Slide 1: Operational & Financial Results
Q1 OPERATIONAL Q2 & FINANCIAL RESULTS Q3 › November 7, 2018 Q4
Slide 2: Disclaimer & Forward Looking Statements
Q3-2018 RESULTS DISCLAIMER & FORWARD LOOKING STATEMENTS Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. This presentation contains “forward-looking statements” including but not limited to, statements with respect t
Slide 3: Speakers and Table of Contents
SPEAKERS TABLE OF CONTENTS SÉBASTIEN DE MONTESSUS President & Chief Executive Officer 1 Q3-2018 IN REVIEW JEREMY LANGFORD Chief Operating Officer 2 FINANCIAL SUMMARY DETAILS BY MINE AND VINCENT BENOIT 3 PROJECT EVP – CFO and Corporate Development 4 CONCLUSION PATRICK BOUISSET EVP – Exploration and G
Slide 4: Q3-2018 Activities Recap
Q3-2018 RESULTS Q3-2018 ACTIVITIES RECAP Strong Continued Achievements Across Our 4 Pillars 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCKING EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT ✓ Strong safety record ✓ Ity CIL construction is ✓ Over 346,600 meters drilled ✓ Strong liqu
Slide 5: Strong Safety Record
Q3-2018 RESULTS STRONG SAFETY RECORD Our safety record remains better than the industry average Lost Time Injury Frequency Rate 0.80 0.28 LTM Lost Time Injury Frequency Rate 0.40 0.29 0.28 0.00 0.00 0.00 +6.0m Peer Group FY2016 FY2017 Trailing 12 Houndé Agbaou Ity Man Hours with no Average months LT
Slide 6: Strong Year-to-Date Performance
Q3-2018 RESULTS STRONG YEAR-TO-DATE PERFORMANCE On-track to achieve high-end of production guidance and low-end of AISC guidance Mine YTD Guidance Comment PRODUCTION FROM CONTINUING OPERATIONS PRODUCTION (in Koz) Houndé 201 250-260 On-track high end Ity 64 60-65 Above guidance Karma 75 105-115 On-tr
Slide 7: Production Well On-Track to Meet Guidance
Q3-2018 RESULTS PRODUCTION WELL ON-TRACK TO MEET GUIDANCE Production expected to improve in Q4 following end of rainy season Group Production (koz) and AISC (US$/oz) for continuing operations AISC Production 151koz +76% 152koz +76% 147koz Q3-18 vs. Q3-17 139koz Production from continuing operations
Slide 8: Significant Reduction in AISC
Q3-2018 RESULTS SIGNIFICANT REDUCTION IN AISC Portfolio management and project development efforts have lowered AISC AISC variation between YTD-2017 and YTD-2018 In US$/oz Portfolio management efforts $903/oz $10/oz Project development efforts Nzema ($79/oz) $834/oz sold Tabakoto ($75/oz) declassifi
Slide 9: All-in Margin Significantly Increased
Q3-2018 RESULTS ALL-IN MARGIN SIGNIFICANTLY INCREASED Strong increase is mainly due to Houndé All-in Margin In US$m, Includes Discontinued Operations $162m +34% Realized Gold Price $149m $134m YTD-18 vs. YTD-17 +34% $85m $100m $35m for YTD +$34m $1,183/oz YTD-18 vs. YTD-17 $1,264/oz $1,157/oz $1,219
Slide 10: Ity CIL Project Construction
Q3-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Project completion stands at over 75%, tracking 2 months ahead of schedule ACHIEVEMENTS TO DATE Capex spend and remaining cash outflow › More than 6 million man-hours worked with zero lost-time injuries › As at September 30, 2018, the project capital expe
Slide 11: Ity CIL Project Construction
Q3-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Benefit of being 2 months ahead of schedule for 2019 2018 EXPECTED SPEND VS. ACTUALS BENEFIT OF BEING 2 MONTHS AHEAD OF SCHEDULE FOR 2019 Approx. $260m $50-60m 2 months ahead represents ~40koz 2 MONTHS AHEAD Q4-Expected of additional production in 2019 OF
Slide 12: Ity CIL Project Construction
Q3-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Construction is progressing 2-months ahead of schedule and on-budget Process Plant Power Station Resettlement Haul Bridge 12
Slide 13: Ity CIL Project Construction
Q3-2018 RESULTS ITY CIL PROJECT CONSTRUCTION Project completion stands at over 75%, tracking 2 months ahead of schedule 2018 2019 Activity Q1 Q2 Q3 Q4 Q1 Q2 EARTHWORKS & TSF Camp earthworks Bridge crossing TSF complete complete complete CAMP CONSTRUCTION Admin building completed DETAILED ENGINEERING
Slide 14: Q3 Exploration Activities
