Endeavour Mining Plc · TSX:EDV

Endeavour Mining — Q1 2018 Earnings Presentation

38 slides from Endeavour Mining's earnings presentation, May 15, 2018

  1. Slide 1: Q1 Operational & Financial Results

    Q1 OPERATIONAL Q2 & FINANCIAL RESULTS Q3 › May 15, 2018 Q4

  2. Slide 2: Disclaimer & Forward Looking Statements

    Q1-2018 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

  3. Slide 3: Speakers and Table of Contents

    SPEAKERS TABLE OF CONTENTS SÉBASTIEN DE MONTESSUS Chief Executive Officer, President & Director 1 Q1-2018 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 – Explora

  4. Slide 4: Q1 Performance In-Line With Guidance

    Q1-2018 RESULTS Q1 PERFORMANCE IN-LINE WITH GUIDANCE On-track to meet 2018 guidance GROUP Q1 BELOW LTIFR1 INDUSTRY 0.46 0.80 Industry Average GROUP Q1 ON-TRACK PRODUCTION 185koz 670-720koz Guidance GROUP $840/oz $890/oz AISC Q1 ON-TRACK $774/oz Guidance ¹Lost Time Injury Frequency Rate= (Number of L

  5. Slide 5: Strong Safety Record

    Q1-2018 RESULTS STRONG SAFETY RECORD Our safety record remained below the industry average in Q1-2018 Lost Time Injury Frequency Rate 0.80 0.46 Q1-2018 Lost Time Injury Frequency Rate 0.46 0.40 0.29 0.00 0.00 0.00 +1.8m Peer Group FY2016 FY2017 Q1 2018 Houndé Agbaou Ity Man Hours with no Average LTI

  6. Slide 6: Key Q1 Catalyst: Houndé De-Risked And Fully Ramped-Up

    Q1-2018 RESULTS KEY Q1 CATALYST: HOUNDÉ DE-RISKED AND FULLY RAMPED-UP Already generated an All-in Margin of $107 million since November 2017 METRIC Q1 ACHIEVEMENT COMPARED TO STUDY All-in Margin (Life of mine average) MINING Moved from mainly softer +25% above oxide material in Q4-17 to capacity rou

  7. Slide 7: Strong Production Increase

    Q1-2018 RESULTS STRONG PRODUCTION INCREASE Q1-18 benefitted from a full quarter of production from Houndé Group Production, koz From discontinued Nzema operation +39% From continuing operations 204koz 185koz Q1-18 vs. Q1-17 159koz From continuing operations 152koz 148koz +39% +52koz Q1-18 vs. Q1-17

  8. Slide 8: AISC Continued To Trend Lower In Q1-2018

    Q1-2018 RESULTS AISC CONTINUED TO TREND LOWER IN Q1-2018 Strong decrease due to Houndé AISC including Nzema discontinued operation, in US$/oz Houndé -14% Start-up Q1-18 vs. Q1-17 $905/oz $906/oz $897/oz Including discontinued operations $785/oz $774/oz -$131/oz Q1-18 vs. Q1-17 Including discontinued

  9. Slide 9: All-In Margin

    Q1-2018 RESULTS ALL-IN MARGIN Strong increase due to Houndé, more than double Q1-2017 All-in Margin, in US$m Realized Gold price $162m +112% $149m $1,219/oz $1,222/oz Q1-18 vs. Q1-17 $85m $1,157/oz $68m $35m $1,264/oz Q1 +112% +$36m $32m Q1-18 vs. Q1-17 $1,298/oz 2014 2015 2016 2017 Q1-18 Gold price

  10. Slide 10: Ity CIL Project Construction

    Q1-2018 RESULTS ITY CIL PROJECT CONSTRUCTION CIL construction is progressing on-time and on-budget ACHIEVEMENTS TO DATE Process Plant – Western Perspective › Construction remains on-time and on-budget with first gold pour expected mid-2019. › Overall project completion stands at 30%, tracking in lin

  11. Slide 11: Ity CIL Project Construction

    Q1-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Construction is progressing on-time and on-budget Process Plant- Eastern Perspective Ity Construction Site Primary Crusher Haul Bridge Works 11

  12. Slide 12: Ity CIL Project Construction

    Q1-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Overall project completion stands at 30%, 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 Admin bu

