Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (April 2020)
161 slides from Endeavour Mining's investor presentation, April 2020
Slide 1: Corporate Presentation April 2020
CORPORATE PRESENTATION › April 2020
Slide 2: Disclaimer & Forward Looking Statements
CORPORATE PRESENTATION DISCLAIMER & FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” including but not limited to, statements with respect to Endeavour’s plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of esti
Slide 3: Table of Contents
TABLE OF CONTENTS COMBINATION WITH SEMAFO: 1 CREATION OF A LEADING WEST AFRICAN GOLD PRODUCER 2 ENDEAVOUR OVERVIEW 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 4: Creation of a Leading West African Gold Producer
STRONG STRATEGIC RATIONALE CREATION OF A LEADING WEST AFRICAN GOLD PRODUCER Strong strategic rationale for regional consolidation › 1 2 3 ENHANCED STRATEGIC POSITIONING Creates partner of choice for governments and key stakeholders › STRENGTHENED ASSET PORTFOLIO 4 cornerstone mines producing above 8
Slide 5: Good Strategic Timing Due to Business Alignment
STRONG STRATEGIC RATIONALE GOOD STRATEGIC TIMING DUE TO BUSINESS ALIGNMENT Both companies are transitioning to cash flow generation phase INSIGHTS STRONG STRATEGIC ALIGNMENT › Both companies INVESTMENT PHASE CASH FLOW PHASE completed ENDEAVOUR construction phases and are now fully Houndé constructio
Slide 6: Extensive Dialogue and Due Diligence
STRONG STRATEGIC RATIONALE EXTENSIVE DIALOGUE AND DUE DILIGENCE Both companies believe that the terms are attractive for both sets of shareholders BACKGROUND Market Capitalization since the beginning of 2019 Endeavour SEMAFO › For the past several years, Endeavour and SEMAFO have worked as industry
Slide 7: Agreed Terms of Combination
STRONG STRATEGIC RATIONALE AGREED TERMS OF COMBINATION Both boards have unanimously approved the transaction • Endeavour has entered into a definitive agreement whereby it will acquire all of the issued and outstanding securities of Proposed SEMAFO by way of a Plan of Arrangement under the Business
Slide 8: Strong Benefits for Both Sets of Shareholders
STRONG STRATEGIC RATIONALE STRONG BENEFITS FOR BOTH SETS OF SHAREHOLDERS Transaction presents a significant opportunity to create value BENEFITS FOR ENDEAVOUR SHAREHOLDERS1 BENEFITS FOR BOTH COMPANIES’ SHAREHOLDERS › Adds two cornerstone mines and enhances growth › Diversified across 4 cornerstone m
Slide 9: Endeavour becomes the largest producer in Côte d'Ivoire and Burkina Faso
STRONG STRATEGIC RATIONALE STRONG FOOTHOLD IN A HIGHLY PROSPECTIVE BELT 1 Endeavour becomes the largest producer in Côte d'Ivoire and Burkina Faso WEST AFRICA INSIGHTS Karma 4th global gold producing region Production by country Burkina Côte Houndé Mana Faso d’Ivoire Kalana 17% 10% Boungou Nabanga O
Slide 10: Creates the Largest West African Gold Producer
STRONG STRATEGIC RATIONALE CREATES THE LARGEST WEST AFRICAN GOLD PRODUCER 1 Ability to leverage its size to enhance risk management Annual West African Gold Production (Koz)1,2 +1Moz 1,100 +1Moz 1,000 900 800 For the combined 700 entity 600 500 400 No.1 300 200 100 0 (3) (3) Producer in Barrick Ende
Slide 11: Consolidates the Houndé Greenstone Belt
STRONG STRATEGIC RATIONALE CONSOLIDATES THE HOUNDÉ GREENSTONE BELT 1 Endeavour will have a strong foothold in two world-class belts Hounde Belt, Burkina Faso Ity Belt, Côte d'Ivoire Creates a world class mining district for Endeavour with two mines and a project Mana 1 2 Hounde 3 4 5 6 7 8 Bantou 9
Slide 12: Offers Significant Synergies
STRONG STRATEGIC RATIONALE 1 OFFERS SIGNIFICANT SYNERGIES Synergies across the corporate, regional and asset levels CORPORATE REGIONAL / MINE IN-COUNTRY SITE › Creates a pool of extensive › Combined operating and › Creation of a mining district management experience financial teams along the Houndé
Slide 13: Strengthened Asset Portfolio with Optionality
STRONG STRATEGIC RATIONALE 44 STRENGTHENED ASSET PORTFOLIO WITH OPTIONALITY 42 Potential to increase capital allocation efficiency with enhanced pipeline Daoukro Cluster (Ivory Coast) Kofi Trend Bondoukou Clust. (Mali) (Ivory Coast) Nabanga (Burkina Faso) PEA completed 2019 Ity CIL Fougadian Siguiri
Slide 14: Diversified Portfolio with 4 Cornerstone Mines
STRONG STRATEGIC RATIONALE 44 DIVERSIFIED PORTFOLIO WITH 4 CORNERSTONE MINES 42 Potential to continue to pursue our active portfolio management strategy Combined Entity Producing Portfolio1 AISC, $/oz Key priorities at 4 cornerstone mines › Boungou - Restart mining operations by $1,150 Q4 2020 Karma
Slide 15: Strong Cash Flow Generation Potential
STRONG STRATEGIC RATIONALE STRONG CASH FLOW GENERATION POTENTIAL 2 Ability to deliver long-term sustainable production at low cost Combined Entity Production and AISC Production AISC +1Moz +1.1Moz +1.1Moz +1Moz production ͂$900/oz ͂$800/oz ͂$800/oz <$900/oz AISC 2020E 2021E 2022E Sources: Company di
Slide 16: Competitive All-In Sustaining Costs
STRONG STRATEGIC RATIONALE COMPETITIVE ALL-IN SUSTAINING COSTS 2 AISC in the bottom third of the global cost curve Cumulative Industry AISC Cost Curve ($/oz) Industry curve based on Q4-2019 $/oz US$/oz 3,500 LOW 3,000 COST 2,500 Gold producer 2,000 1,500 1,000 Combined Entity Bottom 500 third Indust
Slide 17: Attractive Growth Project Pipeline
STRONG STRATEGIC RATIONALE ATTRACTIVE GROWTH PROJECT PIPELINE 2 Ability to deliver long-term sustainable production at low cost INSIGHTS V Endeavour SEMAFO › Priority is to focus on cash flow NAME Kalana Fetekro Bantou Nabanga generation while building optionality in the portfolio COUNTRY Mali Côte
Slide 18: Strong Ability to Fund Growth
STRONG STRATEGIC RATIONALE STRONG ABILITY TO FUND GROWTH 2 Sustained cash flow profile and sound balance sheet Available sources of liquidity Top Producers Leverage As at December 31, 20193 Based on Current Reported Net Debt / LTM EBITDA1 5.0x 4.0x $120m EDV 0.7x 3.0x Undrawn RCF Leverage ratio2 2.0
Slide 19: Enhanced Capital Market Profile: Top Producers
STRONG STRATEGIC RATIONALE ENHANCED CAPITAL MARKET PROFILE 3 Ability to meet investment hurdles of larger funds Industry Top Producers (Moz) Based on latest reported fiscal year gold production, unless otherwise stated 1 6.5 6.0 5.5 Top 15 2.5 Global gold producer 2.0 1.5 1.0 0.5 0.0 1.0Moz 3 Polyme
Slide 20: Enhanced Capital Market Profile: Market Capitalisation
