CREATING A PREMIER AFRICAN GOLD PRODUCER
Corporate Presentation
February 2017
Corporate Presentation February 2017 Disclaimer & Forward - - PowerPoint PPT Presentation
CREATING A PREMIER AFRICAN GOLD PRODUCER Corporate Presentation February 2017 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
CREATING A PREMIER AFRICAN GOLD PRODUCER
Corporate Presentation
February 2017
1
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 respect to Endeavour’s plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “forecasts” and “anticipates”. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour’s most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.
Adriaan “Attie” Roux, Pr.Sci.Nat, Endeavour’s Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information in this presentation.
CREATING A PREMIER AFRICAN GOLD PRODUCER
Endeavour Mining Overview
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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 in Q4-2017 – Ity CIL Project feasibility study demonstrated potential for Ity to become another flagship asset
Long-Term Upside from Exploration
– Strategic review outlined potential to find 10-15Moz over the next 5 years at a discover cost of <$15/oz – Potential to significantly extend mine lives to beyond 10 years
CREATING A PREMIER AFRICAN GOLD PRODUCER
Shareholder distribution and geographic mix
Company Profile
Retail 7% Institutional 63% La Mancha 29% Management 1%
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Board Members
Wayne McManus Non-executive Director Ian Henderson Non-executive Director Sebastien de Montessus CEO & President & Director Naguib Sawiris Non-executive Director Michael Beckett Chairman, Non-executive Director Ian Cockerill Non-executive Director As of February 22, 2017 Olivier Colom Non-executive Director Livia Mahler Non-executive DirectorTop Shareholders
Rank Institution Name % of S/O 1 LA MANCHA HOLDING S.A.R.L. 28.1% 2 Van Eck Associates Corporation 13.7% 3 RBC Global Asset Management Inc. 3.3% 4 Fiera Capital Corporation 3.0% 5 M & G Investment Management Ltd. 2.9% 6 Liberty Metals & Mining Holdings, L.L.C. 2.6% 7 Ruffer LLP 2.5% 8 Sun Valley Gold, LLC 2.5% 9 Oppenheimer Funds, Inc. 2.2% 10 Maple Leaf Partners, L.L.C. 1.7%CREATING A PREMIER AFRICAN GOLD PRODUCER
5 10 15 20 25 30 1000000 2000000 3000000 4000000 5000000 6000000 7000000 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Volume, shares EDV share price, C$
Share Price Performance
Ticker TSX:EDV Shares in Issue 93.6 m Fully Diluted 94.6 m Share price C$26.77 Market cap US$1,920m Net Debt US$25m4
Strategic Milestones for 2018-2020
+ 900 koz
ANNUAL PRODUCTION
≤ 800$/oz
ALL IN CASH COST
10+ year
MINE LIFE IN OUR CORE ASSETS $1,137 $1,010 $922
2010 2011 2012 2013 2014 2015 2016 6+6 2017 2018 2019 Youga, Burkina Faso Nzema, Ghana Tabakoto, Mali Agbaou, Côte d'Ivoire Ity (Heap Leach), Côte d'Ivoire Karma, Burkina Faso (incl. pre-production) Houndé, Burkina Faso Ity (CIL), Côte d'Ivoire Group AISC
$895 83koz 167koz 220koz 317koz 462koz 517koz +900koz 584koz <$800
Assumes Ity construction starts H2-2017 and first gold production in 2019 with Heap Leach operation ending once CIL startsClear Path to Build a +900koz Producer at ≤ $800/oz AISC
2016
600-640koz $860-905
CREATING A PREMIER AFRICAN GOLD PRODUCER
4 Strategic Levers
1
OPERATIONAL EXCELLENCE PROJECT DEVELOPMENT UNLOCK EXPLORATION VALUE PORTFOLIO & BALANCE SHEET MANAGEMENT
2 3 4
4 Strategic Levers to Building a Premier African Gold Producer
5
Objective
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Sebastien de Montessus CEO & Director Adriaan “Attie” Roux
COO
Vincent Benoit
EVP CFO & Corporate Development
Patrick Bouisset
EVP Exploration & Growth
Jeremy Langford
EVP Construction Services
Morgan Carroll
EVP Corporate Finance & General Counsel
Henri de Joux
EVP People & Public Affairs
London Based Abidjan Based
Functions:
Functions:
All GMs Located on Site Management Focus Safety First Lean and Efficient Operations Hands-On Management Cash flow driven OPERATIONAL EXCELLENCE Hands-on Management Model With Teams Close to Operations
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CREATING A PREMIER AFRICAN GOLD PRODUCER
584Koz in 2016 +13% vs 2015
575koz
Production Guidance
610koz $895/oz in 2016 (3%) vs 2015
$870/oz
AISC Guidance
$920/oz Circa $135m 2016 +60% vs 2015
$135m
FCF Before Growth Projects Guidance
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OPERATIONAL EXCELLENCE Continued to meet guidance in 2016
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Free Cash Flow (before growth projects, WC, tax and financing cost)CREATING A PREMIER AFRICAN GOLD PRODUCER
Increased Production Decreased All-in Sustaining Costs Increased Cash Generation Low Lost Time Injury Frequency Rate
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OPERATIONAL EXCELLENCE Proven track record
$1,392/ozGuidance for the year
875-925koz 930-980koz 985-1,070koz
2017 Guidance
$150m
2013
$35m $135m $28m
2016
$85m
2015 2014
$1,392/oz $1,264/oz $1,157/ozFree cash flow before growth projects (and before WC, tax, and financing costs)
$1,240/oz $1,240/oz1
466koz 517koz 584koz 324koz
2013 2014 2017 Guidance 2016 2015
600
2015 2014 2013 2016
$860-905/oz
2017 Guidance
AISC, in US$/ozUS$895/oz US$922/oz 0.29 0.76 1.73 0.73
2015 2016 2013 2014 Lost Time Injury Frequency Rate (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period)
$1,010/oz $1,137/oz
CREATING A PREMIER AFRICAN GOLD PRODUCER
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Income generating activities
Association
Education
Australian High Commission
Direct financial support / community development
Healthcare / Water & Sanitation
facilities
Maintain a social license to operate Stakeholder Relationship Principles
OPERATIONAL EXCELLENCE CSR & stakeholder management at the foundation of long-term success
CSR strategy – Key Pillars & Recent Projects On-the-ground management
with longstanding West African experience
Stable communication channels
Local employment priority
directly impacted areas
Access to infrastructure
Water wells around Tabakoto
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Ity CIL (DFS)
