Slide 1: Terronera Feasibility Study Webinar
Terronera Feasibility Study Webinar Mexico’s next silver development TSE: EDR | NYSE: EXK September 9, 2021 TSX: EDR | NYSE: EXK www.edrsilver.com
Slide 2: Cautionary Note
Cautionary Note This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward looking statements and inf
Slide 3: Terronera – A Unique Opportunity in the Silver Mining Industry
Terronera – A Unique Opportunity in the Silver Mining Industry LARGE, HIGH GRADE UG MINE POTENTIAL 100% ORGANIC GROWTH IN 2 YEARS • Endeavour’s largest mine and next core asset • Construction ready, subject to board approval DOUBLES CONSOLIDATED PRODUCTION • LOM 3.3 million oz per year silver and 32
Slide 4: Highlights Of Feasibility Study
Highlights Of Feasibility Study IN-DEPTH REVIEW PROVIDES MORE CONFIDENCE • Finalized comprehensive cost/ peer review & operability analysis • Improved assurance in cost estimate and executing within budget • Realistic market pricing addressed for current state of the market • Rigorous approach ensur
Slide 5: Base Case Highlights
Base Case Highlights UNDERGROUND MINE $174 MILLION NPV Shallow, thick and rich deposit, 12-year NPV @ 5% (after tax) mine life 21.3% IRR 3.6 YEAR PAYBACK PERIOD . $0.59 /oz LOM CASH COST $3.24/oz LOM MAISC net of the gold credit net of the gold credit TSE: EDR | NYSE: EXK 5.9 MILLION oz Ag Eq PER YE
Slide 6: Spot Price Sensitivity Highlights
Spot Price Sensitivity Highlights UNDERGROUND MINE $282 MILLION NPV Shallow, thick and rich deposit, 12-year NPV @ 5% (after tax) mine life 30% IRR 2.5 YEAR PAYBACK PERIOD . ($1.51) /oz LOM CASH COST $1.15 /oz LOM MAISC net of the gold credit net of the gold credit TSE: EDR | NYSE: EXK 5.9 MILLION o
Slide 7: Highlights from the Feasibility Study
Highlights from the Feasibility Study Higher Production & Mine Plan Larger Reserve Longer Mine Life • Improved methodology to • Additional portal incorporated • Production profile optimized capture high grade silver zones to improve sequencing, • Elevated grade and production in • LOM reserves incre
Slide 8: Terronera Overview
TSE: EDR | NYSE: EXK Terronera Overview
Slide 9: Location, Access, Physiography, Infrastructure
Location, Access, Physiography, Infrastructure LOCATION 50 km northeast of Puerto Vallarta, Jalisco State, Mexico ACCESS Excellent road access 1.5 hour drive from PV on Hwy #70 PHYSIOGRAPHY Mountainous, temperate, forested region at elevations of 1500 – 2200 meters ASL TSE: EDR | NYSE: EXK INFRASTRU
Slide 10: Property, History, Geology, Mineralization
Property, History, Geology, Mineralization PROPERTY HISTORY • 25 mineral concessions, totalling 20,128 hectares • Historic silver-gold mining district dating from 1500’s or 200 km2 to 1800’s, mining halted in 1910-12 due to Mexican Revolution • Applications for new concessions • Endeavour purchased
Slide 11: Project Economic Evolution
Project Economic Evolution $300 2021 FS Wood – Spot Sensitivity (7) $250 COMPLETED 6 2021 FS Wood - Base INDEPENDENT case prices (6) TECHNICAL REPORTS $200 2017 PFS Smith NPV $150 Foster (2) ($million USD) 2015 PEA Smith $100 Foster (1) 2020 PFS Ausenco – 2018 PFS Smith Base case prices (5) $50 Fost
Slide 12: Project Milestones
Project Milestones From 2011-2018, 103,000 meters were drilled in 338 drill holes • Acquired option to • Completed initial • Received mine & plant permits purchase from Grupo PEA Mexico • Completed final PFS • Discovered high • Commenced grade La Luz • Successfully unlocked value to Exploration vein
Slide 13: Mineral Reserves and Resources
Mineral Reserves and Resources 120,000 450 Inferred AgEq 417 393 M+I AgEq 368 382 374 400 2P AgEq 365 366 100,000 AgEq Grade 321 351 350 53% increase in AgEq grade 293 80,000 300 since 2011 K oz Ag Eq 246 250 60,000 88,834 200 40,000 - 17,291 - 25,552 - - - 54,499 66,091 70,541 68,403 150 56% Increa
