Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (April 2018)
82 slides from Endeavour Mining's investor presentation, April 2018
Slide 1: Corporate Presentation April 2018
CORPORATE PRESENTATION › April 2018
Slide 2: Disclaimer & Forward Looking Statements
CORPORATE PRESENTATION 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 re
Slide 3: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 FULL YEAR 2017 RESULTS & 2018 OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
Slide 4: Endeavour Mining Overview
CORPORATE PRESENTATION ENDEAVOUR MINING OVERVIEW A premier African gold producer with a strong presence in West- Africa SENEGAL MALI Tabakoto Mine Karma GAMBIA Mine BURKINA FAS 4,000 GUINE Bamako Ouagadougou EMPLOYEES WORLDWIDE A- BISSA Kalana GUINEA Project Houndé U Mine CÔTE SIERRA D’IVOIR 670-720
Slide 5: Company Profile
CORPORATE PRESENTATION COMPANY PROFILE Shareholder Distribution Ticker TSX:EDV Shares Outstanding as at Mar. 31st 108 m RETAIL LA MANCHA MANAGEMEN INSTITUTION Share price as at Apr. 6 th C$22.91 T AL Europe Market cap as at Apr. 6 tth US$1.9B Net Debt as at Dec. 31 st US$232m Other North America 5%
Slide 6: Investment Highlights
CORPORATE PRESENTATION INVESTMENT HIGHLIGHTS Exposure to near & long-term growth potential, in addition to current production Daoukro Cluster (Ivory Coast) Kofi Trend Floleu (Ivory Coast – Ity (Mali) trend) Bondoukou Cluster (Ivory Coast) Hounde Taba (completed) Hounde koto Sissedougou JV ma Nze d )
Slide 7: Production and AISC Profile
CORPORATE PRESENTATION PRODUCTION AND AISC PROFILE Key objective is to reduce the group’s AISC and extending mine lives STRATEGIC $1,317/oz For 2019 +900koz+900koz OBJECTIVE +800koz 800-900koz $1,010/oz 800-900koz $922/oz 670-720koz Annual production $869/oz 663koz $869/oz 584koz $840-890/oz 517koz
Slide 8: Building a Premier African Gold Producer
CORPORATE PRESENTATION BUILDING A PREMIER AFRICAN GOLD PRODUCER 4 Strategic Levers to Achieve Objectives STRATEGIC STRATEGIC LEVERS For 2019 OBJECTIVE +800koz Annual production 10+ year Mine life ≤800$/oz All-in Sustaining Cost 8
Slide 9: Operational Excellence
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Hands-on Management Model With Teams Close to Operations London Based Sebastien de Montessus CEO & Director SENEGAL MALI 2h40 Vincent Benoit Tabakoto Mine Karma GAMBIA Mine EVP CFO & Corporate 3h10 Development BURKINA FASO GUINE Houndé Morgan Carroll B
Slide 10: Operational Excellence: Safety Record
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Continued to improve our safety record in 2017 Lost Time Injury Frequency Rate 0.80 0.29 2017 Lost Time Injury Frequency Rate 0.40 Both Agb aou and Houn 0.29 dé built with no LTIs 0.00 0.00 +7.0 Peer Group Average FY20 16 FY20 17 Hound é Agbao u m Oper
Slide 11: Operational Excellence: Track Record of Meeting Guidance
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Proven track record of meeting guidance Production, on a 100% basis in koz All-in Sustaining Costs, in $/oz Guidanc Guidan e ce 1,010 663 670-720 584 466 517 922 884 840-890 869 201 201 201 201 2018 201 201 201 2017 2018 4 5 6 7 Guidance 4 5 6 Prelimin
Slide 12: Project Development
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Adding +600koz at an average AISC of <$700/oz over the next 3 years HOUNDÉ Houndé +235koz at AISC of <$650/oz (Completed ) ITY CIL +235koz at AISC Ity CIL Construction (Underway) of <$500/oz KALANA DFS Optimization +150koz at AISC Construction (Underway)
Slide 13: Houndé New Flagship Low Cost Mine
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Houndé became Endeavour’s new flagship low cost mine Essaka ne Inata (IAMGOLD) Tapark Built ahead of schedule and below (Avocet ) o Karm budget a (Nordgold Bissa Hill ) (Nordgold) › Commercial production declared Nov 1, Natougou 2017, 2 months ahead of sc