Dugbe 1 (Hummingbird) Wa-Lawra (Azumah) Yanfolila (Hummingbird ) Mine life, years Tri-K (Avocet) Fekola (B2Gold) Natougou (Semafo) Mako (Toro) Bouly (NordGold) Kalana (Avnel)Ity CIL (PFS)
West African DFS Stage Projects Benchmark:
Mine life and All-in cost (including initial capex)
All-in Cash Cost, $/oz (AISC + Initial Capex)
Houndé
DFS10
Significant West African Construction Expertise:
– Core construction team has successfully developed projects together for +10 years – 7 projects built, $2.4B in capex – All projects delivered on time and within budget
PROJECT DEVELOPMENT Houndé and Ity CIL are top tier projects
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Bubble size represents average annual production = 100koz p.a. CREATING A PREMIER AFRICAN GOLD PRODUCER
PROJECT DEVELOPMENT Houndé is positioned to be Endeavour’s flagship low cost mine
Burkina Faso
Houndé
Ouagadougou
Essakane
(IAMGOLD)Taparko
(Nordgold)Youga
(MNG)Mana
(Semafo)Inata
(Avocet)Bissa Hill
(Nordgold)Yaramoko
(Roxgold)Bomboré
(Orezone)Konkera
(Centamin)Banfora
(Gryphon)Karma
gold pour expected in Q4-2017
reserves + significant exploration upside
AISC of US$709/oz
for owner-mining fleet
+30% at US$1,250/oz
$662/oz 184koz Year 2 $648/oz 218koz Year 3 231koz Year 9 to 10 Average $645/oz 116koz $496/oz Year 5 to 8 Average $901/oz Year 4 223koz 265koz $506/oz Year 1AISC/oz Production based on reserves, koz
Exploration upside expected to fill this shortfallLife of Mine Plan
2
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Long-life Low Cost Project
Robust Project Economics
(based on $1,250/oz)
Significant improvement expected in H1- 2017 Feasibility Study update
Sud discoveries and Verse Ouest
Well-positioned with strong liquidity sources to take final investment decision in H1-2017
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PROJECT DEVELOPMENT
Ity CIL Feasibility Study demonstrates potential for Ity to become another flagship asset
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$898/oz 53koz Years 10 to 14 Year 9 109koz $638/oz Year 8 124koz $554/oz Year 7 103koz $608/oz Year 6 133koz $622/oz Year 5 150koz $582/oz Year 4 185koz $500/oz Year 3 134koz $608/oz Year 2 193koz $409/oz Year 1 163koz $477/oz AISC/oz Production based on reserves, koz
165kozpa at AISC of US$507/oz
CREATING A PREMIER AFRICAN GOLD PRODUCER
+200 Targets 7,190 km2 10 Mining Leases 42 Exploration Licenses
390
km²
2,140
km²
510
km²
4,150
km²
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UNLOCK EXPLORATION VALUE Amongst Largest and Most Promising Portfolios in West Africa
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CREATING A PREMIER AFRICAN GOLD PRODUCER
4 3 1 6 5 2
0.5-1.5Moz 0.5-1.0Moz 4.0-6.0Moz
Greater Ity
2.5-3.5 Moz
Houndé
1.5-2.5Moz
Karma and Regional
0.5-1.0Moz
Côte d’Ivoire Regional Tabakoto Agbaou
Ambition to find 10-15Moz of Indicated Resources
Moz
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UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Ranking of Potential
last 4 years
available
results
reached critical size to make investment decision
targets and historical drill data
Randgold
expenses have caused mine life to be short
in 2016 with strong targets for 2017+
when production started in 2014 despite limited exploration (mainly focused on converting inferred)
and parallel trends
geochem anomolies
junior with lack of fund for exploration
added 2.5 years of mine life
exploration tenements in the country
exploration targets based on historic results
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$10m $15m $25m $30m $45m $55m $13/oz $20/oz $25/oz $15/oz $15/oz $11/oz Côte d’Ivoire Regional Karma and Regional Agbaou Tabakoto Houndé Greater Ity
Average discovery cost Exploration budget
Annual budget of $35-40m with anticipated average discovery costs <$15/oz
33% Côte d’Ivoire 50% Mali 17% Burkina Faso
5-year budget
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UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Low Discovery Costs
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CREATING A PREMIER AFRICAN GOLD PRODUCER
2017 8% 100% 13% 25% 18% 13% 23% 9% 4% 2021 100% 12% 7% 43% 27% 6% 2020 100% 13% 2% 35% 35% 6% 2019 100% 10% 4% 21% 20% 26% 20% 2018 100% 7% 3% 25% 20% 22% 23% Karma and Regional Regional CI Ity Agbaou Hounde Tabakoto
Priorities:
Priorities:
success driven
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UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: What are the priorities?
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 $1,150/oz $1,050/oz $1,100/oz $750/oz $1,000/oz $1,200/oz $850/oz $800/oz $950/oz $900/oz $700/oz $650/oz $600/oz $550/oz $500/oz $450/oz Mine life, years
SOLD
Agbaou
(175-180koz)Nzema
(100-110koz)Tabakoto
(150-160koz)AISC, US$/oz
Ity HL
(75-80koz)Ity CIL
165koz starting 2019
Karma
(100-110koz)Bubble size represents production Côte d’Ivoire Burkina Faso Ghana Mali
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CREATING A PREMIER AFRICAN GOLD PRODUCER
Possibility to run HL in parallel
Mine life as at 2016Youga
Decreased costs from >1,300/ozHoundé
+250koz starting Q4-2017
PORTFOLIO & BALANCE SHEET MANAGEMENT Increase Overall Quality of our Portfolio
Cut-back4
Karma with North Kao
AISC, $/oz
Gold Fields Golden Star Endeavour 2016A Endeavour 2015A Teranga Newmont IAMGOLD Kinross Resolute Nordgold Newcrest PerseusAverage mine life, years
AngloGold Ashanti Semafo Randgold AsankoBenchmark of West-African Producers
Bubble size represents production
Source: UBS Research, based on 2015A only West-Africa production. Mine life excludes expansion and development projects such as Kinross’ Tasiast Phase 2 and Resolute’s UG project Asanko based on 2017 guidance18
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Endeavour (output of strategic exploration review)PORTFOLIO & BALANCE SHEET MANAGEMENT Well Positioning Ourselves Against Our Peers
4
Significant Balance Sheet improvement
‒ $65m cash injection received from La Mancha in May 2016 following the True Gold transaction close ‒ $104m of net proceeds from bought deal financing to accelerate organic growth and exploration ‒ Free Cash Flow of c. $135m (before growth projects, WC, tax and financing cost)
