Slide 1: Q2 Operational & Financial Results
Q1 Q2 OPERATIONAL & FINANCIAL RESULTS August 5, 2020 TSX:EDV
Slide 2: Disclaimer & Forward Looking Statements
DISCLAIMER & FORWARD LOOKING STATEMENTS Cash cost per ounce and all in sustaining cash cost per ounce are non GAAP regulations, and political and economic developments in countries in which performance measures with no standard meaning under IFRS This Endeavour operates Although Endeavour has attemp
Slide 3: Speakers
SPEAKERS SÉBASTIEN DE MARK HENRI DE PATRICK MONTESSUS MORCOMBE JOUX BOUISSET CEO & Director COO Interim CFO EVP Exploration EVP People, and Growth Culture & IT
Slide 4: Table of Contents
TABLE OF CONTENTS 1 Q2 & H1-2020 IN REVIEW 2 FINANCIAL SUMMARY 3 DETAILS BY MINE AND PROJECT 4 CONCLUSION 5 APPENDIX Note : All amounts are in US$, except where indicated, and may differ from the MD&A due to rounding
Slide 5: Q2 & H1-2020 in Review
01 SECTION 1 Q2 & H1-2020 IN REVIEW
Slide 6: H1-2020 Activities Recap
Q2-2020 RESULTS H1-2020 ACTIVITIES RECAP Strong Continued Achievements Across Our 4 Pillars 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCKING EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT ✓ Full year production and AISC ✓ Fetekro PEA expected to be ✓ Over 234,000m drilled in H2-
Slide 7: Our Covid-19 Response
Q2-2020 RESULTS OUR COVID-19 RESPONSE Business continuity plan while protecting the well-being of our employees CURRENTLY OPERATING IN A LEVEL 1 ENVIRONMENT › Enhanced preventative measures in place 1 › Gold shipments ongoing with a modified delivery process Near-normal operations › Continued full o
Slide 8: Safety Is Our Top Priority
Q2-2020 RESULTS SAFETY IS OUR TOP PRIORITY Lost Time Injury Frequency Rate remains low compared to industry standards Lost Time Injury Frequency Rate(1) (on a rolling 12-months basis) 0.66 0.21 LTM Lost Time Injury Frequency Rate 0.40 0.29 0.21 0.16 0.12 4 LTI Over the past 12 months Peer Average(2)
Slide 9: Successful SEMAFO Integration
Q2-2020 RESULTS SUCCESSFUL SEMAFO INTEGRATION Slotted SEMAFO’s assets within our well-established West African operating model Lean Corporate Head Office General managers are empowered and reply on strong Group Support Functions Mine Site Group support functions Planning & based in West Africa Commu
Slide 10: 2020 Guidance
Q2-2020 RESULTS 2020 GUIDANCE On track to meet guidance with strong H2-2020 expected ENDEAVOUR SEMAFO PRO FORMA PRODUCTION 680-740Koz 315-355Koz 995-1,095Koz Guidance Guidance Guidance H1 H1 H1 321koz 158koz 479koz ON TRACK ON TRACK ON TRACK AISC 680-740koz Guidance $845/oz $895/oz $895/oz $960/oz $
Slide 11: Production and AISC
Q2-2020 RESULTS PRODUCTION AND AISC Q2 production decreased with strong H2 expected based on grade sequencing Production and AISC INSIGHTS BY MINE Production, koz AISC, US$/oz AISC from all operations 228koz ITY 124koz 108koz -13% HOUNDÉ 110koz 113koz 171koz 181koz 178koz 172koz $707 Production $1,0
Slide 12: All-in Margin
Q2-2020 RESULTS ALL-IN MARGIN Increased over the previous year due to higher gold price and start-up at Ity All-in Margin from all operations H2-2020 OUTLOOK CATALYSTS In US$m, unless otherwise indicated › Stronger production Realized › Lower AISC 157m Gold Price $191m +$ › Lower non-sustaining spen
Slide 13: Net Debt Reduction
Q2-2020 RESULTS NET DEBT REDUCTION Significant improvement in leverage ratio Net Debt Reduction Net Debt Net Debt / Adj. EBITDA (LTM) INVESTMENT PHASE DEBT REDUCTION PHASE $ 187m (EDV standalone) $660m Net Debt reduction $608m over 12 months $528m 2.75x $473m $473m 1.94x 1.48x $309m 1.06x 1.00x 0.44
