Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (October 2017)
97 slides from Endeavour Mining's investor presentation, October 2017
Slide 1: Corporate Presentation October 2017
Corporate Presentation › October 2017
Slide 2: Disclaimer & Forward Looking Statements
CORPORATE PRESENTATION 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 re
Slide 3: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 2017 OUTLOOK & Q2 RESULTS 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
Slide 4: Endeavour Mining Overview
CORPORATE OVERVIEW ENDEAVOUR MINING OVERVIEW A premier African gold producer with a strong presence in West-Africa SENEGAL MALI Tabakoto Mine Karma GAMBIA Mine BURKINA FASO 4,000 GUINEA- Bamako EMPLOYEES WORLDWIDE BISSAU Ouagadougou Kalana GUINEA Mine Houndé Project CÔTE SIERRA D’IVOIRE $500-530 Koz
Slide 5: Company Profile
CORPORATE OVERVIEW COMPANY PROFILE Shareholder Distribution Ticker TSX:EDV Shares in Issue* 107 m RETAIL LA MANCHA MANAGEMENT INSTITUTIONAL Share price as at Sept. 20th C$23.13 Europe Market cap* US$2.0B Other Net Debt as at June 30th US$183m *Inclusive of the Avnel acquisition and LM placement (exp
Slide 6: Investment Highlights
CORPORATE OVERVIEW INVESTMENT HIGHLIGHTS Endeavour offers exposure to both near and long-term growth potential, in addition to current production Immediate Near-Term Long-Term Cashflow Growth Upside from from from PRODUCTION PROJECTS EXPLORATION with an accomplished management team and a healthy bal
Slide 7: Developing Projects to Improve the Portfolio Quality
CORPORATE OVERVIEW DEVELOPING PROJECTS TO IMPROVE THE PORTFOLIO QUALITY Key objective is to reduce the group’s AISC and extending mine lives STRATEGIC OBJECTIVE $1,317/oz For 2019 +900koz +900koz +800koz 800-900koz $1,010/oz 800-900koz $922/oz Annual production $895/oz 584koz <$800/oz 517koz 462koz
Slide 8: Building a Premier African Gold Producer
CORPORATE OVERVIEW BUILDING A PREMIER AFRICAN GOLD PRODUCER 4 Strategic Levers to Achieve Objectives STRATEGIC OBJECTIVES STRATEGIC LEVERS +800koz Annual production ≤800$/oz All-in Sustaining cost 10+ year Mine life 8
Slide 9: Operational Excellence
CORPORATE OVERVIEW OPERATIONAL EXCELLENCE 1 Levering Operating Synergies in West Africa Agbaou Ownership: 85% Mine/mill type: Open Pit / CIL Plant Reserves: 0.9Moz 2017E Production: 175-180koz 2017E AISC: $660-$700/oz Ity Heap Leach Ownership: 80% Mine/mill type: Open pit / Heap Leach Reserves: 0.3M
Slide 10: Operational Excellence: Hands-on Management Model
CORPORATE OVERVIEW OPERATIONAL EXCELLENCE 1 Hands-on Management Model With Teams Close to Operations London Based Management Focus Sebastien de Montessus CEO & Director Vincent Benoit FUNCTIONS: EVP CFO & Corporate • Finance Development • Investor relations CASH FLOW SAFETY Morgan Carroll EVP Corpor
Slide 11: Safety Is Our First Priority
CORPORATE OVERVIEW 1 SAFETY IS OUR FIRST PRIORITY Q2-2017 was successfully completed with no LTIs Lost Time Injury Frequency Rate 0.79 8.4m Man Hours for operations in H1-17 with only 1 LTI 0.40 0.31 0.00 0.00 +6.3m Man Hours on Peer Group FY2016 Last Houndé Agbaou Average 12-months (since start) Ho
Slide 12: Launched Improvements Across the Group
CORPORATE OVERVIEW 1 LAUNCHED IMPROVEMENTS ACROSS THE GROUP Transforming From Stand Alone Units To Integrated Group TABAKOTO ZERO BASE CSR GOVERNANCE PLAN GROWING COST LOCAL REDUCTION TALENT FOCUSED ON OPERATIONAL EXCELLENCE WORKING IT SUPPLY CAPITAL SYSTEMS CHAIN 12
