Slide 1: May 2012 Corporate Presentation
May 2012 Corporate Presentation
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements This presentation contains “forward-looking statements” including variations in ore reserves, grade or recovery rates; failure of plant, but not limited to, statements with respect to Endeavour’s plans equipment or processes to operate as anticipated; accident
Slide 3: Introducing Endeavour Mining
Introducing Endeavour Mining A GOLD PRODUCER DELIVERING GROWTH 3
Slide 4: Gold Producer With Track Record
Gold Producer With Track Record Nzema, Ghana Operating Mines Youga, Burkina Faso Near-term Production Agbaou, Côte d’Ivoire Nzema Sulphides, Ghana Resource Development Ouarê, Burkina Faso Total Landholding 10,237km2 2011 – 177,290 ozs Production 2012e – 170 to 190,000 ozs Cash Cost per Oz 2011 – $61
Slide 5: Established Gold Production Base
Established Gold Production Base 2010 2011 2012 Production 82,402 ozs 177,290 ozs 170,000-190,000 ozs Cash Margin1 $36 million $91 million2 ~$150 million (@$1,600) 51k 50k 48k 45k Nzema - Actual 34k Nzema - Projected 23k 21k 20k 18k Youga - Actual Youga - Projected Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 6: Assets
Assets A GOLD PRODUCER DELIVERING GROWTH 6
Slide 7: Nzema Gold Mine
Nzema Gold Mine Ghana • 90% Endeavour • 10% Ghana government • Chain of shallow oxide pits along the 9km Salman trend plus the Anwia deposit 8km west • Open pit with significant “free” dig mining • Contract mining • Connected to national power grid • Built on-time and on-budget • Production commence
Slide 8: Nzema Gold Mine
Nzema Gold Mine Ghana Nzema Gold Mine Resources • M&I: 48.329 Mt @ 1.30 g/t for 2.064Moz (incl. of Reserves, • Inferred: 17.725Mt @ 1.1 g/t for 100%) 0.652Moz Reserves (100%) 14.603Mt @ 2.0 g/t for 0.964Moz Strip Ratio 3 to 1 Processing Rate 1.6 to 2.1Mtpa Gravity/CIL plant Met. Recovery Ranging fro
Slide 9: Nzema Gold Mine: Near Mine Upside
Nzema Gold Mine Near Mine Upside • Upside from infill drilling and satellite deposits – Additional satellite oxide deposits along Salman trend and off-trend – Additional satellite deposits around Anwia and Bokrobo (including Nfutu and Aliva) – 21,500m drilled in Q1 of 60,800m budget for 2012 2012 Nz
Slide 10: Nzema Gold Mine: Salman Trend Sulphide Project
Nzema Gold Mine Salman Trend – Sulphide project • Several sulphide ore shoots identified below the principal oxide pits • Initial studies are encouraging: – Conceptual -Trade-off Study by AMEC Minproc – Initial Metallurgical testwork at SGS Australia • Increased 2012 work program from $2.4 million t
Slide 11: Youga Gold Mine
Youga Gold Mine Burkina Faso • 90% Endeavour • 10% Burkina Faso government • In production since mid-2008 • Open pit hard rock and drill & blast • Contract mining • Grid power from Ghana, with diesel backup • Water supply from nearby White Volta river • 87,264 ounces during 2011 at cash cost of $644
Slide 12: Youga Gold Mine
Youga Gold Mine Burkina Faso Youga Gold Mine Youga & Youga Satellites (within 3km) Resources (incl. of • M&I: 18.373Mt @ 1.6g/t for 0.928Moz Reserves, 100%) • Inferred: 4.673Mt @ 1.3g/t for 0.193Moz Reserves (100%) 7.308Mt @ 1.9g/t for 0.448Moz Strip Ratio 4.6 to 1 Met. Recovery 94% Production 2012e
Slide 13: Youga Gold Belt Extension
Youga Gold Belt Extension Ouaré Bitou Permits 3 drill targets 2012 Youga Belt Exploration Program – $11m Zerbogo Permits Youga Mine Permit with 24 targets 2 drill targets 19 drill targets A GOLD PRODUCER DELIVERING GROWTH 13
Slide 14: Youga Near Mine Exploration
Youga Near Mine Exploration • Parallel zones on hanging wall side of A2East resulted in pit expansion • Distinct association with fine pyrite mineralization • 2012 Exploration program: 19 targets within 4km of mill • Down plunge potential of A2Main being tested A GOLD PRODUCER DELIVERING GROWTH 14
Slide 15: Youga Near Mine Exploration Success
Youga Near Mine Exploration Success • Positive results from near mine exploration along the Brassiere Trend at Youga − Brasserie Trend includes the Zergoré deposit and the La Forge, Castel, Beaufort and Flag prospects (all within 4 km of the Youga plant) • Exploration Highlights: − YZRC‐201: 42 m of