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End of Dec 2016 End of June 2016
$83m
End of Sept 2015
$242m
1.7x 2014 (year-end)
$254m
1.8x
$25m
Net Debt to trailing 12-month Operating EBITDA ratio Net debt
Liquidity and Financing Sources
0.5x
Strong liquidity and financing sources to fund remaining Houndé capex spend of roughly $180m Further headroom potential to fund exploration and Ity CIL with free cash flow
Undrawn RCF
Cash Position
4
PORTFOLIO & BALANCE SHEET MANAGEMENT Healthy financial structure
$335m
As of Dec 30st, 2016 (in US$ million) Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Cash 125 110 62 Less: Equipment finance lease 10 13 16 Less: Drawn portion of $350 million RCF 140 240 300 Net Debt/(Cash) Position 25 144 254 0.1x
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HEALTHY FINANCIAL STRUCTURE Well positioned to fund growth
4
Objective to keep leverage in a maximum range of 0.5x-1.0x
$125m $210m Existing cash balance Undrawn RCF ~$180m ~$300m
Funding requirements Liquidity Sources
Ity Equipment Financing (expected) Remaining Houndé project costs Ity CIL project costs ~$480m
Potential liquidity buffer (@ $1,250/oz)
As of end December 2016Strong Liquidity Sources and Cash Flow generation to fund internal growth
mine operations 2017-2018 including Houndé start in Q4 2017 (@$1,250/oz)
USD1,200-1,400/oz) covering c. 50% of production from Apr 16 to June 2017 protects cash flows while Houndé is being built
Room to manoeuvre between debt and own cashflow
CREATING A PREMIER AFRICAN GOLD PRODUCER
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Reset Strategy
Balance Sheet Management
Streamline Organization
Improve Governance
Manage Portfolio
Deleverage Balance Sheet
right in True Gold deal (c.$63m) and successful equity raise (c.US$110m) and cash flow generation
Improve Investor Relations
Key 2016 Achievements
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Near-Term Growth
from Projects
Immediate Cashflow
from Production
Long-Term Upside
from Exploration Endeavour now offers exposure to both near and long-term growth potential, in addition to current production
Investment Highlights
with an accomplished management team and a healthy balance sheet
CREATING A PREMIER AFRICAN GOLD PRODUCER
2017 Outlook
(on a 100% basis)
2016 Actual 2017 Guidance Agbaou
195,505 175,000
Tabakoto
162,817 150,000
Nzema
87,710 100,000
Ity
75,867 75,000
Karma
61,817 100,000
Group-wide Production
583,712 600,000
(In US$/oz)
2016 Actual 2017 Guidance Agbaou
~535 660
Tabakoto
~1,030 950
Nzema
~1,170 895
Ity
~790 740
Karma
~750 750
Mine-level AISC
~830 800
Corporate G&A
~47 37
Sustaining exploration
~18 23
Group AISC
~895 860
Production Guidance, koz AISC Guidance, US$/oz
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2017 GUIDANCE Production expected to increase and AISC to decrease
25
Exploration Guidance, $m AISC Guidance, $/oz
(In $m)
2017 Guidance
Agbaou 7 Tabakoto 9 Ity 10 Karma 4 Houndé 5 Exploration Expenditures for Mines 35 Grassroots exploration expense 5 Total Exploration Expenditures 40
(in $m)
Sustaining Capital Non-Sustaining Capital Growth Projects
Agbaou 20
20
5 12
10 4 10 Karma 10 19 35 Houndé
Total 65 35 225
(in US$m)
$1,100/oz $1,200/oz $1,300/oz Net Revenue (based on production guidance mid-point) 685 725 785
Mine level AISC costs (based on AISC guidance mid-point) (510) (510) (510) Corporate G&A (21) (21) (21) Sustaining exploration (14) (14) (14)
Group AIS Margin 140 180 240
Non-sustaining mine exploration (20) (20) (20) Non-sustaining capital (35) (35) (35)
Free Cash Flow before growth projects
(Mine cash flow less corporate costs before WC, tax and financing cost)
85 125 185 Free Cash Flow Guidance based on Production and AISC Guidance Mid-points, $m
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2017 GUIDANCE Free Cash Flow Before Growth Projects Expected to Increase
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Details by Mine and Project
27
Agbaou Mine – Côte d’Ivoire
Recent and Upcoming catalysts
Accomplished
Upcoming
representing up to 50% of tonnes processed
Quick Facts (on 100% basis)
Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources (incl. of Reserves) M&I: 14.4Mt @ 2.5 g/t for 1.180Moz Inferred: 1.2Mt @ 1.7 g/t for 0.065Moz Reserves 13.2Mt @ 2.4 g/t for 1.027Moz Processing Rate Up to 2.6 Mtpa Gravity/CIL plant - oxides; 1.6 Mtpa fresh Open Pit Strip Ratio 8.1 to 1 (2016A) Gold Recovery Achieving 95% at present; 92.5% design Mining Type Open Pit – Contractor Mining (BCM) Production AISC (mine-level) 2014A– $621/oz 2015A – $576/oz 2016 Prelim – $535/oz 2017E - $660-700/oz Expected Mine Life 7 years from current Reserves Royalty 3% - 5% sliding scale Corporate Tax 25% (5 year corporate tax holiday)
2015A 2014A 196koz 147koz 2016 Prelim 181koz 2017E 175-180 koz Agbaou Mine Abidjan Ity MineCôte d’Ivoire
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Agbaou Mine – Côte d’Ivoire
Production and AISC
535 $525 Q1-2016 43koz Q4-2015 Q4-2016 $550 Q2-2016 Q3-2016 46koz $525 49koz 57koz 52koz $537 Production, koz AISC, US$/oz
Q4-2016 Insights
‒ Benefit from the end of the rainy season ‒ Greater mix of higher grade transitional
processed 2017 Outlook
mid-2016) provides the flexibility to process higher grade transitional ore while maintaining a fairly constant ore blend and throughput over the remaining life of mine
is expected to return to a more normalized and sustainable production rate of 175- 180koz in 2017 with fresh ore representing up to 50% of tonnes processed
$660-700/oz, as higher grade transitional
unit costs and lower throughput
Insight: Benefit of higher grades
709kt 743kt 654kt 748kt 721kt 2.50 g/t 2.21 g/t 2.15 g/t 2.05 g/t 2.05 g/t Q4-2016 Q3-2016 Q2-2016 Q1-2016 Q4-2015 Tonnes milled, kt Grade milled, g/t Au
Agbaou Site Map 29
Agbaou Exploration
which commenced in April 2016 based on previous geophysics and soil geochemistry results, is focused
‒ North pit and South pit extensions, ‒ Agbaou South target ‒ Niafouta target ‒ Generating targets beyond the current resource boundaries.
