Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (September 2018)
105 slides from Endeavour Mining's investor presentation, September 2018
Slide 1: Corporate Presentation September 2018
CORPORATE PRESENTATION › September 2018
Slide 2: Disclaimer & Forward Looking Statements
CORPORATE PRESENTATION 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 re
Slide 3: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 RESULTS & OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 4: Endeavour Mining Overview
CORPORATE PRESENTATION ENDEAVOUR MINING OVERVIEW A premier African gold producer with a strong presence in West-Africa SENEGAL MALI Tabakoto Mine Karma GAMBIA Mine BURKINA FASO 4,000 GUINEA- Bamako EMPLOYEES WORLDWIDE BISSAU Ouagadougou Kalana GUINEA Project Houndé Mine CÔTE SIERRA LEONE D’IVOIRE 67
Slide 5: Company Profile
CORPORATE PRESENTATION COMPANY PROFILE Shareholder Distribution Ticker TSX:EDV Shares Outstanding as at August. 31st 108 m RETAIL LA MANCHA MANAGEMENT INSTITUTIONAL Share price as at Sep. 4th C$19.24 Europe Market cap as at Sep. 4th US$1.6B Net Debt as at June. 30th US$410m Other North America 5% 30
Slide 6: Investment Highlights
CORPORATE PRESENTATION INVESTMENT HIGHLIGHTS Exposure to near & long-term growth potential, in addition to current production Daoukro Cluster (Ivory Coast) Floleu Kofi Trend (Ivory Coast – Ity trend) (Mali) Bondoukou Cluster (Ivory Coast) Hounde (completed) Hounde Sissedougou JV Siguiri Kalana (Ivor
Slide 7: Production and AISC Profile
CORPORATE PRESENTATION PRODUCTION AND AISC PROFILE On track to achieving strategic objectives STRATEGIC OBJECTIVES $1,317/oz For 2019 +900koz +900koz 800-900koz 10+ year $1,010/oz $922/oz $869/oz 670-720koz 800-900koz Mine life 663koz $869/oz 584koz $840-890/oz 517koz 462koz ≤800$/oz 317koz All-in S
Slide 8: Building a Premier African Gold Producer
CORPORATE PRESENTATION BUILDING A PREMIER AFRICAN GOLD PRODUCER 4 Strategic Levers to Achieve Objectives STRATEGIC OBJECTIVE STRATEGIC LEVERS For 2019 10+ year Mine life ≤800$/oz All-in Sustaining Cost +800koz Annual production 8
Slide 9: Operational Excellence
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Hands-on Management Model With Teams Close to Operations London Based Sebastien de Montessus CEO & Director SENEGAL MALI 2h40 Vincent Benoit Tabakoto Mine Karma GAMBIA Mine EVP CFO & Corporate 3h10 Development BURKINA FASO GUINEA- Houndé Morgan Carroll
Slide 10: Strong Safety Record
CORPORATE PRESENTATION STRONG SAFETY RECORD 1 Our safety record remained better than the industry average in H1-2018 Lost Time Injury Frequency Rate 0.80 0 Q2-2018 Lost Time Injury Frequency Rate 0.40 0.29 0.22 0.00 0.00 0.00 +3.1m Peer Group FY2016 FY2017 H1 2018 Houndé Agbaou Ity Man Hours with no
Slide 11: Operational Excellence: Track Record of Meeting Guidance
CORPORATE PRESENTATION OPERATIONAL EXCELLENCE 1 Proven track record of meeting guidance Production, on a 100% basis in koz All-in Sustaining Costs, in $/oz Guidance Guidance 670-720 1,010 663 584 466 517 922 884 840-890 869 2014 2015 2016 2017 2018 Guidance 2014 2015 2016 2017 2018 Guidance Prelimin
Slide 12: Project Development
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 HOUNDÉ Adding +600koz at an average AISC of <$700/oz over the next 3 years Houndé +235koz at AISC (Completed) of <$650/oz +235koz at AISC ITY CIL Ity CIL Construction (Underway) of <$500/oz KALANA DFS Optimization +150koz at AISC Construction (Underway) o
Slide 13: Houndé New Flagship Low Cost Mine
CORPORATE PRESENTATION 2 PROJECT DEVELOPMENT Houndé is Endeavour’s new flagship low cost mine Essakane (IAMGOLD) Inata (Avocet) Taparko METRIC H1 ACHIEVEMENT STUDY Karma (Nordgold) COMPARISON Bissa Hill (Nordgold) (Life of mine average) Natougou MINING Annualized rate of 39Mt +22% Mana Burkina Faso
Slide 14: Ity CIL Project Construction Launched
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Ity CIL Project construction launched in September 2017 Long-life Low Cost Project › Long 14-year reserves mine life › Low AISC of $494/oz over first 5 years › Solid production of 235kozpa over first 5 years Production Profile Production AISC Robust Proje
