Slide 1: Operational & Financial Results
Q1 Q2 OPERATIONAL & FINANCIAL RESULTS Q3 › March 9, 2020 Q4
Slide 2: Disclaimer & Forward Looking Statements
2019 FULL YEAR RESULTS 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: Speakers and Table of Contents
SPEAKERS TABLE OF CONTENTS SÉBASTIEN DE MONTESSUS 1 Q4-2019 & FY-2019 IN REVIEW President & Chief Executive Officer 2 FINANCIAL SUMMARY LOUIS IRVINE DETAILS BY MINE AND CFO 3 PROJECT MARK MORCOMBE 4 CONCLUSION COO 5 APPENDIX PATRICK BOUISSET EVP – Exploration and Growth Note : All amounts are in US$
Slide 4: 2019 Activities Recap
2019 FULL YEAR RESULTS 2019 ACTIVITIES RECAP Strong Continued Achievements Across Our 4 Pillars 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCKING EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT ✓ Strong safety record ✓ Ity CIL construction ✓ Over 341,960m drilled ✓ Finished the yea
Slide 5: Operational Excellence
2019 FULL YEAR RESULTS OPERATIONAL EXCELLENCE Our safety record remained below the industry average Lost Time Injury Frequency Rate(1) (on a rolling 12-months basis) 0.66 0.12 LTM Lost Time Injury 0.40 Frequency Rate 0.29 0.16 2 LTI 0.12 0.00 0.00 0.00 Peer FY2016 FY2017 FY2018 FY2019 Houndé Agbaou
Slide 6: 7th Year of Successfully Meeting Guidance
2019 FULL YEAR RESULTS 7TH YEAR OF SUCCESSFULLY MEETING GUIDANCE Production from continuing operations increased due to Ity’s CIL start-up Production, on a 100% basis in koz For discontinued operations +39koz For continuing operations 727koz (670-720koz guided) 663koz (600-640koz guided) 651
Slide 7: 7th Year of Successfully Meeting Guidance (AISC)
2019 FULL YEAR RESULTS 7TH YEAR OF SUCCESSFULLY MEETING GUIDANCE AISC decreased due to Ity’s CIL start-up AISC including discontinued operations, in US$/oz (Guidance for the year) $1,010/oz ($985-1,070/oz) -$ 30/oz $1,099/oz 2019 vs 2018 ($1,055-1,155/oz) $922/oz ($930-980/oz) $886/oz -3
Slide 8: All-in Margin Significantly Increased
2019 FULL YEAR RESULTS ALL-IN MARGIN SIGNIFICANTLY INCREASED Strong increase due to higher gold price and start-up at Ity All-in Margin from all operations In US$m, unless otherwise indicated Realized 62m Gold Price $259m +$ 2019 vs 2018 $197m $162m $149m H2: $191m 2.8x $85m $35m + H1: $68m $1,264/o
Slide 9: Strong Net Cash Flow Generated in H2-2019
2019 FULL YEAR RESULTS STRONG NET CASH FLOW GENERATED IN H2-2019 Q3 was the cash flow inflection point for the business Net Cash Flow Net cashflow before repayment/proceeds of long-term debt, convertible bond and equipment finance obligation +$85m ITY CIL CONSTRUCTION ITY CIL PRODUCTION $80m $52m Q4
Slide 10: Strong Increase in Cash Flow Yield
2019 FULL YEAR RESULTS STRONG INCREASE IN CASH FLOW YIELD Strong re-rating potential based on cash flow generation 2020E FCF Yield 14% 14% 13% 12% 11% 10% 10% 10% 9% 9% 8% 7% 7% 8% 7% 7% 6% 6% 5% 5% 5% 4% 4% 3% 2% 1% 1% 0% (11%) Regis Alamos SSR Mining Centamin Eldorado Teranga New Gold Northern Sta
Slide 11: Significant Strengthening of Balance Sheet
2019 FULL YEAR RESULTS SIGNIFICANT STRENGTHENING OF BALANCE SHEET Leverage expected to decrease to below 1.0x Net Debt/EBITDA by year end Net Debt Reduction 132m Ity capex incurred the period INVESTMENT DEBT REDUCTION Ity capex remaining Net Debt Net Debt / Adj. EBITDA (LTM) PHASE PHASE $ $635m $660
Slide 12: Return on Capital Employed
