Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Q2 2021 Earnings Presentation
62 slides from Endeavour Mining's earnings presentation, Aug 4, 2021
Slide 1: Q2 and Interim 2021 Operational & Financial Results
Q2 AND INTERIM 2021 OPERATIONAL & FINANCIAL RESULTS Presentation 4 August, 2021
Slide 2: Speakers
SPEAKERS SÉBASTIEN DE MARK JOANNA PATRICK MARTINO MONTESSUS MORCOMBE PEARSON BOUISSET DE CICCIO CEO and Director COO CFO EVP Exploration VP, Strategy and and Growth Investor Relations
Slide 3: 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 4: Table of Contents
TABLE OF CONTENTS 1 Q2 AND H1-2021 IN REVIEW 2 DETAILS BY MINE AND PROJECT 3 H1-2021 EXPLORATION UPDATE 4 CONCLUSION 5 APPENDIX
Slide 5: Q2 and H1-2021 in Review
01 SECTION 1 Q2 AND H1-2021 IN REVIEW
Slide 6: Strong Q2-2021 Performance
Q2 & H1-2021 RESULTS STRONG Q2-2021 PERFORMANCE Strong financials underpin our shareholder returns programme HIGHLIGHTS STRONG BUSINESS PERFORMANCE › On track to meet FY-2021 production and AISC guidance +18% (2%) › LSE premium listing successfully obtained Production AISC › Healthy balance sheet at
Slide 7: H1-2021 Performance on Track to Meet Guidance
Q2 & H1-2021 RESULTS H1-2021 PERFORMANCE ON TRACK TO MEET GUIDANCE Strong performance across all operating metrics GROUP LTM BELOW LTIFR1 INDUSTRY 0.16 1.10 Industry Average2 GROUP ON TRACK H1 PRODUCTION FOR TOP END 756koz 1,365-1,495koz Guidance $860/oz GROUP $850/oz $900/oz AISC H1 ON TRACK Guidan
Slide 8: Production and AISC
Q2 & H1-2021 RESULTS PRODUCTION AND AISC Full benefit of newly acquired Teranga assets in Q2-2021 Production and AISC Production AISC from all operations 409koz +62koz 344koz 347koz Production Q2-2021 vs. Q1-2021 244koz -$15/oz 149koz $906/oz $868/oz $853/oz $939/oz $803/oz AISC Q2-2021 vs. Q1-2021
Slide 9: Production Bridge
Q2 & H1-2021 RESULTS PRODUCTION BRIDGE Stronger performance at Hounde and Ity; full consolidation of Teranga assets Production Bridge Q1-2021 to Q2-20211 3koz 409koz 16koz 347koz +62koz 57koz 8koz (13koz) 334koz 14koz (3koz) (21koz) Q2-2021 vs. Q1-2021 $868/oz $853/oz +18% Q2-2021 vs. Q1-2021 Q1-202
Slide 10: Half Year Production
Q2 & H1-2021 RESULTS HALF YEAR PRODUCTION Stronger diversification across assets and countries compared to 2020 Ex-Teranga Assets Ex-SEMAFO Assets Endeavour legacy Assets Wahgnion Mana 102Koz +435koz 66Koz Production H1-2021 vs. H1-2020 Boungou 99Koz Sabodala-Massawa 756Koz 135Koz Karma Production K
Slide 11: Record All-in Sustaining Margin
Q2 & H1-2021 RESULTS RECORD ALL-IN SUSTAINING MARGIN Q2 benefitted from increased gold production and higher gold price vs. Q1-2021 All-in Sustaining Margin from all operations In $m, unless otherwise indicated Realized Gold Price $395m +$ 62m $341m $333m All-in Sustaining Margin Q2-2021 vs. Q1-2021
