Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (December 2016)
82 slides from Endeavour Mining's investor presentation, December 2016
Slide 1: Corporate Presentation December 2016
CREATING A PREMIER AFRICAN GOLD PRODUCER Corporate Presentation December 2016 0
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP market prices of mining consumables, possible variations in ore reserves, performance measures with no standard meaning under IFRS. This grade or recovery rates; failure of plant, equip
Slide 3: Endeavour Mining Overview
Endeavour Mining Overview Immediate Cashflow from 5 producing mines at low AISC – 2015 production: 517 koz – 2016E production: 575-610 koz – 2015 AISC: US$922/oz – 2016E AISC: US$870 - 920/oz Near-Term Growth from 2 attractive projects – Houndé Project construction started in April 2016, first gold
Slide 4: Company Profile
Company Profile Share Price Performance Ticker TSX:EDV 7,000,000 Volume (shares) EDV share price, C$ 30 Shares in Issue 93.4 m Fully Diluted 6,000,000 95.8 m 25 Share price C$23.26 Market cap 5,000,000 US$1,655m Net Debt US$14m 20 4,000,000 15 3,000,000 10 2,000,000 5 1,000,000 0 0 January-16 Februa
Slide 5: Hands-on Management Model
Hands-on Management Model MANAGEMENT FOCUS LEAN EXECUTIVE MANAGEMENT TEAM Sebastien de Montessus CEO & President & Director Safety First Adriaan “Attie” Roux Vincent Benoit COO EVP CFO & Corporate Development Cash flow Lean and driven Efficient Operations Patrick Bouisset Jeremy Langford EVP Explora
Slide 6: Clear Path to Build a +900koz Producer at ≤ $800/oz AISC
CLEAR PATH TO BUILD A +900KOZ PRODUCER AT ≤ $800/OZ AISC +900koz Strategic Milestones Ity for 2018-2020 $1,137 CIL + 900 koz ANNUAL PRODUCTION 575-610koz $1,010 ≤ 800$/oz 517koz ALL IN CASH COST 462koz $922 10+ year 317koz MINE LIFE IN OUR CORE ASSETS $870-920 220koz 167koz <$800 83koz 2010 2011 201
Slide 7: 4 Strategic Levers
STRATEGIC OBJECTIVE Create a Premier African Gold Producer with Low-cost and Long Life Mines 4 Strategic Levers 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCK EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Benchmark of West-African Producers AISC, $/oz 1,100 Gold Fields 1,050 1,00
Slide 8: Operational Excellence
1 OPERATIONAL EXCELLENCE Proven track record of operating in West-Africa 1) Increased Production 2) Decreased All-in Sustaining Costs Production, on a 100% basis in koz AISC, in US$/oz $1,137/oz 575-610koz 517koz 466koz $1,010/oz $922/oz 324koz $870-920/oz 2013A 2014A 2015A 2016 Guidance 2013A 2014A
Slide 9: Operational Excellence: Group performance in line with guidance
1 OPERATIONAL EXCELLENCE Group level performance in line with full year guidance First 9 months 2016 Q3- 2016 Comment of 2016 Guidance Q3: +6% over Q2-2016 Production (incl Karma) 146koz 416koz 575 - 610koz Growth acceleration expected in Q4 Production on track to be within guidance Continue
Slide 10: Project Development: Houndé and Ity CIL are top tier projects
2 PROJECT DEVELOPMENT Houndé and Ity CIL are top tier projects Significant West African West African DFS Stage Projects Benchmark: Mine life and All-in cost (including initial capex) 1,250 Construction Expertise: Baomahun – Core construction team has (Amara) 1,200 successfully developed projects tog
Slide 11: Houndé is positioned to be flagship low cost mine
