Slide 1: Operational & Financial Results Q2 2019
Q1 Q2 OPERATIONAL & FINANCIAL RESULTS Q3 › August 1, 2019 Q4
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 performance measures with no standard meaning under IFRS. This presentation contains “forward-looking statements” including but not limited to, statements with respect to Endeavour’s pl
Slide 3: Speakers and Table of Contents
SPEAKERS TABLE OF CONTENTS SÉBASTIEN DE MONTESSUS 1 Q2 & H1-2019 IN REVIEW President & Chief Executive Officer VINCENT BENOIT 2 FINANCIAL SUMMARY EVP CFO & Corporate Development (leaving on August 1st) DETAILS BY MINE AND 3 PROJECT Louis Irvine EVP CFO (As of August 1st) 4 CONCLUSION MARK MORCOMBE C
Slide 4: Q2 & H1-2019 Activities Recap
Q2 & H1-2019 IN REVIEW H1-2019 ACTIVITIES RECAP Strong continued achievements across our 4 pillars 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCKING EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT ✓ Strong safety record ✓ Ity CIL construction ✓ Over 307,000m drilled in H1- ✓ Availa
Slide 5: On-Track to Meet Full Year 2019 Guidance
Q2 & H1-2019 IN REVIEW ON-TRACK TO MEET FULL YEAR 2019 GUIDANCE Strong performance expected in H2-2019 due to the newly commissioned Ity CIL operation GROUP H1 BELOW LTIFR1 INDUSTRY 0 0.72 Industry Average GROUP H1 ON-TRACK PRODUCTION 292koz 615-695koz Guidance GROUP $760/oz $810/oz AISC H1 ON-TRACK
Slide 6: Strong Safety Record
Q2 & H1-2019 IN REVIEW STRONG SAFETY RECORD Our safety record remained below the industry average in H1-2019 Lost Time Injury Frequency Rate (on a rolling 12-months basis) 0.72 0 LTM Lost Time Injury Frequency Rate 0.40 0.29 ~600days 0.16 0.00 0.00 0.00 0.00 without an LTI on Peer FY2016 FY2017 FY20
Slide 7: Focused on Growing Local Talent
Q2 & H1-2019 IN REVIEW FOCUSED ON GROWING LOCAL TALENT Recently promoted a second West African general manager Employee breakdown for continuing operations Expats Nationals GENERAL MANAGERS 50% 95% site workforce 2 out of 4 are West-African are nationals 0% 25% in 2017 in 2018 SITE WORKFORCE HEAD OF
Slide 8: CEO Introduction
Q2 &CEO INTRODUCTION H1-2019 IN REVIEW MAIN H1 ACHIEVEMENT: FLAGSHIP ITY CIL PROJECT COMPLETED 4 months ahead of schedule and $10m below budget ACHIEVEMENTS ITY CIL OPERATING STATS All-in Sustaining Cost $585/oz Achieved in Q2-2019 ON-SCHEDULE 4 months ahead +250koz Current annualized run-rate Produ
Slide 9: Strong Production Uplift & AISC Decrease
Q2 & H1-2019 IN REVIEW STRONG PRODUCTION UPLIFT & AISC DECREASE Group AISC below $800/oz in Q2-2019 with benefit of Ity CIL start-up Group Production and AISC from continuing operations Ity HL Other continuing operations AISC from contuinung operations 174koz (record quarter!) Use of low grades and
Slide 10: Increasing Margins from Operations
Q2 & H1-2019 IN REVIEW INCREASING MARGINS FROM OPERATIONS Operating cash flow began to benefit from Ity CIL All-In Sustaining Margin (from continuing operations) $85m $84m $72m $46m $45m +87% +$39m Q2-2019 vs. Q1-2019 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 All-In Margin (from continuing operations)
Slide 11: Continued Exploration Success
Q2 & H1-2019 IN REVIEW CONTINUED EXPLORATION SUCCESS 80% of the full year budget of $45-50m already spent in H1-2019 Exploration expenditure for H1-2019 INSIGHTS › Exploration continued to be a strong focus in H1-2019 with a company-wide exploration spend of $39m nearly 80% of the full year Fetekro
Slide 12: Conversion of Exploration Potential into Mine Life
PIED Q2 & DE PAGE H1-2019 IN REVIEW CONVERSION OF EXPLORATION POTENTIAL INTO MINE LIFE Exploration demonstrates potential for +250koz for 10 years at both Houndé & Ity DISCOVERIES MADE Ity production plan LE PLAQUE KARI PUMP (As per 2017 Optimized Study (3), based on 4Mtpa plant and excludes Le Plaq
Slide 13: Near-Term Growth Generated Through Exploration
