Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Q4 2023 Earnings Presentation
59 slides from Endeavour Mining's earnings presentation, Mar 27, 2024
Slide 1: Q4 & FY-2023 Results Presentation
Q4 & FY-2023 RESULTS PRESENTATION 27 March 2024
Slide 2: Disclaimer & Forward Looking Statements
DISCLAIMER & FORWARD LOOKING STATEMENTS Some of the indicators used by Endeavour in this presentation represent non-IFRS financial expected, and the results of those studies being consistent with Endeavour’s current expectations; measures, including sustaining capital per ounce, non-sustaining capit
Slide 3: Speakers
SPEAKERS IAN MARK GUY COCKERILL MORCOMBE YOUNG CEO COO CFO JONO DJARIA JACK LAWRENCE TRAORE GARMAN EVP Exploration EVP ESG & Supply Chain VP Investor Relations
Slide 4: Table of Contents
TABLE OF CONTENTS 1 Q4 & FY-2023 HIGHLIGHTS 2 FINANCIAL RESULTS 3 OPERATING PERFORMANCE 4 CONCLUSION 5 APPENDIX
Slide 5: Q4 & FY-2023 Highlights
01 SECTION 1 Q4 & FY-2023 HIGHLIGHTS
Slide 6: 2023 Year in Review
2023 YEAR IN REVIEW OPERATIONAL ESG Full year production of Industry-leading PERFORMANCE INITIATIVES ESG ratings 1,072koz at an AISC of $967/oz 2023 Sustainability Report published 11th $2.27bn Consecutive year of Economic meeting production contribution guidance to host countries 0.50x Sabodala-Mas
Slide 7: 11th Year of Achieving Production Guidance
11TH YEAR OF ACHIEVING PRODUCTION GUIDANCE OPERATIONAL PERFORMANCE Production guidance achieved at industry leading all-in sustaining costs 0.05 GROUP SAFETY INDUSTRY LTM LTIFR1 LEADING 1.14 Industry Average2 1,072 koz GROUP ACHIEVED FY PRODUCTION PRODUCTION GUIDANCE 1,060-1,135koz Guidance $967/oz
Slide 8: Annual Production and AISC
ANNUAL PRODUCTION AND AISC OPERATIONAL PERFORMANCE 1.1Moz production at AISC of $967/oz Production and AISC Production from discontinued operations AISC from continuing operations (US$/oz) 1.1Moz Production from continuing operations 1,536koz 1,410koz Production from 1,173koz continuing operations F
Slide 9: Gold Peers AISC Benchmark
Lundingold $860/oz OPERATIONAL Endeavour $967/oz PERFORMANCE Centerra $1,013/oz (1) Based on H1-2024 performance Evolution1 $1,050/oz FY-2023 AISC, US$/oz Alamos $1,160/oz Gold peers AISC benchmark Agnico Eagle $1,179/oz B2Gold $1,201/oz Eldorado $1,220/oz Northern Star1 $1,221/oz Gold Fields $1,295
Slide 10: Adjusted EBITDA
ADJUSTED EBITDA OPERATIONAL PERFORMANCE Strong performance and higher gold prices support EBITDA generation Adjusted EBITDA and adjusted EBITDA margin from continuing operations1 Adj. EBITDA from continuing operations Adj. EBITDA margin 1.0bn Realised Gold Price $1,133m $1,027m $1,047m $ Adj. EBITDA
Slide 11: Sabodala-Massawa Expansion
SABODALA-MASSAWA EXPANSION INVESTING IN GROWTH PROJECTS On budget and on schedule for first gold in early-May INSIGHTS BIOX® Reactors CCDs › Expansion of our flagship Sabodala-Massawa mine with a 1.2Mtpa BIOX® plant, designed to process high-grade refractory Gold Room ore. › After-tax NPV5% & IRR at
Slide 12: Lafigué Development Project
LAFIGUÉ DEVELOPMENT PROJECT INVESTING IN GROWTH PROJECTS On budget and ahead of schedule with first gold now expected in Q2-2024 INSIGHTS TSF › Lafigué will be another cornerstone asset with an after-tax NPV5% & IRR at $1,700/oz of $732m & 29%. Thickeners › FY-2024 production of 90-110koz at an AISC
Slide 13: Unlocking Exploration Value
UNLOCKING EXPLORATION VALUE UNLOCKING VALUE THROUGH EXPLORATION 18.6Moz of M&I resources discovered since mid-2016 Total M&I resource discoveries M&I resources discovered 3.6 Exploration spend 18.6Moz 3.6Moz Discovered Moz 3.0Moz Discovered in FY-2023 3.5Moz 2.2Moz 25/oz 2.1Moz 1.3Moz 1.9Moz <$ 1.0M
Slide 14: Unlocking Exploration Value: 5-Year Discovery Target
UNLOCKING EXPLORATION VALUE UNLOCKING VALUE THROUGH EXPLORATION On track to achieve 5-year discovery target of 12 - 17Moz for period ending 2025 5-year M&I resource discovery target M&I resource as at 31 December, 2020 M&I resources discovered in 2021 - 2023 Remaining Indicated resource discovery ta
