Slide 1: Management Presentation
Management Presentation Results for the First Quarter ended March 31, 2012 May 9, 2012
Slide 2: Introduction
Introduction Neil Woodyer Chief Executive Officer Mark Connelly Christian Milau Chief Operating Officer Executive VP & CFO This presentation may contain forward-looking information relating to the future performance of Endeavour Mining. Forward-looking information, specifically those concerning futu
Slide 3: Q1/2012 Highlights
Q1/2012 Highlights • Produced 49,531 ozs Q1 − A strong start on delivering full year production guidance of 170,000 to 190,000 ozs • Cash cost of $664/oz produced − At mid-guidance range Upper 190,000 ozs $685/oz Guidance • Generated $38.9 million of cash margin, which is revenue from gold sales les
Slide 4: Established Gold Production Base
Established Gold Production Base 2010 2011 2012 Production 82,402 ozs 177,290 ozs 170,000-190,000 ozs Cash Margin1 $36 million $91 million2 ~$150 million (@$1,600) 51k 50k 48k 45k Nzema - Actual 34k Nzema - Projected 23k 21k 20k 18k Youga - Actual Youga - Projected Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 5: Cash Flows from Mine Operations (Quarterly)
Cash Flows from Mine Operations (Quarterly) 40 US$M 35 30 Adjusted to include $8.5 million for March production with cash proceeds received in early April 25 20 15 $24.4 million of 10 operating cash flow from mine operations 5 0 2010 2011 Q1 2012 • Cash flows from mine operations (adjusted) of $32.9
Slide 6: Q1/2012 Financial Highlights
Q1/2012 Financial Highlights Q1/2012 Q1/2011* Gold production (ounces) 49,531 20,056 Gold sold (ounces) 45,127 19,394 Total cash cost per oz (excl royalties) sold $659 $713 US$ Millions US$ Millions Operating cash flow from mine operations $24.4 $6.6 Adjustment (March production with proceeds receiv
Slide 7: Operating Summary – Nzema Gold Mine, Ghana
Operating Summary – Nzema Gold Mine, Ghana Annual Q1/2012 Q1/20111 Guidance Tonnes of ore mined (000s) 535 - Average gold grade mined (g/t) 1.51 - Tonnes of ore milled (000s) 506 - Average gold grade milled (g/t) 1.64 - Gold ounces produced 92,000 – 102,000 25,543 - Gold ounces sold 25,531 - Total c
Slide 8: Operating Summary – Youga Gold Mine, Burkina Faso
Operating Summary – Youga Gold Mine, Burkina Faso Annual Q1/2012 Q1/2011 Guidance Tonnes of ore mined (000s) 292 221 Average gold grade mined (g/t) 2.96 3.54 Tonnes of ore milled (000s) 255 212 Average gold grade milled (g/t) 2.77 3.29 Gold ounces produced 78,000 - 88,000 23,988 20,056 Gold ounces s
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Q1/2012 US$ Millions Cash and cash equivalents Beginning balance (Dec 31, 2011) $115.3 Cash flow from mine operations + 24.41 Investments in mine operations and exploration - 23.2 Other net cash flows (corporate costs, etc.) - 5.7 Cash and cash equivalents (March 31, 2012) 1
Slide 10: Q1/2012 Investments
Q1/2012 Investments • $23.2 million invested into capex and exploration during Q1/2012 − $20.5 million capitalized, $2.7 million expensed as exploration A GOLD PRODUCER DELIVERING GROWTH 9
Slide 11: Q1/2012 Adjusted Net Earnings Reconciliation
Q1/2012 Adjusted Net Earnings Reconciliation Q1/2012 US$ Millions Net earnings / (loss) $(20.4) Losses on financial instruments (unrealized) + 7.2) Other + 0.4) Deferred income tax expense* + 28.8) Adjusted net earnings after tax $16.0) Weighted avg number of outstanding shares 244,848,261 Adjusted
Slide 12: Endeavour's Next Mine: Agbaou Gold Project
Endeavour’s Next Mine: Agbaou Gold Project • 85% Endeavour / 15% Côte d’Ivoire government • Project parameters: − Open pit with up to 1.6Mtpa CIL plant and Agbaou Site Plan 92% recovery − Contract mining − Production approx. 100,000ozs/year and 7 year mine life from current reserves − 2012 $6 millio
Slide 13: Endeavour's Next Mine: Agbaou Gold Project
Endeavour’s Next Mine: Agbaou Gold Project Jaw crusher Contract mining • Commencing engagement with communities − Building community office • Progressive buildup of project team in new Abidjan office • Advancing long lead items such as: − Crushing and grinding equipment - bids received and in evalua
Slide 14: Youga Near Mine Exploration Success
Youga Near Mine Exploration Success • Positive results from near mine exploration along the Brassiere Trend at Youga − Brasserie Trend includes the Zergoré deposit and the La Forge, Castel, Beaufort and Flag prospects (all within 4 km of the Youga plant) • Exploration Highlights: − YZRC‐201: 42 m of
Slide 15: Salman Trend - Sulphide Project
Salman Trend - Sulphide Project • Drilling has confirmed the presence of several sulphide ore shoots below the principal oxide pits • Initial studies are encouraging: − Conceptual Trade-off Study by AMEC Minproc − Initial Metallurgical testwork at SGS Australia • On May 2, Endeavour announced expand
Slide 16: West African Land Position
West African Land Position Exploration West African Birimian and Archean Greenstone • Burkina Faso: 1,462km2 • Ghana: 665km2 • Côte d’Ivoire: 3,969km2 – Daoukro – Agnibilekrou – Allangoua – Tanda – Permit applications • Mali: 1,046km2 – Mali west – Mali south • Liberia: 3,107km2 West African Land Po
Slide 17: Conclusion
Conclusion Established Track • Q1/2012 continues our +2 year successful performance track Record record Operating Cash • Operating cash flow is funding exploration and development Flows Funds growth plans Growth • Strong financial base allows: Strong Financial − Investments in long term operational
Slide 18: Appendix Resources December 2011
Appendix Resources 31 December 2011 Mineral Resources including Reserves, at a 0.5g/t cut-off as of 31 December 2011 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 Nzema1,2,3,4 – Total 31,658 1.4 1,409 16,671 1.2 656 4
Slide 19: Appendix Reserves December 2011
Appendix Reserves 31 December 2011 Mineral Reserves as of 31 December 2011 Deposit Proven Probable Total Gold Price kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs US$/oz Nzema1,2,3,4 – Total 11,938 2.0 770 2,664 2.3 193 14,603 2.0 964 900 Attributable – 90% - - 693 - - 174 - - 867 - Youga5 2,
Slide 20: Appendix Resources & Reserves Notes
Appendix Resources & Reserves Notes 1 Technical Report Southern Ashanti Gold Project, Ghana, West Africa effective 6 Youga Satellite Deposits, Internal Resource Estimates, prepared by AMEC August 17, 2009, prepared by Ron Heeks (M.AusIMM), Technical Manager under supervision of K. Woodman Internal R