Slide 1: Operational & Financial Results Q2
Q1 OPERATIONAL Q2 & FINANCIAL RESULTS Q3 › August 01, 2018 Q4
Slide 2: Disclaimer & Forward Looking Statements
Q2-2018 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 respect t
Slide 3: Speakers and Table of Contents
SPEAKERS TABLE OF CONTENTS SÉBASTIEN DE MONTESSUS Chief Executive Officer, President & Director 1 Q2 & H1-2018 IN REVIEW JEREMY LANGFORD Chief Operating Officer 2 FINANCIAL SUMMARY DETAILS BY MINE AND VINCENT BENOIT 3 PROJECT EVP – CFO and Corporate Development 4 CONCLUSION PATRICK BOUISSET EVP – Ex
Slide 4: H1-2018 Activities Recap
Q2-2018 RESULTS H1-2018 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 is ✓ Over 292,700 meters drilled ✓ Strong liqu
Slide 5: Strong Safety Record
Q2-2018 RESULTS STRONG SAFETY RECORD Our safety record remained better than the industry average in H1-2018 Lost Time Injury Frequency Rate 0.80 0 Q2-2018 Lost Time Injury Frequency Rate 0.40 0.29 0.22 0.00 0.00 0.00 +3.1m Peer Group FY2016 FY2017 H1 2018 Houndé Agbaou Ity Man Hours with no Average
Slide 6: H1-2018 Performance In-Line with Guidance
Q2-2018 RESULTS H1-2018 PERFORMANCE IN-LINE WITH GUIDANCE On-track to meet 2018 guidance Q2 Q1 BELOW GROUP LTIFR1 INDUSTRY 0.00 0.46 0.80 Industry Average GROUP PRODUCTION H1 ON-TRACK INCLUDING TABAKOTO 358koz 670-720koz Guidance GROUP $840/oz $890/oz AISC INCLUDING H1 ON-TRACK TABAKOTO $825/oz Guid
Slide 7: Tabakoto Strategic Assessment
Q2-2018 RESULTS TABAKOTO STRATEGIC ASSESMENT Deemed non-core and sales process has been initiated INSIGHTS PORTFOLIO MANAGEMENT › The strategic assessment completed Non-Core Asset Portfolio AISC, $/oz in Q2 demonstrated the potential to $1,200 reduce the mine’s AISC mainly Tabakoto $1,150 (held-for-
Slide 8: Production Well On-Track to Meet Guidance
Q2-2018 RESULTS PRODUCTION WELL ON-TRACK TO MEET GUIDANCE Benefit of Houndé production reflected in lower AISC Group Production (koz) and AISC (US$/oz) AISC including discontinued operations unless indicated otherwise Production from continuing operations 204koz 185koz +75% 173koz Q2-18 vs. Q2-17 Pr
Slide 9: Significant Reduction in AISC
Q2-2018 RESULTS SIGNIFICANT REDUCTION IN AISC Portfolio management and project development efforts have lowered AISC AISC variation between H1-2017 and H1-2018 In US$/oz Portfolio management efforts $900/oz Project development efforts ($35/oz) Nzema ($41/oz) $824/oz sold Tabakoto declassified ($92/o
Slide 10: All-in Margin Significantly Increased Over 2017
Q2-2018 RESULTS ALL-IN MARGIN SIGNIFICANTLY INCREASED OVER 2017 Strong increase due to Houndé All-in Margin, in US$m Includes Discontinued Operations $162m +81% Realized Gold Price $149m $116m H1-18 vs. H1-17 $85m +81% $35m $64m in H1 +$52m $1,176/oz H1-18 vs. H1-17 $1,264/oz $1,157/oz $1,219/oz $1,
Slide 11: Ity CIL Project Construction
Q2-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Overall project completion stands at over 50%, tracking well against schedule ACHIEVEMENTS TO DATE Capex spend and remaining cash outflow › More than 3.1 million man-hours worked with zero loss-time injuries. › Over 85% of the total capital cost of $412 m
Slide 12: Ity CIL Project Construction
Q2-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Construction is progressing on-time and on-budget Process Plant – Northern Perspective Process Plant- Milling Structural Steel Primary Crusher Haul Bridge – Northern Perspective 12
Slide 13: Ity CIL Project Construction
Q2-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Overall project completion stands at over 50%, tracking in-line with the project schedule 2017 2018 2019 Activity Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EARTHWORKS & TSF Camp earthworks Bridge crossing TSF complete complete complete CAMP CONSTRUCTION Camp started Adm
Slide 14: Q2 Exploration Activities
