Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Non-Deal Roadshow (May 2014)
34 slides from Endeavour Mining's roadshow presentation, May 14, 2014
Slide 1: Endeavour Management Presentation
Endeavour Management Presentation May 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 delivered 324,275 oz in 2013 • Projected to produce between 400,000 and 440,000 oz in 2014 • AISC guidance of $985 to 1,070 per oz for 2014 • Q1 2014 record gold production: − Produced 105,912 ounces − Revenue of $137 million
Slide 4: West African Projects
West African Projects • Multiple operations, both open-pit and underground • West African focus, diversified jurisdictions • Accra-based operations management GOLD PRODUCER WEST AFRICA CASH FLOW 4
Slide 5: 2013 Achievements
2013 Achievements • Record gold revenue and production: − Generated revenue of $443 million − All-in sustaining margin of $93 million • 2013 production and AISC: − Produced 324,275 ozs − AISC of $1,174/oz Gold Bar at Tabakoto • Key achievements: − Delivered production and costs on plan − Completed A
Slide 6: Agbaou – Strong Performer
Agbaou – Strong Performer • First gold pour was November 29, 2013 • Official opening, start of commercial production and mining convention signed on January 27, 2014 • Average annual production of 100,000 ozs • Agbaou is a strong cash flow generator – Access to low cost grid power ($0.085/kWh) Signi
Slide 7: FY2014 Outlook
FY2014 Outlook • 2014 production guidance: – 400,000 to 440,000 ounces – AISC between $985 to $1,070/oz • Houndé Gold Project: in permitting with potential to add 180,000 ozs per year at an AISC of under $800/oz • 2014 non-sustaining investments focused on optimization of Tabakoto: Mining at Agbaou
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 at Tabakoto and Segala – Continue optimizing mining and processing operations at all sites – Complete enhancement of group Purchasing and Wo
Slide 9: Q1 2014 Highlights
Q1 2014 Highlights Total / Agbaou1 Tabakoto Nzema Youga Average Production (oz) 24,086 33,472 28,487 19,867 105,912 Cash cost / oz $594 $1,157 $890 $680 $879 AISC / oz $647 $1,320 $1,046 $758 $1,059 • Good cost profiles at three of our mines and, as expected, a high cost during transitional phase of
Slide 10: Operating Summary – Agbaou Gold Mine, Côte d’Ivoire
Operating Summary – Agbaou Gold Mine, Côte d’Ivoire Q1 20141 Q1 2013 2 months 3 months Tonnes of ore milled ‘000s 318 n/a Average gold grade milled g/t 1.69 n/a Gold ounces sold oz 21,888 n/a Total cash cost $/oz $594 n/a Royalties $/oz $51 n/a Sustaining capital $/oz $2 n/a Mine-level AISC $/oz $64
Slide 11: Operating Summary – Tabakoto Gold Mine, Mali
Operating Summary – Tabakoto Gold Mine, Mali Q1 2014 Q1 2013 3 months 3 months Tonnes of ore milled ‘000s 350 201 Average gold grade milled g/t 3.25 4.60 Gold ounces sold oz 35,407 26,627 Total cash cost $/oz $1,157 $939 Royalties $/oz $78 $98 Sustaining capital $/oz $85 $228 Mine-level AISC $/oz $1
Slide 12: Update on Segala Underground Development
Update on Segala Underground Development • At April 30, 2014: – Decline face at 201 metres below surface – 1,271 metres in the decline – 3,038 metres of lateral development on four levels to provide access to the ore body • Commenced production stoping in Q2 2014 using owner operated fleet Segala 20
Slide 13: Operating Summary – Nzema Gold Mine, Ghana
Operating Summary – Nzema Gold Mine, Ghana Q1 2014 Q1 2013 3 months 3 months Tonnes of ore milled ‘000s 396 536 Average gold grade milled g/t 2.75 1.58 Gold ounces sold oz 28,533 22,013 Total cash cost $/oz $890 $1,073 Royalties $/oz $73 $82 Sustaining capital $/oz $83 $75 Mine-level AISC $/oz $1,04
Slide 14: Operating Summary – Youga Gold Mine, Burkina Faso
Operating Summary – Youga Gold Mine, Burkina Faso Q1 2014 Q1 2013 3 months 3 months Tonnes of ore milled ‘000s 251 241 Average gold grade milled g/t 2.78 3.26 Gold ounces sold oz 19,838 21,286 Total cash cost $/oz $680 $657 Royalties $/oz $62 $79 Sustaining capital $/oz $16 $62 Mine-level AISC $/oz
Slide 15: 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 16: 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 17: 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 18: Kofi Mine Permit In Process
Kofi Mine Permit In Process Kofi Property • Mining permit area includes 8 known deposits that so far comprise resources of Indicated 0.6 million ozs plus Inferred 0.6 million ozs • Excellent exploration potential on Tabakoto property and on the Kofi Property, especially on continuation of the Loulo
