Slide 1: Endeavour Mining Management Presentation
Endeavour Mining Management Presentation Results for the Quarter ended March 31, 2015 Webcast Presentation for May 4, 2015 INTERMEDIATE GOLD PRODUCER DELIVERING PROFITABILITY
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce rates, increases in market prices of mining consumables, possible are non-GAAP performance measures with no standard meaning variations in ore reserves, grade or recovery rates; failure of under IFR
Slide 3: Introduction
Introduction Neil Woodyer CEO Attie Roux Ota Hally COO CFO Amounts expressed in US$, unless otherwise indicated INTERMEDIATE GOLD PRODUCER DELIVERING PROFITABILITY 3
Slide 4: Q1 2015 Highlights
Q1 2015 Highlights • Endeavour’s operations performed well in Q1 2015: – Production of 124,000 ozs – positioned to deliver full year production of 475k-500k ozs – Q1 2015 AISC of $946/oz1 • Below mid-point for 2015 AISC guidance ($930/oz - $980/oz) • Significant AISC/oz improvement at Tabakoto to $1
Slide 5: Reducing Debt
Reducing Debt • In March 2015, the corporate revolving credit facility was renewed and extended – 5 year maturity in March 2020 – Increased flexibility as no mandatory payments for 3 1/2 years • 2015 objective to reduce debt from cash flow – $20 million principal payment made on April 30 – Based on
Slide 6: Q1 2015 Highlights
Q1 2015 Highlights Q1 2015 Agbaou Nzema Tabakoto Youga 2015 Guidance Total / Avg Gold produced (oz) 45,323 26,979 33,574 17,868 123,744 475,000 – 500,000 Cash cost / oz $406 $986 $935 $785 $732 AISC / oz $577 $1,194 $1,127 $851 $9461 $930 - $980 1 Includes corporate costs and sustaining exploration
Slide 7: Q1 2015 All-in Sustaining Margin and AISC
Q1 2015 All-in Sustaining Margin and AISC Three months ended March 31, 2015 US$ M In Gold Ozs AISC $/oz Gold revenue $152.1 124,850 Less: Royalties 7.2 5,945 $58 Less: Cash costs for ounces sold 91.4 75,007 732 Mine cash margin 53.5 43,898 Less: Corporate G&A 4.0 3,284 32 Less: Sustaining capital 14
Slide 8: Q1 2015 Reconciliation of Cash Position
Q1 2015 Reconciliation of Cash Position 3 months ended March 31, 2015 US$ M Cash - Opening balance (December 31, 2014) $62.2 All-in sustaining margin 33.9 Non-sustaining investments - Tabakoto, Nzema & Agbaou -8.3 Non-sustaining project capital - Houndé -1.1 Change in working capital and other -7.9
Slide 9: Operating Summary – Agbaou Gold Mine, Côte d'Ivoire
Operating Summary – Agbaou Gold Mine, Côte d’Ivoire Q1 2015 3 months Tonnes of ore milled 582,000 t Average gold grade milled 2.46 g/t Gold ounces produced 45,323 ozs Gold ounces sold 45,538 ozs Cash cost $406/oz Mine-level AISC $577/oz • The soft nature of the oxide ore continued in Q1 2015 and all
Slide 10: Operating Summary – Nzema Gold Mine, Ghana
Operating Summary – Nzema Gold Mine, Ghana Q1 2015 3 months Tonnes of ore milled 406,000 t Average gold grade milled 2.40 g/t Gold ounces produced 26,979 ozs Gold ounces sold 27,078 ozs Cash cost $986/oz Mine-level AISC $1,194/oz • Nzema experienced a challenging quarter which included: • Throughput
Slide 11: Operating Summary – Tabakoto Gold Mine, Mali
Operating Summary – Tabakoto Gold Mine, Mali Q1 2015 3 months Tonnes of ore milled 389,000 Average gold grade milled 2.87 g/t Gold ounces produced 33,574 ozs Gold ounces sold 34,441 ozs Cash cost $935/oz Mine-level AISC $1,127/oz • Significant improvement in AISC/oz (down 18% from $1,373 in Q4 2014)
Slide 12: Operating Summary – Youga Gold Mine, Burkina Faso
Operating Summary – Youga Gold Mine, Burkina Faso Q1 2015 3 months Tonnes of ore milled 247,000 Average gold grade milled 2.40 g/t Gold ounces produced 17,868 ozs Gold ounces sold 17,793 ozs Cash cost $785/oz Mine-level AISC $851/oz • Solid quarter of gold production at AISC of $851/oz • Preparation
Slide 13: Developing the Houndé Project
Developing the Houndé Project • Received mining permit in Feb 2015, Peer Projects – Project Status, Reserves/Resources and Project IRRs at $1,300 ESIA completed in 2014 • 34% increase in reserves in Dec 2014 • Updated mine plan and economics: – 2P Reserve* of 2.1 million ozs at 2.1 g/t Houndé ranks
Slide 14: Concluding Comments
Concluding Comments • 5 key objectives for 2015: – Produce 475,000 to 500,000 ounces Q1 2015 production of 124,000 ounces – Maintain AISC/oz in mid-$900s (guidance range is $930 to $980/oz) Q1 2015 AISC of $946/oz – To be profitable Q1 2015 net income of $13 million – Use free cash flow to red
Slide 15: Questions?
Questions? Neil Woodyer CEO Attie Roux Ota Hally COO CFO For additional information, please contact: Doug Reddy on +1 604 609 6114 dreddy@endeavourmining.com Adriaan “Attie” Roux, Pr.Sci.Nat, Endeavour’s Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved th
Slide 16: Appendix: Q1 2015 Cash Cost Detail by Mine
Appendix: Q1 2015 Cash Cost Detail by Mine Agbaou Nzema Tabakoto Youga Total Mining Physicals Total tonnes mined - Open pit 000t 5,219 2,934 2,300 1,819 Total ore tonnes - Open pit 000t 594 391 107 293 Total ore tonnes - Underground 000t - - 278 - Total tonnes milled 000t 582 406 389 247 Gold sold o