  13. Slide 13: Q1 Exploration Activities

    Q1-2018 RESULTS Q1 EXPLORATION ACTIVITIES Continued strong focus on exploration activities MAIN Q1 FOCUS Q1-2018 2018 BUDGET › Strong focus in Q1 ahead of rainy season in H2 (in $m) EXPENDITURES ALLOCATION › At Kalana: intensive exploration program with Agbaou 1.4 4 8% 37,000m drilled out of 45,000m

  14. Slide 14: Q1-2018 In Review

    1 Q1-2018 IN REVIEW 2 FINANCIAL SUMMARY 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX

  15. Slide 15: Production Bridge

    Q1-2018 RESULTS PRODUCTION BRIDGE Houndé more than offset sale of Nzema and expected declines at Agbaou and Tabakoto Production Bridge Q1-2017 to Q1-2018 INSIGHTS Change 185koz in AISC › All mines performing in line or above expectations 159koz › Q1-2018 benefitted from a full quarter of production

  16. Slide 16: All-In Margin Breakdown

    Q1-2018 RESULTS ALL-IN MARGIN BREAKDOWN All-in margin increased by 112% due to successful start-up of Houndé QUARTER ENDED, Q1-2018 INSIGHTS MAR. 31, MAR 31, 1. Gold sales up mainly due to the successful (in US$ million) 2018 2017 start-up of Houndé GOLD SOLD FROM CONTINUING OPERATIONS, koz 1 185 13

  17. Slide 17: Growth Funding Sources

    Q1-2018 RESULTS GROWTH FUNDING SOURCES Cash from operations and RCF used to fund growth QUARTER ENDED, MAR. 31, MAR 31, Q1-18 INSIGHTS (in US$ million) 1. Main working capital drivers were: 2018 2017 ALL-IN MARGIN FROM ALL OPERATIONS 68 32 ‒ $23 million outflow of inventory due to a temporary increa

  18. Slide 18: Significant Funding Sources To Fund Growth

    Q1-2018 RESULTS SIGNIFICANT FUNDING SOURCES TO FUND GROWTH Cash flow expected to fund a large portion of the remaining Ity CIL construction Fully funded without Circa $30m mine cash flow $424m Up to $25m Undrawn RCF $330m Ity capex $265m (cash outflow and equipment financing remaining ) Cash $94m Li

  19. Slide 19: Cash Variation Analysis

    Q1-2018 RESULTS CASH VARIATION ANALYSIS Operating activities covered nearly half of investment activities Net Cash Variation Analysis OPERATING ACTIVITIES › Includes negative $46m of negative working capital variation INVESTING ACTIVITIES $48m › Includes $78 million of growth project capital › Inclu

  20. Slide 20: Net Debt Analysis

    Q1-2018 RESULTS NET DEBT ANALYSIS Healthy net debt position INSIGHTS Net Cash Variation Analysis › The significant efforts done in Q4-2015 and in Q1- Net Debt / Adj. EBITDA (LTM unless otherwise stated) Net Debt 2016 to strengthen our balance sheet have allowed us to successfully finance the Houndé

  21. Slide 21: Net Earnings Breakdown

    Q1-2018 RESULTS NET EARNINGS BREAKDOWN Adjusted EPS up 136% compared with Q1-2017 QUARTER ENDED A = Adjustments made MAR. 31, MAR. 31, INSIGHTS (in US$ million) 2018 2017 › Q1-2018 adjusted net earnings from GOLD REVENUE 240 158 continuing operations increased by 258% Operating expenses (115) (97) c

  22. Slide 22: Details by Mine and Project

    1 Q1-2018 IN REVIEW 2 FINANCIAL SUMMARY 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX

  23. Slide 23: Houndé Mine, Burkina Faso

    DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Strong contribution to group performance due to quick ramp-up period Q1-18 vs Q4-17 INSIGHTS: Houndé aerial view › Production increased as the mine benefited from a full quarter of production after commencing commercial production on November 1, 20

  24. Slide 24: Agbaou Mine, Côte d'Ivoire

    DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Continued low AISC as mine transitioned into harder ore blend Q1-18 vs Q4-17 INSIGHTS: Production and AISC › As expected, production decreased as low- Production, koz AISC, US$/oz grade stockpile feed supplemented mine feed 45koz 46koz 43koz to al

  25. Slide 25: Ity Heap Leach Mine, Côte d'Ivoire

    DETAILS BY MINE & PROJECT ITY HEAP LEACH MINE, CÔTE D’IVOIRE Production increased following the rainy season Q1-18 vs Q4-17 INSIGHTS: › Production slightly increased mainly due to the Production and AISC anticipated higher grade ore Production, koz AISC, US$/oz › AISC decreased due to lower sustaini