2 PROJECT DEVELOPMENT Houndé is positioned to be Endeavour’s flagship low cost mine • Construction started in April with first Essakane (IAMGOLD) Inata gold pour expected in Q4-2017 (Avocet) Taparko (Nordgold) - Construction is progressing on-time and Karma Bissa Hill on-budget (Nordgold) - Procurem
Slide 12: Ity CIL Feasibility Study demonstrates flagship potential
2 PROJECT DEVELOPMENT Ity CIL Feasibility Study demonstrates potential for Ity to become another flagship asset Long-life Low Cost Project • Long 14-year reserves mine life 165kozpa at AISC of US$507/oz • Low AISC of $507/oz over first 9 years on average over the first 5 years • Solid production of
Slide 13: Unlock Exploration Value: Largest Portfolios in West Africa
3 UNLOCK EXPLORATION VALUE Amongst Largest and Most Promising Portfolios in West Africa +200 Targets 7,190 km2 10 Mining Leases 42 Exploration Licenses 390 km² 2,140 km² 510 km² 4,150 km² CREATING A LOW COST AFRICAN GOLD PRODUCER 12
Slide 14: Potential to find 10-15Moz over next 5 years
3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Ranking of Potential Total Potential to find 10-15Moz over next 5 years Moz Greenfield Near Mine to Brownfield < 15km 6 5 4.0-6.0Moz 4 48% 10-15 52% Moz 3 2.5-3.5 Moz 2 1.5-2.5Moz 1 0.5-1.5Moz 0.5-1.0Moz 0.5-1.0Moz Greater Ity Houndé Ta
Slide 15: Annual budget of $35-40m with discovery costs <$15/oz
3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Low Discovery Costs Annual budget of $35-40m with anticipated average discovery costs <$15/oz $55m Mali Côte 17% d’Ivoire $45m 5-year 50% budget 33% $30m Burkina $25m Faso $25/oz $15m $15/oz $15/oz $10m $11/oz $20/oz $13/oz Greater Ity
Slide 16: Exploration priorities
3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: What are the priorities? Priorities: Priorities: 1. Tabakoto due to its short mine life 1. Ity Greater Area 2. Agbaou to extend oxide mine life 2. Houndé to prolong mine life 3. Ity to extend HL and Improve CIL case 3. Tabakoto and Agab
Slide 17: Increase Overall Quality of our Portfolio
4 PORTFOLIO & BALANCE SHEET MANAGEMENT Increase Overall Quality of our Portfolio AISC, US$/oz $1,200/oz $1,150/oz Decreased costs $1,100/oz from >1,300/oz $1,050/oz Nzema $1,000/oz (90-100koz) Tabakoto $950/oz (155-175koz) $900/oz Ity HL (70-80koz) Ity HL (70-80koz) $850/oz Possibility to run HL in
Slide 18: Creating one of West-Africa's lowest cost asset portfolios
4 PORTFOLIO & BALANCE SHEET MANAGEMENT Creating one of West-Africa’s lowest cost asset portfolios West African Mines Benchmark Lowest cost mines Highest cost mines 600 Tarkwa 550 500 Akyem 450 Essekane Production, kozpa 400 350 Loulo Ahafo 300 Gounkoto Mana Siguiri 250 Bissa Chirano Houndé Tongon Ta
Slide 19: Healthy financial structure
4 PORTFOLIO & BALANCE SHEET MANAGEMENT Healthy financial structure Liquidity and Financing Sources Significant reduction in Net Debt since the Strong liquidity and financing sources to fund beginning of the year remaining Houndé capex spend of roughly $270m ‒ $65m cash injection received from La M
Slide 20: Well positioned to fund growth
4 HEALTHY FINANCIAL STRUCTURE Well positioned to fund growth Based on current economic conditions, Endeavour can self-finance Houndé and Ity • Cash flow from current mine operations 2017-2018 (@$1,250/oz), including Houndé and Karma Potential • Hedging collar (between USD1,200- 1,400/oz) covering c.
