Slide 1: Corporate Presentation September 2016
CREATING A PREMIER AFRICAN GOLD PRODUCER Corporate Presentation September 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 4 Producing Mines at Low AISC SENEGAL – 2015 production: 517 koz Tabakoto Mine MALI Karma – 2016E production: 575-610 koz GAMBIA Project – 2015 AISC: US$922/oz BURKINA FASO GUINEA- Bamako – 2016E AISC: US$870 - 920/oz BISSAU Ouagadougou – Total Reserves of 6.7 Moz GUINEA Ho
Slide 4: Company Profile
Company Profile Share Price Performance Ticker 7 00 0 000 TSX:EDV 30 Volume, shares EDV share price, C$ Shares in Issue 93.0 m Fully Diluted 6 00 0 000 95.4 m 25 Share price C$23.26 Market cap 5 00 0 000 US$1,640m Net Cash US$21m 20 4 00 0 000 15 3 00 0 000 10 2 00 0 000 1 00 0 000 5 0 0 Jan-16 Feb-
Slide 5: Hands-on Management Model
Hands-on Management Model MANAGEMENT FOCUS LEAN EXECUTIVE MANAGEMENT TEAM Sebastien de Montessus – CEO & President & Director • Former CEO of the La Mancha Group (2012-2015) • Former member of the Executive Board & Group Deputy CEO of AREVA Group & CEO of AREVA Mining • Investment banker at Morgan S
Slide 6: Internal Growth to Create a Premier African Gold Producer
Internal Growth to Create a Premier African Gold Producer with Low-cost and Long Life Mines Production Profile (100%) and AISC (US$/oz) 1 000 Strategic Milestones $1 20 1 137 +900koz 900 for 2018-2020 $1 10 800 + 900 koz $1 010 ANNUAL PRODUCTION $1 00 700 600 < 800$/oz $922 575-610koz $900 ALL IN CA
Slide 7: 4 Strategic Levers
Strategic Objective: Create a Premier African Gold Producer with Low-cost and Long Life Mines 4 Strategic Levers 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCK EXPLORATION VALUE 4 PRO-ACTIVE PORTFOLIO MANAGEMENT Benchmark of West-African producers AISC, US$/oz 1,100 Gold Fields 1,050 IAMGOL
Slide 8: Executing Our Internal Growth Strategy
Executing Our Internal Growth Strategy Increase Overall Quality of our Portfolio AISC, US$/oz Pro-active Portfolio Management Overview $1,100/oz Decreased costs from >1,300/oz $1,050/oz Youga (sold) (40-45koz) Nzema $1,000/oz (90-100koz) Optimization Cut-back Tabakoto + exploration $950/oz (155-175k
Slide 9: Creating one of West-Africa's lowest cost asset portfolios
Creating one of West-Africa’s lowest cost asset portfolios West African Mines Benchmark Lowest cost mines Highest cost mines 600 Tarkwa 550 500 Akyem 450 Essekane Production, kozpa 400 350 Loulo Ahafo 300 Gounkoto Mana Siguiri 250 Bissa Chirano Houndé Tongon Tasiast Lefa Iduapriem 200 Syama Agbaou E
Slide 10: Operational Excellence
1 OPERATIONAL EXCELLENCE Proven track record of operating in West-Africa 1) Increased Production 2) Decreased All-in Sustaining Costs Production, on a 100% basis in koz AISC, in US$/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 11: 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 12: Houndé is positioned to be Endeavour's flagship low cost mine
2 PROJECT DEVELOPMENT Houndé is positioned to be Endeavour’s flagship low cost mine • Construction started in April with Essakane first gold pour expected in Q4-2017 Inata (IAMGOLD) (Avocet) Taparko - Construction is progressing on-time (Nordgold) Karma and on-budget Bissa Hill (Nordgold) - Procurem
Slide 13: Ity CIL Project DFS Expected in Q4-2016
2 PROJECT DEVELOPMENT Ity CIL Project DFS Expected in Q4-2016 Resource and CIL plant size evolution • Ity has produced more than 1.2Moz to date Inferred Resources, Moz Measured and Indicated Resources, Moz CIL mill size, Mtpa • $30m exploration program between 2012-2015 DFS significantly increased r
Slide 14: Unlock Exploration Value: Long-term Strategic Review Expected in Q4-2016
