Slide 1: Operational & Financial Results
Q1 Q2 OPERATIONAL & FINANCIAL RESULTS Q3 › March 5th, 2019 Q4
Slide 2: Disclaimer & Forward Looking Statements
2018 FULL YEAR 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 re
Slide 3: Speakers and Table of Contents
SPEAKERS TABLE OF CONTENTS SÉBASTIEN DE MONTESSUS 1 Q4-2018 & FY-2018 IN REVIEW President & Chief Executive Officer 2 FINANCIAL SUMMARY DETAILS BY MINE AND VINCENT BENOIT EVP – CFO and Corporate Development 3 PROJECT 4 CONCLUSION 5 PATRICK BOUISSET EVP – Exploration and Growth APPENDIX Note : All am
Slide 4: 2018 Activities Recap
2018 FULL YEAR RESULTS 2018 ACTIVITIES RECAP Strong Continued Achievements Across Our 4 Pillars 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCKING EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Strong safety record Ity CIL construction close to Over 363,000m drilled Strong
Slide 5: Strong Safety Record
2018 FULL YEAR RESULTS STRONG SAFETY RECORD 1 Our safety record remains better than the industry average Lost Time Injury Frequency Rate 0.80 0.16 LTM Lost Time Injury Frequency Rate 0.40 0.29 0.16 0.00 0.00 0.00 +8.0m Peer Group FY2016 FY2017 FY2018 Houndé Agbaou Ity Man Hours with no Average LTI f
Slide 6: Production Beat High-End of Guidance
2018 FULL YEAR RESULTS PRODUCTION BEAT HIGH-END OF GUIDANCE 1 6th year of successfully meeting production guidance Production, on a 100% basis in koz For discontinued operations +64koz For continuing operations 727koz (670-720koz guided) 663koz (600-640koz guided) 517koz 592koz (575-610koz
Slide 7: AISC Beat Low-End of Guidance
2018 FULL YEAR RESULTS AISC BEAT LOW-END OF GUIDANCE 1 AISC continues to trend lower in 2018 and 2019 AISC including discontinued operations, in US$/oz (Guidance for the year) -$26/oz 2018 vs 2017 $1,099/oz ($1,055-1,155/oz) $1,010/oz ($985-1,070/oz) $922/oz ($930-980/oz) $886/oz ($870-9
Slide 8: Strong FY-2018 Performance
2018 FULL YEAR RESULTS STRONG FY-2018 PERFORMANCE 1 Beat full-year production and AISC guidance Mine 2018 Actuals 2018 Guidance PRODUCTION FROM CONTINUING OPERATIONS ✓ PRODUCTION (in Koz) Houndé 277 250-260 Ity 85 60-65 ✓ Karma 109 105-115 ✓ 612 BEAT HIGH koz END Agbaou 141 140-150 ✓ 555-590koz FOR
Slide 9: All-In Margin Significantly Increased
2018 FULL YEAR RESULTS ALL-IN MARGIN SIGNIFICANTLY INCREASED 1 Strong increase is mainly due to Houndé All-in Margin In US$m, unless otherwise indicated +$82m Realized Gold Price $184m Includes discontinued operations From continuing operations $162m $159m $149m FY-18 vs. FY-17 For continuing operat
Slide 10: Ity CIL Project Construction
2018 FULL YEAR RESULTS ITY CIL PROJECT CONSTRUCTION 2 Tracking 2 months ahead of schedule, first gold pour in early Q2-2019 ACHIEVEMENTS TO DATE Ity aerial view › Ity is expected to produce 160-200koz in 2019 at an AISC of $525-590/oz › The major milestones achieved to date include: ‒ Over 8 million
Slide 11: Ity CIL Project Construction
2018 FULL YEAR RESULTS ITY CIL PROJECT CONSTRUCTION 2 Tracking 2 months ahead of schedule, first gold pour in early Q2-2019 Mills Power Station Wet Plant Primary Crusher & ROM 11
Slide 12: Unlock Exploration Value
2018 FULL YEAR RESULTS UNLOCK EXPLORATION VALUE 3 Over 1.2 million meters of drilling between 2017 and 2019 2017 PRIORITIES Exploration Expenditure for 2018 1. Ity to extend HL and improve CIL case 2. Tabakoto due to its short mine life Fetekro 3. Agbaou to test potential Houndé $4.3m 2018 PRIORITIE