2019 FULL YEAR RESULTS RETURN ON CAPITAL EMPLOYED Strong focus on demonstrating returns following investment phase Return on Capital Employed (ROCE) (1) 14% 14% ROCE for H2-2019 10% annualized 6% 6% +20% ROCE target with strong capital 2017 2018 2019 H2-2019 allocation discipline annualized (1) EBIT
Slide 13: Continued Exploration Success
2019 FULL YEAR RESULTS CONTINUED EXPLORATION SUCCESS 2.1Moz of M&I resources discovered in 2019 KEY PRIORITIES Exploration expenditure for 2019 1. Extend mine life at flagship mines (72%) (28%) Fetekro ‒ Houndé: Kari area $7m (14%) ‒ Ity: Le Plaque discovery Other greenfield properties 2. Building o
Slide 14: On Track to Meet 5-Year Exploration Target
2019 FULL YEAR RESULTS ON TRACK TO MEET 5-YEAR EXPLORATION TARGET Average discovery cost of $12/oz Total Indicated discoveries and targets Indicated resources discovered 6.3Moz Indicated resources targeted % Cumulative Indicated resources against 5-year discovery target 100% 80% 1.5-2.5Moz 10-15Moz
Slide 15: Quickly Bringing High Quality Discoveries into Production
2019 FULL YEAR RESULTS QUICKLY BRINGING HIGH QUALITY DISCOVERIES INTO PRODUCTION BAKATOUO (ITY) KARI PUMP KARI W+C LE PLAQUE (ITY) FETEKRO ( HOUNDÉ) (HOUNDÉ) DISCOVERY COST $10/oz $15/oz $9/oz $15/oz $9/oz M&I 1Moz 1.2Moz 704Koz 476Koz 1Moz RESOURCES at 1.61 g/t at 2.54 g/t P&P 532Koz 415Koz 710koz
Slide 16: Extending Mine Lives of Flagship Mines (Houndé)
2019 FULL YEAR RESULTS EXTENDING MINE LIVES OF FLAGSHIP MINES Houndé expected to be extended with upcoming Kari West & Center reserves DISCOVERIES MADE SINCE STUDIES KARI PUMP Houndé production plan WERE PUBLISHED (HOUNDÉ) (As per 2016 Optimized Study(2), excludes Kari Pump discovery) 1.1Moz of tota
Slide 17: Extending Mine Lives of Flagship Mines (Ity)
2019 FULL YEAR RESULTS EXTENDING MINE LIVES OF FLAGSHIP MINES Ity mine life extended with high-grade Le Plaque maiden reserve LE PLAQUE Ity production plan DISCOVERIES MADE SINCE STUDIES (As per 2017 Optimized Study (2), based on 4Mtpa plant and excludes Le Plaque discovery) WERE PUBLISHED (ITY) 0.5
Slide 18: Advancing Optionality in the Portfolio
2019 FULL YEAR RESULTS ADVANCING OPTIONALITY IN THE PORTFOLIO Updated study on Kalana and PFS on Fetekro expected in 2020 INSIGHTS Kalana Fetekro › While the main focus for 2020 will be on cash flow generation, Endeavour Country will also continue to build optionality Mali Côte D’Ivoire within the p
Slide 19: 2020 Key Focus Areas
2019 FULL YEAR RESULTS 2020 KEY FOCUS AREAS STRATEGIC OBJECTIVES 2016 - 2019 TURNAROUND 2020 KEY FOCUS AREAS › CASH FLOW GENERATION $1billion invested & DELEVERAGING <$850/oz Diversification › CONTINUE TO EXTEND AISC across multiple countries and mines 2 flagship mines built MINE LIVES OF FLAGSHIP A
Slide 20: Focused on Delivering Strong Shareholder Returns
2019 FULL YEAR RESULTS FOCUSED ON DELIVERING STRONG SHAREHOLDER RETURNS Key risks have been successfully addressed Share Price Performance KEY RISKS HAVE BEEN EDV Volume Endeavour Mining (EDV-TSE) S&PTSX Global Gold ADDRESSED: ✓ Construction risk 400 Share price has been trading in line with index;
Slide 21: Financial Summary
Q4-2019 & FY-2019 1 IN REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 22: Financial Overview
FINANCIAL SUMMARY FINANCIAL OVERVIEW Benefited from the Ity CIL start-up and lower growth capex QUARTER ENDED YEAR ENDED Dec. 31, Sep. 30, Dec. 31, Dec. 31, +36% For Continuing Operations Variance Variance (in US$ million unless otherwise stated) 2019 2019 2019 2018 PRODUCTION AND AISC HIGHLIGHTS Go
