› March 2018
CORPORATE PRESENTATION March 2018 CORPORATE PRESENTATION - - PowerPoint PPT Presentation
CORPORATE PRESENTATION March 2018 CORPORATE PRESENTATION - - PowerPoint PPT Presentation
CORPORATE PRESENTATION March 2018 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
DISCLAIMER & FORWARD LOOKING STATEMENTS
2
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
- perating 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
- r 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
- perates. 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.
CORPORATE PRESENTATION
TABLE OF CONTENTS CORPORATE OVERVIEW
1
APPENDIX
4
FULL YEAR 2017 RESULTS & 2018 OUTLOOK
2
DETAILS BY MINE AND PROJECT
3
4
$840-890/oz
2018 AISC TARGET
670-720 Koz
2018 PRODUCTION TARGET
4,000
EMPLOYEES WORLDWIDE
9.8Moz
RESERVES
15.4Moz
M&I RESOURCES
10-15Moz
5-YEAR DISCOVERY TARGET
MALI
Agbaou Mine Tabakoto Mine Houndé Mine
CÔTE D’IVOIRE GHANA
Karma Mine Ity Mine and CIL Project
Abidjan Bamako Ouagadougou
GUINEA EA SIERRA RA LEONE NE SENEG EGAL GAMBIA LIBERI RIA GUINEA- BISSAU
Operations Office
BURKINA FASO
Kalana Project
ENDEAVOUR MINING OVERVIEW
A premier African gold producer with a strong presence in West-Africa
CORPORATE PRESENTATION
COMPANY PROFILE
5
Share Price Performance
Rank Institution Name % of S/O 1
La Mancha 29.9%
2
Van Eck Associates Corporation 9.2%
3
BlackRock Investment Management (UK) Ltd. 8.1%
4
M & G Investment Management Ltd. 4.1%
5
OppenheimerFunds, Inc. 3.7%
6
Elliott Management Corporation 3.7%
7
RBC Global Asset Management Inc. 2.2%
8
Investec Asset Management Ltd. 2.1%
9
Fiera Capital Corporation 1.9%
10
Ruffer LLP 1.5%
Top Shareholders
Ticker TSX:EDV Shares Outstanding as at Jan. 1st 108 m Share price as at Feb. 21st C$23.02 Market cap as at Feb. 21st US$2.0B Net Debt as at Dec. 31st US$233m
Shareholder Distribution
MANAGEMENT
1%
LA MANCHA
30%
RETAIL
7%
INSTITUTIONAL
62%
Other Europe North America
In CAD
10 12 14 16 18 20 22 24 26 28 30 1000000 2000000 3000000 4000000 5000000 6000000 7000000 Volume EDV share price
CORPORATE PRESENTATION
LONG-TERM UPSIDE FROM GREENFIELD EXPLORATION NEAR-TERM GROWTH FROM PROJECTS IMMEDIATE CASH FLOW FROM PRODUCTION
6
INVESTMENT HIGHLIGHTS
Construction DFS Stage
Kalana Hounde Ity CIL
Sissedougou JV (Ivory Coast) Fetekro (Ivory Coast) Kofi Trend (Mali) Liguidi (Burkina Faso) Daoukro Cluster (Ivory Coast)
- Mt. Ba/Gueya
(Ivory Coast – Ity trend) Siguiri (Guinea) Liptako (Niger) Floleu (Ivory Coast – Ity trend)
Hounde (completed)
Bondoukou Cluster (Ivory Coast) Kari/Kari Pump (Hounde trend) Tiepleu (Ity trend) Sia/Sianikoui (Hounde trend) Fougadian (Mali)
Resource stage Drilling on-going Preparation
Mines Projects Brownfield target / stand-alone potential Greenfield target
Exposure to near & long-term growth potential, in addition to current production
CORPORATE PRESENTATION
PRODUCTION AND AISC PROFILE
7
Key objective is to reduce the group’s AISC and extending mine lives
$1,010/oz $1,317/oz $869/oz $922/oz
2022 +900koz 462koz 2013 317koz 2014 2015 517koz 800-900koz 2021 2019 2020 2018 2016 2017 584koz +900koz 800-900koz
Tabakoto, Mali Ity (Heap Leach), Côte d’Ivoire Agbaou, Côte d’Ivoire Houndé, Burkina Faso Karma, Burkina Faso Group AISC Ity (CIL), Côte d’Ivoire Kalana, Mali Youga, Burkina Faso Nzema, Ghana
+800koz
Annual production
10+ year
Mine life
≤800$/oz
All-in Sustaining Cost
STRATEGIC OBJECTIVE
For 2019
663koz
~$869/oz $840-890/oz
670-720koz
CORPORATE PRESENTATION
STRATEGIC LEVERS
8
BUILDING A PREMIER AFRICAN GOLD PRODUCER
4 Strategic Levers to Achieve Objectives
+800koz
Annual production
10+ year
Mine life
≤800$/oz
All-in Sustaining Cost
STRATEGIC OBJECTIVE
CORPORATE PRESENTATION
For 2019
London Based
MALI
Agbaou Mine Tabakoto Mine Houndé Mine
CÔTE D’IVOIRE GHANA
Karma Mine Ity Mine and CIL Project
Abidjan Bamako Ouagadougou
GUINEA EA SIERRA RA LEONE NE SENEG EGAL GAMBIA LIBERI RIA GUINEA- BISSAU
Operations Office
BURKINA FASO
Kalana Project 35min 1h35 2h 2h40 3h10 2h
Hands-on Management Model With Teams Close to Operations
OPERATIONAL EXCELLENCE
9
1
Sebastien de Montessus CEO & Director Jeremy Langford
COO
Vincent Benoit
EVP CFO & Corporate Development
Patrick Bouisset
EVP Exploration & Growth
Morgan Carroll
EVP Corporate Finance & General Counsel
Henri de Joux
EVP People, Culture & IT
Abidjan Based
Pascal Bernasconi
EVP Public Affairs, CSR & Security 200km hours Flight time
CORPORATE PRESENTATION
Lost Time Injury Frequency Rate= (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period) 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
Lost Time Injury Frequency Rate 0.00 0.00 0.29 0.40 0.79
Peer Group Average Agbaou Houndé FY2017 FY2016
17.4m
Man Hours for the full year 2017 with
- nly 5 LTI
+8.0m
Man Hours on Houndé with no LTI Construction track record Operating track record
10
Safety is our key priority
OPERATIONAL EXCELLENCE
1
CORPORATE PRESENTATION
Production, on a 100% basis in koz All-in Sustaining Costs, in $/oz All-in Margin, in $m Average Mine Life, in years
*Estimated based on production guidance range, AISC guidance mid-point, a spot gold price of $1,325/oz and non-sustaining capex as detailed in “Outlook Section”
11
Proven track record of meeting guidance
OPERATIONAL EXCELLENCE
922 1,010 884 ~869
2016 2018 Guidance
840-890
2015 2014 2017 Preliminary
466 517 584 663
2015 2014 2016
670-720
2018 Guidance 2017
7yrs 5yrs 4yrs
2019E 2015A 2016A 2017A
+10yrs
$85m
2015
~$160m
2018 Guidance
$35m $175-200m*
2017 2016 2014
$135m
Guidance Guidance
$1,392/oz $1,264/oz $1,157/oz $1,221/oz
1
CORPORATE PRESENTATION As at year-ended
Sold Youga Bought Karma Sold Nzema Started Houndé Started Ity CIL
PROJECT DEVELOPMENT
Adding +600koz at an average AISC of <$700/oz over the next 3 years
Houndé (Completed) 12 Ity CIL Construction (Underway)
KALANA ITY CIL Houndé
2017 2018 2019 2020 2021 2022
GREENFIELD EXPLORATION
DFS Optimization (Underway) Construction Resource Definition Studies Construction
+235koz at AISC
- f <$650/oz
+235koz at AISC
- f <$500/oz
+150koz at AISC
- f <$700/oz
2
CORPORATE PRESENTATION
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
13
PROJECT DEVELOPMENT
2
Life of Mine Plan Built ahead of schedule and below budget
› Commercial production declared Nov 1, 2017, 2
months ahead of schedule
› Completed $15 million below the initial $328
million budget
› Running at nameplate capacity with all key
parameters in line with DFS
› +7m manhour without an LTI
Project Highlights ‒ 10-year mine life based on current reserves + significant exploration upside ‒ Average production of 190kozpa at AISC of US$709/oz ‒ Robust Project with after-tax IRR of +30% at US$1,250/oz
Year 5 to 8 Average
116koz
$496/oz $901/oz
218koz
$648/oz Year 9 to 10 Average
184koz
Year 3 Year 4
223koz
$506/oz $662/oz
231koz
Year 1
265koz
Year 2 $645/oz
AISC/oz Production based on reserves, koz
Houndé became Endeavour’s new flagship low cost mine
Exploration upside expected to fill this shortfall
CORPORATE OVERVIEW
Natougou
(Semafo)
14
PROJECT DEVELOPMENT
Long-life Low Cost Project
› Long 14-year reserves mine life › Low AISC of $494/oz over first 5 years › Solid production of 235kozpa over first 5
years Robust Project Economics (based on $1,250/oz)
› After-tax IRR of 40% › After-tax NPV5% of $710m › Quick payback of 2 years › Capex of $410m of which $61m of
equipment leasing First gold pour expected for mid-2019
Ity CIL Project construction launched in September 2017
$484/oz $532/oz Year 8 Year 9 $677/oz $643/oz 201koz $567/oz Year 10 Year 6 Year 7 $612/oz Year 5 Year 4 Year 3 159koz 190koz 238koz 224koz $493/oz 250koz 250koz Year 1 $407/oz 151koz 162koz 213koz Year 2 AISC Production
Production Profile
Exploration potential
Source: 2017 Optimization Study
2
CORPORATE PRESENTATION
Feasibility-stage project
› 1.2Mtpa CIL plant › Single open-pit reserve of 1.96Moz at
2.8 g/t
› 18-year mine life › Low AISC cost operation with $730/oz
- ver life of mine
› After-tax NPV5% of $321m and after-tax
IRR of 50% based on a gold price of $1,200/oz Endeavour intends to re-design the current feasibility study
