Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (February 2020)
132 slides from Endeavour Mining's investor presentation, February 2020
Slide 1: Corporate Presentation February 2020
CORPORATE PRESENTATION › February 2020
Slide 2: Disclaimer & Forward Looking Statements
CORPORATE PRESENTATION 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: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 OUTLOOK & RESULTS 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 4: Endeavour Mining Overview
CORPORATE PRESENTATION ENDEAVOUR MINING OVERVIEW A premier African gold producer with a strong presence in West-Africa SENEGAL GAMBIA MALI Karma Mine 3,800 GUINEA- BURKINA FASO Bamako EMPLOYEES WORLDWIDE BISSAU Ouagadougou Kalana GUINEA Project Houndé Mine SIERRA CÔTE LEONE 680-740koz $845-895/oz D’
Slide 5: Company Profile
CORPORATE PRESENTATION COMPANY PROFILE Shareholder Distribution Ticker TSX:EDV Shares Outstanding as at December 31 110m RETAIL LA MANCHA MANAGEMENT INSTITUTIONAL Share price as at January 22 C$25.46 Europe Market cap as at January 22 US$2.13B Net Debt as at December 31 ~US$532m Other North America
Slide 6: Our Strategic Objectives
CORPORATE PRESENTATION 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 ROCE QUALITY OF OUR PORTFOLIO ~ $1invested billion Capital allocation trade-offs 2 flagship mines Exploration Dividend P
Slide 7: Production and AISC Profile
CORPORATE PRESENTATION PRODUCTION AND AISC PROFILE Significantly improved the quality of our portfolio INSIGHTS: $1,317/oz 2015 › Ity HL acquired through >800koz strategic partnership with La Mancha in late 2015 $1,010/oz 727koz 680-740koz 2016 $886/oz 663koz › Youga divested due to 651koz $845-895/
Slide 8: Successful Execution of Our Strategy
CORPORATE PRESENTATION SUCCESSFUL EXECUTION OF OUR STRATEGY Focused on delivering against our 4 strategic pillars KEY FOCUS GOING FORWARD Strong achievements across our 4 pillars over past 5 years STRONG CASH FLOW GENERATION TO ACCELERATE DELEVERAGING AND DEMONSTRATE ROCE UPCOMING GROWTH WITH LOW CA
Slide 9: Operational Excellence
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Hands-on management model with teams close to operations London Based Sebastien de Montessus CEO & Director SENEGAL MALI 2h40 GAMBIA Karma Louis Irvine Mine CFO BURKINA FASO Morgan Carroll GUINEA- Bamako Houndé EVP Corporate Finance & BISSAU Kalana Min
Slide 10: Operational Excellence: Safety
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Our safety record remained below the industry average Lost Time Injury Frequency Rate (on a rolling 12-months basis) 0.72 0.14 LTM Lost Time Injury Frequency Rate 0.40 0.29 0.16 0.14 Peer FY2016 FY2017 FY2018 FY2019 0.00 Houndé 0.00 Agbaou 0.00 Ity 2 L
Slide 11: Operational Excellence: Local Talent
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Focused on growing local talent Employee breakdown for continuing operations Expats Nationals GENERAL MANAGERS 50% 95% site workforce 2 out of 4 are West-African are nationals 0% 25% in 2017 in 2018 SITE WORKFORCE HEAD OF DEPARTMENTS 95% 42% 50% 2,327
Slide 12: Responsible Gold Mining Principles
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Adoption of World Gold Council’s Responsible Gold Mining Principles Adopted from the World Gold Council Responsible gold mining principles › An over-arching framework that sets out clear expectations as to what constitutes responsible gold mining › Des
Slide 13: Two Flagship Mines
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Improved portfolio quality through construction of two flagship mines COMBINED TOTAL 2 FLAGSHIP ASSETS OTHER ASSETS ASSETS HOUNDÉ ITY AGBAOU KARMA ALL OPERATIONS Plant type CIL CIL CIL Heap Leach Mine type Open pit Open pit Open pit Open pit 230 235 11
Slide 14: Project Development
CEO CORPORATE INTRODUCTION PRESENTATION PROJECT DEVELOPMENT 2 Strong construction track record MOST RECENT MINE BUILDS COMPLETION NZEMA, GHANA, BUILT IN 2010 AGBAOU, CÔTE D’IVOIRE, BUILT IN 2014 ON-SCHEDULE HOUNDÉ, BURKINA FASO, BUILT IN 2017 ITY CIL, CÔTE D’IVOIRE, BUILT IN 2019 ON-BUDGET 0 LTIs 14
Slide 15: Self-performing Tasks Driving Cost Savings
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Self-performing tasks driving cost savings › Examples of self-performed tasks: % of self-performed tasks +94% +95% ‒ Civil works with own concrete plant ‒ Earthworks with own equipment ‒ Tailings storage facility earthworks +60% ‒ Bolted tank construction
Slide 16: Strong Organic Growth Pipeline
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Strong organic growth pipeline Daoukro Cluster (Côte d’Ivoire) Le Plaque Kofi Trend (Côte d’Ivoire– Ity trend) (Mali) Bondoukou Clust. (Côte d’Ivoire) Siguiri Ity CIL (Guinea) Randgold JV (Côte d’Ivoire) Ity CIL upsize (completed) Kalanako (Mali) Kalana S
Slide 17: Strong Organic Growth Potential