Slide 15: Kalana Project Optimization Potential
CORPORATE PRESENTATION PROJECT DEVELOPMENT 2 Kalana is a high-quality project with significant optimization potential Feasibility-stage project › 1.2Mtpa CIL plant › Single open-pit reserve of 1.96Moz at Mali 2.8 g/t › 18-year mine life Tabakoto Mine › Low AISC cost operation with $730/oz Bamako Kal
Slide 16: Unlock Exploration Value
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Amongst Largest and Most Promising Portfolios in West Africa 10,090 km² EXPLORATION TENEMENTS +200 EXPLORATION TARGETS 14.9Moz 10-15Moz 5-YEAR DISCOVERY M&I RESOURCES TARGET 16
Slide 17: Screening and Ranking Methodology
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Screening And Ranking Methodology Exhaustive screening of all Strategic >200 potential targets Prioritization CONSERVATIVE First filtering APPROACH SIMILAR TO THAT USED IN Exploration budget OIL & GAS INDUSTRY required per target to 130+ target scree
Slide 18: Starting to Deliver Against 5-year Strategy
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Starting To Deliver Against Our 5-year Strategy 4.0-6.0Moz 4.0-6.0Moz 10-15Moz 5-year Indicated 2.5-3.5Moz Resource Discovery Target 1.5-2.5Moz 0.5-1.5Moz 0.5-1.5Moz 1.5Moz 0.5-1.0Moz Discovered Greater Ity Houndé Tabakoto Agbaou Karma Côte d’Ivoire
Slide 19: Low Discovery Costs
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 Exploration Strategic Review Output: Low Discovery Costs Exploration budget Average discovery cost $55m $35-40m $45m Annual budget $30m $25m $25/oz $15m $10m <$15/oz $15/oz $15/oz Anticipated average $11/oz $20/oz $13/oz discovery costs Greater Ity H
Slide 20: H1 Exploration Activities
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE 3 H1 Exploration Activities INSIGHTS EXPLORATION EXPENDITURE FOR H1-2018 › $16.1m spent in Q2, totaling $36m for H1 Other › Over 292,700 meters drilled across the group in H1 greenfield ‒ At Houndé: 121,000m drilled on the recently $5.0m announced 3 di
Slide 21: Increase Overall Quality of our Portfolio
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Increase Overall Quality of our Portfolio › Endeavour has increased the quality of its PORTFOLIO MANAGEMENT portfolio by developing a high quality project pipeline while actively managing the AISC, $/oz portfolio to divest non-core assets
Slide 22: Significant Funding Sources to Fund Growth
CORPORATE PRESENTATION PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Significant funding sources to fund growth Circa $30m Fully funded without mine cash flow Up to $25m $339m $60m Ity capex (cash outflow and equipment Undrawn financing remaining ) RCF $260m $221m Cash $79m Liquidity Sources Tabakoto Nzema
Slide 23: Upcoming Catalysts
CORPORATE PRESENTATION UPCOMING CATALYSTS ON TRACK TO MEET GUIDANCE › Guidance with Tabakoto: 670-720koz at $840-890/oz Immediate › Guidance without Tabakoto: 555-590koz at $760-810/oz Cashflow from Production › ITY CIL PROJECT: Construction tracking on-budget and on schedule for first gold pour by
Slide 24: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 RESULTS & OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 25: 2018 Guidance Increased with Houndé
CORPORATE PRESENTATION 2018 GUIDANCE INCREASED WITH HOUNDE Continued reduction in AISC expected INSIGHTS Production Guidance › Production from continuing operations (All amounts in koz, on a 100% basis) 2018 FULL-YEAR GUIDANCE is expected to increase to 670-720koz in Agbaou 140 - 150 2018 Ity 60 - 6
Slide 26: 2018 Guidance Continued
CORPORATE PRESENTATION 2018 GUIDANCE Continued INSIGHTS Capital Expenditure Guidance, $m SUSTAINING NON-SUSTAINING GROWTH › Growth projects amount to $200 million (in $m) CAPITAL CAPITAL PROJECTS of the sustaining and non-sustaining Agbaou 17 2 - Tabakoto 37 - - capital allocations for 2018, mainly
Slide 27: H1-2018 Performance In-Line with Guidance
CORPORATE PRESENTATION H1-2018 PERFORMANCE IN-LINE WITH GUIDANCE On-track to meet 2018 guidance Q2 Q1 BELOW GROUP LTIFR1 INDUSTRY 0.00 0.46 0.80 Industry Average GROUP PRODUCTION H1 ON-TRACK INCLUDING TABAKOTO 358koz 670-720koz Guidance GROUP $840/oz $890/oz AISC INCLUDING H1 ON-TRACK TABAKOTO $825/