3 UNLOCK EXPLORATION VALUE: Long-term Strategic Review Expected in Q4-2016 Strategically positioned to become one of the largest producers with the largest exploration package in both Côte d’Ivoire and Burkina Faso, which host +50% of the Birimian belt West African Birimian Belt % holding and findin
Slide 15: Opportunistic M&A Approach to improve portfolio quality
4 PRO-ACTIVE PORTFOLIO MANAGEMENT Opportunistic M&A Approach to improve portfolio quality • Priority is Internal growth before 2015-2016 transactions improved quality of portfolio M&A consideration • M&A is driven by value creation Youga Mine and cash-flow per share increase, Strategic Partnership d
Slide 16: Healthy Financial Structure
HEALTHY FINANCIAL STRUCTURE Deleverage Balance Sheet… Now Cash Positive with Significant Capacity to Fund Growth Liquidity and Financing Sources as of June 30th, 2016 Significantly increased cash position (US$m) $238m $134m $110m $50m Equipment $62m Undrawn RCF Financing of $150m 2014 2015 End of Ju
Slide 17: Key Value Drivers H1-2016 Achievements
Scorecard of value drivers set at the beginning of the year Key Value Drivers H1-2016 Achievements 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 operat
Slide 18: Investment Highlights
Investment Highlights Premier African gold producer with focus on building a high quality portfolio Established track record of building mines on time and on budget in West Africa Efficient operators with focus on lowering costs Positioned to unlock significant exploration potential across t
Slide 19: 2016 Outlook and Performance
CREATING A PREMIER AFRICAN GOLD PRODUCER 2016 Outlook and Performance 18
Slide 20: H1-2016 group level performance in line with full year guidance
H1-2016 group level performance in line with full year guidance H1-2016 Initial 2016 Revised 2016 Comment Actual Guidance Guidance Initial guidance confirmed thanks to 270koz Agbaou’s strong performance Production (incl. 12 koz for 535-560koz 575 - 610koz Karma) Increasing guidance with the addi
Slide 21: Production Guidance Revised Upwards with addition of Karma
Production Guidance Revised Upwards with addition of Karma H1-2016 Initial 2016 Revised 2016 (in koz on a 100% basis) Actual Guidance Guidance Agbaou 89 165 - 175 180 - 195 Tabakoto 78 155 - 175 155 - 175 Nzema 40 110 - 130 90 - 100 Ity 43 65 - 75 70 - 80 Youga 8 7 - 8 7 - 8 Sub-total 258 502 - 563
Slide 22: AISC group objective remains unchanged
AISC group objective remains unchanged H1-2016 Initial 2016 Revised 2016 Insights: (in $/oz) Guidance Guidance Agbaou 525 650 - 700 550 - 600 Group AISC remains in-line Tabakoto 1,066 920 - 970 970 - 1,050 with initial guidance due to Nzema 1,212 970 - 1,020 1,050 - 1,125 Agbaou out-performance It
Slide 23: Revised Guidance for FCF @ 1,250 for H2-2016
Revised Guidance for FCF @ 1,250 for H2-2016 (in US$ millions) Initial Guidance Revised Guidance Insights: Revenue (based on production guidance range mid-point) 630 665 AISC costs (based on AISC guidance range mid-point) (492) (481) Free cash flow before Houndé All-in sustaining margin 138 185 Ag
Slide 24: Details by Mine and Project
CREATING A PREMIER AFRICAN GOLD PRODUCER Details by Mine and Project 23
Slide 25: 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 26: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire H1-2016 Insights Production and AISC • Optimized mill throughput, running Production, koz AISC, US$/oz significantly above nameplate capacity, 52koz benefiting production in Q2 vs Q1 45koz 44koz 46koz 43koz 41koz • Ongoing low AISC, well below its $650-700/oz guidance, be
Slide 27: Agbaou Exploration