Slide 16: Next Mine
Next Mine A GOLD PRODUCER DELIVERING GROWTH 16
Slide 17: Endeavour's Next Mine: Agbaou Gold Project
Endeavour’s Next Mine Agbaou Gold Project • 85% Endeavour / 15% Côte d’Ivoire government • Project parameters: − Open pit with up to1.6Mtpa CIL plant and 92% recovery − Contract mining − Production approx. 100,000 oz pa and 7 year LOM − $6 million exploration program in 2012 − Finalizing / optimizin
Slide 18: Endeavour's Next Mine: Agbaou Gold Project
Endeavour’s Next Mine Agbaou Gold Project • Commencing engagement with communities − Building community office • Progressive buildup of project team in new Abidjan office • Advancing long lead items such as: Contract mining − Crushing and grinding equipment - bids received and in evaluation − Mining
Slide 19: Côte d'Ivoire Agbaou Exploration
Côte d’Ivoire Agbaou Exploration • Gold geochemical anomalies within Agbaou mine permit: – Zego – Niafouta – Agbaou South – Zehiri • Geochemistry, geophysics drilling in 2012 A GOLD PRODUCER DELIVERING GROWTH 19
Slide 20: Other Exploration Assets
Other Exploration Assets A GOLD PRODUCER DELIVERING GROWTH 20
Slide 21: West African Land Position
West African Land Position Exploration West African Birimian and Archean Greenstone • Burkina Faso: 748km2 • Ghana: 963km2 • Côte d’Ivoire: 3,969km2 – Daoukro – Agnibilekrou – Allangoua – Tanda – Permit applications • Mali: 1,449km2 – Mali west – Mali south • Liberia: 3,107km2 West African land posi
Slide 22: Financial Information
Financial Information A GOLD PRODUCER DELIVERING GROWTH 22
Slide 23: Cash Flows from Mine Operations (Quarterly)
Cash Flows from Mine Operations (Quarterly) 40 US$M 35 30 Adjusted to include $8.5 million for March production with cash proceeds received in early April 25 20 $24.4 million of operating cash flow 15 from mine operations 10 5 0 2010 2011 Q1 2012 • Cash flows from mine operations (adjusted) of $32.9
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights Q1/2012 US$ Millions Cash and cash equivalents Beginning balance (Dec 31, 2011) $115.3 Cash flow from mine operations + 24.41 Investments in mine operations and exploration - 23.2 Other net cash flows (corporate costs, etc.) - 5.7 Cash and cash equivalents (March 31, 2012) 1
Slide 25: Focus on Operational Improvements
Focus on Operational Improvements • West African operations center based in Accra • Consolidate mining contractor operations • Consolidate purchase contracts for key consumables • Consolidate and enhance production and financial reporting • Implement common spares policy • Implement cost reduction p
Slide 26: Summary
Summary
Slide 27: Growth Objectives
Growth Objectives • Production of +250,000 oz pa by Q1 2014 including Agbaou • Extensive West African exploration – Extend Nzema, Youga and Agbaou mine lives – Advance organic project pipeline – $34 million 2012 budget includes +215,000m of drilling • 80% near mine – direct conversion to reserves •
Slide 28: Investment Case
Investment Case • Established gold producer with two mines in Ghana & Burkina Faso – 170,000 – 190,000 oz in 2012 • Côte d’Ivoire project nearing construction – Additional 100,000 oz pa • Upside potential at all our operations and a strong growth profile with exploration to – Replace and increase re
Slide 29: Company Profile
Company Profile Share Price Balance Sheet CDN$2.05 Cash & Marketable Securities (March 31, 2012) $128m Recent Share Price Includes $100m drawn of the $200m credit facility AUD$2.10 Market Cap. (basic) $500m Cash Margin, 2012e (at $1,600/oz gold price) $150m Capitalisation Summary (March 31, 2012) An
Slide 30: Management Team
Management Team Michael Beckett Neil Woodyer Mark Connelly Christian Milau Non Exec Chairman CEO COO CFO • Significant mining knowledge • Founder of Endeavour, over • Former CEO of Adamus • CA and US Certified Public 30 years experience in natural Resources – designed and Accountant • Served on Boar
Slide 31: Appendices