Slide 21: Scorecard of value drivers
Scorecard of value drivers set at the beginning of the year Key Value Drivers 2016 Achievements to Date Portfolio • Dynamic portfolio management to improve quality of portfolio • Youga sold in March (end of life, high cost operation) Management • Karma acquired in April (Long mine life, low-cost o
Slide 22: Investment Highlights
Investment Highlights Endeavour now offers exposure to both near and long-term growth potential, in addition to current production Immediate Near-Term Long-Term Cashflow Growth Upside from Production from Projects from Exploration with an accomplished management team and a healthy balance sheet CREA
Slide 23: Details by Mine and Project
CREATING A PREMIER AFRICAN GOLD PRODUCER Details by Mine and Project
Slide 24: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Quick Facts (on 100% basis) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 14.4Mt @ 2.5 g/t for 1.180Moz Côte d’Ivoire (incl. of Reserves) Inferred: 1.2Mt @ 1.7 g/t for 0.065Moz Ity Mine Reserves 13.2Mt @ 2.4 g/t for 1.027Moz Agbaou Up to 2.2 Mtpa Gravity/
Slide 25: Agbaou Mine – Q3-2016 Insights
Agbaou Mine – Côte d’Ivoire Q3-2016 Insights Production and AISC • Production increased over the previous Production, koz AISC, US$/oz quarter despite the negative impact of the +12% rainy season 52koz 49koz 44koz 46koz • Higher gold grades and gold-in-circuit 43koz balance optimization compensated
Slide 26: Agbaou Exploration
Agbaou Exploration • In 2016, exploration is focused on Agbaou Site Map the North pit and South pit extensions, the Agbaou South target, and on generating targets beyond the current resource boundaries • Drilling based on previous geophysics surveys and soil geochemistry results commenced in April 2
Slide 27: Agbaou Gold in soil anomalies
Agbaou Numerous Gold in soil anomalies over Mag > 50 ppb CREATING A PREMIER AFRICAN GOLD PRODUCER 26
Slide 28: Agbaou Exploration – 5 years targets
Agbaou Exploration – 5 years targets Côte d’Ivoire Auger & RC drilling CREATING A LOW COST AFRICAN GOLD PRODUCER 27
Slide 29: Agbaou – Exploration Potential
Agbaou – Exploration Potential Targeting discovery of between 0.5 to 1.5 Moz at an average cost of $25/oz over the next 5 years with a budget of ~$25M to extend mine life to 10 years* • 2013-2015 : Successful Drilling limited to infill drilling and immediate trend extension to renew resources and co
Slide 30: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quick Facts (on 100% basis) 80-90% Endeavour depending on pit, remainder Ownership government of Mali Resources M&I: 18.5Mt @ 3.1 g/t for 1.844Moz (incl. of Reserves) Inferred: 9.0Mt @ 3.6 g/t for 1.023Moz Mali Reserves 6.4Mt @ 3.5 g/t for 0.725Moz Processing Rate 1.4 Mtpa Gravi
Slide 31: Tabakoto Mine – Q3-2016 Insights
Tabakoto Mine – Mali Q3-2016 Insights Production and AISC • Improved mine performance with ~10% Production, koz AISC, US$/oz increase in ore tonnage extracted (for both open pit and underground) +2% 42koz 39koz 39koz ‒ First time mine extraction over- 36koz 37koz performs mill throughput in over a y
Slide 32: Tabakoto Mine – Exploration
Tabakoto Mine – Exploration Tabakoto Site Map • On the open-pit targets, a total of 72,900m of drilling (both RC and DD) and 1,311 Auger holes have been completed since the start of the year • The underground exploration programmes are ongoing with 22,400 metres of DD drilled so far this year at Tab
Slide 33: Tabakoto Surface Target priority ranking
Tabakoto Surface Target priority ranking Yatia SE Segala S 75 targets identifIed, 7 Priority 1 (2017) Areas under transported cover identifIed Reg. Explo Sanou Sira Dabo S Kreko Famakan Fougala Dioulafoundou S Sanou Sira S CREATING A PREMIER AFRICAN GOLD PRODUCER 32
Slide 34: KOFI Land Package Main Target Areas
KOFI Land Package Main Target Areas Auger drilling RC drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 33
Slide 35: Mali Exploration – Tabakoto and Kofi Land Packages
