Slide 1: Q4 and Full Year 2015 Results
Endeavour Mining Q4 and Full Year 2015 Results CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce rates, increases in market prices of mining consumables, possible are non-GAAP performance measures with no standard meaning variations in ore reserves, grade or recovery rates; failure of under IFR
Slide 3: Out-performed guidance again in 2015
Out-performed guidance again in 2015 Strong operational performance – Beat production and AISC guidance – Increased production by 11% – Decreased AISC/oz costs by 9% Solidified balance sheet through cash flow generation – Free cash flow increased by 2.4x with US$84 million generated before tax, WC 2
Slide 4: Delivering our strategic objectives
Delivering our strategic objectives 1) Increase Production 2) Decrease All-in Sustaining Cash Costs Production, on a 100% basis in koz AISC, in US$/oz +11% $1,137/oz 535-560koz 517koz 466koz -9% $1,010/oz 324koz $922/oz $870-920/oz 2013A 2014A 2015A 2016 Guidance 2013A 2014A 2015A 2016 Guidance (pos
Slide 5: Strong Q4 performance
Strong Q4 performance Record Production in Q4-2015 All-in Sustaining Cash Costs Production, on a 100% basis in koz AISC, in US$/oz +14% 137koz 1,059 131 -6% 1,021 125 991 $995/oz 123 124 120koz 118 946 $934/oz 908 898 106 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
Slide 6: Production performance by mine
Production performance by mine Production, in koz on a 100% basis Insights: 200 +32% • Agbaou achieved record production in 2015, mainly due to a 20% increase in mill 181 throughput and the continued benefit of 180 mining free-dig oxide ore 165-175 +19% • Tabakoto increased production by 19% over 16
Slide 7: AISC performance by mine
AISC performance by mine Group AISC All-in Sustaining Cash Costs, decreased by 9% in US$/oz $1,010 in 2014 Insights: $922 2016E 2015 2014 621 in 2015 • Group AISC decreased by 9% mainly due to Agbaou 576 lower operating costs, specifically at Agbaou 650-700 and Tabakoto, as well as the benefit of th
Slide 8: Maintained sustaining margin despite drop in gold price
Maintained sustaining margin despite drop in gold price +4% +59 -1 -17 Stable G&A +$12 at Tabakoto despite increased and +$5.5m at Agbaou production -3m Total Cash Costs US$122m US$117m -49 decreased by 13% to $720/oz Realized gold price fell 8% from US$1,264 to US$1,157/oz +16 Gold sales increased
Slide 9: Net Free Cash Flow breakdown
Net Free Cash Flow breakdown $122m -9 -28 $85m +6 -7 -16 -60 +73 -34 $47m $34m AISC Margin Non-sustaining Non-sustaining Free cash Working capital Taxes paid Interest paid Other items* Free Cash Cash received Revolving credit Year over exploration capital from La Mancha facility payments flow Flow a
Slide 10: Net Earnings
Net Earnings (in US$m) 2015 2014 Variance Revenues 601 584 +17 Volume increase partially offset by gold price decrease Operating expenses (382) (387) (5) AISC decrease helped keep total operating costs stable, despite greater production Royalties (29) (28) +1 Corporate costs (21) (22) (1) Stable Oth
Slide 11: Improved Balance Sheet With Strong Liquidity
Improved Balance Sheet With Strong Liquidity • Net debt reduced by 43%, from US$254 million to US$144 million with US$60 million debt voluntarily reimbursed • The Company’s liquidity sources, at end of 2015, include: – US$110 million cash position – US$110 million undrawn RCF capacity1 – US$100 mill
Slide 12: Free cash flow expected to increase again in 2016
Free cash flow expected to increase again in 2016 2016 production guidance of 535-560koz at AISC of 870-920/oz Insights: Production Guidance1, ounces AISC Guidance, $/oz • At US$1,150 gold price, AISC margin of Agbaou 165,000 - 175,000 Agbaou 650 - 700 approximately US$138m in 2016, or Tabakoto 155,
Slide 13: Reserves and Resources
Reserves and Resources • Successful exploration replenished 93% Proven and Probable Reserves of M&I resource ounces depleted in 2015 in Moz 100% basis +29% – Agbaou fully replaced the soft material 5.9 5.8 mined during 2015 and added an 4.5 +1.6 -0.1 additional year of free-dig oxide mine life, -0.5
Slide 14: Upcoming Catalysts
Upcoming Catalysts • Continued optimization of operations with 2016 production guidance of 535- 560koz while AISC expected to decrease to US$870- 920/oz, post Youga sale • Houndé project investment decision expected in Q2 • Ity CIL project DFS expected by Q3 • Exploration strategic review underway C
Slide 15: Appendix: Mine by Mine Summary
Appendix 1 Q4 & Year 2015 Results Mine by Mine Summary CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 16: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Agbaou achieved record production in 2015, up 24% over the previous year with a 20% increase in mill throughput Mining and continued benefit from mining free-dig oxide ore Waste (k
Slide 17: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Tabakoto increased production by 19% over the Mining previous year as the mine benefited from the Waste (kt) 1,314 2,286 6,407 6,453 start of mining of Kofi C open pit and the full Ore Mi
Slide 18: Nzema Mine – Ghana
Nzema Mine – Ghana Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Nzema’s production remained fairly constant Mining over the previous year as the mine strategically Waste (kt) 1,826 1,063 6,963 4,096 increased the levels of purchased ore to Ore Mined - o
Slide 19: Youga Mine – Burkina Faso
Youga Mine – Burkina Faso Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Subsequent to the year ended December 31, Mining 2015, on February 29, 2016, the Corporation Waste (kt) 21,212 1,502 3,562 6,684 announced that it had sold the Youga Gold Ore Mined -
Slide 20: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Full Year Post acquisition period Insights: 2015 (Nov 28 to Dec 31, 2015) OperationalData • The Ity Mine is included for the post- Mining acquisition period of November 28 to Waste (kt) 5,465 368 December 31, 2015, in the company’s 2015 Ore Mined - open pit (kt) 1,021 63 fin