Endeavour Mining Plc · TSX:EDV
Endeavour Mining — BMO Global Metals & Mining Conference 2014
26 slides from Endeavour Mining's conference presentation, February 2014
Slide 1: Endeavour Management Presentation
Endeavour Management Presentation BMO Global Metals & Mining Conference February 2014 GOLD PRODUCER WEST AFRICA CASH FLOW
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 but not limited to, statements with respect to Endeavour’s plans plant, equipment or processes to operate as anticipated; and oper
Slide 3: Endeavour Delivers
Endeavour Delivers • West African gold producer with four operating mines delivering 324,275 oz in 2013 • Producing more than 400,000 oz in 2014 • Potential to add ~180,000 oz/yr by advancing Houndé project; feasibility study completed and now in permitting • Focused on generating cash flow • Strong
Slide 4: West African Projects
West African Projects • Multiple operations, both open-pit and underground • West African focus, diversified jurisdictions • Accra-based operations management • Expertise sharing between operations Tabakoto Mine Agbaou Mine Accra Operations Houndé Project Youga Mine Nzema Mine GOLD PRODUCER WEST A
Slide 5: 2013 Achievements
2013 Achievements • Record gold production of 324,275 ozs from three mines • Tabakoto expanded: – Mill capacity was doubled in 2013 – Segala underground development with ore production scheduled for Q2 2014 • Agbaou mine constructed: – Built ahead of schedule and under budget – First gold pour Novem
Slide 6: Agbaou in Commercial Production
Agbaou in Commercial Production • Construction started August, 2012 • First gold pour was November 29, 2013 • Official opening and start of commercial production on January 27, 2014* • Mining Convention signed • Average annual production of 100,000 ozs • Agbaou is positioned for strong cash flow gen
Slide 7: 2014 Objectives
2014 Objectives • Produce 400,000 to 440,000 ozs • AISC guidance of $985/oz to $1,070/oz, including all underground development at operating mines as “sustaining capital” • 2014 cost guidance represents an approximate 10% improvement compared to 2013, using the 2014 AISC definition • Exploration foc
Slide 8: Operations in 2014
Operations in 2014 • Key 2014 operating activities – Commence production stoping at Segala in Q2 – Complete implementation of owner operated underground mining and Tabakoto and Segala – Continue optimizing mining and processing operations at all sites – Complete enhancement of group Purchasing and W
Slide 9: 2014 Production Guidance
2014 Production Guidance Gold Production (ozs)1 2011 2012 2013 2014 Actual Actual Actual Guidance range Tabakoto, Mali 91,200 110,301 125,231 140,000 - 155,000 Nzema, Ghana 90,026 109,447 103,464 110,000 - 120,000 Agbaou, Côte d'Ivoire2 - - 6,132 85,000 - 95,000 Youga, Burkina Faso 87,264 91,030 89,
Slide 10: 2014 AISC Guidance
2014 AISC Guidance 2014 Guidance, in $/oz Mid-2014 Guidance, in $Million Gold Production Range (ozs) 400,000 - 440,000 420,000 $/oz $Million Revenue (at $1,250) $525 Royalties $60 - $70 Royalties 27 Cash costs $775 - $825 Cash costs 336 Corporate G&A $40 - $45 Corporate G&A 17 "EBITDA" margin 145 Su
Slide 11: Houndé Project – In Permitting
Houndé Project – In Permitting • Feasibility study completed and now in permitting Houndé FS General Site Layout • Owner-operated mining Mine, Waste Dumps, and Plant Location • 2P Reserve1 of 25 million tonnes at 1.95 g/t containing 1.55 million ozs • Processing plant consists of: – SAG / Ball mill
Slide 12: Growth Track Record
Growth Track Record 2009 2010 2011 2012 2013 2014e Selecting Optimization and Ready for new Focus Growth through acquisitions targets building Agbaou opportunities Agbaou Tabakoto Nzema Youga 2009 2010 2011 2012 2013 2014 Production 0 82,000 180,000 310,000 324,000 >400,000 Growth (ozs) GOLD PRODUCE
Slide 13: Summary
Summary • Delivered on previous guidance and growth objectives • Focussed on • Production • Earnings and • Cash flow • Endeavour is an excellent value proposition for investors GOLD PRODUCER WEST AFRICA CASH FLOW 13
Slide 14: Appendices
