Slide 1: Endeavour Management Presentation: Q3 2012 Results
Endeavour Management Presentation Results for the Third Quarter ended September 30, 2012 15 November 2012 A GOLD PRODUCER DELIVERING GROWTH 1
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements This presentation contains “forward-looking statements” including variations in ore reserves, grade or recovery rates; failure of plant, but not limited to, statements with respect to Endeavour’s plans equipment or processes to operate as anticipated; accident
Slide 3: Introduction
Introduction Neil Woodyer CEO Attie Roux Christian Milau COO CFO Amounts expressed in US$, unless otherwise indicated A GOLD PRODUCER DELIVERING GROWTH 3
Slide 4: Corporate Development (Subsequent Event)
Corporate Development (Subsequent Event) • Completed the acquisition of Avion Gold Corporation on October 18, 2012 • Resulted in the addition of: • Tabakoto Gold Mine in Mali • Two advanced stage projects: Houndé (Burkina Faso) and Kofi (Mali) • Endeavour’s Q3 and 9 months ended Sept 30, 2012 result
Slide 5: Q3/2012 Highlights (excluding Avion's assets)
Q3/2012 Highlights (excluding Avion’s assets) • During Q3: Produced 49,468 ozs at cash cost (ex royalties) of $644/oz • During 9 months 2012: Produced 152,159 ozs at cash cost (ex royalties) of $667/oz • During Q3, generated $41 million of Operating cash flow, increasing 9 month total to $121 millio
Slide 6: Solid Production Base: Youga & Nzema
Solid Production Base: Youga & Nzema 2010 2011 2012 Production 82,402 ozs 177,290 ozs 187,000-202,000 ozs Cash Margin1 $36 million $91 million2 ~$150 million (@$1,600/oz) 51k 52k 51k 48k 49k 45k 34k Nzema 23k 21k 20k Youga 18k Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 2011
Slide 7: Q3/2012 Financial Highlights
Q3/2012 Financial Highlights Total Q3/2012 Q2/2012 Q1/2012 9 months Gold production (ounces) 49,468 50,728 51,963 152,159 Gold sold (ounces) 50,129 52,415 47,559 150,103 Total cash cost per ounce produced $644 $641 $716 $667 (US$ in millions) Operating cash flow from mine operations $40.7 $56.1 $24.
Slide 8: Operating Cash Flow from Mine Ops (Adjusted)
Operating Cash flow from Mine Ops (Adjusted) 9 months to Sept 30, 2012 50 $125.7 million US$M 45 40 35 30 25 20 15 10 5 0 2010 2011 Q3/2012 A GOLD PRODUCER DELIVERING GROWTH 8
Slide 9: 2012 Q1-Q3: Cash Generation and Investments
2012 Q1-Q3: Cash Generation and Investments 9 months US$ Millions ended Sept 30, 2012 Cash and cash equivalents - Beginning balance (Dec 31, 2011) $115.3 Operating cash flow from mine operations (adjusted) + 125.7 Investments in mine operations and exploration - 61.9 Bridge loan to Avion - 20.2 Tran
Slide 10: 2012 Q1-Q3: Mine Capital & Exploration Investments
2012 Q1-Q3: Mine Capital & Exploration Investments Grassroots Exploration Regional Exploration 9 Months to $Millions $4.3M $4.3M Sept 30, 2012 Agbaou Agbaou Construction Investments in $9.4M Mine Operations $17.9M and Exploration Agbaou 2012 Exploration $61.9M $4.0M Agbaou Feasibility Study (complet
Slide 11: Q3/2012 Adjusted Net Earnings Reconciliation
Q3/2012 Adjusted Net Earnings Reconciliation US$ Millions Q3/2012 Net (loss) after tax ($0.1) Change in unrealized (loss) – gold price protection program + 13.4) Change in fair value of share purchase warrants (in CAD currency) + 1.9) Once off corporate costs1 + 3.1) Gold reserve settlement + 1.5) D
Slide 12: Operating Summary – Nzema Gold Mine, Ghana
Operating Summary – Nzema Gold Mine, Ghana Q3/2012 Total Annual Guidance 3 months 9 months Tonnes of ore milled (000s) 555 1,616 Average gold grade milled (g/t) 1.78 1.78 Gold ounces produced 26,942 82,780 102,000 -112,000 Cash cost per ounce produced (US$/oz) $710 $709 Cash cost per ounce produced
Slide 13: Operating Summary – Youga Gold Mine, Burkina Faso
Operating Summary – Youga Gold Mine, Burkina Faso Q3/2012 Total Annual Guidance 3 months 9 months Tonnes of ore milled (000s) 261 772 Average gold grade milled (g/t) 2.90 2.90 Gold ounces produced 22,526 69,379 85,000 - 90,000 Total cash cost per oz (excl royalties) produced $565 $616 $655 - $675 •
Slide 14: Agbaou Gold Project, Côte d'Ivoire Construction Progress
Agbaou Gold Project, Côte d’Ivoire Construction Progress • Nzema team constructing Agbaou • Lycopodium engaged as EPCM contractor • Long-lead items ordered – mills, transformers, power lines • Received Mining Permit in August 2012 • Earthworks began in September • Concrete pouring begun in November
Slide 15: Avion Integration in Accra Operations Hub
Avion Integration in Accra Operations Hub Operations Accra, Ghana • COO’s office • Operations management • Group procurement / supply chain • Exploration • HR • CSR program management Nzema Gold Mine Youga Gold Mine Tabakoto Gold Mine Agbaou Gold Project Ghana Burkina Faso Mali Côte d’Ivoire A GOLD
Slide 16: Tabakoto Production Expansion
Tabakoto Production Expansion 2,000 to 4,000 tonnes per day at a cost of ~$15 million to complete 4,000 tpd Sag Mill Installation New Leach & CIL Tanks New Electrical Building New Thickener A GOLD PRODUCER DELIVERING GROWTH 16
Slide 17: Production Growth from Current Mines
Production Growth from Current Mines A GOLD PRODUCER DELIVERING GROWTH 17
Slide 18: Mine Margins – Cash flow Generation
Mine Margins – Cash flow Generation Mine Basis Annual Gold Cash Cost Royalties Annual Cash Production per Ounce (at $1,600 gold Margin (Ounces,100% price) (at $1,600 gold basis) price) 2012e guidance Nzema (mid range) 107,000 $690* 5% $85 million 2012e guidance Youga (mid range) 87,500 $665 5% $75 m
Slide 19: Conclusion – Q3 Results Presentation
Conclusion – Q3 Results Presentation Strong Operating • Youga & Nzema 152,159 ozs produced at $667/oz (9 months) Performance • Cash & marketable securities of $130.5 million, includes $100 Strong Financial million drawn from $200 million corporate debt facility Base • Fully funded to finance all cap
Slide 20: Questions?
Questions? Neil Woodyer CEO Attie Roux Christian Milau COO CFO For additional information, please contact: Marla Gale, VP Investor Relations mgale@endeavourmining.com +1 604 609 6117 A GOLD PRODUCER DELIVERING GROWTH 20