› Expand the plant capacity › Increase the average annual production
and shorten the mine life
› Integrate synergies › Integrate exploration upside
15
PROJECT DEVELOPMENT
Kalana is a high-quality project with significant optimization potential
Numbers presented are Based on Anvel’s the Optimised Feasibility Study dated Jan. 9, 2017
119koz 123koz 123koz 170koz 203koz $703/oz $976/oz $598/oz Year 5
- Avg. Years
11-17 66koz
- Avg. Years
6-10 88koz $865/oz $446/oz Year 1 Year 2 $676/oz Year 3 $689/oz Year 4 Production AISC
Production Profile
Optimization potential for +150kozpa
Tabakoto Mine Bamako
Mali
Kalana Project
2
CORPORATE PRESENTATION
16 16
UNLOCK EXPLORATION VALUE
Amongst Largest and Most Promising Portfolios in West Africa 15.4Moz
M&I RESOURCES
10,090 km²
EXPLORATION TENEMENTS
+200
EXPLORATION TARGETS
3
10-15Moz
5-YEAR DISCOVERY TARGET
CORPORATE PRESENTATION
Screening And Ranking Methodology
Full Details Provided in Appendix
17
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
UNLOCK EXPLORATION VALUE
3
CONSERVATIVE APPROACH
SIMILAR TO THAT USED IN OIL & GAS INDUSTRY
CORPORATE PRESENTATION
18 18
UNLOCK EXPLORATION VALUE
Starting To Deliver Our Against 5-year Strategy
4.0-6.0Moz 1.5Moz Discovered
Greater Ity Karma Tabakoto Agbaou Houndé Côte d’Ivoire Regional
4.0-6.0Moz 2.5-3.5Moz 1.5-2.5Moz 0.5-1.5Moz 0.5-1.5Moz 0.5-1.0Moz
10-15Moz
5-year Indicated Resource Discovery Target
› Significant success over the
last 4 years
› Significant amount of data
available
› Many known targets based
- n geochem and auger
results
› Exploration stopped once
project reached critical size to make investment decision
› Many known targets and
historical drill data
› On same trend as Randgold › Limited exploration
expenses have caused mine life to be short
› New discoveries made in
2016 with additional targets for 2017+
› Limited exploration (mainly
focused on converting inferred)
› Focus on pit extensions and
parallel trends
› Targets backed by geochem
anomalies
› Previously owned by junior
with lack of fund for exploration
› North Kao already added 2.5
years of mine life
› Many near mill targets › One of the largest
exploration tenements in the country
› Several advanced
exploration targets based
- n historic results
Note: See Investor Day Presentation on EDV website for full details. Based on average gold grade of 2.0-3.5g/t for Greater Ity, 1.8-2.5g/t for Houndé, 2.0-4.0g/t for Tabakoto, 1.0-1.5g/t for TrueGold and 1.5-3.0g/t for Côte d’Ivoire regional. 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. Kalana exploration assessment underway
3
CORPORATE PRESENTATION
UNLOCK EXPLORATION VALUE
Kalana exploration assessment underway
19 19
$35-40m
Annual budget
<$15/oz
Anticipated average discovery costs
Exploration Strategic Review Output: Low Discovery Costs
$10m $15m $25m $30m $45m $55m $13/oz $20/oz $25/oz $15/oz $15/oz $11/oz
Côte d’Ivoire Regional Karma Agbaou Greater Ity Houndé Tabakoto Exploration budget Average discovery cost
3
CORPORATE PRESENTATION
20
5 10 15 20 $750 $650 $700 $1,200 $550 $850 $1,000 $500 $1,150 $950 $900 $600 $1,100 $450 $800 $1,050
Mine life, years 5 10 15 20 $1,050 $1,200 $450 $650 $850 Mine life, years
Bubble size represents production. Portfolio in 2017 based on 2017 production and AISC actuals (other than Hounde which is 2018 guidance, mine lives based on end of 2016 as year-end 2017 reserves have not yet been published. AISC, $/oz Ghana Mali Burkina Faso Côte d’Ivoire AISC, $/oz
PORTFOLIO AT END OF 2015 PORTFOLIO IN 2017
Nzema Tabakoto
Agbaou
Youga
Tabakoto
Kalana Potential
Ity HL
Assessment expected by mid-2018
Increase Overall Quality of our Portfolio
PORTFOLIO & BALANCE SHEET MANAGEMENT
4
Karma
Agbaou
Ity CIL
Houndé
CORPORATE PRESENTATION
21
PORTFOLIO & BALANCE SHEET MANAGEMENT
Significant headroom to fund projects
$152m $122m $350m $200m Growth Projects Sources of Funding until mid-2019 Expected Mine CF until start of Ity CIL (mid-2019) Ity Equipment Financing Nzema Sale Liquidity Sources (after convertible issuance) Liquidity Sources (As at Dec. 31, 2017) $502m $322m ~$400m Circa $60m Up to $25m Hounde remaining capex Ity Capex Undrawn RCF Cash Fully funded without mine cash flow
4
PORTFOLIO & BALANCE SHEET MANAGEMENT
INSIGHTS
›
$330m convertible was closed in February 2018
›
Intent is to pay down the current $300m drawn on the RCF and reduce RCF limit from $500m to $350m
›
Increases liquidity by $180m
(in $m)
- DEC. 31, 2017
(with convertible)
- DEC. 31,
2017
- SEPT. 30,
2017
- DEC. 31,
2016
Cash 152 122 125 124 Less: Equipment finance lease (55) (55) (46) (10) Less: Drawn portion of RCF (0) (300) (300) (140) Less: Convertible Notes (330)
- NET DEBT POSITION
(233) (233) (221) (26)
› PRINCIPLE AMOUNT:
$500m with intent to decrease to $350m
› INTEREST RATE:
‒ LIBOR plus 2.95% to 3.95% on drawn portion ‒ 1.03% commitment fees on undrawn portion
› TERM:
September 2021
› REPAYMENT:
Single bullet payment on the maturity date, can be repaid at any time without penalty
› BANKING POOL: › PRINCIPLE AMOUNT:
$330m
› INTEREST RATE:
3% annual coupon
› TERM:
February 2023
› CONVERSION PRICE:
CAD29.47 (US$23.90)
› REPAYMENT:
Endeavour has the option to settle its obligation through the payment of cash, the delivery of shares, or any combination of cash and shares
› DILUTION IMPACT:
Maximum amount of underlying shares of 13.8m shares, representing between 0% and 12.9% dilution based on Endeavour’s ability to repay in cash
› ADVANTAGES OF THE CONVERT:
‒ Reduces its overall financing costs and de-risks LIBOR exposure ‒ Extends its debt maturity profile compared to RCF ‒ Increases liquidity by $180m to accelerate growth project pipeline (Kalana) ‒ Limited dilution with option to settle in cash
PORTFOLIO & BALANCE SHEET MANAGEMENT
22
CORPORATE PRESENTATION
Diversified borrowing sources
REVOLVING CREDIT FACILITY (RCF) CONVERTIBLE NOTES
4
UPCOMING CATALYSTS
Immediate Cashflow
from Production
Near-Term Growth
from Projects
Long-Term Upside
from Exploration 2018 OUTLOOK:
› Gold production guidance increase to 670-720koz with Hounde › AISC guidance to decrease to $849-890/oz with Hounde › HOUNDÉ: Contribution to Group free cash flow generation started in Q4-2017 › ITY CIL PROJECT: Construction launched in September with first gold pour expected by mid-2019 › KALANA PROJECT: Optimization study expected by end of 2018 › DELIVERY OF 5-YEAR EXPLORATION STRATEGY: Target of Finding 10-15Moz of Indicated Resources › HOUNDÉ: Results following drilling re-commencement in 2017 › KARMA: Maiden resource on new targets › ITY’S LE PLAQUE TARGET: Maiden resource › AGBAOU: Completion of drilling program › GREENFIELD: First exploration results on new properties
23
CORPORATE PRESENTATION
TABLE OF CONTENTS STRATEGIC OVERVIEW
1
APPENDIX
4
FULL YEAR 2017 RESULTS & 2018 OUTLOOK
2
DETAILS BY MINE AND PROJECT
3
INSIGHTS
› Production from continuing operations
is expected to increase to 670-720koz in 2018
› AISC is expected to decrease to $840-
890/oz due to the full year benefit of Houndé and improvements at Karma and Ity which are expected to more than offset declines at Agbaou and Tabakoto
› In
line with Endeavour’s portfolio management strategy, a strategic assessment is expected to be made on Tabakoto during the course of the year. 2018 production excluding Tabakoto is expected to range between 555-590koz at an AISC of $760-810/oz
2018 GUIDANCE INCREASED WITH HOUNDE
25
Continued reduction in AISC expected
Production Guidance AISC Guidance
CORPORATE PRESENTATION
(All amounts in koz, on a 100% basis) 2018 FULL-YEAR GUIDANCE Agbaou 140
- 150
Ity 60
- 65
Karma 105
- 115
Tabakoto 115
- 130
Houndé 250
- 260
PRODUCTION FROM CONTINUING OPERATIONS 670
- 720
PRODUCTION FROM CONTINUING OPERATIONS EXCLUDING TABAKOTO 555
- 590
(All amounts in $/oz, on a 100% basis) 2018 FULL-YEAR GUIDANCE Agbaou 860
- 900
Ity 790
- 850
Karma 780
- 830
Houndé 580 630 Tabakoto 1,200
- 1,250
Corporate G&A 30
- 30
Sustaining exploration 10
- 10
GROUP AISC FROM CONTINUING OPERATIONS 840
- 890
GROUP AISC FROM CONTINUING OPERATIONS EXCLUDING TABAKOTO 760
- 810
INSIGHTS