Q2 & H1-2019 IN REVIEW NEAR-TERM GROWTH GENERATED THROUGH EXPLORATION Strong organic growth opportunities with capital allocation based on ROCE Daoukro Cluster (Côte d’Ivoire) Le Plaque Kofi Trend (Côte d’Ivoire– Ity trend) (Mali) Bondoukou Clust. (Côte d’Ivoire) Siguiri Ity CIL (Guinea) Randgold JV
Slide 14: Financial Summary
1 Q2 & H1-2019 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 15: Production Bridge
FINANCIAL SUMMARY PRODUCTION BRIDGE Ity CIL compensated for the end of Ity Heap Leach operation and lower Houndé production Production Bridge H1-2018 to H1-2019 INSIGHTS Change in AISC › Q2-2019 production from continuing operations increased by 41% over Q1- 358koz 2019 to 171koz following the succe
Slide 16: All-In Margin Breakdown
FINANCIAL SUMMARY ALL-IN MARGIN BREAKDOWN Expected to increase in H2-2019 with full benefit of Ity CIL INSIGHTS HALF YEAR ENDED 1. Decreased slightly in H1-2019 mainly due to JUNE 30, JUNE 30, the transition period in Q1-2019 between (in US$ million) the Ity CIL and the HL, combined with 2019 2018 d
Slide 17: Growth Funding Sources
FINANCIAL SUMMARY GROWTH FUNDING SOURCES Cash flow from operations and RCF used to fund growth INSIGHTS HALF YEAR ENDED 1. Q2-2019 saw a positive working capital inflow of $6m, reducing the working capital outflow to $20m in H1-2019. The JUNE 30, JUNE 30, (in US$ million) main H1-2019 components wer
Slide 18: Cash Variation Analysis
FINANCIAL SUMMARY CASH VARIATION ANALYSIS Capital requirements wind-down following completion of Ity CIL Net Cash Variation Analysis OPERATING ACTIVITIES › H1-2019 decreased by $23m compared to H1-2018, mainly due to $25m related to Houndé first full year of corporate tax paid, $18m decrease in reve
Slide 19: Net Debt Analysis
FINANCIAL SUMMARY NET DEBT ANALYSIS Expected to quickly deleverage as Ity CIL now in production Net Debt evolution Low equity dilution to fund growth Net Debt / Adj. EBITDA (LTM) Net Debt at quarter end Shares Outstanding at quarter end Mainly related to Invested $69m the Ity Mine 5% while net debt
Slide 20: Net Debt and Liquidity Analysis
FINANCIAL SUMMARY NET DEBT AND LIQUIDITY ANALYSIS Liquidity remains strong with minimal capex remaining Available sources of financing and liquidity INSIGHTS As at June 30, 2019 › Net Debt amounted to $660m at quarter-end, an increase of only $25m over the previous quarter despite investments of $69
Slide 21: Revenue Protection Program
FINANCIAL SUMMARY REVENUE PROTECTION PROGRAM Increased certainty of cash flow during construction and debt repayment phases Gold revenue protection program Gold price in US$/oz INSIGHTS 1,600 › Strategy aimed at maximizing cash flow certainty during its construction and debt reimbursement phases 1,5
Slide 22: Net Earnings Breakdown
FINANCIAL SUMMARY NET EARNINGS BREAKDOWN Adjusted EPS of $0.03 for H1-2019 HALF-YEAR ENDED JUNE 30, JUNE 30, INSIGHTS (in US$ million) A = Adjustments made of Adjusted Net Earnings 2019 2018 1. Includes a $12.0m loss on the July 2019 GOLD REVENUE 371 388 gold revenue protection programs (of Operatin
Slide 23: Details by Mine and Project
1 Q2 & H1-2019 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 24: Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Stronger production expected in H2-2019 due to high-grade Bouere deposit Q2-2019 vs Q1-2019 INSIGHTS Production and AISC › Production increased due to the expected Production, koz AISC, US$/oz increase in average grades milled, while mill throughpu
Slide 25: Houndé Exploration, Burkina Faso: Kari Pump
DETAILS BY MINE & PROJECT HOUNDÉ EXPLORATION, BURKINA FASO Kari Pump 710koz maiden reserve increased Houndé reserves by 41% INSIGHTS Drill map and selected intercepts per area (true width/grade) › High M&I resource to reserve conversion rate: 89% based on a gold price of $1,250/oz › Significantly hi
Slide 26: Houndé Exploration, Burkina Faso