STRONG STRATEGIC RATIONALE ENHANCED CAPITAL MARKET PROFILE 3 Ability to meet investment hurdles of larger funds Market Capitalisation of Top Producers (US$B) Based on current market capitalisation1 37 14 13 12 $ 2.1B 11 10 Market Cap of 9 Combined Entity 8 7 6 5 4 Top 15 3 2 1 0 Polyus Alamos Regis
Slide 21: Combined Entity Returns Following Investment Phases
STRONG STRATEGIC RATIONALE ENHANCED CAPITAL MARKET PROFILE 3 Combined entity demonstrates attractive returns following investment phases Return on Capital Employed (ROCE) (1) SEMAFO ENDEAVOUR 13% 14% for H2-2019 10% 11% Combined 2019 ROCE annualized 6% 5% 1% 1% +20% ROCE target with strong capital a
Slide 22: Key Strategic Priorities Post Integration
STRONG STRATEGIC RATIONALE KEY STRATEGIC PRIORITIES POST INTEGRATION Anchored around 4 strategic pillars 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCKING EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT › Restart Boungou › Accelerate exploration › Continue successful › Accelerate m
Slide 23: Creation of a Leading West African Gold Producer
STRONG STRATEGIC RATIONALE CREATION OF A LEADING WEST AFRICAN GOLD PRODUCER Strong benefits for both sets of shareholders KEY BENEFITS FOR ALL SHAREHOLDERS COMBINED ENTITY › Creates top 15 global gold producer with +1 million ounces of gold production per year › Creates a leading West African gold p
Slide 24: Table of Contents
TABLE OF CONTENTS COMBINATION WITH SEMAFO: 1 CREATION OF A LEADING WEST AFRICAN GOLD PRODUCER 2 ENDEAVOUR OVERVIEW 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 25: Endeavour Mining Overview
CORPORATE PRESENTATION ENDEAVOUR MINING OVERVIEW A premier diversified West African gold producer SENEGAL GAMBIA MALI Karma Mine 3,800 GUINEA- BURKINA FASO Bamako EMPLOYEES WORLDWIDE BISSAU Ouagadougou Kalana GUINEA Project Houndé Mine SIERRA Fetekro 680-740koz LEONE CÔTE Project $845-895/oz D’IVOIR
Slide 26: Company Profile
CORPORATE PRESENTATION COMPANY PROFILE Shareholder Distribution Ticker TSX:EDV Shares Outstanding as at December 31 110m RETAIL LA MANCHA MANAGEMENT INSTITUTIONAL Share price as at April 15 C$25.58 Europe Market cap as at April 15 US$2.00B Net Debt as at December 31 US$528m Other North America 5% 30
Slide 27: Create a Premier Diversified West African Gold Producer
CORPORATE PRESENTATION CREATE A PREMIER DIVERSIFIED WEST AFRICAN GOLD PRODUCER STRATEGIC OBJECTIVES STRATEGIC PILLARS <$850/oz Diversification All-in Sustaining Cost across multiple countries and mines +10 YEARS Production visibility +20% ROCE from operating assets with strong capital allocation dis
Slide 28: Our History
CORPORATE PRESENTATION OUR HISTORY Strategically repositioned Endeavour as a leading African Gold producer 2016 - 2019 TURN-AROUND 2015 PROFILE $1billion invested 2020 PROFILE All-in Sustaining $922/oz 2 flagship mines built $845-895/oz Cost 6.3Moz discovered at $12/oz 4 years 10+ years Production v
Slide 29: Production and AISC Profile
CORPORATE PRESENTATION PRODUCTION AND AISC PROFILE Newly built Houndé and Ity flagship mines have low AISC and long mine lives FOCUSED ON BUILDING HOUNDÉ AND ITY CASHFLOW PHASE >800koz 727koz 680-740koz 663koz 651koz 593koz 516koz $922/oz $886/oz $866/oz $843/oz $845-895/oz ~$813/oz 2015 2016 2017 2
Slide 30: Operational Excellence: Management Model
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Hands-on management model with teams close to operations London Based Sebastien de Montessus CEO & Director SENEGAL MALI 2h40 GAMBIA Karma Louis Irvine Mine CFO BURKINA FASO Morgan Carroll GUINEA- Bamako Houndé EVP Corporate Finance & BISSAU Kalana Min
Slide 31: Operational Excellence: Safety Record
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Our safety record remained below the industry average Lost Time Injury Frequency Rate(1) (on a rolling 12-months basis) 0.66 0.12 LTM Lost Time Injury 0.40 Frequency Rate 0.29 0.16 2 LTI 0.12 0.00 0.00 0.00 Peer FY2016 FY2017 FY2018 FY2019 Houndé Agbao
Slide 32: Operational Excellence: Growing Local Talent
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Focused on growing local talent Employee breakdown for continuing operations Expats Nationals GENERAL MANAGERS 75% 95% site workforce 3 out of 4 are West-African are nationals 0% 25% in 2017 in 2018 SITE WORKFORCE HEAD OF DEPARTMENTS 95% 42% 75% 2,327
Slide 33: Operational Excellence: Responsible Gold Mining Principles
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Adoption of World Gold Council’s Responsible Gold Mining Principles Adopted from the World Gold Council Responsible gold mining principles › An over-arching framework that sets out clear expectations as to what constitutes responsible gold mining › Des
Slide 34: Operational Excellence: Seventh Consecutive Year Meeting Guidance
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Seventh consecutive year of meeting guidance Production, on a 100% basis, in koz All-in Sustaining Costs, in $/oz Guidance Guidance 800 1,010 700 600 922 500 886 869 400 727 843 663 651 300 593 818 516 466 200 100 0 2014 2015 2016 2017 2018 2019 2014 2
Slide 35: Operational Excellence: Two Flagship Mines
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Improved portfolio quality through construction of two flagship mines COMBINED TOTAL 2 FLAGSHIP ASSETS OTHER ASSETS ASSETS HOUNDÉ ITY AGBAOU KARMA ALL OPERATIONS Plant type CIL CIL CIL Heap Leach Mine type Open pit Open pit Open pit Open pit 230 235 11
Slide 36: Project Development: Strong Construction Track Record
CEO CORPORATE INTRODUCTION PRESENTATION PROJECT DEVELOPMENT 2 Strong construction track record MOST RECENT MINE BUILDS COMPLETION NZEMA, GHANA, BUILT IN 2010 AGBAOU, CÔTE D’IVOIRE, BUILT IN 2014 ON-SCHEDULE HOUNDÉ, BURKINA FASO, BUILT IN 2017 ITY CIL, CÔTE D’IVOIRE, BUILT IN 2019 ON-BUDGET 0 LTIs 36
Slide 37: Project Development: Self-performing Tasks
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Self-performing tasks driving cost savings › Examples of self-performed tasks: % of self-performed tasks +94% +95% ‒ Civil works with own concrete plant ‒ Earthworks with own equipment ‒ Tailings storage facility earthworks +60% ‒ Bolted tank construction
Slide 38: Project Development: Strong Organic Growth Pipeline
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Strong organic growth pipeline 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 (Côte d’Ivoire) Kalanako (Mali) Kalana Sia/Sianikoui (Houndé trend)
Slide 39: Project Development: Updated Studies in 2020