› Growth projects amount to $200 million
- f the sustaining and non-sustaining
capital allocations for 2018, mainly for the Ity CIL project construction
› In 2018 a company-wide exploration
program of $40-45 million (compared to circa $44 million in 2017) was launched
‒ Approx 40%
- f
the budget will be dedicated to greenfield opportunities ‒ A strong focus will continue at Houndé to support the ramp-up of mining operations ‒ There will be a continued focus at the Ity mine and greenfield targets along its 100km trend ‒ An intensive Kalana exploration campaign is planned for H1-2018 with the aim of integrating the results into the updated feasibility study
2018 GUIDANCE INCREASED WITH HOUNDE
26
Houndé is Already Cash Flow Positive
Capital Expenditure Guidance, $m Exploration Guidance, $m
CORPORATE PRESENTATION
(on a 100% basis) EXPLORATION SPEND ALLOCATION Agbaou 8% Tabakoto and greenfield Kofi areas 15% Ity and greenfield areas on the 100km Ity trend 18% Karma 4% Kalana 13% Houndé 21% Other greenfield properties 22% TOTAL EXPLORATION EXPENDITURES* $40-45m
(in $m) SUSTAINING CAPITAL NON-SUSTAINING CAPITAL GROWTH PROJECTS Agbaou 17 2
- Tabakoto
37
- Ity
2
- 180
Karma 2 23
- Houndé
3 23 10 Kalana
- 10
Exploration 7 29
- Corporate (Group IT system)
- 7
- TOTAL
68 84 200
27
PRODUCTION PROFILE
INSIGHTS BY MINE
$886/oz $922/oz $1,010/oz
670-720koz
~$869/oz
663koz 593koz
2016A 2017A 2015A 2018E
$840-890/oz
517koz 466koz
2014A ITY TABAKOTO AGBAOU
~$927
59koz
2018E
60-65koz
$790-850 2017A
37koz
2017A
~$705
NZEMA
~$1,127 2017A
144koz
2018E $1,200-1,250
115-130koz
2018E
105-115koz
$780-830 2017A
98koz
~$835
KARMA
2017A $580-630 2018E ~$373
250-260koz 69koz
AISC, $/oz Production, koz
Group Production and AISC
Houndé expected to lift production and lower AISC
HOUNDE
177koz
2017A ~$641 2018E
140-150koz
$860-900
CORPORATE PRESENTATION
TABLE OF CONTENTS STRATEGIC OVERVIEW
1
APPENDIX
4
FULL YEAR 2017 RESULTS & 2018 OUTLOOK
2
DETAILS BY MINE AND PROJECT
3
HOUNDÉ MINE, BURKINA FASO
29
Houndé Mine Ouagadougou Karma Mine
Overview
KARMA MINE QUICK FACTS (ON 100% BASIS)
Ownership 90% EDV, 10% Burkina Faso Resources (incl. of Reserves) M&I: 37.9Mt @ 2.1 g/t for 2.551Moz Inferred: 3.Mt @ 2.6 g/t for 0.274Moz Reserves 30.6Mt @ 2.1 g/t for 2.075Moz Processing Rate 3.0mtpa CIL plant Open Pit Strip Ratio 16.48 to 1 (2017A) Gold Recovery 95% (2017A) Mining Type Open pit / Owner Mining Production AISC (Mine-level) 2017 prelim - $373/oz 2018E - $580 -630/oz Mine life +10 years Tax regime 17.5 - 27.5% Corporate tax
RECENT AND UPCOMING CATALYSTS
Accomplished
- Construction completed in October 2017 ahead of schedule and below budget
Upcoming
- Exploration drilling restarted in 2017 and is intensifying in 2018
2017A 2018E
69koz 250-260koz
CORPORATE PRESENTATION
Q4-17 INSIGHTS:
› Production totaled 69koz since the start of mining
- perations
(all considered commercial); significantly surpassing the upper end of the 30- 35koz guidance, due to better than expected mill availability, throughput, grades, and recovery rates
› AISC amounted to circa $373/oz, significantly
below the lower end of the $550-600/oz forecast due to the aforementioned greater than expected production, and lower mining costs
2018 OUTLOOK
› Houndé is expected to produce between 250 -
260koz in 2018 at an AISC of $580-630/oz
› Mining activities are expected to continue to
ramp-up to achieve a mining rate of 40Mtpa, up from 18Mtpa in 2017
› Mining and processing of fresh ore began in the
latter portion of Q4-2017. Activities are expected to progressively transition from mainly oxides in early 2018 to mainly fresh ore by the end of 2018
30
HOUNDE MINE, BURKINA FASO
Performance above guidance boosted the quarter
Production and AISC
69koz $373/oz
2018E
250-260koz $580-630/oz
Q4-2017 Production, koz AISC, US$/oz
CORPORATE PRESENTATION
Life of Mine Plan
Year 5 to 8 Average
116koz
$496/oz $901/oz
218koz
$648/oz Year 9 to 10 Average
184koz
Year 3 Year 4
223koz
$506/oz $662/oz
231koz
Year 1
265koz
Year 2 $645/oz
AISC/oz Production based on reserves, koz
Exploration upside expected to fill this shortfall
31
Construction was completed $15 million below the initial capital budget and it was decided to spend an additional circa $21 million mainly for the addition of a 26MW back up power station & fuel farm, bringing the total investment to circa $334 million. No Lost-Time-Injury occurred over the 8 million manhours worked.
AHEAD OF TIME 0 LTIs BELOW BUDGET
The team and Houndé’s first gold bars
CORPORATE PRESENTATION
Commercial production was declared more than two months ahead of schedule as a stable nameplate capacity was achieved within weeks from first ore being introduced into the plant on September 25, 2017.
HOUNDE MINE, BURKINA FASO
Construction achievements
32
2.5-3.5Moz
5-YEAR DISCOVERY TARGET
<$15/oz
AVERAGE 5-YEAR DISCOVERY COST
Hounde Site Map
INSIGHTS
› Following a two
year period of no exploration drilling, activities resumed in 2017 with a $5 million program
› Focused on drilling
high grade targets
› Work performed
also included advanced soil geochemistry, ground geophysics
- n selected targets,
regolith and geological mapping
› Significant
potential highlighted
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.
Significant exploration potential highlighted by 2017 drilling
HOUNDÉ PROJECT, BURKINA FASO
CORPORATE PRESENTATION
PRIORITY RANKING AFTER INITIAL DRILL TEST
33
Houndé exploration targets and gold-in-soil anomalies map
Priority 1
Priority 2 Priority 2 Priority 2 Priority 2
CORPORATE PRESENTATION
34
Drill results confirmed high-grade mineralization
KARI PUMP EXPLORATION RESULTS
A A’
CORPORATE PRESENTATION
AGBAOU MINE, CÔTE D’IVOIRE
QUICK FACTS (ON 100% BASIS)
Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources (incl. of Reserves) M&I: 13.0Mt @ 2.4 g/t for 1.004Moz Inferred: 1.1Mt @ 1.7 g/t for 0.060Moz Reserves 11.0Mt @ 2.4 g/t for 0.853Moz Processing Rate Up to 2.6 Mtpa Gravity/CIL plant - oxides; 1.6 Mtpa fresh Open Pit Strip Ratio 8.47 to 1 (2017A) Gold Recovery 94% (2017A) Mining Type Open Pit – Contractor Mining Production AISC (mine-level) 2015A – $576/oz 2016A – $534/oz 2017 prelim - $641oz 2018E - $860-900/oz Expected Mine Life 7 years from current Reserves Royalty 3% - 5% sliding scale Corporate Tax 25% (5 year corporate tax holiday)
2017A 2018E 2015A 196koz 181koz 140-150koz 2016 177koz
35 RECENT AND UPCOMING CATALYSTS
Accomplished
- Fully repaid shareholder loans in <2 years, in Nov 2015
- Commissioned secondary crusher on time and on budget in July 2016
Upcoming
- Return to more normalised sustainable production rate with fresh ore representing up to 50% of
tonnes processed
- Exploration campaign underway with initial drill results confirming mineralization
Agbaou Mine Abidjan Ity Mine
Côte d’Ivoire
Overview
CORPORATE PRESENTATION
……
Production and AISC Q4-17 vs Q3-17 INSIGHTS: › Production decreased slightly, in line
with guidance, mainly due to a lower grade and slightly lower tonnage milled
› All-in sustaining costs increased in line
with guidance as operations continued to transition towards mining and processing a greater proportion of fresh
- re
2018 OUTLOOK › 2018 is expected to be a transition year
for Agbaou with a large focus on waste capitalization activities, as a result Agbaou’s 2018 production is expected to decrease to 140 - 150koz as low-grade stockpile feed supplements mine feed to allow waste capitalization activities to progress more quickly
› AISC is expected to increase to $860 -
$900/oz as a result of increased mining costs and higher processing costs
$665/oz
46koz
Q1-2017 Q3-2017
42koz 57koz
Q2-2017 Q4-2017
43koz 45koz
Q4-2016 Production, koz AISC, US$/oz
36
$532/oz $660/oz
AGBAOU MINE, CÔTE D’IVOIRE
Transitioning into harder ore blend
Tonnes Processed and Grade
770kt 693kt 683kt 721kt 760kt
1.85 g/t
Q4-2017 Q3-2017 Q2-2017 Q4-2016 Q1-2017 Grade milled, g/t Au Tonnes milled, kt
2.46 g/t 2.09 g/t $606/oz 2.23 g/t
CORPORATE PRESENTATION
$638/oz 1.96 g/t
INSIGHTS
› Exploration activity during the first 9
