Endeavour Silver Corp. · TSX:EDR
Endeavour Silver — Sprott-Stansberry Conference 2015
32 slides from Endeavour Silver's conference presentation, July 2015
Slide 1: El Cubo Mine Expansion Complete – on Time and Budget
El Cubo Mine Expansion Complete – on Time and Budget NYSE: EXK TSX: EDR July 2015 Vancouver, BC 1 Sprott-Stansberry Conference
Slide 2: Cautionary Note
Cautionary Note This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and inf
Slide 3: Share Price vs Gold and Silver – 2007-2009
Share Price vs Gold and Silver – 2007-2009 3
Slide 4: Share Price vs Gold and Silver – 2015
Share Price vs Gold and Silver – 2015 ? ? ? Jul Aug Sep Oct Nov Dec 2015 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 Feb Mar Apr May Jun 4
Slide 5: Investor Highlights
Investor Highlights Mid-tier precious metals producer guiding 2015 production Endeavour Silver Corp. of 10.4-11.6 million silver equivalent ounces Three high-grade silver-gold mines located in two prolific Core Assets historic mining districts of Mexico Delivered latest mine expansion on time and bu
Slide 6: Endeavour – Core Assets
Endeavour – Core Assets Mines Guanaceví Bolañitos Exploration El Cubo Terronera Parral Guadalupe y Calvo Arroyo Seco Lourdes Production Exploration Office 6
Slide 7: Strategic Acquisitions
Strategic Acquisitions GUANACEVÍ BOLAÑITOS EL CUBO • Acquired in 2004 • Acquired in 2007 • Acquired in 2012 • Processing 100 tpd of old • Processing 50 tpd of old minefill • Processing 1,100 tpd of low- tailings into a 600 tpd plant into a 500 tpd plant grade ore into a leased plant • Discovered sev
Slide 8: 2015 Highlights
2015 Highlights • Reduced cash costs to $7.17 per oz and AISC to $13.32 per oz in Q1 • On track to meet 2015 guidance; beat guidance by average 16% every year for last five years • Completed mine expansion at El Cubo to 2,200 tpd on time and budget • Developed new ramp access to LL-Asunción orebody
Slide 9: 2015 Outlook
2015 Outlook 2015 Guidance H1, 2015 Production Silver 6.3-7.0 million oz 3.6 million oz Gold 60,000-66,000 oz 28,885 oz Silver equivalents (1) 10.4-11.6 million oz 5.6 million oz Q1, 2015 Cash costs (2) $9-$10 $7.17 AISC (3) $16-$17.50 $13.32 Capital $36.5 million $8.6 million Exploration $6.9 milli
Slide 10: Track Record
10 GROWTH WITH INTEGRITY SILVER ENDEAVOUR
Slide 11: Organic Resource Growth
Organic Resource Growth Reserves and Resources (million oz) 250 205.7 200 2012 Acquired El Cubo 150 Millions 127.7 Silver Equivalents 2007 100 Acquired Bolañitos 1.1 2004 50 Acquired Silver Gold Guanaceví 0 Other 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Note: Gold ounces converted to s
Slide 12: Consistent Production Growth
Consistent Production Growth Annual Production (million oz) 14 11.6 12 10 2012 Acquired Millions El Cubo 8 7.2 Silver Equivalents 6 63,0 00 2007 Acquired 4 Bolañitos 2004 Silver Acquired Gold 2 Guanaceví 0 Other 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Note: Gold ounces converted to si
Slide 13: Market Snapshot
Market Snapshot Issued and outstanding 102.0 million Fully diluted 108.4 million Recent price (July 21, 2015) US$1.42 Market cap (July 21, 2015) US$145 million 52-week high/low US$6.44/$1.42 Exchange listings NYSE: EXK TSX: EDR 90-day average volume 1.2 million Cash position (March 31, 2015) $26 mil
Slide 14: Strong Silver Leverage
Strong Silver Leverage One-year beta Three-year beta Five-year beta Endeavour 1.29 1.54 1.26 First Majestic 1.26 1.32 1.17 Fortuna 1.03 1.47 1.10 Silver Standard 1.41 1.40 1.02 Silver Wheaton 0.80 1.05 0.94 Coeur 0.99 1.03 0.93 Hecla 0.70 0.92 0.87 Fresnillo 0.79 0.97 0.81 Hochschild 1.46 1.01 0.80
Slide 15: Guanaceví
GUANACEVÍ 15
Slide 16: Guanaceví: Top Five Mexican Silver District
Guanaceví: Top Five Mexican Silver District Location: Durango, Mexico Property: approx. 4,100 hectares Infrastructure: State highway, power, local labour Past Production: 450 million oz Ag 2014 Production 3.6 million oz Ag 4.1 million oz Ag Eq. 2015 Guidance 3.1-3.3 million oz Ag 3.5-3.8 million oz
Slide 17: Guanaceví: High-Grade Discovery at Santa Cruz Sur
Guanaceví: High-Grade Discovery at Santa Cruz Sur From True Width Au Ag Hole (m) (m) (gpt) (gpt) 210.85 4.71 1.88 442 SCS1S-1 211.90 0.44 2.69 1455 SCS1S-3 182.50 1.50 0.56 161 344.00 3.58 1.31 354 SCS1S-4 348.95 0.34 2.27 907 376.95 3.94 1.91 681 SCS1S-5 376.95 0.42 6.40 2930 174.10 3.17 0.84 159 S
