Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Investor Presentation (February 2017)
83 slides from Endeavour Mining's investor presentation, February 2017
Slide 1: Creating a Premier African Gold Producer: Corporate Presentation
CREATING A PREMIER AFRICAN GOLD PRODUCER Corporate Presentation February 2017
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 market prices of mining consumables, possible variations in ore reserves, performance measures with no standard meaning under IFRS. This grade or recovery rates; failure of plant, equip
Slide 3: Endeavour Mining Overview
Endeavour Mining Overview Immediate Cashflow from 5 producing mines at low AISC – 2015 production: 517koz – 2016 production: 584koz – 2015 AISC: US$922/oz – 2016 AISC: US$895/oz Near-Term Growth from 2 attractive projects – Houndé Project construction started in April 2016, first gold pour expected
Slide 4: Company Profile
Company Profile Share Price Performance Top Shareholders Ticker TSX:EDV Rank Institution Name % of S/O Volume, shares EDV share price, C$ Shares in Issue 7000000 93.5 m 30 1 LA MANCHA HOLDING S.A.R.L. 28.1% Fully Diluted 94.6 m Share price 6000000 C$24.13 25 2 Van Eck Associates Corporation 13.7% Ma
Slide 5: Clear Path to Build a +900koz Producer at ≤ $800/oz AISC
Clear Path to Build a +900koz Producer at ≤ $800/oz AISC +900koz Strategic Milestones for 2018-2020 $1,137 + 900 koz 600-640koz ANNUAL PRODUCTION $1,010 584koz ≤ 800$/oz 517koz ALL IN CASH COST 462koz $922 10+ year 317koz MINE LIFE IN OUR CORE ASSETS $895 $860-905 220koz 167koz <$800 83koz 2010 2011
Slide 6: Strategic Levers to Building a Premier African Gold Producer
4 Strategic Levers to Building a Premier African Gold Producer 4 Strategic Levers Objective 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCK EXPLORATION VALUE PORTFOLIO & BALANCE SHEET 4 MANAGEMENT CREATING A PREMIER AFRICAN GOLD PRODUCER 5
Slide 7: Hands-on Management Model With Teams Close to Operations
1 OPERATIONAL EXCELLENCE Hands-on Management Model With Teams Close to Operations London Based All GMs Located on Site Sebastien de Montessus CEO & Director Vincent Benoit Functions: EVP CFO & Corporate • Finance Development • Investor relations • Corporate development Morgan Carroll • People and cu
Slide 8: Continued to meet guidance in 2016
1 OPERATIONAL EXCELLENCE Continued to meet guidance in 2016 584Koz in 2016 +13% vs 2015 Production Guidance 610koz 575koz $895/oz in 2016 (3%) vs 2015 AISC Guidance $870/oz $920/oz Circa $135m 2016 FCF Before +60% vs 2015 Growth Projects Guidance $135m Free Cash Flow (before growth projects, W
Slide 9: Proven track record
1 OPERATIONAL EXCELLENCE Proven track record Guidance for the year Increased Production Decreased All-in Sustaining Costs AISC, in US$/oz 985-1,070koz 575-610koz $1,137/oz 930-980koz 475-500koz 400-440koz 875-925koz 310-345koz 600 - 517koz 584koz $1,010/oz 466koz 640koz US$922/oz 324ko
Slide 10: CSR & stakeholder management at the foundation of long-term success
1 OPERATIONAL EXCELLENCE CSR & stakeholder management at the foundation of long-term success Stakeholder Relationship Principles CSR strategy – Key Pillars & Recent Projects On-the-ground management Income generating activities Several ExCom members based locally Tabakoto: Orchard Project with l
Slide 11: Houndé and Ity CIL are top tier projects
2 PROJECT DEVELOPMENT Houndé and Ity CIL are top tier projects Significant West African West African DFS Stage Projects Benchmark: Mine life and All-in cost (including initial capex) 1,250 Construction Expertise: Baomahun – Core construction team has (Amara) 1,200 successfully developed projects tog
Slide 12: Houndé is positioned to be Endeavour's flagship low cost mine