extension of mineralized zones
has been planned for 2017, totaling approximately 45,000 meters of drilling
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Agbaou Numerous Gold in soil anomalies over Mag > 50 ppb
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Agbaou Exploration – 5 years targets
Côte d’Ivoire
Auger & RC drilling
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Agbaou – Exploration Potential
extension to renew resources and compensate for reserves depletion. As such, no preparation of future targets was done (nearly no inferred left)
resources to be converted in 2017/2018 into indicated resources & reserves
replace the production for a few additional years
License (at less than 20 km of the Agbaou mill) has started in 2016. Any new deposit discovered on this license also has the potential to further extend the mine life 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*
*Targeting to discover between 0.5 to 1.5 Moz with average grade between 2 and 3 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 32
CREATING A PREMIER AFRICAN GOLD PRODUCER
Quick Facts (on 100% basis)
Ownership 80-90% Endeavour depending on pit, remainder government of Mali Resources (incl. of Reserves) M&I: 18.5Mt @ 3.1 g/t for 1.844Moz Inferred: 9.0Mt @ 3.6 g/t for 1.023Moz Reserves 6.4Mt @ 3.5 g/t for 0.725Moz Open Pit Strip Ratio 10.4 to 1 (2016A) Processing Rate 1.4 Mtpa Gravity/CIL Plan Gold Recovery 92% - 95% Mining Type Tabakoto (UG), Segala (UG) & Kofi C Open Pit Mine Production AISC (mine-level) 2014A– $1,335/oz 2015A –$1,067/oz 2016 Prelim – $1,030/oz 2017E - $950-990/oz Expected Mine Life 4+ years from current Reserves Royalty 6% Corporate Tax 30%
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Tabakoto Mine – Mali
Recent and Upcoming catalysts
Accomplished
Upcoming
centralizing procurement, fleet replacement and improvement equipment availability and mining efficiency
2016 Prelim 163koz 2015A 2017E 152koz 127koz 2014A 150-160koz Tabakoto Mine BamakoMali
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Tabakoto Mine – Mali
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CREATING A PREMIER AFRICAN GOLD PRODUCER
Production and AISC
Q4-2016 Insights
grades from Kofi C and Segala and increased mill throughput following the end of the rainy season. 2017 Outlook
focus in 2017, with AISC expected to decrease to $950-990/oz.
programs include: ‒ Overhead reduction and centralizing procurement ‒ Improving mine efficiency by improving equipment availability and replacing fleet
2017 to 150-160koz as grades are expected to slightly decrease due to open pit mining transitioning from Kofi C to Kofi B in the second half of the year, and underground mining sequence.
$930 $1,071 $1,061 $1,071 $1,119 +30% Q4-2016E 48 Q3-2016 37koz Q2-2016 39koz Q1-2016 39koz Q4-2015 42koz AISC, US$/oz Production, koz
Mine output out-perfomed mill throughput
448kt 398kt 368kt 380kt 403kt 381kt 399kt 406kt Q3-2016 Q2-2016 Q1-2016 Q4-2016 Processed grades, g/t Au Tonnes Processed, kt Tonnes Mined, kt 3.10 g/t 3.31 g/t 3.11 g/t 3.90 g/t
Tabakoto Site Map 35
Tabakoto Mine – Exploration
Kreko Fougala Kofi B North
completed on the Tabakoto, Fougala and Kreko targets which confirmed two mineralized trends
Fougala and Kreko
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its relatively short mine life and significant potential.
approximately 72,000 meters of drilling has been planned for 2017.
delineating resources within trucking distance at discoveries made in 2016 and on new targets, and underground drilling.
1,311 hole auger drilling program have been completed since the beginning of the year
75 targets identifIed, 7 Priority 1 (2017) Areas under transported cover identifIed
Tabakoto Surface Target priority ranking
Segala S Kreko Fougala Dioulafoundou S Famakan
Yatia SE Sanou Sira Dabo S Sanou Sira S
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KOFI Land Package Main Target Areas
Auger drilling RC drilling
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Mali Exploration – Tabakoto and Kofi Land Packages
Targeting discovery of between 1.5 to 2.5 Moz at an average cost of $15/oz
*Targeting to discover between 1.5 to 2.5 Moz with average grade between 2 and 4 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 38
CREATING A PREMIER AFRICAN GOLD PRODUCER
within18 to 24 months to replace Kofi C and further Kofi B/A Linear/ Betea production while pursuing exploration near Kofi C/B/A
exploration)
along this trend with the potential be a standalone operation since it is located more than 40 km away from Tabakoto facilities
300koz for the next 2-3 years. Afterwards, although mineralizations continue at depth, additional exploration will be based on economic viability of the production
Quick Facts (on 100% basis)
Ownership 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% private Resources (HL + CIL) (incl. of Reserves) M&I: 61.4Mt @ 1.6 g/t for 3.106Moz Inferred: 14.1Mt @ 1.5 g/t for 0.687Moz Reserves (HL+CIL) 30.4Mt @ 1.7 g/t for 1.6Moz Open Pit Strip Ratio 4.2 to 1 (2016A) Processing Rate 950ktpa HL Gold Recovery 81% Mining Type Open pit / Heap Leach Production AISC (mine-level) 2016 Prelim – $790/oz 2017E - $740-780/oz Mine life 3 years from current Reserves + addition potential Royalty 3% - 5% sliding scale Corporate Tax 25%
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Ity Mine – Côte d’Ivoire
Recent and Upcoming catalysts
Accomplished
core low-cost asset Upcoming
years remains under review
81koz 2016 Prelim 2015A 76koz 75-80koz 2017E Agbaou Mine Abidjan Ity MineCôte d’Ivoire
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Ity Mine – Côte d’Ivoire
17koz 19koz $850 $621 $775 21koz Q4-2015 $710 22koz Q1-2016 Q2-2016 Q3-2016 15koz $724 Q4-2016 AISC, US$/oz Production, koz
Q4-2016 Insights
end of the rainy season which allowed for increased throughput
during the quarter which positively contributed to Ity's Q4 production increase 2017 Outlook
2017, at 75-80koz while AISC are expected to slightly decrease to $740-780/oz due to higher grades
Heap leaching operations in parallel for the first few years is currently under analysis.