DETAILS BY MINE & PROJECT HOUNDÉ EXPLORATION, BURKINA FASO Further exploration success expected in Kari Area INSIGHTS Houndé site map › Houndé is Endeavour’s largest exploration focus this year with a budget of approximately 195,000m of drilling › In H1-2019, more than 174,250m were already drilled,
Slide 27: Agbaou Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Production benefitted from higher grades and recovery rates Q2-2019 vs Q1-2019 INSIGHTS Production and AISC › Production increased due to the expected Production, koz AISC, US$/oz increase in average grades milled and slightly higher recovery rate
Slide 28: Ity Mine – CIL Operation, Côte d'Ivoire
DETAILS BY MINE & PROJECT ITY MINE – CIL OPERATION, CÔTE D’IVOIRE Completed 4 months ahead of schedule and $10m under-budget HIGHLIGHTS Ity CIL Plant Book Value (in m$) › The Ity CIL project began processing ore on February $54m vs guided $55m 20, 2019 and achieved its first gold pour on March 18, $
Slide 29: Ity Mine – CIL Operation, Côte d'Ivoire
DETAILS BY MINE & PROJECT ITY MINE – CIL OPERATION, CÔTE D’IVOIRE Strong operating results following a quick ramp-up period Q2-2019 vs Q1-2019 INSIGHTS Ity CIL treatment plant › Production was strong, following a quick ramp-up period, due to better than expected mill availability, throughput, grades
Slide 30: Ity Exploration: Le Plaque
DETAILS BY MINE & PROJECT ITY EXPLORATION: LE PLAQUE Maiden resource added 0.4Moz of indicated resources added at >3 g/t Au LE PLAQUE INSIGHTS Le Plaque targets › Indicated resource has increased from 85koz to 476koz › Continued low discovery cost of $15/oz › Ity mine M&I resource up 11% with signif
Slide 31: Karma Mine, Burkina Faso
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Stronger H2-2019 expected due to oxide ore from the Kao North pit Q2-2019 vs Q1-2019 INSIGHTS Production and AISC › Production decreased slightly despite higher stacked Production, koz AISC, US$/oz grades and a better recovery rate due to a 33koz te
Slide 32: Kalana Project, Mali
DETAILS BY MINE & PROJECT KALANA PROJECT, MALI Aim to increase resource base for project Several Licenses under negociation INSIGHTS With Private owners › In line with this strategy, further exploration is underway at Kalana with the goal of delineating additional satellite deposits, and updating th
Slide 33: Fetekro Greenfield Exploration in Côte d'Ivoire
DETAILS BY MINE & PROJECT FETEKRO GREENFIELD EXPLORATION IN CÔTE D’IVOIRE Updated resource is planned to be published in Q3-2019 INSIGHTS Fetekro’s Lafigue exploration prospect gold in soil map › An exploration campaign totaling approximately 43,000m has been planned for 2019 with the aim of delinea
Slide 34: Conclusion
1 Q2 & H1-2019 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 35: Upcoming Catalysts
CONCLUSION UPCOMING CATALYSTS ON TRACK TO MEET FY-2019 GUIDANCE › Production on-track to meet the FY-2019 guidance of 615- H2-2019 PRIORITIES Immediate 695koz › AISC on-track to meet the FY-2019 guidance of $760- Cashflow 810/oz from Production › H2-2019 to benefit from Ity CIL full production and h
Slide 36: Appendix
1 Q2 & H1-2019 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 37: Production and Cost Details by Mine (Quarterly)
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU ITY CIL ITY HL KARMA HOUNDÉ (on a 100% basis) Unit Q2-2019 Q1-2019 Q2-2018 Q2-2019 Q1-2019 Q2-2018 Q2-2019 Q1-2019 Q2-2018 Q2-2019 Q1-2019 Q2-2018 Q2-2019 Q1-2019 Q2-2018 Physicals Total tonnes mined – OP1 000t 6,556 6,217 7,80
Slide 38: Production and Cost Details by Mine (Half Year)
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a half year basis AGBAOU ITY CIL ITY HL KARMA HOUNDÉ (on a 100% basis) Unit H1-2019 H1-2018 H1-2019 H1-2018 H1-2019 H1-2018 H1-2019 H1-2018 H1-2019 H1-2018 Physicals Total tonnes mined – OP1 000t 12,773 15,753 7,224 - 0 2,667 10,430 8,750 18,542 19,670