Slide 14: Ity CIL Project Construction Launched
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Ity CIL Project construction launched in September 2017 Long-life Low Cost Project › Long 14-year reserves mine life › Low AISC of $494/oz over first 5 years › Solid production of 235kozpa over Production Profile first 5 years Production AISC Robust Proje
Slide 15: Kalana High-Quality Project
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Kalana is a high-quality project with significant optimization potential Feasibility-stage project › 1.2Mtpa CIL plant › Single open-pit reserve of 1.96Moz Mali at 2.8 g/t › 18-year mine life Tabakoto Mine › Low AISC cost operation with Bamako Kalana $730
Slide 16: Unlock Exploration Value
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Amongst Largest and Most Promising Portfolios in West Africa 10,090 km² EXPLORATION TENEMENTS +200 EXPLORATION TARGETS 10-15Moz 14.9Moz 5-YEAR DISCOVERY M&I RESOURCES TARGET 16
Slide 17: Screening and Ranking Methodology
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Screening And Ranking Methodology Exhaustive Strategic screening of all >200 potential Prioritizatio targets n CONSERVATIVE First filterin APPROACH Exploration g SIMILAR TO THAT USED IN budget required OIL & GAS INDUSTRY per target to 130+ target rea
Slide 18: Starting To Deliver Against 5-year Strategy
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Starting To Deliver Against Our 5-year Strategy 4.0-6.0Moz 4.0-6.0Moz 10- 15Moz 2.5-3.5Moz 5-year Indicated Resource 1.5-2.5Moz Discovery Target 0.5-1.5Moz 0.5-1.5Moz 1.5Moz 0.5-1.0Moz Discovered Greater Ity Houndé Tabakoto Agbaou Karma Côte d’Ivoire
Slide 19: Exploration Strategic Review: Low Discovery Costs
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Exploration Strategic Review Output: Low Discovery Costs $35- Exploration budget Average discovery cost $55m $45m 40m Annual budget $30m $25m <$15/ oz $15m $25/oz $15/oz $15/oz $10m $11/oz $20/oz Anticipated $13/oz average discovery Greater Hound Tab
Slide 20: Increase Overall Quality of our Portfolio
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Increase Overall Quality of our Portfolio PORTFOLIO AT END OF PORTFOLIO AT END OF $1,200 2015 2017 Tabakot Assessment $1,150 o expected by mid-2018 $1,100 AISC, $/oz $1,200 $1,050 $1,000 $1,050 $950 YougaTabakoto Ity $900 Nzema HL $850 $8
Slide 21: Significant Headroom to Fund Projects
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET 4 Significant MANAGEMENT headroom to fund projects Fully funded without mine cash flow Up to $25m Circa $60m $502m ~$400m Undraw $322m $350m Ity Capex n RCF $200m Cash $122m $152m Hounde remaining capex Liquidity Liquidity Nzem Ity Expected Sources of
Slide 22: Upcoming Catalysts
CORPORATE PRESENTATION UPCOMING CATALYSTS 2018 OUTLOOK: › Gold production guidance increased to 670-720koz with Houndé Immedia › AISC guidance to decrease to below $840-890/oz with Houndé te Cashflow from Production › HOUNDÉ: Contribution to Group free cash flow generation started in Q4-2017 › ITY C
Slide 23: Table of Contents
TABLE OF CONTENTS 1 STRATEGIC OVERVIEW 2 FULL YEAR 2017 RESULTS & 2018 OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
Slide 24: 2018 Guidance Increased with Houndé
CORPORATE PRESENTATION 2018 GUIDANCE INCREASED WITH HOUNDEreduction in AISC expected Continued INSIGHTS Production Guidance › Production from continuing 2018 FULL-YEAR GUIDANCE (All amounts in koz, on a 100% basis) operations is expected to Agbaou 140 150 - increase to 670-720koz in 2018 Ity 60 - 65
Slide 25: Houndé Already Cash Flow Positive: Capex Guidance
