Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Q2 2011 Earnings Presentation
16 slides from Endeavour Mining's earnings presentation, Aug 10, 2011
Slide 1: Management Presentation – Q2 2011 Results
Management Presentation August 10, 2011 Results for the Second Quarter‐ended June 30, 2011 Endeavour Mining August 9, 2011 :: 1
Slide 2: Introduction
Introduction Neil Woodyer Christian Milau Chief Executive Officer Executive VP & CFO David Laing Stephen Roberts Senior VP, Operations Senior VP, Investor Relations This presentation may contain forward‐looking information relating to the future performance of Endeavour Mining. Forward‐looking infor
Slide 3: Q2 2011 Highlights
Q2 2011 Highlights • 21,575 ounces produced and 24,697 ounces sold during Q2 Production • 41,631 ounces produced during 6 months ended June 30, 2011 • No lost time injuries (“LTI”) or reportable environmental incidents HSE • Operated free of LTI for a total of 801 days‐equivalent • Cash Cost of $586
Slide 4: Q2 2011 – Financial Highlights
Q2 2011 – Financial Highlights EARNINGS FROM OPERATIONS Q2 2011 Q1 2011 Q2 2010 Gold sold 24,697 ozs 19,394 ozs 17,566 ozs US$ millions Gold revenue $36.0 $26.1 $20.7 Operating expenses $16.8 $13.8 $9.8 Earnings from mine operations $14.9 $8.5 $7.2 Realized loss – gold hedge $7.7 $6.0 $4.9 Operating
Slide 5: Q2 2011 – Financial Highlights
Q2 2011 – Financial Highlights FINANCIAL POSITION June 30, 2011 Cash and cash equivalents $174 million Marketable securities $21 million 38.5% stake in Namibia Rare Earths (market value) $18 million Long‐term debt nil Equity attributable to shareholders $376 million Endeavour Mining 5
Slide 6: Q2 2011 – Operating Highlights
Q2 2011 – Operating Highlights OPERATING HIGHLIGHTS Q2 2011 Q1 2011 Q2 2010 Tonnes milled (‘000 tonnes) 234 212 217 Milled grade (g/t) 2.93 3.30 3.26 Gold recovery (%) 92.4% 93.3% 93.9% Gold produced (ounces) 21,575 20,056 20,292 Gold sold (ounces) 24,697 19,394 17,566 15,278 at 10,326 at 7,816 at S
Slide 7: Youga – Monthly Performance Trends
Youga – Monthly Performance Trends Q2 2011 Q2 2011 Endeavour Mining 7
Slide 8: 2011 Guidance
2011 Guidance First Half 2011 Full Year 2011 Guidance Actual Previous Current Gold Produced (ozs) 41,631 84,000 84,000 Cash Cost per Ounce Produced* $608 Approx. $600 $610 to $650 • Recent fuel price and indirect tax increases in Burkina Faso expected to impact costs in second half of 2011 • Modest
Slide 9: Youga Greenstone Belt: $10M Program – Targets
Youga Greenstone Belt: $10M Program ‐ 17 Targets Ouaré Zerbogo Permits 2 drill targets Bitou Permits 3 drill targets Youga Mine Permit 12 drill targets Endeavour Mining 9
Slide 10: Exploration Activity Update – Youga
Exploration Activity Update ‐ Youga • Aggressive 2011 exploration campaign to extend mine life to 2017 and beyond • 12 targets within 3 km of Youga and inside the mining permit • Mineralization found in East Wall of Main pit and North Wall of East pit provide opportunity for pit expansion • Drilling
Slide 11: Exploration Activity Update – Ouaré
Exploration Activity Update ‐ Ouaré • Deposit approximately 40km from Youga mill • Current Inferred mineral resource 4.7Mt at 2.1g/t* • Drilling to increase resource and upgrade resource classification • August 3, 2011 Press Release of first 4,376 metres of the planned 25,000 metre program • Interse
Slide 12: Agbaou Gold Project, Côte d'Ivoire
Agbaou Gold Project, Côte d’Ivoire • Mining Permit application submitted • Environmental & Social Impact Study approved • Authorization to perform preliminary work received September 2010 • Engineering & technical studies underway to refine and optimize feasibility study ($4.3M budget) • Mine design
Slide 13: Agbaou Gold Project, Côte d'Ivoire
Agbaou Gold Project, Côte d’Ivoire • 20,000m drilling program in progress Photos taken July 2011 Endeavour Mining 13
Slide 14: Agbaou Gold Project, Côte d'Ivoire
Agbaou Gold Project, Côte d’Ivoire • August 3, 2011 Press Release • Results for initial 45 RC infill holes (3,104m) successful at confirming continuity of grade and widths • Intersections include: 24 m at 10.66 g/t and 10 m at 17.06 g/t • Program includes drilling in areas that were planned for mine
Slide 15: Growth Strategy
Growth Strategy • Well positioned for production growth • Free operating cash flow from the Youga gold mine • Significant resource and reserve expansion potential at Youga gold mine • Near‐term construction decision at Agbaou gold project • Recently encountered new zones of mineralization • $195 mil
Slide 16: Outlook
Outlook Gold production On target for 84,000 ozs at $610 ‐ $650 per oz* for 2011 Value generation from exploration and development Add resources and reserves to extend Youga mine life Engineering studies on A2NE and Nanga Q3 2011 Engineering studies on Zergoré and Tail Q4 2011 Ouaré dr