Slide 1: Results for the Second Quarter ended June 30, 2012
Endeavour Management Presentation Results for the Second Quarter ended June 30, 2012 9 August 2012 A GOLD PRODUCER DELIVERING GROWTH 1
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 plant, but not limited to, statements with respect to Endeavour’s plans equipment or processes to operate as anticipated; accident
Slide 3: Endeavour Q2/2012 – Introduction
Endeavour Q2/2012 – Introduction Neil Woodyer CEO Mark Connelly Christian Milau COO CFO Amounts expressed in US$, unless otherwise indicated A GOLD PRODUCER DELIVERING GROWTH 3
Slide 4: Q2/2012 Highlights
Q2/2012 Highlights • Produced 50,728 ozs increasing H1/2012 production to 102,691 ozs − 48,347 ozs from mine operations − 2,381 ozs from purchased ore • Cash cost of $618/oz produced1; H1/2012 cash costs of $657/oz produced1 − Q2/2012 cash cost below guidance range of $645 to $685 • Generated $41.5
Slide 5: Track Record of Gold Production Growth
Track Record of Gold Production Growth 2010 2011 2012 Production 82,402 ozs 177,290 ozs 187,000-202,000 ozs ~$150 million Cash Margin1 $36 million $91 million2 (@$1,600/oz) 51k 52k 51k 48k 45k 34k Nzema³ 23k 21k 20k Youga 18k Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2
Slide 6: Q2/2012 Financial Highlights
Q2/2012 Financial Highlights Q2/2012 Q1/2012 Total 3 months 3 months 6 months Gold production (ounces) 50,728 51,963 102,691 Gold sold (ounces) 52,415 47,559 99,974 Total cash cost per oz produced $641 $7161 $6791 Total cash cost per oz sold $719 $7111 $7151 US$ US$ US$ Millions Millions Millions Op
Slide 7: Cash Flows from Mine Operations (Quarterly)
Cash Flows from Mine Operations (Quarterly) 50 $47.6 million US$M 45 40 35 30 Adjusted to include $8.5 million for March production with cash proceeds received in early April 25 20 15 10 5 0 2010 2011 Q2/2012 • Q2/2012 cash flows from mine operations of $47.6 million, which is net of an adjustment o
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights 6 months ended June 30, 2012 US$ Millions Cash and cash equivalents Beginning balance (Dec 31, 2011) $115.3 Cash flow from mine operations + 80.5 Investments in mine operations and exploration - 41.3 Corporate - 10.5 Increase in working capital - 5.3 Other net cash flows (in
Slide 9: H1/2012 Investments
H1/2012 Investments $45 $41.3M $Millions Regional $40 $2.9M $35 Near Mine $30 $14.6M $25 Agbaou $20 $7.2M $15 Nzema $8.9M $10 Youga $1.7M $5 Nzema $6.0M $0 Sustaining Development Agbaou Exploration Total Capital Capital Project (Excl Agbaou) • Nzema sustaining capital includes investments related to
Slide 10: Q2/2012 Adjusted Net Earnings Reconciliation
Q2/2012 Adjusted Net Earnings Reconciliation Q2/2012 US$ Millions Net earnings after tax $33.4 Net losses on financial instruments + 6.0 One-time Ghanaian tax audit assessment1 + 4.7 Deferred income tax expense2 - 22.7 Adjusted net earnings after tax $21.4 Weighted avg number of outstanding shares 2
Slide 11: New 2012 Production and Cost Guidance
New 2012 Production and Cost Guidance 2012 Production Guidance 2012 Cash Cost Guidance $720 Nzema Previous Guidance 92,000 ozs 102,000 ozs New Guidance $700 $700 $700 95,000 ozs 102,000 ozs $690 $685 $680 Youga Previous Guidance $680 78,000 ozs 88,000 ozs $675 $670 $670 New Guidance $660 $/oz $660 8
Slide 12: Operating Summary – Nzema Gold Mine, Ghana
Operating Summary – Nzema Gold Mine, Ghana Q2/2012 Q1/2012 Total Annual Guidance 3 months 3 months 6 months Nzema mine (excl purchased ore) Tonnes of ore milled (000s) 537 506 1,043 Average gold grade milled (g/t) 1.68 1.64 1.66 Gold ounces produced 25,482 25,543 51,025 95,000 -102,000 Total cash co
Slide 13: Cost Control Measures
Cost Control Measures • Successful cost containment initiatives led to strong performance in Q2/2012: ‒ Reduction of approx. 30 employees at Nzema through restructuring − Optimizing throughput at Nzema process plant: addition of air cannons and pumps to reduce bottlenecks − Reduced inventory levels
Slide 14: Operating Summary – Youga Gold Mine, Burkina Faso
Operating Summary – Youga Gold Mine, Burkina Faso Q2/2012 Q1/2012 Total Annual 3 months 3 months 6 months Guidance Tonnes of ore milled (000s) 256 255 511 Average gold grade milled (g/t) 3.05 2.77 2.91 Gold ounces produced 22,865 23,988 46,853 85,000 - 90,000 Total cash cost per oz (excl royalties)
Slide 15: Agbaou Gold Project Construction Progress
Agbaou Gold Project Construction Progress • Awaiting receipt of official Mining Permit • Mills ordered – slightly below budgeted cost Agbaou Site Plan • Earthworks to begin in Sep 2012 • Gold production by Q1/2014 • Project parameters: − 85% Endeavour / 15% Côte d’Ivoire government − Open pit with u
Slide 16: Conclusion – Q2 Results Presentation
Conclusion – Q2 Results Presentation Strong Operating • 2012 gold production of 187,000 ozs to 202,000 ozs Performance • Strong operating results at Nzema and Youga, with cost control measures and other improvements taking effect Strong Financial • Net cash of $36 million, plus $200 million credit f
Slide 17: Appendix – Mineral Resources
Appendix – Q2 Results Presentation Mineral Resources including Reserves, at a 0.5g/t cut-off as of 31 December 2011 (Agbaou effective date is 25 May 2012) Deposit Measured Indicated Measured & Indicated Inferred kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs 1,2,3,4, Nzema -
Slide 18: Appendix – Mineral Reserves
Appendix – Q2 Results Presentation Mineral Reserves as of 31 December 2011 (Agbaou effective date is 25 May 2012) Gold Price Deposit Proven Probable Total US$/oz kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs 1,2,3,4, Nzema - Total 11,938 2.0 770 2,664 2.3 193 14,603 2.0 964 900 Attributable
Slide 19: Resources and Reserves Notes
Appendix – Q2 Results Presentation Resources and Reserves Notes 1 Technical Report Southern Ashanti Gold Project, Ghana, West Africa effective August 17, 2009, prepared by Ron Heeks (M.AusIMM), Technical Manager Adamus Resources Limited. Qualified Persons not independent of Endeavour Mining Corporat
Slide 20: Appendix: Purchased Ore Details – Nzema
Appendix: Purchased Ore Details – Nzema Q2/2012 Q1/2012 Total Annual Guidance 3 months 3 months 6 months Purchased ore Tonnes of ore milled (000s) 11.4 7.5 18.9 Average gold grade milled (g/t) 6.48 10.56 8.10 Gold ounces produced 2,381 2,432 4,813 7,000 - 10,000 Operating cash flow from purchased or