CORPORATE PRESENTATION 2018 GUIDANCE INCREASED WITH HOUNDE Houndé is Already Cash Flow Positive INSIGHTS Capital Expenditure Guidance, $m SUSTAINING NON-SUSTAINING GROWTH › Growth projects amount to (in $m) CAPITAL CAPITAL PROJECTS $200 million of the sustaining Agbaou 17 2 - Tabakoto 37 - - and non
Slide 26: Production Increased in 2017
CORPORATE PRESENTATION PRODUCTION INCREASED IN 2017 2017 benefitted from the addition of Houndé and full-year at Karma PRODUCTION VARIATION Full Year 2017 vs 2016 Bridge 663koz AISC of +69koz $869/oz 592koz +28koz (18koz) (8koz) (19koz) AISC of +36koz (17koz) $886/oz FY Youga Nzema Agbao Tabakot It
Slide 27: All-in Margin Breakdown
CORPORATE PRESENTATION ALL-IN MARGIN BREAKDOWN All-in margin increased despite the planned increase in non- sustaining capital YEAR ENDED, INSIGHTS 1. Gold sales up mainly due to a full (in US$ million) 2017 2016 year of production at the Karma GOLD SOLD FROM CONTINUING OPERATIONS, mine following it
Slide 28: Growth Funding Sources
CORPORATE PRESENTATION GROWTH FUNDING SOURCES Cash from operations and RCF used to fund growth INSIGHTS YEAR ENDED, 1. Main 2017 Working capital drivers were: (in US$ million) 2017 2016 ‒ $20m in receivable from the sale of Nzema ALL-IN MARGIN FROM ALL OPERATIONS 162 149 ‒ $41.0m outflow of inventor
Slide 29: Cash Variation Analysis
CORPORATE PRESENTATION CASH VARIATION ANALYSIS Operating activities covered nearly half of investment activities Net Cash Variation Analysis OPERATING ACTIVITIES › Up $68m over 2016 due to stronger production INVESTING ACTIVITIES › Outflows for 2017 include: $222m ‒ $315m growth projects ‒ $54m Ity
Slide 30: Net Debt Analysis
CORPORATE PRESENTATION NET DEBT ANALYSIS Healthy net debt position following Houndé build Net Cash Variation Analysis INSIGHTS Net Debt / Adj. EBITDA (LTM) Net Debt › The significant efforts done in Q4-2015 and in Q1-2016 to strengthen our $254m balance sheet have allowed us to (168% of market cap)
Slide 31: Balance Sheet Management
CORPORATE PRESENTATION BALANCE SHEET MANAGEMENT Diversified debt sources with lower interest cost and increased maturity SITUATION AT END OF 2016 CURRENT SITUATION › DEBT SOURCE: › DEBT SOURCES: $350m RCF ($140m drawn) Diversified across a $350m RCF and $330m convertible notes › INTEREST RATE: LIBOR
Slide 32: Advantages of the Convertible Notes
CORPORATE PRESENTATION ADVANTAGES OF THE CONVERTIBLE NOTES 1 REDUCES ITS OVERALL FINANCING COSTS AND DE-RISKS LIBOR EXPOSURE Annual saving based on $330m convertible compared LIBOR curve to $330m drawn on RCF at various Libor rates $25m 2.50% March $21m 2.07 $18m 7 2.00% 1.77 % $15m January 30 - $11
Slide 33: Significant Funding Sources to Fund Growth
CORPORATE PRESENTATION SIGNIFICANT FUNDING SOURCES TO FUND GROWTH Cash flow expected to fund a large portion of the Ity CIL construction Fully funded without mine cash flow $502m Up to $25m Circa $60m ~$400m Undraw $322m $350m Ity capex n RCF $200m Houndé Cash $152m remaining $122m capex Liquidity L
Slide 34: Net Earnings Breakdown
CORPORATE PRESENTATION NET EARNINGS BREAKDOWN Adjusted EPS 12 MONTHS A = Adjustments made ENDED INSIGHTS DEC. 30, DEC. 30, › Adjusted earnings from continuing (in US$ million) 2017 2016 operations attributable to shareholders GOLD REVENUE 652 566 amounted to $69 million for 2017, a Operating expense
Slide 35: Table of Contents
TABLE OF CONTENTS 1 STRATEGIC OVERVIEW 2 FULL YEAR 2017 RESULTS & 2018 OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
Slide 36: Houndé Mine, Burkina Faso
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Overview KARMA MINE QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 37.3Mt @ 2.1 g/t for 2.459Moz (incl. of Reserves) Inferred: 3.2Mt @ 2.6 g/t for 0.275Moz Ouagadoug ou Reserves 30.2Mt @ 2.0 g/t for 1.957Moz
Slide 37: Houndé Mine: Strong Contribution to Group Performance