Agbaou Exploration • In 2016, exploration is focused on the Agbaou Site Map North pit and South pit extensions, the Agbaou South target, and on generating targets beyond the current resource boundaries • Following resolution of ground reclamation and compensation issues with local communities, drill
Slide 28: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quick Facts (on 100% basis) 80-90% Endeavour depending on pit, remainder Ownership government of Mali Resources M&I: 18.5Mt @ 3.1 g/t for 1.844Moz (incl. of Reserves) Inferred: 9.0Mt @ 3.6 g/t for 1.023Moz Mali Reserves 6.4Mt @ 3.5 g/t for 0.725Moz Processing Rate 1.4 Mtpa Gravi
Slide 29: Tabakoto Mine – Mali
Tabakoto Mine – Mali H1-2016 Insights Production and AISC • Steady production in Q2 compared to Q1 Production, koz AISC, US$/oz despite 8 days general strike against the 40koz 42koz 39koz 39koz State 34koz 36koz • Good performance of Segala and Kofi positively impacting grade milled $1,127 $1,119 $1
Slide 30: Tabakoto Mine – Exploration
Tabakoto Mine – Exploration Tabakoto Site Map • An exploration program has been launched in early 2016 to extend the mine lives of the current underground mines and test new open pit potential • At Kofi B North a 244 hole RC drilling program and a 1,311 hole auger drilling program have been complete
Slide 31: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Quick Facts (on 100% basis) 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% private Ownership Côte d’Ivoire investor Ity Mine Resources (HL + CIL) M&I: 61.4Mt @ 1.6 g/t for 3.106Moz (incl. of Reserves) Inferred: 14.1Mt @ 1.5 g/t for 0.687Moz Agbaou Mine Reserves (HL+CIL) 30.4Mt @
Slide 32: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire H1-2016 Insights Production and AISC • Similar level of production in Q2 Production, koz AISC, US$/oz compared to Q1 as production benefited 24koz 22koz from the cyclical nature of heap leach 21koz 21koz 19koz processing recovery rates 17koz • Cash Cost remained stable while
Slide 33: 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 • The Bakatouo discovery annou
Slide 34: Ity Mine – Exploration: High-grade Bakatouo discovery
Ity Mine – Exploration: High-grade Bakatouo discovery cont. • Mineralization is very close to surface and occurs over 800m along strike and 250m across strike, while the extensions remain open at depth and along strike • An additional drilling campaign is expected to commence in November on Bakatouo
Slide 35: Ity Mine – Exploration: High-grade Bakatouo discovery
Ity Mine – Exploration: High-grade Bakatouo discovery cont. Some of the selected best intercepts include (true width): - BK16-096: 9.65m at 27.7 g/t including 1.13m at 133.7 g/t - BK16-098: 5.76m at 17.9g/t including 0.54m at 121.9 g/t - BK16-092: 17.48 m at 6.4g/t including 1.08m at 59.1g/t - BK16-
Slide 36: Ity Mine – Exploration
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 37: 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 38: Nzema Mine – Ghana
Nzema Mine – Ghana H1-2016 Insights Production and AISC • Q2 production was similar to Q1, due to lower Production, koz AISC, US$/oz volumes and grade from purchased ore 33koz suppliers 27koz 27koz • Owner mining is performing slightly above 23koz 20koz 20koz expectations • AISC impacted by processi
Slide 39: 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 40: Karma Update
Karma Update Endeavour’s construction, operations, and exploration Mining +14% positive reconciliation on ounces teams further reviewed and re-validated the acquisition Current mining costs of $1.4/t, roughly 15% below DFS case assumptions following the close of the transaction Outlook: and have
Slide 41: Karma - Exploration
