Slide 1: Endeavour Mining Corporate Presentation July 2016
TSX:EDV Endeavour Mining July 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: Endeavour Mining Overview
Endeavour Mining Overview 4 Producing Mines at Low AISC SENEGAL – 2015 production: 517 koz MALI Tabakoto Mine Karma – 2016E production: 535-560 koz GAMBIA Project – 2015 AISC: US$922/oz BURKINA FASO GUINEA- Bamako – 2016E AISC: US$870 - 920/oz BISSAU Ouagadougou GUINEA Houndé – Total Reserves of 6.7
Slide 4: Company Profile
Company Profile Market Information as of July 15th 2016 Current shareholder distribution and geographic mix Ticker TSX:EDV Shares in Issue 92.6 million Options 2.8 million Retail Institutional 7% Fully Diluted 95.4 million 63% Share price C$23.34 Market cap US$1,665m Net Debt (PF March 31, 2016) US$
Slide 5: Endeavour is backed by La Mancha
Endeavour is backed by La Mancha Sawiris family’s mining investment vehicle 31% 30% Long-term growth supportive investor holding holding The Sawiris family is present across various sectors and businesses, ranging from construction and fertilizers to real estate and telecommunications La Mancha ve
Slide 6: Endeavour Mining – Management Team
Endeavour Mining – Management Team Sebastien de Montessus – CEO & President & Director • Former CEO of the La Mancha Group (2012-2015) • Former member of the Executive Board & Group Deputy CEO of AREVA Group & CEO of AREVA Mining • Prior to joining AREVA in 2002, Mr. de Montessus was an investment b
Slide 7: 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 8: Dynamic Portfolio Management
Dynamic Portfolio Management AISC, US$/oz Extending Mine Life and Lowering AISC 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) $950/oz 2 Cut-back Optimization PROJECT + exploration DEV
Slide 9: Operational excellence – Delivering on our objectives
1 Operational excellence – Delivering on our objectives 1) Increase Production 2) Decrease All-in Sustaining Costs Production, on a 100% basis in koz AISC, in US$/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 201
Slide 10: Operational excellence – Free cash flow expected to increase
1 Operational excellence – Free cash flow expected to increase • 2016 Guidance excluding Karma and 2016 production guidance of 535-560koz at AISC of US$870-920/oz Houndé: Production Guidance1, ounces AISC Guidance, $/oz Agbaou 165,000 - 175,000 Agbaou 650 - 700 - At US$1,150 gold price, AISC margin
Slide 11: Operational excellence – Q1 2016 in line with full year guidance
1 Operational excellence – Q1 2016 in line with full year guidance Q1-2016 2016 Comment Actual Guidance On-track to meet guidance for the year despite low production Production, koz 132koz 535-560koz from Nzema in Q1-16 AISC, US$/oz $900/oz ($889/oz without Youga) $870-920/oz Decreased AISC in l
Slide 12: Operational excellence – Improved Balance Sheet
1 Operational excellence – Improved Balance Sheet Insights: Significantly decreased net debt position (US$m) US$65m cash injection received from La Mancha in Cash Position Net Debt April following the True Gold transaction close $254m $40m voluntary repayment made under the $350m revolving corpo
Slide 13: Project Development - Houndé and Ity CIL are top tier projects
2 Project Development - Houndé and Ity CIL are top tier projects Top-tier West African projects: West African Peer Projects: $1,000/oz Mine life and All-in cost (including Capex) – Houndé Project, construction started with first gold pour expected by Q4-2017 $950/oz All-in Cash Cost, US$/oz (AISC +
Slide 14: Project Development - Houndé construction underway
2 Project Development - Houndé construction underway Houndé is positioned to be Endeavour’s flagship low cost mine Essakane (IAMGOLD) Inata • Improves the overall quality of our portfolio (Avocet) Taparko (Nordgold) Karma • In line with objective of increasing Group production to Bissa Hill (Nordgol
Slide 15: Houndé Project Fully Financed with Significant Headroom
2 Houndé Project Fully Financed with Significant Headroom Sources of Liquidity and Financing (US$m) Capex Spend (US$m) Pro-Forma cash position of US$ 182m ~500-550m Liquidity position at the end of March of US$ 342m Fully financed with FCF providing +50% Free Cash + funding headroom Flow of $342
Slide 16: Houndé Increases the Quality of our Portfolio
2 Houndé Increases the Quality of our Portfolio Ranks amongst the highest quality West African mines Lowest cost mines Highest cost mines 600 Tarkwa 550 500 Akyem 450 Essekane Production, kozpa 400 350 Loulo Ahafo 300 Gounkoto Siguiri Bissa Mana Chirano 250 Tongon Tasiast Houndé Syama Lefa Edikan 20
Slide 17: Unlock Exploration Value – Long-term planning underway
3 Unlock Exploration Value – Long-term planning underway • One of the largest exploration packages in Most West African gold findings are located in the Birimian greenstone belt West Africa • Strategically positioned to become the the largest gold producer in both Côte d’Ivoire and Burkina Faso whic
Slide 18: Opportunistic M&A Approach - Improve portfolio quality
4 Opportunistic M&A Approach - Improve portfolio quality • Priority is Internal growth before M&A 2015-2016 transactions improved quality of portfolio consideration • M&A is driven by value creation and Youga Mine cash-flow per share increase, NOT Strategic Partnership divestment Acquisition of prod
Slide 19: Why True Gold?
