Slide 1: Management Presentation – Q1 2011 Results
Management Presentation June 13, 2011 Results for the First Quarter-ended March 31, 2011 Endeavour Mining June 13, 2011 :: 1
Slide 2: Introduction
Introduction Neil Woodyer Christian Milau Chief Executive Officer Executive VP & CFO David Laing Stephen Roberts Senior VP, Operations Senior VP, Investor Relations This presentation may contain forward-looking information relating to the future performance of Endeavour Mining. Forward-looking infor
Slide 3: Q1 2011 Highlights
Q1 2011 Highlights Production • 20,056 ounces produced during Q1 • No lost time injuries (“LTI”) or reportable environmental incidents HSE • Recently passed 4 million LTI free hours milestone • Cash Cost of $664 per ounce sold in Q1* Costs • Wage negotiations successful – new contract to end 2013 •
Slide 4: Q1 2011 – Financial Highlights
Q1 2011 – Financial Highlights EARNINGS FROM OPERATIONS Q1 2011 Q1 2010 Gold sold 19,394 ozs 16,496 ozs Gold revenue $26.1 million $17.7 million Operating expenses $13.8 million $11.0 million Earnings from mine operations $8.5 million $3.4 million Realized loss – gold hedge $6.0 million $0.0 million
Slide 5: Q1 2011 – Financial Highlights
Q1 2011 – Financial Highlights FINANCIAL POSITION March 31, 2011 Cash and cash equivalents $169 million Marketable securities $28 million Long-term debt nil Equity attributable to shareholders $342 million Subsequent event – Unlocked value of Non-core asset • Lofdal rare earths property (part of Etr
Slide 6: Q1 2011 – Year on Year Operating Highlights
Q1 2011 – Year on Year Operating Highlights OPERATING HIGHLIGHTS Q1 2011 Q1 2010 Tonnes milled (‘000 tonnes) 212 199 Milled grade (g/t) 2.94 2.82 Gold recovery (%) 93% 93% Gold produced (ounces) 20,056 17,703 Gold sold (ounces) 19,394 16,496 Spot sales (ounces) 10,326 at $1,418 16,496 at $1,103 Gold
Slide 7: Youga – Monthly Performance
Youga – Monthly Performance Q1 2011 Q1 2011 100000 9000 90000 8000 80000 7000 70000 6000 60000 5000 50000 4000 40000 3000 30000 20000 2000 10000 1000 0 0 Sep-10 Apr-11 Jul-10 Jun-10 Feb-11 Oct-10 Nov-10 May-10 Dec-10 May-11 Jan-11 Aug-10 Mar-11 Jul-10 Feb-11 Oct-10 Jun-10 Sep-10 Nov-10 Dec-10 Apr-11
Slide 8: Youga Performance
Youga Performance • Successfully concluded negotiations with Labour Union for 3 year agreement • Successfully raised tailings storage facility prior to start of wet season • Several process optimizations implemented • Implemented an enhanced Planned Maintenance program • Grid power fluctuations addr
Slide 9: Exploration Activity Update – Youga & Ouaré
Exploration Activity Update – Youga & Ouaré • Approximately $1.3 million of the $10 million budget was spent during Q1 with promising results following the sourcing and mobilization of drill rigs • These include: • New resources reported on the Zergoré and A2NE deposits (reported in press release on
Slide 10: Exploration Activity Update – Youga & Ouaré
Exploration Activity Update – Youga & Ouaré Youga Mine and Exploration Targets Endeavour Mining 10
Slide 11: Exploration Activity Update – Youga & Ouaré
Exploration Activity Update – Youga & Ouaré • Preparations made to recommence drilling at the Ouaré deposit on the nearby Bitou Permit • Expectation of increasing the size and upgrading the resource classification • The program includes core drilling for metallurgical testwork samples • Confirm the
Slide 12: Agbaou Activity Update
Agbaou Activity Update • Engineering & technical studies underway to refine and optimize feasibility study ($4M budget) • 20,000m drilling program in progress Photos taken Feb 2011 • Drilling stopped March 30th due to unrest • Anticipated resumption of drilling by the end of June Endeavour Mining 12
Slide 13: 2011 Outlook
2011 Outlook Gold production On target for 84,000 ozs at approximately $600/oz* for 2011 Value generation from exploration and development Expectation of continuing to increase resources and reserves to extend Youga mine life Engineering studies on Zergoré are expected during Q3 Engineer