Production and AISC Ity mine extraction
295kt 271kt 304kt 303kt 2.00 g/t 1.90 g/t 2.10 g/t 2.53 g/t Q2-2016 Q3-2016 Q1-2016 Q4-2016 Grade milled, g/t Au Tonnes stacked, kt
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Summary of Independent Feasibility Study for CIL Project
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 Gold content processed, Moz 1.88Moz Gold recovery, % 83% Gold production, Moz 1.56Moz Mine life, years 14 years Average annual gold production, koz 114Koz AISC, $/oz $603 Capital Cost Upfront capital cost, $m $282m Equipment lease $25m Economic Returns base on US$1,250/oz After-tax Project NPV5%,$m 411 After-tax Project IRR, % 36% Payback, years 2.1
Lead Consultant: Contributions from:
Source: Ity CIL Feasibility Study41
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Ity CIL Project DFS highlights Independent CIL Feasibility Study prepared by:
Significant Improvement Expected in Updated Feasibility Study
H1-2017 update expected to include:
Colline Sud discoveries
Ouest following recently completed infill drilling program
Daapleu and Mont Ity based planned infill drilling program
Significant opportunity beyond the potential to delineate additional resources at known deposits and make new discoveries
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Additional Potential for Resource Conversion
Deposits on a 100%
inclusive of reserves. Probable Reserves Indicated Resources Inferred Resources Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content (Mt) (Au g/t) (Au koz) (Mt) (Au g/t) (Au koz) (Mt) (Au g/t) (Au koz) Open Pits Daapleu 19.3 1.51 936 19.9 1.51 965 4.3 1.15 160 Mont Ity / Ity Flat 3.8 2.19 268 7.5 2.19 527 11.1 1.92 684
Gbeitouo 2.6 1.35 112 2.9 1.35 124 0.3 1.48 13 Walter 1.9 1.22 73 2.1 1.21 81 0.7 1.32 28 Zia NE 4.8 1.24 192 7.7 1.31 325 4.0 1.39 179 Bakatouo
3.07 475 0.8 2.86 70 Colline Sud
2.13 40 0.5 2.53 38 Total Open Pits 32.4 1.52 1,580 45.4 1.73 2,537 21.7 1.68 1,172 Existing Stockpiles Aires 5.8 1.09 202 5.8 1.09 202 0.2 0.78 6 Teckraie 2.8 1.07 97 2.8 1.07 97 0.1 0.55 2 Verse Ouest
0.85 230 Total Stockpiles 8.6 1.08 300 8.6 1.08 300 8.7 0.85 238 Total 41.0 1.42 1,880 54.1 1.63 2,837 30.4 1.44 1,410
Potential includes:
recently discovered Bakatouo and Colline Sud deposits and the results from the ongoing 11,700 meter reverse-circulation (“RC”) and diamond-drilling (“DD”) program to test their extensions and conduct infill drilling.
potential on both Daapleu and Mont Ity following the completion of the planned 33,000 meter in-fill drilling program
following the recent completion
the in-fill drilling program
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Ity Mine – Exploration:
High-grade Bakatouo discovery
September 2016 Indicated Inferred Cutoff Grade g/t Pit Shell Constraint $ kt g/t Au koz kt g/t Au koz All Ore 4 807 3.07 474 188 2.87 70 0.50 $ 1 500 4 632 3.13 466 645 2.95 61 0.50 $ 1 250 Oxide / Transitional Ore 1 373 3.73 165 170 4.19 23 0.50 $ 1 500 1 317 3.81 161 153 4.40 22 0.50 $ 1 250
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Ity Mine – Exploration
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.
totaling approximately 50,000 meters has been planned for 2017
‒ Infill drilling at the Daapleu and Mount Ity deposits ‒ Infill drilling and extension drilling at the new Bakatouo and Colline Sud discoveries ‒ Conducting initial drilling campaigns
the Yacetouo and Vavoua targets
Ity Mine Drilling Targets
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Ity: New High Quality Near Mine Exploration Targets
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Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu
10 km radius
Côte d’Ivoire
Auger drilling RC drilling
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48
Ity Mine – Exploration
80km underexplored Birimian corridor
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underexplored Birimian corridor on- trend with its Ity mine in Côte d’Ivoire
the Ity district from 178km² to 664km2.
Toulepleu (382km2) exploration tenements were obtained on a 100%
tenement (153km2) was re-obtained
conducted on the 80km underexplored portion corridor along the Ity trend in 2017
Ity Mine Birimian corridor
Greater Ity Regional Gold in Soil (> 100 ppb) Anomalies
Birrimian meta sediments and green belt Gnamapleu Granite-Gneiss No Geochemical data at all No Exploration Historical Sparse 400x100m Grid on PR462 Except on few selected targets PR558 Le Plaque Area Several Targets GBAMPLEU Mt BA Area Several targets GUEYA area Several targets PR609 East Cavally Several Targets
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Greater Ity: 2017 – 2021 Exploration Targets Toulepleu
Auger drilling RC drilling
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EDV Controlled Greater ITY TREND SEMAFO Controlled MANA TREND
How significant is Greater Ity area?
SEMAFO Mana (BF) vs EDV Greater Ity (CI) trend size comparison
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Potential of Greater Ity Exploration
for target generation in late 2016 (Mag/Spectro/VTEM ~700 Km2)
for multi-millions ounce deposits or group of deposits which may constitute future stand alone operations (heap leach and or CIL)
around Ity, the targeted new ounces only represent the same number of ounces that have been already produced and discovered over the 35 km² of the mine present footprint. Targeting discovery of between 4 to 6 Moz at an average cost of $11/oz
*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 nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 52
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53
Nzema Mine – Ghana
Recent and Upcoming catalysts
Accomplished
improve the mine’s economics, operating margins and in the preservation of the mine’s reserves in-situ
Upcoming
Quick Facts (on 100% basis)
Ownership 90% EDV, 10% government of Ghana Resources (incl. of Reserves) M&I: 34.6Mt @ 1.3 g/t for 1.490Moz Inferred: 5.9Mt @ 1.3 g/t for 0.244Moz Reserves 4.7Mt @ 2.4 g/t for 0.356Moz Open Pit Strip Ratio 8.3 to 1 (2016A) Processing Rate 1.6 Mtpa Gravity/CIL plant Gold Recovery 91% to 75% depending on ore type Mining Type Open Pit – Contractor Mining (BCM) Production AISC (mine-level) 2014A– $1,036/oz 2015A – $1,064/oz 2016 Prelim – $1,170/oz 2017E - $895 -940/oz Expected Mine Life 4 years from current Reserves Royalty 5% (+1% 3rd party at Adamus pits) Corporate Tax 35%
2015A 115koz 2014A 110koz 88koz 2016 Prelim 2017E 100-110koz Accra Nzema MineGhana
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Nzema Mine – Ghana
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20koz $1,266 $1,133 23koz Q1-2016 $1,158 Q4-2015 20koz Q4-2016 24koz $1,120 Q3-2016 24koz $1,136 Q2-2016
AISC, US$/oz Production, koz
Production and AISC
Q3-2016 Insights
previous quarter as the higher grades mined was offset by lower purchased ore grades
in 2016 and is expected to be completed in Q1-2017. 2017 Outlook
to generate healthy cash flows for the coming years
from the Adamus pit following the cut- back, production is expected to increase to 100-110koz in 2017 while AISC are expected to decrease to $895-940/oz.
Adamus pit, pre-stripping at the Bokrobo deposit is expected to start in the second half of the year.