Mali Exploration – Tabakoto and Kofi Land Packages Targeting discovery of between 1.5 to 2.5 Moz at an average cost of $15/oz over the next 5 years with a budget of ~$30M* • Main focus is on finding new additional open pit resources within a short distance to the Tabakoto mill within within18 to 24
Slide 36: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Quick Facts (on 100% basis) 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% private Ownership Côte d’Ivoire investor Ity Mine Resources (HL + CIL) M&I: 61.4Mt @ 1.6 g/t for 3.106Moz (incl. of Reserves) Inferred: 14.1Mt @ 1.5 g/t for 0.687Moz Agbaou Mine Reserves (HL+CIL) 30.4Mt @
Slide 37: Ity Mine – Q3-2016 Insights
Ity Mine – Côte d’Ivoire Q3-2016 Insights Production and AISC • As guided, production decreased due to Production, koz AISC, US$/oz the impact of the rainy season: 22koz 21koz ‒ Lower Stacked Tonnage 19koz 17koz ‒ Decreased grades due to processed 15koz lower grade stockpiles during rainy season $77
Slide 38: Summary of Independent Feasibility Study for CIL Project
Summary of Independent Feasibility Study for CIL Project Independent CIL Feasibility Study prepared by: Ity CIL Project DFS highlights Lead Consultant: Life of Mine Production Strip ratio, w:o 2.1 Tonnes of ore processed, Mt 41.0 Mt Grade processed, Au g/t 1.42 g/t Contributions from: Gold content p
Slide 39: Significant Improvement Expected in Updated Feasibility Study
Significant Improvement Expected in Updated Feasibility Study H1-2017 update expected to include: • Recent high-grade Bakatouo and Colline Sud discoveries • Verse Ouest following recently completed infill drilling program • Additional Resource conversion at Daapleu and Mont Ity based planned infill
Slide 40: Additional Potential for Resource Conversion
Additional Potential for Resource Conversion Probable Reserves Indicated Resources Inferred Resources Potential includes: Deposits on a 100% basis. Resources are • The recently discovered inclusive of reserves. Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content Bakatouo and Colline Su
Slide 41: Ity Mine – High-grade Bakatouo discovery
Ity Mine – Exploration: High-grade Bakatouo discovery Indicated Inferred Cutoff Pit Shell September 2016 kt g/t Au koz kt g/t Au koz Grade g/t Constraint $ 4 807 3.07 474 188 2.87 70 0.50 $ 1 500 All Ore 4 632 3.13 466 645 2.95 61 0.50 $ 1 250 Oxide / Transitional 1 373 3.73 165 170 4.19 23 0.50 $ 1
Slide 42: Ity Mine – Exploration
Ity Mine – Exploration Ity Mine Drilling Targets • In 2016, exploration is focused on drilling previously identified oxide targets to prolong the life of the heap leach operation and drill new targets with the aim of delineating additional resources for the CIL project • High-grade maiden resource t
Slide 43: Ity: New High Quality Near Mine Exploration Targets
Ity: New High Quality Near Mine Exploration Targets CREATING A PREMIER AFRICAN GOLD PRODUCER 42
Slide 44: Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu
Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu Auger drilling Côte d’Ivoire 10 km radius RC drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 43
Slide 45: Ity Mine – 80km underexplored Birimian corridor
Ity Mine – Exploration 80km underexplored Birimian corridor Ity Mine Birimian corridor • Endeavour consolidated an 80km underexplored Birimian corridor on-trend with its Ity mine in Côte d’Ivoire • Significantly increased its holdings in the Ity district from 178km² to 664km2. • The new Floleu (104k
Slide 46: Greater Ity Regional Gold in Soil Anomalies
Greater Ity Regional Gold in Soil (> 100 ppb) Anomalies PR609 East Cavally Several Targets Birrimian meta sediments and green belt Gnamapleu Granite-Gneiss PR558 Le Plaque Area Several Targets No Geochemical data at all GUEYA area No Exploration Several targets GBAMPLEU Historical Sparse 400x100m Gr
Slide 47: Greater Ity: 2017–2021 Exploration Targets Toulepleu
Greater Ity: 2017 – 2021 Exploration Targets Toulepleu Auger drilling RC drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 46
Slide 48: How significant is Greater Ity area?