Slide 15: Tanda-Iguela Greenfield Project
TANDA-IGUELA GREENFIELD PROJECT UNLOCKING VALUE THROUGH EXPLORATION Exploration programme prioritised the potential Tier 1 Tanda-Iguela project INSIGHTS › 4.5Moz resource outlined in approximately 2 years at a low 4.5Moz discovery cost of $11 per Indicated ounce. › PFS underway and is expected to be
Slide 16: Evolution of Capital Allocation Priorities
EVOLUTION OF CAPITAL ALLOCATION PRIORITIES CAPITAL ALLOCATION DISCIPLINE Resilient business capable of funding growth and rewarding stakeholders Capital allocation evolution ENHANCED SHAREHOLDER INVESTING IN ORGANIC GROWTH RETURNS AND DEBT REDUCTION Projects Balance Sheet AND REWARDING SHAREHOLDERS
Slide 17: Attractive Shareholder Returns Programme
ATTRACTIVE SHAREHOLDER RETURNS PROGRAMME REWARDING SHAREHOLDERS Returning significant value to shareholders FY-2023 shareholder returns declared1 Shareholder returns in context of FY-2023 results (Including discontinued operations) PRODUCTION REVENUE Buyback $66m $227/oz returned for every ounce 11%
Slide 18: Attractive Shareholder Returns Programme
ATTRACTIVE SHAREHOLDER RETURNS PROGRAMME REWARDING SHAREHOLDERS >$ 200/oz Additional dividends and buybacks continue to supplement shareholder returns Returned Cumulative shareholder for every ounce of gold produced1 returns Cumulative Buybacks Cumulative Dividend $903m +$ 200/oz Returned for every
Slide 19: Being a Trusted Partner: ESG Initiatives
BEING A TRUSTED PARTNER OUR ESG INITIATIVES Strong benefits to host countries through industry-leading ESG initiatives ENVIRONMENT SOCIAL GOVERNANCE 0.60tco2-e/oz 81% in-country procurement 0.05 LTIFR Emissions – beat target ($1.2B) – beat target 0.92 TRIFR well below sector benchmark PERFORMANCE 62
Slide 20: Financial Results
02 SECTION 2 FINANCIAL RESULTS
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS Operating cashflows improved significantly in Q4-2023 QUARTER ENDED YEAR ENDED 31 Dec 30 Sep 31 Dec 31 Dec 31 Dec Q4-2023 vs. For Continuing Operations1 Q3-2023 103% (in $ million unless otherwise stated) 2023 2023 2022 2023 2022 OPERATIONAL HIGHLIGHTS Gold production, koz Gold
Slide 22: Production and AISC
PRODUCTION AND AISC Stronger production and AISC improvement through H2-2023 Production and AISC1 Production for continuing operations, koz AISC for continuing operations, US$/oz 294koz 268koz 281koz 280koz Flat Production 243koz Q4-2023 vs Q3-2023 $1,000/oz $955/oz $967/oz $947/oz $875/oz -$ 20/oz
Slide 23: All-In Sustaining Margin
ALL-IN SUSTAINING MARGIN Maintaining a strong all-in sustaining margin Realised gold price, cost and margin analysis1 All-in Sustaining Margin, $/oz All-in Sustaining Cost, $/oz All-in Sustaining Margin, % $1,947/oz $1,945/oz Stable $1,879/oz $1,903/oz Higher gold price $1,758/oz $947/oz All-in sust
Slide 24: Adjusted EBITDA
ADJUSTED EBITDA Continued strong adjusted EBITDA generation and healthy EBITDA margin Adjusted EBITDA from continuing operations1 Realised Adj. EBITDA from continuing operations Adj. EBITDA Margin Gold Price2 +$29m $292m $272m $263m $253m $240m Adjusted EBITDA Q4-2023 vs Q3-2023 54% 50% 50% 50% 47%
Slide 25: Operating Cash Flow Before Working Capital
OPERATING CASH FLOW BEFORE WORKING CAPITAL Significant increase in operating cash flow before working capital Operating cash flow before working capital Operating cash flow from continuing operations1 Realised 125m Gold Price2 $244m $242m $246m +$ Operating cash flow Impacted by ~$50m Q4-2023 vs. Q3
Slide 26: Operating Cash Flow Bridge
OPERATING CASH FLOW BRIDGE Lower operating costs and taxes support higher operating cashflow INSIGHTS Operating cash flow bridge 1. The realised gold price for continuing 4 $246m 5 operations, inclusive of gold hedges, increased Impacted by ~$20m by $42/oz from $1,903/oz in Q3-2023 to decrease in wi
Slide 27: Robust Financial Position
