Endeavour Mining Plc · TSX:EDV
Endeavour Mining — FY2022 Earnings Presentation
59 slides from Endeavour Mining's earnings presentation, Mar 9, 2023
Slide 1: Q4 & FY-2022 Results Presentation
Q4 & FY-2022 RESULTS PRESENTATION Achieved guidance for 10th consecutive year 9 March 2023
Slide 2: Disclaimer & Forward Looking Statements
DISCLAIMER & FORWARD LOOKING STATEMENTS Some of the indicators used by Endeavour in this presentation represent non-IFRS financial expected, and the results of those studies being consistent with Endeavour’s current expectations; measures, including sustaining capital per ounce, non-sustaining capit
Slide 3: Speakers
SPEAKERS SÉBASTIEN DE MARK JOANNA JONO MARTINO MONTESSUS MORCOMBE PEARSON LAWRENCE DE CICCIO President and CEO COO CFO EVP Exploration Deputy CFO & Head of IR
Slide 4: Table of Contents
TABLE OF CONTENTS 1 FULL YEAR HIGHLIGHTS 2 FINANCIAL RESULTS 3 OPERATING PERFORMANCE BY MINE 4 CONCLUSION 5 APPENDIX
Slide 5: Full Year Highlights
01 SECTION 1 FULL YEAR HIGHLIGHTS
Slide 6: 2022 Year in Review
2022 YEAR IN 10th Obtained Sale REVIEW consecutive year of FTSE 100 achieving or beating guidance Index inclusion of non-core Karma mine A highly successful year for Endeavour Sabodala-Massawa Lafigué greenfield Tanda-Iguela expansion launched project launched major greenfield discovery 5 Recognised
Slide 7: Met Guidance for 10th Consecutive Year
MET GUIDANCE FOR 10TH CONSECUTIVE YEAR Achieved top-end of production and AISC guidance 0.02 GROUP SAFETY LTM INDUSTRY LTIFR1 LEADING 1.08 Industry Average2 1,400 koz GROUP ACHIEVED FY TOP END OF PRODUCTION (For continuing operations) GUIDANCE 1,315-1,400koz Guidance GROUP AISC $880/oz $930/oz ACHIE
Slide 8: Low Cost Provides Competitive Advantage
LOW COST PROVIDES COMPETITIVE ADVANTAGE Low cost profile supports cash flow generation, growth and shareholder returns FY-2022 AISC versus initial FY-2022 guidance Initial AISC Guidance Range (US$/oz) FY-2022 AISC (US$/oz) $928/oz 1,700 1,600 1,500 Endeavour’s All-In Sustaining Cost 1,400 FY-2022 1,
Slide 9: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Strong cash flow underpins ability to deliver against capital allocation priorities REINVESTING IN OPERATIONS INVESTING IN GROWTH PROJECTS $379m spent on sustaining and $127m spent on Sabodala-Massawa and non-sustaining capital Lafigué project construction BEING A TRUST
Slide 10: Sabodala-Massawa Expansion
SABODALA-MASSAWA EXPANSION INVESTING IN GROWTH PROJECTS On budget and on schedule for first gold in Q2-2024 INSIGHTS BROWNFIELD PROJECT: › Expansion of flagship Sabodala-Massawa mine with a 1.2Mtpa SABODALA-MASSAWA EXPANSION BIOX® plant, designed to process high-grade refractory ore from the Massawa
Slide 11: Lafigué Greenfield Project
LAFIGUÉ GREENFIELD PROJECT INVESTING IN GROWTH PROJECTS On budget and on track for first gold in Q3-2024 INSIGHTS GREENFIELD PROJECT: › Lafigué greenfield development is a potential cornerstone asset LAFIGUÉ ON FETEKRO PROPERTY with envisaged annual production of 203koz over the 12.8 year initial li
Slide 12: Unlocking Exploration Value
UNLOCKING EXPLORATION VALUE INVESTING IN EXPLORATION 15Moz of M&I resources discovered since mid-2016 Total M&I resource discoveries M&I resources discovered Exploration spend 3.0Moz 15.0Moz Discovered 3.0Moz M&I resources 3.5Moz discovered in 2022 2.2Moz 2.1Moz 1.0Moz 1.3Moz 1.9Moz <$ 25/oz discove
Slide 13: Unlocking Exploration Value