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Strong organic growth potential Kalana Fetekro Country Mali Côte D’Ivoire Status Feasibility Study PEA in progress Reserves1 (Moz) 1.96 n/a Reserve Grade1 (g/t) 2.81 n/a M&I Resources1 (Moz) 2.09 1.19 M&I Resource grade1 (Moz) 3.70 2.54 Payback period, ye
Slide 18: Unlock Exploration Value
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Among largest and most promising portfolios in West Africa 10,090km² EXPLORATION TENEMENTS +200 EXPLORATION TARGETS 14Moz 10-15Moz 5-YEAR DISCOVERY M&I RESOURCES* TARGET* *Reserve and Resource at year-end 2018 18
Slide 19: Screening and Ranking Methodology
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Screening and ranking methodology Exhaustive screening of all Strategic >200 potential targets Prioritization CONSERVATIVE First filtering APPROACH SIMILAR TO THAT USED IN Exploration budget OIL & GAS INDUSTRY required per target to 130+ target scree
Slide 20: Delivering Against 5-Year Strategy
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Starting to deliver against our 5-year strategy Indicated discovery target by area as published in Nov. 2016 4.0-6.0Moz 4.0-6.0Moz 10-15Moz 5-year Indicated Resource discovery target 2.5-3.5Moz 1.5-2.5Moz 0.5-1.0Moz 0.5-1.5Moz 0.5-1.5Moz target excee
Slide 21: Over 1.2 Million Meters Drilled
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Over 1.2 million meters of drilling between 2017 and 2019 2017 PRIORITIES Exploration spend by mine 1. Ity to extend HL and Improve CIL case 2. Tabakoto due to its short mine life 3. Agbaou to test potential $44m $53m $45-50m $45-50m 2018 PRIORITIES
Slide 22: On Track to Meet Exploration Targets
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 On track to meet 5-year exploration targets Total Indicated discoveries and targets Indicated resources discovered 6.3Moz Indicated resources targeted % Cumulative Indicated resources against 5-year discovery target 100% 80% 1.5-2.5Moz 10-15Moz disco
Slide 23: High Quality Discoveries Made
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 High quality discoveries made Discovery grades for Indicated resources by deposit From mid-2016 to end of 2019 unless indicated otherwise 3.20g/t 2.70g/t 2.54g/t >2 g/t grade of 75% of 2.20g/t 2.14g/t 2.14g/t 2.10g/t discovered ounces 1.71g/t 1.50g/t
Slide 24: Low Discovery Cost
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Low discovery cost Discovery cost for Indicated resources by deposit From mid-2016 to end of 2019 unless indicated otherwise $149/oz $12/oz Average Endeavour discovery cost to date $76/oz $29/oz $15/oz $15/oz $15/oz $14/oz $13/oz 6x lower $10/oz $9/o
Slide 25: Potential for +250koz for 10 Years at Flagships
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Exploration demonstrates potential for +250koz for 10 years at flagship mines Ity production plan DISCOVERIES MADE (As per 2017 Optimized Study (3), based on 4Mtpa plant and excludes Le Plaque discovery) LE PLAQUE KARI AREA SINCE STUDIES WERE PUBLISH
Slide 26: Return on Capital Employed
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Strong focus on demonstrating returns following investment phase Return on capital employed (1) 15% 15% ROCE based on Q3-2019 annualized 7% 6% +8pts Q3-2019 annualized vs. FY-2018 2017 2018 2019 (Q3 annualized) (1) EBIT (Adjusted EBITDA a
Slide 27: Strengthening Balance Sheet
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Strengthening balance sheet after investments were completed Ity project growth capex and net debt $129m Ity capex incurred the period Ity capex remaining INVESTMENT DEBT REDUCTION PHASE PHASE Net Debt Net Debt / Adj. EBITDA (LTM) $660m -
Slide 28: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 OUTLOOK & RESULTS 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 29: 2020 Guidance
CORPORATE PRESENTATION 2020 GUIDANCE INSIGHTS Production Guidance › Group production is expected to increase to 680-740koz in 2020 at an AISC of $845-895/oz. Production is 2019 2020 FULL-YEAR (All amounts in koz, on a 100% basis) ACTUALS GUIDANCE expected to be higher and AISC lower during the latte
Slide 30: Capital Expenditure Guidance
CORPORATE PRESENTATION 2019 GUIDANCE (continued) SUSTAINING COSTS INSIGHTS Capital Expenditure Guidance, $m › Ity: $4m, mainly related to heavy mining equipment components › Houndé: Circa $50m, due to carryover of costs not incurred in 2019. Roughly (in US$ million) SUSTAINING CAPITAL NON-SUSTAINING
Slide 31: Operating Cash Flow
CORPORATE PRESENTATION OPERATING CASH FLOW Operating cash flow benefited from full quarter of Ity CIL and higher gold prices Operating cash flow before working capital (from all operations) $115m +$58m +101% Q3-2019 vs. Q2-2019 $64m $57m $48m $45m +$70m Q3-2019 vs. Q3-2018 Q3-2018 Q4-2018 Q1-2019 Q2
Slide 32: Cash Flow Per Share
CORPORATE PRESENTATION CASH FLOW PER SHARE Strong focus on per share metrics as dilution was protected to fund growth Operating Cash Flow Before Non-Cash Working Capital from all operations, in $/share $1.05/share INSIGHTS 11% Annualized cash flow yield $0.59/share Operating activities, in US$m 96 L
