Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Q1 2021 Earnings Presentation
47 slides from Endeavour Mining's earnings presentation, May 13, 2021
Slide 1: Q1-2021 Operational & Financial Results
Q1 Q2 Q3 Q4 Q1-2021 OPERATIONAL & FINANCIAL RESULTS May 13, 2021 TSX:EDV
Slide 2: Speakers
SPEAKERS SÉBASTIEN DE MARK JOANNA PATRICK MARTINO MONTESSUS MORCOMBE PEARSON BOUISSET DE CICCIO CEO and Director COO CFO EVP Exploration VP, Strategy and and Growth Investor Relations
Slide 3: Table of Contents
TABLE OF CONTENTS 1 Q1-2021 IN REVIEW 2 FINANCIAL REVIEW 3 DETAILS BY MINE AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 4: Disclaimer & Forward Looking Statements
DISCLAIMER & FORWARD LOOKING STATEMENTS Production per share, sustaining capital per ounce, non-sustaining capital per mining operations, tax rules and regulations, and political and economic ounce, non-sustaining exploration per ounce, cash cost per ounce, all in developments in countries in which
Slide 5: Q1-2021 in Review
01 SECTION 1 Q1-2021 IN REVIEW
Slide 6: Strong Q1-2021 Performance
Q1-2021 RESULTS STRONG Q1-2021 PERFORMANCE On track to meet strategic objectives for the year KEY Q1-2021 TAKEAWAYS STRONG BUSINESS PERFORMANCE › On track to meet production and AISC guidance for FY-2021 +102% (3%) › Successfully integrated Teranga assets Production AISC vs. Q1-2020 vs. Q1-2020 › St
Slide 7: Q1 Performance on Track to Meet Guidance
Q1-2021 RESULTS Q1 PERFORMANCE ON TRACK TO MEET GUIDANCE Strong performance across all operating metrics GROUP LTM BELOW LTIFR1 INDUSTRY 0.14 1.10 Industry Average2 Full benefit of Sabodala- Massawa & Wahgnion GROUP consolidation in Q2 Q1 ON-TRACK PRODUCTION 347koz 1,365-1,495koz Guidance $868/oz GR
Slide 8: Safety Is Our Top Priority
Q1-2021 RESULTS SAFETY IS OUR TOP PRIORITY Lost Time Injury Frequency Rate remains low compared to industry standards Group Lost Time Injury Frequency Rate(1) (on a rolling 12-months basis) 1.10 0.14 Lost Time Injury Frequency Rate 0.40 0.20 0.18 0.10 0.12 0.14 4 LTIs Over the past 12 months Industr
Slide 9: Production and AISC
Q1-2021 RESULTS PRODUCTION AND AISC Full consolidated benefit of newly acquired Teranga assets expected in Q2-2021 Production and AISC Production AISC from all operations 344koz 347koz +175koz Production 244koz Q1-2021 vs. Q1-2020 172koz 149koz $939/oz +23% $899/oz $906/oz $868/oz $803/oz Production
Slide 10: Well Diversified Production
Q1-2021 RESULTS WELL DIVERSIFIED PRODUCTION Strong diversification across assets and countries Assets acquired from Teranga 7 Assets acquired from SEMAFO Original Endeavour assets Divested assets Wahgnion Mana Mines Sabodala-Massawa Boungou Production Agabou Q1-20211 Ity Production Q1-2020 Karma Aga
Slide 11: All-in Sustaining Margin
Q1-2021 RESULTS ALL-IN SUSTAINING MARGIN Benefit of larger portfolio improving the Group’s cost position and resilience All-in Sustaining Margin from all operations In $m, unless otherwise indicated Realized 220m Gold Price $92/oz lower gold price $341m $333m +$ All-in Sustaining Margin Q1-2021 vs.