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Strong contribution to group performance due to quick ramp-up period Q4-17 INSIGHTS: Houndé aerial view › Production surpassed the upper end of the 30-35koz guidance with better than expected mill availability, throughput, grades, recovery rates and d
Slide 38: Houndé Mine: Construction Achievements
CORPORATE PRESENTATION HOUNDE MINE, BURKINA FASO Construction achievements The team and Houndé’s first gold bars AHEAD OF TIME Commercial production was declared more than two months ahead of schedule as a stable nameplate capacity was achieved within weeks from first ore being introduced into the p
Slide 39: Houndé Project: Significant Exploration Potential
CORPORATE PRESENTATION HOUNDÉ PROJECT, BURKINA FASO Significant exploration potential highlighted by 2017 INSIGHTS drilling Hounde Site Map › Following a two year period of 2.5-3.5Moz no exploration drilling, activities resumed in 5-YEAR DISCOVERY 2017 with a $5 million program TARGET › Focused on d
Slide 40: Houndé Strong Exploration Focus in 2018
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Strong exploration focus in 2018 on high-grade targets Houndé exploration targets and gold-in-soil anomalies map it 2 ity r r io r io P 1 Priority Priority Pr y 2 2 Priorit y1 Priority 2 Priority 2 INSIGHTS › Following a two-year period of no explorat
Slide 41: Kari Pump Exploration Results
CORPORATE PRESENTATION KARI PUMP EXPLORATION RESULTS Drill results confirmed high-grade mineralization A A’ 41
Slide 42: Agbaou Mine, Côte d'Ivoire
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 10.3Mt @ 2.4 g/t for 0.804Moz (incl. of Reserves) Inferred: 1.0Mt @ 1.7g/t for 0.054Moz Côte d’Ivoire Reserves 8.9Mt @ 2.3g/t for 0.668Moz Ity Mine e
Slide 43: Agbaou Mine: Production and AISC
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Production and AISC in-line with increased proportion of fresh ore Production and AISC FULL YEAR 2017 INSIGHTS › Full year production achieved the mid-range of the 175-180koz 195koz guidance $534/ › AISC for 2017 was well below the oz guided $660-700
Slide 44: Agbaou Exploration Program Progress
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Exploration program continues to progress Agbaou Site Map INSIGHTS › Agbaou’s 2017 exploration program amounted to $6.2m with 31,400m of drilling › The primary objective for the 2017 program was to conduct in-pit drilling at the North pit and to test
Slide 45: Agbaou Mine Exploration
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Target of finding between 0.5 to 1.5Moz AREAS OF Agbaou Site Map FOCUS: > 50 ppb › Main 2017 priority was to test area and to generate targets and 0.5-1.5Moz prioritize for the 5-YEAR DISCOVERY upcoming TARGET campaigns › Key Areas targeted are: 1. Agba
Slide 46: Intercepted Mineralization Under North Pit
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Intercepted mineralization 150m under the North pit in Section2017 - AGBDD2141 2m@1.38/t Au 2m@2g/t Au 4m@2g/t Au (incl. 1m@5.23g/t) 2m@5g/t Au 4m@17g/t Au (incl. 2m@26.33g/t) 4m@3g/t Au (incl. 2m@4,70g/t) 3m@2.34g/t Au (incl. 1m@6.26g/t) 3m@2.67g/t Au
Slide 47: Tabakoto Mine, Mali Quick Facts
CORPORATE PRESENTATION TABAKOTO MINE, MALI QUICK FACTS (ON 100% BASIS) Overview Ownership 80-90% Endeavour depending on pit, remainder government of Mali Resources M&I: 19.9Mt @ 3.0 g/t for 1.925Moz (incl. of Reserves) Inferred: 7.4Mt @ 3.4g/t for 0.810Moz Reserves 4.8Mt @ 3.4g/t for 0.517Moz Mali P
Slide 48: Tabakoto Mine: Strategic Assessment Expected
CORPORATE PRESENTATION TABAKOTO MINE, MALI Strategic assessment expected by mid-2018 FULL YEAR 2017 INSIGHTS Production and AISC › Production was below the 150-160koz 163koz guidance range, mainly due to a lower $1,027/ 144koz open pit grade following the depletion of the high-grade Kofi C deposit o