months amounted to approximately 31,000 meters drilled out of the 45,000 meters planned for the year. In addition, several ground geophysics were acquired
› The drill program focused on various pit
extensions, the Agbaou south and Niafouta targets, targets on structurally parallel trends, in addition to exploration targets located within a 20km range of the processing plant
› A dedicated deeper drilling program
was also initiated in Q3-2017 targeting Agbaou’s at-depth potential
Agbaou Site Map
37
AGBAOU MINE, COTE D’IVOIRE
Exploration program continues to progress
CORPORATE PRESENTATION
38
AGBAOU MINE EXPLORATION
Target of finding between 0.5 to 1.5Moz
Agbaou Site Map AREAS OF FOCUS:
› Main 2017 priority
was to test area and to generate targets and prioritize for the upcoming campaigns
› Key Areas targeted
are:
- 1. Agbaou North
Pit Area At- depth
- 2. MPN Extension
target
- 3. Agbaou South
target
- 4. Beta Extension
target
- 5. Mbazo area
0.5-1.5Moz
5-YEAR DISCOVERY TARGET
<$25/oz
AVERAGE 5-YEAR DISCOVERY COST
> 50 ppb
CORPORATE PRESENTATION
2m@5g/t Au 4m@17g/t Au (incl. 2m@26.33g/t) 4m@3g/t Au (incl. 2m@4,70g/t) 2m@5.11g/t Au (incl. 1m@9.79g/t) 3m@2.34g/t Au (incl. 1m@6.26g/t) 3m@2.67g/t Au (incl. 1m@4.54g/t) 2m@1.81g/t 2m@1.38/t Au 2m@2g/t Au 4m@2g/t Au (incl. 1m@5.23g/t)
Deep Potential
39
Section - AGBDD2141
Intercepted mineralization 150m under the North pit in 2017
AGBAOU MINE EXPLORATION
CORPORATE PRESENTATION
TABAKOTO MINE, MALI
40 QUICK FACTS (ON 100% BASIS)
Ownership 80-90% Endeavour depending on pit, remainder government of Mali Resources (incl. of Reserves) M&I: 19.0Mt @ 3.0 g/t for 1.844Moz Inferred: 8.2Mt @ 3.5 g/t for 0.908Moz Reserves 6.3Mt @ 3.1 g/t for 0.615Moz Processing Rate 1.4 Mtpa Gravity/CIL Plant Open Pit Strip Ratio 8.89 to 1 (2017A) Gold Recovery 94% (2017A) Mining Type Tabakoto (UG), Segala (UG) & Kofi Open Pit Mine Production AISC (mine-level) 2015A –$1,067/oz 2016A – $1,027/oz 2017 prelim - $1,127/oz 2018E - $1,200-1,250/oz Expected Mine Life 4+ years from current Reserves Royalty 6% Corporate Tax 30%
144koz
2018E 2016A 2015A
115-130koz 163 koz 152koz
2017A
RECENT AND UPCOMING CATALYSTS
Accomplished
- In 2013 the mill was expanded from 2,000 tpd to 4,000 tpd
- Segala ore production commenced in Q2 2014 and to full production by Q4 2014
- Kofi C deposit commenced production in Q1 2015 and ended in mid-2017
- In 2015, switch to owner underground mining and contractor open pit fleet
Upcoming
- Ongoing cost saving and optimisation programs include overhead reduction centralizing
procurement, fleet replacement and improvement equipment availability and mining efficiency
- Strategic assessment expected by mid-2018
Tabakoto Mine Bamako
Mali
Kalana Project
Overview
CORPORATE PRESENTATION
Q4-17 vs Q3-17 INSIGHTS: › Production decreased mainly due to lower
average head grades, in spite
- f
- verall
improved mining operations
› AISC remained stable despite decreases across
all unit costs per tonne (open pit and underground mining, processing, and G&A), which were offset by higher sustaining costs and lower grades
2018 OUTLOOK › Tabakoto production is expected to decrease to
115 – 130koz from both the underground mines and open pits mainly due to a decline in average grade
› AISC
are forecast to increase to $1,200- $1,250/oz due to lower grade and an increase in sustaining capital expenditures to $35 million
› In line with Endeavour’s portfolio management
strategy, a strategic assessment is expected to be made on Tabakoto during the course of the year
41
TABAKOTO MINE, MALI
Strategic assessment underway
Tonnes and Grade Processed Production and AISC
$1,282/oz
Q4-2017
28koz
Q3-2017
32koz
Q2-2017
41koz
Q1-2017 Q4-2016
48koz 43koz
AISC, US$/oz
435kt 392kt 407kt 405kt 402kt 2.20 g/t
Q3-2017 Q1-2017 Q2-2017 Q4-2016 Q4-2017
Tonnes Processed, kt Processed grades, g/t Au
3.93 g/t
$1,119/oz
$975/oz $927/oz 3.50 g/t $1,054/oz 3.32 g/t
CORPORATE PRESENTATION
$1,278/oz 2.64 g/t
42
TABAKOTO AND KOFI EXPLORATION TARGET
1.5-2.5Moz
5-YEAR DISCOVERY TARGET
<$15/oz
AVERAGE 5-YEAR DISCOVERY COST
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.
Recently consolidated Kofi Trend
AREAS OF FOCUS:
- 1. Tabakoto Area
- a. Tabakoto underground
- b. Segala underground
- c. Near
mill
- pen-pit
targets currently being explored
2.
Kofi Area
(potential for stand alone
- peration)
- a. Large
underexplored licenses on trend with Loulo
- b. Several targets ready for
reconnaissance drilling
- c. Netekoto Block recently
acquired
CORPORATE PRESENTATION
ITY MINE, CÔTE D’IVOIRE
QUICK FACTS (ON 100% BASIS)
Ownership 80% EDV, 15% Côte d’Ivoire, 5% private Resources (HL + CIL) (incl. of Reserves) M&I: 75.1Mt @ 1.6 g/t for 3.784Moz Inferred: 18.9Mt @ 1.3 g/t for 0.792Moz Reserves (HL+CIL) 60.3Mt @ 1.6 g/t for 3.138Moz Open Pit Strip Ratio 3.71 to 1 (2017A) Processing Rate 950ktpa Heap Leach Gold Recovery 83% (2017A) Mining Type Open pit / Heap Leach Production AISC (mine-level) 2016A – $756/oz 2017 prelim - $927/oz 2018E - $790-850/oz Mine life 3 years from current Reserves + addition potential Royalty 3% - 5% sliding scale Corporate Tax 25%
2018E 60-65koz 59koz 2015A 81koz 2017A 76koz 2016A
Côte d’Ivoire
RECENT AND UPCOMING CATALYSTS
Accomplished
- Increased heap leach capacity from 0.6mtpa to 1.0mtpa in 2013
- OS for CIL project outlines potential to become core low-cost asset
- Increased stake in the Ity mine from 55% to 80% in 2017
Upcoming
- Construction of CIL project launched in September 2017 with first gold pour expected
in mid-2019
- Continued exploration success
43
Agbaou Mine Abidjan Ity Mine
Côte d’Ivoire
Overview
CORPORATE PRESENTATION
Q4-17 vs Q3-17 INSIGHTS: › Following the rainy season, production
increased due to higher stacking and mining rates, in addition to improved grades and recovery rates
› AISC decreased due to lower unit mining
costs and lower unit processing costs. Despite these unit cost reductions, AISC remained high due to sustaining capital expenditures related to fleet upgrades
2018 OUTLOOK › Production
in 2018 is expected to increase slightly to 60-65koz and AISC are expected to decrease to $790 - $850/oz as a result of anticipated higher grades
› 2018 is expected to be a transition year
for the heap leach
- peration
with greater priority given to the CIL construction
› Heap leach production is expected to be
lower in the second half of the year while AISC are expected to be higher
44
ITY HEAP LEACH MINE, CÔTE D’IVOIRE
Production is expected to increase in 2018 with higher grades
$947/oz
Q4-2017
17koz 12koz
Q3-2017 Q2-2017 Q1-2017
14koz 17koz 16koz
Q4-2016 AISC, US$/oz Production, koz
372kt 312kt 243kt 267kt 295kt
1.86g/t
Q2-2017 Q3-2017 Q4-2017 Q1-2017 Q4-2016 Grade milled, g/t Au Tonnes stacked, kt
Production and AISC Ity mine extraction
$827/oz 2.00g/t $879/oz 1.90g/t $780/oz 2.15g/t
CORPORATE PRESENTATION
$1,141/oz 1.58g/t
ACHIEVEMENTS TO DATE
› No LTI with nearly 630,000 man-hours
worked
› Nearly 50% of the total capital cost of
$412 million has already been committed
› Concrete works are tracking well, with
all eight ring beams and the SAG mill foundation pour complete and ball mill foundation pour commencing
› Tailing storage facility (TSF) earthworks
are progressing on schedule with 15% completed
› EPCM
design is progressing
- n-
schedule with approximately 50% completed
› Design work for the 90KV transmission
line is complete and bush clearing is 70% completed
45
ITY CIL PROJECT MINE, CÔTE D’IVOIRE
Construction is progressing on time and on budget
CIL Ring Beams Poured
CORPORATE PRESENTATION
46
ITY CIL PROJECT MINE, CÔTE D’IVOIRE
CORPORATE PRESENTATION
TSF Earthworks
Construction is progressing on time and on budget
KEY CHANGES INCLUDE:
›
KEY CHANGES INCLUDE:
› Indicated resource inventory
increased by 1.5Moz following exploration success
› Added Bakatouo high-grade deposit
upfront
› Mill size increased from 3Mtpa to
4Mtpa
› Process plant design optimized to
maximize construction and operating synergies with Houndé
› Improved recovery rates › Optimized site layout
SUMMARY OF ITY CIL OPTIMISATION STUDY