Slide 12: Operating Cash Flow
Q1-2021 RESULTS OPERATING CASH FLOW Benefit of larger portfolio of mines and higher gold price vs. Q1 last year Operating cash flow before working capital1 (from all operations) Impact of $92/oz lower gold price $311m +$ 137m $256m Operating CF pre-WC Q1-2021 vs. Q1-2020 $223m $119m $85m +115% Opera
Slide 13: Balance Sheet Strength
Q1-2021 RESULTS BALANCE SHEET STRENGTH Significant net debt reduction in 2020 creates foundation for shareholder returns Net Debt Reduction 0.16x (Net Debt)/ Net Cash Net Debt / Adj. EBITDA (LTM) INVESTMENT DEBT REDUCTION DIVIDENDS PHASE PHASE & BUYBACK ANNOUNCED Low Net Debt/Adj. EBITDA (LTM) ratio
Slide 14: Attractive Organic Growth Pipeline
Q1-2021 RESULTS ATTRACTIVE ORGANIC GROWTH PIPELINE Sabodala-Massawa expansion underway; progressing DFS on greenfield projects BROWNFIELD PROJECT: GREENFIELD PROJECTS: SABODALA-MASSAWA EXPANSION FETEKRO KALANA PHASE 1 INSIGHTS: PFS INSIGHTS: PFS INSIGHTS: › Debottlenecking the plant back-end › Mine
Slide 15: Continued Strong Exploration Focus
Q1-2021 RESULTS CONTINUED STRONG EXPLORATION FOCUS Exploration programme to ramp up in Q2 ahead of rainy season 2021 Exploration Budget Ity Wahgnion 11% 15% Mana 10% Sabodala-Massawa 16% $70-90 Hounde 9% million Boungou 9% Greenfields and other 30% Q1-2021 Exploration Spend Wahgnion 6% Ity Sabodala-
Slide 16: Financial Review
02 SECTION 2 FINANCIAL REVIEW
Slide 17: All-in Sustaining Margin
Q1-2021 RESULTS ALL-IN SUSTAINING MARGIN Q1-2021 benefited from higher production and higher gold price THREE MONTHS ENDED THREE MONTHS ENDED INSIGHTS (NOMINAL) ($/oz) 1. Decreased due to higher production at lower cost mines despite higher royalty Mar. 31, Mar. 31, Mar. 31, Mar. 31, Δ/oz Q1-21 rate
Slide 18: Free Cash Flow
Q1-2021 RESULTS FREE CASH FLOW Increase in free cash flow due to higher production and gold prices THREE MONTHS ENDED Mar 31, Dec. 31, Mar. 31, Δ Q1-21 190m In US$ million unless otherwise specified. 2021 2020 2020 vs. Q1-20 ALL-IN SUSTAINING MARGIN Less: Non-sustaining capital 333 (57) 341 (39) 113
Slide 19: Net Debt and Liquidity Analysis
Q1-2021 RESULTS NET DEBT AND LIQUIDITY ANALYSIS Balance sheet remains healthy INSIGHTS Net Cash Variation Analysis › Healthy leverage ratio of 0.16x at quarter-end despite absorbing approximately $332m of Net Debt from ($4m) Teranga. ($105m) $65m › Along with the completion of the Teranga acquisitio
Slide 20: Net Earnings Breakdown
Q1-2021 RESULTS NET EARNINGS BREAKDOWN Adjusted EPS increased by 111% 3 MONTHS ENDED INSIGHTS Mar. 31, Mar. 31, 1. Increase following the integration of SEMAFO and (in $ million) A = Adjustments made for Adjusted Net Earnings 2021 2020 Teranga head office costs. EARNINGS FROM CONTINUING MINE OPERATI
Slide 21: Details by Mine and Project
03 SECTION 3 DETAILS BY MINE AND PROJECT
Slide 22: Production Bridge
Q1-2021 RESULTS PRODUCTION BRIDGE Increased production base, scale and diversification Production Bridge Q1-2020 to Q1-2021 347koz +175koz 25koz 39koz 60koz Q1-2021 vs. Q1-2020 52koz 172koz (6koz) 10koz $890/oz (15koz) 10koz +102% Q1-2021 vs. Q1-2020 Q1-2020 Agbaou Houndé Ity Karma Mana Boungou Sabo
Slide 23: Sabodala-Massawa, Senegal
Q1-2021 RESULTS SABODALA-MASSAWA, SENEGAL Endeavour’s new flagship mine Q1-2021 vs Q4-2020 INSIGHTS › Production slightly decreased, despite a slight increase in the gold recovery rate, due to a decrease in the throughput rate and lower average processed grades. › The AISC increased due to the highe
Slide 24: Sabodala-Massawa Mine, Senegal: Phase 1