Slide 13: Operational Excellence: Track Record of Meeting Guidance
CORPORATE OVERVIEW 1 OPERATIONAL EXCELLENCE Proven track record of meeting guidance Production, on a 100% basis in koz All-in Sustaining Costs, in $/oz Guidance Guidance Hounde 1,137 500-530 from cont. 584 466 517 operations 324 1,010 922 855-900 Nzema 884 2013 2014 2015 2016 2017 Guidance 2013 2014
Slide 14: Project Development
CORPORATE OVERVIEW PROJECT DEVELOPMENT 2 Strong pipeline with next project expected to be sourced by exploration +235koz at AISC Houndé Houndé Construction of <$650/oz undé, Burkina Faso +235koz at AISC ITY CIL Ity CIL Construction of <$500/oz (CIL), Côte d'Ivoire KALANA +150koz at AISC DFS Optimiza
Slide 15: Project Development: Houndé
CORPORATE OVERVIEW 2 PROJECT DEVELOPMENT Houndé is positioned to be Endeavour’s flagship low cost mine Essakane (IAMGOLD) Inata Taparko Construction progress (Avocet) (Nordgold) Karma › Construction started in April 2016 Bissa Hill (Nordgold) › Progressing on-time first gold expected in Mana Burkina
Slide 16: Ity CIL Project to Become Our Next Flagship Asset
CORPORATE OVERVIEW 2 PROJECT DEVELOPMENT Ity CIL Project construction launched in September 2017 Long-life Low Cost Project › Long 14-year reserves mine life › Low AISC of $494/oz over first 5 years › Solid production of 235kozpa over first 5 years Production Profile Robust Project Economics Product
Slide 17: Kalana Is a High-Quality Project
CORPORATE OVERVIEW 2 PROJECT DEVELOPMENT Kalana is a high-quality project with significant optimization potential Feasibility-stage project › 1.2Mtpa CIL plant › Single open-pit reserve of 1.96Moz at Mali 2.8 g/t › 18-year mine life › Low AISC cost operation with $730/oz Tabakoto Mine Bamako Kalana
Slide 18: Unlock Exploration Value
CORPORATE OVERVIEW 3 UNLOCK EXPLORATION VALUE Amongst Largest and Most Promising Portfolios in West Africa 15.4Moz M&I RESOURCES 18
Slide 19: Conservative Approach
CORPORATE OVERVIEW 3 UNLOCK EXPLORATION VALUE Screening And Ranking Methodology Exhaustive screening of all Strategic >200 potential Prioritization targets First CONSERVATIVE filtering APPROACH Exploration budget SIMILAR TO THAT USED IN required per target to 130+ target screened OIL & GAS INDUSTRY
Slide 20: Unlock Exploration Value: Delivering Against 5-year Strategy
CORPORATE OVERVIEW 3 UNLOCK EXPLORATION VALUE Starting To Deliver Our Against 5-year Strategy 4.0-6.0Moz 4.0-6.0Moz 10-15Moz 5-year Indicated 2.5-3.5Moz Resource Discovery Target 1.5-2.5Moz 0.5-1.5Moz 0.5-1.5Moz 1.5Moz 0.5-1.0Moz Discovered Greater Ity Houndé Tabakoto Agbaou Karma Côte d’Ivoire Regi
Slide 21: Exploration Strategic Review Output: Low Discovery Costs
CORPORATE OVERVIEW UNLOCK EXPLORATION VALUE 3 Exploration Strategic Review Output: Low Discovery Costs Exploration budget Average discovery cost $55m $35-40m $45m Annual budget $30m $25m $25/oz $15m $10m <$15/oz $15/oz $15/oz $11/oz Anticipated average $20/oz $13/oz discovery costs Greater Ity Hound
Slide 22: Exploration Strategic Review Output: Priorities
CORPORATE OVERVIEW 3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: What are the priorities? PRIORITIES: PRIORITIES: i. Tabakoto due to its short mine life i. Ity Greater Area ii. Agbaou to extend oxide mine life ii. Houndé to prolong mine life iii. Ity to extend HL and Improve CIL ca
