Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Merger or Acquisition (June 2017)
10 slides from Endeavour Mining's merger presentation, Jun 28, 2017
Slide 1: Avnel Acquisition
Avnel Acquisition › June 2017
Slide 2: Transaction Highlights
AVNEL TRANSACTION TRANSACTION HIGHLIGHTS Endeavour to acquire Avnel, which owns the Kalana Gold project in Mali › An all-share transaction values Avnel at 1 2 US$122m (C$159m), representing a 48% premium to Avnel’s closing price on 28 FITS OUR June 2017 STRATEGIC FILLS OUR › Kalana is a high-quality
Slide 3: Kalana is a high-quality project
AVNEL TRANSACTION 1 FITS OUR STRATEGIC PORTOFLIO CRITERIA Kalana is a high-quality project GENERAL INFORMATION › Feasibility-stage project Ownership 80% Avnel; 20% Mali government M&I Resources (inclusive of reserves) 3.10Moz @ 4.07g/t › 1.2Mtpa CIL plant Reserves 1.96Moz @ 2.80g/t › Single open-pit
Slide 4: Kalana has potential to increase annual production to c.150kozpa
AVNEL TRANSACTION 1 FITS OUR STRATEGIC PORTOFLIO CRITERIA Kalana has potential to increase annual production to c.150kozpa › Production profile based on the Reserve life of mine plan Production AISC Optimised Feasibility Study: ‒ Average over first 5 years: 148koz 203koz at an AISC of $561/oz ‒ Aver
Slide 5: Kalana has significant exploration upside
AVNEL TRANSACTION 1 FITS OUR STRATEGIC PORTOFLIO CRITERIA Kalana has significant exploration upside › Kalana Main deposit still fully open at depth › The high-grade Kalanako prospect, located 2.5km northeast of the Kalana Main Project, provides potential for a satellite deposit (already hosts an Ind
Slide 6: Kalana Fits Well in our "Magic Box"
AVNEL TRANSACTION 1 FITS OUR STRATEGIC PORTOFLIO CRITERIA Kalana Fits Well in our “Magic Box” AISC, US$/oz $1,200/oz $1,150/oz $1,100/oz $1,050/oz Youga Cut-back SOLD $1,000/oz Tabakoto (150-160koz) $950/oz Nzema (100-110koz) $900/oz $850/oz Houndé $800/oz +250koz starting Q4-2017 Ity HL Kalana (75-
Slide 7: Strengthens Endeavour's Project Pipeline
AVNEL TRANSACTION 2 STRENGHTENS ENDEAVOUR’S PROJECT PIPELINE Kalana will be developed after the Hounde and Ity CIL projects Project construction pipeline rkina Faso Houndé - Construction period ôte d'Ivoire Ity CIL, Côte d’Ivoire - Construction period alana, Mali Kalana, Mali - Exploration and optim
Slide 8: Corporate & Operating Synergies
AVNEL TRANSACTION 3 CORPORATE & OPERATING SYNERGIES th Second mine in the country and 6 in West-Africa › Endeavour’s West African presence will benefit Kalana and provide opportunities to draw on operating synergies in a country where Endeavour already has a producing mine › Synergies from operating
Slide 9: Value Accretive
AVNEL TRANSACTION VALUE ACCRETIVE 3 Meets equity hurdle rates and is accretive on an NAV basis NAV per share accretion › Due diligence demonstrates that the acquisition meets minimum Avnel NAV Endeavour NAV hurdle rate returns when Average NAV of US$253m 2,061 Average NAV of US$1,414m (P/NAV of 1.21
Slide 10: Transaction Terms
AVNEL TRANSACTION TRANSACTION TERMS Transaction closing by 13 Sept 2017 › 0.0187 Endeavour shares for each Avnel share, implying a value of C$0.42 per Avnel share Offer › Implied aggregate consideration of US$122m › Offer will be conducted through a Guernsey Scheme of Arrangement › 75% present and v