UNLOCKING EXPLORATION VALUE INVESTING IN EXPLORATION On track to achieve 5-year discovery target of 15-20Moz 5-year M&I resource discovery target Risked mean Indicated resource discovery target (2021 - 2025) M&I resource as at 31 December, 2020 6.5Moz M&I resources 2.3 to discovered 2.7Moz in 2021 a
Slide 14: Major Greenfield Discovery Made in 2022
MAJOR GREENFIELD DISCOVERY MADE IN 2022 INVESTING IN EXPLORATION Tanda-Iguela has the potential to be another flagship asset INSIGHTS › Maiden resource outlined in <15 months for a discovery cost of <$10 per Indicated ounce › Indicated resource of 14.9Mt at 2.33g/t for 1.1Moz and Inferred resource o
Slide 15: Attractive Shareholder Returns Programme
ATTRACTIVE SHAREHOLDER RETURNS PROGRAMME REWARDING SHAREHOLDERS Returning significant value to shareholders FY-2022 shareholder returns declared1 Shareholder returns in context of FY-2022 results PRODUCTION REVENUE $212/oz Buyback returned for every ounce 12% of revenue $99m of gold produced distrib
Slide 16: Attractive Shareholder Returns Programme
ATTRACTIVE SHAREHOLDER RETURNS PROGRAMME REWARDING SHAREHOLDERS Buybacks continued to supplement dividends Cumulative shareholder returns Cumulative Buybacks Cumulative Dividend1 637m $637m $ $237m Total shareholder capital returns since 2021 $338m $138m $400m 10.6m $200m Shares repurchased $60m sin
Slide 17: Robust Financial Position
ROBUST FINANCIAL POSITION BALANCE SHEET STRENGTH Strong net cash position supports shareholder returns and growth Net cash evolution (Net Debt)/ Net Cash 1.53B INVESTMENT DEBT REDUCTION SHAREHOLDER RETURNS PHASE PHASE PHASE WITH ABILITY TO FUND GROWTH $217m $ $167m $75m $76m $121m Available liquidit
Slide 18: Being a Trusted Partner
BEING A TRUSTED PARTNER BEING A TRUSTED PARTNER Snapshot of several ongoing sustainability initiatives aligned to the UN SDGS Vocational Training for 150 young people near Lafigué Great Green Wall Reforestation Initiative in Senegal 5 University Partnership in Burkina Faso Malaria Prevention campaig
Slide 19: Being a Trusted Partner
BEING A TRUSTED PARTNER BEING A TRUSTED PARTNER Sustainability efforts underpin top ESG ratings Sustainalytics 2022 scores1 Endeavour MSCI rating evolution2 Newmont Endeavour 2022 2022 AA Yamana Kirkland Gold Fields Agnico Eagle AngloGold Ashanti 2021 A Newcrest B2 Gold CCC Endeavour 2021 AA 17% 25%
Slide 20: Financial Results
02 SECTION 2 FINANCIAL RESULTS
Slide 21: Operational & Financial Highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS Robust production at low AISC QUARTER ENDED YEAR ENDED Dec. 31, Sep. 30 Dec. 31, Dec-22 Dec. 31, Dec. 31, Dec-22 For Continuing Operations +102% (in $ million unless otherwise stated) 2022 2022 2021 vs. Sep-22 2022 2021 vs. Dec-21 PRODUCTION, SALES AND AISC HIGHLIG
Slide 22: Quarterly Production and AISC
QUARTERLY PRODUCTION AND AISC Strong Q4-2022 performance Production and AISC from continuing operations Production (koz) AISC (US$/oz) +3% 378koz 357koz 355koz 345koz 343koz Production Q4-2022 vs Q3-2022 $954/oz $960/oz $954/oz $894/oz $848/oz -1% All-In Sustaining Cost Q4-2022 vs Q3-2022 Q4-2021 Q1
Slide 23: Annual Production and AISC
ANNUAL PRODUCTION AND AISC Achieved top-end of production and AISC guidance Production and AISC Production from discontinued operations 1,516koz -3% Production from continuing operations AISC from continuing operations (US$/oz) 1,410koz Production from continuing operations FY-2022 vs. FY-2021 803ko
Slide 24: Short Term Revenue Protection Programme