Slide 23: Portfolio & Balance Sheet Management
CORPORATE OVERVIEW 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Increase Overall Quality of our Portfolio PORTFOLIO IN 2015 PORTFOLIO IN 2017 AISC, $/oz $1,200 $1,150 AISC, $/oz $1,100 $1,200 $1,050 $1,050 $1,000 Youga Tabakoto Tabakoto Assessment $950 expected by mid-2018 Nzema $900 $850 $850 Agbaou $800
Slide 24: All-in Sustaining Margin Now More Diversified
CORPORATE OVERVIEW 4 PORTFOLIO & BALANCE SHEET MANAGEMENT All-in Sustaining Margin Now More Diversified All-In Sustaining Margin From Mines Which Excludes Corporate And Exploration Costs Agbaou Nzema Tabakoto Ity Karma Youga H1-2015 H1-2016 H1-2017 63% 65% 14% 11% $84mZ $95m $116m 46% 0% 17% 10% 12%
Slide 25: Significant Headroom to Fund Projects
ITYCORPORATE CIL OPTIMIZATION STUDY OVERVIEW 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Significant headroom to fund projects $495m Ity Capex $150m $215m Undrawn $130m RCF Hounde remaining capex $85m Cash (as at June 30, 2017) Liquidity Sources RCF Nzema La Mancha Ity Equipment FCF before Sources of Gro
Slide 26: Key 2016 Achievements
CORPORATE OVERVIEW KEY 2016 ACHIEVEMENTS › 5-year strategy validated by the board RESET › Focused on improve the quality of our portfolio, with mines with AISC <$850/oz and mine life +10 years STRATEGY › 4 key pillars: 1) Operational Excellence, 2) Project Development, 3) Unlock Exploration, 4) Port
Slide 27: Upcoming Catalysts
CORPORATE OVERVIEW UPCOMING CATALYSTS 2017 OUTLOOK: › On-track to meet guidance Immediate › Hounde expected to contribute to production in Q4 Cashflow from Production › Q3-2017: Ity Optimization Study and investment decision announced Near-Term › Q3-2017: Karma mill front-end optimization › Q4-2017:
Slide 28: Table of Contents
TABLE OF CONTENTS 1 STRATEGIC OVERVIEW 2 2017 OUTLOOK & Q2 RESULTS 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
Slide 29: 2017 Guidance
2017 OUTLOOK 2017 GUIDANCE INSIGHTS: Production Guidance, koz › Production is expected to increase in 2017 on a 100% basis INITIAL 2017 GUIDANCE UPDATED 2017 GUIDANCE as improvements at Karma are expected to Agbaou 175,000 - 180,000 175,000 - 180,000 more than compensate for Agbaou Tabakoto 150,000
Slide 30: 2017 Guidance: Free Cash Flow
2017 OUTLOOK 2017 GUIDANCE Free Cash Flow Guidance Capital Guidance, $m Exploration Spend Guidance, $m Sustaining Non-Sustaining Growth AREAS OF FOCUS H1-2017 FY-2017 GUIDANCE In US$m Capital Capital Projects Agbaou 3.1 7.0 Agbaou 20 - - Tabakoto 5.2 9.0 Tabakoto 20 - - Nzema - - Ity 10 4 10 Ity 5.9
Slide 31: All Mines on Track to Meet Guidance
Q2-2017 RESULTS ALL MINES ON TRACK TO MEET GUIDANCE 175koz 159koz 152koz 146koz 138koz $901/oz $898/oz $905/oz $897/oz $855/oz Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Production, koz AISC, $/oz INSIGHTS BY MINE AGBAOU TABAKOTO NZEMA ITY KARMA 43koz 41koz 26koz 27koz 32koz 42koz 45koz 24koz $985/oz 16koz $975/
Slide 32: Margins Increased Despite Increased Exploration
Q2-2017 RESULTS MARGINS INCREASED DESPITE INCREASED EXPLORATION Increased contributions from Karma, Nzema and Tabakoto PRODUCTION VARIATION 311koz H1-16 vs H1-17 Bridge, in koz +6koz (13koz) +44koz 270koz (8koz) +13koz (2koz) AISC: +20% AISC: -20% AISC: -5% AISC: +13% H1-2016 Youga Agbaou Nzema Taba