Adamus Pit Push-back
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Karma Mine – Burkina Faso
Recent and Upcoming catalysts
Accomplished
Upcoming
Karma Mine Quick Facts (1) (on 100% basis)
Ownership 90% EDV, 10% Burkina Faso Resources (incl. of Reserves) M&I: 75.2Mt @ 1.08 g/t for 2.621Moz Inferred: 65.3Mt @ 1.13 g/t for 2.362Moz Reserves 33.2Mt @ 0.89 g/t for 0.949Moz Processing Rate 4.0mtpa Heap Leach Gold Recovery 87% Mining Type Shallow open pit and free digging material with no blasting required, low strip ratio Production AISC (Mine-level) 2016 Prelim – $750/oz 2017E - $750 -780/oz Mine life 8 years mine life based on reserves + 2.5 years from North Kao deposit (inferred resource) Tax regime 3% - 5% sliding scale royalty / 17.5% Corporate tax
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62koz 2017E 2016 Prelim 100-110kozKarma Update
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Q4-2016 Insights
October 1, 2016
grade Rambo pit complemented ore feed from the GG2 pit and stacking capacity continued to improve 2017 Outlook
100-110koz as higher grade Rambo ore feed will complement that of the GG2 pit with contribution from the Kao pit in the later portion of the year. In addition, stacking capacity is expected to increase in the second half of the year following the completion of the plant optimization efforts.
800/oz
further increase in the second half of the year following the replacement of the front-end and
expected to amount to $35 million.
9,985oz 9,754oz 9,109oz 7,381oz 6,854oz 6,174oz 6,026oz June August October September July December November
Production, koz
Producing at a run-rate of 100-110koz per annum Process throughput continues to ramp-up
Process optimization 4.0 Mtpa Capacity expected by mid-2017 Ramp-up phase December 1.5 Mtpa June September 2.5 Mtpa 3.0 Mtpa
NORTH KAO RESERVE CONVERSION EXTENDED MINE LIFE TO +10 YEARS
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confirms the continuity of the previous inferred resource and improves the grade profile
amenable to heap leach processing converted to indicated status
53% over the previous inferred grade to 1.22 g/t Au
converted to reserves, extending Karma’s mine life to beyond 10 years
structure remains open to the north and the potential exists for additional sub- parallel zones
KAO North 2016 Drilling Section
Infill Drilling Confirms Mineralization Continuity
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Karma - Exploration
exploration program totaling approximately 30,000 meters has been planned to drill near- mill targets such as Rambo West and Yabonsgo
resource drilling,
targets have potential to add up to 5 additional years of mine life with still on- going evaluations
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2017 Targets: YABONSGO Target (<10km from GG1)
AC RC
Yabonsgo is one of our next priority target
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2017 Targets: Rambo West
AC RC Granodiorite sediments
Rambo West is a near-mine obvious target
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Karma Exploration
Rambo West)
potential to add up to 5 additional years of mine life with still on- going evaluations
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 ~$15M to extend mine life to 15 years*
*Targeting to discover between 0.5 to 1.0 Moz with average grade between 1.0 and 1.5 g/t Au. The potential quantity of ounces is conceptual in nature since
there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 62
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Quick Facts (on 100% basis)
Ownership 90% EDV, 10% Burkina Faso Status Fully permitted, construction launched Production start date First gold pour expected Q4 2017 Resources (incl. of Reserves) M&I: 37.9Mt @ 2.1 g/t for 2.551Moz Inferred: 3.2Mt @ 2.6 g/t for 0.274Moz Reserves 30.6Mt @ 2.1 g/t for 2.075Moz Mine Type Open pit LOM Strip Ratio 8.4 Processing Rate 3.0 Mtpa Gravity / CIL plant Gold Recovery 93% Upfront Capital (US$M) $328m, inclusive of $47m for the owner-mining fleet
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Houndé Project – Burkina Faso
Houndé Project OuagadougouBurkina Faso
Karma ProjectLOMP Summary (on 100% basis)
Processing Total ore processed, Mt 29.7 Gold grade, g/t 2.15 Contained gold, koz 2,057 Recovery rate, % 93% Production, koz 1,906 Operating Costs Mining costs, $/t moved 2.17 Processing costs, $/t 13.36 Site G&A, $m/yr 9.8 AISC , US$/oz 709
Economic Returns1
Gold Price (US$/oz) $1,150 $1,200 $1,250 $1,300 1,350 After-tax Project NPV (5%) $230 $286 $342 $398 $437 After-tax Project IRR 24% 28% 32% 36% 39% Payback, years² 2.7 2.4 2.2 2.0 1.8
1Based on 100% equity funding and equipment lease financing ²From production startCREATING A PREMIER AFRICAN GOLD PRODUCER
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Houndé Construction is progressing on-time and on-budget
Significant achievements to date:
Construction is progressing as planned, with over 50% completed by year-end Over 2 million man-hours have been worked without LTI The 38km long, 91kv overhead power line construction is 52%
Open pit pre-strip mining at the Main Vindaloo open pit, adjacent the processing facility, commenced in late 2016. Detailed engineering of the processing facility along with the design HAZOP has been completed, also ahead of schedule in November 2016. CIL ring beam concrete pour was achieved in early August 2016, and the SAG and Ball Mill first lift on both plinths was completed by year-end. The construction of the water harvest dam decant tower is complete, with water already being pumped to the water storage dam two months ahead of schedule. Construction of the 300-person permanent accommodation village is approaching completion. Over 2,000 personnel including contractors are currently employed
Full back-up 26Mw backup power station has been awarded to JA
The land compensation process has been successfully completed with resettlement commencing in early 2017.
Incurred Capex (end of Dec.) $100m Committed Capex (end of dec) $210m Total Capex (incl. $26m contigency) $328m
Procurement is approximately 60% complete Pouring Crusher West Wing Wall
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Houndé Exploration Upside
65
covers +1,075km² within Burkina Faso’s highly prospective Birimian belt
the Vindaloo trends
were identified by previous limited drilling campaigns but remain largely untested
– All located within 20km from the planned mill – High grade targets (+5g/t) will be explored in priority
drilling exploration, activities will resume in 2017 with a $5 million program totaling approximately 45,000 meters.