ROBUST FINANCIAL POSITION Ability to fund organic growth while delivering shareholder returns Net debt evolution (Net Debt)/ Net Cash INVESTMENT FOCUS DEBT REDUCTION FOCUS $75m $76m ABILITY TO FUND GROWTH AND DELIVER SHAREHOLDER RETURNS $167m $217m $121m $757m Available liquidity1 $3m as at 31 Decem
Slide 28: Change in Net Debt
CHANGE IN NET DEBT Strong focus on funding our growth while delivering shareholder returns INSIGHTS Change in net debt 3 4 1. For Q4-2023, operating activities included ($15m) $555m $246m in operating cashflow before changes in working capital and a $80m 2 $79m working capital outflow. 2. Investing
Slide 29: Net Earnings from Continuing Operations
NET EARNINGS FROM CONTINUING OPERATIONS Higher tax expenses and losses on financial instruments impacted adj. net earnings 3 MONTHS ENDED INSIGHTS 31 December 30 September 1. The Group recognised a non-cash impairment of (in $ million) A = Adjustments made for Adjusted Net Earnings mining interest a
Slide 30: Operating Performance
03 SECTION 3 OPERATING PERFORMANCE
Slide 31: Safety Performance
SAFETY PERFORMANCE Continued industry-leading safety record LTIFR and hours worked from continuing operations1 Hours Worked (Millions, 12 month trailing basis) LTIFR (12 month trailing basis)2 42.3m 38.4m 0.05 LTIFR in Q4-2023 35.3m 33.0m 32.0m 0.06 0.06 0.09 0.08 0.05 +4.9m Hours worked Q4-2023 vs
Slide 32: Production Performance vs Guidance
PRODUCTION PERFORMANCE VS GUIDANCE Production guidance achieved for the 11th consecutive year PRODUCTION AISC INSIGHTS › FY-2023 production amounted to Guidance 1,072koz, achieving the guided 1,060koz 1,135koz $895/oz $949/oz1 $950/oz 1,060-1,135koz range. Group FY FY FY › The AISC from continuing o
Slide 33: Industry Leading AISC
INDUSTRY LEADING AISC Lower production, higher royalty rates and higher costs INSIGHTS AISC bridge1, $/oz › FY-2023 AISC from continuing operations increased by $118/oz from FY-2022 to $967/oz. › The key drivers for the higher AISC were the lower volumes External factors: of gold ounces sold (approx
Slide 34: Reserve and Resource Evolution
RESERVE AND RESOURCE EVOLUTION Tanda-Iguela exploration prioritised with 3.4moz Indicated resources added P&P reserve bridge1 15.2Moz (0.1Moz) (0.7Moz) +0.1Moz (0.6Moz) 0.0Moz 13.9Moz 1.3Moz - P&P reserves 2022-end Houndé Ity Mana Sabodala-Massawa Lafigué 2023-end FY-2023 vs FY-2022 M&I resource bri
Slide 35: Sabodala-Massawa, Senegal
SABODALA-MASSAWA, SENEGAL Higher grade ore sourced from the Sabodala pit in Q4-2024 Q4-2023 vs Q3-2023 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production increased due to an increase in throughput due to a higher proportion of higher 103koz grade softer oxide ore from Niakafiri E
Slide 36: Sabodala-Massawa, Senegal: BIOX Commissioning
SABODALA-MASSAWA, SENEGAL BIOX® wet commissioning underway, first gold expected in early May INSIGHTS Crushing circuit construction complete BIOX® inoculum currently active in the reactors › Construction of the Sabodala-Massawa BIOX® project was launched in Q2-2022 and remains on budget and schedule
Slide 37: Houndé Mine, Burkina Faso
HOUNDÉ MINE, BURKINA FASO Record production achieved in FY-2023 Q4-2023 vs Q3-2023 INSIGHTS Production and AISC › Production decreased due to lower processed grades and Production, koz AISC, US$/oz 109koz slightly lower throughput and recoveries. › AISC increased mainly due to lower production and s
Slide 38: Ity Mine, Côte d'Ivoire
ITY MINE, CÔTE D’IVOIRE Record production achieved in FY-2023 Q4-2023 vs Q3-2023 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production remained flat as higher tonnes were milled and higher processed grades were offset by lower recoveries. 91koz 86koz 82koz › AISC remained flat as hi
Slide 39: Mana, Burkina Faso
MANA, BURKINA FASO Underground ramp up driving improved tonnages and grades in Q4-2024 Q4-2023 vs Q3-2023 INSIGHTS Production and AISC Production, koz AISC, US$/oz › Production increased due to higher average grades processed and recovery rates, which were partially offset by lower mill throughput.