Slide 12: Operating Cash Flow
Q2 & H1-2021 RESULTS OPERATING CASH FLOW Benefit of full quarter of production from Teranga assets in Q2-2021 Operating cash flow (from continuing operations)1 $364m +$ 93m $300m Operating CF Q2-2021 vs. Q1-2021 $202m $207m $57m +45% Operating CF $1,689/oz $1,841/oz $1,841/oz $1,749/oz $1,791/oz Q2-
Slide 13: Operating Cash Flow
Q2 & H1-2021 RESULTS OPERATING CASH FLOW Benefit of full quarter of production from Teranga assets in Q2-2021 Q2-2021 vs Q1-2021 bridge operating cash flow1 INSIGHTS 1. The realised gold price increased by $42/oz from $1,749/oz in Q1-2021 to (∆$4m) $300m $1,791/oz in Q2-2021 2. Gold production incre
Slide 14: Net Debt and Liquidity Analysis
Q2 & H1-2021 RESULTS NET DEBT AND LIQUIDITY ANALYSIS Balance sheet continues to strengthen INSIGHTS Net Cash Variation Analysis › Q2-2021 financing activities include repayments on long- term debt of $120m, $59m on share buybacks and $8m finance and lease obligations repayments ($137m) › Q2-2021 inv
Slide 15: Balance Sheet Strength
Q2 & H1-2021 RESULTS BALANCE SHEET STRENGTH Strong cash generation allows both balance sheet strength and shareholder returns Net Debt Reduction 0.07x (Net Debt)/ Net Cash Net Debt / Adj. EBITDA (LTM) INVESTMENT DEBT REDUCTION DIVIDENDS PHASE PHASE & BUYBACK Low Net Debt/Adj. EBITDA (LTM) ratio $75m
Slide 16: Net Earnings Breakdown
Q2 & H1-2021 RESULTS NET EARNINGS BREAKDOWN Adjusted EPS increased by 46% 3 MONTHS ENDED INSIGHTS 30 June, 31 March, 1. Increase due to costs associated with listing on the (in $ million) A = Adjustments made for Adjusted Net Earnings 2021 2021 LSE as well as additional corporate costs following the
Slide 17: Adjusted Net Earnings Per Share
Q2 & H1-2021 RESULTS ADJUSTED NET EARNINGS PER SHARE Trending upwards over past 2 years Adjusted net earnings per share (EPS) Adjusted EPS, in $/share $1.02/share $0.73/share $0.73 Q2-2020 adj. EPS $0.48/share $0.34/share $0.30/share $0.44/share $0.45/share +$0.28 $0.30/share $0.08/share Adj. EPS in
Slide 18: Shareholder Returns
Q2 & H1-2021 RESULTS SHAREHOLDER RETURNS 2021 interim dividend set at $70 million INSIGHTS Minimum Dividend › Endeavour has implemented a Minimum Dividend at $1,500/oz gold, $m $175m shareholder returns program that is Interim Dividend composed of a minimum progressive dividend that may be supplemen
Slide 19: Shareholder Returns
Q2 & H1-2021 RESULTS SHAREHOLDER RETURNS Supplementing dividend with active buyback program INSIGHTS Indicative yield for shareholder returns Endeavour’s Share Buyback Completed To Date in 2021 Dividend › Minimum dividend commitment of US$ 125 6% million for FY-2021 represents indicative yield of 2.