Appendices • Capital Structure • Nzema Gold Hedge Profile • Board of Directors • Community Partnerships • Resources and Reserves • West African Land Position • Exploration Pipeline • Mali - Regional Exploration • Liberia - Regional Exploration
Slide 32: Share Capital as of March 31, 2012
Appendix Share Capital as of March 31, 2012 Issued Shares 245,041,769 Options Strike price Strike Price Range (CDN$) Average (CDN$) 0.01 1.94 1.92 7,650,890 2.04 2.47 2.45 613,480 2.64 2.95 2.67 8,100,000 4.94 8.48 7.20 10,252 10.00 44.96 15.57 707,836 Warrants Symbol Expiry Strike price EDV.WT.A Fe
Slide 33: Nzema Gold Hedge Profile
Appendix Nzema Gold Hedge Profile Nzema Annualized Hedge Book Profile* Year Strike Price Hedged Ozs 2012 $1,061.75 10,000 2013 $1,061.75 10,000 2014 $1,061.75 32,000 2015 $1,061.75 32,000 2016 $1,061.75 32,000 Total 116,000 *Actual hedge deliveries are on quarterly basis A GOLD PRODUCER DELIVERING G
Slide 34: Board of Directors
Appendix Board of Directors Neil Woodyer Mark Connelly Michael Beckett Jorge L. Gamarci CEO COO Non Exec Chairman Private investor, 30 plus year Founded Endeavour Mining Former Managing Director / CEO Former chair of Ashanti banking career, including in 1988. Over 30 years of of Adamus where he led
Slide 35: Community Partnership
Appendix Community Partnership • Committed to conservation and developing our workforce through continuous training and promotion of nationals to senior management positions • Committed to strong and pragmatic relationships with local communities, regional and national government • Youga, Burkina Fa
Slide 36: Resources December 2011
Appendix Resources 31 December 2011 Mineral Resources including Reserves, at a 0.5g/t cut-off as of 31 December 2011 Deposit Measured Indicated Measured & Indicated Inferred kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs Nzema1,2,3,4 – Total 31,658 1.4 1,409 16,671 1.2 656 4
Slide 37: Reserves December 2011
Appendix Reserves 31 December 2011 Mineral Reserves as of 31 December 2011 Deposit Proven Probable Total Gold Price kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs US$/oz Nzema1,2,3,4 – Total 11,938 2.0 770 2,664 2.3 193 14,603 2.0 964 900 Attributable – 90% - - 693 - - 174 - - 867 - Youga5 2,
Slide 38: Resources & Reserves Notes
Appendix Resources & Reserves Notes 1 Technical Report Southern Ashanti Gold Project, Ghana, West Africa effective 6 Youga Satellite Deposits, Internal Resource Estimates, prepared by AMEC August 17, 2009, prepared by Ron Heeks (M.AusIMM), Technical Manager under supervision of K. Woodman Internal R
Slide 39: West African Land Position
West African Land Position Landholding area map (km2) Third largest landholding in West Africa totalling 10,237km² Source: Old Park Lane Capital Company reports NB/incl all exploration +mining licences reported A GOLD PRODUCER DELIVERING GROWTH 39
Slide 40: Project Pipeline
Appendix Project Pipeline 2012 budget of $34 million, including +215,000m of drilling Upside Potential Attributable Resources (M&I&I) Property Size (km2) Early Exploration Drilling/Studies Development Production A GOLD PRODUCER DELIVERING GROWTH 40
Slide 41: Mali Regional Exploration
Mali Regional Exploration Properties in western Mali along Senegalo-Malian Shear Properties in southern Mali along Syama Shear Zone (and in neighbouring Côte d’Ivoire) • Properties in western Mali cover a 17 km portion of the Senegalo-Malian Fault • Properties in southern Mali cover 22 km of the Sya
Slide 42: Liberia Regional Exploration
Liberia Regional Exploration Ground selection criteria • Archean greenstone belts • Proximity to existing resources • Artisanal mining activity • Amphibolite, Quartzite, Iron formation A GOLD PRODUCER DELIVERING GROWTH 42
Slide 43: Neil Woodyer, Chief Executive Officer, Mark Connelly
Neil Woodyer Chief Executive Officer nwoodyer@endeavourmining.com +377 97 98 71 30 Mark Connelly Chief Operating Officer mconnelly@endeavourmining.com +618 9322 5943 David Laing Senior Vice President – Technical Services dlaing@endeavourmining.com +1 604 685 4554 A GOLD PRODUCER DELIVERING GROWTH 43