47 2017 OPTIMIZATION STUDY 2016 FEASIBILITY STUDY VARIANCE (OS VS. FS)
LIFE OF MINE PRODUCTION
Strip ratio, w:o 1.9 2.1 (10%) Tonnes of ore processed, Mt 57.0Mt 41.0Mt +39% Grade processed, Au g/t 1.57 g/t 1.42 g/t +10% Gold content processed, Moz 2.87 Moz 1.88 Moz +53% LOM Average Gold recovery, % 86% 83% +3% Gold production, Moz 2.47 Moz 1.56 Moz +58% Mine life, years 14.3 years 13.7 years +4% Average annual gold production, koz 173 Koz 114 Koz +52% Cash costs, $/oz $554 $528 +5% AISC, $/oz $580 $603 (4%)
AVERAGE FOR YEARS 1 TO 5:
Gold production, kozpa 235 koz 165 koz +42% Cash costs, $/oz $472/oz $446/oz +6% AISC, $/oz $494/oz $507/oz (3%)
AVERAGE FOR YEARS 1 TO 10:
Gold production, kozpa 204 koz 135 koz +51% Cash costs, $/oz $523/oz $488/oz +7% AISC, $/oz $549/oz $559/oz (2%)
CAPITAL COST
Initial capital cost, $m $412m $307m +34%
- of which equipment lease, $m
$61m $25m +160% Upfront capital cost, $m $351m $282m +24%
ECONOMICS (BASED ON $1,250/OZ)
After-tax IRR 40% 36% +12% After-tax NPV ( 0% discount rate) $990m $607m +63% After-tax NPV ( 5% discount rate) $710m $411m +73% Payback period 1.8 years 2.1 years (17%)
Significant improvement over 2016 Feasibility Study
CORPORATE PRESENTATION
ROBUST PROJECT ECONOMICS
48
IRR of +20% even at $1,000/oz
$710m / 40% $343m / 23% $920m / 50% NPV5% / IRR $1,400/oz $1,250/oz $1,000/oz
- $200m
$1,200m $0m $200m $400m
- $400m
$600m $800m $1,000m $1,400m
Y12 Y13 Y14 Y15 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11
22-MONTH PAYBACK PERIOD 14-YEAR MINE LIFE
Cumulative after-tax free cash flow, US$m
CORPORATE PRESENTATION
LONG-LIFE LOW-COST PROJECT
49
Significantly improved production profile
$643/oz $677/oz $532/oz $567/oz $493/oz $407/oz $612/oz $484/oz Year 8 162koz Year 6 Year 7 Year 5 151koz Year 4 213koz 238koz 224koz Year 2 201koz Year 3 250koz Year 1 159koz Year 9 190koz Year 10 250koz AISC for OS FS production OS production
235koz
average production
- ver first 5 years
$602/oz $598/oz
Production Profile
$494/oz
average AISC over first 5 years
Exploration potential CORPORATE PRESENTATION
LIFE OF MINE PLAN
50
Item Unit LOM Total / Average Pre-prod 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mining Schedule Total Material Moved kt 166,752 15,555 16,000 16,000 16,000 16,000 16,000 13,770 12,661 15,908 13,623 10,143 5,092 Total Waste Moved kt 109,559 10,973 10,225 10,074 11,285 11,172 10,873 9,475 8,847 10,463 7,755 5,233 3,184 Total Ore Mined kt 57,193 4,582 5,775 5,926 4,715 4,828 5,127 4,296 3,814 5,445 5,868 4,910 1,908 Stripping Ratio w:o 1.92 2.39 1.77 1.70 2.39 2.31 2.12 2.21 2.32 1.92 1.32 1.07 1.67 0.00 0.00 0.00 Au Grade - Ore Mined g/t 1.57 1.70 2.05 1.78 1.87 1.65 1.88 1.20 1.37 1.38 1.30 1.12 1.08 0.00 0.00 0.00 Contained Gold - Ore Mined
- z
2,882,942 250,292 380,473 339,552 284,028 256,057 309,845 165,566 167,586 240,798 246,064 176,249 66,432 Processing Schedule Total Ore Processed kt 57,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 1,000 Au Grade - Ore Processed g/t 1.57 2.26 2.32 2.21 1.87 1.99 1.80 1.37 1.57 1.84 1.32 1.45 0.98 0.72 0.53 0.42 Contained Gold - Ore Processed
- z
2,874,932 291,115 298,991 283,905 240,735 256,406 231,939 176,705 201,293 236,809 170,115 186,579 125,818 92,339 68,735 13,447 Au Recovery % 85.8% 86.0% 83.7% 84.0% 88.3% 87.2% 86.7% 85.5% 80.2% 80.1% 93.3% 89.8% 89.9% 83.9% 85.8% 92.0% Recovered Gold
- z
2,466,728 250,481 250,152 238,381 212,644 223,659 201,195 151,022 161,502 189,661 158,686 167,457 113,113 77,427 58,978 12,370 Payable Gold
- z
2,464,261 250,231 249,902 238,143 212,431 223,435 200,994 150,871 161,341 189,471 158,527 167,289 113,000 77,349 58,919 12,358 Operating Cost Summary Mining & Rehandling US$/t Mined 2.89 2.42 3.21 3.05 3.23 2.92 3.50 2.70 2.80 2.86 2.36 2.34 3.07 0.00 0.00 0.00 Processing US$/t Ore Processed 11.96 11.54 12.41 12.48 12.20 12.50 12.39 12.16 12.36 11.56 11.27 10.72 12.37 12.06 11.52 11.68 General & Administrative US$/t Ore Processed 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.23 Cash Operating Costs (Net of Credits) US$/oz Gold Sold 504 345 414 426 489 447 544 602 556 506 517 426 630 788 1005 1332 Total Cash Costs US$/oz Gold Sold 554 395 464 476 539 497 594 652 606 556 567 476 680 838 1055 1382 All-In-Sustaining Costs US$/oz Gold Sold 580 407 484 493 567 532 612 677 643 598 602 500 716 864 1055 1382 Cash Flow Summary Gold Revenue $M 3,080 313 312 298 266 279 251 189 202 237 198 209 141 97 74 15 Less: Royalties, Credits, Transport & Refining $M (60) (6) (6) (6) (5) (5) (5) (4) (4) (5) (4) (4) (3) (2) (1) (0) Less: Cash Operating Costs $M (1,305) (93) (110) (108) (109) (106) (115) (95) (94) (101) (86) (76) (74) (63) (61) (17) Mining & Rehandling $M (496) (38) (51) (49) (52) (47) (56) (37) (35) (46) (32) (24) (16) (6) (6) (3) Processing $M (682) (46) (50) (50) (49) (50) (50) (49) (49) (46) (45) (43) (49) (48) (46) (12) General & Administrative $M (127) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (2) Mine EBITDA $M 1,715 214 196 184 151 168 132 90 104 132 108 130 64 32 11 (2) Less: Sustaining Capital $M (63) (3) (5) (4) (6) (8) (4) (4) (6) (8) (6) (4) (4) (2) All-In-Sustaining Costs $M (1,428) (102) (121) (117) (120) (119) (123) (102) (104) (113) (95) (84) (81) (67) (62) (17) Sustaining Margin $M 1,652 211 191 180 145 160 128 86 98 124 103 125 60 30 11 (2) Less: Working Capital Movement $M (0) (11) (0) 1 (1) 3 (0) (1) 2 (1) 3 1 1 3 Less: Taxes $M (230) (3) (12) (14) (20) (30) (26) (13) (17) (24) (21) (29) (13) (5) (1) Less: Customs Duties & VAT $M FCF Before Non-Sustaining Capital $M 1,422 200 188 168 132 139 101 60 85 105 80 103 34 17 7 (1) Less: Non-Sustaining Capital $M (351) (351) Equipment Financing $M (77) (15) (15) (15) (15) (15) Reclamation and Salvage Costs $M (5) (3) Exploration $M Mine Free Cash Flow $M 990 (366) 184 173 153 117 139 101 60 85 105 80 103 34 17 5 (2)
CORPORATE PRESENTATION
1.5MOZ OF INDICATED RESOURCES ADDED SINCE THE FS
Optimization study was preformed to capture the increased resource inventory
51 2017 OPTIMIZATION STUDY INVENTORY 2016 FEASIBILITY STUDY INVENTORY Deposits
- n a 100% basis
Indicated Resources Inferred Resources Indicated Resources Inferred Resources Tonnage (Mt) Grade (Au g/t) Content (Au koz) Tonnage (Mt) Grade (Au g/t) Content (Au koz) Tonnage (Mt) Grade (Au g/t) Content (Au koz) Tonnage (Mt) Grade (Au g/t) Content (Au koz) Open Pits Daapleu 28.1 1.50 1,349 0.7 0.92 22 19.9 1.51 965 4.3 1.15 160 Mont Ity / Flat 10.1 2.20 716 9.7 1.40 436 7.5 2.19 527 11.1 1.92 684 Gbeitouo 2.9 1.35 124 0.3 1.48 13 2.9 1.35 124 0.3 1.48 13 Walter 1.6 1.23 65 0.6 1.35 26 2.1 1.21 81 0.7 1.32 28 Zia NE 6.7 1.28 274 4.0 1.40 178 7.7 1.31 325 4.0 1.39 179 Bakatouo 10.2 2.14 704 0.6 2.27 44
- Colline Sud
1.0 2.14 66 0.4 2.11 28
- Sub-total
60.6 1.69 3,298 16.3 1.43 747 40.1 1.57 2,022 20.4 1.62 1,064 Existing Stockpiles Aires 5.8 1.09 202 0.2 0.78 6 5.8 1.09 202 0.2 0.78 6 Teckraie 2.8 1.07 97 0.1 0.55 2 2.8 1.07 97 0.1 0.55 2 Verse Ouest 5.9 0.99 187 2.3 0.50 37
- 8.4
0.85 230 Sub-total 14.5 1.04 486 2.6 0.54 45 8.6 1.08 300 8.7 0.85 238 Total 75.1 1.57 3,784 18.9 1.30 792 48.7 1.48 2,322 29.1 1.39 1,302 CORPORATE PRESENTATION
CIL RESERVES INCREASED BY 1.0Moz TO 2.9Moz
Only CIL reserves shown.
52
Deposits
- n a 100% basis
Optimization Study Reserves, as at September 1, 2017 Feasibility Study Reserves, as at October 1, 2016 Variance (koz) Tonnage (Mt) Grade (Au g/t) Content (Au koz) Tonnage (Mt) Grade (Au g/t) Content (Au koz) Open Pits Bakatouo 6.9 2.40 532
- +532
Colline Sud
- Daapleu
18.4 1.72 1,015 19.3 1.51 936 +79 Mont Ity / Ity Flat 7.4 2.03 479 3.8 2.19 268 +211 Gbeitouo 2.5 1.37 111 2.6 1.35 112 (1) Walter 1.2 1.07 41 1.9 1.22 73 (32) Zia NE 6.2 1.06 210 4.8 1.24 192 +18 Sub-total 42.5 1.75 2,390 32.4 1.52 1,580 +810 Existing Stockpiles Aires 5.8 1.09 202 5.8 1.09 202
- Teckraie/ Verse Ouest
8.7 1.02 284 2.8 1.07 97 +187 Sub-total 14.5 1.05 486 8.6 1.08 300 +186 Total 57.0 1.57 2,876 41.0 1.42 1,880 +996
Addition of Bakatouo and increases at Mont Ity, Teckraie, and Daapleu
CORPORATE PRESENTATION
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.