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Advancing optionality in portfolio - updated studies in 2020 INSIGHTS Kalana Fetekro › While the main focus for 2020 will be on cash flow generation, Endeavour Country will also continue to build optionality Mali Côte D’Ivoire within the portfolio by adva
Slide 40: Unlock Exploration Value
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Among largest and most promising portfolios in West Africa 10,090km² EXPLORATION TENEMENTS +200 EXPLORATION TARGETS 14Moz 10-15Moz 5-YEAR DISCOVERY M&I RESOURCES TARGET *Reserve and Resource at year-end 2018 40
Slide 41: Screening and Ranking Methodology
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Screening and ranking methodology Exhaustive screening of all Strategic >200 potential targets Prioritization CONSERVATIVE First filtering APPROACH SIMILAR TO THAT USED IN Exploration budget OIL & GAS INDUSTRY required per target to 130+ target scree
Slide 42: Starting to Deliver Against Our 5-Year Strategy
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Starting to deliver against our 5-year strategy Indicated discovery target by area as published in Nov. 2016 4.0-6.0Moz 4.0-6.0Moz 10-15Moz 5-year Indicated Resource discovery target 2.5-3.5Moz 1.5-2.5Moz 0.5-1.0Moz 0.5-1.5Moz 0.5-1.5Moz target excee
Slide 43: Over 1.2 Million Meters of Drilling 2017-2019
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Over 1.2 million meters of drilling between 2017 and 2019 2017 PRIORITIES Exploration spend by mine 1. Ity to extend HL and Improve CIL case $49m 2. Tabakoto due to its short mine life $44m $53m $45-50m 3. Agbaou to test potential 9% 19% 2018 PRIORIT
Slide 44: On Track to Meet 5-Year Exploration Targets
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 On track to meet 5-year exploration targets Total Indicated discoveries and targets Indicated resources discovered 6.3Moz Indicated resources targeted % Cumulative Indicated resources against 5-year discovery target 100% 80% 1.5-2.5Moz 10-15Moz disco
Slide 45: Quickly Bringing Discoveries into Production
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Quickly bringing high quality discoveries into production BAKATOUO (ITY) KARI PUMP KARI W+C LE PLAQUE (ITY) FETEKRO ( HOUNDÉ) (HOUNDÉ) DISCOVERY COST $10/oz $15/oz $9/oz $15/oz $9/oz M&I 1Moz 1.2Moz 704Koz 476Koz 1Moz RESOURCES at 1.61 g/t at 2.54 g/
Slide 46: High Quality Discoveries Made
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 High quality discoveries made Discovery grades for Indicated resources by deposit From mid-2016 to end of 2019 unless indicated otherwise 3.20g/t 2.70g/t 2.54g/t >2 g/t grade of 75% of 2.20g/t 2.14g/t 2.14g/t 2.10g/t discovered ounces 1.71g/t 1.50g/t
Slide 47: Low Discovery Cost
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Low discovery cost Discovery cost for Indicated resources by deposit From mid-2016 to end of 2019 unless indicated otherwise $149/oz $12/oz Average Endeavour discovery cost to date $76/oz $29/oz $15/oz $15/oz $15/oz $14/oz $13/oz 6x lower $10/oz $9/o
Slide 48: Exploration Potential for +250koz for 10 Years
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Exploration demonstrates potential for +250koz for 10 years at flagship mines DISCOVERIES MADE Ity production plan LE PLAQUE KARI AREA (As per 2017 Optimized Study (3), based on 4Mtpa plant and excludes Le Plaque discovery) SINCE STUDIES WERE PUBLISH
Slide 49: Strong Cash Flow Generated in H2-2019
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Strong cash flow generated in H2-2019 Net Cash Flow Net cashflow before repayment/proceeds of long-term debt, convertible bond and equipment finance obligation +$85m ITY CIL CONSTRUCTION ITY CIL PRODUCTION $80m $52m Q4-19 vs Q4-18 ($5m) (
Slide 50: Leverage Expected to Decrease Below 1.0x
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Leverage expected to decrease to below 1.0x Net Debt/EBITDA by year end Net Debt Reduction 132m Ity capex incurred the period INVESTMENT DEBT REDUCTION Ity capex remaining Net Debt Net Debt / Adj. EBITDA (LTM) PHASE PHASE $ $635m $660m -$
Slide 51: Focus on Returns: ROCE Target of +20%
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Focus on returns following investments – ROCE target of +20% Return on Capital Employed (ROCE) by asset Group Return on Capital Employed Ity Hounde 26% 30% 10% Capital Employed ITY ROCE Agbaou Expected to increase 10% based on higher 2020
Slide 52: Investment Proposition
CORPORATE PRESENTATION INVESTMENT PROPOSITION Exposure to strong fundamentals and with upside potential STRONG FUNDAMENTALS › High quality asset base generating strong free cash flow yield › Capital allocation discipline with >20% ROCE target › Strong organic growth potential Immediate ATTRACTIVE VA
Slide 53: 2020 Key Focus Areas
CORPORATE PRESENTATION 2020 KEY FOCUS AREAS STRATEGIC OBJECTIVES 2016 - 2019 TURNAROUND 2020 KEY FOCUS AREAS › CASH FLOW GENERATION $1billion invested & DELEVERAGING <$850/oz Diversification › CONTINUE TO EXTEND AISC across multiple countries and mines 2 flagship mines built MINE LIVES OF FLAGSHIP A
Slide 54: 2020 Guidance
CORPORATE PRESENTATION 2020 GUIDANCE INSIGHTS Production Guidance › Group production is expected to increase to 680-740koz in 2020 at an AISC of $845-895/oz. Production is 2019 2020 FULL-YEAR expected to be higher and AISC lower during the latter (All amounts in koz, on a 100% basis) ACTUALS GUIDANC
Slide 55: 2020 Guidance (continued)
CORPORATE PRESENTATION 2020 GUIDANCE (continued) SUSTAINING COSTS INSIGHTS Capital Expenditure Guidance, $m › Ity: $4m, mainly related to heavy mining equipment components SUSTAINING NON-SUSTAINING › Houndé: Circa $50m, due to carryover of costs not incurred in 2019. Roughly CAPITAL CAPITAL $40m is
Slide 56: Table of Contents
TABLE OF CONTENTS COMBINATION WITH SEMAFO: 1 CREATION OF A LEADING WEST AFRICAN GOLD PRODUCER 2 ENDEAVOUR OVERVIEW 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 57: Diversified Portfolio Producing Mines
CORPORATE PRESENTATION DIVERSIFIED PORTFOLIO 6 producing mines MINE GOLD M&I M&I RESOURCE AISC1 RESERVES RESERVE GRADE2 NAME COUNTRY PRODUCTION1 RESOURCES2 GRADE2 (US$/oz) (Moz) (g/t) (Koz) (Moz) (g/t) Houndé Burkina Faso 240 880 2.16 2.10 3.89 2.00 Ity Côte D’Ivoire 245 653 3.14 1.60 3.85 1.50 Ende
Slide 58: Houndé Mine, Burkina Faso: Overview
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 60.4Mt @ 2.01 g/t for 3.893Moz (incl. of Reserves) Inferred: 6.9Mt @ 2.07 g/t for 0.456Moz Ouagadougou Reserves 32.6Mt @ 2.06 g/t for 2.164Moz Houndé Mi
Slide 59: Houndé Mine: Q4 Throughput and Strip Ratio