Slide 49: Tabakoto Exploration Potential
CORPORATE PRESENTATION TABAKOTO MINE, MALI Exploration potential both near-mill and for greenfield targets INSIGHTS Tabakoto Site Map › Tabakoto’s 2017 exploration program amounted to $8m, totaling 56,200m focused on both underground resource delineation and testing near-mill open pit targets › Near
Slide 50: Ity Mine, Côte d'Ivoire
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 80% EDV, 10% Côte d’Ivoire, 10% private Resources (HL + CIL) M&I: 73.9Mt @ 1.6 g/t for 3.695Moz (incl. of Reserves) Inferred: 18.7Mt @ 1.3 g/t for 0.785Moz Côte d’Ivoire Reserves (HL+CIL) 58.9Mt @ 1.6 g/t f
Slide 51: Ity Heap Leach Mine: Transition Year
CORPORATE PRESENTATION ITY HEAP LEACH MINE, CÔTE D’IVOIRE Transition year in 2018 as the CIL is built FULL YEAR 2017 INSIGHTS Production and AISC › Production decrease and AISC increased 73koz as lower grade ore was stacked to $756/ 60-65koz 60koz preserve higher grade ore for the oz upcoming CIL pr
Slide 52: Ity CIL Construction Progressing On Time and Budget
CORPORATE PRESENTATION ITY HEAP LEACH MINE, CÔTE D’IVOIRE CIL construction is progressing on time and on budget ACHIEVEMENTS TO DATE CIL Ring Beams Poured › Construction was launched in September 2017 and remains on time and on budget with first gold pour expected in mid-2019 › No LTI with over 800,
Slide 53: Ity CIL Project Construction Progress
CORPORATE PRESENTATION ITY CIL PROJECT MINE, CÔTE D’IVOIRE is progressing on time and on budget Construction TSF Earthworks 53
Slide 54: Ity CIL Project Upcoming Milestones
CORPORATE PRESENTATION ITY CIL PROJECT MINE, CÔTE D’IVOIRE upcoming milestones Construction 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 Admin building starts DETAILED ENGINEERING FEE
Slide 55: Summary of Ity CIL Optimisation Study
CORPORATE PRESENTATION SUMMARY OF ITY CIL OPTIMISATION STUDY Significant improvement over 2016 Feasibility Study 2017 2016 OPTIMIZATIO VARIANCE KEY KEYCHANGES CHANGESINCLUDE: INCLUDE: N FEASIBILITY (OS VS. FS) STUDY STUDY ›› Indicated resource inventory LIFE OF MINE PRODUCTION Strip ratio, w:o 1.9 2
Slide 56: Robust Project Economics
CORPORATE PRESENTATION ROBUST PROJECT ECONOMICS IRR of +20% even at $1,000/oz Cumulative after-tax free cash flow, US$m NPV5% / $1,400m IRR 14-YEAR MINE $1,400/oz 22-MONTH PAYBACK $920m / $1,200m 50% $1,250/oz $1,000m $710m / LIFE 40% PERIOD $800m $600m $1,000/oz $343m / 23% $400m $200m $0m -$200m -
Slide 57: Long-Life Low-Cost Project
CORPORATE PRESENTATION LONG-LIFE LOW-COST PROJECT Significantly improved production profile Production Profile OS production FS production AISC for OS 250koz 250koz 238koz 224koz Exploration potential 235k oz 213koz 201koz 190koz 151koz 162koz 159koz average production over first 5 years $484/oz $49
Slide 58: Life of Mine Plan
CORPORATE PRESENTATION LIFE OF MINE PLAN LOM Total / Pre- Item Unit Average prod 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mining Schedule Total Material Moved kt 166,752 15,555 16,000 16,000 16,000 16,000 16,000 13,770 12,661 15,908 13,623 10,143 5,092 0 0 0 Total Waste Moved kt 109,559 10,973 10,225 10,
Slide 59: Ity Exploration Potential Overview
CORPORATE PRESENTATION ITY EXPLORATION POTENTIAL OVERVIEW Endeavour controls the full Ity Birimian belt 4- 6Moz 5-YEAR DISCOVERY TARGET <$15 /oz AVERAGE 5-YEAR DISCOVERY COST Targeting to discover between 4 to 6 Moz with average grade between 2.0 and 3.5 g/t Au. The potential quantity of ounces is c
Slide 60: On-Track to Achieve Discovery Target
CORPORATE PRESENTATION ON-TRACK TO ACHIEVE DISCOVERY TARGET Already 1.5 Moz added between November 2016 and November 2017 M&I Resource Evolution 4-6Moz Discovery Target 1.5Moz added 2.3Moz 3.8Moz 2016 5-Year 2017 M&I Resource Discovery M&I Resource (Base for FS) Target (Base for OS) (published Nov.