Slide 18: Bolañitos
BOLAÑITOS 18
Slide 19: Bolañitos: Second Largest Mexico Silver District
Bolañitos: Second Largest Mexico Silver District Location: Guanajuato, Mexico Property: approx. 2,500 hectares Infrastructure: State road, power, local labour Past Production: 1.2 billion oz Ag 5 million oz Au 2014 Production: 2.4 million oz Ag 5.0 million oz Ag Eq. 2015 Guidance 1.1-1.3 million oz
Slide 20: Bolañitos: Discovery at La Luz-Asunción
Bolañitos: Discovery at La Luz-Asunción True From Au Ag Ag Eq Width Hole (m) (m) (gpt) (gpt) (gpt) 294.85 2.45 11.01 550.7 1,211 LZ15-1 297.10 0.58 19.15 846.0 1,995 342.30 3.51 6.24 325.0 699 LZ15-2 346.65 0.23 14.15 729.0 1,578 267.60 1.81 1.89 89.8 203 LZ16-4 269.25 0.34 3.79 295.0 522 330.80 1.8
Slide 21: El Cubo
E (4 O tu kK = at, E 3 : O ia UO SILVER ENDEAVOUR
Slide 22: El Cubo: Second Mine in Guanajuato District
El Cubo: Second Mine in Guanajuato District Location: Guanajuato, Mexico Property: approx. 8,144 hectares Infrastructure: State roads, power grid, local labour Past Production: 80 million oz Ag 2 million oz Au 2014 Production: 1.2 million oz Ag 2.5 million oz Ag Eq. 2015 Guidance: 2.1-2.4 million oz
Slide 23: El Cubo: Set to Become Our Largest Mine
El Cubo: Set to Become Our Largest Mine El Cubo mine expansion to 2,200 tpd completed on time and budget Capex $3.7 million for mine development Mine ramp-up Achieved 2,200 tpd at end of Q2; primarily V-Asunción and Santa Cecilia mine areas Mill availability Trucking up to 650 tpd to Bolañitos plant
Slide 24: El Cubo: Discovery at Villalpando-Asunción
El Cubo: Discovery at Villalpando-Asunción True From Au Ag AgEq True Hole Width From Au Ag AgEq Hole Width (m) (m) (gpt) (gpt) (gpt) (m) (m) (gpt) (gpt) (gpt) 233.95 5.94 1.34 144 224 CAS-43 285.10 4.80 1.59 268 363 234.50 0.57 6.05 373 736 CAS-39 288.35 0.77 2.68 476 637 264.10 13.56 2.89 194 368 C
Slide 25: Terronera
= ENDEAVOUR WITH INTEGRITY SILVER
Slide 26: Terronera: Historic Silver-Gold District
Terronera: Historic Silver-Gold District • Discovered in 1542, mined for centuries, largely unexplored • Four large silver-gold vein systems each three km long • Covers +50 small historic mines on+20 separate veins • Classic epithermal ore-bodies in Lower Tertiary andesites • Located 40 km northeast
Slide 27: New Discovery at Terronera
New Discovery at Terronera Open Open From True Width Au Ag AgEq From True Width Au Ag AgEq Hole Structure Hole Structure (m) (m) (gpt) (gpt) (gpt) (m) (m) (gpt) (gpt) (gpt) Terronera 263.75 6.58 1.1 1,371 1,448 Hw Terronera 70.6 6.86 1.78 283 408 TR10-4 Including 270.85 0.31 5.12 5,420 5,778 TR19-2
Slide 28: Terronera: Mine Engineering Under Way
Terronera: Mine Engineering Under Way 2014 Resource Estimate(1) Indicated : Inferred: • 21.9 million oz Ag • 7.2 million oz Ag • 169,200 oz Au • 54,300 oz Au Conceptual Plan 2014 Updated resource estimate Received MIA approval Engineering under way 2015 Completed PEA • Complete PFS by year-e
Slide 29: Terronera PEA – Robust Preliminary Economics
Terronera PEA – Robust Preliminary Economics BASE CASE Initial capital $65.4 million Construction period 12 months LOM revenue $542 million LOM sustaining capital $75 million 20.4 million oz silver LOM production 138,500 oz gold Mine life 10.3 years Total operating costs $83/tonne Cash costs, net of
Slide 30: 2015 Catalysts
2015 Catalysts • Drive consolidated cash costs and AISC lower now that El Cubo mine expansion is complete • Complete pre-feasibility study, receive environmental permits, make a production decision, and arrange project financing at Terronera • Make new discoveries at all three mines and Terronera •
Slide 31: Why Endeavour?
Why Endeavour? Experienced Board and Proven Track Record: Accretive Acquisitions: Management: Ten consecutive years of Guanaceví, Bolañitos, 400+ years in mining record silver production El Cubo industry Compelling Organic Quality Assets: Growth: Low risk, large districts, High-grade discovery at bi
Slide 32: Contact Us
Contact Us Endeavour Silver Corp. Suite 301-700 West Pender Street Vancouver, BC, V6C 1G8 Canada mbrown@edrsilver.com www.edrsilver.com Phone: 1-604-685-9775 Fax: 1-604-685-9744 Canada and US Toll-Free: 1-877-685-9775 32