Slide 33: Free Cash Flow from Operations
Q2-2017 RESULTS FREE CASH FLOW FROM OPERATIONS Cash flow before growth projects increased, despite increased exploration SIX MONTHS ENDED INSIGHTS (in US$ million) JUN 30, 2017 JUN 30, 2016 1. Gold sales up mainly due to the addition of the GOLD SOLD, koz 1 315 248 Karma mine, as well as an increase
Slide 34: Net Earnings Breakdown
Q2-2017 RESULTS NET EARNINGS BREAKDOWN Adjusted EPS of $0.23 for H1-2017 SIX MONTHS ENDED All-In Sustaining Margin to Adjusted Net Earnings Bridge JUN. 30, JUN. 30, For the 6-month period ended June 30, 2017 (in US$ million) A = Adjustments made 2017 2016 Gold Revenue 379 304 $4m Operating expenses
Slide 35: Change in Net Debt
Q2-2017 RESULTS CHANGE IN NET DEBT As Expected, Net Debt Increased With Growth Project Spend Net Debt Bridge Liquidity and Financing Sources at June 30, 2017 Net Debt / Adj. EBITDA 0.75x $85m $183m Cash Position +$6m ($52m) +$59m $215m $130m +$166m Undrawn RCF 0.11x JUN. 30, MAR. 31, DEC. 31, $26m (
Slide 36: RCF Upsized and Extended
Q2-2017 RESULTS RCF UPSIZED AND EXTENDED Provides significant headroom to fund growth projects INCREASED › Increased from $350m to $500m A stronger and enlarged PRINCIPAL bank pool AMOUNT › Decreased from LIBOR plus 3.75% to 5.75% to LIBOR plus 2.95% to 3.95% on DECREASED drawn portion INTEREST › De
Slide 37: Table of Contents
TABLE OF CONTENTS 1 STRATEGIC OVERVIEW 2 2017 OUTLOOK & Q2 RESULTS 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
Slide 38: Agbaou Mine, Côte d'Ivoire: Overview
AGBAOU MINE AGBAOU MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 13.0Mt @ 2.4 g/t for 1.004Moz (incl. of Reserves) Inferred: 1.1Mt @ 1.7 g/t for 0.060Moz Côte d’Ivoire Reserves 11.0Mt @ 2.4 g/t for 0.853Moz Ity Mine Processing
Slide 39: Agbaou Mine: Production and AISC Improved in Q2
AGBAOU MINE AGBAOU MINE, CÔTE D’IVOIRE Production and AISC Improved in Q2 over Q1 Q2-17 vs Q1-17 INSIGHTS: Production and AISC › Production up 8% as greater tonnes Production, koz AISC, US$/oz 660/oz processed and better grades offset the 57koz slightly lower recovery rate 49koz 46koz 45koz › AISC d
Slide 40: Agbaou Mine: Exploration Progressed Well in H1-2017
AGBAOU MINE AGBAOU MINE, COTE D’IVOIRE Exploration progressed well in H1-2017 INSIGHTS Agbaou Site Map › Exploration progressed well in H1-2017, with a total of approximately 26,100 meters drilled out of the 45,000 meters planned for the year › The drill program is focused on the MPN extension, Agba
Slide 41: Agbaou Mine: Gold in Soil Anomalies
AGBAOU MINE AGBAOU MINE, CÔTE D’IVOIRE Numerous gold in soil anomalies over Mag > 50 ppb 41
Slide 42: Agbaou Mine: Exploration Targets
AGBAOU MINE AGBAOU MINE, CÔTE D’IVOIRE 5 year exploration targets Auger & RC drilling 42
Slide 43: Agbaou Mine: Exploration Strategy
AGBAOU MINE AGBAOU MINE, CÔTE D’IVOIRE Exploration strategy 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 ~$25M to extend mine life to 10 years* › 2013-2015 : Successful Drilling limited to infill drilling and immediate trend extens
Slide 44: Tabakoto Mine, Mali: Overview
TABAKOTO MINE TABAKOTO MINE, MALI Overview QUICK FACTS (ON 100% BASIS) 80-90% Endeavour depending on pit, remainder Ownership government of Mali Resources M&I: 19.0Mt @ 3.0 g/t for 1.844Moz (incl. of Reserves) Inferred: 8.2Mt @ 3.5 g/t for 0.908Moz Mali Reserves 6.3Mt @ 3.1 g/t for 0.615Moz Open Pit
