Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (September 2020)
161 slides from Endeavour Mining's investor presentation, September 2020
Slide 1: Corporate Presentation
CORPORATE PRESENTATION September, 2020 TSX:EDV
Slide 2: Disclaimer and Forward Looking Statements
DISCLAIMER AND FORWARD LOOKING STATEMENTS Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP important factors that could cause actual results to differ materially from performance measures with no standard meaning under IFRS. This those contained in forward-looking statement
Slide 3: Table of Contents
TABLE OF CONTENTS 1 ENDEAVOUR OVERVIEW 2 OUTLOOK & H1 RESULTS 3 COVID-19 RESPONSE 4 DETAILS BY MINE AND PROJECT 5 WEST AFRICA INSIGHTS 6 APPENDIX Note: All amounts are in US$, except where indicated, and may differ from MD&A due to rounding.
Slide 4: Endeavour Overview
01 SECTION 1 ENDEAVOUR OVERVIEW
Slide 5: Endeavour Mining Overview
CORPORATE PRESENTATION ENDEAVOUR MINING OVERVIEW A premier diversified West African gold producer SENEGAL Top 15 GAMBIA MALI Karma Mine Global BURKINA FASO GOLD PRODUCER Ouagadougou GUINEA- Bamako Mana BISSAU Mine Boungou Kalana Houndé Mine GUINEA Project Mine Bantou Project +1Moz <$900/oz SIERRA Fe
Slide 6: Company Profile
CORPORATE PRESENTATION COMPANY PROFILE Shareholder Distribution Ticker TSX:EDV Shares outstanding as at July 3, 2020 163m RETAIL LA MANCHA MANAGEMENT INSTITUTIONAL Share price as at September 18, 2020 C$37.08 Europe Market cap as at September 18, 2020 US$4.5bn Net debt as at June 30, 2020 (PF with S
Slide 7: 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 8: Strategically Repositioned
CORPORATE PRESENTATION STRATEGICALLY REPOSITIONED Strategically repositioned Endeavour as a leading African gold producer 2016 - 2019 TURNAROUND 2015 PROFILE $1billion invested 2020 PROFILE All-in sustaining $922/oz 2 flagship mines built $865-915/oz1 cost 6.3Moz discovered at $12/oz 4 years 10+ yea
Slide 9: Production and AISC Profile
CORPORATE PRESENTATION PRODUCTION AND AISC PROFILE Focused on long-term sustainable production at low cost FOCUSED ON BUILDING HOUNDÉ AND ITY CASH FLOW PHASE +1Moz +1Moz 995-1,095koz 727koz 663koz 651koz 593koz 516koz $922/oz $886/oz $866/oz $865- $843/oz $818/oz 915/oz 2015 2016 2017 2018 2019 2020
Slide 10: Creation of a Top Gold Producer
CORPORATE PRESENTATION CREATION OF A TOP 15 GOLD PRODUCER Largest West African gold producer Industry Top Producers (Moz) Based on latest reported fiscal year gold production, unless otherwise stated 1 Top 15 6.5 6.0 5.5 Global gold producer 2.5 2.0 1.5 1.0 0.5 0.0 1.0Moz 3 Torex Gold Endeavour Reso
Slide 11: AISC in the Bottom Third of the Global Cost Curve
CORPORATE PRESENTATION AISC IN THE BOTTOM THIRD OF THE GLOBAL COST CURVE Focused on long-term sustainable production at low cost Cumulative Industry AISC Cost Curve ($/oz) Industry curve based on Q4-2019 US$/oz 3,500 LOW 3,000 COST 2,500 Gold producer 2,000 1,500 1,000 Endeavour1 Bottom 500 third In
Slide 12: Operational Excellence
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Hands-on management model with teams close to operations Senior Management Sebastien de Montessus CEO & Director SENEGAL 2h40 Henri de Joux GAMBIA MALI Karma Mine Interim CFO EVP People, Culture & IT BURKINA Ouagadougou FASO GUINEA- Bamako Mana BISSAU
Slide 13: Operational Excellence: Safety
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Safety is our top priority Lost Time Injury Frequency Rate1 (on a rolling 12-months basis) 0.66 0.21 LTM Lost Time Injury Frequency Rate 0.40 0.29 0.21 0.16 0.12 4 LTI Over the past 12 months Peer Average2 FY-2016 FY-2017 FY-2018 FY-2019 2020 Trailing
Slide 14: Operational Excellence: Local Talent
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Focused on growing local talent Employee breakdown1 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 out of 2,479 15 out of 36
Slide 15: 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 overarching framework that sets out clear expectations as to what constitutes responsible gold mining › Desi
Slide 16: Seventh Consecutive Year of 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 17: Group Support Functions
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Slotted SEMAFO’s assets within our well-established West African operating model Lean Corporate Head Office General managers are empowered and reply on strong Group Support Functions Mine Site Group support functions Planning & based in West Africa Com