  26. Slide 26: Karma Mine, Burkina Faso

    DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Higher stacking capacity as the plant optimization was completed in Q4 Q1-18 vs Q4-17 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production increased, slightly exceeding expectations, as stacking capacity was 25% above nameplate 32

  27. Slide 27: Tabakoto Mine, Mali

    DETAILS BY MINE & PROJECT TABAKOTO MINE, MALI AISC increased despite lower unit costs due to lower grades Q1-18 vs Q4-17 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production increased mainly due to higher average head grades 43koz 41koz › AISC significantly decreased due to increa

  28. Slide 28: Conclusion

    1 Q1-2018 IN REVIEW 2 FINANCIAL SUMMARY 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX

  29. Slide 29: Upcoming Catalysts

    CONCLUSION UPCOMING CATALYSTS 2018 OUTLOOK: › On track to meet gold production guidance of 670-720koz Immediate › On track to meet AISC guidance of $840-890/oz › Significant cash flow increase compared to 2017 due to Hounde Cashflow from Production › ITY CIL PROJECT: Construction tracking on-budget

  30. Slide 30: Production And AISC Profile

    CONCLUSION PRODUCTION AND AISC PROFILE Continuing to be on track to achieving strategic objectives STRATEGIC OBJECTIVE $1,317/oz For 2019 +900koz +900koz 800-900koz 10+ year $1,010/oz $922/oz 670-720koz 800-900koz Mine life $869/oz 663koz $869/oz 584koz $840-890/oz 517koz 462koz ≤ 800$/oz 317koz All

  31. Slide 31: Appendix

    1 Q1-2018 IN REVIEW 2 FINANCIAL SUMMARY 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX

  32. Slide 32: Houndé Mine, Burkina Faso

    APPENDIX HOUNDÉ MINE, BURKINA FASO Strong exploration focus in 2018 on high-grade targets Houndé exploration targets and gold-in-soil anomalies map Priority 2 Priority 2 Priority 1 Priority 2 Priority 2 INSIGHTS › In 2018, Houndé will be the strongest focus for Endeavour with a $9 million exploratio

  33. Slide 33: Agbaou Mine, Côte d'Ivoire

    APPENDIX AGBAOU MINE, CÔTE D’IVOIRE Exploration program continues to progress Agbaou Site Map INSIGHTS › A $4 million exploration program totaling approximately 16,000 meters has been planned for 2018 with the aim of delineating the at- depth potential of the North pit, extension drilling at the Wes

  34. Slide 34: Ity Mine, Côte d'Ivoire

    APPENDIX ITY MINE, CÔTE D’IVOIRE +1 Moz of Indicated resources added in 2017 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 Plaque deposit

  35. Slide 35: Karma Mine, Burkina Faso

    APPENDIX KARMA MINE, BURKINA FASO Successful near-mine drilling Karma Site Map INSIGHTS › A $2 million exploration program totalling approximately 32,000 meters has been planned for 2018 with the aim of delineating Indicated resources at both North Kao and Yabonsgo, in addition to near-mill targets

  36. Slide 36: Tabakoto Mine, Mali

    APPENDIX TABAKOTO MINE, MALI Exploration potential both near-mill and for greenfield targets Tabakoto Site Map INSIGHTS › A $7 million exploration program totalling approximately 45,000 meters has been planned for 2018, equally allocated on near-mill targets (both underground and open pit) and on gr

  37. Slide 37: Kalana Project, Mali

    APPENDIX KALANA PROJECT, MALI Intensive exploration program underway INSIGHTS › For 2018, a $5m exploration program is planned › An updated resource is expected to be published by mid-year which will form the basis of the updated feasibility study which is expected to be completed by Q1-2019. 37

  38. Slide 38: Production And Cost Details By Mine By Quarter

    APPENDIX PRODUCTION AND COST DETAILS BY MINE BY QUARTER AGBAOU TABAKOTO ITY KARMA HOUNDE (on a 100% basis) Unit Q1-2018 Q3-2017 Q4-2016 Q1-2018 Q3-2017 Q4-2016 Q1-2018 Q3-2017 Q4-2016 Q1-2018 Q3-2017 Q4-2016 Q1-2018 Q4-2017 Physicals Total tonnes mined – OP1 000t 7,952 7,216 6,356 1,840 1,864 1,888

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