTO MINE, MALI Continued good performance in Q1-2017 Q1-17 vs. Q4-16 INSIGHTS: Production and AISC › Production and AISC trending in line Production, koz AISC, US$/oz with expectations with AISC 48koz maintained within $950-990/oz 43koz 39koz 39koz guidance 37koz › Production de
Slide 15: Ity Heap Leach Mine, Côte d'Ivoire
Q1-2017 RESULTS ITY HEAP LEACH MINE, CÔTE D’IVOIRE Production remained fairly stable, uplift expected in upcoming quarters Q1-17 vs. Q4-16 INSIGHTS: Production and AISC › Production remained relatively flat Production, koz AISC, US$/oz over the previous quarter despite a drop in grade and down-time
Slide 16: Nzema Mine, Ghana
Q1-2017 RESULTS NZEMA MINE, GHANA Stronger production due to cut-back, despite lower purchased ore Q1-17 vs. Q4-16 INSIGHTS: Production and AISC › Production benefited from the completion of Production, koz AISC, US$/oz the Adamus cut-back in Q1-2017 which started 26koz 24koz 24koz to lift grades mi
Slide 17: Karma, Burkina Faso
Q1-2017 RESULTS KARMA, BURKINA FASO Production continued to ramp-up with increased processing efficiency Q1-17 vs. Q4-16 INSIGHTS: Production and AISC › The overall increase in mining activity was Production, koz AISC, US$/oz associated to the optimized performance of the 32koz mobile power screen a
Slide 18: Houndé Project, Burkina Faso
Q1-2017 RESULTS HOUNDÉ PROJECT, BURKINA FASO Construction Progressing On-time And On-budget SIGNIFICANT ACHIEVEMENTS TO-DATE: Only ~35% of the capital remains to be spent › Construction is progressing as planned, and is currently more than 75% complete and remains on-budget › 100% of the procurement
Slide 19: Houndé Project, Burkina Faso
Q1-2017 RESULTS HOUNDÉ PROJECT, BURKINA FASO Construction Progressing On-time And On-budget Mill Heads, Shells and Trunnions at the Port Primary Crusher Top of CIL Steel Tanks Village Resettlement 19
Slide 20: Conclusion
OPERATIONAL AND 1 FINANCIAL SUMMARY DETAILS BY MINE 2 AND PROJECT 3 CONCLUSION 4 APPENDIX
Slide 21: Recap of Q1-2017
Q1-2017 RESULTS RECAP OF Q1-2017 › Terminated discussions with Acacia as Endeavour was unable to reach an agreement that created adequate shareholder value › Endeavour remains focused on: ‒ Developing our projects (Hounde and Ity) ‒ Unlocking exploration value ‒ While keeping an opportunistic view o
Slide 22: Upcoming Catalysts
Q1-2017 RESULTS UPCOMING CATALYSTS 2017 OUTLOOK: › Gold production expected to increase to 600-640koz (excluding Houndé) Immediate › AISC expected to decrease further to $860-905/oz › Free Cash Flow (before growth projects, WC, tax and financing cost) expected to increase to $150m, Cashflow based on
Slide 23: Appendix
OPERATIONAL AND 1 FINANCIAL SUMMARY DETAILS BY MINE 2 AND PROJECT 3 CONCLUSION 4 APPENDIX
Slide 24: Agbaou Mine, Cote d'Ivoire
Q1-2017 RESULTS AGBAOU MINE, COTE D’IVOIRE Exploration program is still on-going Agbaou Site Map INSIGHTS › Exploration progressed well during the first quarter, with a total of approximately 10,000 meters drilled out of the 45,000 meters planned for the year › The drill program is based on previous
Slide 25: Tabakoto Mine, Mali
Q1-2017 RESULTS TABAKOTO MINE, MALI Exploration is a top focus: Kreko and Fougala maiden resource planned in Q3 Tabakoto Site Map INSIGHTS › As set out in Endeavour’s 5-year exploration strategy, published in November 2016, Tabakoto is a top exploration priority in 2017 given its relatively short pr
Slide 26: Ity Mine, Côte d'Ivoire
Q1-2017 RESULTS ITY MINE, CÔTE D’IVOIRE Exploration continues to confirm prospectivity INSIGHTS Ity Mine Drilling Targets › The largest portion of Endeavour’s 2017 exploration budget has been allocated to the Ity area in light of its strong prospectivity and potential to further extend the lives of
Slide 27: Karma, Burkina Faso
Q1-2017 RESULTS KARMA, BURKINA FASO Exploration is progressing well, with mine life already at +10 years INSIGHTS Karma Site Map › In 2017 a $4 million exploration program totaling approximately 30,000 meters has been planned of which approximately 15,000 meters was completed in the first quarter ›
Slide 28: Houndé Project, Burkina Faso
Q1-2017 RESULTS HOUNDÉ PROJECT, BURKINA FASO Exploration re-launched in 2017 INSIGHTS Exploration Targets in Proximity to the Planned Mill › Following a two year period of no exploration drilling, activities resumed in 2017 with a $5 million program planned totaling approximately 45,000 meters, of w
Slide 29: Production and Cost Details by Mine
Q1-2017 RESULTS PRODUCTION AND COST DETAILS BY MINE AGBAOU NZEMA TABAKOTO ITY KARMA (on a 100% basis) Q1- Q1- Unit Q1-2017 Q4-2016 Q1-2016 Q1-2017 Q4-2016 Q1-2016 Q1-2017 Q4-2016 Q1-2016 Q1-2017 Q4-2016 Q4-2016 2016 2017 Physicals Total tonnes mined – OP1 000t 6,356 6,518 6,071 2,695 2,885 1,710 1,8