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Q4 benefited from higher throughput and lower strip ratio Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained flat as slightly higher Production, koz AISC, US$/oz throughput was offset by lower processed grades 76koz ‒ Mining focused
Slide 60: Houndé Mine: Potential to Start Mining Kari Pump
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Potential to start mining Kari Pump in the latter portion of the year FY-2019 INSIGHTS Production and AISC › As guided, production decreased and AISC increased due AISC ($/oz) Production (koz) to low grade stockpiles supplementing the mill feed and a
Slide 61: Houndé Mine: Mine Life Extension with Kari Reserves
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Mine life to be extended with upcoming Kari West & Center reserves DISCOVERIES MADE SINCE STUDIES KARI PUMP Houndé production plan WERE PUBLISHED (HOUNDÉ) (As per 2016 Optimized Study(2), excludes Kari Pump discovery) 1.1Moz of total reserve additions
Slide 62: Houndé Mine: Significant Exploration Potential
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Significant exploration potential highlighted INSIGHTS › Following a two year period of no exploration drilling, activities resumed in 2017 2.5-3.5Moz › In 2017, targets were 5-YEAR DISCOVERY drilled and ranked › Work performed TARGET included advance
Slide 63: Houndé Mine: Strong Exploration Focus
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Strong exploration focus Kari Mineralization Map at November, 2019 Houndé exploration targets over gold-in-soil anomalies 63
Slide 64: Houndé Mine: Kari Gold in Soil Anomaly
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari gold in soil anomaly covers a 6km-long by 3km-wide area INSIGHTS Kari target map › Kari gold in soil anomaly covers a 6km-long by 3km- wide area. › The Kari area has been the main exploration focus over the past two years with over 350,000m drill
Slide 65: Houndé Exploration: Maiden Reserve for Kari Pump
CORPORATE PRESENTATION HOUNDÉ EXPLORATION, BURKINA FASO Maiden Reserve of 710koz for Kari Pump deposit 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 higher grade: 53% highe
Slide 66: Houndé Mine: Kari Pump Oxide/Transition Ore
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO ~53% of the Kari Pump reserve is oxide/transition ore Section B-B’ 66
Slide 67: Houndé Mine: Kari Pump Continuous Mineralisation
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Pump has a highly continuous mineralisation INSIGHTS Kari Pump Extension Drilling and Selected Intercepts › Drilling campaigns in 2017 and 2018 successfully delineated the Kari Pump maiden resource and related reserves › The 2019 drilling campaig
Slide 68: Houndé Mine: Kari West and Kari Center Resource
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Combined 1.0Moz maiden Indicated Resource at Kari West and Kari Center 2019 Drilling Activity in the Kari Area INSIGHTS › Combined Indicated resource of 19.4Mt at 1.61 g/t Au for 1.0Moz based on a 0.5 g/t cut-off, which includes 7.2Mt at a higher grad
Slide 69: Houndé Mine: Kari West Maiden Resource
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari West: 0.9Moz maiden resource delineated in Q4-2019 INSIGHTS Kari West 2019 drill map with selected intercepts › Discovered during the 2018 AC drilling campaign › In 2019, follow-up RC drilling has successfully delineated and defined a mineralized
Slide 70: Houndé Mine: Kari West Remains Open
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari West: remains open at depth, to the west and to the east 70
Slide 71: Houndé Mine: Kari Center Maiden Resource
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Center: maiden resource delineated in Q4-2019 INSIGHTS Kari Center Drilling Activity over 2019 › Mineralization was first intercepted at Kari Center during AC initial reconnaissance drilling in 2017. Follow up RC and DD drill programs in 2018 con
Slide 72: Houndé Mine: Kari Center Open to Southwest
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Center: remains open to the southwest 72
Slide 73: Houndé Mine: Vindaloo High-Grade Plunges
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Vindaloo: targeting high-grade plunges 73
Slide 74: Ity Mine, Côte d'Ivoire: Overview
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 78.4Mt @ 1.53 g/t for 3.851Moz (incl. of Reserves)(1) Inferred: 18.0Mt @ 1.35 g/t for 0.780Moz Côte d’Ivoire Reserves 62.1Mt @ 1.57g/t for 3.144Moz Côte
Slide 75: Ity Mine: Lower Grade Stockpiles Supplement Mill Feed
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Lower grade stockpiles used to supplement mill feed Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production decreased slightly as lower Production, koz AISC, US$/oz processed grades and recoveries were HL CIL partially offset by increased plant thr
Slide 76: Ity Mine: Greater Proportion of Fresh Ore in 2020
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE A greater proportion of fresh ore is planned to be processed in 2020 FY-2019 INSIGHTS Production and AISC › Ity had its first gold pour in March 2019 with commercial AISC ($/oz) Production (koz) production declared in early Q2-2019 › The comparative per
Slide 77: Ity Mine: Extended with Le Plaque Discovery
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Ity expected to be extended with Le Plaque discovery LE PLAQUE Ity production plan DISCOVERIES MADE SINCE STUDIES (As per 2017 Optimized Study (2), based on 4Mtpa plant and excludes Le Plaque discovery) WERE PUBLISHED (ITY) 0.5Moz of total reserve addit
Slide 78: Endeavour Controls the Full Ity Birimian Belt
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Endeavour controls the full Ity Birimian belt 4-6Moz 5-YEAR DISCOVERY TARGET <$15/oz AVERAGE 5-YEAR DISCOVERY COST Targeting to discover between 4 - 6 Moz with average grade between 2.0 - 3.5 g/t Au. The potential quantity of ounces is conceptual in nat
Slide 79: Ity Mine: Strong Near-Mine Exploration Potential
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Strong near-mine exploration potential Ity Mine Drilling Targets Simplified Ity Map with Exploration Targets 79
Slide 80: Ity Exploration: Le Plaque Maiden Resource
CORPORATE PRESENTATION 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 significa
Slide 81: Ity Mine: 2019 Exploration Focus on Le Plaque