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Exploration Targets in Proximity to the Planned Mill
Houndé Exploration: 2017-2021 Main Promising Targets
RC drilling Auger drilling
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Houndé Exploration – Burkina Faso
Birimian greenstone belt of Burkina Faso
Vindaloo type within these licences
them remain undeveloped
2017
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*
*Targeting to discover between 2.5 to 3.5 Moz with average grade between 1.8 and 2.5 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 67
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Appendix
Endeavour is backed by La Mancha
30%
holding
31%
holding
Sawiris family’s mining investment vehicle
White Foil mines
acquisition of the Cowal mine
cap to ~A$3.2B, since announcement of strategic partnership
Partnership Announced
the acquisition of Truegold
US$1.8B market cap since announcement of strategic partnership
The Sawiris family is present across various sectors and businesses, ranging from construction and fertilizers to real estate and telecommunications
Long-term growth supportive investor with focus on creating regional leaders
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Partnership Announced CREATING A PREMIER AFRICAN GOLD PRODUCER
5 10 15 20 25 30 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16Insights:
program
seasonal effect
collar premiums
Capex
+$10m
($6m)
restructuring costs and office consolidation
Option exercises +$13m Bought deal proceeds +$106m Net of SAR and PSU payments ($4m)
Net Free Cash Flow Breakdown
*Includes financial fees, hedge settlements, realized loss on derivative financial instruments, realized foreign exchange loss
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CREATING A PREMIER AFRICAN GOLD PRODUCER First 9 months ended US$m 2016 2015 Free cash flow (before Hounde, Karma, working capital, tax & financing costs) 100 72 Hounde project costs (45) (5) Karma proceeds from sales less mining costs capitalized and capital expenditure (1) Change in capital project working capital (24) Free cash flow (before operating working capital, tax & financing costs) 30 68 Working capital changes as per statement of cash flows (19) (21) Taxes paid (12) (6) Interest paid (10) (9) Cash settlements on hedge programs and gold collar premiums and share appreciation rights (15) (4) Other (foreign exchange gains/losses and other) (4) (16) Free Cash Flow before other items (31) 12 Cash received for Youga mineral property interests (net) 22 Bridge loan advanced to True Gold (15) True Gold cash acquired, less acquisition COC payments, less acquisition expenses (2) Restructuring costs (18) La Mancha anti-dilution proceeds with True Gold, Bought Deal proceeds, share option exercises, net of equity linked payments (SARs and PSU’s) 180 RCF, debt and lease repayments (109) (42) Cash inflow for the period 28 (30)
1 2 3 4 7 5 8 9 6 10
Adjusted Net Earnings Breakdown
71
Insights: 1. Youga results are removed due to disposal of the mine 2. Legacy gold hedge caused losses due to increased 2016 gold price and FX movements 3. Increased due to mark-to-market
4. Non-recurring costs, associated with True Gold transaction, closure of Vancouver and Accra
5. Shares outstanding increased due to True Gold acquisition
CREATING A PREMIER AFRICAN GOLD PRODUCER Nine months ended (US$m) 30-Sep-16 30-Sep-15 Total net earnings 17 57 Youga discontinued operations 3 (9) Loss (gain) on financial instruments 20 (3) Stock-based payments 9 3 Acquisition and restructuring costs 25 Deferred income tax expense (recovery) (6) Adjusted net earnings after tax 74 42 Attributable to non-controlling interests 22 14 Attributable to shareholders of the Corporation 51 29 Weighted average number of outstanding shares (million) 76 41 Adjusted net earnings per share (basic) from continuing operations $0.67 $0.70
1 2 3 4 5
Production and Cost Details by Mine
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1) Includes waste capitalized 2) Includes waste capitalized adjustment (on a 100% basis) Agbaou Nzema Tabakoto Ity 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 Total ore tonnes – OP 000t 651 654 706 222 213 231 160 148 123 200 383 Open pit strip ratio1 W:t ore 9.6 8.0 6.1 11.8 7.7 4.7 8.8 10.5 16.3 3.7 3.1 Total tonnes mined – UG 000tOn a quarterly basis
Production and Cost Details by Mine
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For the 9 months period ended 2016 and 2015
(on a 100% basis) Agbaou Nzema Tabakoto Ity3 Unit
9-months 2016 9-months 2015 9-months 2016 9-months 2015 9-months 2016 9-months 2015 9-months 2016Physicals Total tonnes mined – OP1 000t
18,864 15,331 6,410 6,707 5,505 6,909 4,630Total ore tonnes – OP 000t
2,123 2,065 712 1,031 454 383 870Open pit strip ratio1 W:t ore
7.9 6.4 8.0 5.5 11.1 17.0 4.3Total tonnes mined – UG 000t
000t
000t
2,106 1,917 1,333 1,337 1,186 1,195 878Average gold grade milled g/t
2.2 2.2 1.8 2.3 3.2 3.1 2.2Recovery rate %
97% 97% 85% 87% 94% 93% 94%Gold ounces produced
Gold sold
Unit cost analysis Mining costs - Open pit $/t mined
2.2 2.6 4.8 4.6 3.5 2.7 3.0Mining costs – Underground $/t mined
$/t milled
6.7 6.8 12.9 14.8 21.4 22.9 15.2Site G&A $/t milled
4.7 6.2 6.6 6.7 12.3 15.7 10.2Cash cost details Mining costs - Open pit1 $000s
40,883 40,098 30,958 30,702 19,107 18,327 13,998Mining costs -Underground $000s
$000s
14,143 12,998 17,151 19,790 25,377 27,344 13,382Site G&A $000s
9,813 11,866 8,746 8,992 14,568 20,159 8,995Purchased ore at Nzema $000s
$000s
(4,873) (4,877) (4,284) (9,640) (9,672) (24,492) (3,317)Cash costs for ounces sold $000s
59,966 60,085 69,733 76,094 96,736 90,745 33,018Royalties $000s
6,531 5,431 4,198 5,890 8,613 7,731 2,683Sustaining capital $000s
7,973 10,801 1,212 9,942 17,112 17,024 7,270Cash cost per ounce sold $/oz
430 466 1,099 866 843 823 566Mine-level AISC per ounce sold $/oz
534 592 1,184 1,046 1,067 1,048 737 1) Includes waste capitalized 2) Includes waste capitalized adjustment 3) Ity’s production and AISC is excluded for the pre-November 28, 2015 acquisition period.Production and Cost Details by Mine
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*Includes waste capitalizedOn a quarterly basis
Agbaou Nzema Tabakoto Ity Karma (on a 100% basis) Unit Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Total tonnes mined – OP* 000t 6,518 6,877 4,924 2,885 2,848 1,341 1,593 1,569 2,423 1,472 948 375 4,022 Total ore tonnes – OP 000t 674 651 753 288 222 278 195 160 137 316 200 63 782 Open pit strip ratio* W:t ore 8.7 9.6 5.5 9.0 11.8 3.8 7.2 8.8 16.6 3.7 3.7 4.9 4.1 Total tonnes mined – UG 000tFor the years ended 2016 and 2015
Agbaou Nzema Tabakoto Ity Karma (on a 100% basis) Unit FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 Total tonnes mined – OP* 000t 25,382 20,447 9,295 8,144 7,098 9,333 6,102 375 8,753 Total ore tonnes – OP 000t 2,797 2,818 1,000 1,310 649 520 1,186 63 1,879 Open pit strip ratio* W:t ore 8.1 6.3 8.3 5.2 10.4 17.2 4.2 4.9 3.7 Total tonnes mined – UG 000tReserve and Resource Table