2 PROJECT DEVELOPMENT Houndé is positioned to be Endeavour’s flagship low cost mine • Construction started in April with first Essakane (IAMGOLD) Inata gold pour expected in Q4-2017 (Avocet) Taparko (Nordgold) - Construction is progressing on-time and Karma Bissa Hill on-budget (Nordgold) - Procurem
Slide 13: Ity CIL Feasibility Study demonstrates potential for Ity to become another flagship asset
2 PROJECT DEVELOPMENT Ity CIL Feasibility Study demonstrates potential for Ity to become another flagship asset Long-life Low Cost Project • Long 14-year reserves mine life 165kozpa at AISC of US$507/oz • Low AISC of $507/oz over first 9 years on average over the first 5 years • Solid production of
Slide 14: Amongst Largest and Most Promising Portfolios in West Africa
3 UNLOCK EXPLORATION VALUE Amongst Largest and Most Promising Portfolios in West Africa +200 Targets 7,190 km2 10 Mining Leases 42 Exploration Licenses 390 km² 2,140 km² 510 km² 4,150 km² CREATING A PREMIER AFRICAN GOLD PRODUCER 13
Slide 15: Exploration Strategic Review Output: Ranking of Potential
3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Ranking of Potential Ambition to find 10-15Moz of Indicated Resources Moz over next 5 years 6 5 4.0-6.0Moz 4 3 2.5-3.5 Moz 2 1.5-2.5Moz 1 0.5-1.5Moz 0.5-1.0Moz 0.5-1.0Moz Greater Ity Houndé Tabakoto Agbaou Karma and Côte d’Ivoire • Sign
Slide 16: Exploration Strategic Review Output: Low Discovery Costs
3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Low Discovery Costs Annual budget of $35-40m with anticipated average discovery costs <$15/oz $55m Mali Côte 17% d’Ivoire $45m 5-year 50% budget 33% $30m Burkina $25m Faso $25/oz $15m $15/oz $15/oz $10m $11/oz $20/oz $13/oz Greater Ity
Slide 17: Exploration Strategic Review Output: What are the priorities?
3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: What are the priorities? Priorities: Priorities: 1. Tabakoto due to its short mine life 1. Ity Greater Area 2. Agbaou to extend oxide mine life 2. Houndé to prolong mine life 3. Ity to extend HL and Improve CIL case 3. Tabakoto and Agab
Slide 18: Increase Overall Quality of our Portfolio
4 PORTFOLIO & BALANCE SHEET MANAGEMENT Increase Overall Quality of our Portfolio AISC, US$/oz $1,200/oz $1,150/oz Decreased costs from >1,300/oz $1,100/oz $1,050/oz Youga Cut-back SOLD $1,000/oz Tabakoto (150-160koz) $950/oz Nzema (100-110koz) $900/oz $850/oz Houndé $800/oz +250koz starting Q4-2017
Slide 19: Well Positioning Ourselves Against Our Peers
4 PORTFOLIO & BALANCE SHEET MANAGEMENT Well Positioning Ourselves Against Our Peers Benchmark of West-African Producers AISC, $/oz 1,100 Gold Fields 1,050 1,000 IAMGOLD Golden Star Teranga 950 Endeavour 2015A Endeavour 900 2016A Perseus AngloGold Ashanti Kinross 850 Nordgold Endeavour (output of 800
Slide 20: Healthy financial structure
4 PORTFOLIO & BALANCE SHEET MANAGEMENT Healthy financial structure Liquidity and Financing Sources Significant Balance Sheet improvement Strong liquidity and financing sources to fund ‒ $65m cash injection received from La Mancha in May 2016 remaining Houndé capex spend of roughly $180m following
Slide 21: Well positioned to fund growth
HEALTHY FINANCIAL STRUCTURE 4 Well positioned to fund growth Strong Liquidity Sources and Cash Flow generation to fund internal growth Room to manoeuvre between • Net Free Cash flow from current debt and own cashflow mine operations 2017-2018 including Houndé start in Q4 2017 (@$1,250/oz) Potential
Slide 22: Key 2016 Achievements
Key 2016 Achievements • 5-year strategy validated by the Board (and La Mancha) in June 2016 Reset • Shared and discussed with all Leadership Team Strategy • Marketed to financial community with strong positive feedback received • Streamlining Excom from 10 to 7 Streamline Organization • 3 Operationa