SHORT TERM REVENUE PROTECTION PROGRAMME Increased certainty of cash flow to achieve corporate objectives Gold collars INSIGHTS Gold price in US$/oz › In FY-2022, 300koz were settled under the 2400 gold collar. In addition, approximately 514koz Growth and shareholder return focus in forward sales con
Slide 25: Operating Cash Flow Before Working Capital
OPERATING CASH FLOW BEFORE WORKING CAPITAL Strong production, lower costs and higher realised gold prices in Q4-2022 Operating cash flow before working capital from continuing operations Operating cashflow before WC 86m Realised Gold Price1 $370m +$ $318m Operating cash flow $281m before WC $253m Q4
Slide 26: Operating Cash Flow
OPERATING CASH FLOW Over 2-fold increase in quarter on quarter operating cash flow INSIGHTS Operating cash flow bridge 1. The realised gold price for continuing 5 $311m operations, including the impact of gold hedges, increased by $21/oz from $1,737/oz in Q3-2022 to $1,758/oz in Q4-2022 2. Gold sold
Slide 27: Operating Cash Flow Before Working Capital
OPERATING CASH FLOW BEFORE WORKING CAPITAL Strong cash flow generation supports disciplined capital allocation policy Operating cash flow before working capital From discontinued operations1 From continuing operations 24m Realised Gold Price -$ Operating CF before WC for continuing operations FY-202
Slide 28: Change in Net Cash
CHANGE IN NET CASH Healthy financial position with increased net cash position at year-end INSIGHTS Change in net cash 1. For FY-2022, operating activities included $1,019m in operating cashflow before changes in working capital, a $92m 1 2 working capital outflow, and $5m in operating cash flow gen
Slide 29: Net Earnings From Continuing Operations
NET EARNINGS FROM CONTINUING OPERATIONS Adjusted EPS increased by $0.04/sh to $0.26/sh in Q4-2022 over Q3-2022 3 MONTHS ENDED INSIGHTS 31 December, 30 September, 1. Includes $163m and $197m, allocated to Boungou (in $ million) A = Adjustments made for Adjusted Net Earnings 2022 2022 and Wahgnion, re
Slide 30: Operating Performance by Mine
03 SECTION 3 OPERATING PERFORMANCE BY MINE
Slide 31: Improved Safety Performance
IMPROVED SAFETY PERFORMANCE Continued industry-leading safety results LTIFR and hours worked Hours Worked (Millions) LTIFR (12 month Trailing Basis)1 39M 39M 39M 41M 41M -71% LTIFR Q4-2022 vs Q3-2022 0.20 0.15 0.13 0.07 0.02 0.02 LTIFR Q4-2022 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 (1) Lost Time In
Slide 32: Achieved Top End of Guidance
ACHIEVED TOP END OF GUIDANCE Achieved production and AISC guidance for 10th consecutive year FY-2022 Production vs Guidance FY-2022 AISC vs Guidance $850/oz $900/oz 255koz 270koz 313koz Ity FY FY $812/oz Guidance $875/oz $925/oz Houndé 260koz 275koz 295koz FY FY $809/oz Guidance $1,000/oz $1,100/oz
Slide 33: Reserve and Resource Evolution
RESERVE AND RESOURCE EVOLUTION 3Moz of M&I resources discovered largely offset resource depletion P&P reserve bridge +0.2Moz 0.0Moz 17.8Moz 1.0Moz (0.3Moz) (0.3Moz) 16.8Moz - (0.4Moz) +0.1Moz (0.3Moz) P&P reserves Houndé Ity Boungou Mana Sabodala- Wahgnion Lafigué FY-2022 vs FY-2021 2021-end 2022-en
Slide 34: Sabodala-Massawa, Senegal
SABODALA-MASSAWA, SENEGAL Higher grade oxide ore from Massawa North Zone in Q4-2022 Q4-2022 vs Q3-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production increased due to an increase in processed grade and plant throughput while plant recovery rates 105koz 103koz remained stable.