Slide 28: All-in Margin Breakdown
CORPORATE PRESENTATION ALL-IN MARGIN BREAKDOWN All-in margin increased by 81% due to successful start-up of Houndé HALF YEAR ENDED, Q2-2018 INSIGHTS JUN. 30, JUN. 30, 1. Gold sales up mainly due to the successful (in US$ million) 2018 2017 start-up of Houndé. GOLD SOLD FROM CONTINUING OPERATIONS, ko
Slide 29: Growth Funding Sources
CORPORATE PRESENTATION GROWTH FUNDING SOURCES Cash flow from operations and RCF used to fund growth HALF YEAR ENDED, JUN. 30, JUN. 30, Q2-18 INSIGHTS (in US$ million) 2018 2017 1. The working capital variation outflow ALL-IN MARGIN FROM ALL OPERATIONS 116 64 increased as a result of: (55) (23) ‒ an
Slide 30: Balance Sheet Management
CORPORATE PRESENTATION BALANCE SHEET MANAGEMENT Diversified debt sources with lower interest cost and increased maturity SITUATION AT END OF 2016 CURRENT SITUATION › DEBT SOURCE: › DEBT SOURCES: $350m RCF ($140m drawn) Diversified across a $350m RCF and $330m convertible notes › INTEREST RATE: › RCF
Slide 31: Convertible Bond
CORPORATE PRESENTATION CONVERTIBLE BOND Rationale and tradeoffs 1 REDUCES ITS OVERALL FINANCING COSTS AND DE-RISKS LIBOR EXPOSURE Annual saving based on $330m convertible compared LIBOR curve to $330m drawn on RCF at various Libor rates $25m 2.70% $21m July 5 2.34% $18m 2.15% $15m January 30 - 1.77%
Slide 32: Net Earnings Breakdown
CORPORATE PRESENTATION NET EARNINGS BREAKDOWN Adjusted EPS of $0.31 HALF YEAR ENDED A = Adjustments made JUN. 30, JUN. 30, INSIGHTS (in US$ million) 2018 2017 GOLD REVENUE 388 205 › H1-2018 adjusted net earnings Operating expenses (176) (106) per share from continuing Depreciation and depletion (83)
Slide 33: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 RESULTS & OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 34: Houndé Mine, Burkina Faso: Overview
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 37.3Mt @ 2.1 g/t for 2.459Moz (incl. of Reserves) Inferred: 3.2Mt @ 2.6 g/t for 0.275Moz Ouagadougou Reserves 30.2Mt @ 2.0 g/t for 1.957Moz Houndé Mine
Slide 35: Houndé Mine: Strong Contribution to Group Performance
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Strong contribution to group performance Q2-18 vs Q1-18 INSIGHTS: Production and AISC › Production decreased mainly due to an expected Production, koz AISC, US$/oz decrease in the average head grade fed to the plant. However, the operation continued t
Slide 36: Houndé Project: Significant Exploration Potential
CORPORATE PRESENTATION HOUNDÉ PROJECT, BURKINA FASO Significant exploration potential highlighted by 2017 drilling INSIGHTS › Following a two year period of no exploration drilling, activities resumed in 2017 2.5-3.5Moz › Focused on drilling 5-YEAR DISCOVERY high grade targets TARGET › Work performe
Slide 37: Houndé Mine: Strong Exploration Focus in 2018
CORPORATE PRESENTATION HOUNDÉ MINE, BURKINA FASO Strong exploration focus in 2018 on high-grade targets Houndé exploration targets and gold-in-soil anomalies map INSIGHTS › Houndé is the strongest exploration focus for Endeavour in 2018 with more than 121,000 meters already drilled in H1-2018, mainl
Slide 38: Kari Pump Exploration Results
CORPORATE PRESENTATION KARI PUMP EXPLORATION RESULTS Drill results confirmed high-grade mineralization A A’ 38
Slide 39: Kari Pump Exploration Results
CORPORATE PRESENTATION KARI PUMP EXPLORATION RESULTS Isosurfaces (Leapfrog) and typical thickness/grade per area 0.5ppm modelisation + Composites >2m and >1ppm (1m dilution) Looking North, 30 degree plunge Where insufficient drill hole spacing (200m x 50m) and the geological model still preliminary
Slide 40: Kari Pump Long-Section
CORPORATE PRESENTATION KARI PUMP EXPLORATION RESULTS Kari Pump Long-Section 1 40
Slide 41: Kari Pump Long-Section
CORPORATE PRESENTATION KARI PUMP EXPLORATION RESULTS Kari Pump Long-Section 2 41
Slide 42: Agbaou Mine, Côte d'Ivoire: Overview
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 10.3Mt @ 2.4 g/t for 0.804Moz (incl. of Reserves) Inferred: 1.0Mt @ 1.7g/t for 0.054Moz Côte d’Ivoire Reserves 8.9Mt @ 2.3g/t for 0.668Moz Ity Mine Pr
Slide 43: Agbaou Mine: Production Expected to Increase