Slide 18: Project Development: 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 18
Slide 19: 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 20: Project Development: Enhanced Pipeline
CORPORATE PRESENTATION 4 442 PROJECT DEVELOPMENT 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 Boungou (Mali) (Guinea) Kalan
Slide 21: Attractive Organic Growth Opportunities
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Attractive organic growth opportunities INSIGHTS › While the main focus for 2020 is cash flow generation, Endeavour is also NAME Kalana Fetekro Bantou Nabanga continuing to build optionality within its portfolio by advancing studies and conducting explora
Slide 22: Unlock Exploration Value: Largest Portfolios
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Among largest and most promising portfolios in West Africa Karma AMONG LARGEST TENEMENT HOLDING Houndé Mana Kalana Boungou Nabanga Bantou +200 Fetekro EXPLORATION TARGETS Ity Agbaou 21Moz 10-15Moz Combined entity operating asset Other gold mines M&I
Slide 23: Strong Foothold in Two World-Class Belts
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 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 Houndé 3 4 5 6 7 8 Bantou 9 11 10 1 Yaramoko mine 4 7 Central Houndé
Slide 24: 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 25: Starting to Deliver Against 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 November 2016 Excludes assets acquired in SEMAFO transaction 4.0-6.0Moz 10-15Moz 4.0-6.0Moz 5-year Indicated Resource discovery target (Assessment unde
Slide 26: 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 Excludes assets acquired in SEMAFO transaction Indicated resources discovered Indicated resources targeted % Cumulative Indicated resources against 5-year discovery t
Slide 27: Bringing High Quality Discoveries into Production
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Quickly bringing high quality discoveries into production BAKATOUO (ITY) KARI PUMP KARI (excl. Kari Pump) LE PLAQUE (ITY) FETEKRO (HOUNDÉ) (HOUNDÉ) DISCOVERY COST $10/oz $20/oz $9/oz $15/oz $8/oz M&I 1Moz 2.5Moz 704koz 689koz 1Moz RESOURCES at 1.61g/
Slide 28: Low Discovery Cost
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Low discovery cost Discovery cost for Indicated resources by deposit Excludes assets acquired in SEMAFO transaction From mid-2016 to end of 2019 unless indicated otherwise $149/oz $12/oz Average Endeavour discovery cost to date $76/oz $29/oz 6x lower
Slide 29: Strong Exploration Efforts
CORPORATE PRESENTATION STRONG EXPLORATION EFFORTS Over 85% of FY-2020 budget spent in H1-2020 INSIGHTS Exploration expenditure for H1-2020 › During H1-2020, exploration continued to be a strong focus, with a Company-wide exploration spend of $35m Houndé › Over 234,800m drilled across the group in H1
Slide 30: Potential for +250koz for 10 Years at Flagship Mines
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 1, based on 4Mtpa plant and excludes Le Plaque discovery) SINCE STUDIES WERE PUBLISHED
Slide 31: Portfolio & Balance Sheet Management
CORPORATE PRESENTATION 44 PORTFOLIO & BALANCE SHEET MANAGEMENT 44 Potential to continue to pursue our active portfolio management strategy Portfolio Management Insights Combined Entity Producing Portfolio1 AISC, $/oz Tabakoto › Ity HL acquired through strategic (sold in Q4-’18) $1,150 partnership wi
Slide 32: Significant Improvement in Leverage Ratio
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Significant improvement in leverage ratio Net Debt Reduction Net Debt Net Debt/Adj. EBITDA (LTM) INVESTMENT PHASE DEBT REDUCTION PHASE $ 545m $660m Pro Forma $608m liquidity $528m 2.75x $473m $473m 1.94x 1.48x $309m 1.06x 1.00x 0.44x 0.44
Slide 33: Attractive Returns Following Investment Phases
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 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% 6% 1% 1% +20% ROCE target with strong capital allocation discipline 2017A 2018
Slide 34: Strong Upcoming Catalysts
CORPORATE PRESENTATION STRONG UPCOMING CATALYSTS Exposure to strong fundamentals UPCOMING CATALYSTS TIMING CATALYST Immediate Q3-2020 Houndé Start of mining higher grade Kari Pump deposit Cash Flow from Production Q3-2020 Ity Updated Le Plaque reserve estimate and updated Ity mine plan Maiden reserv