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE 2019 exploration focus was on the Le Plaque discovery INSIGHTS Le Plaque Drill Map and Selected Intercepts (true width/grade) Per Area › Exploration efforts in 2019 were mainly focused on the Le Plaque target. Due to the success of the campaign, the ini
Slide 82: Ity Mine: Section A - Epsilon Area
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Section A - Epsilon Area 82
Slide 83: Ity Mine: Section B Le Plaque Main and South
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Section B Through the Le Plaque Main and Le Plaque South Areas 83
Slide 84: Ity Mine: Several Other Nearby Targets
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Several other nearby targets 84
Slide 85: Ity Trend: Greater Ity Gold in Soil Anomalies
CORPORATE PRESENTATION ITY TREND, CÔTE D’IVOIRE Greater Ity regional gold in soil (> 100 ppb) anomalies PR609 East Cavally Several Targets Birimian meta sediments and green belt Gnamapleu Granite-Gneiss PR558 Le Plaque Area Several Targets No Geochemical data at all GUEYA area No Exploration Several
Slide 86: Mana, Burkina Faso: Overview
APPENDIX MANA, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% (10% owned by Republic of Burkina Faso) Karma Mine Resources M&I: 58.7Mt @ 2.17 g/t for 4.1Moz (incl. of Reserves)1 Inferred: 8.9Mt @ 2.66 g/t for 0.8Moz Mana Ouagadougou P&P Reserves1 15.0t @ 2.91g/t for 1.4Moz Boungou P
Slide 87: Boungou, Burkina Faso: Overview
APPENDIX BOUNGOU, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% (10% owned by Republic of Burkina Faso) Karma Mine Resources M&I: 16.1Mt @ 3.55g/t for 1.8Moz (incl. of Reserves)1 Inferred: 1.3Mt @ 2.98g/t for 0.1Moz Mana Ouagadougou P&P Reserves1 10.3t @ 3.72g/t for 1.2Moz Boungou
Slide 88: Agbaou Mine, Côte d'Ivoire: Overview
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 7.6Mt @ 2.14 g/t for 519Moz (incl. of Reserves) Inferred: 0.7Mt @ 1.59 g/t for 0.037Moz Côte d’Ivoire Reserves 6.3Mt @ 1.58g/t for 0.321Moz Ity Mine P
Slide 89: Agbaou Mine: Higher Recovery Rate
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Higher recovery rate compensated for lower mill throughput and grades Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained flat as a slightly Production, koz AISC, US$/oz higher recovery rate compensated for 44koz lower mill throughp
Slide 90: Agbaou Mine: Harder Ore Expected in 2020
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Harder ore expected to be mined in 2020 FULL YEAR 2019 INSIGHTS Production and AISC › As guided, production decreased marginally due to lower mill throughput and grades AISC ($/oz) Production (koz) which were partially offset by a higher recovery rat
Slide 91: Agbaou Mine Exploration
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Target of finding between 0.5 to 1.5Moz AREAS OF FOCUS: Agbaou Site Map › Main 2017-2018 > 50 ppb priorities were to test area and to generate targets and 0.5-1.5Moz prioritize for the 5-YEAR DISCOVERY upcoming campaigns TARGET › Key Areas targeted were
Slide 92: Agbaou Mine: Short Drilling Campaigns on Near-Mine Targets
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Short drilling campaigns conducted on near-mine targets Agbaou Site Map INSIGHTS › The 2019 exploration program began in Q3-2019, with full results pending from the 2,000 meters of diamond drilling and 5,100 meters of reverse circulation drilling con
Slide 93: Agbaou Mine Exploration: Mineralization Under North Pit
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Intercepted mineralization 150m under the North pit Section - AGBDD2141 2m@1.38/t Au 2m@2g/t Au 4m@2g/t Au (incl. 1m@5.23g/t) 2m@5g/t Au 4m@17g/t Au (incl. 2m@26.33g/t) 4m@3g/t Au (incl. 2m@4,70g/t) 3m@2.34g/t Au (incl. 1m@6.26g/t) 3m@2.67g/t Au (incl.
Slide 94: Strong Out-Performance Compared to Study
CORPORATE PRESENTATION STRONG OUT-PERFORMANCE COMPARED TO STUDY Produced almost 300koz more over first 5 years at a 10% lower AISC Production and AISC performance vs. study Actual production Study production Actual AISC Study AISC Mainly free dig oxide operation 196koz Mixing low grade to speed up w
Slide 95: Plant Running Significantly Above Nameplate
CORPORATE PRESENTATION STRONG OUT-PERFORMANCE COMPARED TO STUDY Plant running significantly above nameplate Plant performance vs. study Actual Study Benefit of plant running 30% above nameplate and additions of oxide ore reserve ~30% 2.8kt 2.9kt 2.8kt Above nameplate 2.7kt 2.7kt capacity based on ox
Slide 96: Reserves Endowment Up 48% Since Construction
CORPORATE PRESENTATION STRONG PERFORMANCE COMPARED TO STUDY Reserves endowment up 48% since construction with more oxide material Reserves and depletion Reserves at year-end Cummulative depletion 1.3Moz reserve 1.3Moz 1,027koz endowment Reserves endowment 880koz 926koz 853koz 668koz 461koz 321koz 15
Slide 97: Additional $182m After-Tax Cash Flow Generated
CORPORATE PRESENTATION STRONG PERFORMANCE COMPARED TO STUDY Additional $182m after-tax cash flow was generated Cumulative After-Tax Cash Flows(1) Study Actual US$m 400 300 $322m 62% IRR based only on 200 Payback of first 5 years $140m 100 18 months 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 (100) (
Slide 98: Karma Mine, Burkina Faso: Overview
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 52.6Mt @ 1.21 g/t for 2.042Moz (incl. of Reserves) Inferred: 15.7Mt @ 1.35 g/t for 0.681Moz Ouagadougou Reserves 9.2Mt @ 0.99g/t for 0.293Moz Houndé Mine
Slide 99: Karma Mine: Lower Costs from Oxide Ore
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Lower costs due to the benefit of mining and stacking primarily oxide ore Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained fflat as an increase in Production, koz AISC, US$/oz stacked tonnage and recovery rates offset the 33koz low
Slide 100: Karma Production Profile
CORPORATE PRESENTATION KARMA PRODUCTION PROFILE Mining activity is expected to occur at the Kao North and GG1 pits in 2020 FULL YEAR 2019 INSIGHTS Production and AISC › As guided, production decreased due to lower grades associated with supplemented ore AISC ($/oz) Production (koz) stacked from stoc
Slide 101: Karma Mine: 2019 Exploration Program
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO 2019 program focused on testing the extensions of Kao deposits and infill drilling INSIGHTS Karma Site Map › The 2019 exploration program began in late Q3-2019 with 27,000 meters drilled, focused mainly on testing the extensions of Kao deposits and inf
Slide 102: Kalana Project, Mali: Overview