Slide 14: Strong Exploration Efforts
Q2-2020 RESULTS STRONG EXPLORATION EFFORTS Over 85% of FY-2020 budget spent in H1-2020 INSIGHTS Exploration expenditure for H1-2020 › During H1-2020, exploration continued to be a strong focus, with a company-wide exploration spend of $35m Houndé › Over 234,800m drilled across the group in H1-2020 $
Slide 15: On Track to Meet 5-Year Exploration Target
Q2-2020 RESULTS ON TRACK TO MEET 5-YEAR EXPLORATION TARGET Average discovery cost of below $15/oz Total Indicated discoveries and targets Indicated resources discovered 7.1Moz Indicated resources targeted % Cumulative Indicated resources against 5-year discovery target 100% 80% 1.5-2.5Moz 10-15Moz d
Slide 16: Portfolio Management
Q2-2020 RESULTS PORTFOLIO MANAGEMENT Focused on extending mine lives Key priorities at 4 cornerstone mines Combined Entity Producing Portfolio1 AISC $/oz Tabakoto › Ity - Continue exploration program and (sold in Q4-’18) $1,150 bring Le Plaque into production Nzema Mana › Hounde - Continue explorati
Slide 17: Financial Summary
02 SECTION 2 FINANCIAL SUMMARY
Slide 18: Financial Overview
FINANCIAL SUMMARY FINANCIAL OVERVIEW H1-2020 benefited from higher production and higher gold price QUARTER ENDED SIX MONTHS ENDED Jun. 30, Mar. 31 Jun. 30, Jun. 30, Jun. 30, Var. H1-20 (in US$ million unless otherwise stated) PRODUCTION, SALES AND AISC HIGHLIGHTS Gold Production, koz 2020 149 2020
Slide 19: All-in Margin
FINANCIAL SUMMARY ALL-IN MARGIN H1-2020 benefited from higher production and higher gold price THREE MONTHS SIX MONTHS INSIGHTS H1-2020 VS. H1-2019 ENDED ENDED 1. Higher cash costs at Houndé, Ity and Jun. 30, Mar. 31, Jun. 30, Mar. 30, Δ H1-2020 Agbaou which were partially offset by a All amounts in
Slide 20: Net Free Cash Flow
FINANCIAL SUMMARY NET FREE CASH FLOW Strong increase due to completion of investment phase in H1-2019 INSIGHTS H1-2020 VS. H1-2019 THREE MONTHS SIX MONTHS ENDED ENDED 1. Working capital and long-term assets: H1-2020 H1-2019 Trade and other receivables (18) (4) Jun. 30, Mar. 31, Jun. 30, Jun. 30, Δ H
Slide 21: Net Debt and Liquidity Analysis
FINANCIAL SUMMARY NET DEBT AND LIQUIDITY ANALYSIS Financial position significantly improved INSIGHTS Net Cash Variation Analysis › IN Q1-2020, as a precaution to ensure that Endeavour would have substantial liquidity and financial flexibility to operate under various stress-test scenarios, Endeavour
Slide 22: Net Earnings Breakdown
FINANCIAL SUMMARY NET EARNINGS BREAKDOWN Adjusted EPS of $0.78 for H1-2020 SIX MONTHS ENDED INSIGHTS Jun. 30, Jun. 30, 1. Mainly relates to M&A activity related to the (in US$ million) A = Adjustments made for Adjusted Net Earnings 2020 2019 announced combination with SEMAFO EARNINGS FROM MINE OPERA
Slide 23: Adjusted Net Earnings Per Share
FINANCIAL SUMMARY ADJUSTED NET EARNINGS PER SHARE Strong EPS over last 5 quarters Adjusted net earnings per share (EPS) Adjusted EPS, in $/share $0.48/share $0.30/share $0.34/share $0.48 Q2-2020 EPS $0.30/share $0.08/share +$0.40 EPS increase Q2-2020 vs. Q2-2019 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 23
Slide 24: Details by Mine and Project
03 SECTION 3 DETAILS BY MINE AND PROJECT
Slide 25: Production Bridge
DETAILS BY MINE & PROJECT PRODUCTION BRIDGE Increase due to the start-up of the flagship Ity CIL mine Production Bridge H1-2019 to H1-2020 INSIGHTS Change in AISC 62koz 479koz › Production increased compared to H1-2019, mainly due: ‒ The start-up of the flagship Ity CIL as commercial 96koz productio