Slide 45: Tabakoto: Cost Saving and Optimisation Programs Underway
TABAKOTO MINE TABAKOTO MINE, MALI Ongoing cost saving and optimisation programs are underway Q2-17 vs. Q1-17 INSIGHTS: Production and AISC › Production decreased mainly due to AISC, US$/oz lower open pit and underground volumes which was offset by the usage 48koz of stockpiles. 43koz 41koz 39koz 37k
Slide 46: Tabakoto Mine: Significant Focus for 2017
TABAKOTO MINE TABAKOTO MINE, MALI Significant focus for 2017 Tabakoto Site Map INSIGHTS › As Tabakoto operations are characterized by a short-term mine life, a $9 million exploration program totaling approximately 86,000m of drilling on Tabakoto and Kofi properties has been planned for 2017, of whic
Slide 47: Tabakoto: Surface Target Priority Ranking
TABAKOTO MINE TABAKOTO MINE, MALI Surface target priority ranking 75 targets identifIed, 7 Priority 1 (2017) Areas under transported cover identifIed Côte d’Ivoire 47
Slide 48: Tabakoto: Kofi Land Package Main Target Area
TABAKOTO MINE TABAKOTO MINE, MALI Kofi land package main target area Côte d’Ivoire 48
Slide 49: Tabakoto Mine: Exploration Strategy
TABAKOTO MINE TABAKOTO MINE, MALI Exploration strategy 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 ~$30M* › Main focus is on finding new additional open pit resources within a short distance to the Tabakoto mill within within 18 t
Slide 50: Ity Mine, Côte d'Ivoire: Overview
ITY MINE ITY MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 80% EDV, 15% Côte d’Ivoire, 5% private Côte d’Ivoire Resources (HL + CIL) M&I: 75.1Mt @ 1.6 g/t for 3.784Moz Côte d’Ivoire (incl. of Reserves) Inferred: 18.9Mt @ 1.3 g/t for 0.792Moz Ity Mine Reserves (HL+CIL) 60.3Mt @ 1
Slide 51: Ity Heap Leach Mine: Production Expected to Improve in H2
ITY MINE ITY HEAP LEACH MINE, CÔTE D’IVOIRE Production expected to improve in H2 with higher grades Q2-17 vs. Q1-17 INSIGHTS: Production and AISC › Production decreased due to the Production, koz AISC, US$/oz recovery rate decline and less stacked tonnage which was 21koz partially offset by better g
Slide 52: Ity Mine: Indicated Resource Grew by 1.0Moz in H1-2017
ITY MINE ITY MINE, COTE D’IVOIRE Indicated Resource grew by 1.0Moz in H1-2017 INSIGHTS Ity Mine Drilling Targets › For 2017, a $10 million exploration program totaling approximately 52,500 meters has been planned for the greater Ity area, of which roughly 42,000 meters was completed in H1-2017. › In
Slide 53: Ity CIL Project to Become Our Next Flagship Asset
ITY CIL OPTIMIZATION STUDY ITY CIL PROJECT TO BECOME OUR NEXT FLAGSHIP ASSET Construction launched based on robust optimization study results STRONG LOW ROBUST EXPLORATION PRODUCTION AISC ECONOMICS UPSIDE PROFILE Long 14-year mine life $494/oz on average over At $1,250/oz: On track to meet o
Slide 54: Summary of Optimisation Study
ITY CIL OPTIMIZATION STUDY SUMMARY OF OPTIMISATION STUDY Significant improvement over 2016 Feasibility Study 2017 2016 VARIANCE OPTIMIZATION FEASIBILITY KEY KEYCHANGES CHANGESINCLUDE: INCLUDE: STUDY STUDY (OS VS. FS) LIFE OF MINE PRODUCTION ›› Indicated resource inventory Strip ratio, w:o 1.9 2.1 (1
Slide 55: Robust Project Economics