Slide 23: Investment Highlights
Investment Highlights Endeavour now offers exposure to both near and long-term growth potential, in addition to current production Immediate Near-Term Long-Term Cashflow Growth Upside from Production from Projects from Exploration with an accomplished management team and a healthy balance sheet CREA
Slide 24: 2017 Outlook
CREATING A PREMIER AFRICAN GOLD PRODUCER 2017 Outlook
Slide 25: 2017 Guidance
2017 GUIDANCE Production expected to increase and AISC to decrease Production Guidance, koz AISC Guidance, US$/oz (In US$/oz) 2016 Actual 2017 Guidance (on a 100% basis) 2016 Actual 2017 Guidance Agbaou ~535 660 - 700 Agbaou 195,505 175,000 - 180,000 Tabakoto 950 - 990 ~1,030 Tabakoto 162,817 150,00
Slide 26: 2017 Guidance
2017 GUIDANCE Free Cash Flow Before Growth Projects Expected to Increase Exploration Guidance, $m AISC Guidance, $/oz (In $m) 2017 Guidance Sustaining Non-Sustaining Growth Agbaou 7 (in $m) Capital Capital Projects Tabakoto 9 Agbaou 20 - - Ity 10 Tabakoto 20 - - Karma 4 Nzema 5 12 - Houndé 5 Ity 10
Slide 27: Details by Mine and Project
CREATING A PREMIER AFRICAN GOLD PRODUCER Details by Mine and Project
Slide 28: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Quick Facts (on 100% basis) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 14.4Mt @ 2.5 g/t for 1.180Moz (incl. of Reserves) Inferred: 1.2Mt @ 1.7 g/t for 0.065Moz Côte d’Ivoire Reserves 13.2Mt @ 2.4 g/t for 1.027Moz Ity Mine Processing Rate Up to 2.6 Mtpa
Slide 29: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Q4-2016 Insights Production and AISC • Record performance in Q4: Production, koz AISC, US$/oz ‒ Benefit from the end of the rainy season 57koz 52koz ‒ Greater mix of higher grade transitional 46koz 49koz 43koz ore, which represented 15% of total ore processed 535 2017 Out
Slide 30: Agbaou Exploration
Agbaou Exploration • The ongoing exploration campaign, Agbaou Site Map which commenced in April 2016 based on previous geophysics and soil geochemistry results, is focused on: ‒ North pit and South pit extensions, ‒ Agbaou South target ‒ Niafouta target ‒ Generating targets beyond the current resour
Slide 31: Agbaou Numerous Gold in soil anomalies over 50 ppb
Agbaou Numerous Gold in soil anomalies over Mag > 50 ppb CREATING A PREMIER AFRICAN GOLD PRODUCER 30
Slide 32: Agbaou Exploration – 5 years targets
Agbaou Exploration – 5 years targets Côte d’Ivoire Auger & RC drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 31
Slide 33: Agbaou – Exploration Potential
Agbaou – Exploration Potential Targeting discovery of between 0.5 to 1.5 Moz at an average cost of $25/oz over the next 5 years with a budget of ~$25M to extend mine life to 10 years* • 2013-2015 : Successful Drilling limited to infill drilling and immediate trend extension to renew resources and co
Slide 34: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quick Facts (on 100% basis) 80-90% Endeavour depending on pit, remainder Ownership government of Mali Resources M&I: 18.5Mt @ 3.1 g/t for 1.844Moz (incl. of Reserves) Inferred: 9.0Mt @ 3.6 g/t for 1.023Moz Mali Reserves 6.4Mt @ 3.5 g/t for 0.725Moz Open Pit Strip Ratio 10.4 to 1
Slide 35: Tabakoto Mine – Mali
Tabakoto Mine – Mali Q4-2016 Insights Production and AISC • Record quarter due to the anticipated higher Production, koz AISC, US$/oz grades from Kofi C and Segala and increased +30% mill throughput following the end of the 48 rainy season. 42koz 39koz 39koz 37koz 2017 Outlook • Cost reduction will
Slide 36: Tabakoto Mine – Exploration