Slide 35: Key Priorities
CORPORATE PRESENTATION KEY PRIORITIES Strong focus on shareholder returns ATTRACTIVE PROFILE AS LEADING WEST AFRICA PRODUCER KEY PRIORITIES +1Moz <$900/oz Annual production All-in sustaining cost <0.5x Net Debt/Adj. EBITDA leverage ratio CONTINUE TO EXPLORE TO ACHIEVE PRODUCTION EXTEND MINE LIVES AN
Slide 36: Outlook and H1 Results
02 SECTION 2 OUTLOOK AND H1 RESULTS
Slide 37: 2020 Guidance
CORPORATE PRESENTATION 2020 GUIDANCE INSIGHTS Guidance Summary › Endeavour is maintaining its FY-2020 production and AISC ENDEAVOUR SEMAFO PRO FORMA guidance. The Company expects to mitigate the impact of Production, koz 680 — 740 315 — 355 995 — 1,095 the COVID-19 pandemic due to the higher grade p
Slide 38: 2020 Guidance (continued)
CORPORATE PRESENTATION 2020 GUIDANCE (continued) SUSTAINING COSTS INSIGHTS Sustaining Capital Expenditure Guidance › Mine sustaining capital expenditure guidance for Endeavour's mines is H2-2020 H1-2020 2020 FULL-YEAR expected to remain unchanged at $83m as an increase at Ity is (All amounts in US$m
Slide 39: On Track to Meet Guidance
CORPORATE PRESENTATION 2020 GUIDANCE On track to meet guidance with strong H2-2020 expected ENDEAVOUR SEMAFO PRO FORMA PRODUCTION 680-740koz 315-355koz 995-1,095koz Guidance Guidance Guidance H1 H1 H1 321koz 158koz 479koz ON TRACK ON TRACK ON TRACK AISC 680-740koz Guidance $845/oz $895/oz $895/oz $9
Slide 40: Production and AISC
CORPORATE PRESENTATION PRODUCTION AND AISC Q2 production decreased with strong H2 expected based on grade sequencing Production and AISC INSIGHTS BY MINE Production, koz AISC, US$/oz AISC from all operations 228koz ITY 124koz 108koz -13% HOUNDÉ 110koz 113koz 171koz 181koz 178koz 172koz $707 Producti
Slide 41: All-in Margin
CORPORATE PRESENTATION ALL-IN MARGIN Increased over the previous year due to higher gold price and start-up at Ity All-in Margin from all operations H2-2020 OUTLOOK CATALYSTS In US$m, unless otherwise indicated › Stronger production Realized 157m Gold Price › Lower AISC $191m +$ › Lower non-sustaini
Slide 42: Financial Overview
CORPORATE PRESENTATION FINANCIAL OVERVIEW H1-2020 benefited from higher production and higher gold price QUARTER ENDED SIX MONTHS ENDED Jun. 30, Mar. 31 Jun. 30, Jun. 30, Jun. 30, Var. H1-20 (in US$ million unless otherwise stated) PRODUCTION, SALES AND AISC HIGHLIGHTS Gold Production, koz 2020 149
Slide 43: All-in Margin
CORPORATE PRESENTATION ALL-IN MARGIN H1-2020 benefited from higher production and higher gold price THREE MONTHS SIX MONTHS INSIGHTS H1-2020 VS. H1-2019 ENDED ENDED 1. Higher cash costs at Houndé, Ity and Jun. 30, Mar. 31, Jun. 30, Mar. 30, Δ H1-2020 Agbaou which were partially offset by a All amoun
Slide 44: Net Free Cash Flow
CORPORATE PRESENTATION NET FREE CASH FLOW Strong increase due to completion of investment phase in H1-2019 INSIGHTS H1-2020 VS. H1-2019 THREE MONTHS SIX MONTHS ENDED ENDED 1. Working capital and long-term assets: H1-2020 H1-2019 Trade and other receivables (18) (4) Jun. 30, Mar. 31, Jun. 30, Jun. 30
Slide 45: Net Debt and Liquidity Analysis
CORPORATE PRESENTATION NET DEBT AND LIQUIDITY ANALYSIS Financial position significantly improved INSIGHTS Net Cash Variation Analysis › In Q1-2020, as a precaution to ensure that Endeavour would have substantial liquidity and financial flexibility to operate under various stress-test scenarios, Ende
Slide 46: Adjusted Net Earnings Per Share
CORPORATE PRESENTATION ADJUSTED NET EARNINGS PER SHARE Strong EPS over last five quarters Adjusted net earnings per share (EPS) Adjusted EPS, in $/share $0.48/share $0.30/share $0.34/share $0.48 Q2-2020 EPS $0.30/share $0.08/share +$0.40 EPS increase Q2-2020 vs. Q2-2019 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20
Slide 47: COVID-19 Response
03 SECTION 3 COVID-19 RESPONSE
Slide 48: Our COVID-19 Response
CORPORATE PRESENTATION OUR COVID-19 RESPONSE Developed epidemiological surveillance system to support our efforts 48
Slide 49: COVID-19 Response: Health and Safety
CORPORATE PRESENTATION OUR COVID-19 RESPONSE: HEALTH AND SAFETY Primary focus is protecting the well-being of employees, contractors and local communities INSIGHTS › Working closely with national health authorities to implement and augment government protocols in our host communities › Implemented r