Slide 35: Sabodala-Massawa, Senegal
SABODALA-MASSAWA, SENEGAL Construction is on track and on budget BIOX Reactor construction and Neutralisation tanks Power plant expansion civil works underway INSIGHTS › Construction of the Sabodala-Massawa BIOX® project was launched in Q2-2022 and remains on budget and schedule for completion in Q2
Slide 36: Houndé Mine, Burkina Faso
HOUNDÉ MINE, BURKINA FASO Record performance in FY-2022 Q4-2022 vs Q3-2022 INSIGHTS Production and AISC › Production decreased due to lower processed grades, which Production, koz AISC, US$/oz was slightly offset by higher mill throughput, while recovery 87koz rates remained flat. 77koz 73koz 72koz
Slide 37: Wahgnion, Burkina Faso
WAHGNION, BURKINA FASO Mining commenced at the higher grade Samavogo in late Q3-2022 Q4-2022 vs Q3-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production increased due to higher processed grades which was partially offset by slightly lower tonnes milled, while gold recovery rate
Slide 38: Ity Mine, Côte d'Ivoire
ITY MINE, CÔTE D’IVOIRE Record throughput underpins record full-year production Q4-2022 vs Q3-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production was slightly higher than the prior quarter as lower processed grades were offset by higher throughput, while recoveries remained c
Slide 39: Boungou, Burkina Faso
BOUNGOU, BURKINA FASO Production declined over last year to due the grade sequencing Q4-2022 vs Q3-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production decreased due to lower tonnes milled and a slightly lower recovery rate, while processed grades remained flat. 35koz 34koz ›
Slide 40: Mana, Burkina Faso
MANA, BURKINA FASO Stope production ramping up at Wona underground Q4-2022 vs Q3-2022 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production increased due to higher processed grades and gold recovery rates, partially offset by a decrease in tonnes milled. 54koz 53koz 55koz › The aver
Slide 41: Lafigue Project in Construction
LAFIGUE PROJECT IN CONSTRUCTION Endeavour’s next cornerstone asset Lafigué Project – CIL ring beam construction Lafigué Project – ball mill foundation PROJECT UPDATES › Construction was launched in early Q4-2022, following completion of a DFS that confirmed Lafigué’s potential to be a cornerstone as
Slide 42: Conclusion
04 SECTION 4 CONCLUSION
Slide 43: Key Priorities Across the Business
KEY PRIORITIES ACROSS THE BUSINESS Continuing to build a resilient business with disciplined capital allocation 2023 production guidance of 1,325 - 1,425koz OUR STRATEGY OPERATIONS at lowest quartile AISC of $940 - $995/oz GROWTH Invest $400m in Sabodala-Massawa and Lafigué growth MAINTAINING A PROJ
Slide 44: Appendix
05 SECTION 5 APPENDIX
Slide 45: Sabodala-Massawa Mine, Senegal
SABODALA-MASSAWA MINE, SENEGAL Focussed on increasing near-mine non-refractory resources Sabodala-Massawa map INSIGHTS › An exploration programme of $15.0 million was spent in FY- 2022, which included 88,717 metres of drilling across 836 drill holes focussed on defining non-refractory resources on t
Slide 46: Houndé Mine, Burkina Faso
HOUNDÉ MINE, BURKINA FASO Focussed on near mine exploration targets Houndé map INSIGHTS › An exploration programme of $11.6 million was spent in FY-2022, which included 30,115 metres of drilling across 299 drill holes. The exploration programme was focussed on extending the resources at Vindaloo Sou
Slide 47: Ity Mine, Côte d'Ivoire
ITY MINE, CÔTE D’IVOIRE Focussed on following mineralisation extensions at known deposits Ity map INSIGHTS › An exploration programme of $10.0 million was spent in FY-2022, which included 51,181 metres of drilling across 330 drill holes. The exploration programme was focused on extending resources a
