Slide 1: Endeavour Mining Q1 2016 Results
TSX:EDV May 3rd 2016 Endeavour Mining Q1 2016 Results 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: Q1 2016 Results Speakers
Q1 2016 Results Speakers: Neil Woodyer Chief Executive Officer & Director Ota Hally Chief Financial Officer Sébastien de Montessus Vincent Benoit President & Director EVP – Strategy and Business Development Adriaan "Attie" Roux Chief Operating Officer CREATING A PREMIER AFRICAN GOLD PRODUCER 2
Slide 4: Q1-2016 performance in line with full year guidance
Q1-2016 performance 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 line with guidan
Slide 5: Other key strategic achievements for the year to date
Other key strategic achievements for the year to date Divestment of end of life Youga mine for US$20m, closed on Feb 29 Houndé project fully funded and with construction launched in April Expected to become Endeavour’s flagship low cost mine Revised 2016 True Gold Acquisition closed on April
Slide 6: Share Price Re-Rating + True Gold Acquisition = C$1.3 Market Cap
Share Price Re-Rating + True Gold Acquisition = C$1.3 Market Cap $/share 18 Capitalization Summary (April 29, 2016) Shares in Issue 84.4 million 16 Options 4.0 million Fully Diluted 88.4 million 14 Market Capitalization 12 C$1.35 billion 10 8 6 C$652m C$450m 4 C$244m C$256m C$227m 2 1/1/2015 4/1/201
Slide 7: 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 8: 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 $1,137 Youga 851
Slide 9: Cash Flow generation is on track to meet guidance…
Cash Flow generation is on track to meet guidance… Q1-2016 Q4-2015 US$m US$/oz US$m US$/oz Gold revenue 151 1,192 157 1,102 Royalties (7) (54) (8) (53) Cash cost for ounces sold (90) (709) (105) (740) Cost G&A (5) (38) (8) (56) Sustaining Capital (11) (87) (10) (70) Sustaining Exploration (1) (12) (
Slide 10: …with some phasing on working capital changes in Q1-2016
…with some phasing on working capital changes in Q1- 2016 In US$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 11: Continued Reduction in Net Debt
Continued Reduction in Net Debt Cash Position Variation Insights: $182m US$65 million cash injection received from La Mancha in April following the True Gold transaction +65 $117m close $110m +20 (15) +3 $40 million voluntary repayment made under the revolving corporate facility, after the quart
Slide 12: Liquidity position is improving to secure Houndé financing
As expected liquidity position is improving to secure Houndé financing Pro-Forma cash position of US$ 182m + 2016 – 2017 Liquidity position at the end of March of US$ 342m Free Cash Flow $342m $328m 50 110 182 Pro-forma March Undrawn RCF Houndé Mine Total Liquidity & Houndé Total Capex 31/16 Cas
Slide 13: Mine by Mine Details
Mine by Mine Details INTERMEDIATE GOLD PRODUCER DELIVERING PROFITABILITY
Slide 14: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Insights: • Strong performance in Q1-2016 with a normal production Côte d’Ivoire level after record production in Q4-2015 Ity Mine • Mining operations performing on-track with mine plan Agbaou Mine • Record AISC in Q1-2016 mainly due to renegotiation of Abidjan mining con
Slide 15: Tabakoto Mine – Mali
Tabakoto Mine – Mali Insights: • Stable production compared to previous quarters despite Mali lower UG grade and volume due to lack of stope availability • UG grade and volumes improving in early Q2 with underground development done in Q1 Tabakoto Mine • $99/oz reduction in cash cost compared to pre
Slide 16: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Insights: Côte d’Ivoire • Ity mine integration progressed well in Q1-2016 Ity Mine • Good performance with production slightly above Agbaou Mine guidance Abidjan • AISC below guidance due to improved cost control • Exploration potential highlighted to extend the heap leach m
Slide 17: Nzema Mine – Ghana
Nzema Mine – Ghana Insights: • Production impacted by lower volumes of purchased ore, as Ghana purchased ore suppliers are ramping-up operations following the halt experienced in late 2015 due to new permitting requirements imposed on them Nzema Accra • Lower grade stockpiles utilized during quarter
Slide 18: Medium-term Milestones Strategic Conclusion
Conclusion Medium-term ~ 900 koz < 800$/oz 10+ year Milestones YEARLY PRODUCTION ALL IN CASH COST MINE LIFE IN OUR CORE ASSETS Strategic Current Gold Production Profile (100%) and AISC (Mine-Level, US$/oz) Levers 1,000 $1,137 +900koz $1,200 900 $1,100 800 Operational $1,010 $1,000 Excellence 700 $92
Slide 19: Appendix
® ENDEAVOUR MINING Appendix 18
Slide 20: Production and Cost Details by Mine
Production and Cost Details by Mine Agbaou Nzema Tabakoto Youga Ity Unit Q1-2016 Q4-2015 Q1-2015 Q1-2016 Q4-2015 Q1-2015 Q1-2016 Q4-2015 Q1-2015 Q1-2016 Q4-2015 Q1-2015 Q1-2016 Q4-2015 Q1-2015 Physicals Total tonnes mined – OP 000t 6,071 4,924 5,219 1,710 1,341 2,933 3,271 2,423 2,308 1,145 1,777 1,
Slide 21: 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 22: 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 23: 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