CORPORATE PRESENTATION KALANA PROJECT, MALI Overview QUICK FACTS (ON 100% BASIS – Based on Avnel’s DFS) Ownership 80% EDV; 20% Mali government Status EDV updating the Avnel FS M&I Resources (inclusive of reserves) 3.0Moz @ 4.14g/t (as per Avnel) Mali Reserves 1.96Moz @ 2.80g/t (as per Avnel) Mining
Slide 103: Kalana Project: Accretive Acquisition
CORPORATE PRESENTATION KALANA PROJECT, MALI Accretive acquisition with strong upside TRANSACTION BACKGROUND Reserve life of mine plan based on Avnel Study (only based on Kalana Main deposit) › Purchased for $122m ($7m shares), Production AISC representing 7% of the EDV market cap › Attractive purcha
Slide 104: Kalana Project: Increase in Resource Confidence
CORPORATE PRESENTATION KALANA PROJECT, MALI Significant increase in resource confidence based on tighter geological controls INSIGHTS Kalana Main deposit M&I resource evolution › An exploration program conducted in 2018 comprised of approximately 48,000m of drilling › At the Kalana Main deposit, the
Slide 105: Kalana Project: 2018 Block Model Results
CORPORATE PRESENTATION KALANA PROJECT, MALI 2018 Block Model Results Blockmodel – Section S100 105
Slide 106: Kalana Project: Work Undertaken Since Acquisition
CORPORATE PRESENTATION KALANA PROJECT, MALI Work undertaken at Kalana since acquisition FOLLOWING THE Ity CIL Project Case Study AVNEL ACQUISITION: Plant Size Reserves Production AISC Mine life First 5 years First 10 years First 5 years First 10 years › Integration of Avnel into Endeavour Ity PFS 2.
Slide 107: Kalana Project Exploration
CORPORATE PRESENTATION KALANA PROJECT EXPLORATION, MALI Aim to increase resource base for project Several Licenses INSIGHTS under negotiation With Private › In 2019, a $2 million reconnaissance drilling owners campaign comprising approximately 20,500 meters, was conducted on targets located in proxi
Slide 108: Kalana Project: Kalana North Intercepts
CORPORATE PRESENTATION KALANA PROJECT, MALI 2018 Results – Positive Kalana North Intercepts 2m @ 15.90 g/t 1m @ 3.76 g/t 5m @ 13.49 g/t 1m @ 0.6 g/t 1m @ 3.52 g/t 1m @ 7.08 g/t 1m @ 0.78 g/t 3m @ 1.24 g/t 4m @ 2.08 g/t 2m @ 0.6 g/t Pending assays 1m @ 1.08 g/t Drillhole with VG 108
Slide 109: Kalanako Deposit Exploration Activities
CORPORATE PRESENTATION KALANA PROJECT, MALI Kalanako deposit exploration activities INSIGHTS Kalanako deposit drilling › Over 13,000 were drilled in 2018 RC DDH DDTT # (m) # (m) # (m) 99 12,765 1 189 2 350 › A resource was published in Q1-2019 Tonnage Grade Content Kalanako (Kt) Au g/t (Au koz) Meas
Slide 110: Regional Kalana Exploration Potential
CORPORATE PRESENTATION KALANA PROJECT, MALI Regional Kalana Exploration Potential Termite Mounts Au anomalies INSIGHTS › Fougadian application being processed › Kalako East licenses under review and discussion with private owners › Drilling started in 2019 110
Slide 111: Greenfield Fetekro, Côte d'Ivoire
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro is our most advanced greenfield exploration property INSIGHTS Simplified Map of the Fetekro Property Showing Lafigué › Fetekro is located in north-central Côte d’Ivoire, approximately 500km from Abidjan, within the northern-end of the
Slide 112: Fetekro Resource is of High Quality
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro resource is of high quality INSIGHTS Lafigué Mineral Resource Estimate Evolution › High quality resource: AS AT DECEMBER 31, 2018 AS AT AUGUST 31, 2019 Δ AU ‒ Amenable to open pit mining as Tonnage Grade Content Tonnage Grade Content C
Slide 113: Fetekro's Lafigué Deposit Remains Open
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué deposit remains open UPSIDE POTENTIAL Fétékro’s Lafigué Geological Interpretation and Selected Best Intercepts › Lafigué deposit clearly remains open in various directions, especially towards South and South East › High-grade
Slide 114: Lafigué North Cross-Section (Eastern part)
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué North Cross-Section (Eastern part) 114
Slide 115: Lafigué North Cross-Section (Western part)
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué North Cross-Section (Western part) 115
Slide 116: Lafigué Centre Cross Section
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué Centre Cross Section 116
Slide 117: Fetekro's Upside Potential with Nearby Targets
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s upside potential with nearby targets INSIGHTS › Approximately 35% of the 2019 reconnaissance drilling program was dedicated to the larger Western Anomalies (“WA”), WA 2 and 6 targets following the positive results obtained over WA1 a
Slide 118: JV With Barrick on Sissedougou / Mankono
CORPORATE PRESENTATION GREENFIELD EXPLORATION, CÔTE D’IVOIRE JV With Barrick on Sissedougou / Mankono JV WITH BARRICK (EX-RANDGOLD) › Drill results suggested the presence of an 800-metre mineralized structure at Sissedougou with best drill results of : ‒ 34.6 m @ 2.08 g/t Au at 74.6 m, including 1.0
Slide 119: Greenfield Exploration, Burkina Faso: Liguidi Area
CORPORATE PRESENTATION GREENFIELD EXPLORATION, BURKINA FASO Liguidi Area 119
Slide 120: Greenfield Exploration, Niger
CORPORATE PRESENTATION GREENFIELD EXPLORATION, NIGER New and Well Located Exploration Licenses INSIGHTS › Full review of country prospectivity conducted in 2016 › Highly prospective area of Nassile and Dar-Guiti Exploration Permit applied for and obtained in 2017 › Total surface area: 695 km² 120
Slide 121: Greenfield Exploration, Guinea
CORPORATE PRESENTATION GREENFIELD EXPLORATION, GUINEA New and Well Located Licenses in Siguiri Basin GUINEA: 121
Slide 122: Greenfield Exploration, Mali: Kofi Area
CORPORATE PRESENTATION GREENFIELD EXPLORATION, Mali Kofi area › Kofi on same trend as Randgold’s Loulo-Gounkoto in Mali › Exploration license of Kofi not sold in Tabakoto sales process › Aim is to attain additional license around Kofi North / Netekoto to consolidate exploration cluster 122
Slide 123: Table of Contents
TABLE OF CONTENTS COMBINATION WITH SEMAFO: 1 CREATION OF A LEADING WEST AFRICAN GOLD PRODUCER 2 ENDEAVOUR OVERVIEW 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 124: Equity Markets Strongly Support West Africa
CORPORATE PRESENTATION EQUITY MARKETS STRONGLY SUPPORT WEST AFRICA Amongst top ranking region for equity proceeds over past 10 years Equity raises for gold companies over past 10 years For the period between 2006-2016 10 $9.82B 8 +$ 6 billion raised for West Africa $6.35B $5.89B US$ Billions 6 4 $3.
