Q1 Q2 OPERATIONAL & FINANCIAL RESULTS Q3 › May 1, 2019 Q4
Q1-2019 RESULTS DISCLAIMER & FORWARD LOOKING STATEMENTS Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. This presentation contains “forward -looking statements” including but not limited to, statements with 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. Gérard de Hert, EurGeol, Senior VP Exploration for Endeavour Mining, has reviewed and approved the technical information in this presentation. Gérard de Hert has more than 20 years of mineral exploration and mining experience and is a "Qualified Person" as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). 2
SPEAKERS TABLE OF CONTENTS 1 Q1-2019 IN REVIEW SÉBASTIEN DE MONTESSUS President & Chief Executive Officer 2 FINANCIAL SUMMARY DETAILS BY MINE AND 3 VINCENT BENOIT EVP – CFO PROJECT and Corporate Development 4 CONCLUSION PATRICK BOUISSET 5 APPENDIX EVP – Exploration and Growth Note : All amounts are in US$, except where indicated, and may differ from MD&A due to rounding
Q1-2019 RESULTS Q1-2019 ACTIVITIES RECAP Strong continued achievements across our 4 pillars 1 2 3 4 UNLOCKING PORTFOLIO & OPERATIONAL PROJECT EXPLORATION BALANCE SHEET EXCELLENCE DEVELOPMENT VALUE MANAGEMENT ✓ Strong safety record ✓ Ity CIL commercial ✓ Over 115,203m drilled in Q1- ✓ Strong liquidity sources ✓ Group production and production declared 4 2019 across the group of $144m with Ity CIL months ahead of schedule ✓ Drill results expected to be now in commercial AISC guidance on track in early April at full production published in Q2 on the nameplate capacity ✓ Increased ownership Houndé Kari West and Kari ✓ Work underway to increase Center discoveries stake in the Ity mine the Ity CIL plant capacity by ✓ Le Plaque updated resource from 80% to 85% 1Mtpa to 5Mtpa, at a expected to be published in minimal cost of $10-15m Q2-2019 4
Q1-2019 RESULTS Q1 PERFORMANCE ON-TRACK TO MEET GUIDANCE On-track to meet 2019 guidance with Ity CIL commercial production in Q2 GROUP BELOW Q1 LTIFR 1 INDUSTRY 0.72 0 Industry Average GROUP Q1 ON-TRACK PRODUCTION 121koz 615-695koz Guidance $760/oz $810/oz GROUP AISC Q1 ON-TRACK $877/oz Guidance Lost Time Injury Frequency Rate= (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period) 5 The selected peer group based on same reporting metrics, used from company annual reports for 2018 from Centamin, Coeur Mining, B2Gold, Eldorado Gold, Nordgold, Glencore and Asanko
Q1-2019 RESULTS STRONG SAFETY RECORD Our safety record remained below the industry average in Q1-2019 Lost Time Injury Frequency Rate (on a rolling 12-months basis) 0.04 0.72 LTM Lost Time Injury Frequency Rate 0.40 0.29 + 500 days 0.16 0.04 0.00 0.00 0.00 without an LTI on Peer FY2016 FY2017 FY2018 Q1-2019 Houndé Agbaou Ity Hounde, Ity, Agbaou, Average (LTM) (for 2018) Karma and projects 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) 6 The selected peer group based on same reporting metrics, used from company annual reports for 2018 from Centamin, Coeur Mining, B2Gold, Eldorado Gold, Nordgold, Glencore and Asanko
Q1-2019 RESULTS WELL POSITIONED TO MEET FULL YEAR 2019 GUIDANCE Upcoming benefit of Ity CIL and higher grades across other mines Group Production and AISC (for continuing operations) Ity Heap Leach (ceased in Q4-2018) Other operating mines AISC -53koz 174koz (record quarter!) 152koz Q1-2019 vs. Q4-2018 147koz 139koz 121koz $707/oz $877/oz $820/oz $780/oz $707/oz $685/oz +$ 170 /oz Q1-2019 vs. Q4-2018 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Outlook 7
Q1-2019 RESULTS STRATEGIC FOCUS TO REDUCE LOW-GRADE STOCKPILES Despite impact on AISC and production, $8m of inventory adjustments utilized in Q1-2019 AISC including discontinued operations, in US$/oz Tonnes ore mined (kt) Tonnes ore milled (kt) Use of stockpiles ῀ 30% 2,850kt Mill feed from low- 28% grade stockpiles 2,053kt $ 64 /oz 1,095kt 1,034kt 24% 834kt 26% 769kt 720kt Amount included in group 37% 451kt AISC related to non-cash inventory adjustments Agbaou Karma Houndé Total Excludes Ity CIL Project for which commercial production was declared in early Q2-2019. 8 No stacking was done at the Ity Heap Leach operation, however 3koz were recovered, therefore included in inventory adjustments
Q1-2019 RESULTS WELL POSITIONED TO MEET FY-2019 GUIDANCE Upcoming benefit of Ity CIL and higher grades across other mines INSIGHTS BY MINE AGBAOU ITY HL ITY CIL HOUNDÉ KARMA (Pre-commercial production) 76koz 44koz 21koz 33koz $1,086 55koz 32koz 22koz $781 3koz 9koz $957 $622 $776 $784 $588 $697 Q4-18 Q1-19 OUTLOOK Q4-18 Q1-19 Q4-18 Q1-19 OUTLOOK Q4-18 Q1-19 OUTLOOK Q4-18 Q1-19 OUTLOOK Q1-2019 vs. Q4-2018 INSIGHTS OUTLOOK INSIGHTS › › Production decreased in line with expectations as low-grade Production expected to remain flat while AISC are expected to Agbaou stockpiles temporarily supplemented plant feed increase to the guidance range › › Only residual ounces recovered No production Ity Heap Leach › › Pre-commercial production Strong benefit from commercial production declared in early Q2 Ity CIL at full nameplate capacity › › Production decreased and AISC increased in line with expectations Stronger performance expected in H2-2019 due to the benefit due to low-grade stockpiles temporarily used to supplement stack of stacking oxide ore from the North Kao pit Karma feed and its associated lower recovery rate › › Production decreased and AISC increased in line with expectations Stronger performance expected in H2-2019 once the high-grade Houndé as low-grade stockpiles temporarily supplemented plant feed Bouere deposit is commissioned › › Ity Heap Leach operation ceased Ity CIL project commissioned in early Q2-2019 and operating at full nameplate capacity MAIN DRIVERS FOR › The group strategically fed ῀ 30% of total mill feed from low- THE GROUP › grade stockpiles, in line with the previously announced focus on Higher process grades expected across the group reducing working capital 9
Q1-2019 RESULTS OPERATING CASH FLOW GENERATION Remained strong which helped finance investments in the business Operating Cash Flows Before Non-cash Working Capital (from continuing operations) -$5m $84m Q1-2019 vs. Q4-2018 despite 57koz less $64m produced $53m $48m $45m -9% Q1-2019 vs. Q4-2018 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 10
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