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Production is expected to increase in the latter portion of the year Q2-18 vs Q1-18 INSIGHTS: Production and AISC › Production slightly increased due to the higher Production, koz AISC, US$/oz grades of material milled as low-grade stockpiles continu
Slide 44: Agbaou Mine: Mineralization Confirmed at Extensions
CORPORATE PRESENTATION AGBAOU MINE, CÔTE D’IVOIRE Mineralization was confirmed at the extensions of several deposits Agbaou Site Map INSIGHTS › In H1-2018 more than 26,000 meters were drilled with the majority occurring in Q2. › A total of more than 20,000 meters, representing most of the drilling,
Slide 45: Agbaou Mine Exploration
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Target of finding between 0.5 to 1.5Moz AREAS OF FOCUS: Agbaou Site Map › Main 2017 priority > 50 ppb was to test area and to generate targets and prioritize for the 0.5-1.5Moz upcoming campaigns 5-YEAR DISCOVERY › Key Areas targeted TARGET are: 1. Agba
Slide 46: Intercepted Mineralization 150m Under North Pit
CORPORATE PRESENTATION AGBAOU MINE EXPLORATION Intercepted mineralization 150m under the North pit in 2017 Section - AGBDD2141 2m@1.38/t Au 2m@2g/t Au 4m@2g/t Au (incl. 1m@5.23g/t) 2m@5g/t Au 4m@17g/t Au (incl. 2m@26.33g/t) 4m@3g/t Au (incl. 2m@4,70g/t) 3m@2.34g/t Au (incl. 1m@6.26g/t) 3m@2.67g/t Au
Slide 47: Tabakoto Mine, Mali: Overview
CORPORATE PRESENTATION TABAKOTO MINE, MALI QUICK FACTS (ON 100% BASIS) Overview Ownership 80-90% Endeavour depending on pit, remainder government of Mali Resources M&I: 19.9Mt @ 3.0 g/t for 1.925Moz (incl. of Reserves) Inferred: 7.4Mt @ 3.4g/t for 0.810Moz Reserves 4.8Mt @ 3.4g/t for 0.517Moz Mali P
Slide 48: Tabakoto Mine: H2 Expected to Benefit
CORPORATE PRESENTATION TABAKOTO MINE, MALI H2 expected to benefit from increased underground equipment availability Q2-18 VS Q1-18 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production decreased mainly due to lower average head grades and slightly lower throughput and recovery rate
Slide 49: Tabakoto Mine: Exploration Focused Underground
CORPORATE PRESENTATION TABAKOTO MINE, MALI Exploration mainly focused on underground exploration INSIGHTS Tabakoto Site Map › During H1-2018 nearly 5,000 meters were drilled on open pit targets while more than 13,000 meters were drilled in the underground mines. › For H2-2018, a further 12,000 meter
Slide 50: Ity Heap Leach Mine, Côte d'Ivoire: Overview
CORPORATE PRESENTATION ITY HEAP LEACH MINE, CÔTE D’IVOIRE Overview QUICK FACTS (ON 100% BASIS) Ownership 80% EDV, 10% Côte d’Ivoire, 10% private Resources (HL + CIL) M&I: 73.9Mt @ 1.6 g/t for 3.695Moz (incl. of Reserves) Inferred: 18.7Mt @ 1.3 g/t for 0.785Moz Côte d’Ivoire Reserves (HL+CIL) 58.9Mt
Slide 51: Ity Heap Leach Mine: Production Increased
CORPORATE PRESENTATION ITY HEAP LEACH MINE, CÔTE D’IVOIRE Production increased due to higher Bakatouo grades stacked Q2-18 vs Q1-18 INSIGHTS: › Production increased significantly due to higher Production and AISC grades stacked as mining activities at Bakatouo has Production, koz AISC, US$/oz produc
Slide 52: Ity CIL Project: Replace Heap Leach with CIL
CORPORATE PRESENTATION ITY CIL PROJECT, CÔTE D’IVOIRE Increased resource generated potential to replace heap leach with CIL KEY CHANGES OF ADVANTAGE INCLUDE: SHIFTING TO CIL PLANT: Heap Leaching Process ›› Resource increase generated potential to replace the current heap leach facility to CIL plant
Slide 53: Ity CIL: Improvement Over 2016 Feasibility Study
CORPORATE PRESENTATION ITY CIL PROJECT, CÔTE D’IVOIRE Significant improvement over 2016 Feasibility Study 2017 2016 VARIANCE OPTIMIZATION FEASIBILITY KEY KEYCHANGES CHANGESINCLUDE: INCLUDE: STUDY STUDY (OS VS. FS) LIFE OF MINE PRODUCTION ›› Indicated resource inventory Strip ratio, w:o 1.9 2.1 (10%)
Slide 54: Ity CIL: Improved Production Profile
CORPORATE PRESENTATION ITY CIL PROJECT, CÔTE D’IVOIRE Significantly improved production profile Production Profile OS production FS production AISC for OS 250koz 250koz 238koz 224koz Exploration potential 235koz 213koz average production 201koz 190koz over first 5 years 162koz 159koz 151koz $484/oz