Slide 26: Ity Mine, Côte D'Ivoire
DETAILS BY MINE & PROJECT ITY MINE, CÔTE D’IVOIRE Mine plan modified to provide increased operational flexibility in COVID-19 environment Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › The mine plan prioritized both waste extraction Production, koz AISC, US$/oz and the TSF raise in Q2-2020 which
Slide 27: Exploration at the Ity Mine, Côte D'Ivoire
DETAILS BY MINE & PROJECT EXPLORATION AT THE ITY MINE, CÔTE D’IVOIRE Updated Le Plaque reserve is expected to be announced in Q3-2020 Simplified Ity Site Map and Exploration Targets LE PLAQUE INSIGHTS › In H1-2020, exploration efforts continued to be focused on the Floleu license, located only 6km s
Slide 28: Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Stable production over past 5 quarters; higher grades expected in H2-2020 Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › Despite the COVID-19 pandemic, Houndé Production, koz AISC, US$/oz continued to operate at near-normal levels 58koz 55koz 55
Slide 29: Exploration at the Houndé Mine, Burkina Faso
DETAILS BY MINE & PROJECT EXPLORATION AT THE HOUNDÉ MINE, BURKINA FASO Updated Kari area reserve and Houndé mine plan is expected in Q3-2020 KARI AREA INSIGHTS Houndé Site Map › Kari Area M&I Resource increased by 554koz in H1-2020 › The updated resource increase includes extensions for the Kari Wes
Slide 30: Agbaou Mine, Côte D'Ivoire
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Stronger H2-2020 expected Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › Despite the COVID-19 pandemic, Agbaou Production, koz AISC, US$/oz continued to operate at near-normal levels with no material changes to its mine plan › Production decrea
Slide 31: Karma Mine, Burkina Faso
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Successfully transitioned to contract mining Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › Despite the COVID-19 pandemic, Karma Production, koz AISC, US$/oz continued to operate at near-normal levels 27koz 28koz with no material changes to its m
Slide 32: Mana, Burkina Faso
DETAILS BY MINE & PROJECT MANA, BURKINA FASO Production remained strong despite an interruption due to COVID-19 Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › As a preventive measure, due to the COVID-19 Production, koz AISC, US$/oz pandemic, a large portion of the underground mining team was pla
Slide 33: Boungou, Burkina Faso
DETAILS BY MINE & PROJECT BOUNGOU, BURKINA FASO Mining activities expected to re-start in Q4-2020 Q2-2020 vs Q1-2020 INSIGHTS Production and AISC › Despite the COVID-19 pandemic, Boungou Production, koz AISC, US$/oz continued to process stockpiles with minimal impact 63koz › Production decreased sli
Slide 34: Project Development Activities
DETAILS BY MINE & PROJECT PROJECT DEVELOPMENT ACTIVITIES Studies are underway on Kalana and Fetekro INSIGHTS NAME Kalana Fetekro Bantou Nabanga › While the main focus for 2020 is cash flow generation, Endeavour is also continuing to COUNTRY Mali Côte D’Ivoire Burkina Faso Burkina Faso build optional
Slide 35: Conclusion
SECTION 4 CONCLUSION ® ENDEAVOUR MINING
Slide 36: Strong Upcoming Catalysts
CONCLUSION STRONG UPCOMING CATALYSTS Exposure to strong fundamentals UPCOMING CATALYSTS TIMING CATALYST Immediate Q3-2020 Houndé Start of mining higher grade Kari Pump deposit Cash Flow from Production Q3-2020 Ity Updated Le Plaque reserve estimate and updated Ity mine plan Maiden reserve estimate f