Slide 40: Lafigué Project, Côte d'Ivoire
LAFIGUÉ PROJECT, CÔTE D’IVOIRE Development is on budget and on schedule for Q2-2024 startup INSIGHTS Crushing circuit construction underway TSF HDPE liner installation complete › Construction was launched in early Q4-2022, following completion of a DFS that confirmed Lafigué’s potential to be a corn
Slide 41: Tanda-Iguela Project, Côte d'Ivoire
TANDA-IGUELA PROJECT, CÔTE D’IVOIRE Endeavour’s next Tier 1 development project INSIGHTS › An exploration programme of $15m is planned for FY-2024, with at least 60,000 metres of drilling at Tanda-Iguela, of which 25,000 metres will focus on delineating further resources at Assafou, while 35,000 met
Slide 42: Unlocking Satellite Targets at Tanda-Iguela
TANDA-IGUELA PROJECT, CÔTE D’IVOIRE Unlocking satellite targets at Tanda-Iguela 8 Targets within 5km of Assafou +20km Assafou mineralisation strike length 42
Slide 43: Conclusion
04 SECTION 4 CONCLUSION
Slide 44: Key Priorities Across the Business
KEY PRIORITIES ACROSS THE BUSINESS Continuing to build a resilient business with disciplined capital allocation Deliver production guidance of 1.1 – 1.3Moz at an industry leading OUR STRATEGY OPERATIONS AISC of $955 – 1,035/oz GROWTH Complete construction of two high-quality organic growth projects,
Slide 45: Appendix
05 SECTION 5 APPENDIX
Slide 46: Sabodala-Massawa Mine, Senegal
SABODALA-MASSAWA MINE, SENEGAL Focussed on expanding existing resources and discovering new resources INSIGHTS › An exploration programme of $19m was undertaken in FY- 2023, of which $4m was spent in Q4-2023 consisting of 83,960 metres of drilling across 3,655 drill holes. › During Q4-2023, drilling
Slide 47: Houndé Mine, Burkina Faso
HOUNDÉ MINE, BURKINA FASO Focussed on near mine exploration targets and underground potential Houndé map INSIGHTS › An exploration programme of $8m was undertaken in FY-2023 with $1m spent in Q4-2023 consisting of 27,723 metres of drilling across 155 drill holes. › During Q4-2023, drilling continued
Slide 48: Ity Mine, Côte d'Ivoire
ITY MINE, CÔTE D’IVOIRE Focussed on extending mineralisation at known deposits Ity map INSIGHTS › An exploration programme of $16m was undertaken in FY-2023, of which $2m was spent in Q4-2023 consisting of 84,474 metres of drilling across 893 drill holes. › During Q4-2023, drilling focused on the no
Slide 49: Mana, Burkina Faso
MANA, BURKINA FASO Focused on following up on near-mine oxide mineralisation INSIGHTS Mana map › An exploration programme of $7m was undertaken in FY-2023, of which $1m was spent in Q4-2023 consisting of 20,728 metres of drilling across 378 drill holes. › During Q4-2023, drilling at Nyafé South focu
Slide 50: Tackling Inflationary Pressures
4 TACKLING 44 INFLATIONARY PRESSURES Leveraging our synergies in West Africa Fuel Average fuel price variance, $/L › Fuel price is regulated by in-country based pricing Q1-2022 Q3-2022 Q1-2023 Q3-2023 mechanisms where prices are revised periodically, Q2-2022 Q4-2022 Q2-2023 Q4-2023 sheltering Endeav