53
ITY EXPLORATION POTENTIAL OVERVIEW
4-6Moz
5-YEAR DISCOVERY TARGET
<$15/oz
AVERAGE 5-YEAR DISCOVERY COST
Endeavour controls the full Ity Birimian belt
CORPORATE PRESENTATION
ON-TRACK TO ACHIEVE DISCOVERY TARGET
54 2017 M&I Resource
(Base for OS)
3.8Moz 5-Year Discovery Target
(published Nov. 2016)
4-6Moz Discovery Target 1.5Moz added
2016 M&I Resource
(Base for FS)
2.3Moz
M&I Resource Evolution
Already 1.5 Moz added between November 2016 and November 2017
CORPORATE PRESENTATION
UPCOMING NEAR-MINE PRIORITIES INCLUDE:
- 1. Mont Ity / Flat Deposit
‒ Area between Mont Ity / Flat deposits ‒ Potential to extend Mont Ity at depth
- 2. Bakatouo Deposit
‒ Deposit is open in many directions
- 3. Daapleu deposit
‒ Down Plunge Potential
- 4. Le Plaque Area
‒ Floleu area with potential for a maiden resource ‒ Plaque/Falaise area with potential for a maiden resource
ITY MINE AREA UPCOMING TARGETS
55
Many advance stage targets backed by auger drill and gold-in-soil anomalies
CORPORATE PRESENTATION
56
ITY MINE EXPLORATION - LE PLAQUE DISCOVERY
Multiple High Grade Trends Discovered
INSIGHTS
‒ Le Plaque target has the potential to be the next sizeable discovery following the recent Daapleu and Bakaotuo discoveries ‒ Only the central portion, representing about 25% of the Le Plaque target, was drilled in 2017, in an area named Le Plaque Main, for which a maiden Indicated resource of 85koz at 2.70 g/t and an Inferred resource of 43Koz at 2.40 g/t was delineated
CORPORATE PRESENTATION
GREATER ITY REGIONAL GOLD IN SOIL (> 100 PPB) ANOMALIES
57
Birimian 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
CORPORATE PRESENTATION
KARMA MINE, BURKINA FASO
58
KARMA MINE QUICK FACTS (ON 100% BASIS)
Ownership 90% EDV, 10% Burkina Faso Resources (incl. of Reserves) M&I: 84.3Mt @ 1.1 g/t for 2.981Moz Inferred: 19.3Mt @ 1.3 g/t for 0.791Moz Reserves 37.9Mt @ 0.9 g/t for 1.117Moz Processing Rate 4.0mtpa Heap Leach Open Pit Strip Ratio 2.96 to 1 (2017A) Gold Recovery 83% (2017A) Mining Type Shallow open pit and free digging material with no blasting required, low strip ratio Production AISC (Mine-level) 2016A – $738/oz 2017 prelim - $835/oz 2018E - $750 -780/oz Mine life 11 years Tax regime 3% - 5% sliding scale royalty / 17.5% Corporate tax
98koz 2017A 62koz 105-115koz 2018E 2016A
RECENT AND UPCOMING CATALYSTS
Accomplished
- First gold production achieved on April 11th 2016
- Optimization in 2017 completed - The newly installed front-end and ADR plant are
expected to boost stacking capacity beyond the initial design capacity of 4Mtpa Upcoming
- Benefit of increasing stacking capacity
- Exploration on more near-mine targets
Houndé Mine Ouagadougou Karma Mine
Overview
CORPORATE PRESENTATION
Q4-17 vs Q3-17 INSIGHTS:
› Production
remained flat as higher stacking capacity and grades were offset by the anticipated lower recovery rate
› AISC decreased as a result of the aforementioned
higher grades, lower strip ratio, and lower stacking unit costs which offset the higher mining unit costs
2018 OUTLOOK
› Plant optimization work was successfully carried
- ut during 2017. The newly installed front-end
and ADR plant are expected to boost stacking capacity beyond the initial design capacity of 4Mtpa
› Production in 2018 is expected to increase to 105-
115koz and AISC is expected to decrease to $780- 830/oz as a result of the plant optimization work done in 2017
› In aggregate, roughly 15% of the 2018 ore feed is
expected to be transitional material from GG2
59
KARMA MINE, BURKINA FASO
Profile is expected to improve in 2018 with optimization work completed
Production and AISC Tonnes Stacked and Grade
21koz 21koz 24koz 32koz 29koz $922/oz
Q2-2017 Q4-2016 Q4-2017 Q3-2017 Q1-2017 AISC, US$/oz Production, koz
$738/oz 1,026kt 720kt 852kt 853kt 954kt 1.06g/t
Q2-2017 Q1-2017 Q3-2017 Q4-2017 Q4-2016 Grade milled, g/t Au Tonnes stacked, kt
1.14g/t $748/oz 1.07g/t $755/oz 1.24g/t
CORPORATE PRESENTATION
$973oz 0.91g/t
INSIGHTS
› Plant optimization
work has been successfully carried
- ut during the past
year
› The newly installed
front-end completed its performance testing and is running at steady-state
› The new ADR plant
was commissioned November
› An on-site camp was
built
KARMA MINE, BURKINA FASO
60
Optimization program completed and new front-end commissioned in 2017
ADR Area - Before ADR Area - After Feed Preparation Circuit - Before Feed Preparation Circuit - After
CORPORATE PRESENTATION
61
Several identified targets with success already being achieved
KARMA EXPLORATION OVERVIEW
0.5-1.0Moz
5-YEAR DISCOVERY TARGET
<$20/oz
AVERAGE 5-YEAR DISCOVERY COST
Targeting to discover between 0.5 to 1.0 Moz with average grade between 1.0 and 1.5 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource.
AREAS OF FOCUS:
- 1. North Kao added in
2017 and resource additions expected
- 2. Yabonsgo
drilled in 2017 with maiden resource expecetd
- 3. Nogafaere (previsouly
- wned
by Golden Rim) is a target for 2018
- 4. Rounga is a target for
2018
CORPORATE PRESENTATION
INSIGHTS:
› Oxide mineralization
discovered on a parallel structure
› Most notable intercepts
include 33.2m at 4.13 g/t Au and 22.8m at 4.18 g/t Au
› A resource for this parallel
structure is expected to be delineated in Q1-2018
62
Extension Drilling – New Parallel Trend Discovered
KARMA EXPLORATION - NORTH KAO
Map of the Yabonsgo area
CORPORATE PRESENTATION
INSIGHTS:
› 600m-long mineralized
area discovered with a stacked high grade quartz vein system
› Reconnaissance drilling
suggests potential for further extension
› Most notable intercepts
include 8.1m at 15.8 g/t Au, 6.3m at 11.0 g/t Au, and 9.9m at 6.67 g/t Au
› A maiden resource is
expected in Q1-2018
YABONSGO TARGET
63
New discovery made in 2017
Map of the Yabonsgo area
CORPORATE PRESENTATION
KALANA PROJECT, MALI
64 QUICK FACTS (ON 100% BASIS)
Ownership 80% EDV, 20% government of Mali Status DFS stage Resources (incl. of Reserves) M&I: 24.5Mt @ 4.1 g/t for 3.200Moz Inferred: 24.5Mt @ 4.5 g/t for 0.240Moz Reserves 21.7Mt @ 2.8 g/t for 1.960Moz Mine Type Open pit LOM Strip Ratio 9.9 Processing Rate 1.2 Mtpa for competent fresh ore and 1.5Mtpa for soft saprolite ore Upfront Capital (US$M) 196
LOMP SUMMARY (ON 100% BASIS)
Processing Total ore processed, Mt 22 Gold grade, g/t 2.80 Contained gold, koz 1,964 Recovery rate, % 93% Production, Moz 1.82 AISC , US$/oz 730
Tabakoto Mine Bamako
Mali
Kalana Project
Overview
CORPORATE PRESENTATION
› Feasibility-stage project › 1.2Mtpa CIL plant › Single open-pit reserve of 1.96Moz at 2.8 g/t › 18-year mine life › Low AISC cost operation with $730/oz over
life of mine
› After-tax NPV5% of $321m and after-tax IRR of
50% based on a gold price of $1,200/oz
› Endeavour intends to re-design the current
feasibility study
› Significant exploration upside
65
FITS OUR STRATEGIC PORTOFLIO CRITERIA
Kalana is a high-quality project
GENERAL INFORMATION Ownership 80% Avnel; 20% Mali government M&I Resources (inclusive of reserves) 3.10Moz @ 4.07g/t Reserves 1.96Moz @ 2.80g/t Mine Type Open Pit Processing Rate 1.2mtpa LIFE OF MINE PRODUCTION Strip ratio, w:o 9.9 Tonnes of ore processed, Mt 21.7 Grade processed, Au g/t 2.80 Gold content processed, Koz 1,964 Gold recovery, % 93% Gold production, Moz 1,821 Mine life, years 18 Average gold production, koz pa 101 koz AISC, $/oz US$730/oz CAPITAL COST Upfront capital cost, $m US$171m Sustaining capital cost, $m US$122m ECONOMIC RETURNS (US$1,200/oz) After-tax Project NPV 5%, $m US$321m After-tax Project IRR, % 50% Payback, years (undiscounted) 1.1
Numbers presented are Based on Anvel’s the Optimised Feasibility Study dated Jan. 9, 2017
CORPORATE PRESENTATION
Numbers presented are Based on Anvel’s the Optimised Feasibility Study dated Jan. 9, 2017
66
AVNEL TRANSACTION CLOSED IN SEPTEMBER
› Integration progress completed shortly
after
› Study optimization process launched and
expected to be completed by end of 2018
› Ceased underground small scale
- peration
› Focus on CSR and resettlement action
plan
OPTIMIZATION LEVERS
› Expand the plant capacity › Increase the average annual production
to +150koz and shorten the mine life
› Integrate synergies › Integrate exploration upside
FITS OUR STRATEGIC PORTOFLIO CRITERIA
Kalana has potential to increase annual production to c.150kozpa
66koz 88koz 119koz 123koz 123koz 170koz 203koz 53koz $976/oz Pre- production $703/oz
- Avg. Years
11-17 Year 5
- Avg. years
6-10 $865/oz Year 2 $446/oz $676/oz Year 1 $598/oz Year 3 $689/oz Year 4 Production AISC
Reserve life of mine plan
Potential for a +150kozpa operation
CORPORATE PRESENTATION
67
FITS OUR STRATEGIC PORTOFLIO CRITERIA
Kalana has significant exploration upside
› Kalana Main deposit still fully open
at depth
› The high-grade Kalanako prospect,
located 2.5km northeast of the Kalana Main Project, provides potential for a satellite deposit
(already hosts an Indicated resource of 119koz at 3.34 g/t)
› Kalana concession covers 387km2
and contains 27 exploration prospects with multiple geochemical anomalies
› Strong regional exploration potential
with multiple prospects outside of Kalana
› Currently have a small unclassified
resource at Djirlia
CORPORATE PRESENTATION
Source: Market data as per 28 June 2017