Slide 61: Ity Mine: +1 Moz of Indicated Resources Added
DETAILS BY MINE & PROJECT ITY MINE, CÔTE D’IVOIRE +1 Moz of Indicated resources added in 2017 INSIGHTS Ity Mine Drilling Targets › Ity’s 2017 exploration program amounted to $14 million, totaling 58,500 meters of drilling focused on increasing the resource base for the CIL Optimization Study › More
Slide 62: Ity Mine Exploration - Le Plaque Discovery
CORPORATE PRESENTATION ITY MINE EXPLORATION - LE PLAQUE DISCOVERY Multiple High Grade Trends Discovered INSIGHTS ‒ Le Plaque target has the potential to be the next sizeable discovery following the recent Daapleu and Bakaotuo discoveries ‒ Only the central portion, representing about 25% of the Le P
Slide 63: Greater Ity Regional Gold in Soil Anomalies
CORPORATE PRESENTATION GREATER ITY REGIONAL GOLD IN SOIL (> 100 PPB) ANOMALIES PR609 East Cavally Several Targets u le ep Ti Birimian meta sediments and green belt Gnamapleu Granite-Gneiss PR558 Le Plaque Area eu ol Several Targets Fl No Geochemical data at all GUEYA area No Exploration Several targ
Slide 64: Karma Mine, Burkina Faso
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Overview KARMA MINE QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 81.8Mt @ 1.1 g/t for 2.871Moz (incl. of Reserves) Inferred: 18.7Mt @ 1.3 g/t for 0.785Moz Ouagadoug ou Reserves 34.6Mt @ 0.9g/t for 0.986Moz l
Slide 65: Karma Mine: Uplift Expected in 2018
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Uplift expected in 2018 following optimization of plant FULL YEAR 2017 INSIGHTS Production and AISC 105-115koz › Production totalled near the lower- 98koz $780-830/oz end of the 100-110koz guidance. $834/ The increased compared to 2016 is oz due to 201
Slide 66: Karma Optimization Program Completed
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Optimization program completed and new front-end commissioned in 2017 INSIGHTS ADR Area - Before ADR Area - After › Plant optimization work has been successfully carried out during the past year › The newly installed front- end completed its performanc
Slide 67: Karma Successful Near-Mine Drilling
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Successful near-mine drilling Karma Site Map INSIGHTS › Karma’s 2017 exploration program amounted to $2.5m with 41,520m of drilling › Drilling at the North Kao deposit resulted in the delineation of 19koz of M&I resources and 51koz of Inferred resource
Slide 68: Karma Exploration - North Kao
CORPORATE PRESENTATION KARMA EXPLORATION - NORTH KAO Extension Drilling – New Parallel Trend Discovered Map of the Yabonsgo area INSIGHTS: › Oxide mineralization discovered on a parallel structure › Most notable intercepts include 33.2m at 4.13 g/t Au and 22.8m at 4.18 g/t Au › A resource for this p
Slide 69: Yabonsgo Target
CORPORATE PRESENTATION YABONSGO TARGET New discovery made in 2017 INSIGHTS: Map of the Yabonsgo area › 600m-long mineralized area discovered with a stacked high grade quartz vein system › Reconnaissance drilling suggests potential for further extension › Most notable intercepts include 8.1m at 15.8
Slide 70: Kalana Project, Mali
CORPORATE PRESENTATION KALANA PROJECT, MALI Overview QUICK FACTS (ON 100% BASIS) Ownership 80% EDV, 20% government of Mali Mali Status DFS stage ld Project Kalana Go Resources M&I: 23.7Mt @ 4.1g/t for 3.100Moz (incl. of Reserves) Inferred: 1.7Mt @ 4.4g/t for 0.240Moz Tabakoto Mine Bamako Reserves 21
Slide 71: Fits Our Strategic Portfolio Criteria
CORPORATE PRESENTATION FITS OUR STRATEGIC PORTOFLIO CRITERIA Kalana is a high-quality project GENERAL INFORMATION › Feasibility-stage project 80% Avnel; 20% Mali Ownership government › 1.2Mtpa CIL plant M&I Resources (inclusive of 3.10Moz @ 4.07g/t reserves) › Single open-pit reserve of 1.96Moz at R
