Corporate Presentation › October 2017
CORPORATE PRESENTATION DISCLAIMER & FORWARD LOOKING STATEMENTS Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. This presentation contains “forward-looking statements” including but not limited to, statements with 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. Jeremy Langford, Endeavour’s Chief Operating Officer - Fellow of the Australasian Institute of Mining and Metallurgy – FAusIMM, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information in this news release. 2
TABLE OF CONTENTS 1 CORPORATE OVERVIEW 2 2017 OUTLOOK & Q2 RESULTS 3 DETAILS BY MINE AND PROJECT 4 APPENDIX
CORPORATE OVERVIEW ENDEAVOUR MINING OVERVIEW A premier African gold producer with a strong presence in West-Africa SENEG EGAL MALI Karma Tabakoto Mine GAMBIA Mine BURKINA FASO 4,000 GUINEA- Bamako Ouagadougou BISSAU EMPLOYEES WORLDWIDE Kalana GUINEA EA Houndé Mine Project CÔTE SIERRA RA D’IVOIRE LEONE NE $500-530 Koz $855-900/oz GHANA 2017 PRODUCTION TARGET Ity Mine and 2017 AISC TARGET FROM CONTINUING OPERATIONS CIL Project FOR CONTINUING OPERATIONS LIBERI RIA Agbaou Mine Abidjan Operations Office 10-15Moz 15.4Moz 9.8Moz 5-YEAR DISCOVERY TARGET M&I RESOURCES RESERVES All amounts presented on a Pro-forma basis: Nzema (Ghana) reserves and resources deconsolidated (full year) and Kalana reserves and resources added 4
CORPORATE OVERVIEW COMPANY PROFILE Shareholder Distribution Ticker TSX:EDV Shares in Issue* 107 m RETAIL LA MANCHA MANAGEMENT INSTITUTIONAL Share price as at Sept. 20th C$23.13 Europe Market cap* US$2.0B Net Debt as at June 30 th US$183m Other *Inclusive of the Avnel acquisition and LM placement (expected to close Oct. 5 th ) North America 7 % 30 % 1 % 62 % Top Shareholders Share Price Performance Volume EDV share price In CAD Rank Institution Name % of S/O 7000000 30 1 LA MANCHA HOLDING S.A.R.L. 30% 6000000 25 2 Van Eck Associates Corporation 9.0% 5000000 3 BlackRock Investment Management (UK) 5.2% 20 4000000 4 M & G Investment Management Ltd. 4.5% 15 3000000 5 Oppenheimer Funds, Inc. 3.8% 10 2000000 6 RBC Global Asset Management Inc. 3.2% 5 7 Fiera Capital Corporation 3.0% 1000000 8 Ruffer LLP 2.1% 0 0 9 Investc Asset Management Ltd. 1.6% 10 Quaker Capital Management Corporation 1.5% 5
CORPORATE OVERVIEW INVESTMENT HIGHLIGHTS Endeavour offers exposure to both near and long-term growth potential, in addition to current production Immediate Near-Term Long-Term Cashflow Growth Upside from from from PRODUCTION PROJECTS EXPLORATION with an accomplished management team and a healthy balance sheet 6
CORPORATE OVERVIEW DEVELOPING PROJECTS TO IMPROVE THE PORTFOLIO QUALITY Key objective is to reduce the group’s AISC and extending mine lives STRATEGIC OBJECTIVE $1,317/oz For 2019 +900koz +900koz 800-900koz + 800koz 800-900koz $1,010/oz $922/oz Annual production $895/oz 584koz <$800/oz 517koz 462koz ≤ 800 $/oz 317koz All-in Sustaining Cost 10+ year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mine life Group AISC Houndé, Burkina Faso Ity (Heap Leach), Côte d’Ivoire Youga, Burkina Faso Kalana, Mali Karma, Burkina Faso Tabakoto, Mali Ity (CIL), Côte d’Ivoire Agbaou, Côte d’Ivoire Nzema, Ghana 7