Slide 50: COVID-19 Response: Business Continuity Plan
CORPORATE PRESENTATION OUR COVID-19 RESPONSE: BUSINESS CONTINUITY PLAN Endeavour’s operations are continuing to operate at near-normal levels KEY ACTIONS CURRENTLY OPERATING IN A LEVEL 1 ENVIRONMENT ✓ Key expatriates returned to site before suspension of commercial airline flights and shift rosters
Slide 51: Details by Mine and Project
04 SECTION 4 DETAILS BY MINE AND PROJECT
Slide 52: Diversified Portfolio of Six Mines
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Diversified portfolio of six mines following combination with SEMAFO MINE GOLD M&I M&I RESOURCE AISC1 RESERVES RESERVE GRADE2 NAME COUNTRY PRODUCTION1 RESOURCES2 GRADE2 (US$/oz) (Moz) (g/t) (koz) (Moz) (g/t) Houndé Burkina Faso 240 880 2.06 2.16 4.44 1
Slide 53: 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: 74.4Mt @ 1.85g/t for 4.439Moz (incl. of Reserves)1 Inferred: 7.9Mt @ 1.89g/t for 0.480Moz Ouagadougou Reserves 32.6Mt @ 2.06g/t for 2.164Moz Houndé Mine
Slide 54: Houndé: Stable Production Over Past Quarters
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Stable production over past 5 quarters; higher grades expected in H2-2020 Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › Despite the COVID-19 pandemic, Houndé Production, koz AISC, US$/oz continued to operate at near-normal levels 58koz 55koz 55koz
Slide 55: Houndé: Potential to Start Mining Kari Pump
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Potential to start mining Kari Pump in the latter portion of the year FY-2019 INSIGHTS Production and AISC › As guided, production decreased and AISC increased due AISC ($/oz) Production (koz) to low grade stockpiles supplementing the mill feed and a
Slide 56: Houndé: Mine Life to Be Extended
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 Study2, excludes Kari Pump discovery) 1.1Moz of total reserve additions r
Slide 57: Houndé: 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 58: Kari Gold in Soil Anomaly
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari gold in soil anomaly covers a 6km-long by 3km-wide area Kari Area drilling history Kari target map METERS PROGRAM HOLES RESULTS DRILLED 2,237 Q3-17 comprised of - Kari Pump maiden Indicated 203,900 to Q4-18 1,431 AC, 716 resource RC and 90 DD 1,4
Slide 59: Exploration at Houndé: Kari Area
CORPORATE PRESENTATION EXPLORATION AT THE HOUNDÉ MINE, BURKINA FASO Updated Kari area reserve and Houndé mine plan is expected in Q3-2020 KARI AREA INSIGHTS Houndé site map › In H1-20 Kari Area M&I Resource increased by 554koz in H1- 2020 › The updated resource increase includes extensions for the K
Slide 60: Kari Area Indicated Resource Estimate
CORPORATE PRESENTATION EXPLORATION AT THE HOUNDÉ MINE, BURKINA FASO Updated Kari area reserve and Houndé mine plan is expected in Q3-2020 KARI AREA INSIGHTS Kari Area Indicated Resource Mineral Estimate › Due to the intensive infill drill program PREVIOUS KARI AREA UPDATED KARI AREA Δ AU conducted i
Slide 61: Awarded Mining Permit for Entire Kari Area
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Awarded mining permit for entire Kari Area INSIGHTS Map of Houndé Mining Permits › Permit granted for the full Kari area which includes the Kari Pump, Kari West and Kari Center, Kari Gap and Kari South › Kari Pump is Houndé’s highest grade deposit (re
Slide 62: Kari Pump Reserve
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Pump Reserve INSIGHTS Kari Pump extension drilling and selected intercepts › High M&I resource to reserve conversion rate: 89% based on a gold price of $1,250/oz › Significantly higher grade than the Houndé mine reserve › Advantageous ore type: 5
Slide 63: Kari Pump Oxide/Transition Ore
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO ~53% of the Kari Pump reserve is oxide/transition ore Section B-B’ 63
Slide 64: Kari West: 1Moz Resource Delineated
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari West: 1Moz resource delineated to date; remains open at depth INSIGHTS Kari West H1-20 drill map with selected intercepts › Discovered during the 2018 AC drilling campaign › In 2019, intensive RC drilling defined the Kari West target as a broad m
Slide 65: Kari West: Remains Open at Depth
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari West: remains open at depth 65
Slide 66: Kari Center Extension; Discovery of Kari Gap