Slide 13: Unlock Exploration Value
2018 FULL YEAR RESULTS UNLOCK EXPLORATION VALUE 3 Starting to deliver against our 5-year strategy Indicated discovery target by area as published in Nov. 2016 10-15Moz 2/3rd are on our 2 flagship assets 4.0-6.0Moz 4.0-6.0Moz 5-year Indicated Resource discovery target 2.5-3.5Moz 1.5-2.5Moz 0.5-1.5Moz
Slide 14: Unlock Exploration Value
2018 FULL YEAR RESULTS UNLOCK EXPLORATION VALUE 3 On-track to meet 5-year exploration targets Total Indicated discoveries and targets 4.2Moz Indicated resources discovered Indicated resources targeted % Cumulative Indicated resources against 5-year discovery target 100% 80% 1.5-2.5Moz 10-15Moz disco
Slide 15: Unlock Exploration Value
2018 FULL YEAR RESULTS UNLOCK EXPLORATION VALUE 3 High quality discoveries made Discovery grades for Indicated resources by deposit >2 g/t From mid-2016 to end of 2018 2.70g/t 2.60g/t 2.25g/t 2.20g/t 2.14g/t 2.14g/t grade of 85% of discovered ounces 1.50g/t 1.27g/t 55% oxide 45% fresh Kari Pump Le P
Slide 16: Unlock Exploration Value
2018 FULL YEAR RESULTS UNLOCK EXPLORATION VALUE 3 Low discovery cost Discovery cost for Indicated resources by deposit From mid-2016 to end of 2018 $76/oz $13/oz Average Endeavour discovery cost to date $29/oz $16/oz $15/oz $14/oz $13/oz $12/oz $10/oz $9/oz 6x lower $4/oz discovery cost Average Taba
Slide 17: Reserves and Resources
2018 FULL YEAR RESULTS RESERVES AND RESOURCES 3 Resource increase expected to result in an increase in reserves in 2019 INSIGHTS M&I Resource Evolution (Inclusive of reserves) › M&I resources up 0.9Moz over the 14.9Moz previous year as mine depletion 13.6Moz 13.9Moz 12.6Moz +0.9Moz was more than off
Slide 18: Portfolio & Balance Sheet Management
2018 FULL YEAR RESULTS PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Focused on increasing the overall quality of our portfolio Portfolio viewed by AISC and mine life INSIGHTS › Ity HL acquired through strategic AISC, $/oz partnership with La Mancha in late 2015 and will transition to CIL by Q2-2019 $1,200
Slide 19: Q4-2018 & FY-2018 In Review
1 Q4-2018 & FY-2018 IN REVIEW 2 FINANCIAL SUMMARY 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 20: Production Increased in 2018
FINANCIAL SUMMARY PRODUCTION INCREASED IN 2018 2018 benefitted from a full year of production at Houndé Production variation Change Full Year 2018 vs 2017 Bridge in AISC 663koz 612koz (116koz) +208koz (144koz) 403koz 11koz (36koz) +26koz +$221/oz (21/oz) +$172/oz ($187/oz) FY-2017 Nzema Tabakoto FY-
Slide 21: All-In Margin Breakdown
FINANCIAL SUMMARY ALL-IN MARGIN BREAKDOWN Increase due to increased production and a higher gold price YEAR ENDED, INSIGHTS 1. Gold sales increased mainly due to the DEC. 31, DEC. 31, commissioning of Houndé in Q4-2017, which (in US$ million) 2018 2017 had its first full-year of production in 2018 2
Slide 22: Growth Funding Sources
FINANCIAL SUMMARY GROWTH FUNDING SOURCES Cash flow from operations and RCF used to fund growth YEAR ENDED, INSIGHTS DEC. 31, DEC. 31, 1. Working capital variation was positive in Q4-2018, (in US$ million) 2018 2017 amounting to $79m, reducing the total outflow to $10m for the year. The main componen
Slide 23: Strong Increase in Cash Flow Per Share