Slide 33: Financial Overview
CORPORATE PRESENTATION FINANCIAL OVERVIEW Benefited from the Ity CIL start-up and lower growth capex QUARTER ENDED NINE MONTHS ENDED Sept. 30, June 30, Sept. 30, Sept. 30, For Continuing Operations Variance Variance +289% (in US$ million unless otherwise stated) 2019 2019 2019 2018 PRODUCTION AND AI
Slide 34: All-in Margin Breakdown
CORPORATE PRESENTATION ALL-IN MARGIN BREAKDOWN Margin increased by $28/oz in YTD-2019 compared to YTD-2018 As at September 30, 2019 IN US$M IN $/OZ INSIGHTS From continuing operations unless otherwise 1. Increased due to both higher production and YTD-2019 YTD-2018 YTD-2019 YTD-2018 Variance specifi
Slide 35: Net Free Cash Flow
CORPORATE PRESENTATION NET FREE CASH FLOW Net free cash flow increased following completion of investments in Q3-2019 As at September 30, 2019 From continuing operations unless otherwise specified INSIGHTS YTD-2019 YTD-2019 Variance (in US$ million) 1. Mainly due to a $34m outflow of payables in ALL
Slide 36: Cash Flow Analysis
CORPORATE PRESENTATION CASH FLOW ANALYSIS Capital requirements wind-down following completion of Ity CIL Net Cash Variation Analysis OPERATING ACTIVITIES › YTD-2019 (as at Sep. 30) increased by $63m compared to YTD- 2018, mainly due to a $94m increase in revenue which was partially offset by a $38m
Slide 37: Adjusted Earnings Per Share
CORPORATE PRESENTATION ADJUSTED EARNINGS PER SHARE Strong increase due to benefit of low cost Ity CIL and higher gold prices Adjusted earnings per share Adjusted EPS from all operations, in $/share $0.30/share +275% Q3-19 vs. Q2-19 $0.15/share $0.08/share ($0.01/share) ($0.04/share) +$0.22 Q3-19 vs.
Slide 38: Net Debt Analysis
CORPORATE PRESENTATION NET DEBT ANALYSIS Strong liquidity sources Available sources of financing and liquidity INSIGHTS As at December 31, 2019 › Following nearly four years of intensive growth-capital investment, Net Debt was reduced by $52 million in Q3-2019 and a further $77 million in Q4-2019, m
Slide 39: Diversified Debt Sources
CORPORATE PRESENTATION DIVERSIFIED DEBT SOURCES Diversified debt sources with low interest cost and long maturity DEBT SOURCES: 1) REDUCES ITS OVERALL FINANCING COSTS AND DE-RISKS LIBOR EXPOSURE $430M RCF Annual saving based on $330m convertible compared LIBOR curve › Interest rate of LIBOR to $330m
Slide 40: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 OUTLOOK & RESULTS 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 41: Houndé Mine Overview
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 44.7Mt @ 2.2 g/t for 3.134Moz (incl. of Reserves) Inferred: 3.2Mt @ 2.6 g/t for 0.268Moz Ouagadougou Reserves 34.8Mt @ 2.19 g/t for 2.450Moz Houndé Mine
Slide 42: Houndé: Q4 Throughput and Strip Ratio
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Q4 benefitted from higher throughput and lower strip ratio Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained flat as slightly higher Production, koz AISC, US$/oz throughput was offset by lower processed grades 76koz ‒ Mining focuse
Slide 43: Houndé: Kari Pump Potential
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Potential to start mining Kari Pump in the latter portion of the year FY-2019 INSIGHTS Production and AISC › As guided, production decreased and AISC increased due AISC ($/oz) Production (koz) to low grade stockpiles supplementing the mill feed and a
Slide 44: Kari West and Center Reserves Expected Q1-2020
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari West and Kari Center reserves expected in Q1-2020 Houndé production plan DISCOVERIES MADE SINCE STUDIES KARI AREA (As per 2016 Optimized Study(1), excludes Kari Pump discovery) WERE PUBLISHED (HOUNDÉ) 1.1Moz of total reserve additions required Pr
Slide 45: Houndé: Significant Exploration Potential
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Significant exploration potential highlighted INSIGHTS › Following a two year period of no exploration drilling, activities resumed in 2017 2.5-3.5Moz › In 2017, targets were 5-YEAR DISCOVERY drilled and ranked › Work performed TARGET included advance
Slide 46: Houndé: Strong Exploration Focus
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Strong exploration focus Kari Mineralization Map at November, 2019 Houndé exploration targets over gold-in-soil anomalies 46
Slide 47: Kari Gold in Soil Anomaly
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari gold in soil anomaly covers a 6km-long by 3km-wide area INSIGHTS Kari target map › Kari gold in soil anomaly covers a 6km-long by 3km- wide area. › The Kari area has been the main exploration focus over the past two years with over 350,000m drill
Slide 48: 2Moz Discovered in Kari Area
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO 2Moz discovered in Kari Area with further reserves expected in Q1-2020 Houndé Mine Reserve and Resource Including Kari Area P&P RESERVES M&I RESOURCES INFERRED RESOURCE Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content On a 100% basis.