Q1-2021 RESULTS SABODALA-MASSAWA MINE, SENEGAL Phase 1 underway to assist in debottlenecking the plant back-end INSIGHTS › Civil works progressing well in Package Areas 1,2,3 and 4. First shipment of structural steel and platework arrived. › The installation of an additional electrowinning cell, a c
Slide 25: Sabodala-Massawa Mine, Senegal
Q1-2021 RESULTS SABODALA-MASSAWA MINE, SENEGAL Phase 1 upgrades tracking on schedule Package 2: Concrete foundations for carbon regeneration kiln Package 3: Concrete foundation for the acid wash and elution columns Package 2/3: Acid wash and elution columns and carbon regeneration kiln Package 4: Ad
Slide 26: Sabodala-Massawa Mine, Senegal: Phase 2 DFS
Q1-2021 RESULTS SABODALA-MASSAWA MINE, SENEGAL DFS for Phase 2 is underway and due for completion in Q4-2021 INSIGHTS › Phase 2 of the expansion will add a new refractory ore plant to process the high grade refractory ore from the Massawa deposit. A DFS for Phase 2 is underway and due for completion
Slide 27: Houndé Mine, Burkina Faso
Q1-2021 RESULTS HOUNDÉ MINE, BURKINA FASO Kari Pump ore blended with increased amounts of fresh ore from other pits Q1-2021 vs Q4-2020 INSIGHTS Production and AISC › Production decreased due to the scheduled increase in waste Production, koz AISC, US$/oz stripping, mining lower grade ore, as well as
Slide 28: Ity Mine, Côte d'Ivoire
Q1-2021 RESULTS ITY MINE, CÔTE D’IVOIRE Processed grades increased due to higher grade ore from the Bakatouo pit Q1-2021 vs Q4-2020 INSIGHTS Production and AISC › Production significantly increased due to the higher Production, koz AISC, US$/oz throughput, higher processed grades, as well as higher
Slide 29: Boungou, Burkina Faso
Q1-2021 RESULTS BOUNGOU, BURKINA FASO Higher grade ore from West Pit brought forward to Q1-2021 Q1-2021 vs Q4-2020 INSIGHTS Production and AISC › Production decreased due to the lower plant throughput rate Production, koz AISC, US$/oz and lower average processed grade, while recovery rate remained f
Slide 30: Mana, Burkina Faso
Q1-2021 RESULTS MANA, BURKINA FASO Better than scheduled mill throughput and grades Q1-2021 vs Q4-2020 INSIGHTS Production and AISC › Production decreased due to the lower average Production, koz AISC, US$/oz processed grades and decreased plant throughput rate. › AISC increased due to higher open p
Slide 31: Wahgnion, Burkina Faso
Q1-2021 RESULTS WAHGNION, BURKINA FASO Higher strip ratio expected over the upcoming quarters Q1-2021 vs Q4-2020 INSIGHTS › Production increased due to a higher average processed grade as recovery rates and throughput remained flat. › The AISC decreased due to the lower sustaining capital, strip rat
Slide 32: Karma Mine, Burkina Faso
Q1-2021 RESULTS KARMA MINE, BURKINA FASO Production decreased due to lower recovery rates and grade Q1-2021 vs Q4-2020 INSIGHTS Production and AISC › Production decreased due to lower recovery rates and Production, koz AISC, US$/oz lower stacked grade, as well as a temporary build up of gold in circ
Slide 33: Conclusion
SECTION 4 CONCLUSION ® ENDEAVOUR MINING
Slide 34: Continued Progress Against Our Key Priorities
CONCLUSION CONTINUED PROGRESS AGAINST OUR KEY PRIORITIES Creating a resilient business that rewards shareholders and is a trusted partner Building a high- Being a Rewarding quality portfolio trusted partner shareholders Strong free cash flow Increase % of nationals in Dividends initiated generation
Slide 35: Upcoming Catalysts
CONCLUSION UPCOMING CATALYSTS Q2 Corporate Capital markets virtual teach-in event ahead of UK listing 2021 Q2 Corporate Premium LSE Listing 2021 Q2 Afema Initial resource estimate 2021 Q3 Sabodala-Massawa Exploration update 2021 Q3 Exploration 5-year exploration strategy 2021 Q4 Sabodala-Massawa Com
Slide 36: Appendix
05 SECTION 5 APPENDIX
Slide 37: Sabodala-Massawa, Senegal