FINANCIAL SUMMARY STRONG INCREASE IN CASH FLOW PER SHARE Significant improvement in portfolio asset quality Operating Cash Flow from continuing operations Before Non-Cash Working Capital, in $/share $2.43/share +63% FY-18 vs. FY-17 $1.49/share +$0.94 FY-18 vs. FY-17 FY-2017 FY-2018 23
Slide 24: Cash Variation Analysis
FINANCIAL SUMMARY CASH VARIATION ANALYSIS Significant investments being done to improve our portfolio quality Net Cash Variation Analysis OPERATING ACTIVITIES › Up $28m over 2017, mainly due to an increase in revenues (related to more ounces sold at a higher gold price) which were offset by a $10m o
Slide 25: Net Debt Analysis
FINANCIAL SUMMARY NET DEBT ANALYSIS Expected to quickly deleverage once Ity CIL is in production Net debt analysis INSIGHTS Gearing 1 Net Debt Net Debt / Adj. EBITDA (LTM) › As anticipated, net debt increased from $232 million to $536 million over the past year mainly due to the Ity construction. ‒
Slide 26: Significant Funding Sources to Fund Growth
FINANCIAL SUMMARY SIGNIFICANT FUNDING SOURCES TO FUND GROWTH Balance sheet remains strong despite growth project capex spend Liquidity and funding sources Up to $25m Significant funding headroom, excluding mine >$10m $244m cash flow and remaining proceeds from sales Undrawn RCF $124m Cash $120m $50-
Slide 27: Net Earnings Breakdown
FINANCIAL SUMMARY NET EARNINGS BREAKDOWN Adjusted EPS of $0.49 for FY-2018 YEAR ENDED DEC. 31, DEC. 31, INSIGHTS (in US$ million) A = Adjustments made of Adjusted Net Earnings 2018 2017 1. Gain driven by a $2m unrealized gain on the GOLD REVENUE 752 471 gold revenue protection program and a $17m Ope
Slide 28: Details by Mine and Project
1 Q4-2018 & FY-2018 IN REVIEW 2 FINANCIAL SUMMARY 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 29: Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Record production in Q4 Q4-18 vs Q3-18 INSIGHTS Production and AISC › A record quarter was achieved as Production, koz AISC, US$/oz production increased, mainly due to significantly higher grades following the 76koz 74koz end of the rainy season 69
Slide 30: Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Strong contribution to group performance FULL YEAR 2018 INSIGHTS Production and AISC › Production significantly exceeded full-year AISC ($/oz) Production (koz) guidance due to both the mining activities and the process plant performing above their
Slide 31: Exploration at the Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT EXPLORATION AT THE HOUNDÉ MINE, BURKINA FASO Further exploration success expected in Kari Area INSIGHTS Houndé Site Map › Houndé has been the strongest exploration focus for Endeavour in 2018 with 165,700m drilled since the start of the year, mainly focused on the Kari anom
Slide 32: Agbaou Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Strong Q4 on production and AISC Q4-18 vs Q3-18 INSIGHTS Production and AISC › Production increased as expected mainly Production, koz AISC, US$/oz due to a significant increase in milled grade following the waste extraction efforts over the cours
Slide 33: Agbaou Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Low-grade stockpile feed supplemented the mine feed FULL YEAR 2018 INSIGHTS Production and AISC › Production achieved the lower end of the 177koz guided 140-150koz range › AISC increased, but remained well below the 141koz guided range as a portio