Slide 55: Ity CIL: IRR of +20% Even at $1,000/oz
CORPORATE PRESENTATION ITY CIL PROJECT, CÔTE D’IVOIRE IRR of +20% even at $1,000/oz Cumulative after-tax free cash flow, US$m NPV5% / IRR $1,400m 14-YEAR MINE LIFE 22-MONTH PAYBACK PERIOD $1,400/oz $920m / 50% $1,200m $1,250/oz $1,000m $710m / 40% $800m $600m $1,000/oz $343m / 23% $400m $200m $0m -$
Slide 56: Ity CIL Project Construction
CORPORATE PRESENTATION ITY CIL PROJECT CONSTRUCTION Construction is progressing on-time and on-budget Process Plant – Northern Perspective Process Plant- Milling Structural Steel Primary Crusher Haul Bridge – Northern Perspective 56
Slide 57: Ity CIL Construction: Over 50% Complete
CORPORATE PRESENTATION ITY CIL PROJECT CONSTRUCTION Overall project completion stands at over 50%, tracking in-line with schedule 2017 2018 2019 Activity Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EARTHWORKS & TSF Camp earthworks Bridge crossing TSF complete complete complete CAMP CONSTRUCTION Camp started Admin bu
Slide 58: Ity CIL Construction: Achievements to Date
CORPORATE PRESENTATION ITY CIL PROJECT CONSTRUCTION Overall project completion stands at over 50%, tracking well against schedule ACHIEVEMENTS TO DATE Capex spend and remaining cash outflow › More than 3.1 million man-hours worked with zero loss-time injuries. › Over 85% of the total capital cost of
Slide 59: Ity CIL Project: Life of Mine Plan
CORPORATE PRESENTATION ITY CIL PROJECT, CÔTE D’IVOIRE Life of Mine Plan LOM Total / Item Unit Average Pre-prod 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mining Schedule Total Material Moved kt 166,752 15,555 16,000 16,000 16,000 16,000 16,000 13,770 12,661 15,908 13,623 10,143 5,092 0 0 0 Total Waste Move
Slide 60: Ity Mine: 1.5 Moz Added
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Already 1.5 Moz added between November 2016 and November 2017 M&I Resource Evolution 4-6Moz Discovery Target 1.5Moz added 2.2Moz 3.7Moz 2016 5-Year Discovery 2017 M&I Resource Target M&I Resource (Base for FS) (published Nov. 2016) (Base for OS) 60
Slide 61: Ity Mine: Focus on La Plaque Discovery
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Main focus is on the La Plaque discovery Ity Mine Drilling Targets INSIGHTS › A $3 million exploration campaign has been planned in 2018 to further explore near-mill targets (including testing of extensions at the Mont Ity, Bakatouo, Daapleu, and Le Pla
Slide 62: Le Plaque Discovery: Multiple High Grade Trends
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Le Plaque Discovery - Multiple High Grade Trends Discovered INSIGHTS ‒ Le Plaque target has the potential to be the next sizeable discovery following the recent Daapleu and Bakaotuo discoveries ‒ Only the central portion, representing about 25% of the L
Slide 63: Endeavour Controls the Full Ity Birimian Belt
CORPORATE PRESENTATION ITY MINE, CÔTE D’IVOIRE Endeavour controls the full Ity Birimian belt 4-6Moz 5-YEAR DISCOVERY TARGET <$15/oz AVERAGE 5-YEAR DISCOVERY COST Targeting to discover between 4 to 6 Moz with average grade between 2.0 and 3.5 g/t Au. The potential quantity of ounces is conceptual in
Slide 64: Greater Ity Regional Gold in Soil Anomalies
CORPORATE PRESENTATION ITY TREND, CÔTE D’IVOIRE Greater Ity regional gold in soil (> 100 ppb) anomalies PR609 East Cavally Several Targets Birimian meta sediments and green belt Gnamapleu Granite-Gneiss PR558 Le Plaque Area Several Targets No Geochemical data at all GUEYA area No Exploration Several
Slide 65: Toulepleu–Gueya Target
CORPORATE PRESENTATION ITY TREND, CÔTE D’IVOIRE Toulepleu– Gueya Target Regolith mapping, soil sampling and calibration DD holes 65
Slide 66: Toulepleu - Mont Bâ Target 2017 Campaign
CORPORATE PRESENTATION ITY TREND, CÔTE D’IVOIRE Toulepleu - Mont Bâ Target 2017 campaign confirmed mineralization Regolith mapping, soil sampling and calibration DD holes HOLE ID AZIMUTH DIP DEPTH MB17-001 45 50 100.53 MB17-002 45 50 103.58 MB17-003 45 50 100.68 MB17-004 45 50 100.58 MB17-005 45 50
Slide 67: Karma Mine, Burkina Faso: Overview