Slide 125: Significant Exploration Efforts in West Africa
CORPORATE PRESENTATION SIGNIFICANT EXPLORATION EFFORTS IN WEST AFRICA Endeavour represents over 10% of total West African spend 2017 exploration budget ($m) 677 634 +$ 5 billion spent in West Africa 385 over last 10 years 363 247 176 175 173 137 123 113 110 100 77 75 74 71 47 10% of global budget is
Slide 126: Significant West-Africa Exploration Success
CORPORATE PRESENTATION SIGNIFICANT WEST-AFRICA EXPLORATION SUCCESS Top ranking region for discoveries over past 10 years Discoveries by area For the period between 2006-2016 +79Moz 79Moz Discovered over past 10 years in West Africa 50Moz 42Moz 33Moz No.1 27Moz 27Moz 23Moz 22Moz 20Moz 18Moz 16Moz 16M
Slide 127: More Exploration Expenditures in a Region 5x Smaller
CORPORATE PRESENTATION SIGNIFICANT EXPLORATION EFFORTS IN WEST AFRICA More exploration expenditures in a region that is 5x smaller Land mass compared to exploration spend 900 800 700 2017 exploration budget ($m) Canada Australia 600 500 400 West More spending, yet 5x smaller land mass Africa USA 300
Slide 128: Burkina Faso & Cote d'Ivoire Are Under-Explored
CORPORATE PRESENTATION BURKINA FASO & COTE D’IVOIRE ARE UNDER-EXPLORED Host ~60% of belt yet represents ~25% of production % of Birimian greenstone belt West African geology - Birimian greenstone belt Burkina Faso 22% Côte d’Ivoire 35% Other 14% Mali Ghana 10% 19% 2016 production (Moz) Côte Burkina
Slide 129: Burkina Faso & Cote d'Ivoire Are Fast Growing
CORPORATE PRESENTATION BURKINA FASO & COTE D’IVOIRE ARE FAST GROWING Represent half of the region's exploration expenditures West African exploration expenditures by country 2017 exploration expenditures Côte d’Ivoire 20% ~50% Burkina Faso of West African exploration 29% expenditures Ghana Other Cou
Slide 130: Strong Production Growth in West Africa
CORPORATE PRESENTATION STRONG PRODUCTION GROWTH IN WEST AFRICA Has quickly become a top producing gold region 2016 gold production by country 15Moz +81% West African production growth over past 9Moz 9Moz 15 years 8Moz 7Moz 5Moz 5Moz 5Moz 4Moz 3Moz 3Moz 3Moz 4th largest gold producing China Mexico Un
Slide 131: West Africa Operates as an Economic Union
CORPORATE PRESENTATION WEST AFRICA OPERATES AS AN ECONOMIC UNION Single currency with economies becoming more integrated Countries using West African CFA INSIGHTS › West Africa acts as an economic zone (WAEMU) › Common central bank for 8 states › Common currency which is pegged to the Euro › Fiscal
Slide 132: Security in Burkina Faso
CORPORATE PRESENTATION SECURITY IN BURKINA FASO Significant foreign aid and co-operation amongst West-African nations Burkina Faso security heat map (SMF) (SMF) 132
Slide 133: Stable Political Environment
CORPORATE PRESENTATION STABLE POLITICAL ENVIRONMENT Single currency with economies becoming more integrated Burkina Faso Côte d’Ivoire Republic of Mali 2017 GDP (USD b) (1) 12.87 40.39 15.29 2017 GDP Growth(1) 6.7% 7.8% 5.3% GDP › Agriculture (31%), manufacturing, › Agriculture (20%), manufacturing,
Slide 134: West Africa Mining Codes Are Well Aligned
CORPORATE PRESENTATION WEST AFRICA MINING CODES ARE WELL ALIGNED Very similar to developed countries Corporate Income Tax and Royalties INSIGHTS › Transfer pricing regulations Country / Region Corporate Tax Mining Royalties recently established in the Burkina Faso Up to 27.5% Up to 5% jurisdiction C
Slide 135: Endeavour Emerging as the Only Multi-Asset West African Mid-Tier Producer
CORPORATE PRESENTATION ENDEAVOUR IS EMERGING AS THE ONLY MULTI-ASSET WEST AFRICAN MID-TIER PRODUCER Operating Mines # Countries of operations # West Rest of Rest of the West Rest of Rest of the Africa Africa World Africa Africa World Geographically focused yet diversified across multiple mines and m
Slide 136: Table of Contents
TABLE OF CONTENTS COMBINATION WITH SEMAFO: 1 CREATION OF A LEADING WEST AFRICAN GOLD PRODUCER 2 ENDEAVOUR OVERVIEW 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 137: Appendix 1: Board, Analyst Coverage
APPENDIX 1 Board, Analyst Coverage
Slide 138: Board Members
CORPORATE PRESENTATION BOARD MEMBERS Michael BECKETT Olivier COLOM, Livia MAHLER, Jim ASKEW, Alison BAKER, Chairman, Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Wayne MCMANUS, Sébastien de MONTESSUS, Naguib SAWIRIS, Sofia BIANCHI
Slide 139: Analyst Coverage
CORPORATE PRESENTATION ANALYST COVERAGE Firm Analyst Phone Email Berenberg Richard Hatch ✆ +44 20 3753 3070 ✉ richard.hatch@berenberg.com Credit Suisse Fahad Tariq ✆ +1 416 352 4593 ✉ fahad.tariq@credit-suisse.com BMO Raj Ray ✆ +44 20 7246 5430 ✉ raj.ray@bmo.com Clarus Securities Varun Arora ✆ +1 41
Slide 140: Appendix 2: Financials
ie NN ff OG APPENDIX 2 Financia
Slide 141: Financial Overview
CORPORATE PRESENTATION FINANCIAL OVERVIEW Benefited from the Ity CIL start-up and lower growth capex QUARTER ENDED YEAR ENDED Dec. 31, Sep. 30, Dec. 31, Dec. 31, +36% For Continuing Operations Variance Variance (in US$ million unless otherwise stated) 2019 2019 2019 2018 PRODUCTION AND AISC HIGHLIGH
Slide 142: All-In Margin Breakdown
CORPORATE PRESENTATION ALL-IN MARGIN BREAKDOWN Margin increased by $56/oz in 2019 compared to 2018 YEAR ENDED INSIGHTS IN US$M IN $/OZ 1. Increased due to both higher production and From continuing operations unless otherwise Dec. 31, Dec. 31, Dec. 31, Dec. 31, realized gold price. Variance specifie
Slide 143: Net Free Cash Flow
CORPORATE PRESENTATION NET FREE CASH FLOW Net free cash flow turned positive in Q3-2019 following completion of investments YEAR ENDED INSIGHTS From continuing operations unless otherwise specified Dec. 31, Dec. 31, Variance 1. Working capital variances: (in US$ million) 2019 2018 ALL-IN MARGIN 259