Slide 34: Agbaou Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Mineralization was confirmed at the extensions of several deposits Agbaou Site Map INSIGHTS › 2018 exploration program amounted to $4m, totaling approximately 27,800m of drilling, focused mainly on open pit targets, located along extensions of kno
Slide 35: Ity Heap Leach Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT ITY HEAP LEACH MINE, CÔTE D’IVOIRE Mining and stacking activities ceased mid-December Q4-18 vs Q3-18 INSIGHTS Production and AISC › Ity’s heap leach operation performed Production, koz AISC, US$/oz above expectations, particularly in Q4- 2018, as mining was opportunisticall
Slide 36: Ity Heap Leach Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT ITY HEAP LEACH MINE, CÔTE D’IVOIRE Mining and stacking activities ceased mid-December FULL YEAR 2018 INSIGHTS Production and AISC › Production significantly exceeded its full-year 85koz guidance as opportunistic mining was carried- out in the second half of the year › AISC
Slide 37: Ity Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT ITY MINE, CÔTE D’IVOIRE Main focus on the La Plaque discovery Ity Site Map INSIGHTS › 2018 exploration program amounted to $9 million, totaling 49,600m of drilling, focused mainly on the Le Plaque area and Daapleu deposit, resulting in: ‒ The identification of mineralizatio
Slide 38: Karma Mine, Burkina Faso
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Strong performance in Q4 Q4-18 vs Q3-18 INSIGHTS Production and AISC › Production increased due to a significant Production, koz AISC, US$/oz increase in ore stacked following the end of 33koz the rainy season ‒ Tonnes of ore mined increased as 28ko
Slide 39: Karma Mine, Burkina Faso
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Production increased due to plant optimization carried out in 2017 FULL YEAR 2018 INSIGHTS Production and AISC › Production increased despite a lower 109koz 105-115koz processed grade, as the plant optimisation 98koz work done in 2017 increased stac
Slide 40: Karma Mine, Burkina Faso
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Maiden Indicated resource at the Yabonsgo INSIGHTS Karma Site Map › 2018 exploration program amounted to $3 million, totalling approximately 23,600m of drilling, focused mainly on Yabonsgo and North Kao, resulting in: ‒ The identification of a maide
Slide 41: Kalana Project, Mali
DETAILS BY MINE & PROJECT KALANA PROJECT, MALI Significant increase in resource confidence based on tighter geological controls INSIGHTS Kalana Main deposit M&I resource evolution › Exploration program in 2018 amounted to $7 million comprised of approximately 48,000m of drilling › At the Kalana Main
Slide 42: Fétékro Greenfield Exploration in Côte d'Ivoire
2018 FULL YEAR RESULTS FÉTÉKRO GREENFIELD EXPLORATION IN CÔTE D’IVOIRE Objective of discovering Endeavour’s next standalone project INSIGHTS Fétékro’s Lafigué exploration prospect gold in soil map › Published maiden resource estimate on the Lafigué target and identified of 14 additional nearby targe
Slide 43: Conclusion
1 Q4-2018 & FY-2018 IN REVIEW 2 FINANCIAL SUMMARY 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 44: Upcoming Catalysts
CONCLUSION UPCOMING CATALYSTS BEAT TOP END OF FY-2018 GUIDANCE WITH FURTHER GROWTH IN 2019 › FY-2019 production expected to increase to 615-695koz Immediate › FY-2019 AISC expected to remain low at $760-810/oz benefitting from Ity CIL start-up Cashflow from Production › ITY CIL PROJECT: Construction