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Confirmed mineralization for extension of Kari Center; discovery of Kari Gap INSIGHTS Kari Center drilling activity over H1-2020 › Mineralization was first intercepted at Kari Center during AC initial reconnaissance drilling in 2017. Follow up RC and
Slide 67: Kari Gap Potential
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Gap: Area between Kari Gap and Kari Centre hosts significant potential 67
Slide 68: Kari Pump NE
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Pump NE: Identified after step out drilling near Kari Pump INSIGHTS Kari Pump NE drilling activity over H1-2020 › Step out drilling targeting the possible extension of near-surface mineralization near Kari Pump, over a 700 meter span towards the
Slide 69: Kari Pump NE: Open to the West
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Kari Pump NE: Open to the west and northwest 69
Slide 70: Vindaloo: Targeting High-Grade Plunges
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Vindaloo: targeting high-grade plunges 70
Slide 71: 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: 81.7Mt @ 1.55g/t for 4.064Moz (incl. of Reserves)1 Inferred: 18.3Mt @ 1.33g/t for 0.782Moz Côte d’Ivoire Reserves 62.1Mt @ 1.57g/t for 3.144Moz Côte d’Iv
Slide 72: Ity: Mine Plan Modified for COVID-19
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Mine plan modified to provide increased operational flexibility in COVID-19 environment Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › The mine plan prioritized both waste extraction Production, koz AISC, US$/oz and the TSF raise in Q2-2020 which pro
Slide 73: Ity: More 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 production declared in early Q2-2019 AISC ($/oz) Production (koz) › The comparative per
Slide 74: Ity Expected to Be Extended with Le Plaque
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 additio
Slide 75: 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 2.0-3.5g/t Au. The potential quantity of ounces is conceptual in nature s
Slide 76: 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 76
Slide 77: Ity Exploration: Le Plaque
CORPORATE PRESENTATION ITY EXPLORATION: LE PLAQUE Indicated resource has increased by 44% to 689koz LE PLAQUE INSIGHTS Le Plaque targets › In Q2-2020 the Indicated resource increased from 476koz to 689koz, an increase of 44% › Continued low discovery cost of <$20/oz › Ity mine M&I resource up 6% wit
Slide 78: H1-2020 Exploration at Le Plaque
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE H1-2020 exploration continued to focus on the Le Plaque discovery INSIGHTS Le Plaque drill map and selected H1-2020 intercepts (true width/grade) per area › In H1-2020, exploration efforts continued to be focused on the Floleu license, located only 6km
Slide 79: Section A – Epsilon Area
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Section A– Epsilon Area 79
Slide 80: 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 80
Slide 81: Delta Extension Selected Intercepts Map
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Delta Extension H1-2020 best selected intercepts map 81
Slide 82: Section A – Delta Extension Northern Part
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Section A – Delta Extension Northern Part 82
Slide 83: Section B – Delta Extension Central Part
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Section B – Delta Extension Central Part 83
Slide 84: Several Other Nearby Targets
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Several other nearby targets 84
Slide 85: Greater Ity Regional Gold in Soil Anomalies
CORPORATE PRESENTATION ITY TREND, CÔTE D’IVOIRE Greater Ity regional gold in soil (>100ppb) 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 t
Slide 86: Mana, Burkina Faso: Overview
CORPORATE PRESENTATION MANA, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% (10% owned by Republic of Burkina Faso) Karma Mine Resources M&I: 57.7Mt @ 2.23g/t for 4.1Moz (incl. of Reserves)1 Inferred: 8.9Mt @ 2.66g/t for 0.8Moz Mana Ouagadougou P&P Reserves1 15.0t @ 2.91g/t for 1.4M
Slide 87: Mana: Production Remained Strong
CORPORATE PRESENTATION MANA, BURKINA FASO Production remained strong despite an interruption due to COVID-19 Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › As a preventive measure, due to the COVID-19 Production, koz AISC, US$/oz pandemic, a large portion of the underground mining team was placed