68
AVNEL ACQUISITION IS VALUE ACCRETIVE
Meets equity hurdle rates and is accretive on an NAV basis
NAV per share accretion
Ende deavour ur N NAV
2,061 1,834 1,573 1,329 1,199 1,136 1,122 1,058 Canaccord (9-May-17) Haywood (24-May-17) RBC (11-May-17) Clarus (30-May-17) Scotia (29-May-17) Raymond James (9-May-17) Peel Hunt (22-May-17) BMO (7-Mar-17) 272 263 223 Cormark (2-May-16) Haywood (5-Jun-17) Mackie (10-Jan-17)
Av Avnel N NAV AV
Average NAV of US$253m (P/NAV of 0.33x) Average NAV of US$1,414m (P/NAV of 1.21x)
NAV A V Accretion t to E Endeavour
› Due diligence demonstrates that
the acquisition meets minimum hurdle rate returns when accounting for the acquisition cost, the initial construction costs, and the holding / integration costs prior to production
› Strong returns based on current
feasibility study with further potential to optimize the study, unlock exploration, and benefit from synergies
› Strongly accretive on a NAV per
share basis
NAV a anal alysis a at US$120m $120m A Acquisition Cost Equity o
- ffe
ffer US$m m 122 Shares issued m 7.0 PF E Endeavour s shar ares m m 103.5 PF N NAV V US$m m 1,667 Endeavour NAV / share US$ 14.65 PF NAV / share US$ 16.10 NAV per share accretion / (dilution) % 9.87%
CORPORATE PRESENTATION
TABLE OF CONTENTS STRATEGIC OVERVIEW
1
APPENDIX
4
FULL YEAR 2017 RESULTS & 2018 OUTLOOK
2
DETAILS BY MINE AND PROJECT
3
BOARD MEMBERS
70
70
Michael BECKETT Chairman, Non-executive Director Ian COCKERILL, Non-executive Director Olivier COLOM, Non-executive Director Livia MAHLER, Non-executive Director Wayne MCMANUS, Non-executive Director Sébastien de MONTESSUS, CEO & President Naguib SAWIRIS, Non-executive Director Jim ASKEW, Non-executive Director
CORPORATE PRESENTATION
71
INSIGHTS
› Strong knowledge of
West African Birimian belts
› Senior staff from BRGM,
Randgold, Iamgold, Areva, La Mancha, etc
› 20 Seniors Geologists › SVP, 3 VPs, › 6 Exploration Managers › 40 Juniors Geologists › 130 Technicians and
Support Staff
SVP West Africa Exploration Resource VP HR Manager New Ventures Manager
Expert Geologist
Finance Manager
NI 43-101 Compliance
Abidjan based
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 Support
EVP Exploration & Growth
CI Government Relations Advisor Legal Advisor
EXPERIENCED TEAM IN PLACE
Near-mine and Regional Teams
Sr Geos Jr Geos DB Techs Account Support
Greater Ity Explo VP Regional CI Explo Manager Agbaou Explo Manager Hounde Explo VP Karma Explo Manager Regional BF Explo Manager Tabakoto/Kofi Explo Manager Kalana Explo Manager
CORPORATE PRESENTATION
›
All targets referenced and classified according to : ‒ 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: ‒ Mine Exploration then Near Mine exploration within a 5 km radius from facilities ‒ Brownfield Exploration between 5 and 15 km from facilities ‒ Greenfield Exploration for over 15/20 km from facilities (tentative stand alone future projects, or feeding the facilities if high grade)
›
All targets characterized by a minimum-maximum and mean size of tentative deposit (length, width, depth), including estimated average grade when calibration is available
›
Each selected target (~40 in 2016, ~50 in 2017) are 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 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
›
All selected exploration targets are set within a 5 year window, according to mine priorities, permit duration, requested exploration efforts, and budget and are characterized with: ‒ 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
72
UNLOCK EXPLORATION VALUE
Selection, Ranking and Risk Evaluation of Exploration targets
CORPORATE PRESENTATION
1,000 1,100 1,200 1,300 1,400 1,500 1,600
Gold Revenue Protection Program : Gold Option Collar Strategy
› Gold Option Contracts aim to increase
the certainty of the free cash flow during the construction period of the Ity CIL
› Gold Option Contracts applied to
400koz, representing ~40%
- f
Endeavour’s expected production
- ver 15 months, (Feb 2018-Apr 2019)
‒ Protect 40%
- f
production below $1,300/oz ‒ Fully exposed between 1,300 and $1,500/oz ‒ Upside beyond $1,500/oz on 60% of production
› Once
the Gold Option Contracts program ends, Endeavour will return to a position where its gold production is fully exposed to spot gold prices
73 73
GOLD REVENUE PROTECTION PROGRAM
Gold price in US$/oz Collar “bought puts” strike Collar “written calls” strike
CORPORATE PRESENTATION
Upside on 60% of production Upside on 100% of production Protection on 40% of production
Increased certainty of the FCF during the construction period of the Ity CIL
ADVANTAGES OF THE CONVERTIBLE NOTES
74
Reduces its overall financing costs and de-risks LIBOR exposure
Annual saving based on $330m convertible compared to $330m drawn on RCF at various Libor rates
$25m $21m $18m $15m $11m $7m $6m 7.0% 6.0% 5.0% 4.0% 3.0% 1.8% (current) 1.5% LIBOR rates
Historic Libor curve
1.8%
CORPORATE PRESENTATION
75
ADVANTAGES OF THE CONVERTIBLE NOTES
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% $15 $17 $19 $21 $23 $25 $27 $29 $31 $33 $35 $37 $39 $41 $43 $45 $47 $49 $51 Straight bond yield Convert yield
Solid alternative to a straight bond
All-in cost comparison: straight bond vs. convertible
Share Price in C$
$37/share Break-even point
CORPORATE PRESENTATION
76
ADVANTAGES OF THE CONVERTIBLE NOTES
Based on $330m convertible note
Limited dilution due to option to settle in cash
Dilution impact
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 1 6 11 16 21 26 31 36 41 46 51 Potential dilution Share price at maturity
If $330m principle is settled in cash and in the money option in shares If all settled in shares
CORPORATE PRESENTATION
Net free cash flow increased despite increased exploration spend
NET FREE CASH FLOW FROM OPERATIONS DOUBLED
INSIGHTS
- 1. Gold sales up mainly due to the
addition of the Karma mine
- 2. Inclusive
- f
15,000
- unces
delivered under the Karma stream
- 3. Increase due to strategic focus
- n exploration
- 4. 2017 figure includes Nzema
(asset classified as Held-For- Sale) and 2016 figure includes Youga (asset sold)
- 5. The working capital variation
improved to $18m in Q3-2017, from negative $27m in Q2- 2017, with the year-to-date
- utflow reduced to $1m
Additional notes available in Endeavour’s MD&A filed on Sedar for the referenced periods.
NINE MONTHS ENDED
(in US$ million)
SEPT 30, 2017 SEPT 30, 2016
GOLD SOLD FROM CONTINUING OPERATIONS, koz 370 312 Gold Price, $/oz 1,214 1,238 REVENUE FROM CONT. OPS 445 394 Total cash costs (260) (190) Royalties (23) (18) Corporate costs (15) (15) Sustaining capex (30) (32) Sustaining exploration (9) (5) ALL-IN SUSTAINING COSTS (“AISC”) (338) (260) ALL-IN SUSTAINING MARGIN FROM CONT. OPS 107 133 AISC Margin from asset held for sale 37 5 Less: Non-sustaining capital (23) (20) Less: Non-sustaining exploration (22) (13) FREE CASH FLOW BEFORE GROWTH PROJECTS
(and before working capital, tax & financing costs)
100 106 Working capital (1) (49) Taxes paid (16) (12) Interest paid (19) (19) Cash settlements on hedge programs and gold collar premiums (4) (13) NET FREE CASH FLOW FROM OPERATIONS 59 12
3 1 2 3
77
4 5
CORPORATE PRESENTATION
Cash from operations and RCF used to fund growth
GROWTH FUNDING SOURCES
INSIGHTS
- 1. For
Houndé construction ($186m), Karma optimization ($22m), Ity CIL Project ($13m)
- 2. Consists
mainly
- f $54m
for the purchase of an additional 25% stake in the Ity mine which was offset by the $8m inflow of cash acquired upon the acquisition of the Kalana mine
- 3. Mainly La Mancha private placements
less dividends to minorities. Cash position includes $30m of La Mancha private placements received after quarter-end.
- 4. Used to fund Houndé project
- 5. Cash position includes $30m of La
Mancha private placements received after quarter-end.
- 6. Upsized from $350m to $500m with
better terms
1Sept 30, 2017 Pro-forma includes $28m of cash held at the Nzema held-for-sale asset and $30m of La Mancha private placement which was received after quarter-endAdditional notes available in Endeavour’s MD&A filed on Sedar for the referenced periods.
NINE MONTHS ENDED
(in US$ million)
SEPT 30, 2017 SEPT 30, 2016
NET FREE CASH FLOW FROM OPERATIONS 59 12 Growth projects (221) (80) Greenfield exploration expense (6) (4) Restructuring costs (7) (18) Acquisition & disposal of mining interests (54) 11 Cash paid on settlement of share appreciation rights, DSUs and PSUs (4) (2) Net equity proceeds and dividends to non-controlling interests 77 181 Proceeds (repayment) of long-term debt 160 (106) Proceeds from pre-production gold sales
- 34
Other (foreign exchange gains/losses and other) (4)
- CASH INFLOW (OUTFLOW) FOR THE PERIOD
1 28
4 1 2
78
3
(in US$ million)
- SEPT. 30, 2017
PRO-FORMA1
- SEPT. 30,
2017
- JUN. 30,
2017
- DEC. 30,
2016 Cash 155 125 85 124 Less: Equipment finance lease (46) (46) (47) (10) Less: Drawn portion of $500 million RCF (300) (300) (220) (140) NET DEBT POSITION (191) (221) (183) (26) NET DEBT / ADJUSTED EBITDA (LTM) RATIO 0.85 0.98 0.76 0.11
5
Net Debt Position Net Cash Flow
6
CORPORATE PRESENTATION
PRODUCTION DETAILS BY MINE
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.