Slide 20: London Stock Exchange Premium Listing
Q2 & H1-2021 RESULTS LONDON STOCK EXCHANGE PREMIUM LISTING Re-domiciliation to the United Kingdom provides direct path to FTSE inclusion TIMELINE TO FTSE INCLUSION PATH TO FTSE INCLUSION UK-Incorporated? Admission to 14 June Premium Y N Segment of LSE UK nationality test 25% free float? N Not eligib
Slide 21: Details by Mine and Project
02 SECTION 2 DETAILS BY MINE AND PROJECT
Slide 22: Sabodala-Massawa, Senegal
Q2 & H1-2021 RESULTS SABODALA-MASSAWA, SENEGAL Higher processed grade due to the high grade ore from the Sofia Main pit Q2-2021 vs Q1-2021 INSIGHTS › Production increased in Q2-2021 vs Q1-2021 due to higher processed grades › Mining activities in Q2-2021 continued to progress on the Massawa permit w
Slide 23: Sabodala-Massawa Mine, Senegal
Q2 & H1-2021 RESULTS SABODALA-MASSAWA MINE, SENEGAL Phase 1 tracking well; Phase 2 DFS scheduled for completion in Q4-2021 INSIGHTS Phase 1 Plant Expansion › Phase 1 of the plant expansion will facilitate processing of an increased proportion of high grade, free-milling Massawa ore through the Sabod
Slide 24: Sabodala-Massawa Mine, Senegal
Q2 & H1-2021 RESULTS SABODALA-MASSAWA MINE, SENEGAL Phase 1 upgrades tracking on schedule for completion in Q4-2021 Package 1: Additional Electrowinning Cell – in Position and commissioned on Package 2: Additional carbon regeneration kiln – overview of area temporary electrical works Package 3: Addi
Slide 25: Houndé Mine, Burkina Faso
Q2 & H1-2021 RESULTS HOUNDÉ MINE, BURKINA FASO Higher processed grades due to increased contributions from Kari Pump Q2-2021 vs Q1-2021 INSIGHTS Production and AISC › Production increased due to higher average processed Production, koz AISC, US$/oz grades, as the high grade Kari Pump ore contributed
Slide 26: Ity Mine, Côte d'Ivoire
Q2 & H1-2021 RESULTS ITY MINE, CÔTE D’IVOIRE Processed grades increased due to higher grade ore from the Bakatouo pit Q2-2021 vs Q1-2021 INSIGHTS Production and AISC › Production increased due to the increased average Production, koz AISC, US$/oz processed grade and gold recovery rate 79koz › Averag
Slide 27: Boungou, Burkina Faso
Q2 & H1-2021 RESULTS BOUNGOU, BURKINA FASO Lower grades as mining focused on waste extraction Q2-2021 vs Q1-2021 INSIGHTS Production and AISC › Production significantly decreased relative to Q1- Production, koz AISC, US$/oz 2021, as a greater focus was placed on waste extraction and mining was const
Slide 28: Mana, Burkina Faso
Q2 & H1-2021 RESULTS MANA, BURKINA FASO Continued strong contribution from the underground operation Q2-2021 vs Q1-2021 INSIGHTS Production and AISC › Production slightly decreased due to a reduction Production, koz AISC, US$/oz in the average processed grade which was partially offset by an increas
Slide 29: Wahgnion, Burkina Faso
Q2 & H1-2021 RESULTS WAHGNION, BURKINA FASO Greater focus on waste extraction expected in H2-2021 Q2-2021 vs Q1-2021 INSIGHTS › Production decreased due to the lower average grade processed › Ore mined was sourced mainly from the Nogbele North and Nogbele South pits and supplemented with ore from th
Slide 30: Karma Mine, Burkina Faso
Q2 & H1-2021 RESULTS KARMA MINE, BURKINA FASO Production slightly increased due to higher grades Q2-2021 vs Q1-2021 INSIGHTS Production and AISC › Production increased due to the higher average Production, koz AISC, US$/oz grade stacked and the higher gold recovery rate › The stacked ore grade incre
Slide 31: Progressing Organic Growth Pipeline