Slide 48: Boungou Mine, Burkina Faso
BOUNGOU MINE, BURKINA FASO Focussed on geological modelling Boungou map INSIGHTS › An exploration programme of $2.0 million was spent in FY-2022, which included 8,636 metres of drilling across 708 drill holes. The exploration programme was focused on identifying new targets close to the Boungou mine
Slide 49: Mana, Burkina Faso
MANA, BURKINA FASO Focussed on underground potential at Siou Mana map INSIGHTS › An exploration programme of $7.0 million was spent in FY-2022, which included 30,299 metres of drilling across 291 drill holes focussed on increasing the size of the resources at Maoula Est, Fofina and Nyafe as well as
Slide 50: Wahgnion Mine, Burkina Faso
WAHGNION MINE, BURKINA FASO Exploring for open-pit oxide ores within close proximity to current permits INSIGHTS Wahgnion map › An exploration programme of $9.0 million was spent in FY-2022, which included 44,149 metres of drilling across 435 drill holes focussed on evaluating the Ouahiri South, Boz
Slide 51: Tackling Inflationary Pressures
4 TACKLING 44 INFLATIONARY PRESSURES Leveraging our synergies in West Africa Fuel Average fuel price variance, $/L › Fuel price is regulated by in-country based pricing mechanisms where prices are revised periodically, Q3-2021 Q2-2022 Q3-2022 Q4-2022 sheltering Endeavour from peak fuel pricing -2% S
Slide 52: 2023 Guidance
2023 GUIDANCE INSIGHTS Consolidated Production Guidance 2023 FULL-YEAR 2022 ACTUALS (All amounts in koz, on a 100% basis) GUIDANCE › Production guidance for FY-2023 amounts to 1,325-1,425koz, which marks an increase over Ity 313 285 — 300 the FY-2022 guidance of 1,315-1,400koz Houndé 295 270 — 285 ›
Slide 53: 2023 Guidance (Continued)
2023 GUIDANCE (Continued) Capital Expenditure Guidance 2022 ACTUALS 2023 FULL-YEAR (All amounts in US$m) GUIDANCE Boungou 7 5 Houndé 27 40 INSIGHTS Ity 13 25 › Total sustaining and non-sustaining capital expenditure is Mana 10 25 expected to remain consistent with that achieved in FY-2022, at Saboda
Slide 54: Debt Structure
DEBT STRUCTURE Diversified long-term debt structure DEBT STRUCTURE INCLUDE: Balance Sheet Structure $500m Senior Notes (in $ million unless stated otherwise) 31 Dec 2022 30 Sep 2022 31 Dec 2021 › 5% fixed coupon rate notes mature in October 2026 $370m $575m Unsecured RCF Cash 951 833 906 › Coupon ra
Slide 55: Mine Statistics
MINE STATISTICS On a quarterly basis (1) Includes waste capitalized. 55
Slide 56: Mine Statistics
MINE STATISTICS On a full year basis (1) Includes waste capitalised. Note: Sabodala-Massawa and Wahgnion are represented for the post acquisition period commencing February 10,2021 56
Slide 57: Tax Payments
TAX PAYMENTS THREE MONTHS ENDED YEAR ENDED Dec 31 Sep 30 Dec 31 Dec 31 Dec 31 In US$ million unless otherwise specified. 2022 2022 2021 2022 2021 Boungou - 6.5 8.8 18.0 52.4 Houndé 9.8 10.4 10.7 46.8 47.9 Ity - 10.3 4.8 30.5 42.1 Mana 2.7 3.1 2.9 12.9 12.2 Sabodala-Massawa - - 0.7 16.8 20.1 Wahgnion
Slide 58: Continuous Improvement in ESG Ratings
CONTINUOUS IMPROVEMENT IN ESG RATINGS Reflecting increased transparency, disclosure and engagement 2019 2022 2019 23.9 /100 Medium Risk 2022 Relative Performance 2020 2022 2020 2019 2020 2021 Climate D- C C Change Water N/A C C 2021 Forestry ✓ ✓ ✓ Defined targets required to advance to a B rating 58
Slide 59: Contact Us
@) ENDEAVOUR Lp igntea hp MINING 5 Young Street London a ce United Kingdom T: +44 203 011 2723 CONTACT US T: +44 203 011 2719 OPERATIONS OFFICE investor@endeavourmining.com Hotel Palm Club Follows Croisement Boulevard Latrille et rue du Lycée Technique Abidjan ‘in) y) 08 BP 872 Céte d'Ivoire endeavo