Slide 45: Our Strategic Objectives
CONCLUSION OUR STRATEGIC OBJECTIVES Turnaround Endeavour to build a sustainable business model TURNAROUND STRATEGIC OBJECTIVES OUR VISION SITUATION IN 2015 STRATEGIC OBJECTIVES CREATE A SUSTAINABLE BUSINESS Non-sustaining $922/oz <$800/oz capex All-in Sustaining Cost REQUIRED CASH Exploration FLOW G
Slide 46: Production and AISC Profile
CONCLUSION PRODUCTION AND AISC PROFILE On track to achieving strategic objectives STRATEGIC $1,317/oz OBJECTIVES >800koz >800koz <$800/oz $1,010/oz 727koz $869/oz 663koz All-in Sustaining Cost 615-695koz $922/oz 587koz $866/oz $844/oz 517koz 462koz $760-810/oz 10+ years 317koz Production visibility
Slide 47: Our Strategic Objectives
CONCLUSION OUR STRATEGIC OBJECTIVES Focus on free cash flow and return on capital employed (ROCE) 2016 to mid-2019 Mid-2019 and beyond FOCUS ON INCREASING THE FOCUS ON QUALITY OF OUR PORTFOLIO RETURN ON CAPITAL EMPLOYED (ROCE) ~ $ 1invested billion Capital allocation trade-offs 2 flagship mines Expl
Slide 48: Appendix
1 Q4-2018 & FY-2018 IN REVIEW 2 FINANCIAL SUMMARY 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 49: 2019 Guidance
2018 FULL YEAR RESULTS 2019 GUIDANCE INSIGHTS Production Guidance › Group production from continuing operations is expected 2019 FULL-YEAR 2018 ACTUALS to increase to 615-695koz in 2019 while AISC is expected GUIDANCE (All amounts in koz, on a 100% basis) to remain low at $760-810/oz Agbaou 141 120
Slide 50: 2019 Guidance (continued)
2018 FULL YEAR RESULTS 2019 GUIDANCE (continued) SUSTAINING COSTS INSIGHTS Capital Expenditure Guidance, $m › Houndé: $35m mainly due to the increased strip ratio, a TSF raise SUSTAINING NON- GROWTH and components to be purchased for fleet maintenance SUSTAINING CAPITAL PROJECTS › Agbaou: $24m due t
Slide 51: Production and Cost Details by Mine (Quarterly)
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU TABAKOTO ITY KARMA HOUNDÉ (on a 100% basis) Unit Q4-2018 Q3-2018 Q4-2017 Q4-2018 Q3-2018 Q4-2017 Q4-2018 Q3-2018 Q4-2017 Q4-2018 Q3-2018 Q4-2017 Q4-2018 Q3-2018 Q4-2017 Physicals Total tonnes mined – OP1 000t 7,040 6,942 7,216
Slide 52: Production and Cost Details by Mine (Yearly)
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a yearly basis AGBAOU TABAKOTO ITY KARMA HOUNDÉ (on a 100% basis) Unit Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Physicals Total tonnes mined – OP1 000t 2
Slide 53: Tabakoto Mine, Mali
APPENDIX TABAKOTO MINE, MALI Sale closed in Q4-2018 Q4-18 vs Q3-18 INSIGHTS Production and AISC › Production increased mainly due to higher Production, koz AISC, US$/oz average head grades, despite a decrease in milled tonnage 32koz 28koz 30koz ‒ Open pit production significantly 27koz 26koz decreas
Slide 54: Tabakoto Mine, Mali
APPENDIX TABAKOTO MINE, MALI Sale closed in Q4-2018 FULL YEAR 2018 INSIGHTS Production and AISC › Production decreased and AISC increased 109koz mainly due to a decrease in processed 98koz grades following the completion of the high- grade Kofi C pit in 2017 and Kofi B pit in H1- $1,148/oz 2018 $1,3
Slide 55: Reserves and Resources
APPENDIX RESERVES AND RESOURCES As of December 31, 2018 Fetekro Project Group Consolidated Total Resources shown inclusive of Reserves. On a 100% basis Tonnage (Mt) Grade (Au g/t) Content (Au koz) On a 100% basis Proven Reserves - - - Resources shown Tonnage Grade Content Probable Reserves - - - inc