Karma - Exploration Karma Site Map • Target: +10 year mine life by year end • Undertaking a 60,000m program at Kao North, with the aim of extending sterilization and mine life by +2.5 years • Highly prolific region: – One of the largest gold-in-soil anomalies in the country – In situ anomaly sits ab
Slide 42: 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 43: Houndé Update
Houndé Update Significant achievements to date: Procurement is approximately 45% complete • Construction is progressing on-time and on-budget • Procurement is approximately 45% complete $328m • CIL ring beam concrete pour achieved early-August, two weeks ahead of schedule $150m • Mining fleet equipm
Slide 44: Potential to Significantly Extend Houndé's Mine Life
Houndé Exploration Upside • The Houndé exploration tenement Exploration Targets in Proximity to the Planned Mill covers +1,075km² within Burkina Faso’s highly prospective Birimian belt • Historically, exploration focus mainly on the Vindaloo trends • At least 15 other significant targets were identi
Slide 45: Appendix
CREATING A PREMIER AFRICAN GOLD PRODUCER Appendix 44
Slide 46: Endeavour is backed by La Mancha
Endeavour is backed by La Mancha Sawiris family’s mining investment vehicle Long-term growth supportive investor 31% 30% with focus on creating regional leaders holding holding The Sawiris family is present across various sectors and businesses, ranging from construction and fertilizers to real esta
Slide 47: Initial production guidance remains on-track with improvements expected in H2-2016
Initial production guidance remains on-track with improvements expected in H2-2016 Group Production from continuing operations, koz Production by mine, koz H2 Trend 46 43 138koz 39 39 122koz 123koz Karma:12 113koz 108koz 106koz 22 21 20 20 126 12 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1-15 Q2-15 Q3-15 Q4-15
Slide 48: Continued AISC reduction
Continued AISC reduction Continued AISC reduction, US$/oz AISC by mine, US$/oz H2 Trend 1,137 1,266 All-in Sustaining Costs, US$/oz 1,158 1,071 1,062 1,010 946 934 898 908 901 775 890 889 920 710 870 826 525 525 Cash Cost, US$/oz 732 740 710 698 690 674 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 FY2013 FY2014 Q1-15 Q2
Slide 49: Cash Flow generation is on track to meet initial guidance
Cash Flow generation is on track to meet initial guidance with increased production expected in H2 and AISC in-line On track to meet initial guidance Cash Flow generation improved Free cash flow (before WC, taxes and financing costs, excluding H1-2016 H1-2015 Houndé capex and Karma) US$m US$/oz US$m
Slide 50: Net Free Cash Flow Breakdown
Net Free Cash Flow Breakdown $(000's) H1-2016 H1-2015 Insights: Free cash flow (before WC, taxes and financing costs, Houndé capex and Karma) 59 47 Houndé project cash-out (15) (2) 1. + net proceeds from sales +$17m - mining costs capitalized ($9m) Karma cashflow 1 (2) - - capital expenditure ($10m)
Slide 51: Adjusted Net Earnings Breakdown
Adjusted Net Earnings Breakdown In US$m H1-2016 H1-2015 Insights: Total net and comprehensive earnings (8) 51 1. Includes hedge settlements, 1 realized FX, restricted cash (Gain) loss on financial instruments 24 (4) movements, other adjustments Stock-based payments 2 6 2 2. Increased due to mark-to-
Slide 52: Production and Cost Details by Mine
Production and Cost Details by Mine Agbaou Nzema Tabakoto Ity3 (on a 100% basis) Unit Q2-2016 Q1 2016 Q2 2015 Q2-2016 Q1 2016 Q2 2015 Q2-2016 Q1 2016 Q2 2015 Q2-2016 Q1 2016 Physicals Total tonnes mined – OP1 000t 5,918 6,071 5,075 1,852 1,710 2,450 1,704 2,232 2,480 1,584 2,098 Total ore tonnes – O
Slide 53: 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 54: Gold Revenue Protection Program: Gold Option Collar Strategy
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