Tabakoto Mine – Exploration Tabakoto Site Map • Tabakoto is a top exploration priority in 2017 given its relatively short mine life and significant potential. • $9 million exploration program totaling approximately 72,000 meters of drilling has been planned for 2017. • Focus on both surface explorat
Slide 37: Tabakoto Surface Target priority ranking
Tabakoto Surface Target priority ranking Yatia SE Segala S 75 targets identifIed, 7 Priority 1 (2017) Areas under transported cover identifIed Reg. Explo Sanou Sira Dabo S Kreko Famakan Fougala Dioulafoundou S Sanou Sira S CREATING A PREMIER AFRICAN GOLD PRODUCER 36
Slide 38: KOFI Land Package Main Target Areas
KOFI Land Package Main Target Areas Auger drilling RC drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 37
Slide 39: Mali Exploration – Tabakoto and Kofi Land Packages
Mali Exploration – Tabakoto and Kofi Land Packages Targeting discovery of between 1.5 to 2.5 Moz at an average cost of $15/oz over the next 5 years with a budget of ~$30M* • Main focus is on finding new additional open pit resources within a short distance to the Tabakoto mill within within18 to 24
Slide 40: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Quick Facts (on 100% basis) Ownership 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% private Côte d’Ivoire Resources (HL + CIL) M&I: 61.4Mt @ 1.6 g/t for 3.106Moz (incl. of Reserves) Inferred: 14.1Mt @ 1.5 g/t for 0.687Moz Ity Mine Reserves (HL+CIL) 30.4Mt @ 1.7 g/t for 1.6Moz A
Slide 41: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Q4-2016 Insights Production and AISC • Production increased in Q4 following the Production, koz AISC, US$/oz end of the rainy season which allowed for 22koz increased throughput 21koz 19koz • Pre-strip at the Zia pit was completed 15koz 17koz during the quarter which positiv
Slide 42: Summary of Independent Feasibility Study for CIL Project
Summary of Independent Feasibility Study for CIL Project Independent CIL Feasibility Study prepared by: Ity CIL Project DFS highlights Lead Consultant: Life of Mine Production Strip ratio, w:o 2.1 Tonnes of ore processed, Mt 41.0 Mt Grade processed, Au g/t 1.42 g/t Contributions from: Gold content p
Slide 43: Significant Improvement Expected in Updated Feasibility Study
Significant Improvement Expected in Updated Feasibility Study H1-2017 update expected to include: • Recent high-grade Bakatouo and Colline Sud discoveries • Verse Ouest following recently completed infill drilling program • Additional Resource conversion at Daapleu and Mont Ity based planned infill
Slide 44: Additional Potential for Resource Conversion
Additional Potential for Resource Conversion Probable Reserves Indicated Resources Inferred Resources Potential includes: Deposits on a 100% basis. Resources are • The recently discovered inclusive of reserves. Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content Bakatouo and Colline Su
Slide 45: Ity Mine – Exploration: High-grade Bakatouo discovery
Ity Mine – Exploration: High-grade Bakatouo discovery Indicated Inferred Cutoff Pit Shell September 2016 kt g/t Au koz kt g/t Au koz Grade g/t Constraint $ 4 807 3.07 474 188 2.87 70 0.50 $ 1 500 All Ore 4 632 3.13 466 645 2.95 61 0.50 $ 1 250 Oxide / Transitional 1 373 3.73 165 170 4.19 23 0.50 $ 1
Slide 46: Ity Mine – Exploration
Ity Mine – Exploration Ity Mine Drilling Targets • The largest portion of Endeavour’s 2017 exploration budget has been allocated to the Ity area in light of its strong prospectivity and potential to further extend the lives of the CIL project and Heap Leach operations. • A $10 million exploration pr
Slide 47: Ity: New High Quality Near Mine Exploration Targets
Ity: New High Quality Near Mine Exploration Targets CREATING A PREMIER AFRICAN GOLD PRODUCER 46
Slide 48: Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu
Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu Auger drilling Côte d’Ivoire 10 km radius RC drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 47
Slide 49: Ity Mine – Exploration: 80km underexplored Birimian corridor
Ity Mine – Exploration 80km underexplored Birimian corridor Ity Mine Birimian corridor • Endeavour consolidated an 80km underexplored Birimian corridor on- trend with its Ity mine in Côte d’Ivoire • Significantly increased its holdings in the Ity district from 178km² to 664km2. • The new Floleu (104
Slide 50: Greater Ity Regional Gold in Soil Anomalies
Greater Ity Regional Gold in Soil (> 100 ppb) Anomalies PR609 East Cavally Several Targets Birrimian meta sediments and green belt Gnamapleu Granite-Gneiss PR558 Le Plaque Area Several Targets No Geochemical data at all GUEYA area No Exploration Several targets GBAMPLEU Historical Sparse 400x100m Gr
Slide 51: Greater Ity: 2017 – 2021 Exploration Targets
Greater Ity: 2017 – 2021 Exploration Targets Toulepleu Auger drilling RC drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 50
Slide 52: SEMAFO Mana vs EDV Greater Ity trend size comparison
How significant is Greater Ity area? SEMAFO Mana (BF) vs EDV Greater Ity (CI) trend size comparison SEMAFO Controlled MANA TREND EDV Controlled Greater ITY TREND CREATING A PREMIER AFRICAN GOLD PRODUCER 51
Slide 53: Potential of Greater Ity Exploration
Potential of Greater Ity Exploration Targeting discovery of between 4 to 6 Moz at an average cost of $11/oz over the next 5 years with a budget of ~$55M* • Numerous high Potential targets have been identified within the Greater Ity area • The whole controlled 80 km trend will be covered by an airbor
Slide 54: Nzema Mine – Ghana
Nzema Mine – Ghana Quick Facts (on 100% basis) Ownership 90% EDV, 10% government of Ghana Resources M&I: 34.6Mt @ 1.3 g/t for 1.490Moz (incl. of Reserves) Inferred: 5.9Mt @ 1.3 g/t for 0.244Moz Ghana Reserves 4.7Mt @ 2.4 g/t for 0.356Moz Open Pit Strip Ratio 8.3 to 1 (2016A) Processing Rate 1.6 Mtpa
Slide 55: Nzema Mine – Ghana
Nzema Mine – Ghana Q3-2016 Insights Production and AISC • Production slightly decreased over the Production, koz AISC, US$/oz previous quarter as the higher grades 24koz 24koz 23koz mined was offset by lower purchased ore 20koz 20koz grades • The Adamus pit push-back progressed well in 2016 and is e
Slide 56: Karma Mine – Burkina Faso
Karma Mine – Burkina Faso Karma Mine Quick Facts (1) (on 100% basis) Karma Project Ownership 90% EDV, 10% Burkina Faso Ouagadougou Resources M&I: 75.2Mt @ 1.08 g/t for 2.621Moz (incl. of Reserves) Inferred: 65.3Mt @ 1.13 g/t for 2.362Moz Houndé Project Reserves 33.2Mt @ 0.89 g/t for 0.949Moz Process
Slide 57: Karma Update
Karma Update Q4-2016 Insights Producing at a run-rate of 100-110koz per annum • Commercial production was declared on Production, koz October 1, 2016 9,754oz 9,985oz 9,109oz • Production continued to ramp up as the higher grade Rambo pit complemented ore feed from 7,381oz 6,854oz the GG2 pit and sta
Slide 58: Karma - Exploration
Karma - Exploration • Target: +10 year mine life Karma Site Map by year end • In 2016, the exploration program focused on Kao North, with the goal of extending mine life by +2.5 years. The results are currently being compiled and are expected to be published in the coming weeks. • In 2017, a $4 mill
Slide 59: Kao North H2-2016 Resources Drilling
KAO NORTH H2-2016 RESOURCES DRILLING 45,000m program has been recently been completed with the target of increasing mine life by 2.5 years and reach +10 years by year end A ’ A Selected intercepts shown above. Full results are currently being analyzed. CREATING A PREMIER AFRICAN GOLD PRODUCER 58
Slide 60: KAO North 2016 Drilling Section