4 Why True Gold? Karma Production Profile • Fits with our M&A criteria : AISC (US$/oz) Production based on reserves (koz) 160 – Production-ready with immediate 140 cash flow generation 120 Objective of converting – 110-120koz low-cost production at 668 639 636 existing inferred 100 80 AISC of ~US$70
Slide 20: Benchmarking vs Peers – Gold Production
Benchmarking vs Peers – Gold Production 2016E Gold Production (koz) 1289.817 +900 800.70 782.106 781.027 535-560koz (excluding Karma) 523.474 471.677 427.111 376.264 315.677 237.336 220.483 2015 – 2018E Annual Gold Production Growth(1) 20% 17% 11% 10% 7% Average: 7.9% 6% 6% 5% 3% 2% 0,1% -1% Endeavo
Slide 21: 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 21.5x 19.5x Slightly be
Slide 22: Conclusion: Endeavour's Re-rating has begun
Conclusion: Endeavour’s Re-rating has begun Share Price Re-Rating + True Gold Acquisition = C$2.2B Market Cap C$/share Market Capitalization 30 25 20 C$2.2 billion 15 10 C$450m 5 C$244m C$256m C$227m 0 3/31/2015 6/30/2015 9/30/2015 12/31/2015 07/15/2016 CREATING A PREMIER AFRICAN GOLD PRODUCER 21
Slide 23: Investment Highlights
Investment Highlights Premier African gold producer with focus on building a high quality portfolio Established track record of building mines on time and on budget in west Africa Efficient operators with focus on lowering costs Positioned to unlock significant exploration potential across t
Slide 24: Appendix 1: Asset Description
Appendix 1: Asset Description CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 25: Sustained production performance in Q1-2016
Sustained production performance in Q1-2016 Production trend Production, on a 100% basis in koz Insights: +6% All mines in line with guidance except for 124koz 131koz 125koz 137koz 132koz Nzema, which is expected to perform better in upcoming quarters Q1-2016 includes 2 months of Youga productio
Slide 26: Continued reduction in all-in sustaining costs
Continued reduction in all-in sustaining costs AISC breakdown (in $/oz) Q1-2015 Q1-2016 2016 Full Year Guidance Agbaou 577 525 650 - 700 All-in Sustaining Costs Tabakoto 1,127 1,071 920 - 970 and weighted impact on group AISC, US$/oz Nzema 1,194 1,158 970 - 1,020 Ity - 710 800 - 850 $1,137 Youga 851
Slide 27: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Quick Facts (on 100% basis) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Côte d’Ivoire Resources M&I: 14.4Mt @ 2.5 g/t for 1.180Moz (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 28: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Q4 Q1 Full year ended Dec 31 Insights: 2015 2016 2014 2015 Operational Data • Agbaou achieved record production in FY-2015, up 24% over the previous year with a 20% increase in mill throughput and Mining continued benefit from mining free-dig oxide ore Waste (kt) 4,171 5,
Slide 29: Agbaou Exploration Potential – Côte d'Ivoire
Agbaou Exploration Potential – Côte d’Ivoire Agbaou Site Map • Phase 1 drilling commenced in January 2016 (Green blocks) • The objective of phase 1 is to define new drill targets to be followed by a second phase of drilling • Phase 2 aims to convert the mineralized zones, defined by Phase 1, into in
Slide 30: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quick Facts (on 100% basis) 80-90% Endeavour depending on pit, remainder Ownership government of Mali Resources M&I: 18.5Mt @ 3.1 g/t for 1.844Moz (incl. of Reserves) Inferred: 9.0Mt @ 3.6 g/t for 1.023Moz Mali Reserves 6.4Mt @ 3.5 g/t for 0.725Moz Processing Rate 1.4 Mtpa Gravi
Slide 31: Tabakoto Mine – Mali
Tabakoto Mine – Mali Q4 Q1 Full year ended Dec 31 Insights: 2015 2016 2014 2015 • Tabakoto increased FY-2015 production by 19% over Operational Data Mining the previous year as the mine benefited from the Waste (kt) 2,286 3,124 6,407 6,453 start of mining of Kofi C open pit and the full ramp-up Ore
Slide 32: 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 33: 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 34: Nzema Mine – Ghana
Nzema Mine – Ghana Q4 Q1 Full year ended Dec 31 Insights: 2015 2016 2014 2015 • Q1-2016 production impacted by lower volumes of Operational Data purchased ore, as purchased ore suppliers are ramping- Mining up operations following the halt experienced in late Waste (kt) 1,063 1,433 6,963 4,096 2015
Slide 35: 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 36: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Post acquisition Q1 Full year period Insights: (Nov 28 to Dec 31, 2015) 2016 ended 2015 Operational Data • Ity mine integration progressed well in Q1-2016 Mining • The Ity CIL feasibility study is expected to be completed in Waste (kt) 368 1,811 5,465 the third quarter of 20
Slide 37: 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 38: 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 39: Houndé Project – Burkina Faso
Houndé Project – Burkina Faso Quick Facts (on 100% basis) Ownership 90% EDV, 10% Burkina Faso Karma Project Status Fully permitted, construction launched Production start date First gold pour expected Q4 2017 Ouagadougou Burkina Faso Resources M&I: 37.9Mt @ 2.1 g/t for 2.551Moz Houndé Project (incl.