ITY CIL OPTIMIZATION STUDY ROBUST PROJECT ECONOMICS IRR of +20% even at $1,000/oz Cumulative after-tax free cash flow, US$m NPV5% / IRR $1,400m $1,400/oz 14-YEAR MINE LIFE 22-MONTH PAYBACK PERIOD $920m / 50% $1,200m $1,250/oz $1,000m $710m / 40% $800m $600m $1,000/oz $343m / 23% $400m $200m $0m -$20
Slide 56: 1.5Moz of Indicated Resources Added Since the FS
ITY CIL OPTIMIZATION STUDY 1.5MOZ OF INDICATED RESOURCES ADDED SINCE THE FS Optimization study was preformed to capture the increased resource inventory 2017 OPTIMIZATION STUDY INVENTORY 2016 FEASIBILITY STUDY INVENTORY Indicated Resources Inferred Resources Indicated Resources Inferred Resources De
Slide 57: CIL Reserves Increased by 1.0Moz to 2.9Moz
ITY CIL OPTIMIZATION STUDY CIL RESERVES INCREASED BY 1.0Moz TO 2.9Moz Addition of Bakatouo and increases at Mont Ity, Teckraie, and Daapleu Optimization Study Reserves, Feasibility Study Reserves, Deposits as at September 1, 2017 as at October 1, 2016 Variance on a 100% basis Tonnage Grade Content T
Slide 58: Significant Increase in Reserves
ITY CIL OPTIMIZATION STUDY SIGNIFICANT INCREASE IN RESERVES Mill size increase to capture value created from exploration success Mill size and reserves growth 4.0Mtpa Mill Size Reserve 3.0Mtpa +1.0Moz OS vs FS reserves 2.0Mtpa 1.5Mtpa 2.9Moz 1.4Moz 1.9Moz +53% OS vs FS reserves 0.8Moz 2014 2015 2016
Slide 59: Long-Life Low-Cost Project
ITY CIL OPTIMIZATION STUDY LONG-LIFE LOW-COST PROJECT Significantly improved production profile Production Profile 235koz OS production FS production AISC for OS 250koz 250koz 238koz Exploration potential average production 224koz 213koz over first 5 years 201koz 190koz 162koz 159koz 151koz $484/oz
Slide 60: Life of Mine Plan
ITY CIL OPTIMIZATION STUDY LIFE OF MINE PLAN LOM Total / Item Unit Average Pre-prod 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mining Schedule Total Material Moved kt 166,752 15,555 16,000 16,000 16,000 16,000 16,000 13,770 12,661 15,908 13,623 10,143 5,092 0 0 0 Total Waste Moved kt 109,559 10,973 10,225
Slide 61: Significant Exploration Upside
ITY CIL OPTIMIZATION STUDY SIGNIFICANT EXPLORATION UPSIDE On-track to achieve exploration discovery target of 4-6Moz M&I Resource Evolution 4-6Moz Discovery Target 1.5Moz added 2.3Moz 3.8Moz 2016 5-Year Discovery Target 2017 M&I Resource (published Nov. 2016) M&I Resource (Base for FS) (Base for OS)
Slide 62: Multiple High Grade Trends Discovered at Le Plaque
ITY MINE ITY CIL PROJECT, CÔTE D’IVOIRE Multiple high grade trends discovered in the 100%-owned Le Plaque area INSIGHTS ‒ Several high-grade mineralized trends were identified at the Le Plaque area, with the largest being a 2km long anomaly ‒ Mineralization at the Le Plaque trends occurs from surfac
Slide 63: Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu
ITY MINE ITY CIL PROJECT, CÔTE D’IVOIRE Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu 63
Slide 64: 80km Underexplored Birimian Corridor
ITY MINE ITY CIL PROJECT, CÔTE D’IVOIRE 80km underexplored Birimian corridor INSIGHTS 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 664k
Slide 65: Greater Ity Regional Gold in Soil Anomalies
ITY MINE ITY CIL PROJECT, CÔTE D’IVOIRE 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 target
Slide 66: Greater Ity: 2017–2021 Exploration Targets
ITY MINE ITY CIL PROJECT, CÔTE D’IVOIRE Greater Ity: 2017 – 2021 Exploration Targets Toulepleu Auger drilling RC drilling 66
Slide 67: How Significant Is Greater Ity Area?