CORPORATE OVERVIEW BUILDING A PREMIER AFRICAN GOLD PRODUCER 4 Strategic Levers to Achieve Objectives STRATEGIC OBJECTIVES STRATEGIC LEVERS + 800 koz Annual production ≤ 800 $/oz All-in Sustaining cost 10+ year Mine life 8
CORPORATE OVERVIEW OPERATIONAL EXCELLENCE 1 Levering Operating Synergies in West Africa Agbaou Ownership: 85% Mine/mill type: Open Pit / CIL Plant Reserves: 0.9Moz 2017E Production: 175-180koz 2017E AISC: $660-$700/oz Ity Heap Leach Ownership: 80% Mine/mill type: Open pit / Heap Leach Reserves: 0.3Moz 2017E Production: 75-80koz 2017E AISC: $740-$780/oz Karma Ownership: 90% Mine/mill type: Open pit / Heap Leach Reserves: 1.1Moz 2017E Production: 100-110koz 2017E AISC: $750-$800/oz Tabakoto Ownership: 80-90% Mine/mill type: Underground & Open Pit / CIL Reserves: 0.6Moz 2017E Production: 150-160koz 2017E AISC: $950-$990/oz 9
CORPORATE OVERVIEW OPERATIONAL EXCELLENCE 1 Hands-on Management Model With Teams Close to Operations London Based Management Focus Sebastien de Montessus CEO & Director Vincent Benoit FUNCTIONS: EVP CFO & Corporate • Finance SAFETY CASH FLOW Development • Investor relations Morgan Carroll • Corporate development DRIVEN FIRST • People and culture EVP Corporate Finance & General Counsel Henri de Joux EVP People & Public Affairs Abidjan Based LEAN AND FUNCTIONS: HANDS-ON • Jeremy Langford Government relations EFFICIENT • Operations controlling COO MANAGEMENT OPERATIONS • Procurement • Exploration Patrick Bouisset • Projects EVP Exploration & Growth • Environmental • CSR • HR – mine level 10
CORPORATE OVERVIEW SAFETY IS OUR FIRST PRIORITY 1 Q2-2017 was successfully completed with no LTIs Lost Time Injury Frequency Rate 8.4m 0.79 Man Hours for operations in H1-17 with only 1 LTI 0.40 0.31 +6.3m 0.00 0.00 Man Hours on Peer Group FY2016 Last Houndé Agbaou Houndé with no LTI Average 12-months (since start) Operating track record Construction track record Lost Time Injury Frequency Rate= (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period) 11 The peer group used from company annual reports for 2015 from Kinross Newmont, Barrick, Randgold, Acacia, Eldorado, Rio Tinto, Goldcorp, Glencore, Nordgold, Anglo American and AngloGold Ashanti,
CORPORATE OVERVIEW LAUNCHED IMPROVEMENTS ACROSS THE GROUP 1 Transforming From Stand Alone Units To Integrated Group TABAKOTO CSR GOVERNANCE ZERO BASE PLAN GROWING COST LOCAL REDUCTION TALENT FOCUSED ON OPERATIONAL EXCELLENCE WORKING SUPPLY IT CAPITAL CHAIN SYSTEMS 12
CORPORATE OVERVIEW OPERATIONAL EXCELLENCE 1 Proven track record of meeting guidance Production, on a 100% basis in koz All-in Sustaining Costs, in $/oz Guidance Guidance Hounde 1,137 500-530 from cont. 584 517 operations 466 1,010 324 922 855-900 884 Nzema 2013 2014 2015 2016 2017 Guidance 2013 2014 2015 2016 2017 Guidance (post Nzema sale) Cash Flow Generation Lost Time Injury Frequency Rate Lost Time Injury Frequency Rate Free cash flow before growth projects (Number of LTIs in the Period X 1,000,000) / Total man hours worked for the period) Hounde (and before WC, tax, and financing costs) $135m Nzema* 1.73 $85m 0.76 $120m 0.73 $35m $28m 0.40 0.31 $1,392/oz $1,264/oz $1,157/oz $1,240/oz $1,240/oz 2013 2014 2015 2016 2017 Guidance 2013 2014 2015 2016 LTM 13 *Nzema sale: $20m payment to be received in 2016
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