Q2 & H1-2021 RESULTS PROGRESSING ORGANIC GROWTH PIPELINE Sabodala-Massawa expansion underway; progressing DFS on greenfield projects BROWNFIELD PROJECT: GREENFIELD PROJECTS: SABODALA-MASSAWA EXPANSION FETEKRO KALANA PHASE 1 INSIGHTS: PFS INSIGHTS: PFS INSIGHTS: › Debottlenecking the plant back-end ›
Slide 32: H1-2021 Exploration Update
03 SECTION 3 H1-2021 EXPLORATION UPDATE
Slide 33: Continued Strong Exploration Focus
EXPLORATION UPDATE CONTINUED STRONG EXPLORATION FOCUS Group on track to discover over 2.5Moz of Indicated resources in 2021 2021 Exploration Budget Ity Wahgnion 11% 15% Mana 10% Sabodala-Massawa 16% $70-90 Hounde 9% million Boungou 9% Greenfields and other 30% H1-2021 Exploration Spend Wahgnion 4% S
Slide 34: Sabodala-Massawa Mine, Senegal
EXPLORATION UPDATE SABODALA-MASSAWA MINE, SENEGAL Updated resource is expected to be published in late 2021 INSIGHTS Sabodala-Massawa Plan Map › An exploration programme of up to $13.0 million has been planned for 2021 of which $3.5 million was spent in H1-2021 consisting of 46,439 meters of drillin
Slide 35: Sabodala-Massawa Mine: Sofia North extension section
EXPLORATION UPDATE SABODALA-MASSAWA MINE, SENEGAL Sofia North extension section 35
Slide 36: Sabodala-Massawa Mine: Samina section
EXPLORATION UPDATE SABODALA-MASSAWA MINE, SENEGAL Samina section 36
Slide 37: Sabodala-Massawa Mine: Tina section
EXPLORATION UPDATE SABODALA-MASSAWA MINE, SENEGAL Tina section 37
Slide 38: Houndé Mine, Burkina Faso
EXPLORATION UPDATE HOUNDÉ MINE, BURKINA FASO Follow up on initial results and delineation of the Mambo discovery INSIGHTS Houndé Site Map › An exploration programme of up to $7.0 million has been planned for 2021 of which $6.8 million was spent in H1-2021 consisting of 68,871 meters of drilling acro
Slide 39: Houndé Mine: Mambo mineralization remains open
EXPLORATION UPDATE HOUNDÉ MINE, BURKINA FASO Mambo mineralization remains open INSIGHTS Mambo geology and drilling intercepts › Drilling has confirmed that the Mambo target, located 12km from the Houndé plant, has the potential to be a significant discovery. › Mineralisation extends over 800 meters
Slide 40: Mambo section A
EXPLORATION UPDATE HOUNDÉ MINE, BURKINA FASO Mambo section A: mineralization remains open Mineralisation 40
Slide 41: Mambo section B
EXPLORATION UPDATE HOUNDÉ MINE, BURKINA FASO Mambo section B: mineralization remains open Mineralisation 41
Slide 42: Ity Mine, Côte d'Ivoire
EXPLORATION UPDATE ITY MINE, CÔTE D’IVOIRE Strong focus on the West Flotouo discovery and the Le Plaque area Ity Gold in Soil Map and H1-2021 Activity INSIGHTS › An exploration program of $9.0 million has been planned for 2021 of which $6.2 million was spent in H1-2021 consisting of 45,144 meters of
Slide 43: Ity Mine: Le Plaque area resource update
EXPLORATION UPDATE ITY MINE, CÔTE D’IVOIRE Le Plaque area resource update schedule for late 2021 INSIGHTS Le Plaque Exploration Targets › The exploration efforts in the Le Plaque area were focussed on Le Plaque South (Delta Extension) and Yopleu-Legaleu, with the aim of extending mineralisation at b
Slide 44: Delta extension section D
EXPLORATION UPDATE ITY MINE, CÔTE D’IVOIRE Delta extension section D 44
Slide 45: Boungou Mine, Burkina Faso
EXPLORATION UPDATE BOUNGOU MINE, BURKINA FASO Exploration focused on near mine targets INSIGHTS Boungou Exploration Map › An exploration program of up to $7.0 million has been planned for 2021, of which $4.6 million was spent in H1-2021 consisting of 24,307 meters of drilling. The exploration effort
Slide 46: Recent drilling around the Boungou mine area
EXPLORATION UPDATE BOUNGOU MINE, BURKINA FASO Recent drilling around the Boungou mine area NNWRC21-061 BBRC20-0059 BBRC20-0054 BNBSRC21-138 4m @ 2.94g/t \ 81m 4m @ 3.53g/t \ 55m 7m @ 8.99g/t \ 59m 4m @ 2.40g/t \ 72m Incl 1m @ 55.9 g/t HWZ Interp BNBSRC21-107 5m @ 2.06g/t \ 56m UG Study area Basalt N