ITY MINE ITY CIL PROJECT, CÔTE D’IVOIRE How significant is Greater Ity area? SEMAFO Controlled MANA TREND EDV Controlled Greater ITY TREND 67
Slide 68: Ity Mine: Exploration Strategy
ITY MINE ITY MINE, CÔTE D’IVOIRE Exploration strategy Targeting discovery of between 4 to 6 Moz at an average cost of $11/oz over the next 5 years with a budget of ~$55M* › Numerous high Potential targets have been identified within the Greater Ity area › The whole controlled 80 km trend will be cov
Slide 69: Karma Mine, Burkina Faso: Overview
KARMA MINE KARMA MINE, BURKINA FASO Overview Karma Project KARMA MINE QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Ouagadougou Resources M&I: 84.3Mt @ 1.1 g/t for 2.981Moz Houndé Project (incl. of Reserves) Inferred: 19.3Mt @ 1.3 g/t for 0.791Moz Reserves 37.9Mt @ 0.9 g/t for 1.11
Slide 70: Karma Mine: Optimization Program Nearly Completed
KARMA MINE KARMA MINE, BURKINA FASO Continues to perform well with optimization program nearly completed Q2-17 vs. Q1-17 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production decreased due to less tonnage stacked and lower recovery rates which 32koz was partially offset by higher s
Slide 71: Karma Mine: Expecting to Further Extend Mine Life
KARMA MINE KARMA MINE, BURKINA FASO Expecting to further extend mine life following the H2 campaign INSIGHTS Karma Site Map › In 2017 a $4 million exploration program totaling approximately 38,000 meters has been planned of which approximately 28,000m was completed in H1-2017. › During H1-2017, dril
Slide 72: Karma: 2017 Targets Yabonsgo
KARMA MINE KARMA, BURKINA FASO 2017 Targets: YABONSGO Target (<10km from GG1) 72
Slide 73: Karma: 2017 Targets Rambo West
KARMA MINE KARMA, BURKINA FASO 2017 Targets: Rambo West 73
Slide 74: Karma Mine: Exploration Strategy
KARMA MINE KARMA, BURKINA FASO Exploration strategy 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 › North Kao already added 2.5
Slide 75: Houndé Project, Burkina Faso: Overview
HOUNDE PROJECT HOUNDÉ PROJECT, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Status Fully permitted, construction launched Karma Project Production start date First gold pour expected Q4 2017 Resources M&I: 37.9Mt @ 2.1 g/t for 2.551Moz Ouagadougou (incl. of R
Slide 76: Houndé: Progressing On-time and On Budget for Q4 Gold Pour
HOUNDE PROJECT HOUNDÉ PROJECT, BURKINA FASO Progressing on-time and on budget for Q4 gold pour SIGNIFICANT ACHIEVEMENTS TO-DATE: Mining started in January › Construction is progressing on-time with 97% of the total project complete, with the first gold pour expected in the fourth quarter of 2017. ›
Slide 77: Houndé: Progressing On-time and On Budget (continued)
HOUNDE PROJECT HOUNDÉ PROJECT, BURKINA FASO Progressing on-time and on budget for Q4 gold pour (continued) Tailings Storage Facility SIGNIFICANT ACHIEVEMENTS TO-DATE (continued) : › The construction of the grade control and sample preparation laboratories has been completed and is operational. › The
Slide 78: Houndé Project: Positive Initial Results
HOUNDE PROJECT HOUNDÉ PROJECT, BURKINA FASO Positive initial results received INSIGHTS Exploration Targets in Proximity to the Planned Mill › Following a two year period of no exploration drilling, activities resumed in 2017 with a $5 million program › During H1 2017 a total of 6,400m DD, 2700m RC a
Slide 79: Houndé: 2017-2021 Main Promising Targets
HOUNDE PROJECT HOUNDÉ PROJECT, BURKINA FASO 2017-2021 Main Promising Targets 79
Slide 80: Houndé Project: Exploration Strategy
HOUNDE PROJECT HOUNDÉ PROJECT, BURKINA FASO Exploration strategy 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
Slide 81: Kalana Project, Mali: Overview
TABAKOTO MINE KALANA PROJECT, MALI Overview QUICK FACTS (ON 100% BASIS) Ownership 80% EDV, 20% government of Mali Mali Status DFS stage Resources M&I: 24.5Mt @ 4.1 g/t for 3.200Moz (incl. of Reserves) Inferred: 24.5Mt @ 4.5 g/t for 0.240Moz Tabakoto Mine Bamako Reserves 21.7Mt @ 2.8 g/t for 1.960Moz
Slide 82: Fits Our Strategic Portfolio Criteria