How significant is Greater Ity area? SEMAFO Mana (BF) vs EDV Greater Ity (CI) trend size comparison SEMAFO Controlled MANA TREND EDV Controlled Greater ITY TREND CREATING A PREMIER AFRICAN GOLD PRODUCER 47
Slide 49: Potential of Greater Ity Exploration
Potential of Greater Ity Exploration Targeting discovery of between 4 to 6 Moz at an average cost of $11/oz over the next 5 years with a budget of ~$55M* • Numerous high Potential targets have been identified within the Greater Ity area • The whole controlled 80 km trend will be covered by an airbor
Slide 50: Nzema Mine – Ghana
Nzema Mine – Ghana Quick Facts (on 100% basis) Ownership 90% EDV, 10% government of Ghana Resources M&I: 34.6Mt @ 1.3 g/t for 1.490Moz Ghana (incl. of Reserves) Inferred: 5.9Mt @ 1.3 g/t for 0.244Moz Reserves 4.7Mt @ 2.4 g/t for 0.356Moz Processing Rate 1.6 Mtpa Gravity/CIL plant Nzema Accra Gold Re
Slide 51: Nzema Mine – Q3-2016 Insights
Nzema Mine – Ghana Q3-2016 Insights Production and AISC • Improving production and AISC profile due to: Production, koz AISC, US$/oz – Continued ramp-up of purchased ore at 27koz better grades from more suppliers 23koz 24koz 20koz 20koz – Better grades from Adamus pit, ahead of cut-back completion –
Slide 52: Karma Project – Burkina Faso
Karma Project – Burkina Faso Karma Mine Quick Facts (1) (on 100% basis) Karma Project Ownership 90% True Gold, 10% Burkina Faso Resources M&I: 75.2Mt @ 1.08 g/t for 2.621Moz Ouagadougou (incl. of Reserves) Inferred: 65.3Mt @ 1.13 g/t for 2.362Moz Houndé Project Reserves 33.2Mt @ 0.89 g/t for 0.949Mo
Slide 53: Karma Update: Production and Cash Cost
Karma Update Production and Cash Cost Q3-2016 Insights Production, koz Total Cash Cost, US$/oz Commercial production declared as at October 1st 2016 7,381oz 6,854oz Production continued to ramp-up in Q3, currently at 6,026oz 6,174oz annual run-rate of roughly 90koz $812 Lower production costs
Slide 54: Karma - Exploration
Karma - Exploration • Target: +10 year mine life Karma Site Map by year end • 60,000m program at Kao North started in July, with the aim of extending mine life by +2.5 years • Program expected to be completed in Q4-2016 CREATING A PREMIER AFRICAN GOLD PRODUCER 53
Slide 55: Kao North H2-2016 Resources Drilling
KAO NORTH H2-2016 RESOURCES DRILLING 45,000m program has been recently been completed with the target of increasing mine life by 2.5 years and reach +10 years by year end A ’ A Selected intercepts shown above. Full results are currently being analyzed. CREATING A PREMIER AFRICAN GOLD PRODUCER 54
Slide 56: Kao North 2016 Drilling Section
KAO North 2016 Drilling Section Infill Drilling Confirms Mineralization Continuity A A’ CREATING A PREMIER AFRICAN GOLD PRODUCER 55
Slide 57: Yabonsgo is one of our next priority targets
2017 Targets: YABONSGO Target (<10km from GG1) Yabonsgo is one of our next priority target RC AC CREATING A PREMIER AFRICAN GOLD PRODUCER 56
Slide 58: Rambo West is a near-mine obvious target
2017 Targets: Rambo West Rambo West is a near-mine obvious target Granodiorite AC RC sediments CREATING A PREMIER AFRICAN GOLD PRODUCER 57
Slide 59: Karma Exploration
Karma Exploration Targeting discovery of between 0.5 to 1.0 Moz at an average cost of $20/oz over the next 5 years with a budget of ~$15M to extend mine life to 15 years* • New geological understanding and mapping in less than 6 months • 45,000 m drilling campaign already performed on Kao North to a
Slide 60: Houndé Project – Burkina Faso
Houndé Project – Burkina Faso Quick Facts (on 100% basis) Karma Project Ownership 90% EDV, 10% Burkina Faso Status Fully permitted, construction launched Ouagadougou Production start date First gold pour expected Q4 2017 Burkina Faso Houndé Project Resources M&I: 37.9Mt @ 2.1 g/t for 2.551Moz (incl.