Appendices • Board of Directors • Management • Company Profile • Operations • Resources and Reserves • Capital Structure GOLD PRODUCER WEST AFRICA CASH FLOW 14
Slide 15: Board of Directors
Board of Directors Michael Beckett, Chairman Former Chairman, Ashanti Ian Cockerill Goldfields and former MD, Former CEO, Gold Fields Consolidated Gold Fields Frank Giustra Ian Henderson Founder: Wheaton River, Silver Former natural resources fund Wheaton and Pacific Rubiales; manager, JP Morgan For
Slide 16: Management
Management Neil Woodyer Attie Roux Christian Milau CEO COO CFO • Founder of Endeavour, 30+ years • Built / commissioned Nzema • CA and US Certified Public experience in natural resources processing plant Accountant • Project financed and advised on • 34 years as metallurgist at • 18 years experience
Slide 17: Company Profile
Company Profile Share Price (Feb 14, 2014) Balance Sheet (Sept 30, 2013) CDN$0.82 Cash position $119 million Recent Share Price AUD$0.80 Drawn down from $350 million debt facility $300 million Av. daily shares traded (Jan) Canada 3.3 million Australia 0.8 million Analyst Coverage (Feb 18, 2014) Capi
Slide 18: Tabakoto Gold Mine, Mali
Tabakoto Gold Mine, Mali Tabakoto Gold Mine (80% Endeavour, 20% government of Mali) 360km west of Bamako in western Mali, Location adjacent to border with Senegal Ownership 80% Endeavour, 20% Republic of Mali Resources (incl. of • M&I: 1.077Mozs (~80% U/G @ 5.7 g/t) Reserves, 100%) • Inferred: 0.966
Slide 19: Agbaou Gold Mine, Côte d’Ivoire
Agbaou Gold Mine, Côte d’Ivoire Agbaou Gold Mine (85% Endeavour, 10% government of Côte d’Ivoire, 5% SODEMI) Resources1 M&I: 15.0Mt @ 2.4 g/t for 1.157Moz (incl. of Reserves, Inferred: 1.5Mt @ 1.5 g/t for 0.073Moz 100%) Reserves1 (100%) 11.1Mt @ 2.5 g/t for 0.905Moz Strip Ratio 7.9 to 1 Processing R
Slide 20: Nzema Gold Mine, Ghana
Nzema Gold Mine, Ghana Nzema Gold Mine (90% Endeavour, 10% Ghana government) Resources • M&I: 44.796Mt @ 1.3 g/t for 1.943Moz (incl. of Reserves, • Inferred: 10.503Mt @ 1.2 g/t for 100%) 0.421Moz Reserves (100%) 13.029Mt @ 1.9 g/t for 0.797Moz Strip Ratio 3 to 1 (2013) Processing Rate 1.6 to 2.1Mtpa
Slide 21: Youga Gold Mine, Burkina Faso
Youga Gold Mine, Burkina Faso Youga Gold Mine (90% Endeavour; 10% BF government) Youga & Youga Satellites (within 4 km) Resources (incl. of • M&I: 14.764Mt @ 1.5g/t for 0.692Moz Reserves, 100%) • Inferred: 1.462Mt @ 1.2g/t for 0.057Moz Reserves (100%) 6.364Mt @ 1.9g/t for 0.380Moz Strip Ratio 4.3 to
Slide 22: Mineral Reserves as at Dec 31, 2012
Mineral Reserves as at Dec 31, 2012 Reserves Proven Probable Proven & Probable Gold Mine / Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Price kt g/t k Ozs kt g/t k Ozs kt g/t k Ozs US$/oz Nzema1 - Total 10,273 1.8 604 2,756 2.2 193 13,029 1.9 797 US$ 1350 Attributable - 90% 54
Slide 23: Mineral Resources as at Dec 31, 2012
Mineral Resources as at Dec 31, 2012 Resources (including reserves) Lower Measured Indicated Measured & Indicated Inferred cutoff Mine / Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces kt Au g/t koz kt Au g/t koz kt Au g/t koz kt Au g/t koz Au g/t Nzema1 - Tot
Slide 24: Notes to Mineral Resource and Reserves
Notes to Mineral Resource and Reserves 1 Nzema Mine "Technical Report and Mineral Resource and Reserve Update for the Nzema Gold Mine, Ghana, West Africa" effective December 31, 2012. Prepared by N. Johnson MAIG (MPR Geological Consultants), Q. de Klerk FAusIMM (CP) (Cube Consulting), W. Yeo MAIG an
Slide 25: Capital Structure
Capital Structure (As of January 31, 2014) Issued Shares 413,043,293 Options Strike price Strike Price Range (CDN$) Average (CDN$) $0.80 $1.48 $1.18 705,170 $1.51 $2.00 $1.76 10,537,350 $2.04 $2.47 $2.29 5,111,383 $2.64 $2.95 $2.67 5,899,312 $3.70 $4.69 $4.51 2,260,071 $13.09 $44.96 $28.43 47,066 Fu
Slide 26: Neil Woodyer CEO, Doug Reddy
Neil Woodyer CEO nwoodyer@endeavourmining.com +377 97 98 7161 Doug Reddy SVP Business Development dreddy@endeavourmining.com +1 604 609 6114 GOLD PRODUCER WEST AFRICA CASH FLOW 26
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