Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Q1 2023 Earnings Presentation
55 slides from Endeavour Mining's earnings presentation, May 4, 2023
Slide 1: Q1-2023 Results Presentation
Q1-2023 RESULTS PRESENTATION 4 May 2023
Slide 2: Disclaimer & Forward Looking Statements
DISCLAIMER & FORWARD LOOKING STATEMENTS Some of the indicators used by Endeavour in this presentation represent non-IFRS financial expected, and the results of those studies being consistent with Endeavour’s current expectations; measures, including sustaining capital per ounce, non-sustaining capit
Slide 3: Speakers
SPEAKERS SÉBASTIEN DE MARK GUY JONO MARTINO MONTESSUS MORCOMBE YOUNG LAWRENCE DE CICCIO President and CEO COO CFO EVP Exploration Deputy CFO & Head of IR
Slide 4: Table of Contents
TABLE OF CONTENTS 1 Q1-2023 HIGHLIGHTS 2 FINANCIAL RESULTS 3 OPERATING PERFORMANCE BY MINE 4 CONCLUSION 5 APPENDIX
Slide 5: Q1-2023 Highlights
01 SECTION 1 Q1-2023 HIGHLIGHTS
Slide 6: Q1-2023 Highlights
Q1-2023 HIGHLIGHTS Continuing to deliver against key objectives OPERATIONAL HEALTHY ATTRACTIVE SHAREHOLDER PERFORMANCE FINANCIAL POSITION RETURNS Liquidity remained strong with $810m in On track to meet guidance H2-2022 dividend of $100m paid cash and $285m undrawn on the RCF with 301koz produced at
Slide 7: Safety Performance
SAFETY PERFORMANCE Continued industry-leading safety record LTIFR and hours worked Hours Worked (Millions) LTIFR (12 month Trailing Basis)1 38.8m 39.4m 40.5m 41.5m 43.0m Flat LTIFR Q1-2023 vs Q4-2022 0.15 0.13 0.07 +1.5m 0.02 0.02 Hours worked Q1-2023 vs Q4-2022 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-20
Slide 8: Quarterly Production and AISC
QUARTERLY PRODUCTION AND AISC FY-2023 production expected to be H2-2023 weighted Production and AISC from continuing operations1 Production (koz) AISC (US$/oz) Driven mainly by 42koz lower production at Sabodala- 54koz Massawa vs. Q4-2022 as mining activities focused on waste stripping at the 357koz
Slide 9: Sabodala-Massawa Expansion
SABODALA-MASSAWA EXPANSION INVESTING IN GROWTH PROJECTS On budget and on schedule for first gold in Q2-2024 INSIGHTS BROWNFIELD PROJECT: › Expansion of flagship Sabodala-Massawa mine with a 1.2Mtpa SABODALA-MASSAWA EXPANSION BIOX® plant, designed to process high-grade refractory ore Neutralisation f
Slide 10: Lafigué Greenfield Project
LAFIGUÉ GREENFIELD PROJECT INVESTING IN GROWTH PROJECTS On budget and on track for first gold in Q3-2024 INSIGHTS GREENFIELD PROJECT: › Lafigué greenfield development is a potential cornerstone asset LAFIGUÉ ON FETEKRO PROPERTY with envisaged annual production of 203koz over the 12.8 year Thickener
Slide 11: Unlocking Exploration Value
UNLOCKING EXPLORATION VALUE INVESTING IN EXPLORATION Strong focus on Tanda-Iguela greenfield discovery Q1-2023 Exploration spend Sabodala-Massawa $3.3m Houndé $1.7m Ity $4.6m Mana $1.3m $22m Wahgnion $0.9m Lafigué $0.3m Greenfields $10.1m FY-2023 Exploration guidance Ity 20% Hounde 7% Mana 7% $70m S
Slide 12: Major Greenfield Discovery Made in 2022
MAJOR GREENFIELD DISCOVERY MADE IN 2022 INVESTING IN EXPLORATION Tanda-Iguela has the potential to be another flagship asset INSIGHTS › Maiden resource outlined in <15 months for a discovery cost of <$10 per Indicated ounce › Indicated resource of 14.9Mt at 2.33g/t for 1.1Moz and Inferred resource o
Slide 13: Attractive Shareholder Returns Programme
ATTRACTIVE SHAREHOLDER RETURNS PROGRAMME REWARDING SHAREHOLDERS Targeting a shareholder returns increase following the build phase SHAREHOLDER RETURNS POLICY Progressive Dividend Policy Supplemental Dividend Minimum Dividend Paid Minimum Progressive Dividend $200m › In 2021, Endeavour implemented a
Slide 14: Attractive Shareholder Returns Programme
ATTRACTIVE SHAREHOLDER RETURNS PROGRAMME REWARDING SHAREHOLDERS Buybacks continue to supplement shareholder returns Cumulative shareholder returns Cumulative Buybacks Cumulative Dividend $633m +$ 200/oz Returned for every $233m ounce of gold produced during 2021-2022 $334m 11.1m $134m $400m Shares r
Slide 15: Convertible Senior Notes Settled