Q2-2018 RESULTS Q2 EXPLORATION ACTIVITIES Continued strong focus on exploration activities INSIGHTS EXPLORATION EXPENDITURE FOR H1-2018 › $16.1m spent in Q2, totaling $36m for H1 Other › Over 292,700 meters drilled across the group in H1 greenfield ‒ At Houndé: 121,000m drilled on the recently $5.0m
Slide 15: Financial Summary
Q2-2018 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 16: Production Bridge
Q2-2018 RESULTS PRODUCTION BRIDGE Houndé more than offset sale of Nzema and expected declines at Agbaou and Tabakoto Production Bridge H1-2017 to H1-2018 INSIGHTS Change in AISC 311koz › Production from continuing operations 299koz significantly increased due to the addition of the Houndé mine and a
Slide 17: All-in Margin Breakdown
Q2-2018 RESULTS ALL-IN MARGIN BREAKDOWN All-in margin increased by 81% due to successful start-up of Houndé HALF YEAR ENDED, Q2-2018 INSIGHTS JUN. 30, JUN. 30, 1. Gold sales up mainly due to the successful (in US$ million) 2018 2017 start-up of Houndé. GOLD SOLD FROM CONTINUING OPERATIONS, koz 1 305
Slide 18: Growth Funding Sources
Q2-2018 RESULTS GROWTH FUNDING SOURCES Cash flow from operations and RCF used to fund growth HALF YEAR ENDED, JUN. 30, JUN. 30, Q2-18 INSIGHTS (in US$ million) 2018 2017 1. The working capital variation outflow ALL-IN MARGIN FROM ALL OPERATIONS 116 64 increased as a result of: (55) (23) ‒ an increas
Slide 19: Strong Increase in Cash Flow per Share
Q2-2018 RESULTS STRONG INCREASE IN CASH FLOW PER SHARE Significant improvement in portfolio asset quality Operating Cash Flow, $/share Before Non-Cash Working Capital +35% $1.52/share H1-18 vs. H1-17 $1.13/share $1.01/share +$0.39 H1-18 vs. H1-17 H1-2016 H1-2017 H1-2018 19
Slide 20: Significant Funding Sources to Fund Growth
Q2-2018 RESULTS SIGNIFICANT FUNDING SOURCES TO FUND GROWTH Balance sheet remains strong despite growth project capex spend Circa $30m Fully funded without mine cash flow $339m Up to $25m Undrawn RCF $260m Ity capex (cash outflow and equipment $201m financing remaining ) Cash $79m Liquidity Sources N
Slide 21: Cash Variation Analysis
Q2-2018 RESULTS CASH VARIATION ANALYSIS Operating activities covered nearly half of investment activities Net Cash Variation Analysis OPERATING ACTIVITIES › Includes negative $55m of negative working capital variation. INVESTING ACTIVITIES $108m › Includes $163 million of growth project capital. › I
Slide 22: Net Earnings Breakdown
Q2-2018 RESULTS NET EARNINGS BREAKDOWN Adjusted EPS of $0.31 HALF YEAR ENDED A = Adjustments made JUN. 30, JUN. 30, INSIGHTS (in US$ million) 2018 2017 GOLD REVENUE 388 205 › H1-2018 adjusted net earnings Operating expenses (176) (106) per share from continuing Depreciation and depletion (83) (41) o
Slide 23: Details by Mine and Project
Q2-2018 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 24: Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Strong contribution to group performance Q2-18 vs Q1-18 INSIGHTS: Production and AISC › Production decreased mainly due to an expected Production, koz AISC, US$/oz decrease in the average head grade fed to the plant. However, the operation continue
Slide 25: Agbaou Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Production is expected to increase in the latter portion of the year Q2-18 vs Q1-18 INSIGHTS: Production and AISC › Production slightly increased due to the higher Production, koz AISC, US$/oz grades of material milled as low-grade stockpiles cont
Slide 26: Ity Heap Leach Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT ITY HEAP LEACH MINE, CÔTE D’IVOIRE Production increased due to higher Bakatouo grades stacked Q2-18 vs Q1-18 INSIGHTS: › Production increased significantly due to higher Production and AISC grades stacked as mining activities at Bakatouo has Production, koz AISC, US$/oz pro
Slide 27: Karma Mine, Burkina Faso