Slide 144: Working Capital and Taxes Paid
CORPORATE PRESENTATION WORKING CAPITAL AND TAXES PAID Q4-2019 vs. Q3-2019 Working Capital Movement FY-2019 vs. FY-2018 Working Capital Movement (All amounts in US$m) Q4-2019 Q3-2019 Q4-2019 Comments (All amounts in US$m) FY-2019 FY-2018 2019 Comments Trade and other Trade and other +8 +17 Mainly due
Slide 145: Net Debt and Liquidity Analysis
CORPORATE PRESENTATION NET DEBT AND LIQUIDITY ANALYSIS Financial position significantly improved Available sources of financing and liquidity INSIGHTS As at December 31, 2019 › The total commitment capacity on the RCF was increased in Q2-2019 by $80m to $430m to provide Endeavour with increased fina
Slide 146: Net Earnings Breakdown
CORPORATE PRESENTATION NET EARNINGS BREAKDOWN Adjusted EPS of $0.67 for 2019 YEAR ENDED Dec. 31, Dec. 31, INSIGHTS (in US$ million) A = Adjustments made of Adjusted Net Earnings 2019 2018 1. Higher operating expenses due to increased GOLD REVENUE 886 752 production Operating expenses 1 (431) (387) 2
Slide 147: Adjusted Earnings Per Share
CORPORATE PRESENTATION ADJUSTED EARNINGS PER SHARE Strong increase due to benefit of low cost Ity CIL and higher gold prices Adjusted earnings per share (EPS) Adjusted EPS from all operations, in $/share $0.30/share $0.34/share +127% Q4-19 vs. Q4-18 $0.15/share $0.08/share ($0.01/share) ($0.04/share
Slide 148: Diversified Debt Sources
CORPORATE PRESENTATION DIVERSIFIED DEBT SOURCES Diversified debt sources with low interest cost and long maturity DEBT SOURCES: 1) REDUCES ITS OVERALL FINANCING COSTS AND DE-RISKS LIBOR EXPOSURE $430M RCF Annual saving based on $330m convertible compared LIBOR curve › Interest rate of LIBOR to $330m
Slide 149: Production and Cost Details by Mine (Quarterly)
CORPORATE PRESENTATION PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU ITY CIL ITY HL KARMA HOUNDÉ (on a 100% basis) Unit Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Physicals Total tonnes mined – OP1 000t 6,
Slide 150: Production and Cost Details by Mine (Yearly)
CORPORATE PRESENTATION PRODUCTION AND COST DETAILS BY MINE On a yearly basis AGBAOU ITY CIL ITY HL KARMA HOUNDÉ (on a 100% basis) Unit FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 Physicals Total tonnes mined – OP1 000t 25,349 29,735 14,053 - 0 4,028 19,435 16,932
Slide 151: Consolidated Statement of Financial Position
CORPORATE PRESENTATION 151 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 102 151
Slide 152: Consolidated Statement of Comprehensive Earnings/Loss
CORPORATE PRESENTATION 152 CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS/LOSS YEAR ENDED December 31, December 31, Note 2019 2018 Revenues Gold revenue 886,371 751,957 Cost of sales Operating expenses (430,987) (386,926) Depreciation and depletion 9 (197,219) (169,069) Royalties (48,139) (41,068)
Slide 153: Cash Flow Statement
CORPORATE PRESENTATION 153 CASH FLOW STATEMENT YEAR ENDED December 31, December 31, Note 2019 2018 Operating Activities (Loss)/earnings from continuing operations before taxes (83,010) 78,575 Adjustments for: Depreciation Depreciation andand depletion depletion 9 197,219 169,069 Financing Financecos
Slide 154: Appendix 3: Reserves and Resources
APPENDIX 3 Reserves and Resources
Slide 155: Reserves and Resources
CORPORATE PRESENTATION RESERVES AND RESOURCES As of December 31, 2019 Fetekro Project Group Consolidated Total Resources shown inclusive of Reserves. On a 100% basis Tonnage (Mt) Grade (Au g/t) Content (Au koz) On a 100% basis Proven Reserves - 0.0 - Resources shown Tonnage Grade Content Probable Re
Slide 156: Appendix: Convertible Bond, Revenue Protection Program, and ROCE
APPENDIX 4 Convertible Bond, Revenue Protection Program, and ROCE
Slide 157: Convertible Bond
CORPORATE PRESENTATION CONVERTIBLE BOND Evidence suggests that share prices are not capped by the strike price Share price performance of companies that issued convertible bonds INSIGHTS: 125% › The following graph shows stock price performance of 68 100% convertibles issued by $1-5bn market cap 75%
Slide 158: Selection, Ranking and Risk Evaluation of Exploration Targets
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE Selection, Ranking and Risk Evaluation of Exploration targets › All targets referenced and classified according to : ‒ Current state of project knowledge (from grassroot to development) ‒ Quality of supporting data (drilling, available nearby analogs,
Slide 159: Revenue Protection Program
CORPORATE PRESENTATION REVENUE PROTECTION PROGRAM Increased certainty of cash flow during construction and debt repayment phases Gold revenue protection program Gold price in US$/oz INSIGHTS › Strategy aimed at maximizing cash flow certainty 1,700 during construction and debt reimbursement phases. ›
Slide 160: Return on Capital Employed
CORPORATE PRESENTATION RETURN ON CAPITAL EMPLOYED Return on Capital Employed (ROCE) (US$ '000 unless otherwise stated) 2019 2018 Adjusted EBITDA 355,690 264,838 Less: depreciation and amortisation (197,219) (169,069) Adjusted EBIT (A) 158,471 95,769 Opening Capital employed (B) 1,673,623 1,452,326 T
Slide 161: Pro-Forma Net Debt, Liquidity and ROCE
APPENDIX PRO-FORMA NET DEBT, LIQUIDITY AND ROCE Net debt & liquidity calculation Return On Capital Employed (ROCE) Net debt La Mancha 31/12/19 31/12/2019 EDV SMF EDV SEMAFO Injection Pro-forma Pro-forma US$'000 US$'000 Cash & Eq. 189,889 98,297 100,000 388,186 Adjusted EBITDA 355,690 262,753 618,443
Endeavour Mining — Investor Presentation (April 2020) on 6ix