Slide 19: Houndé Project – In Permitting
Houndé Project – In Permitting • Feasibility study completed in 2013 Houndé FS General Site Layout Mine, Waste Dumps, and Plant Location – 2P Reserve1 of 25 million tonnes at 1.95 g/t containing 1.55 million ozs – 3.0 Mtpa SAG/Ball mill and Gravity/CIL – 180,000 ozs per year over 8 years – AISC/oz o
Slide 20: Houndé Project – Exploration Potential
Houndé Project – Exploration Potential Houndé Property Targets and Trends • Exploration Team developed a work program based on prior drilling which could enhance the resource base • Mineralized areas are highlighted by – Gold in soil geochemistry – Geophysical signatures – Structural trends • Known
Slide 21: Summary
Summary 2013: successful year of optimization and consolidation • Agbaou fully ramped up and is now a significant cash flow generator Q1 2014 production is good and on track with guidance • achieved record production of 106,000 ozs • improved AISC/oz of $1,059 2014: focus on effectively managing our
Slide 22: Appendices
Appendices • Board of Directors • Management • Company Profile • Operations • Q1 2014 Cash Cost Detail by Mine • Resources and Reserves GOLD PRODUCER WEST AFRICA CASH FLOW 22
Slide 23: 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 24: 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 25: Company Profile
Company Profile Share Price (April 30, 2014) Balance Sheet (Mar 31, 2014) CDN$0.86 Cash position $67.7 million Recent Share Price AUD$0.84 Av. daily shares traded (3 months to April 30) Drawn down from $350 million debt facility $300 million Canada 3.2 million Australia 0.5 million Analyst Coverage
Slide 26: Tabakoto Gold Mine, Mali
Tabakoto Gold Mine, Mali Tabakoto Gold Mine (80% Endeavour, 20% Mali) Kofi (84.4% Endeavour, 5.6% third-party, 10% Mali) M&I: 17.2Mt @ 3.0 g/t for 1.679Mozs Resources (~52% U/G @ 4.7 g/t) (incl. of Reserves, Inferred: 19.0Mt @ 2.6 g/t for 1.603Mozs 100%) (~59% U/G @ 4.6 g/t) 6.9Mt @ 3.6 g/t for 0.79
Slide 27: Agbaou Gold Mine, Côte d’Ivoire
Agbaou Gold Mine, Côte d’Ivoire Agbaou Gold Mine (85% Endeavour, 10% Côte d’Ivoire, 5% SODEMI) Resources M&I: 15.0Mt @ 2.3 g/t for 1.100Moz (incl. of Reserves, Inferred: 2.2Mt @ 2.3 g/t for 0.165Moz 100%) Reserves (100%) 11.4Mt @ 2.4 g/t for 0.880Moz Strip Ratio 7.9 to 1 Processing Rate Up to 1.6 Mt
Slide 28: Nzema Gold Mine, Ghana
Nzema Gold Mine, Ghana Nzema Gold Mine (90% Endeavour, 10% Ghana) Resources M&I: 38.4Mt @ 1.4 g/t for 1.693Moz (incl. of Reserves, Inferred: 7.7Mt @ 1.3 g/t for 0.313Moz 100%) Reserves (100%) 9.9Mt @ 2.1 g/t for 0.602Moz Strip Ratio 3 to 1 (2013) Processing Rate 1.6 to 2.1Mtpa Gravity/CIL plant Met.
Slide 29: Youga Gold Mine, Burkina Faso
Youga Gold Mine, Burkina Faso Youga Gold Mine (90% Endeavour; 10% Burkina Faso) Youga & Ouaré Resources (incl. of M&I: 15.5Mt @ 1.6g/t for 0.805Moz Reserves, 100%) Inferred: 2.2Mt @ 1.4g/t for 0.099Moz Reserves (100%) 4.0Mt @ 2.0g/t for 0.265Moz Strip Ratio 4.3 to 1 (2013) Processing Rate 1.0Mtpa Gr
Slide 30: Q1 2014 Cash Cost Detail by Mine
Q1 2014 Cash Cost Detail by Mine Tabakoto Nzema Youga Agbaou2 Total Mining Physicals Total tonnes mined - Open pit 000t 1,740 1,943 1,112 2,878 Total tonnes mined - Underground 000t 244 - - - Total ore tonnes - Open pit 000t 106 313 327 507 Total ore tonnes - Underground 000t 121 - - - Total tonnes
Slide 31: Mineral Reserves as at Dec 31, 2013
Mineral Reserves as at Dec 31, 2013 Reserves Proven Probable Proven & Probable Gold Mine / Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Price Mt g/t k Ozs Mt g/t k Ozs Mt g/t k Ozs US$/oz Nzema1 - Total 6.7 2.0 434 2.3 2.3 168 9.0 2.1 602 US$ 1,350 Attributable - 90% 391 151 5
Slide 32: Mineral Resources as at Dec 31, 2013
Mineral Resources as at Dec 31, 2013 Resources (including reserves) Lower Measured Indicated Measured & Indicated Inferred cutoff Mine / Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Mt Au g/t koz Mt Au g/t koz Mt Au g/t koz Mt Au g/t koz Au g/t Nzema1 - Tot
Slide 33: Notes to Mineral Resource and Reserves
Notes to Mineral Resource and Reserves 1 Nzema Report with mineral resource update of the Adamus deposit effective November 7, 2013 prepared by N.J. Johnson (MPR Geological Consultants Pty Ltd.) and updated internal mineral reserve estimates effective December 31, 2013 prepared by M. Alyoshin (Endea
Slide 34: 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 34