Slide 61: Houndé Construction is progressing on-time and on-budget
Houndé Construction is progressing on-time and on-budget Significant achievements to date: Procurement is approximately 60% complete Procurement is approximately 60% complete (excluding contingency) and construction is 22% complete overall $328m Full back-up power station has been tendered with
Slide 62: Potential to Significantly Extend Houndé's Mine Life
Houndé Exploration Upside • The Houndé exploration tenement Exploration Targets in Proximity to the Planned Mill covers +1,075km² within Burkina Faso’s highly prospective Birimian belt • Historically, exploration focus mainly on the Vindaloo trends • At least 15 other significant targets were identi
Slide 63: Houndé Exploration: 2017-2021 Main Promising Targets
Houndé Exploration: 2017-2021 Main Promising Targets RC drilling Auger drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 62
Slide 64: Houndé Exploration – Burkina Faso
Houndé Exploration – Burkina Faso Targeting discovery of between 2.5 to 3.5 Moz at an average cost of $15/oz over the next 5 years with a budget of ~$45M to extend mine life to +15 years* • Our Houndé exploration portfolio is located within one of the most prospective areas of the Birimian greenston
Slide 65: Appendix
CREATING A PREMIER AFRICAN GOLD PRODUCER Appendix
Slide 66: Endeavour is backed by La Mancha
Endeavour is backed by La Mancha Sawiris family’s mining investment vehicle Long-term growth supportive investor 31% 30% with focus on creating regional leaders holding holding The Sawiris family is present across various sectors and businesses, ranging from construction and fertilizers to real esta
Slide 67: 2016 Guidance
2016 Guidance 2016 Production 2016 AISC (in US$ millions) Guidance (in koz on a 100% basis) Guidance Guidance Revenue (based on production guidance range mid-point) 665 Agbaou 180 - 195 550 - 600 AISC costs (based on AISC guidance range mid-point) (481) Tabakoto 155 - 175 970 - 1,050 All-in sustaini
Slide 68: Production increased in Q3 with larger lift expected in Q4
Production increased in Q3 with larger lift expected in Q4 Group Production From Continuing Operations, koz Production by Mine, koz Q4 Trend (including Karma) 52 49 +36% 46 43 42 146koz 39 39 138koz 37 122koz 123koz 108koz 23 24 22 21 20 20 19 20 15 12 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 69: Continued AISC reduction to low-end of guidance
Continued AISC reduction to low-end of guidance Continued AISC reduction, US$/oz AISC by mine, US$/oz Q4 Trend 1,137 1,266 1,158 1,133 1,136 1,119 1,071 1,071 All-in Sustaining Costs, US$/oz 1,161 1,010 946 775 934 Guidance 710 724 898 908 901 898 890 889 920 621 537 525 525 550 870 826 Cash Cost, U
Slide 70: Cash flow generation is on-track to meet guidance
Cash flow generation is on-track to meet guidance First 9 months ended 2016 2015 Free Cash Flow: +40% YTD vs 2015, (All amounts exclude Youga unless otherwise indicated) US$m US$/oz US$m US$/oz excluding the net positive impact of Karma which will start its commercial Gold sold, koz 376 327 produc
Slide 71: Net Free Cash Flow Breakdown
Net Free Cash Flow Breakdown First 9 months ended US$m 2016 2015 Insights: Free cash flow (before Hounde, Karma, working capital, tax & financing 1. Houndé spend fully on track with capex 100 72 costs) program Hounde project costs 1 (45) (5) Karma proceeds from sales less mining costs capitalized an
Slide 72: Adjusted Net Earnings Breakdown
Adjusted Net Earnings Breakdown Insights: Nine months ended (US$m) 30-Sep-16 30-Sep-15 1. Youga results are removed due to Total net earnings 17 57 disposal of the mine Youga discontinued operations 1 3 (9) 2. Legacy gold hedge caused losses Loss (gain) on financial instruments 2 20 (3) due to incre