Slide 37: Key Priorities
CONCLUSION KEY PRIORITIES Strong focus on shareholder returns ATTRACTIVE PROFILE AS LEADING WEST AFRICA PRODUCER KEY PRIORITIES +1Moz <$900/oz Annual production All-in Sustaining Cost <0.5x Net Debt / adj EBITDA leverage ratio ACHIEVE PRODUCTION CONTINUE TO EXPLORE TO EXTEND MINE LIVES AND BUILD Ann
Slide 38: Appendix
SECTION 5 APPENDIX ENDEAVOUR MINING
Slide 39: 2020 Guidance
APPENDIX 2020 GUIDANCE INSIGHTS Guidance Summary › Endeavour is maintaining its FY-2020 production and AISC ENDEAVOUR SEMAFO PRO FORMA guidance. The Company expects to mitigate the impact of Production, Koz 680 — 740 315 — 355 995 — 1,095 the COVID-19 pandemic due to the higher grade profile AISC, $
Slide 40: 2020 Guidance (continued)
APPENDIX 2020 GUIDANCE (continued) SUSTAINING COSTS INSIGHTS Sustaining Capital Expenditure Guidance H2-2020 H1-2020 2020 FULL-YEAR › Mine sustaining capital expenditure guidance for Endeavour's mines is (All amounts in US$m) GUIDANCE ACTUAL GUIDANCE expected to remain unchanged at $83m as an increa
Slide 41: Agbaou Mine, Côte D'Ivoire
APPENDIX AGBAOU MINE, CÔTE D’IVOIRE Exploration program of up to $2 million has been planned for 2020 Agbaou Site Map INSIGHTS › An exploration program of up to $2m has been planned for 2020 with the aim of continuing to test targets located along extensions of known deposits and on parallel trends
Slide 42: Karma Mine, Burkina Faso
APPENDIX KARMA MINE, BURKINA FASO Exploration program of up to $2 million has been planned for 2020 INSIGHTS Karma Site Map › An exploration program of up to $2m has been planned for 2020 with the aim of in-fill drilling and testing extensions of known deposits › Minimal work was done in H1-2020 as
Slide 43: Production and Cost Details by Mine (Quarterly)
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU ITY CIL KARMA HOUNDÉ MANA BOUNGOU (on a 100% basis) Q2-20 Q1-20 Q2-19 Q2-20 Q1-20 Q2-19 Q2-20 Q1-20 Q2-19 Q2-20 Q1-20 Q2-19 Q2-20 Q1-20 Q2-20 Q1-20 Physicals Total tonnes mined – OP1 000t 5,248 6,433 6,556 5,374 5,226 3,869 4,8
Slide 44: Production and Cost Details by Mine (Year to Date)
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a year to date basis AGBAOU ITY CIL KARMA HOUNDÉ MANA BOUNGOU (on a 100% basis) H1-20 H1-19 H1-20 H1-19 H1-20 H1-19 H1-20 H1-19 H1-20 H1-20 Physicals Total tonnes mined – OP1 000t 11,681 12,773 10,600 7,224 9,755 10,430 22,820 18,543 8,859 — Total ore
Slide 45: Reserves and Resources
APPENDIX RESERVES AND RESOURCES As of December 31, 2019 Houndé Mine Resources shown inclusive of Tonnage Grade Content Ity Mine Resources shown inclusive of Tonnage Grade Content Reserves. On a 100% basis (Mt) (Au g/t) (Au koz) Reserves. On a 100% basis (Mt) (Au g/t) (Au koz) Proven Reserves 1.8 1.6
Slide 46: Working Capital Movements
APPENDIX WORKING CAPITAL MOVEMENTS Working Capital Movement ─ Q2-2020 THREE MONTHS ENDED June 30, 2020 March 31, 2020 Q2-2020 Comments Increased mainly due to a $7 million increase in VAT receivables at Houndé Trade and other receivables (11) (7) and a $5 million short-term loan to the BCM Group. Tr
Slide 47: Tax Payments and Capex Spend by Mine
APPENDIX TAX PAYMENTS AND CAPEX SPEND BY MINE Sustaining Capital Non-Sustaining Capital THREE MONTHS ENDED SIX MONTHS ENDED THREE MONTHS ENDED SIX MONTHS June 30, March 31, June 30, June 30, June 30, ENDED (All amounts in US$m) 2020 2020 2019 2020 2019 June 30, March 31, June 30, June 30, June 30, A