Q3-2018 RESULTS Q3 EXPLORATION ACTIVITIES Continued strong focus on exploration activities INSIGHTS EXPLORATION EXPENDITURE FOR YTD-2018 › During Q3-2018, despite more difficult working conditions due to the rainy season, a total of 54,000m were drilled across the group for an exploration spend of $
Slide 15: Exploration at the Houndé Mine, Burkina Faso
Q3-2018 RESULTS EXPLORATION AT THE HOUNDÉ MINE, BURKINA FASO Maiden resource expected to be published in the coming weeks INSIGHTS Houndé exploration targets and gold-in-soil anomalies map › Houndé has been the strongest exploration focus for Endeavour in 2018 with 44,000m drilled in Q3-2018 totalli
Slide 16: Fetekro Greenfield Exploration in Côte d'Ivoire
Q3-2018 RESULTS FETEKRO GREENFIELD EXPLORATION IN CÔTE D’IVOIRE Objective of discovering Endeavour’s next standalone project INSIGHTS Fetekro’s Lafigué exploration prospect gold in soil map › Published maiden resource estimate on the Lafigué target and identified of 14 additional nearby targets ‒ In
Slide 17: Financial Summary
Q3-2018 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 18: Production Bridge
Q3-2018 RESULTS PRODUCTION BRIDGE Houndé offset sale of Nzema and Tabakoto, and expected decline at Agbaou Production Bridge YTD-2017 to YTD-2018 INSIGHTS Change in AISC › Production from continuing operations 459koz significantly increased in Q3-2018 compared 438koz to Q3-2017 due to the commission
Slide 19: All-in Margin Breakdown
Q3-2018 RESULTS ALL-IN MARGIN BREAKDOWN Increased by 34% due to increased production and a higher gold price NINE MONTHS ENDED, INSIGHTS SEP. 30, SEP. 30, 1. Gold sales up mainly due to the (in US$ million) 2018 2017 successful start-up of Houndé GOLD SOLD FROM CONTINUING OPERATIONS, koz 1 439 253 2
Slide 20: Growth Funding Sources
Q3-2018 RESULTS GROWTH FUNDING SOURCES Cash flow from operations and RCF used to fund growth NINE MONTHS ENDED, SEP. 30, SEP. 30, INSIGHTS (in US$ million) 2018 2017 1. Should be partially offset in Q4-2018 and in early 2019. 134 100 Main components are: ALL-IN MARGIN FROM ALL OPERATIONS ‒ Receivabl
Slide 21: Strong Increase in Cash Flow per Share
Q3-2018 RESULTS STRONG INCREASE IN CASH FLOW PER SHARE Significant improvement in portfolio asset quality Operating Cash Flow Before Non-Cash Working Capital, in $/share $1.94/share $1.68/share +30% YTD-18 vs. YTD-17 $1.49/share +$0.45 YTD-18 vs. YTD-17 YTD-2016 YTD-2017 YTD-2018 21
Slide 22: Significant Funding Sources to Fund Growth
Q3-2018 RESULTS SIGNIFICANT FUNDING SOURCES TO FUND GROWTH Balance sheet remains strong despite growth project capex spend Fully funded without mine cash flow Circa $26m Up to $25m $60m $213m Undrawn RCF $180m Ity capex remaining $148m Cash $33m Liquidity Sources Tabakoto Nzema Ity Equipment Expecte
Slide 23: Cash Variation Analysis
Q3-2018 RESULTS CASH VARIATION ANALYSIS Significant investments being done to improve our portfolio quality Net Cash Variation Analysis OPERATING ACTIVITIES › Includes negative $89m of negative working capital variation INVESTING ACTIVITIES $119m › Includes $231m of growth project capital › Includes
Slide 24: Net Earnings Breakdown
Q3-2018 RESULTS NET EARNINGS BREAKDOWN Adjusted EPS of $0.31 for YTD 2018 NINE MONTHS ENDED SEP. 30, SEP. 30, INSIGHTS (in US$ million) A = Adjustments made of Adjusted Net Earnings 2018 2017 1. Gain due to a $18m gain on the gold revenue GOLD REVENUE 544 299 protection program and a $20m unrealised
Slide 25: Details by Mine and Project
Q3-2018 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 26: Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Strong contribution to group performance Q3-18 vs Q2-18 INSIGHTS Production and AISC › Houndé performed well during the rainy Production, koz AISC, US$/oz season, as the plant continued to perform significantly above nameplate capacity 74koz 69koz
Slide 27: Agbaou Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Transitional year for Agbaou Q3-18 vs Q2-18 INSIGHTS Production and AISC › Due to the transitional nature of the year, Production, koz AISC, US$/oz production remained at low levels in Q3- 2018 as mining continued to be constrained 46koz to low-gr
Slide 28: Ity Heap Leach Mine, Côte d'Ivoire