Slide 49: Kari Pump Maiden Reserve
CORPORATE PRESENTATION HOUNDÉ EXPLORATION, BURKINA FASO Kari Pump 710koz maiden reserve increased Houndé reserves by 41% INSIGHTS Drill map and selected intercepts per area (true width/grade) › High M&I resource to reserve conversion rate: 89% based on a gold price of $1,250/oz › Significantly highe
Slide 50: Kari Pump Oxide/Transition Ore
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO ~53% of the Kari Pump reserve is oxide/transition ore Section B-B’ 50
Slide 51: Kari Pump Continuous Mineralisation
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Pump has a highly continuous mineralisation INSIGHTS Kari Pump Extension Drilling and Selected Intercepts › Drilling campaigns in 2017 and 2018 successfully delineated the Kari Pump maiden resource and related reserves › The 2019 drilling campaig
Slide 52: Maiden Resource at Kari West and Center
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Combined 1.0Moz maiden Indicated Resource at Kari West and Kari Center 2019 Drilling Activity in the Kari Area INSIGHTS › Combined Indicated resource of 19.4Mt at 1.61 g/t Au for 1.0Moz based on a 0.5 g/t cut-off, which includes 7.2Mt at a higher grad
Slide 53: Kari West Maiden Resource
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari West: 0.9Moz maiden resource delineated in Q4-2019 INSIGHTS Kari West 2019 drill map with selected intercepts › Discovered during the 2018 AC drilling campaign › In 2019, follow-up RC drilling has successfully delineated and defined a mineralized
Slide 54: Kari West Open at Depth
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari West: remains open at depth, to the west and to the east 54
Slide 55: Kari Center Maiden Resource
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Center: maiden resource delineated in Q4-2019 INSIGHTS Kari Center Drilling Activity over 2019 › Mineralization was first intercepted at Kari Center during AC initial reconnaissance drilling in 2017. Follow up RC and DD drill programs in 2018 con
Slide 56: Kari Center Open to Southwest
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Center: remains open to the southwest 56
Slide 57: Vindaloo: Targeting High-Grade Plunges
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Vindaloo: targeting high-grade plunges 57
Slide 58: Ity Mine Overview
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 77.2Mt @ 1.6 g/t for 4.037Moz (incl. of Reserves)(1) Inferred: 19.1Mt @ 1.4 g/t for 0.830Moz Côte d’Ivoire Reserves 60.8Mt @ 1.6g/t for 3.039Moz Côte d’I
Slide 59: Ity Plant Capacity Increased 25%
CEOCORPORATE INTRODUCTION PRESENTATION ITY MINE, CÔTE D’IVOIRE Plant capacity increased by 25% from 4Mtpa to 5Mtpa CONSTRUCTION ACHIEVEMENTS STRONG RAMP-UP UPGRADE COMPLETE ACHIEVED TOP-END OF UPSIZE BY 25% FY-2019 GUIDANCE TO 5MTPA COMPLETED ON TIME & ON BUDGET ON-SCHEDULE 64koz 60koz 58koz PLANT A
Slide 60: Ity CIL Q4 Operations
CORPORATE PRESENTATION ITY MINE – CIL OPERATION, CÔTE D’IVOIRE Lower grade stockpiles used to supplement mill feed Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production decreased slightly as lower Production, koz AISC, US$/oz processed grades and recoveries were HL CIL partially offset by inc
Slide 61: Ity CIL 2020 Outlook
CORPORATE PRESENTATION ITY MINE – CIL OPERATION, CÔTE D’IVOIRE A greater proportion of fresh ore is planned to be processed in 2020 FY-2019 INSIGHTS Production and AISC › Ity had its first gold pour in March 2019 with commercial AISC ($/oz) Production (koz) production declared in early Q2-2019 › Com
Slide 62: Ity Extended with Le Plaque Discovery
CORPORATE PRESENTATION ITY MINE – CIL OPERATION, CÔTE D’IVOIRE Ity expected to be extended with Le Plaque discovery DISCOVERIES MADE SINCE STUDIES LE PLAQUE Ity production plan (As per 2017 Optimized Study (2), based on 4Mtpa plant and excludes Le Plaque discovery) WERE PUBLISHED (ITY) 0.5Moz of tot
Slide 63: Endeavour Controls the Ity Birimian Belt
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Endeavour controls the full Ity Birimian belt 4-6Moz 5-YEAR DISCOVERY TARGET <$15/oz AVERAGE 5-YEAR DISCOVERY COST Targeting to discover between 4 - 6 Moz with average grade between 2.0 - 3.5 g/t Au. The potential quantity of ounces is conceptual in nat
Slide 64: Strong Near-Mine Exploration Potential
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Strong near-mine exploration potential Ity Mine Drilling Targets Simplified Ity Map with Exploration Targets 64
Slide 65: Le Plaque Maiden Resource
CORPORATE PRESENTATION ITY EXPLORATION: LE PLAQUE Maiden resource added 0.4Moz of Indicated resources added at >3 g/t Au LE PLAQUE INSIGHTS Le Plaque targets › Indicated resource has increased from 85koz to 476koz › Continued low discovery cost of $15/oz › Ity mine M&I resource up 11% with significa
Slide 66: Le Plaque Drill Map and Intercepts