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Overview QUICK FACTS (ON 100% BASIS) Ownership 90% EDV, 10% Burkina Faso Karma Mine Resources M&I: 81.8Mt @ 1.1 g/t for 2.871Moz (incl. of Reserves) Inferred: 18.7Mt @ 1.3 g/t for 0.785Moz Ouagadougou Reserves 34.6Mt @ 0.9g/t for 0.986Moz Houndé Mine P
Slide 68: Karma Mine: Stronger H2-2018 Expected
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Stronger H2-2018 expected following end of GG2 transitional ore in Q2 Q2-18 vs Q1-18 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production decreased due to lower stacked tonnage despite an increase in grades and 28koz recovery rate. 2
Slide 69: Karma Mine: Rambo West Resources Expected
CORPORATE PRESENTATION KARMA MINE, BURKINA FASO Rambo West indicated resources expected to be delineated by year-end Karma Site Map INSIGHTS › In H1-2018, more than 23,000 meters were drilled, mainly focused on the Eastern extension of the North Kao deposit, on Yabonsgo and on Rambo West where indic
Slide 70: Kalana Project, Mali: Overview
CORPORATE PRESENTATION KALANA PROJECT, MALI Overview QUICK FACTS (ON 100% BASIS) Ownership 80% EDV, 20% government of Mali Mali Status OFS stage Resources M&I: 23.7Mt @ 4.1g/t for 3.100Moz (incl. of Reserves) Inferred: 1.7Mt @ 4.4g/t for 0.240Moz Tabakoto Mine Bamako Reserves 21.7Mt @ 2.8g/t for 1.9
Slide 71: Kalana is a High-Quality Project
CORPORATE PRESENTATION KALANA PROJECT, MALI Kalana is a high-quality project GENERAL INFORMATION › Feasibility-stage project Ownership 80% Avnel; 20% Mali government M&I Resources (inclusive of reserves) 3.10Moz @ 4.07g/t › 1.2Mtpa CIL plant Reserves 1.96Moz @ 2.80g/t › Single open-pit reserve of 1.
Slide 72: Kalana: Potential to Increase Production to c.150kozpa
CORPORATE PRESENTATION KALANA PROJECT, MALI Kalana has potential to increase annual production to c.150kozpa AVNEL TRANSACTION CLOSED IN SEPTEMBER Reserve life of mine plan Production AISC › Integration progress completed shortly after 203koz › Study optimization process launched and expected to be
Slide 73: Kalana: Updated Resource Expected Q3-2018
CORPORATE PRESENTATION KALANA PROJECT, MALI Updated resource expected in Q3-2018 Several Licenses under negociation With Private INSIGHTS owners › An intensive exploration program, consisting of 48,000 meters of drilling, was finalized in early Q2-2018 on the Kalana and Kalanako deposits. › At the K
Slide 74: Kalana: Acquisition Accretive on NAV Basis
CORPORATE PRESENTATION KALANA PROJECT, MALI Acquisition meets equity hurdle rates and is accretive on an NAV basis NAV per share accretion › Due diligence demonstrates that the acquisition meets minimum Avnel NAV Endeavour NAV hurdle rate returns when Average NAV of US$253m 2,061 Average NAV of US$1
Slide 75: Greenfield Exploration: JV With Randgold
CORPORATE PRESENTATION GREENFIELD EXPLORATION, CÔTE D’IVOIRE JV With Randgold on Sissedougou / Mankono JV WITH RANDGOLD › Drill results suggested the presence of an 800-metre mineralized structure at Sissedougou with best drill results of : ‒ 34.6 m @ 2.08 g/t Au at 74.6 m, including 1.0 m @ 31.52 g
Slide 76: Greenfield Exploration, Burkina Faso: Liguidi Area
CORPORATE PRESENTATION GREENFIELD EXPLORATION, BURKINA FASO Liguidi Area 76
Slide 77: Greenfield Exploration, Niger: New Licenses
CORPORATE PRESENTATION GREENFIELD EXPLORATION, NIGER New and Well Located Exploration Licenses INSIGHTS › Full review of country prospectivity conducted in 2016 › Highly prospective area of Nassile and Dar-Guiti Exploration Permit applied for and obtained in 2017 › Total surface area: 695 km² › Init
Slide 78: Greenfield Exploration, Guinea: Siguiri Basin
CORPORATE PRESENTATION GREENFIELD EXPLORATION, GUINEA New and Well Located Licenses in Siguiri Basin GUINEA: 78
Slide 79: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 RESULTS & OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 80: Equity Markets Strongly Support West Africa
CORPORATE PRESENTATION EQUITY MARKETS STRONGLY SUPPORT WEST AFRICA Amongst top ranking region for equity proceeds over past 10 years Equity raises for gold companies over past 10 years For the period between 2006-2016 10 $9.82B 8 +$ 6 billion raised for West Africa $6.35B $5.89B US$ Billions 6 4 $3.