Slide 72: Kalana Potential to Increase Production
CORPORATE PRESENTATION FITS OUR STRATEGIC PORTOFLIO CRITERIA Kalana has potential to increase annual production to c.150kozpa AVNEL TRANSACTION CLOSED IN Reserve life of mine plan SEPTEMBER Production AISC › Integration progress completed 203koz shortly after › Study optimization process launched an
Slide 73: Kalana Intensive Exploration Program
CORPORATE PRESENTATION KALANA PROJECT, MALI Intensive exploration program underway INSIGHTS › For 2018, a $5m exploration program is planned › The objective is to complete 45,000m in H1- 2018 to provide by mid- year an updated resource expected to form the basis for the feasibility study › Explorati
Slide 74: Avnel Acquisition Is Value Accretive
CORPORATE PRESENTATION AVNEL ACQUISITION IS VALUE ACCRETIVE Meets equity hurdle rates and is accretive on an NAV basis NAV per share accretion › Due diligence demonstrates that the acquisition meets Avnel NAV Endeavour NAV minimum hurdle rate returns Average NAV of US$253m 2,061 Average NAV of US$1,
Slide 75: Table of Contents
TABLE OF CONTENTS 1 STRATEGIC OVERVIEW 2 FULL YEAR 2017 RESULTS & 2018 OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
Slide 76: Board Members
CORPORATE PRESENTATION BOARD MEMBERS Michael BECKETT Ian COCKERILL, Olivier COLOM, Livia MAHLER, Chairman, Non-executive Director Non-executive Director Non-executive Director Non-executive Director Jim ASKEW, Wayne MCMANUS, Sébastien de Naguib SAWIRIS, Non-executive Director Non-executive Director
Slide 77: Experienced Team in Place
CORPORATE PRESENTATION EXPERIENCED TEAM IN PLACE Near-mine and Regional Teams Abidjan based INSIGHTS EVP Exploration & Growth › Strong knowledge of Expert CI West African Birimian Geologist Government Relations belts Advisor NI 43-101 Legal Advisor › Senior staff from Compliance BRGM, Randgold, SVP
Slide 78: Unlock Exploration Value: Target Selection
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE Selection, Ranking and Risk Evaluation of Exploration targets › All targets referenced and classified according to : ‒ Current state of project knowledge (from grassroot to development) ‒ Quality of supporting data (drilling, available nearby analogs,
Slide 79: Gold Revenue Protection Program
CORPORATE PRESENTATION GOLD REVENUE PROTECTION PROGRAM Increased certainty of the FCF during the construction period of the Ity CIL Gold Revenue Protection Program : Gold Option › Gold Option Contracts aim to Collar Gold price Strategy in increase the certainty of the US$/oz 1,600 Upside on 60% fr
Slide 80: Production and Cost Details by Mine by Quarter
CORPORATE PRESENTATION PRODUCTION AND COST DETAILS BY MINE BY QUARTER (on a 100% basis) Unit AGBAOU Q4-2017 Q3-2017 Q4- Q4- NZEMA Q3- Q4-2016 TABAKOTO Q4-2017 Q3-2017 Q4- Q4-2017 ITY Q3- Q4- Q4-2017 KARMA Q3- Q4-2016 HOUNDE Q4-2017 2016 2017 2017 2016 2017 2016 2017 Physicals Total tonnes mined – OP
Slide 81: Production and Cost Details by Mine Year to Date
CORPORATE PRESENTATION PRODUCTION AND COST DETAILS BY MINE YEAR TO DATE AGBAOU NZEMA TABAKOTO ITY KARMA HOUNDE (on a 100% basis) Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Unit 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Physicals Total tonnes
Slide 82: Reserves and Resources
CORPORATE PRESENTATION RESERVES AND RESOURCES As of December 31, 2017 Tabakoto Mine Group Consolidated Total Resources shown inclusive of Reserves. On a 100% Tonnage (Mt) Grade (Au g/t) Content (Au koz) On a 100% basis basis Resources shown Tonnage Grade Content Proven Reserves 2.4 251 inclusive of
Endeavour Mining — Investor Presentation (April 2018) on 6ix