CONVERTIBLE SENIOR NOTES SETTLED REWARDING SHAREHOLDERS Protected shareholder dilution by settling face value in cash in Q1-2023 Convertible senior note settlement structure $ 330m Cash settlement of $330m cash payment Issuance of 835k convertible face value 349m to settle face value of common share
Slide 16: Robust Financial Position
ROBUST FINANCIAL POSITION BALANCE SHEET STRENGTH Healthy balance sheet supports shareholder returns and growth Net debt evolution (Net Debt)/ Net Cash 1.03B INVESTMENT DEBT REDUCTION SHAREHOLDER RETURNS PHASE PHASE PHASE WITH ABILITY TO FUND GROWTH $217m $ $167m $75m $76m $121m Available liquidity $
Slide 17: Being a Trusted Partner
BEING A TRUSTED PARTNER BEING A TRUSTED PARTNER Social investment projects are contributing to improved standards of living Launched WoMines, Beach Clean Up an outreach with Plastic programme to Odyssey as part of encourage young plastic awareness women to consider campaign a career in mining Provid
Slide 18: Being a Trusted Partner
BEING A TRUSTED PARTNER BEING A TRUSTED PARTNER Responsibly sourced gold from our Ity mine worn at the Met Gala Trace Michaela’s SMO jewellery to Ity with this QR code 18
Slide 19: London Stock Exchange Listing
LONDON STOCK EXCHANGE LISTING Strong UK liquidity growth following premium LSE listing in Q2-2021 Volume traded on LSE compared to the TSX1 38% 42% 42% 40% ~40% 37% of daily volume FTSE 250 in the UK FTSE ALL SHARE 26% FTSE 34% 23% 100 of shares outstanding in the UK register Q3-2021 Q4-2021 Q1-2022
Slide 20: Financial Results
02 SECTION 2 FINANCIAL RESULTS
Slide 21: Operational & Financial Highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS Operating performance expected to be weighted towards H2-2023 QUARTER ENDED 31 Mar 31 Dec 31 Mar Mar-23 -14% (in $ million unless otherwise stated) 2023 2022 2022 vs. Dec-22 OPERATING DATA Gold production, koz 301 355 357 (15)% Gold sales, koz 309 352 359 (12)% 1 A
Slide 22: Operating Cash Flow Before Working Capital
OPERATING CASH FLOW BEFORE WORKING CAPITAL Continued strong cash flow generation Operating cash flow before working capital from continuing operations Operating cashflow before WC 39m Realised Gold Price1 $368m -$ Operating cash flow $281m before WC $253m Q1-2023 vs. Q4-2022 $242m $195m - 14% Operat
Slide 23: Operating Cash Flow
OPERATING CASH FLOW Cash flows decreased due to lower gold sales and working capital outflows INSIGHTS Operating cash flow bridge 1. The realised gold price for continuing 1 2 operations, excluding the impact of gold hedges, increased by $128/oz from $1,758/oz in Q4-2022 to $1,886/oz in Q1- ∆$40m 20
Slide 24: Change in Net Cash
CHANGE IN NET CASH Low leverage position at quarter end with Net Debt / Adj EBITDA (LTM) <0.1x INSIGHTS Change in net cash 1. For Q1-2023, operating activities included $242m in operating cashflow before changes in working capital and a $37m 1 2 working capital outflow 2. Investing activities includ
Slide 25: Debt Structure
DEBT STRUCTURE Diversified long-term low capital cost debt structure Balance Sheet Structure INSIGHTS 1. During Q1-2023, the Company settled its $330m (in $ million unless stated otherwise) 31 Mar 2023 31 Dec 2022 31 Mar 2022 Convertible Notes at maturity through a combination $370m Cash 810 951 1,0
Slide 26: Adjusted EBITDA
ADJUSTED EBITDA Continued strong adj. EBITDA generation Adjusted EBITDA from continuing operations Operating cashflow before WC EBITDA Margin $279m Realised Gold Price1 $393m Q1-2023 $329m Adjusted $288m $279m EBITDA $256m 57% 3 52% 49% 47% 47% - % $1,891/oz $1,836/oz $1,737/oz $1,758/oz $1,886/oz A
Slide 27: Net Earnings
NET EARNINGS Adjusted EPS increased by $0.02/sh to $0.28/sh in Q1-2023 over Q4-2022 3 MONTHS ENDED INSIGHTS 31 March 31 December, 1. The loss on financial instruments included (in $ million) A = Adjustments made for Adjusted Net Earnings 2023 2022 unrealised losses on gold hedges of $41m, losses on
Slide 28: Operating Performance by Mine
03 SECTION 3 OPERATING PERFORMANCE BY MINE
Slide 29: Production Performance vs Guidance