Slide 47: Mana, Burkina Faso
EXPLORATION UPDATE MANA, BURKINA FASO Focus on discovering new oxide material and deep potential Mana exploration map INSIGHTS › An exploration programme of up to $8.0 million has been planned for 2021 of which $7.1 million was spent in H1- 2021. The exploration efforts were focused on oxide open pi
Slide 48: Maoula H1-2021 drilling results
EXPLORATION UPDATE MANA MINE, BURKINA FASO Maoula H1-2021 drilling results MARC21-524 MARC21-513 5m @ 3.01 g/t \ 163m 3m @ 2.39 g/t \ 37m A MARC21-572 MARC21-559 3m @ 2.11 g/t \ 35m 3m @ 2.02 g/t \ 142m MARC21-169 MADD21-521 5m @ 3.24 g/t \ 29m 14m @ 2.65 g/t \ 69m MARC21-342 11m @ 6.27 g/t \ 104m M
Slide 49: Maoula Section A
EXPLORATION UPDATE Mana MINE, BURKINA FASO Maoula Section A NW MARC21-214 Base line MARC21-208 4.0m @ 3.33 g/t \ 14m SE 5.0m @ 1.99 g/t \ 25m 4.0m @ 1.35 g/t \ 21m 6.0m @ 1.53 g/t \ 69m MARC21-207 8.0m @ 2.09 g/t \ 26m Laterite MARC21-209 300m RL 5.0m @ 3.63 g/t \ 118m MARC21-210 7.0m @ 3.29 g/t \ 1
Slide 50: Wahgnion Mine, Burkina Faso
EXPLORATION UPDATE WAHGNION MINE, BURKINA FASO Significant exploration potential exists within the permitted mine license INSIGHTS Wahgnion Mine and Permit Area › An exploration programme of up to $12.0 million has been planned for 2021 of which $2.6 million was spent in H1-2021 consisting of 9,565
Slide 51: Nogbele South section BNDD3823
EXPLORATION UPDATE WAHGNION MINE, BURKINA FASO Nogbele South section BNDD3823 51
Slide 52: Karma Mine, Burkina Faso
EXPLORATION UPDATE KARMA MINE, BURKINA FASO Exploration focused on delineating near mine extensions INSIGHTS Karma H1-2021 Drilling plan › In H1-2021, exploration work was carried out as part of the advanced grade control drilling program, with the aim of delineating near mine extensions and expedit
Slide 53: Fetekro Project, Côte d'Ivoire
EXPLORATION UPDATE FETEKRO PROJECT, CÔTE D’IVOIRE Exploration targeting resource extensions INSIGHTS Drilling between Lafigué Center and Lafigué North › In H1-2021, Fetekro was the largest greenfield exploration focus with a total of $6.4 million spent on exploration work. › In total 43,300 meters o
Slide 54: Lafigué Center section 319468E
EXPLORATION UPDATE FETEKRO PROJECT, CÔTE D’IVOIRE Lafigué Center section 319468E 54
Slide 55: Conclusion
SECTION 4 CONCLUSION ® ENDEAVOUR MINING
Slide 56: Continuing to Focus on Rewarding Shareholders
CONCLUSION CONTINUING TO FOCUS ON REWARDING SHAREHOLDERS Approach is underpinned by a resilient business and disciplined capital allocation RESILIENT BUSINESS + DISCPLINED CAPITAL ALLOCATION High Quality Being a Prudent Balance Sheet Organic Shareholder Returns Portfolio Trusted Partner Management G
Slide 57: Upcoming Catalysts
CONCLUSION UPCOMING CATALYSTS Q3 Corporate Potential inclusion into the FTSE indices 2021 Q3 Exploration 5-year exploration strategy 2021 Q4 Corporate Potential inclusion into the MSCI Europe indices 2021 Q4 Sabodala-Massawa Completion of Phase 1 plant upgrades 2021 Q4 Sabodala-Massawa Completion of
Slide 58: Appendix
05 SECTION 5 APPENDIX
Slide 59: Nogbele South section BNDD3600
EXPLORATION UPDATE WAHGNION MINE, BURKINA FASO Nogbele South section BNDD3600 59
Slide 60: Nogbele South section BNDD3821
EXPLORATION UPDATE WAHGNION MINE, BURKINA FASO Nogbele South section BNDD3821 60
Slide 61: Nogbele South section BNDD3827
EXPLORATION UPDATE WAHGNION MINE, BURKINA FASO Nogbele South section BNDD3827 61
Slide 62: 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