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE 2019 exploration focus was on the La Plaque discovery INSIGHTS Le Plaque Drill Map and Selected Intercepts (true width/grade) Per Area › The 2019 Le Plaque drilling campaign had the aim of delineating further resources and achieving reserve status for i
Slide 67: Section A - Epsilon Area
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Section A - Epsilon Area 67
Slide 68: Section B Le Plaque Main and South
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Section B Through the Le Plaque Main and Le Plaque South Areas 68
Slide 69: Several Other Nearby Targets
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Several other nearby targets 69
Slide 70: Greater Ity Regional Gold in Soil Anomalies
CORPORATE PRESENTATION ITY TREND, CÔTE D’IVOIRE Greater Ity regional gold in soil (> 100 ppb) anomalies PR609 East Cavally Several Targets Birimian meta sediments and green belt Gnamapleu Granite-Gneiss PR558 Le Plaque Area Several Targets No Geochemical data at all GUEYA area No Exploration Several
Slide 71: Agbaou Mine Overview
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 9.5Mt @ 2.2 g/t for 0.664Moz (incl. of Reserves) Inferred: 0.8Mt @ 1.7g/t for 0.046Moz Côte d’Ivoire Reserves 8.6Mt @ 1.7g/t for 0.461Moz Ity Mine Pro
Slide 72: Agbaou Q4 Operations
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Higher recovery rate compensated for lower mill throughput and grades Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained flat as a slightly Production, koz AISC, US$/oz higher recovery rate compensated for 44koz lower mill throughp
Slide 73: Agbaou: Shifting to Harder Ore Blend
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Shifting to a harder ore blend FULL YEAR 2019 INSIGHTS Production and AISC › As guided, production decreased marginally due to lower mill throughput and grades which AISC ($/oz) Production (koz) were partially offset by a higher recovery rate › The A
Slide 74: Agbaou Mine Exploration
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Target of finding between 0.5 to 1.5Moz AREAS OF FOCUS: Agbaou Site Map › Main 2017-2018 > 50 ppb priorities were to test area and to generate targets and 0.5-1.5Moz prioritize for the 5-YEAR DISCOVERY upcoming campaigns TARGET › Key Areas targeted were
Slide 75: Short Drilling Campaigns on Near-Mine Targets
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Short drilling campaigns on near-mine targets underway Agbaou Site Map INSIGHTS › The 2019 exploration program began in Q3- 2019, with full results pending from the 2,000 meters of diamond drilling and 5,100 meters of reverse circulation drilling con
Slide 76: Mineralization 150m Under North Pit
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Intercepted mineralization 150m under the North pit Section - AGBDD2141 2m@1.38/t Au 2m@2g/t Au 4m@2g/t Au (incl. 1m@5.23g/t) 2m@5g/t Au 4m@17g/t Au (incl. 2m@26.33g/t) 4m@3g/t Au (incl. 2m@4,70g/t) 3m@2.34g/t Au (incl. 1m@6.26g/t) 3m@2.67g/t Au (incl.
Slide 77: Out-Performance Compared to Study
CORPORATE PRESENTATION STRONG OUT-PERFORMANCE COMPARED TO STUDY Produced almost 300koz more over first 5 years at a 10% lower AISC Production and AISC performance vs. study Actual production Study production Actual AISC Study AISC Mainly free dig oxide operation 196koz Mixing low grade to speed up w
Slide 78: Plant Running Above Nameplate
CORPORATE PRESENTATION STRONG OUT-PERFORMANCE COMPARED TO STUDY Plant running significantly above nameplate Plant performance vs. study Actual Study Benefit of plant running 30% above nameplate and additions of oxide ore reserve ~30% 2.8kt 2.9kt 2.8kt Above nameplate 2.7kt 2.7kt capacity based on ox
Slide 79: Reserves Endowment Up 48%
CORPORATE PRESENTATION STRONG PERFORMANCE COMPARED TO STUDY Reserves endowment up 48% since construction with more oxide material Reserves and depletion Reserves at year-end Cummulative depletion 1.3Moz reserve 1.3Moz endowment Reserves endowment 1,027koz 880koz 926koz 853koz 668koz 461koz 151koz 33
Slide 80: Additional $182m After-Tax Cash Flow
CORPORATE PRESENTATION STRONG PERFORMANCE COMPARED TO STUDY Additional $182m after-tax cash flow was generated Cumulative After-Tax Cash Flows(1) Study Actual US$m 400 300 $322m 62% IRR based only on 200 Payback of first 5 years $140m 100 18 months 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 (100) (
Slide 81: Karma Mine Overview
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 75.3Mt @ 1.1 g/t for 2.655Moz (incl. of Reserves) Inferred: 17.9Mt @ 1.3 g/t for 0.772Moz Ouagadougou Reserves 27.5Mt @ 0.9g/t for 0.764Moz Houndé Mine P
Slide 82: Karma Q4 Operations
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Lower costs due to the benefit of mining and stacking primarily oxide ore Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained fairly flat as an increase in Production, koz AISC, US$/oz stacked tonnage and recovery rates offset the 33k
Slide 83: Karma Production Profile