KAO North 2016 Drilling Section Infill Drilling Confirms Mineralization Continuity A A’ CREATING A PREMIER AFRICAN GOLD PRODUCER 59
Slide 61: Yabonsgo is one of our next priority target
2017 Targets: YABONSGO Target (<10km from GG1) Yabonsgo is one of our next priority target RC AC CREATING A PREMIER AFRICAN GOLD PRODUCER 60
Slide 62: Rambo West is a near-mine obvious target
2017 Targets: Rambo West Rambo West is a near-mine obvious target Granodiorite AC RC sediments CREATING A PREMIER AFRICAN GOLD PRODUCER 61
Slide 63: Karma Exploration
Karma Exploration Targeting discovery of between 0.5 to 1.0 Moz at an average cost of $20/oz over the next 5 years with a budget of ~$15M to extend mine life to 15 years* • New geological understanding and mapping in less than 6 months • 45,000 m drilling campaign already performed on Kao North to a
Slide 64: Houndé Project – Burkina Faso
Houndé Project – Burkina Faso Quick Facts (on 100% basis) Karma Project Ownership 90% EDV, 10% Burkina Faso Status Fully permitted, construction launched Ouagadougou Production start date First gold pour expected Q4 2017 Burkina Faso Houndé Project Resources M&I: 37.9Mt @ 2.1 g/t for 2.551Moz (incl.
Slide 65: Houndé Construction is progressing on-time and on-budget
Houndé Construction is progressing on-time and on-budget Significant achievements to date: Procurement is approximately 60% complete Construction is progressing as planned, with over 50% completed by year-end $328m Over 2 million man-hours have been worked without LTI $210m The 38km long, 91kv
Slide 66: Houndé Exploration Upside
Houndé Exploration Upside Exploration Targets in Proximity to the Planned Mill • The Houndé exploration tenement covers +1,075km² within Burkina Faso’s highly prospective Birimian belt • Historically, exploration focus mainly on the Vindaloo trends • At least 15 other significant targets were identi
Slide 67: Houndé Exploration: 2017-2021 Main Promising Targets
Houndé Exploration: 2017-2021 Main Promising Targets RC drilling Auger drilling CREATING A PREMIER AFRICAN GOLD PRODUCER 66
Slide 68: Houndé Exploration – Burkina Faso
Houndé Exploration – Burkina Faso Targeting discovery of between 2.5 to 3.5 Moz at an average cost of $15/oz over the next 5 years with a budget of ~$45M to extend mine life to +15 years* • Our Houndé exploration portfolio is located within one of the most prospective areas of the Birimian greenston
Slide 69: Appendix
CREATING A PREMIER AFRICAN GOLD PRODUCER Appendix
Slide 70: Endeavour is backed by La Mancha
Endeavour is backed by La Mancha Sawiris family’s mining investment vehicle Long-term growth supportive investor 31% 30% with focus on creating regional leaders holding holding The Sawiris family is present across various sectors and businesses, ranging from construction and fertilizers to real esta
Slide 71: Net Free Cash Flow Breakdown
Net Free Cash Flow Breakdown First 9 months ended US$m 2016 2015 Insights: Free cash flow (before Hounde, Karma, working capital, tax & financing 1. Houndé spend fully on track with capex 100 72 costs) program Hounde project costs 1 (45) (5) Karma proceeds from sales less mining costs capitalized an
Slide 72: Adjusted Net Earnings Breakdown
Adjusted Net Earnings Breakdown Insights: Nine months ended (US$m) 30-Sep-16 30-Sep-15 1. Youga results are removed due to Total net earnings 17 57 disposal of the mine Youga discontinued operations 1 3 (9) 2. Legacy gold hedge caused losses Loss (gain) on financial instruments 2 20 (3) due to incre
Slide 73: Production and Cost Details by Mine
Production and Cost Details by Mine On a quarterly basis Agbaou Nzema Tabakoto Ity (on a 100% basis) Unit Q3-2016 Q2-2016 Q3-2015 Q3-2016 Q2-2016 Q3-2015 Q3-2016 Q2-2016 Q3 2015 Q3-2016 Q2 2016 Physicals Total tonnes mined – OP1 000t 6,877 5,918 5,037 2,848 1,852 1,323 1,569 1,704 2,129 948 1,584 To