Resources inclusive of reserves
P&P Reserves M&I Resources Inferred Resources (Mt) Au g/t (koz) (Mt) Au g/t (koz) (Mt) Au g/t (koz) Agbaou Mine 13.2 2.42 1,027 14.4 2.54 1,180 1.2 1.71 65 Tabakoto Mine 6.4 3.50 725 18.5 3.09 1,844 9.0 3.55 1,023 Nzema Mine 4.7 2.35 356 34.6 1.34 1,490 5.9 1.28 244 Ity Mine & CIL Project 30.4 1.65 1,613 61.4 1.57 3,106 14.1 1.52 687 Karma Mine 33.2 0.89 949 75.2 1.08 2,621 65.3 1.13 2,362 Houndé Project 30.6 2.11 2,075 37.9 2.09 2,551 3.2 2.62 274
Total 6,744 12,793 4,655 Attributable 5,405 10,238 3,852
GoldPrice and Cut-off Grades Resources Gold price Resource lower cut-off grade Reserves Gold Price Reserve lower cut-off grade * US$/oz g/t Au US$/oz g/t Au Agbaou Mine 1,500 0.5 1,350 0.6 to 0.8 Tabakoto Mine 1,350 to 1,600* 0.5 to 1.5* 1,250 1.1 to 1.9 Nzema Mine 1,500 0.5 1,250 0.8 to 1.9 Ity Mine & CIL Project 1,500 0 to 0.5* HL: 1,250 CIL: 1,150* 0.6 to 1.5 Karma Mine 1,557 0.2to 0.5* 1,250 0.2 to 0.3 Houndé Project 1,500 0.5 1,300 0.4 to 0.8
*Varies by distance from deposit to the mill, ore type and mining method (OP/UG)As at December 31, 2015
Full details and notes of reserves and resources can be found under the ‘Reserves and Resources’ section on the Company’s website at www.endeavourmining.com74
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1,000 1,100 1,200 1,300 1,400 1,500 Upside on 100%
76
Gold Revenue Protection Program Limit Debt Drawdown
Gold Revenue Protection Program : Gold Option Collar Strategy
US$1,300 US$1,100 US$1,000 $70m $30m US$1,200 ($9m) ($9m)
Gold price in US$/ozMeaningful replacement of reduced revenue
Collar “bought puts” strike Collar “written calls” strikeUpside on 50% of production Protection on 50% of production
Proceeds from Gold Option Contracts (US$) (net of premium cost)
certainty of the free cash flow during the construction period
Objective of using free cash flow rather than Revolving Credit Facility
Significantly reduces debt requirements, even if the gold price drops to US$1,000/oz
representing ~50% of Endeavour’s expected production over 15 months, (Apr 2016-Jun 2017)
Protect 50% of production below $1,200/oz
Fully exposed between 1,200 and $1,400/oz
Upside beyond $1,400/oz on 50% of production
is built
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10 10 9 8 7 5
Randgold Acacia IAMGOLD B2Gold Semafo EDV EDV 2015
$31/oz $16m
Acacia
$31/oz $24m
Randgold
$72/oz
B2gold
$42m $42/oz
Iamgold
$70/oz
Semafo
$59/oz $56m $32m $18m 2016 estimated production and 2015/2016 Exploration budget
Average $51/oz produced
Short Mine Lives Due To Lack of Exploration, Not Potential! It is estimated that EDV should have spent at least $10m/year more in exploration in the previous years to support resource replacement and to be in line with peers
Exploration spend, $m/year Exploration spend, $/oz produced Average Mine Life of operating assets
Endeavour spent less than peers on exploration… … As a result it suffers from shorter mine lives
*Excluding purchases of Ity and Karma, exludes Hounde project *
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Previous Exploration Strategy Was Based On Converting Inferred Resources
CREATING A PREMIER AFRICAN GOLD PRODUCER
133 1,603 165 1,693 273 1,582 154 311 274 1,023 65 244 Houndé Agbaou Nzema Tabakoto 2014 2015 2013
‒ Previous 3 years focused on replacing depletion/production by drilling in-mine or near- mine already existing inferred resources for conversion to indicated and subsequent reserves ‒ Insufficient exploration investment previous 3 years to support inferred resources renewal ‒ Re-launching near-mine and brownfield exploration to define new inferred resources and bring them to Indicated/reserve status Inferred Resources Evolution (excluding acquisitions)
Exploration Became a Core Focus in 2016 with New Structure in Place
SVP West Africa Exploration Resource Manager HR Manager New Ventures Manager
Expert Geologist
Finance Manager
NI 43-101 Compliance
Greater Ity Explo Manager Regional CI Explo Manager Agbaou Explo Manager Hounde Explo Manager Karma Explo Manager Regional BF Explo Manager Tabakoto/Kofi Explo Manager
Abidjan based 79
Sr Geos Jr Geos DB Techs Account Support Sr Geos Jr Geos DB Techs Account Support Sr Geos Jr Geos DB Techs Account Support Sr Geos Jr Geos DB Techs Support Sr Geos Jr Geos DB Techs Account Support Sr Geos Jr Geos Techs Account Support Sr Geos Jr Geos Techs SupportHighly experienced team
– Strong knowledge of West African Birimian belts – Senior staff from BRGM, Randgold, Iamgold, Areva, La Mancha, etc – 20 Seniors Geologists – 7 Exploration Managers – 40 Juniors Geologists – 130 Technicians and Support Staff
CEO COO EVP Projects EVP Exploration & Growth
CI Government Relations Advisor Legal Advisor CREATING A PREMIER AFRICAN GOLD PRODUCER
Exhaustive screening of all >200 potential targets
130+ target screened through multi-criteria data analysis
First filtering Quantifying min/max and mean size and grade
(Length x width x 100m depth x density x average grade issued from existing drilling or nearby analogs)
Top selection of 40 most significant targets Risked mean Indicated Resource per Target
Risked-probability weighted potential per target
High/Medium/Low
Exploration budget required per target to reach Indicated resource level status
Strategic Prioritization
Screening and Ranking Methodology
Conservative Approach
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Methodic and Exhaustive Review to Quantify and Rank Potential
evaluation
– Current state of project knowledge (from grassroot to development) – Quality of supporting data (drilling, available nearby analogs, structural trends, favorable geology, etc.) – Distance to producing facilities:
– Geological framework, mineralization type, mineability, exploration game changer
including estimated average grade when calibration is available
nearby upside (possible clusters), all gathered per relevant PE (Exploration Permit)or PEX (Exploitation permit)
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Further Selection, Ranking and Risk Evaluation
based on geological confidence/structural understanding/ type of expected mineralization/existing positive intercepts/trend extension, strong and coherent gold in soil and Auger anomalies
– POO 0.8 to 1: Very high confidence (some Mine and Near Mine Exploration or already Identified /tested targets) – POO 0.6 : Probable deposit, with a size and grade distribution according to prognosis (Oz and average grade) – POO 0.4: Less than average Probability of Occurrence, kept in the planning due to its possible size (High Risk- High Reward type) or due to its short distance to mine
permit duration, requested exploration efforts, and budget
– The required drilling amount/yearly budgets and the related timing of Indicated resource definition – Proposed yearly budgets include estimated manpower, drilling, analysis, support, geophysics, geochem, etc – A 2017-2021 required risked exploration spending necessary to discover the targeted risked mean indicated Oz per target
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