CORPORATE PRESENTATION KARMA PRODUCTION PROFILE Mining activity is expected to occur at the Kao North and GG1 pits FULL YEAR 2019 INSIGHTS Production and AISC › As guided, production decreased due to lower grades associated with supplemented ore stacked from stockpiles AISC ($/oz) Production (koz) ›
Slide 84: Focus on North Koa, Yabonsgo and Near-Mill Targets
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Focus on North Koa, Yabonsgo and near-mill targets INSIGHTS Karma Site Map › The 2019 exploration program began in late Q3-2019 with drilling mainly focused on the Kao North, Kao Main and GG1 deposits 84
Slide 85: Fetekro Most Advanced Greenfield
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro is our most advanced greenfield exploration property INSIGHTS Simplified Map of the Fetekro Property Showing Lafigué › Fetekro is located in north-central Côte d’Ivoire, approximately 500km from Abidjan, within the northern-end of the
Slide 86: Fetekro Resource of High Quality
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro resource is of high quality INSIGHTS Lafigué Mineral Resource Estimate Evolution › High quality resource: AS AT DECEMBER 31, 2018 AS AT AUGUST 31, 2019 Δ AU ‒ Amenable to open pit mining as Tonnage Grade Content Tonnage Grade Content C
Slide 87: Lafigué Deposit Remains Open
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué deposit remains open UPSIDE POTENTIAL Fétékro’s Lafigué Geological Interpretation and Selected Best Intercepts › Lafigué deposit clearly remains open in various directions, especially towards South and South East › High-grade
Slide 88: Lafigué North Cross-Section (Eastern)
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué North Cross-Section (Eastern part) 88
Slide 89: Lafigué North Cross-Section (Western)
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué North Cross-Section (Western part) 89
Slide 90: Lafigué Centre Cross Section
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué Centre Cross Section 90
Slide 91: Fetekro Upside with Nearby Targets
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s upside potential with nearby targets INSIGHTS › Approximately 35% of the 2019 reconnaissance drilling program was dedicated to the larger Western Anomalies (“WA”), WA 2 and 6 targets following the positive results obtained over WA1 a
Slide 92: Kalana Project Overview
CORPORATE PRESENTATION KALANA PROJECT, MALI Overview QUICK FACTS (ON 100% BASIS – Based on Avnel’s DFS) Ownership 80% EDV; 20% Mali government Status EDV updating the Avnel FS M&I Resources (inclusive of reserves) 3.0Moz @ 4.14g/t (as per Avnel) Mali Reserves 1.96Moz @ 2.80g/t (as per Avnel) Mining
Slide 93: Accretive Acquisition with Strong Upside
CORPORATE PRESENTATION KALANA PROJECT, MALI Accretive acquisition with strong upside TRANSACTION BACKGROUND Reserve life of mine plan based on Avnel Study (only based on Kalana Main deposit) › Purchased for $122m ($7m shares), Production AISC representing 7% of the EDV market cap › Attractive purcha
Slide 94: Increase in Resource Confidence
CORPORATE PRESENTATION KALANA PROJECT, MALI Significant increase in resource confidence based on tighter geological controls INSIGHTS Kalana Main deposit M&I resource evolution › An exploration program conducted in 2018 comprised of approximately 48,000m of drilling › At the Kalana Main deposit, the
Slide 95: 2018 Block Model Results
CORPORATE PRESENTATION KALANA PROJECT, MALI 2018 Block Model Results Blockmodel – Section S100 95
Slide 96: Work Undertaken at Kalana Since Acquisition
CORPORATE PRESENTATION KALANA PROJECT, MALI Work undertaken at Kalana since acquisition FOLLOWING THE Ity CIL Project Case Study AVNEL ACQUISITION: Plant Size Reserves Production AISC Mine life First 5 years First 10 years First 5 years First 10 years › Integration of Avnel into Endeavour Ity PFS 2.
Slide 97: Aim to Increase Resource Base
CORPORATE PRESENTATION KALANA PROJECT EXPLORATION, MALI Aim to increase resource base for project Several Licenses INSIGHTS under negotiation › In line with this strategy, further exploration is With Private underway at Kalana with the goal of delineating owners additional satellite deposits, and up
Slide 98: 2018 Results – Kalana North Intercepts
CORPORATE PRESENTATION KALANA PROJECT, MALI 2018 Results – Positive Kalana North Intercepts 2m @ 15.90 g/t 1m @ 3.76 g/t 5m @ 13.49 g/t 1m @ 0.6 g/t 1m @ 3.52 g/t 1m @ 7.08 g/t 1m @ 0.78 g/t 3m @ 1.24 g/t 4m @ 2.08 g/t 2m @ 0.6 g/t Pending assays 1m @ 1.08 g/t Drillhole with VG 98
Slide 99: Kalanako Deposit Exploration Activities
CORPORATE PRESENTATION KALANA PROJECT, MALI Kalanako deposit exploration activities INSIGHTS Kalanako deposit drilling › Over 13,000 were drilled in 2018 RC DDH DDTT # (m) # (m) # (m) 99 12,765 1 189 2 350 › A resource was published in Q1-2019 Tonnage Grade Content Kalanako (Kt) Au g/t (Au koz) Meas
Slide 100: Regional Kalana Exploration Potential