DETAILS BY MINE & PROJECT ITY HEAP LEACH MINE, CÔTE D’IVOIRE Already surpassed full-year production guidance Q3-18 vs Q2-18 INSIGHTS Production and AISC › The operation performed above Production, koz AISC, US$/oz expectations in Q3-2018 as mining was 25koz opportunistically conducted based on equip
Slide 29: Karma Mine, Burkina Faso
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Production increased despite rainy season Q3-18 vs Q2-18 INSIGHTS Production and AISC › As expected, production increased in Q3, Production, koz AISC, US$/oz despite the rainy season, due to the higher 28koz grades and better recovery rates associat
Slide 30: Tabakoto Mine, Mali
DETAILS BY MINE & PROJECT TABAKOTO MINE, MALI Sale expected to close in Q4-2018 Q3-18 vs Q2-18 INSIGHTS Production and AISC › Production remained flat, despite the impact Production, koz AISC, US$/oz of heavy rainfall, as a slightly higher mill 32koz 32koz throughput offset a lower average processed
Slide 31: Kalana Project, Mali
DETAILS BY MINE & PROJECT KALANA PROJECT, MALI Updated resource expected in coming weeks Several Licenses under negociation INSIGHTS With Private › An intensive exploration program, consisting owners of 48,000m of drilling, was finalized in early Q2-2018 on the Kalana and Kalanako deposits. No drill
Slide 32: Conclusion
Q3-2018 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 33: Upcoming Catalysts
CONCLUSION UPCOMING CATALYSTS ON TRACK TO MEET FY-2018 GUIDANCE WITH FURTHER GROWTH IN 2019 › Production from continuing operations well on-track to meet the upper-end of the FY-2018 Immediate guidance of 555-590koz Cashflow › AISC from continuing operations well on-track to meet the bottom-end of t
Slide 34: Appendix
Q3-2018 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 35: Agbaou Mine, Côte d'Ivoire
APPENDIX AGBAOU MINE, CÔTE D’IVOIRE Mineralization was confirmed at the extensions of several deposits Agbaou Site Map INSIGHTS › Less than 1,000m were drilled in Q3-2018 due to the seasonal rain. Since the beginning of 2018 more than 27,000m have been drilled › A total of more than 20,000m, represe
Slide 36: Ity Mine, Côte d'Ivoire
APPENDIX ITY MINE, CÔTE D’IVOIRE Main focus is on the La Plaque discovery Ity Mine Drilling Targets INSIGHTS › Nearly 3,000m were drilled Q3-2018 totalling more than 38,000m since the start of the year, mainly focused on: ‒ The Le Plaque target where additional resources are expected to be delineate
Slide 37: Karma Mine, Burkina Faso
APPENDIX KARMA MINE, BURKINA FASO Rambo West indicated resources expected to be delineated by year-end Karma Site Map INSIGHTS › More than 23,000m have been drilled since the start of the year, with no meters drilled in Q3-2018 due to the seasonal rain › Drilling this year has mainly focused on the
Slide 38: Tabakoto Mine, Mali
APPENDIX TABAKOTO MINE, MALI Exploration mainly focused on underground exploration Tabakoto Site Map INSIGHTS › During Q3-2018 no drilling was done on the surface and nearly 6,000m were drilled underground › Since the start of the year nearly 5,000m were drilled on open pit targets while more than 1
Slide 39: Production and Cost Details by Mine
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU TABAKOTO ITY KARMA HOUNDÉ (on a 100% basis) Unit Q3-2018 Q2-2018 Q3-2017 Q3-2018 Q2-2018 Q3-2017 Q3-2018 Q2-2018 Q3-2017 Q3-2018 Q2-2018 Q3-2017 Q3-2018 Q2-2018 Q3-2017 Physicals Total tonnes mined – OP1 000t 6,942 7,801 7,576
Slide 40: Production and Cost Details by Mine
APPENDIX PRODUCTION AND COST DETAILS BY MINE For the 9-month period ended September 30, 2018 and 2017 AGBAOU TABAKOTO ITY KARMA HOUNDÉ (on a 100% basis) Unit Sep. 30, 2018 Sep. 30, 2017 Sep. 30, 2018 Sep. 30, 2017 Sep. 30, 2018 Sep. 30, 2017 Sep. 30, 2018 Sep. 30, 2017 Sep. 30, 2018 Sep. 30, 2017 Ph
Slide 41: Working Capital and Long-Term Inventory
APPENDIX WORKING CAPITAL AND LONG-TERM INVENTORY YTD outflow should be partially offset in Q4-18 and in early 2019 as inventories begin to normalise In millions of Δ WC Δ WC INSIGHTS OUTLOOK US$ 3Q-18 YTD-2018 Receivables (11) (12) › Timing of gold sales at end of Sept resulted in a › The gold sales