PRODUCTION PERFORMANCE VS GUIDANCE As guided, performance is expected to be H2-2023 weighted YTD-2023 Production vs Guidance YTD-2023 AISC vs Guidance $840/oz $915/oz 91koz 285koz 300koz Ity Q1 Q1 $732/oz Guidance $850/oz $925/oz 47koz 270koz 285koz Q1 Houndé Q1 Guidance $1,154/oz 44koz $950/oz $1,0
Slide 30: Quarterly Production and AISC
QUARTERLY PRODUCTION AND AISC Variance mainly due to Sabodala-Massawa mine sequence Production and AISC Bridge INSIGHTS AISC Production › Lower production at Sabodala-Massawa due to the mine sequence as waste stripping at the Sabodala pit and the new non-refractory pit at Massawa $954/oz -$115/oz -$
Slide 31: Sabodala-Massawa, Senegal
SABODALA-MASSAWA, SENEGAL Higher grade oxide ore from Delya expected in H2-2023 Q1-2023 vs Q4-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production decreased due to lower processed grades processed in addition to slightly lower recovery rates 103koz and throughput. 96koz 86koz
Slide 32: Sabodala-Massawa, Senegal
SABODALA-MASSAWA, SENEGAL Construction is on track and on budget INSIGHTS BIOX® plant constuction Power plant expansion › Construction of the Sabodala-Massawa BIOX® project was launched in Q2-2022 and remains on budget and schedule for completion in Q2-2024. Engine Hall › $86m of growth capital has
Slide 33: Houndé Mine, Burkina Faso
HOUNDÉ MINE, BURKINA FASO Production expected to be H2-2023 weighted Q1-2023 vs Q4-2022 INSIGHTS Production and AISC › Production decreased due to lower grades processed, which Production, koz AISC, US$/oz was partially offset by higher tonnes milled and increased recoveries. 87koz › Tonnes milled i
Slide 34: Wahgnion, Burkina Faso
WAHGNION, BURKINA FASO Production expected to be H2-2023 weighted Q1-2023 vs Q4-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production increased due to the higher tonnes milled while processed grades and recovery rates remained flat. › Average grade milled remained flat while th
Slide 35: Ity Mine, Côte d'Ivoire
ITY MINE, CÔTE D’IVOIRE Strong quarterly production ahead of the rainy season Q1-2023 vs Q4-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production increased due to higher tonnes of ore milled and improved recovery rates, partially offset by a slight decrease in average grade mil
Slide 36: Boungou Mine, Burkina Faso
BOUNGOU, BURKINA FASO Supply chain challenges impacted mining and processing Q1-2023 vs Q4-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production decreased due to lower tonnes of ore milled at lower average processed grades. › Total tonnes mined decreased as mining activities we
Slide 37: Mana, Burkina Faso
MANA, BURKINA FASO Production expected to be H2-2023 weighted Q1-2023 vs Q4-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production decreased due to lower tonnes milled. › Total tonnes mined increased due to a full period of open pit mining at the Maoula open pit while 53koz 55ko
Slide 38: Lafigue Project in Construction
LAFIGUE PROJECT IN CONSTRUCTION Endeavour’s next cornerstone asset INSIGHTS Primary Crusher construction Substation construction › Construction was launched in early Q4-2022, following completion of a DFS that confirmed Lafigué’s potential to be a cornerstone asset for Endeavour with first gold prod
Slide 39: Conclusion
04 SECTION 4 CONCLUSION
Slide 40: Key Priorities Across the Business
KEY PRIORITIES ACROSS THE BUSINESS Continuing to build a resilient business with disciplined capital allocation On track to meet 2023 production guidance of 1,325 - 1,425koz OUR STRATEGY OPERATIONS at lowest quartile AISC of $940 - $995/oz GROWTH Investing $400m in Sabodala-Massawa and Lafigué growt
Slide 41: Appendix
05 SECTION 5 APPENDIX
Slide 42: Sabodala-Massawa Mine, Senegal
SABODALA-MASSAWA MINE, SENEGAL Focussed on expanding existing resources and discovering new resources Sabodala-Massawa map INSIGHTS › An exploration programme of $15.0m is planned for FY- 2023, of which $3.3m was spent in Q1-2023, consisting of 25,547 meters of drilling across 437 drill holes. Q1-20
Slide 43: Houndé Mine, Burkina Faso