79
For the years quarters ended 2017 and 2016
(on a 100% basis) AGBAOU NZEMA TABAKOTO ITY KARMA HOUNDE Unit Q4-2017 Q3-2017 Q4-2016 Q4-2017 Q3-2017 Q4-2016 Q4-2017 Q3-2017 Q4-2016 Q4-2017 Q3-2017 Q4-2016 Q4-2017 Q3-2017 Q4-2016 Q4-2017 Physicals Total tonnes mined – OP1 000t 7,216 7,576 6,518 1,431 1,333 2,885 1,863 1,098 1,593 1,680 1,191 1,472 3,717 3,637 4,023 6,973 Total ore tonnes – OP 000t 826 824 674 369 310 288 165 108 195 403 305 316 1,185 593 783 447 Open pit strip ratio1 W:t ore 7.92 8.19 8.67 2.88 3.30 9.02 10.32 9.13 7.17 3.17 2.90 3.66 2.14 5.13 4.14 14.59 Total tonnes mined – UG 000t
- 207
226 324
- Total ore tonnes – UG
000t
- 157
179 253
- Total tonnes milled
000t 760 770 721 377 368 428 435 392 402 372 312 295 1,026 720 853 813 Average gold grade milled g/t 1.85 1.96 2.46 2.13 3.39 2.20 2.20 2.64 3.93 1.86 1.58 2.00 1.06 0.91 1.14 2.75 Recovery rate % 93% 93% 97% 92% 92% 82% 92% 93% 95% 78% 74% 90% 77% 87% 90% 95% Gold produced
- z
43,439 46,326 57,061 24,846 37,440 23,874 28,117 31,602 47,884 17,287 11,727 17,480 21,102 21,005 29,112 68,754 Gold sold
- z
41,490 46,675 56,936 23,366 38,570 22,033 27,740 31,693 47,053 16,316 11,799 15,038 20,574 20,622 28,743 60,990 Mine-level AISC Per Ounce Sold $/oz ~665 638 532 ~850 705 1,118 ~1,282 1,278 927 ~947 1,141 827 ~922 973 738 ~373
CORPORATE PRESENTATION
ON A QUARTERLY BASIS ON A FULL YEAR BASIS
(on a 100% basis) AGBAOU NZEMA TABAKOTO ITY KARMA HOUNDE Unit Dec 31, 2017 Dec 31, 2016 Dec 31, 2017 Dec 31, 2016 Dec 31, 2017 Dec 31, 2016 Dec 31, 2017 Dec 31, 2016 Dec 31, 2017 Dec 31, 2016 Dec 31, 2017 Physicals Total tonnes mined – OP1 000t 28,101 25,382 6,873 9,295 6,400 7,098 6,647 6,102 15,313 8,753 17,933 Total ore tonnes – OP 000t 2,983 2,797 1,427 1,000 647 649 1,410 1,186 3,862 1,879 1,026 Open pit strip ratio1 W:t ore 8.47 8.07 3.81 8.30 8.89 9.94 3.71 4.15 2.96 3.66 16.48 Total tonnes mined – UG 000t
- 997
1,301
- Total ore tonnes – UG
000t
- 756
944
- Total tonnes milled
000t 2,906 2,827 1,499 1,761 1,640 1,588 1,194 1,173 3,552 2,089 813 Average gold grade milled g/t 2.02 2.27 2.58 1.87 2.90 3.36 1.85 2.20 1.07 1.16 2.75 Recovery rate % 94% 97% 92% 83% 94% 95% 83% 93% 83% 90% 95% Gold produced
- z
177,191 195,505 115,621 87,710 143,995 162,817 59,026 75,867 97,982 61,813 68,754 Gold sold
- z
174,868 196,316 117,242 85,495 144,636 161,803 59,688 73,332 96,935 28,743 60,990 Mine-level AISC Per Ounce Sold $/oz ~641 534 ~858 1,167 ~1,127 1,027 ~927 756 ~835 738 ~373
PRODUCTION AND COST DETAILS BY MINE
1) Includes waste capitalized
80
80
CORPORATE PRESENTATION
For the first 9 months ended Sept. 30
(on a 100% basis) AGBAOU NZEMA TABAKOTO ITY KARMA Unit 9 Months 2017 9 Months 2016 9 Months 2017 9 Months 2016 9 Months 2017 9 Months 2016 9 Months 2017 9 Months 2016 9 Months 2017 9 Months 2016 Physicals Total tonnes mined – OP1 000t 20,884 18,864 5,441 6,410 4,536 5,505 4,968 4,630 11,596 8,364 Total ore tonnes – OP 000t 2,157 2,123 1,058 712 482 454 1,008 870 2,678 4,730 Open pit strip ratio1 W:t ore 8.68 7.89 4.14 8.00 8.40 11.13 3.93 4.32 3.33 3.32 Total tonnes mined – UG 000t
- 790
977
- Total ore tonnes – UG
000t
- 599
691
- Total tonnes milled
000t 2,146 2,106 1,121 1,333 1,204 1,186 822 878 2,526 927 Average gold grade milled g/t 2.09 2.20 2.73 1.77 3.16 3.17 1.85 2.20 1.08 1.18 Recovery rate % 94% 97% 93% 85% 94% 94% 85% 94% 85% 90% Gold ounces produced
- z
133,752 138,444 90,774 63,836 115,878 114,933 41,739 58,387 76,880 32,701 Gold sold
- z
133,378 139,380 93,876 63,462 116,895 114,750 43,372 58,294 76,361 34,141 Unit Cost Analysis Mining costs - Open pit $/t mined 2.49 2.17 5.74 4.83 3.65 3.47 3.18 3.02 1.84
- Mining costs – Underground
$/t mined
- 63.98
48.47
- Processing and maintenance
$/t milled 7.19 6.72 16.10 12.87 20.79 21.40 15.35 15.24 9.02
- Site G&A
$/t milled 4.09 4.66 6.42 6.56 10.92 12.28 9.36 10.20 4.36
- Cash Cost Details
Mining costs - Open pit1 $000s 52,063 40,883 31,250 30,958 16,576 19,107 15,815 13,998 21,391
- Mining costs -Underground
$000s
- 50,541
47,356
- Processing and maintenance
$000s 15,426 14,143 18,051 17,151 25,030 25,377 12,619 13,382 22,796
- Site G&A
$000s 8,769 9,813 7,200 8,746 13,150 14,568 7,697 8,955 11,002
- Purchased ore at Nzema
$000s
- 13,187
17,162
- Capitalized waste
$000s (1,960) (4,525) (1,966) (10,531) (12,595) (13,007) (2,376) (3,149) (1,970)
- Inventory adjustments and other
$000s (2,086) (348) 1,676 6,247 9,224 3,335 (723) (168) (259)
- Cash costs for ounces sold
$000s 72,211 59,966 69,368 69,733 101,926 96,736 33,032 33,018 52,960
- Royalties
$000s 5,894 6,531 6,730 4,198 8,729 8,613 2,110 2,683 6,233
- Sustaining capital
$000s 6,401 7,973 4,579 1,212 16,185 17,112 4,763 7,270 2,739
- Cash cost per ounce sold
$/oz 541 430 739 1,099 872 843 762 566 694
- Mine-level AISC Per Ounce Sold
$/oz 634 534 859 1,184 1,085 1,067 920 737 811
RESERVES AND RESOURCES
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.com Ity reserves and resources are stated as per updated 2017 figures, published in September 20, 2017 press release.
81
On a 100% basis Resources shown inclusive of Reserves Tonnage (Mt) Grade (Au g/t) Content (Au koz) Proven Reserves
13 2.70 1,143
Probable Reserves
155 1.73 8,615
P&P Reserves
168 1.81 9,758
Measured Resource (incl Reserves)
22 3.21 2,316
Indicated Resources (incl Reserves)
231 1.75 13,048
M&I Resources (including Reserves)
254 1.88 15,364
Inferred Resources
52 1.82 3,065
Group Consolidated Total
Resources shown inclusive of
- Reserves. On a 100% basis
Tonnage (Mt) Grade (Au g/t) Content (Au koz) Proven Reserves 0.1 2.67 6 Probable Reserves 60.2 1.62 3,132 P&P Reserves 60.3 1.62 3,138 Measured Resource (incl reserves)
- Indicated Resources (incl reserves)
75.1 1.57 3,784 M&I Resources (including Reserves) 75.1 1.57 3,784 Inferred Resources 18.9 1.30 792
Ity Mine & CIL Project
Resources shown inclusive of
- Reserves. On a 100% basis
Tonnage (Mt) Grade (Au g/t) Content (Au koz) Proven Reserves 5.1 3.00 490 Probable Reserves 16.6 2.75 1,470 P&P Reserves 21.7 2.80 1,960 Measured Resource (incl reserves) 9.5 4.20 1,280 Indicated Resources (incl reserves) 15.0 4.02 1,920 M&I Resources (including Reserves) 24.5 4.02 3,200 Inferred Resources 1.7 4.51 240
Kalana Project
Resources shown inclusive of
- Reserves. On a 100% basis
Tonnage (Mt) Grade (Au g/t) Content (Au koz) Proven Reserves 2.9 2.98 274 Probable Reserves 3.4 3.12 341 P&P Reserves 6.3 3.06 615 Measured Resource (incl reserves) 6.9 2.88 638 Indicated Resources (incl reserves) 12.1 3.09 1,206 M&I Resources (including Reserves) 19.0 3.01 1,844 Inferred Resources 8.2 3.45 908
Tabakoto Mine
Resources shown inclusive of
- Reserves. On a 100% basis
Tonnage (Mt) Grade (Au g/t) Content (Au koz) Proven Reserves 3.7 2.48 296 Probable Reserves 26.9 2.06 1,779 P&P Reserves 30.6 2.11 2,075 Measured Resource (incl reserves) 3.7 2.57 305 Indicated Resources (incl reserves) 34.2 2.04 2,247 M&I Resources (including Reserves) 37.9 2.09 2,551 Inferred Resources 3.2 2.62 274
Hounde Mine
Resources shown inclusive of
- Reserves. On a 100% basis
Tonnage (Mt) Grade (Au g/t) Content (Au koz) Proven Reserves 1.0 2.20 69 Probable Reserves 10.0 2.44 784 P&P Reserves 11.0 2.41 853 Measured Resource (incl reserves) 1.9 1.41 85 Indicated Resources (incl reserves) 11.2 2.56 919 M&I Resources (including Reserves) 13.0 2.39 1,004 Inferred Resources 1.1 1.73 60
Agbaou Mine
Resources shown inclusive of
- Reserves. On a 100% basis
Tonnage (Mt) Grade (Au g/t) Content (Au koz) Proven Reserves 0.4 0.59 8 Probable Reserves 37.4 0.92 1,109 P&P Reserves 37.9 0.92 1,117 Measured Resource (incl reserves) 0.4 0.59 8 Indicated Resources (incl reserves) 83.8 1.10 2,973 M&I Resources (including Reserves) 84.3 1.10 2,981 Inferred Resources 19.3 1.27 791
Karma Mine
Project1 Agbaou Nzema Tabakoto Ity Karma2 Hounde UG Open Pit Reserves Au price 1,350 1,250 1,250 1,250 1,250 1,300 1,300 Resources Au price 1,500 1,500 1,500 1,500 1,500 1,557 1,500
1 Cut off grades for all resources open pits are 0,5g/tAu, except at Karma where the cutoff grade is defined by material type:Oxide=0.2, Transition=0.22 and Sulfide=0,5
2 North Kao reserves and resources has a gold price of respectively $1,250/oz and $1,500/ozNotes :
As of December 31, 2016
CORPORATE PRESENTATION