Slide 73: Production and Cost Details by Mine (quarterly)
Production and Cost Details by Mine On a quarterly basis Agbaou Nzema Tabakoto Ity (on a 100% basis) Unit Q3-2016 Q2-2016 Q3-2015 Q3-2016 Q2-2016 Q3-2015 Q3-2016 Q2-2016 Q3 2015 Q3-2016 Q2 2016 Physicals Total tonnes mined – OP1 000t 6,877 5,918 5,037 2,848 1,852 1,323 1,569 1,704 2,129 948 1,584 To
Slide 74: Production and Cost Details by Mine (nine months)
Production and Cost Details by Mine For the 9 months period ended 2016 and 2015 Agbaou Nzema Tabakoto Ity3 (on a 100% basis) Unit 9-months 2016 9-months 2015 9-months 2016 9-months 2015 9-months 2016 9-months 2015 9-months 2016 Physicals Total tonnes mined – OP1 000t 18,864 15,331 6,410 6,707 5,505
Slide 75: Reserve and Resource Table
Reserve and Resource Table As at December 31, 2015 P&P Reserves M&I Resources Inferred Resources Resources inclusive of reserves (Mt) Au g/t (koz) (Mt) Au g/t (koz) (Mt) Au g/t (koz) Agbaou Mine 13.2 2.42 1,027 14.4 2.54 1,180 1.2 1.71 65 Tabakoto Mine 6.4 3.50 725 18.5 3.09 1,844 9.0 3.55 1,023 Nze
Slide 76: Gold Revenue Protection Program Limit Debt Drawdown
Gold Revenue Protection Program Limit Debt Drawdown Gold Revenue Protection Program : Gold Option Collar Strategy • Gold Option Contracts aim to increase the Gold price in US$/oz 1,500 Upside on 50% of certainty of the free cash flow during the production construction period Objective of using fre
Slide 77: Short Mine Lives Due To Lack of Exploration, Not Potential!
Short Mine Lives Due To Lack of Exploration, Not Potential! Endeavour spent less than peers on exploration… … As a result it suffers from shorter mine lives Exploration spend, $/oz produced Exploration spend, $m/year Average Mine Life of operating assets $72/oz $70/oz 10 10 9 $59/oz 8 Average $51/oz
Slide 78: Previous Exploration Strategy Was Based On Converting Inferred Resources
Previous Exploration Strategy Was Based On Converting Inferred Resources Inferred Resources Evolution (excluding acquisitions) ‒ Previous 3 years focused on 2013 2014 2015 replacing depletion/production by drilling in-mine or near- mine already existing inferred 1,693 resources for conversion to 1,6
Slide 79: Exploration Became a Core Focus with New Structure in Place
Exploration Became a Core Focus in 2016 with New Structure in Place Abidjan based Highly experienced team CEO – Strong knowledge of West African Birimian belts EVP EVP – Senior staff from BRGM, Randgold, COO Exploration & Growth Projects Iamgold, Areva, La Mancha, etc CI Government – 20 Seniors Geol
Slide 80: Screening and Ranking Methodology
Screening and Ranking Methodology Exhaustive screening of all Strategic >200 potential Prioritization targets First Conservative filtering Approach Exploration budget required per target to 130+ target screened reach Indicated through multi-criteria resource level status data analysis Quantifying mi
Slide 81: Methodic and Exhaustive Review to Quantify and Rank Potential
Methodic and Exhaustive Review to Quantify and Rank Potential • Visit to all sites with Exploration Managers/Chef-Senior Geologists, EDV experts • 6 months detailed review of all past exploration, synthesis of all available and validated data in database • All Geochem (Stream and Soil), all geophysi
Slide 82: Further Selection, Ranking and Risk Evaluation
Further Selection, Ranking and Risk Evaluation • Each selected target (~40) was risked and characterized by a Probability of Occurrence (POO), based on geological confidence/structural understanding/ type of expected mineralization/existing positive intercepts/trend extension, strong and coherent go
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