Slide 81: Significant Exploration Efforts in West Africa
CORPORATE PRESENTATION SIGNIFICANT EXPLORATION EFFORTS IN WEST-AFRICA Amongst top ranking region for exploration activities in 2017 2017 Exploration Budget ($M) 677 634 +$5.0B Spent in West Africa over last 10 years 385 363 247 176 175 173 137 123 113 110 100 77 75 74 71 47 10% of global budget is U
Slide 82: More Exploration Expenditures in Smaller Region
CORPORATE PRESENTATION SIGNIFICANT EXPLORATION EFFORTS IN WEST-AFRICA More exploration expenditures in a region that is 5x smaller Land mass compared to exploration spend 900 800 700 2017 Exploration Budget ($M) Canada Australia 600 500 400 West More spending, yet 5x smaller land mass Africa USA 300
Slide 83: Significant West Africa Exploration Success
CORPORATE PRESENTATION SIGNIFICANT WEST-AFRICA EXPLORATION SUCCESS Top ranking region for discoveries over past 10 years Discoveries by area For the period between 2006-2016 +79Moz 79Moz Discovered over past 10 years in West Africa 50Moz 42Moz 33Moz No.1 27Moz 27Moz 23Moz 22Moz 20Moz 18Moz 16Moz 16M
Slide 84: Strong Exploration Potential
CORPORATE PRESENTATION STRONG EXPLORATION POTENTIAL The Birimian greenstone belt ranks amongst the world’s most prospective areas West African Geology - Birimian Greenstone Belt 84
Slide 85: Burkina Faso & Côte d'Ivoire Are Under-Explored
CORPORATE PRESENTATION BURKINA FASO & COTE D’IVOIRE ARE UNDER-EXPLORED Host ~60% of belt yet represents ~35% of discoveries & ~25% of production % Birimian Greenstone Belt by Country compared its discoveries and current production Bubble size represents 2016 production Ghana 70Moz Mali Total Discove
Slide 86: Burkina Faso & Côte d'Ivoire Are Fast Growing
CORPORATE PRESENTATION BURKINA FASO & COTE D’IVOIRE ARE FAST GROWING Represents half of the regions exploration expenditures West-African exploration expenditures by country 2017 exploration expenditures Cote d’Ivoire 20% ~50% Burkina Faso of West-African exploration 29% expenditures Ghana Other Cou
Slide 87: Strong Production Growth in West Africa
CORPORATE PRESENTATION STRONG PRODUCTION GROWTH IN WEST-AFRICA Has quickly become a top producing gold region 2016 Production Gold by Country 15Moz +81% West-African production growth over past 15 9Moz 9Moz years 8Moz 7Moz 5Moz 5Moz 5Moz 4Moz 3Moz 3Moz 3Moz 4th largest gold producing China Mexico Un
Slide 88: Strong Production Increase Over Past 5 Years
CORPORATE PRESENTATION BURKINA FASO & COTE D’IVOIRE ARE FAST GROWING Strong production increase over past 5 years West-African 5-year production growth by country For the period 2012-2016 +162% +0.5Moz ~25% of West-African production is from Burkina Faso & Cote d’Ivoire +1Moz +54% +0.5Moz +35% +0.3M
Slide 89: Region Has Attracted Large Gold Miners
CORPORATE PRESENTATION THE REGION HAS ATTRACTED LARGE GOLD MINERS Strong collective track-record of mining in the region 2017 Gold Production By Company For only West & Central African production 1,200koz 1,050koz >900koz 900koz 750koz 670-720koz 663koz 600koz 450koz 300koz 150koz 0koz Kinross Nordg
Slide 90: EDV Emerging as Pure West-African Mid-Tier Producer
CORPORATE PRESENTATION THE REGION HAS ATTRACTED LARGE GLOBAL GOLD MINERS EDV is emerging as the only pure multi-asset West-African mid-tier producer Operating Mines # Countries of operations # West Rest of Rest of the West Rest of Rest of the Africa Africa World Africa Africa World Geographically fo
Slide 91: West Africa Operates as an Economic Union
CORPORATE PRESENTATION WEST AFRICA OPERATES AS AN ECONOMIC UNION Single currency with economies becoming more integrated Countries using West African CFA INSIGHTS › West Africa acts as an economic zone (WAEMU) › Common central bank for 8 States › Common currency which is pegged to the Euro › Fiscal
Slide 92: West Africa Mining Codes Fairly Aligned