Slide 74: Production and Cost Details by Mine
Production and Cost Details by Mine For the 9 months period ended 2016 and 2015 Agbaou Nzema Tabakoto Ity3 (on a 100% basis) Unit 9-months 2016 9-months 2015 9-months 2016 9-months 2015 9-months 2016 9-months 2015 9-months 2016 Physicals Total tonnes mined – OP1 000t 18,864 15,331 6,410 6,707 5,505
Slide 75: Production and Cost Details by Mine
Production and Cost Details by Mine On a quarterly basis Agbaou Nzema Tabakoto Ity Karma (on a 100% basis) Unit Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Total tonnes mined – OP* 000t 6,518 6,877 4,924 2,885 2,848 1,341 1,593 1,569 2,423
Slide 76: Reserve and Resource Table
Reserve and Resource Table As at December 31, 2015 P&P Reserves M&I Resources Inferred Resources Resources inclusive of reserves (Mt) Au g/t (koz) (Mt) Au g/t (koz) (Mt) Au g/t (koz) Agbaou Mine 13.2 2.42 1,027 14.4 2.54 1,180 1.2 1.71 65 Tabakoto Mine 6.4 3.50 725 18.5 3.09 1,844 9.0 3.55 1,023 Nze
Slide 77: Gold Revenue Protection Program: Gold Option Collar Strategy
Gold Revenue Protection Program Limit Debt Drawdown Gold Revenue Protection Program : Gold Option Collar Strategy • Gold Option Contracts aim to increase the Gold price in US$/oz 1,500 Upside on 50% of certainty of the free cash flow during the production construction period Collar “written calls”
Slide 78: Short Mine Lives Due To Lack of Exploration, Not Potential!
Short Mine Lives Due To Lack of Exploration, Not Potential! Endeavour spent less than peers on exploration… … As a result it suffers from shorter mine lives Exploration spend, $/oz produced Exploration spend, $m/year Average Mine Life of operating assets $72/oz $70/oz 10 10 9 $59/oz 8 Average $51/oz
Slide 79: Previous Exploration Strategy Was Based On Converting Inferred Resources
Previous Exploration Strategy Was Based On Converting Inferred Resources Inferred Resources Evolution (excluding acquisitions) ‒ Previous 3 years focused on 2013 2014 2015 replacing depletion/production by drilling in-mine or near- mine already existing inferred 1,693 resources for conversion to 1,6
Slide 80: Exploration Became a Core Focus in 2016 with New Structure in Place
Exploration Became a Core Focus in 2016 with New Structure in Place Abidjan based Highly experienced team CEO – Strong knowledge of West African Birimian belts EVP EVP – Senior staff from BRGM, Randgold, COO Exploration & Growth Projects Iamgold, Areva, La Mancha, etc CI Government – 20 Seniors Geol
Slide 81: Screening and Ranking Methodology
Screening and Ranking Methodology Exhaustive screening of all Strategic >200 potential Prioritization targets First Conservative filtering Approach Exploration budget required per target to 130+ target screened reach Indicated through multi-criteria resource level status data analysis Quantifying mi
Slide 82: Methodic and Exhaustive Review to Quantify and Rank Potential
Methodic and Exhaustive Review to Quantify and Rank Potential • Visit to all sites with Exploration Managers/Chef-Senior Geologists, EDV experts • 6 months detailed review of all past exploration, synthesis of all available and validated data in database • All Geochem (Stream and Soil), all geophysi
Slide 83: Further Selection, Ranking and Risk Evaluation
Further Selection, Ranking and Risk Evaluation • Each selected target (~40) was risked and characterized by a Probability of Occurrence (POO), based on geological confidence/structural understanding/ type of expected mineralization/existing positive intercepts/trend extension, strong and coherent go
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