CORPORATE PRESENTATION KALANA PROJECT, MALI Regional Kalana Exploration Potential Termite Mounts Au anomalies INSIGHTS › Fougadian application being processed › Kalako East licenses under review and discussion with private owners › Drilling started in 2019 100
Slide 101: JV With Barrick on Sissedougou / Mankono
CORPORATE PRESENTATION GREENFIELD EXPLORATION, CÔTE D’IVOIRE JV With Barrick on Sissedougou / Mankono JV WITH BARRICK (EX-RANDGOLD) › Drill results suggested the presence of an 800-metre mineralized structure at Sissedougou with best drill results of : ‒ 34.6 m @ 2.08 g/t Au at 74.6 m, including 1.0
Slide 102: Greenfield Exploration, Burkina Faso
CORPORATE PRESENTATION GREENFIELD EXPLORATION, BURKINA FASO Liguidi Area 102
Slide 103: Greenfield Exploration, Niger
CORPORATE PRESENTATION GREENFIELD EXPLORATION, NIGER New and Well Located Exploration Licenses INSIGHTS › Full review of country prospectivity conducted in 2016 › Highly prospective area of Nassile and Dar-Guiti Exploration Permit applied for and obtained in 2017 › Total surface area: 695 km² 103
Slide 104: Greenfield Exploration, Guinea
CORPORATE PRESENTATION GREENFIELD EXPLORATION, GUINEA New and Well Located Licenses in Siguiri Basin GUINEA: 104
Slide 105: Greenfield Exploration, Mali
CORPORATE PRESENTATION GREENFIELD EXPLORATION, Mali Kofi area › Kofi on same trend as Randgold’s Loulo-Gounkoto in Mali › Exploration license of Kofi not sold in Tabakoto sales process › Aim is to attain additional license around Kofi North / Netekoto to consolidate exploration cluster 105
Slide 106: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 OUTLOOK & RESULTS 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 107: Equity Markets Strongly Support West Africa
CORPORATE PRESENTATION EQUITY MARKETS STRONGLY SUPPORT WEST AFRICA Amongst top ranking region for equity proceeds over past 10 years Equity raises for gold companies over past 10 years For the period between 2006-2016 10 $9.82B 8 +$ 6 billion raised for West Africa $6.35B $5.89B US$ Billions 6 4 $3.
Slide 108: Significant Exploration Efforts in West Africa
CORPORATE PRESENTATION SIGNIFICANT EXPLORATION EFFORTS IN WEST AFRICA Endeavour represents over 10% of total West African spend 2017 exploration budget ($m) 677 634 +$ 5 billion spent in West Africa 385 over last 10 years 363 247 176 175 173 137 123 113 110 100 77 75 74 71 47 10% of global budget is
Slide 109: Significant West-Africa Exploration Success
CORPORATE PRESENTATION SIGNIFICANT WEST-AFRICA EXPLORATION SUCCESS Top ranking region for discoveries over past 10 years Discoveries by area For the period between 2006-2016 +79Moz 79Moz Discovered over past 10 years in West Africa 50Moz 42Moz 33Moz No.1 27Moz 27Moz 23Moz 22Moz 20Moz 18Moz 16Moz 16M
Slide 110: More Exploration Spend in Smaller Region
CORPORATE PRESENTATION SIGNIFICANT EXPLORATION EFFORTS IN WEST AFRICA More exploration expenditures in a region that is 5x smaller Land mass compared to exploration spend 900 800 700 2017 exploration budget ($m) Canada Australia 600 500 400 West More spending, yet 5x smaller land mass Africa USA 300
Slide 111: Burkina Faso & Côte d'Ivoire Under-Explored
CORPORATE PRESENTATION BURKINA FASO & COTE D’IVOIRE ARE UNDER-EXPLORED Host ~60% of belt yet represents ~25% of production % of Birimian greenstone belt West African geology - Birimian greenstone belt Burkina Faso 22% Côte d’Ivoire 35% Other 14% Mali Ghana 10% 19% 2016 production (Moz) Côte Burkina
Slide 112: Burkina Faso & Côte d'Ivoire Fast Growing
CORPORATE PRESENTATION BURKINA FASO & COTE D’IVOIRE ARE FAST GROWING Represent half of the region's exploration expenditures West African exploration expenditures by country 2017 exploration expenditures Côte d’Ivoire 20% ~50% Burkina Faso of West African exploration 29% expenditures Ghana Other Cou
Slide 113: Strong Production Growth in West Africa
CORPORATE PRESENTATION STRONG PRODUCTION GROWTH IN WEST AFRICA Has quickly become a top producing gold region 2016 gold production by country 15Moz +81% West African production growth over past 9Moz 9Moz 15 years 8Moz 7Moz 5Moz 5Moz 5Moz 4Moz 3Moz 3Moz 3Moz 4th largest gold producing China Mexico Un
Slide 114: West Africa Operates as an Economic Union
CORPORATE PRESENTATION WEST AFRICA OPERATES AS AN ECONOMIC UNION Single currency with economies becoming more integrated Countries using West African CFA INSIGHTS › West Africa acts as an economic zone (WAEMU) › Common central bank for 8 states › Common currency which is pegged to the Euro › Fiscal
Slide 115: Security in Burkina Faso
CORPORATE PRESENTATION SECURITY IN BURKINA FASO Significant foreign aid and co-operation amongst West-African nations Burkina Faso security heat map (SMF) (SMF) 115
Slide 116: Stable Political Environment
CORPORATE PRESENTATION STABLE POLITICAL ENVIRONMENT Single currency with economies becoming more integrated Burkina Faso Côte d’Ivoire Republic of Mali 2017 GDP (USD b) (1) 12.87 40.39 15.29 2017 GDP Growth(1) 6.7% 7.8% 5.3% GDP › Agriculture (31%), manufacturing, › Agriculture (20%), manufacturing,