AVNEL TRANSACTION FITS OUR STRATEGIC PORTOFLIO CRITERIA Kalana is a high-quality project GENERAL INFORMATION › Feasibility-stage project Ownership 80% Avnel; 20% Mali government › 1.2Mtpa CIL plant M&I Resources (inclusive of reserves) 3.10Moz @ 4.07g/t Reserves 1.96Moz @ 2.80g/t › Single open-pit r
Slide 83: Kalana Potential to Increase Production to c.150kozpa
AVNEL TRANSACTION 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 Optimised Feasibility Study: Production AISC ‒ Average over first 5 years: 148koz 203koz at an AISC of $561/oz ‒ Averag
Slide 84: Kalana Has Significant Exploration Upside
AVNEL TRANSACTION 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 Indic
Slide 85: Value Accretive
AVNEL TRANSACTION VALUE ACCRETIVE 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$1,414m (P/NAV of 1.21x)
Slide 86: Nzema Mine, Ghana: Overview
NZEMA MINE NZEMA MINE, GHANA Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% government of Ghana Resources M&I: 33.1Mt @ 1.S g/t for 1.431Moz Ghana (incl. of Reserves) Inferred: 5.9Mt @ 1.3 g/t for 0.243Moz Reserves 3.3Mt @ 2.7 g/t for 0.291Moz Open Pit Strip Ratio 8.3 to 1 (2016A) Nzema
Slide 87: Nzema Mine: Performance over H1-2017
NZEMA MINE NZEMA MINE, GHANA Performance over H1-2017 Q2-17 vs. Q1-17 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production increased due to improved 26koz 27koz recovery rates and higher grades, which 24koz 24koz compensated for reduced throughput. 20koz › AISC increased due to a
Slide 88: Table of Contents
TABLE OF CONTENTS 1 STRATEGIC OVERVIEW 2 2017 OUTLOOK & Q2 RESULTS 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
Slide 89: Board Members
APPENDIX BOARD MEMBERS Michael BECKETT Ian COCKERILL, Olivier COLOM, Livia MAHLER, Chairman, Non-executive Director Non-executive Director Non-executive Director Non-executive Director Jim ASKEW, Wayne MCMANUS, Sébastien de MONTESSUS, Naguib SAWIRIS, Non-executive Director Non-executive Director CEO
Slide 90: Endeavour Is Backed by La Mancha
APPENDIX 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
Slide 91: Unlock Exploration Value: Exploration Team
APPENDIX UNLOCK EXPLORATION VALUE Exploration a core focus in 2016 with a new structure in place Abidjan based CEO HIGHLY EXPERIENCED TEAM › Strong knowledge of West African Birimian belts EVP EVP COO › Senior staff from BRGM, Randgold, Iamgold, Exploration & Growth Projects Areva, La Mancha, etc CI
Slide 92: Methodic and Exhaustive Review to Quantify and Rank Potential
APPENDIX UNLOCK EXPLORATION VALUE 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 Geoch
Slide 93: Further Selection, Ranking and Risk Evaluation
APPENDIX UNLOCK EXPLORATION VALUE 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
Slide 94: Production and Cost Details by Mine
APPENDIX PRODUCTION AND COST DETAILS BY MINE For the years ended 2016 and 2015 AGBAOU NZEMA TABAKOTO ITY3 KARMA (on a 100% basis) Unit FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 Physicals Total tonnes mined – OP1 000t 25,382 20,447 9,295 8,144 7,098 9,298 6,102 375 8,753
Slide 95: Production and Cost Details by Mine by Quarter
Q2-2017 APPENDIXRESULTS PRODUCTION AND COST DETAILS BY MINE BY QUARTER AGBAOU NZEMA TABAKOTO ITY KARMA (on a 100% basis) Unit Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Physicals Total tonnes mined – OP1 000t 6,952 6,356 5,
Slide 96: Production and Cost Details by Mine by Half Year
Q2-2017 APPENDIXRESULTS PRODUCTION AND COST DETAILS BY MINE BY HALF YEAR AGBAOU NZEMA TABAKOTO ITY KARMA (on a 100% basis) Unit H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016 Physicals Total tonnes mined – OP1 000t 13,308 11,989 4,108 3,562 3,438 3,936 3,777 3,682 7,
Slide 97: Reserves and Resources
APPENDIX RESERVES AND RESOURCES As of December 31, 2016 Tabakoto Mine Group Consolidated Total Resources shown inclusive of Reserves. On a 100% basis Tonnage (Mt) Grade (Au g/t) Content (Au koz) On a 100% basis Proven Reserves 2.9 2.98 274 Resources shown Tonnage Grade Content Probable Reserves 3.4
Endeavour Mining — Investor Presentation (October 2017) on 6ix