HOUNDÉ MINE, BURKINA FASO Focussed on near mine exploration targets INSIGHTS Houndé map › An exploration programme of $7.0m is planned for FY- 2023, of which $1.7m was spent in Q1-2023 consisting of 6,469 meters of drilling across 41 drill holes. › The exploration programme was focussed on extending
Slide 44: Ity Mine, Côte d'Ivoire
ITY MINE, CÔTE D’IVOIRE Focussed on extending mineralisation at known deposits INSIGHTS Ity map › An exploration programme of $14.0m is planned for FY- 2023, of which $4.6m was spent in Q1-2023 consisting of 28,290 meters of drilling across 272 drill holes. › The exploration programme was focused on
Slide 45: Boungou Mine, Burkina Faso
BOUNGOU MINE, BURKINA FASO Focussed on geological modelling of historic data INSIGHTS Boungou map › An exploration programme of $1.0m is planned for FY- 2023. › Limited spend was incurred in Q1-2023 as the exploration programme focussed on modelling and improving geological interpretations. Q1-2023
Slide 46: Mana, Burkina Faso
MANA, BURKINA FASO Focussed on non-refractory open-pit targets INSIGHTS Mana map › An exploration programme of $5.0m is planned for FY- 2023, of which $1.3m was spent in Q1-2023, consisting of 1,775 meters of drilling across 16 drill holes. › The exploration programme was focussed on identifying and
Slide 47: Wahgnion Mine, Burkina Faso
WAHGNION MINE, BURKINA FASO Exploring for open-pit targets within close proximity to current permits INSIGHTS Wahgnion map › An exploration programme of $4.0m is planned for FY- 2023, of which $0.9m was spent in Q1-2023 consisting of 705 meters of drilling across 11 drill holes. › The exploration pr
Slide 48: Short Term Revenue Protection Programme
SHORT TERM REVENUE PROTECTION PROGRAMME Increased certainty of cash flow to achieve corporate objectives Gold collars INSIGHTS Gold price in US$/oz › In Q1-2023, 30koz were settled under the 2400 gold forward contract at a settlement price of Growth and shareholder return focus $1,828/oz › The reali
Slide 49: Tackling Inflationary Pressures
4 TACKLING 44 INFLATIONARY PRESSURES Leveraging our synergies in West Africa Fuel Average fuel price variance, $/L › Fuel price is regulated by in-country based pricing mechanisms where prices are revised periodically, Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 sheltering Endeavour from peak fuel prici
Slide 50: 2023 Guidance
2023 GUIDANCE INSIGHTS Consolidated Production Guidance 2023 FULL-YEAR 2022 ACTUALS (All amounts in koz, on a 100% basis) GUIDANCE › Production guidance for FY-2023 amounts to 1,325-1,425koz, which marks an increase over Ity 313 285 — 300 the FY-2022 guidance of 1,315-1,400koz Houndé 295 270 — 285 ›
Slide 51: 2023 Guidance (Continued)
2023 GUIDANCE Capital Expenditure Guidance 2023 FULL-YEAR 2022 ACTUALS (Continued) (All amounts in US$m) GUIDANCE Boungou 7 5 Houndé 32 40 Ity 13 25 INSIGHTS Mana 10 25 › Total sustaining and non-sustaining capital expenditure is 40 Sabodala-Massawa 45 expected to remain consistent with that achieve
Slide 52: Mine Statistics
MINE STATISTICS On a quarterly basis (1) Includes waste capitalized. 52
Slide 53: Tax Payments
TAX PAYMENTS THREE MONTHS ENDED Mar 31 Dec 31 Mar 31 In US$ million unless otherwise specified. 2023 2022 2022 Boungou 13.8 - 8.6 Houndé 10.9 9.8 8.8 Ity 1.3 - 0.2 Mana 3.0 2.7 2.8 Sabodala-Massawa 5.6 - 6.0 Wahgnion 1.2 2.3 1.9 Other 3.9 - 0.4 Taxes from continuing operations 39.7 14.8 28.7 53
Slide 54: Continuous Improvement in ESG Ratings
CONTINUOUS IMPROVEMENT IN ESG RATINGS Reflecting increased transparency, disclosure and engagement 2019 2022 2019 23.9 /100 Medium Risk 2022 Relative Performance 2020 2022 2019 2020 2021 Climate D- C C Change Water N/A C C Forestry ✓ ✓ ✓ Defined targets required to advance to a B rating 54
Slide 55: TSX.EDV LSE.EDV
CORPORATE OFFICE 5 Young Street, London W8 5EH, United Kingdom T: +44 203 011 2723 OPERATIONS OFFICE Abidjan Office, Route du Lycée Technique, Abidjan, 08 BP 872 Abidjan 08, Côte d’Ivoire T: +225 27 22 48 99 00 CONTACT US investor@endeavourmining.com Follow us: TSX.EDV endeavourmining.com LSE.EDV 55