Slide 23: All-in Margin Breakdown
FINANCIAL SUMMARY ALL-IN MARGIN BREAKDOWN Margin increased by $56/oz in 2019 compared to 2018 YEAR ENDED INSIGHTS IN US$M IN $/OZ 1. Increased due to both higher production and From continuing operations unless otherwise Dec. 31, Dec. 31, Dec. 31, Dec. 31, realized gold price. Variance specified 201
Slide 24: Net Free Cash Flow
FINANCIAL SUMMARY NET FREE CASH FLOW Net free cash flow turned positive in Q3-2019 following completion of investments YEAR ENDED INSIGHTS From continuing operations unless otherwise specified Dec. 31, Dec. 31, Variance 1. Working capital variances: (in US$ million) 2019 2018 ALL-IN MARGIN 259 210 +
Slide 25: Net Debt and Liquidity Analysis
FINANCIAL SUMMARY NET DEBT AND LIQUIDITY ANALYSIS Financial position significantly improved Available sources of financing and liquidity INSIGHTS As at December 31, 2019 › The total commitment capacity on the RCF was increased in Q2-2019 by $80m to $430m to provide Endeavour with increased financial
Slide 26: Net Earnings Breakdown
FINANCIAL SUMMARY NET EARNINGS BREAKDOWN Adjusted EPS of $0.67 for 2019 YEAR ENDED Dec. 31, Dec. 31, INSIGHTS (in US$ million) A = Adjustments made of Adjusted Net Earnings 2019 2018 1. Higher operating expenses due to increased GOLD REVENUE 886 752 production Operating expenses 1 (431) (387) 2. As
Slide 27: Adjusted Earnings Per Share
FINANCIAL SUMMARY ADJUSTED EARNINGS PER SHARE Strong increase due to benefit of low cost Ity CIL and higher gold prices Adjusted earnings per share (EPS) Adjusted EPS from all operations, in $/share $0.30/share $0.34/share +127% Q4-19 vs. Q4-18 $0.15/share $0.08/share ($0.01/share) ($0.04/share) +$0
Slide 28: Return on Capital Employed
FINANCIAL SUMMARY RETURN ON CAPITAL EMPLOYED Strong focus on demonstrating returns following investment phase Return on Capital Employed (ROCE) by asset Group Return on Capital Employed Ity Hounde 26% 30% 10% Capital Employed ITY ROCE Agbaou Expected to increase 10% based on higher 2020 Karma produc
Slide 29: Details by Mine and Project
Q4-2019 & FY-2019 IN 1 REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 30: Resource Evolution
DETAILS BY MINE & PROJECT RESOURCE EVOLUTION Resources up 9% year-on year despite reduction at Karma INSIGHTS M&I Resource Evolution (Inclusive of reserves) › Measured and Indicated (“M&I”) resources 15.1Moz amounted to 15.1Moz at year-end 2019, up 14.9Moz 13.6Moz 13.9Moz 9% over the previous year,
Slide 31: Reserve Evolution
DETAILS BY MINE & PROJECT RESERVE EVOLUTION Reserves expected to increase in Q2-2020 with Kari Centre and Kari West INSIGHTS P&P Reserve Evolution -0.1Moz › P&P reserves amounted to 7.9Moz at 9.1Moz year end 2019, down 1% over 2018. 8.0Moz 7.9Moz ‒ P&P reserves, net of mine depletion, 6.9Moz 7.1Moz
Slide 32: Production Bridge
DETAILS BY MINE & PROJECT PRODUCTION BRIDGE 2019 benefited from the start-up of Ity CIL Production variation Full Year 2019 vs 2018 Bridge Change in AISC 727koz (115koz) 612koz (4koz) (12koz) 651koz (54koz) 190koz (82koz) ($23/oz) +$91/oz n.a. +$298/oz n.a. n.a. FY-2018 Tabakoto FY-2018 Houndé Ity H
Slide 33: Ity Mine – CIL Operation, Côte d'Ivoire (Q4)