APPENDIX SABODALA-MASSAWA, SENEGAL Drilling focused on targets within the Massawa project area INSIGHTS Sabodala-Massawa Plan Map › A $13.0 million exploration program has been planned for 2021 to define new resources on near-mine targets at Sabodala-Massawa, including CZ, Sofia, Samina, Tina and Ni
Slide 38: Exploration at the Houndé Mine, Burkina Faso
APPENDIX EXPLORATION AT THE HOUNDÉ MINE, BURKINA FASO Follow up on initial results from Q1 and reconnaissance drilling on other targets INSIGHTS Houndé Site Map › An exploration program of up to $7.0 million has been planned for 2021, comprised of approximately 47,000 meters of drilling. › In Q1-202
Slide 39: Exploration at the Ity Mine, Côte d'Ivoire
APPENDIX EXPLORATION AT THE ITY MINE, CÔTE D’IVOIRE Strong focus on exploration at Ity in Q1 Simplified Ity Site Map and Exploration Targets INSIGHTS › An exploration program of $9.0 million is planned for 2021, drilling will focus on adding resources at Le Plaque, Flotouo (Verse Ouest), Daapleu SW,
Slide 40: Boungou, Burkina Faso
APPENDIX BOUNGOU, BURKINA FASO Exploration to ramp up in Q2-2021, focused on near mine targets INSIGHTS Boungou Exploration Map › An exploration program of up to $7.0 million, totalling approximately 85,000 meters of drilling, has been planned for 2021, with the aim of identifying new near- mine res
Slide 41: Mana, Burkina Faso
APPENDIX MANA, BURKINA FASO Drilling at deep Siou Underground to continue during Q2 2021 Mana exploration map INSIGHTS › An exploration program of up to $8.0 million has been planned for 2021, comprised of 44,000 meters of drilling, to focus on mine lease targets including Kona, Siou and Maoula and
Slide 42: Wahgnion, Burkina Faso
APPENDIX WAHGNION, BURKINA FASO Significant exploration potential exists within the permitted mine license INSIGHTS Wahgnion Mine and Permit Area › The 2021 exploration program, with a planned expenditure of approximately $12.0 million, will focus on Nogbele North and Nogbele South deposits, targeti
Slide 43: Agbaou Mine, Côte d'Ivoire
APPENDIX AGBAOU MINE, CÔTE D’IVOIRE Sold on March 1, 2021 Q1-2021 vs Q1-2020 INSIGHTS Production and AISC › Production decreased as consolidated Production, koz AISC, US$/oz production only included two months of production before the sale. › Plant throughput and recovery rates were 27koz 28koz lowe
Slide 44: Net Free Cash Flow
Q1-2021 RESULTS NET FREE CASH FLOW Q1-2021 impacted by significant working capital outflow and higher taxes paid THREE MONTHS ENDED INSIGHTS Q1-2021 VS. Q1-2020 1. Comprised of $20m for the increase in Fetekro Mar. 31, Dec. 31, Mar. 31, Δ Q1-21 ownership and $3m on Kalana. 2021 2020 2020 vs. Q1-20 2
Slide 45: Tax Payments and Capex Spend by Mine
APPENDIX TAX PAYMENTS AND CAPEX SPEND BY MINE Sustaining Capital Non-Sustaining Capital THREE MONTHS ENDED THREE MONTHS ENDED Mar. 31, Dec. 31, Mar. 31, Mar. 31, Dec. 31, Mar. 31, In US$ million unless otherwise specified. 2021 2020 2020 In US$ million unless otherwise specified. 2021 2020 2020 Ity
Slide 46: Working Capital Movements
APPENDIX WORKING CAPITAL MOVEMENTS Working Capital Movement ─ Q1-2021 THREE MONTHS ENDED Mar. 31, Dec. 31, Mar. 31, Q1-2021 comments In US$ million unless otherwise specified. 2021 2020 2020 Outflow mainly due to an increase in VAT receivables at Karma, Houndé, Wahgnion and Mana. VAT received during
Slide 47: Contact Us
@) ENDEAVOUR Lp igntea hp MINING 5 Young Street London a ce United Kingdom T: +44 203 011 2723 CONTACT US T: +44 203 011 2719 OPERATIONS OFFICE investor@endeavourmining.com Hotel Palm Club Follows Croisement Boulevard Latrille et rue du Lycée Technique Abidjan ‘in) y) 08 BP 872 Céte d'Ivoire endeavo