CORPORATE PRESENTATION WEST AFRICA MINING CODES TEND TO BE FAIRLY ALIGNED INSIGHTS Corporate Income Tax and Royalties › Transfer pricing regulations recently Country / Region Corporate Tax Mining Royalties established in the jurisdiction Burkina Faso Up to 27.5% Up to 5% › OECD principles associated
Slide 93: Policy Perception Index by Fraser Institute
CORPORATE PRESENTATION POLICY PERCEPTION INDEX BY FRASER INSTITUTE West Africa ranks higher than other developing regions Policy Perception Index Examines the legal system, regulations, infrastructure, etc. 100 81 79 78 80 74 Fraser Institute PPI Score 62 60 54 53 52 51 40 20 0 Canada USA Europe Aus
Slide 94: Table of Contents
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 RESULTS & OUTLOOK 3 DETAILS BY MINE AND PROJECT 4 WEST AFRICA INSIGHTS 5 APPENDIX
Slide 95: Analyst Coverage
CORPORATE PRESENTATION ANALYST COVERAGE Firm Analyst Phone Email Berenberg Michael Stoner ✆ +44 20 3465 2643 ✉ michael.stoner@berenberg.com BMO Andrew Breichmanas ✆ +44 20 7246 5430 ✉ andrew.breichmanas@bmo.com Canaccord Genuity Rahul Paul ✆ +1 416 869 7289 ✉ rpaul@canaccordgenuity.com Clarus Securi
Slide 96: Board Members
CORPORATE PRESENTATION BOARD MEMBERS Michael BECKETT Ian COCKERILL, Olivier COLOM, Livia MAHLER, Chairman, Non-executive Director Non-executive Director Non-executive Director Non-executive Director Jim ASKEW, Wayne MCMANUS, Sébastien de MONTESSUS, Naguib SAWIRIS, Non-executive Director Non-executiv
Slide 97: Experienced Team in Place
CORPORATE PRESENTATION EXPERIENCED TEAM IN PLACE Near-mine and Regional Teams Abidjan based INSIGHTS EVP Exploration & Growth › Strong knowledge of CI Government West African Birimian Expert Geologist Relations Advisor belts NI 43-101 Compliance Legal Advisor › Senior staff from BRGM, Randgold, Iamg
Slide 98: Selection, Ranking and Risk Evaluation of Exploration Targets
CORPORATE PRESENTATION UNLOCK EXPLORATION VALUE Selection, Ranking and Risk Evaluation of Exploration targets › All targets referenced and classified according to : ‒ Current state of project knowledge (from grassroot to development) ‒ Quality of supporting data (drilling, available nearby analogs,
Slide 99: Gold Revenue Protection Program
CORPORATE PRESENTATION GOLD REVENUE PROTECTION PROGRAM Increased certainty of the FCF during the construction period of the Ity CIL Gold Revenue Protection Program : Gold Option Collar Strategy › Gold Option Contracts aim to increase Gold price in US$/oz the certainty of the free cash flow 1,600 Ups
Slide 100: Production and Cost Details by Mine by Quarter
APPENDIX PRODUCTION AND COST DETAILS BY MINE BY QUARTER AGBAOU TABAKOTO ITY KARMA HOUNDÉ (on a 100% basis) Unit Q2-2018 Q1-2018 Q4-2017 Q2-2018 Q1-2018 Q4-2017 Q2-2018 Q1-2018 Q4-2017 Q2-2018 Q1-2018 Q4-2017 Q2-2018 Q1-2018 Q4-2017 Physicals Total tonnes mined – OP1 000t 7,801 7,952 6,952 1,296 1,84
Slide 101: Production and Cost Details by Mine on Half Year Basis
APPENDIX PRODUCTION AND COST DETAILS BY MINE ON HALF YEAR BASIS AGBAOU TABAKOTO ITY KARMA HOUNDÉ (on a 100% basis) Unit H1-2018 H1-2017 H1-2018 H1-2017 H1-2018 H1-2017 H1-2018 H1-2017 H1-2018 H1-2017 Physicals Total tonnes mined – OP1 000t 15,753 13,308 3,136 3,438 2,667 3,777 8,750 7,959 19,670 - T
Slide 102: Consolidated Statement of Financial Position
CORPORATE PRESENTATION 102 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 102
Slide 103: Consolidated Statement of Comprehensive Earnings/Loss
CORPORATE PRESENTATION 103 CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS/LOSS 103
Slide 104: Cash Flow Statement
CORPORATE PRESENTATION 104 CASH FLOW STATEMENT 104
Slide 105: Reserves and Resources
CORPORATE PRESENTATION RESERVES AND RESOURCES As of December 31, 2017 Tabakoto Mine Group Consolidated Total Resources shown inclusive of Reserves. On a 100% basis Tonnage (Mt) Grade (Au g/t) Content (Au koz) On a 100% basis Proven Reserves 2.4 3.32 251 Resources shown Tonnage Grade Content Probable
Endeavour Mining — Investor Presentation (September 2018) on 6ix