DETAILS BY MINE & PROJECT ITY MINE – CIL OPERATION, CÔTE D’IVOIRE Lower grade stockpiles used to supplement mill feed Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production decreased slightly as lower Production, koz AISC, US$/oz processed grades and recoveries were HL CIL partially offset by
Slide 34: Ity Mine – CIL Operation, Côte d'Ivoire (FY)
DETAILS BY MINE & PROJECT ITY MINE – CIL OPERATION, CÔTE D’IVOIRE A greater proportion of fresh ore is planned to be processed in 2020 FY-2019 INSIGHTS Production and AISC › Ity had its first gold pour in March 2019 with commercial AISC ($/oz) Production (koz) production declared in early Q2-2019 ›
Slide 35: Houndé Mine, Burkina Faso (Q4)
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Q4 benefited from higher throughput and lower strip ratio Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained flat as slightly higher Production, koz AISC, US$/oz throughput was offset by lower processed grades 76koz ‒ Mining focu
Slide 36: Houndé Mine, Burkina Faso (FY)
DETAILS BY MINE & PROJECT HOUNDÉ MINE, BURKINA FASO Potential to start mining Kari Pump in the latter portion of the year FY-2019 INSIGHTS Production and AISC › As guided, production decreased and AISC increased 277koz due to low grade stockpiles supplementing the mill feed and a shift to processing
Slide 37: Agbaou Mine, Côte d'Ivoire (Q4)
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Higher recovery rate compensated for lower mill throughput and grades Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained flat as a slightly Production, koz AISC, US$/oz higher recovery rate compensated for 44koz lower mill throu
Slide 38: Agbaou Mine, Côte d'Ivoire (FY)
DETAILS BY MINE & PROJECT AGBAOU MINE, CÔTE D’IVOIRE Harder ore expected to be mined in 2020 FULL YEAR 2019 INSIGHTS Production and AISC › As guided, production decreased marginally 141koz due to lower mill throughput and grades 138koz which were partially offset by a higher 115-125koz recovery rate
Slide 39: Karma Mine, Burkina Faso (Q4)
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Lower costs due to the benefit of mining and stacking primarily oxide ore Q4-2019 vs Q3-2019 INSIGHTS Production and AISC › Production remained fflat as an increase in Production, koz AISC, US$/oz stacked tonnage and recovery rates offset the 33koz
Slide 40: Karma Mine, Burkina Faso (FY)
DETAILS BY MINE & PROJECT KARMA MINE, BURKINA FASO Mining activity is expected to occur at the Kao North and GG1 pits in 2020 FULL YEAR 2019 INSIGHTS Production and AISC › As guided, production decreased due to lower 109koz 100-110koz grades associated with supplemented ore 97koz stacked from stockp
Slide 41: Conclusion
Q4-2019 & FY-2019 IN 1 REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 42: Investment Proposition
CONCLUSION INVESTMENT PROPOSITION Exposure to strong fundamentals and with upside potential STRONG FUNDAMENTALS › High quality asset base generating strong free cash flow yield › Capital allocation discipline with >20% ROCE target › Strong organic growth potential Immediate ATTRACTIVE VALUE PROPOSIT
Slide 43: Appendix
Q4-2019 & FY-2019 IN 1 REVIEW 2 FINANCIAL SUMMARY DETAILS BY MINE 3 AND PROJECT 4 CONCLUSION 5 APPENDIX
Slide 44: Ity Mine, Côte d'Ivoire
APPENDIX ITY MINE, CÔTE D’IVOIRE Maiden reserve delineated at Le Plaque Ity Site Map INSIGHTS › Exploration efforts are mainly focused on the Le Plaque target. Due to the success of the campaign, the initial budget of 71,000 meters was exceeded with a total of 83,436 meters of drilling completed, am