Slide 14: Production and Grade Profile
Production and Grade Profile Terronera Vein Years 1 – 4: Average Ag Eq annual production of 7.5 million oz ; elevated grade of 456 gpt Ag Eq 12000 Silver Production (oz) 600 Gold Production (oz) 550.0 Ag Eq Grade 550 10000 500 8000 450 424.5 425.0 424.1 390.5 6000 400 La Luz is almost 358.8 entirely
Slide 15: Financial Information
Financial Information TSE: EDR | NYSE: EXK
Slide 16: CAPEX in Feasibility Study Compared 2020 PFS
CAPEX in Feasibility Study Compared 2020 PFS CAPEX 2021 Wood 2020 Difference (million) Feasibility Study Ausenco PFS Mining $61.6 $50.7 $10.9 Tailings Management Facility $2.6 $3.4 ($0.8) Ore Crushing & Handling $6.6 $4.4 $2.2 Mineral Processing Plant $28.6 $15.5 $13.1 On-site Infrastructure $22.2 $
Slide 17: Feasibility CAPEX Compared to PFS CAPEX
Feasibility CAPEX Compared to PFS CAPEX 1. Mining Additional facilities were added for new Portal (#3) including development, ventilation requirements and more mining equipment $20 million INCREASES IN CAPEX BY AREA Portal #3 will improve mine sequencing, flexibility, better ore blending and allow f
Slide 18: Operating, Cash, and MAISC Costs
Operating, Cash, and MAISC Costs BASE CASE SPOT LOM MAISC, NET OF THE GOLD CREDIT (Base case prices) US$/T US$/Ag Oz US$/Ag Oz Mining $30.96 $5.81 $5.81 Gold Credit , Process $ 25.47 $4.78 $4.78 ($16.33) G&A $10.90 $2.05 $2.04 Total Operating Costs $67.33 $12.63 $12.63 $3.24 Mining, $5.81 Treatment
Slide 19: Operating Cost Comparison
Operating Cost Comparison $ TERRONERA EST. LOM CASH COSTS (1) VS. OPERATING PEER GROUP (2) 40.00 34.68 30.00 22.43 20.13 20.51 20.00 13.44 14.46 15.63 15.75 8.96 9.29 9.48 10.05 10.27 11.15 11.21 7.27 8.04 8.14 10.00 3.91 4.95 5.04 5.61 5.65 6.42 2.99 0.59 2.74 0.00 (1.56) (1.20) (1.17) (0.65) (3.69
Slide 20: After-Tax Free Cash Flow
After-Tax Free Cash Flow Base Case After Tax FCF Spot Price After Tax FCF SPOT $100 Base Case Cumulative After Tax FCF Spot Price Cumulative After Tax FCF $500 $80 Average annual Cumulated After Tax FCF $400 $60 BASE after-tax free cash flow, once in After Tax FCF $40 $300 production $20 $200 SPOT:
Slide 21: Sensitivity Analysis
Sensitivity Analysis Gold , 44% Project has slightly more leverage to rising silver prices than gold prices, as LOM revenue mix is 56/44% Silver , 56% silver, gold. Gold Price Silver Price $NPV %IRR ($/oz) ($/oz) (after- tax 5%) (after- tax) $1,200 $16 $39.9 9.1% $1,350 $18 $100.5 14.9% Base Case Ba
Slide 22: Technical Review
Technical Review TSE: EDR | NYSE: EXK TSX: EDR | NYSE: EXK www.edrsilver.com
Slide 23: Mine Plan
Mine Plan UNDERGROUND RAMP ACCESS MINES TERRONERA • Terronera – 3 portal accesses, main central ramp connecting main haulage way at 2,230m elevation to Portal #1 • La Luz – Access through Portal 1 and connecting Ramp • 42 km of lateral waste development and 34 km of ore development over LOM MINING M
Slide 24: Annual Mine Schedule
Annual Mine Schedule YEAR 1 (2024) – DEVELOPMENT ORE PRODUCTION (KTONNES) 700,000 600,000 500,000 400,000 300,000 200,000 YEAR 5 (2028) – DEVELOPMENT 100,000 0 TSE: EDR | NYSE: EXK -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 YEAR Long hole Cut & Fill Shrinkage Ore Development 24
Slide 25: Plant Process Flow Sheet
Plant Process Flow Sheet 3. Rom Ore 4. Grizzly 5. Coarse Ore 13. Primary Cyclone 14. Trash Screen Hopper 15. Flash Flotation Cell 6. Vibrating Grizzly 16. Cyclone Feed Pumpsox Feeder 1. Rom Stockpile 9. Tertiary Crusher 2. Front End Loader 10. Secondary Crusher 7. Primary Crusher 11. Fine Ore Bin 8.