Slide 88: Mana: Stronger H2-2020 Expected
CORPORATE PRESENTATION MANA, BURKINA FASO Stronger H2-2020 expected with higher processed grades FY-2019 INSIGHTS Production and AISC › Production decreased on a year-on-year basis as processing of ore was suspended for a 10-week period following an August pit wall AISC ($/oz) Production (koz) failu
Slide 89: Mana: Siou Underground
CORPORATE CORPORATE PRESENTATION PRESENTATION MANA, BURKINA FASO Siou underground INSIGHTS First production stope – Q1 2020 Progress as at January 31, 2020 › The location of the portal allows mining in the northern part of the Siou pit to continue uninterrupted › The ultimate size of the underground
Slide 90: Mana: Exploration Program Planned for 2020
CORPORATE PRESENTATION MANA, BURKINA FASO Exploration program of up to $2 million has been planned for 2020 Mana exploration map INSIGHTS › In 2019, a total of 19,197 meters were drilled at Mana, primarily at Pompoi and Fofina Sud › At Fofina Sud, significant mineralization was obtained on every sec
Slide 91: Boungou, Burkina Faso: Overview
CORPORATE PRESENTATION BOUNGOU, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% (10% owned by Republic of Burkina Faso) Karma Mine Resources M&I: 9.2Mt @ 3.76g/t for 1.1Moz (incl. of Reserves)1 Inferred: 1.3Mt @ 2.98g/t for 0.1Moz Mana Ouagadougou P&P Reserves1 9.2t @ 3.76g/t for 1.1
Slide 92: Boungou: Mining Expected to Restart
CORPORATE PRESENTATION BOUNGOU, BURKINA FASO Mining activities expected to restart in coming weeks Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › Despite the COVID-19 pandemic, Boungou Production, koz AISC, US$/oz continued to process stockpiles with minimal impact 63koz › Production decreased sl
Slide 93: Boungou: Mining Expected to Restart
CORPORATE PRESENTATION BOUNGOU, BURKINA FASO Mining expected to restart in coming weeks FY-2019 INSIGHTS Production and AISC › Production increased in 2019 as the mine plan reached higher grade zones AISC ($/oz) Production (koz) › Commercial production at the Boungou Mine commenced on September 1, 2
Slide 94: Boungou: Restart Program
CORPORATE PRESENTATION BOUNGOU, BURKINA FASO Mining expected to restart in coming weeks INSIGHTS Boungou mine › A range of improvements and new procedures have been implemented for the restart program, including the following: ‒ A West African General Manager has been appointed and employees transit
Slide 95: Boungou: Exploration Program Planned for 2020
CORPORATE PRESENTATION BOUNGOU, BURKINA FASO Exploration program of up to $1 million has been planned for 2020 INSIGHTS Boungou Exploration Map › The 2019 drilling programme was mostly dedicated to the Boungou Nord sector, exploring near surface splays of the Boungou Shear Zone. In addition, further
Slide 96: Agbaou Mine, Côte d'Ivoire: Overview
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 7.6Mt @ 2.14g/t for 519Moz (incl. of Reserves) Inferred: 0.7Mt @ 1.59g/t for 0.037Moz Côte d’Ivoire Reserves 6.3Mt @ 1.58g/t for 0.321Moz Ity Mine Pro
Slide 97: Agbaou: Stronger H2-2020 Expected
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Stronger H2-2020 expected Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › Despite the COVID-19 pandemic, Agbaou Production, koz AISC, US$/oz continued to operate at near-normal levels with no material changes to its mine plan › Production decreased
Slide 98: Agbaou: 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 which were partially offset by a AISC ($/oz) Production (koz) higher recovery rat
Slide 99: 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 100: Agbaou: Exploration Program Planned for 2020
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Exploration program of up to $2 million has been planned for 2020 Agbaou site map INSIGHTS › An exploration program of up to $2m has been planned for 2020 with the aim of continuing to test targets located along extensions of known deposits and on pa
Slide 101: Agbaou: Mineralization Under the North Pit
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Intercepted mineralization 150m under the North pit Section - AGBDD2141 2m@1.38/t Au 2m@2g/t Au 4m@2g/t Au (incl. 1m@5.23g/t) 2m@5g/t Au 4m@17g/t Au (incl. 2m@26.33g/t) 4m@3g/t Au (incl. 2m@4,70g/t) 3m@2.34g/t Au (incl. 1m@6.26g/t) 3m@2.67g/t Au (incl.