Slide 40: Houndé Exploration Upside
Houndé Exploration Upside • The Houndé exploration tenement Exploration Targets in Proximity to the Planned Mill covers +1,075km² within Burkina Faso’s highly prospective Birimian belt • Historically, exploration focus mainly on the Vindaloo trends • At least 15 other significant targets were identi
Slide 41: 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 42: 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 43: 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 44: 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 45: 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 2.42 1,027 14.4 2.54 1,180 1.2 1.71 65 Tabakoto Mine 6.4 3.50 725 18.5 3.09 1,844 9.0 3.55 1,023 Nze
Slide 46: Gold Revenue Protection Program Limit Debt Drawdown
Gold Revenue Protection Program Limit Debt Drawdown Gold Revenue Protection Program : Gold Option Collar Strategy • Gold Option Contracts aim to increase Gold price in US$/oz 1,500 Upside on 50% of the certainty of the free cash flow during production the construction period Collar “written calls” s
Slide 47: Appendix 2: Company Information
Appendix 2: Company Information CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 48: Endeavour Mining – Board of Directors
Endeavour Mining – Board of Directors Michael E. Beckett – Chairman, Non-executive Director Naguib Sawiris – Non-executive Director Former chair of Ashanti Goldfields & former Managing Director of Consolidated • Chairman of the advisory board of La Mancha, Chairman of the Board of Gold Fields Orasco
Slide 49: Cash Flow generation is on track to meet guidance…
Cash Flow generation is on track to meet guidance… Q1-2016 Q4-2015 US$m US$/oz US$m US$/oz Gold revenue 151 1,192 157 1,102 Royalties (7) (54) (8) (53) Cash cost for ounces sold (90) (709) (105) (740) Cost G&A (5) (38) (8) (56) Sustaining Capital (11) (87) (10) (70) Sustaining Exploration (1) (12) (
Slide 50: …with some phasing on working capital changes in Q1-2016
…with some phasing on working capital changes in Q1- 2016 In US$m Q1-2016 Q4-2015 Free cash flow (before WC, taxes and financing costs) 28 12 Working capital change (20) 26 Taxes paid (3) (1) Interest paid (0) (7) Other items* (2) (5) Free Cash Flow 3 25 Insights: Negative working capital movement
Slide 51: Balance Sheet
Balance Sheet March 31, December 31, 2016 2015 ASSETS Current Cash $ 117,004 109,519 Cash - restricted 3,583 4,824 Trade and other receivables 5,474 13,045 Income taxes receivable (Note 17) 283 2,945 Inventories (Note 5) 74,653 93,939 Prepaid expenses and other 12,603 12,640 Loan receivable (Note 6)
Slide 52: P&L Three months ended March 31
P&L Three months ended March 31, 2016 2015 Revenues Gold revenue $ 143,957 $ 130,449 Cost of sales Operating expenses 83,985 79,759 Depreciation and depletion 26,224 17,958 Royalties 6,590 6,353 Earnings from mine operations 27,158 26,379 Corporate costs 4,826 3,983 Acquisition costs (Note 22) 1,249
Slide 53: Cash Flow Statement
Cash Flow Statement Three months ended March 31, 2016(1) 2015 (1) Operating Activities Earnings before taxes $ 5,583 $ 20,289 Adjustments for: Depreciation and depletion 27,483 19,451 Unwinding of reclamation obligation 192 194 Amortization of financing costs 1,124 1,016 Unrealized gain on marketabl
Slide 54: Contact Information
Contact Information Vincent Benoit DFH Public Affairs in Toronto EVP – Strategy & Business Development John Vincic, Senior Advisor +33 (0)1 70 38 36 96 +416 206 0118 x.224 vbenoit@endeavourmining.com jvincic@dfhpublicaffairs.com Martino De Ciccio Brunswick Group LLP in London VP – Strategy & Investo