Slide 26: Mine Layout
Mine Layout La Luz vein MINING FLEET: • Haulage Trucks • Infill Diamond Drills • Scoop Trams • Explosive Loaders • Front End Loaders & Trucks • Jumbo Drills • Shotcrete Sprayers • Bolting Jumbos • Scissors Lifts • Longhole Drills • Transmixers • Jacklegs/Stopers LIQUIFIED NATURAL GAS POWER GENERATIO
Slide 27: Exploration Opportunities
Exploration Opportunities WITHIN RESOURCE FOOTPRINT TERRONERA PROJECT SURFACE VIEW • 2 defined ore bodies: Terronera & La Luz – open to • Thick veins widths averaging 1-30 meters thick surface & at depth • High-grade averaging 400 – 1,000 gpt Ag Eq • 3 main areas for resource expansion potential: •
Slide 28: Upside Opportunities
Upside Opportunities EXPAND RESOURCES & RESERVES – exploration drilling within current resource footprint and drilling in newly identified regional targets. MINING METHOD – additional geotechnical drilling to increase confidence in ground conditions; potential for more long hole mining and/or increa
Slide 29: Project Timeline
Project Timeline PROJECT MANAGEMENT TEAM • Significant global construction & operating experience • Escobal Mine, Guatemala H2 21 H1 22 H2 22 H1 23 H2 23 H1 24 MILESTONES (1) • Buritica Mine, Columbia • Engaging with local government and state ministries to align sustainability objectives Formal Con
Slide 30: ESG
ESG TSE: EDR | NYSE: EXK TSX: EDR | NYSE: EXK www.edrsilver.com
Slide 31: Committed to the Community
Committed to the Community COMMITMENT TO THE LOCAL WORK FORCE • 2 offices opened and staffed, with 50 full time staff • Project Management office in Puerto Vallarta • Community Relations office in San Sebastian • Over 750 employed during construction phase • Over 500 employed during operations Terro
Slide 32: Environment
Environment KEY PERMITS IN HAND Critical permits received and periodic reviews by regulators successful to date ENVIRONMENTAL STUDIES UNDERWAY Environmental baseline & social impact assessment Locals raise & farm cattle INTEGRATING EQUATOR PRINCIPLES To meet bank financing requirements into Environm
Slide 33: The Right Formula for Value Creation
The Right Formula for Value Creation PROVEN STRATEGY QUALITY PROJECT IMPROVED CONFIDENCE • Comprehensive reviews & analysis in: + LARGE, HIGH GRADE UG MINE POTENTIAL • Attractive both in size & grade; shallow, thick deposit style • Construction & cost estimate • 12 year mine life • Operability LOWES
Slide 34: Appendix
Appendix TSE: EDR | NYSE: EXK TSX: EDR | NYSE: EXK www.edrsilver.com
Slide 35: Terronera Feasibility Study Summary
Terronera Feasibility Study Summary FS PFS % PROJECT SUMMARY 2021 2020 Change Tonnes Mined (Thousands) 7,380 5,563 33% Mined Gold (koz) 533.6 410.0 30% Mined Silver (koz) 46,707 36,013 30% Mined Silver Equivalent (koz) 88,838 67,988 31% Gold Recovery rate (%) 76.3 82.3 (7%) Silver Recovery Rate (%)
Slide 36: 2021 Feasibility Study Compared to 2020 PFS
2021 Feasibility Study Compared to 2020 PFS TERRONERA PROJECT FS – PFS Change 2021 FS Compared to 2020 PFS 2021 2020 % Change Silver Price 20.00 15.97 25% Gold Price 1,575 1,419 11% Silver:Gold Ratio 79 89 (11%) Operating Statistics LOM Tonnes Processed LOM (thousands) 7,380 5,563 33% Life of Mine (
Slide 37: 2021 Feasibility Study Compared to 2020 PFS
2021 Feasibility Study Compared to 2020 PFS TERRONERA PROJECT FS – PFS Change 2021 FS Compared to 2020 PFS 2021 2020 % Change Operating Cost Metrics LOM Gross Revenue (millions) 1,406.2 942.7 49% LOM Gross COS (millions) 640.6 466.3 37% LOM EDITBA (millions) 763.7 476.4 60% After Tax LOM Free Cash F
Slide 38: Non-IFRS Measures
Non-IFRS Measures Endeavour Silver reports non-IFRS measures which include cash costs net of by-product revenue on a payable silver basis, total production costs per ounce, all-in sustaining costs per ounce, direct production costs per tonne, silver co-product cash costs and gold co-product cash cos
Slide 39: Feasibility Study Reserves and Resources
Feasibility Study Reserves and Resources Terronera and La Luz Probable Mineral Reserve (FS 2021) Terronera Tonnes Ag (g/t) Au g/t Ag Eq g/t Ag (000’s A (000’s Ag Eq (kt) oz) oz) (000’s z) Total 7,380 197 2.25 374 46,707 534 88,834 Probable Notes 1. Mineral Resource cut-off grades for Terronera was 1