Slide 102: Karma Mine, Burkina Faso: Overview
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 52.6Mt @ 1.21g/t for 2.042Moz (incl. of Reserves) Inferred: 15.7Mt @ 1.35g/t for 0.681Moz Ouagadougou Reserves 9.2Mt @ 0.99g/t for 0.293Moz Houndé Mine P
Slide 103: Karma: Transitioned to Contract Mining
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Successfully transitioned to contract mining Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › Despite the COVID-19 pandemic, Karma Production, koz AISC, US$/oz continued to operate at near-normal levels 27koz 28koz with no material changes to its mine
Slide 104: 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 stacked from stockpiles AISC ($/oz) Production
Slide 105: Karma: Exploration Program Planned for 2020
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Exploration program of up to $2 million has been planned for 2020 INSIGHTS Karma site map › An exploration program of up to $2m has been planned for 2020 with the aim of in-fill drilling and testing extensions of known deposits › Minimal work was done
Slide 106: 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 107: Kalana: 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 108: Kalana: 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 109: Kalana: 2018 Block Model Results
CORPORATE PRESENTATION KALANA PROJECT, MALI 2018 Block model results Block model – Section S100 109
Slide 110: 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 111: Kalana: 2018 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 111
Slide 112: 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 113: 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 113
Slide 114: Greenfield Fetekro, Côte d'Ivoire
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro is our most advanced greenfield exploration property INSIGHTS › Fetekro is located in north central Côte Simplified map of the Fetekro property showing Lafigué d’Ivoire, approximately 500km from Abidjan, within the northern end of the
Slide 115: 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 August 31, 2019 As at July 31, 2020 Δ ‒ Amenable to open pit mining as Tonnage Grade Content Tonnage Grade Content AU miner
Slide 116: Fetekro: Initial PEA Results
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Positive results from initial PEA based on smaller resource base Initial PEA highlights on previous 1.2Moz Indicated Resource INSIGHTS OPERATION TYPE › An initial PEA based on the previously Mine Type Open Pit announced 1.2Moz Indicated resour
Slide 117: Fetekro: PEA Sensitivities
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Positive results from initial PEA based on smaller resource base INSIGHTS Gold Price Sensitivity – Pre-tax Gold Price Sensitivity – After-tax › The initial PEA project economics are robust, with an attractive NPV Gold Price $1,300/oz $1,500/oz
Slide 118: Lafigué Deposit Remains Open
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s Lafigué deposit remains open UPSIDE Lafigué geological interpretation and selected best intercepts per area › Significant exploration potential remains as the Lafigué deposit is open at depth and along strike and › Over a dozen nearb
Slide 119: Section 320645E Lafigué North
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Section 320645E Lafigué North 119
Slide 120: Section 320405E Lafigué North
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Section 320405E Lafigué North 120
Slide 121: Section 319875E Lafigué North
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Section 319875E Lafigué North 121
Slide 122: Fetekro's Upside Potential with Nearby Targets
CORPORATE PRESENTATION GREENFIELD FETEKRO, CÔTE D’IVOIRE Fetekro’s upside potential with nearby targets NEXT STEPS Fetekro plan map with exploration targets › An updated PEA based on the updated 2.5Moz Indicated Resource is expected to be published in Q4-2020 › A 20,000 meters of additional drilling
Slide 123: Greenfield Bantou, Burkina Faso
CORPORATE PRESENTATION GREENFIELD BANTOU, BURKINA FASO Located along the Houndé Greenstone Belt INSIGHTS › Acquired through Endeavour’s acquisition of SEMAFO in 2020 › Currently consists of eight mineralized zones with diverse mineralization styles and grades › The Bantou gold zone is part of the Dy
Slide 124: Bantou: Test Prospective Areas Outside Resources
CORPORATE PRESENTATION GREENFIELD BANTOU, BURKINA FASO Aim to test prospective areas outside of the existing resources INSIGHTS Bantou 2020 Drill Program › In 2019, a total 96,669m were drilled at Bantou. Bantou Nord alone accounted for 15,031m which was part of an effort to rapidly outline the exte
Slide 125: Greenfield Nabanga, Burkina Faso
CORPORATE PRESENTATION GREENFIELD NABANGA, BURKINA FASO Remains open to the north and at depth INSIGHTS › Located 250 kilometers southeast of Ouagadougou, the Nabanga deposit cross-section Nabanga Gold Project lies within the Nabanga exploration permit. › Results of preliminary economic assessment (
Slide 126: 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 @ 2.08g/t Au at 74.6m, including 1.0m @
Slide 127: Greenfield Exploration, Burkina Faso: Liguidi Area
CORPORATE PRESENTATION GREENFIELD EXPLORATION, BURKINA FASO Liguidi Area 127
Slide 128: Greenfield Exploration, Niger
CORPORATE PRESENTATION GREENFIELD EXPLORATION, NIGER 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: 695km² 128