Slide 117: West Africa Mining Codes Well Aligned
CORPORATE PRESENTATION WEST AFRICA MINING CODES ARE WELL ALIGNED Very similar to developed countries Corporate Income Tax and Royalties INSIGHTS › Transfer pricing regulations Country / Region Corporate Tax Mining Royalties recently established in the Burkina Faso Up to 27.5% Up to 5% jurisdiction C
Slide 118: Only Multi-Asset West African Mid-Tier Producer
CORPORATE PRESENTATION ENDEAVOUR IS EMERGING AS THE ONLY MULTI-ASSET WEST AFRICAN MID-TIER PRODUCER Operating Mines # Countries of operations # West Rest of Rest of the West Rest of Rest of the Africa Africa World Africa Africa World Geographically focused yet diversified across multiple mines and m
Slide 119: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 OUTLOOK & RESULTS 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 120: Board Members
CORPORATE PRESENTATION BOARD MEMBERS Michael BECKETT Olivier COLOM, Livia MAHLER, Jim ASKEW, Chairman, Non-executive Director Non-executive Director Non-executive Director Non-executive Director Wayne MCMANUS, Sébastien de MONTESSUS, Naguib SAWIRIS, Sofia BIANCHI, Non-executive Director CEO & Presid
Slide 121: Analyst Coverage
CORPORATE PRESENTATION ANALYST COVERAGE Firm Analyst Phone Email Berenberg Richard Hatch ✆ +44 20 3753 3070 ✉ richard.hatch@berenberg.com Credit Suisse Fahad Tariq ✆ +1 416 352 4593 ✉ fahad.tariq@credit-suisse.com Clarus Securities Varun Arora ✆ +1 416 343 2779 ✉ varora@clarussecurities.com Edison C
Slide 122: Revenue Protection Program
CORPORATE PRESENTATION REVENUE PROTECTION PROGRAM Increased certainty of cash flow during construction and debt repayment phases Gold revenue protection program Gold price in US$/oz INSIGHTS 1,600 › Strategy aimed at maximizing cash flow certainty during construction and debt reimbursement phases. ›
Slide 123: Convertible Bond
CORPORATE PRESENTATION CONVERTIBLE BOND Evidence suggests that share prices are not capped by the strike price Share price performance of companies that issued convertible bonds INSIGHTS: 125% › The following graph shows stock price performance of 68 100% convertibles issued by $1-5bn market cap 75%
Slide 124: Selection, Ranking and Risk Evaluation of Targets
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE Selection, Ranking and Risk Evaluation of Exploration targets › All targets referenced and classified according to : ‒ Current state of project knowledge (from grassroot to development) ‒ Quality of supporting data (drilling, available nearby analogs,
Slide 125: Return on Capital Employed
CORPORATE PRESENTATION RETURN ON CAPITAL EMPLOYED Q3-19 with EBIT (US$ '000) 2015 2016 2017 2018 Annualized Equity 597,112 960,661 1,000,621 944,333 921,693 Total Debt 239,001 150,966 340,842 642,629 751,193 Total Capital 836,113 1,111,627 1,341,463 1,586,962 1,672,886 Less: Cash (109,519) (124,294)
Slide 126: Production and Cost Details by Mine (Quarterly)
CORPORATE PRESENTATION PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU ITY CIL ITY HL KARMA HOUNDÉ Unit Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 (on a 100% basis) Total ore tonnes – OP 000t 580 589 481 1,5
Slide 127: Production and Cost Details by Mine (Annual)
CORPORATE PRESENTATION PRODUCTION AND COST DETAILS BY MINE For the year ended December 31, 2019 and 2018 AGBAOU ITY CIL ITY HL KARMA HOUNDÉ Unit FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 (on a 100% basis) Total ore tonnes – OP 000t 2,183 2,399 5,733 - - 1,127 3,
Slide 128: Consolidated Statement of Financial Position
CORPORATE PRESENTATION 128 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at As at Note September 30, December 31, In thousands of US$ 2019 2018 ASSETS Current Cash 120,101 124,022 Trade and other receivables 6 30,480 57,782 Inventories 4 168,205 126,353 Current portion of derivative financial asse
Slide 129: Consolidated Statement of Comprehensive Earnings/Loss
CORPORATE PRESENTATION 129 CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS/LOSS THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, Note 2019 2018 2019 2018 In thousands of US$ Revenues Gold revenue 267,292 155,764 637,973 544,173 Cost of sales Operating expenses (114,599) (86,238) (30
Slide 130: Cash Flow Statement
CORPORATE PRESENTATION 130 CASH FLOW STATEMENT 130
Slide 131: Reserves and Resources
CORPORATE PRESENTATION 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 Rese
Slide 132: Houndé Updated Reserve
CORPORATE PRESENTATION HOUNDE UPDATED RESERVE (as published on June 24, 2019) Kari Pump June 2019 Reserve Classification HOUNDÉ MINE KARI PUMP TOTAL (as at Dec. 31, 2018) (as at June 15, 2019) (Current as at Dec. 31, 2018) Δ GOLD Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content CONT
Endeavour Mining — Investor Presentation (February 2020) on 6ix