Slide 45: Exploration at the Houndé Mine, Burkina Faso
APPENDIX EXPLORATION AT THE HOUNDÉ MINE, BURKINA FASO Further reserves expected at Kari Area in H1-2020 INSIGHTS Houndé Site Map › Houndé was Endeavour’s largest exploration focus in 2019 with a total of 174,710 meters drilled on the near-mine Kari anomalies › A combined maiden Indicated resource of
Slide 46: Agbaou Mine, Côte d'Ivoire
APPENDIX AGBAOU MINE, CÔTE D’IVOIRE Short drilling campaigns conducted on near-mine targets Agbaou Site Map INSIGHTS › The 2019 exploration program began in Q3-2019, with full results pending from the 2,000 meters of diamond drilling and 5,100 meters of reverse circulation drilling conducted. An add
Slide 47: Karma Mine, Burkina Faso
APPENDIX KARMA MINE, BURKINA FASO 2019 program focused on testing the extensions of Kao deposits and infill drilling INSIGHTS Karma Site Map › The 2019 exploration program began in late Q3-2019 with 27,000 meters drilled, focused mainly on testing the extensions of Kao deposits and infill drilling a
Slide 48: Fetekro Greenfield Exploration
2019 FULL YEAR RESULTS FETEKRO GREENFIELD EXPLORATION Quickly increased to 1.2Moz of Indicated Resources INSIGHTS Simplified Map of the Fetekro Property Showing Lafigué › M&I resource: 1.2Moz at 2.54g/t › High quality resource: ‒ Amenable to open pit mining ‒ Preliminary metallurgical tests indicate
Slide 49: 2020 Guidance
APPENDIX 2020 GUIDANCE INSIGHTS Production Guidance › Group production is expected to increase to 680-740koz in 2020 at an AISC of $845-895/oz. Production is 2019 2020 FULL-YEAR expected to be higher and AISC lower during the latter (All amounts in koz, on a 100% basis) ACTUALS GUIDANCE portion of t
Slide 50: 2020 Guidance (continued)
APPENDIX 2020 GUIDANCE (continued) SUSTAINING COSTS INSIGHTS Capital Expenditure Guidance, $m › Ity: $4m, mainly related to heavy mining equipment components SUSTAINING NON-SUSTAINING › Houndé: Circa $50m, due to carryover of costs not incurred in 2019. Roughly CAPITAL CAPITAL $40m is related to was
Slide 51: Production and Cost Details by Mine (Quarterly)
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU ITY CIL ITY HL KARMA HOUNDÉ (on a 100% basis) Unit Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Q4-2019 Q3-2019 Q4-2018 Physicals Total tonnes mined – OP1 000t 6,341 6,236 7,04
Slide 52: Production and Cost Details by Mine (Yearly)
APPENDIX PRODUCTION AND COST DETAILS BY MINE On a yearly basis AGBAOU ITY CIL ITY HL KARMA HOUNDÉ (on a 100% basis) Unit FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 FY-2019 FY-2018 Physicals Total tonnes mined – OP1 000t 25,349 29,735 14,053 - 0 4,028 19,435 16,932 38,194 41,489
Slide 53: Working Capital and Taxes Paid
APPENDIX WORKING CAPITAL AND TAXES PAID Q4-2019 vs. Q3-2019 Working Capital Movement FY-2019 vs. FY-2018 Working Capital Movement (All amounts in US$m) Q4-2019 Q3-2019 Q4-2019 Comments (All amounts in US$m) FY-2019 FY-2018 2019 Comments Trade and other Trade and other +8 +17 Mainly due to VAT receiv
Slide 54: Reserves and Resources
APPENDIX RESERVES AND RESOURCES As of December 31, 2019 Fetekro Project 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 - 0.0 - Resources shown Tonnage Grade Content Probable Reserves - 0.0 -