Slide 51: Short Term Revenue Protection Programme
SHORT TERM REVENUE PROTECTION PROGRAMME Increased certainty of cash flows during growth and debt reduction phases Debt reduction Gold collars and shareholder INSIGHTS Gold price in US$/oz return focus › In Q4-2023, 30koz were settled under 2400 Growth and forward contracts at a price of $1,828/oz. s
Slide 52: 2024 Guidance
2024 GUIDANCE INSIGHTS Production guidance › FY-2024 production guidance marks an 2023 ACTUALS 2024 GUIDANCE (All amounts in koz, on a 100% basis) increase of up to nearly 200koz or 18% over the FY-2023 production from continuing operations Houndé 312 260 — 290 of 1,072koz due to the commissioning o
Slide 53: 2024 Guidance (Continued)
2024 GUIDANCE (Continued) Capital expenditure guidance Sustaining capital (All amounts in US$m) 2023 ACTUALS 2024 GUIDANCE Houndé 34 40 › Houndé: waste stripping, de-watering boreholes, plant upgrades Ity 10 10 › Ity: waste stripping, fleet rebuilds, plant upgrades Lafigué - 25 Mana 21 15 › Mana: un
Slide 54: Mine Statistics
MINE STATISTICS On a full year basis ITY HOUNDÉ MANA SABODALA-MASSAWA (on a 100% basis) Q4-2023 Q3-2023 Q4-2022 Q4-2023 Q3-2023 Q4-2022 Q4-2023 Q3-2023 Q4-2022 Q4-2023 Q3-2023 Q4-2022 Physicals Total tonnes mined – OP1 000t 7,349 6,020 6,043 11,993 10,603 12,901 805 1,508 1,057 11,319 11,989 12,645
Slide 55: Mine Statistics
MINE STATISTICS On a full year basis ITY HOUNDÉ MANA SABODALA-MASSAWA (on a 100% basis) FY-2023 FY-2022 FY-2023 FY-2022 FY-2023 FY-2022 FY-2023 FY-2022 Physicals Total tonnes mined – OP1 000t 27,891 23,946 47,680 45,490 6,001 3,615 45,943 49,259 Total ore tonnes – OP 000t 6,790 7,044 5,420 5,754 1,2
Slide 56: Debt Structure
DEBT STRUCTURE Diversified long-term debt structure Balance sheet structure INSIGHTS (in $ million unless stated otherwise) 31 Dec 2023 30 Sep 2023 31 Dec 2022 1. The Company repaid $70m on the revolving credit facility during the quarter. Cash $370m 517 625 951 2. The Company drew down $72m on the
Slide 57: Tax Payments
TAX PAYMENTS THREE MONTHS ENDED YEAR ENDED 31 December 30 September 31 December 31 December 31 December ($m) 2023 2023 2022 2023 2022 Houndé 16.5 11.3 9.8 51.7 46.8 Ity 18.6 9.3 — 61.5 30.5 Mana 5.5 5.4 2.7 26.8 13.0 Sabodala-Massawa — 65.3 — 116.4 16.8 Other1 30.3 50.7 — 84.5 51.2 Taxes paid by con
Slide 58: Continuous Improvement in ESG Ratings
CONTINUOUS IMPROVEMENT IN ESG RATINGS Reflecting increased transparency, disclosure and engagement 2019 2022 Relative Performance 53.2 /100 Severe Risk 2019 2023 23.9 /100 Medium Risk 2022 18.2 /100 Low Risk 2023 2020 2022 2019 2020 2021 2022 2023 Company Percentile Industry Score Ranking Average 20
Slide 59: Contact Us
CORPORATE OFFICE 5 Young Street, London W8 5EH, United Kingdom T: +44 203 011 2723 OPERATIONS OFFICE Abidjan Office, Route du Lycée Technique, Abidjan, 08 BP 872 Abidjan 08, Côte d’Ivoire T: +225 27 22 48 99 00 CONTACT US investor@endeavourmining.com Follow us: TSX.EDV endeavourmining.com LSE.EDV 59