Slide 129: Greenfield Exploration, Guinea
CORPORATE PRESENTATION GREENFIELD EXPLORATION, GUINEA Well Located Licenses in Siguiri Basin GUINEA: 129
Slide 130: 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 130
Slide 131: West Africa Insights
05 SECTION 5 WEST AFRICA INSIGHTS
Slide 132: Equity Markets Strongly Support West Africa
CORPORATE PRESENTATION EQUITY MARKETS STRONGLY SUPPORT WEST AFRICA Among 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 $9.82bn 8 +$ 6 billion raised for West Africa $6.35bn 6 $5.89bn US$ billions 4 $3
Slide 133: Significant Exploration Efforts in West Africa
CORPORATE PRESENTATION SIGNIFICANT EXPLORATION EFFORTS IN WEST AFRICA Endeavour represents over 10% of total West African spend 2017 exploration budget ($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 134: 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 135: More Exploration Spend in a Smaller Region
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 136: Burkina Faso & Côte d'Ivoire Are Under-Explored
CORPORATE PRESENTATION BURKINA FASO & CÔTE 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 137: Burkina Faso & Côte d'Ivoire Are Fast Growing
CORPORATE PRESENTATION BURKINA FASO & CÔTE 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 138: 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 West Africa Can
Slide 139: 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 eight states › Common currency which is pegged to the Euro › Fis
Slide 140: 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 Mana (EDV) Boungou (EDV) (EDV) 140
Slide 141: 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 Growth1 6.7% 7.8% 5.3% GDP › Agriculture (31%), manufacturing, › Agriculture (20%), manufacturing, › A
Slide 142: West Africa Mining Codes Are Well Aligned
CORPORATE PRESENTATION WEST AFRICA MINING CODES ARE WELL ALIGNED Very similar to developed countries INSIGHTS Corporate Income Tax and Royalties › 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 143: Endeavour Emerging as Leading Multi-Asset West African Producer
CORPORATE PRESENTATION ENDEAVOUR IS EMERGING AS THE LEADING MULTI-ASSET WEST AFRICAN 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 multipl
Slide 144: Appendix
SECTION 6 APPENDIX ENDEAVOUR MINING
Slide 145: Board, Analyst Coverage
APPENDIX 1 Board, Analyst Coverage
Slide 146: Board Members
CORPORATE PRESENTATION BOARD MEMBERS Michael BECKETT Helene CARTIER, Livia MAHLER, Jim ASKEW, Alison BAKER, Chairman, Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Tertius ZONGO, Sébastien de MONTESSUS, Naguib SAWIRIS, Sofia BIANCH
Slide 147: Analyst Coverage
CORPORATE PRESENTATION ANALYST COVERAGE Firm Analyst Phone Email Bank of America Lawson Winder ✆ +1 416 369 7592 ✉ lawson.winder@bofa.com Berenberg Jonathan Guy ✆ +44 203 753 3379 ✉ jonathan.guy@berenberg.com BMO Raj Ray ✆ +44 20 7246 5430 ✉ raj.ray@bmo.com Canaccord Carey MacRury ✆ +1 416 867 6130
Slide 148: Financial Appendices
APPENDIX 2 Financial appendices
Slide 149: Production and Cost Details by Mine (Quarterly)
CORPORATE PRESENTATION PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU ITY CIL KARMA HOUNDÉ MANA BOUNGOU (on a 100% basis) Q2-20 Q1-20 Q2-19 Q2-20 Q1-20 Q2-19 Q2-20 Q1-20 Q2-19 Q2-20 Q1-20 Q2-19 Q2-20 Q1-20 Q2-20 Q1-20 Physicals Total tonnes mined – OP1 000t 5,248 6,433 6,556 5,374 5
Slide 150: Production and Cost Details by Mine (YTD)
CORPORATE PRESENTATION PRODUCTION AND COST DETAILS BY MINE On a year to date basis AGBAOU ITY CIL KARMA HOUNDÉ MANA BOUNGOU (on a 100% basis) H1-20 H1-19 H1-20 H1-19 H1-20 H1-19 H1-20 H1-19 H1-20 H1-20 Physicals Total tonnes mined – OP1 000t 11,681 12,773 10,600 7,224 9,755 10,430 22,820 18,543 8,85
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 152
Slide 153: Cash Flow Statement
CORPORATE PRESENTATION 153 CASH FLOW STATEMENT 153
Slide 154: Reserves and Resources
APPENDIX 3 Reserves and Resources
Slide 155: Reserves and Resources
CORPORATE PRESENTATION RESERVES AND RESOURCES As at December 31, 2019 Houndé Mine Resources shown inclusive of Tonnage Grade Content Ity Mine Resources shown inclusive of Tonnage Grade Content Reserves. On a 100% basis (Mt) (Au g/t) (Au koz) Reserves. On a 100% basis (Mt) (Au g/t) (Au koz) Proven Re
Slide 156: Convertible Bond, Revenue Protection Program, and ROCE
APPENDIX 4 Convertible Bond, Revenue Protection Program, and ROCE
Slide 157: 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 158: 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 $1-5bn market cap 75%
Slide 159: Selection, Ranking and Risk Evaluation of Exploration Targets
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE Selection, Ranking and Risk Evaluation of Exploration targets › All targets referenced and classified according to: ‒ Current state of project knowledge (from grassroots to development) ‒ Quality of supporting data (drilling, available nearby analogs,
Slide 160: Return on Capital Employed
CORPORATE PRESENTATION RETURN ON CAPITAL EMPLOYED Return on Capital Employed (ROCE) (US$ '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
CORPORATE PRESENTATION PRO FORMA NET DEBT, LIQUIDITY AND ROCE Net debt and liquidity calculation at 31 Dec, 2019 Return On Capital Employed (ROCE) for 2019 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 98,297 100,000 388,18
Endeavour Mining — Investor Presentation (September 2020) on 6ix