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Stronger H2-2018 expected following end of GG2 transitional ore in Q2 Q2-18 vs Q1-18 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production decreased due to lower stacked tonnage despite an increase in grades and 28koz recovery rate
Slide 28: Tabakoto Mine, Mali
DETAILS BY MINE & PROJECT TABAKOTO MINE, MALI H2 expected to benefit from increased underground equipment availability Q2-18 VS Q1-18 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production decreased mainly due to lower average head grades and slightly lower throughput and recovery r
Slide 29: Kalana Project, Mali
DETAILS BY MINE & PROJECT KALANA PROJECT, MALI Updated resource expected in Q3-2018 Several Licenses under negociation With Private INSIGHTS owners › An intensive exploration program, consisting of 48,000 meters of drilling, was finalized in early Q2-2018 on the Kalana and Kalanako deposits. › At th
Slide 30: Conclusion
Q2-2018 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 31: Upcoming Catalysts
CONCLUSION UPCOMING CATALYSTS ON TRACK TO MEET GUIDANCE › Guidance with Tabakoto: 670-720koz at $840-890/oz Immediate › Guidance without Tabakoto: 555-590koz at $760-810/oz Cashflow from Production › ITY CIL PROJECT: Construction tracking on-budget and on schedule for first gold pour by mid-2019 Nea
Slide 32: Conclusion: Production and AISC Profile
CONCLUSION PRODUCTION AND AISC PROFILE On track to achieving strategic objectives STRATEGIC OBJECTIVES $1,317/oz For 2019 +900koz +900koz 800-900koz 10+ year $1,010/oz $922/oz $869/oz 670-720koz 800-900koz Mine life 663koz $869/oz 584koz $840-890/oz 517koz 462koz ≤800$/oz 317koz All-in Sustaining Co
Slide 33: Appendix
Q2-2018 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 34: Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Strong exploration focus in 2018 on high-grade targets Houndé exploration targets and gold-in-soil anomalies map INSIGHTS › Houndé is the strongest exploration focus for Endeavour in 2018 with more than 121,000 meters already drilled in H1-2018, ma
Slide 35: 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 › In H1-2018 more than 26,000 meters were drilled with the majority occurring in Q2. › A total of more than 20,000 meters, representing most of the drillin
Slide 36: Ity Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT ITY MINE, CÔTE D’IVOIRE Main focus is on the La Plaque discovery Ity Mine Drilling Targets INSIGHTS › A $3 million exploration campaign has been planned in 2018 to further explore near-mill targets (including testing of extensions at the Mont Ity, Bakatouo, Daapleu, and Le
Slide 37: Karma Mine, Burkina Faso
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Rambo West indicated resources expected to be delineated by year-end Karma Site Map INSIGHTS › In H1-2018, more than 23,000 meters were drilled, mainly focused on the Eastern extension of the North Kao deposit, on Yabonsgo and on Rambo West where in
Slide 38: Tabakoto Mine, Mali
DETAILS BY MINE & PROJECT TABAKOTO MINE, MALI Exploration mainly focused on underground exploration INSIGHTS Tabakoto Site Map › During H1-2018 nearly 5,000 meters were drilled on open pit targets while more than 13,000 meters were drilled in the underground mines. › For H2-2018, a further 12,000 me
Slide 39: Production and Cost Details by Mine by Quarter
APPENDIX PRODUCTION AND COST DETAILS BY MINE BY QUARTER AGBAOU TABAKOTO ITY KARMA HOUNDÉ (on a 100% basis) Unit Q2-2018 Q1-2018 Q4-2017 Q2-2018 Q1-2018 Q4-2017 Q2-2018 Q1-2018 Q4-2017 Q2-2018 Q1-2018 Q4-2017 Q2-2018 Q1-2018 Q4-2017 Physicals Total tonnes mined – OP1 000t 7,801 7,952 6,952 1,296 1,84
Slide 40: Production and Cost Details by Mine on Half Year Basis
APPENDIX PRODUCTION AND COST DETAILS BY MINE ON HALF YEAR BASIS AGBAOU TABAKOTO ITY KARMA HOUNDÉ (on a 100% basis) Unit H1-2018 H1-2017 H1-2018 H1-2017 H1-2018 H1-2017 H1-2018 H1-2017 H1-2018 H1-2017 Physicals Total tonnes mined – OP1 000t 15,753 13,308 3,136 3,438 2,667 3,777 8,750 7,959 19,670 - T