corporate presentation...corporate presentation cash cost per ounce and all-in sustaining cash cost...
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› April 2017
Corporate Presentation
DISCLAIMER & FORWARD LOOKING STATEMENTS
2
CORPORATE PRESENTATION
Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. This prese tatio o tai s for ard-looki g state e ts i ludi g ut ot li ited to, state e ts ith respe t to E dea our’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-looki g ter i olog su h as e pe ts , e pe ted , udgeted , fore asts a d a ti ipates . Forward-looki g state e ts, hile ased o a age e t’s est esti ates a d assu ptio s, are su je t to risks a d u ertai ties that ay 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 E dea our’s ost re e t A ual I for atio For filed u der its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.
Adriaan Attie Rou , Pr.Sci.Nat, E dea our’s Chief Operati g Offi er, is a Qualified Perso u der NI -101, and has reviewed and approved the technical information in this presentation.
TABLE OF CONTENTS
CORPORATE OVERVIEW 1
APPENDIX 4
2017 OUTLOOK 2
DETAILS BY MINE AND PROJECT 3
4
ENDEAVOUR MINING OVERVIEW A Premier African Gold Producer With 5 Mines and 2 Projects
CORPORATE OVERVIEW
COMPANY PROFILE
5
0
5
10
15
20
25
30
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000Volume Adj Close
Share Price Performance
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%
Top Shareholders
*As of March 28, 2017
Ticker TSX:EDV
Shares in Issue 93.8 m
Fully Diluted 94.6 m
Share price* C$24.75
Market cap* US$1,840m
Net Debt (Dec 31, 2016) US$26m
Shareholder Distribution
MANAGEMENT
1%
LA MANCHA
29%
RETAIL
7%
INSTITUTIONAL
63%
Other
Europe
North America
In CAD
CORPORATE OVERVIEW
INVESTMENT HIGHLIGHTS
6
Endeavour offers exposure to both near and long-term growth potential, in addition to current production
with an accomplished management team and a healthy balance sheet
Immediate Cashflow
from PRODUCTION
Near-Term Growth
from PROJECTS
Long-Term Upside
from EXPLORATION
CORPORATE OVERVIEW
2016 2011 2017 2012 2014 2010 2019 2015 2013 2018
$922 $884
$1 010
$1,137
Assumes Ity construction starts H1-2017 and first gold production in 2019 with Heap Leach operation ending once CIL starts 7
CLEAR PATH TO BUILD A +900KOZ PRODUCER AT ≤$800/OZ AISC
+900koz
83koz
167koz 220koz
317koz
462koz
517koz
584koz
600-640koz
It CIL , Côte d’I oire
Karma, Burkina Faso
Youga, Burkina Faso
Nzema, Ghana
Group AISC
It Heap Lea h , Côte d’I oire
Houndé, Burkina Faso Ag aou, Côte d’I oire
Tabakoto, Mali
+900koz Annual production
10+ year Mine life
≤800$/oz All-in cash cost
STRATEGIC MILESTONES FOR 2019
$860-905
<$800
CORPORATE OVERVIEW
STRATEGIC LEVERS
8
BUILDING A PREMIER AFRICAN GOLD PRODUCER
+900koz Annual production
10+ year Mine life
≤800$/oz All-in cash cost
STRATEGIC OBJECTIVES
4 Strategic Levers to Achieve Objectives
CORPORATE OVERVIEW
Hands-on Management Model With Teams Close to Operations
OPERATIONAL EXCELLENCE
9
1
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:
• Government relations
• Operations controlling
• Procurement
• Exploration
• Projects
• Environmental
• CSR
• HR – mine level
FUNCTIONS:
• Finance
• Investor relations
• Corporate development
• People and culture
All GMs Located on Site
Management Focus
Safety First Lean and Efficient
Operations
Hands-On
Management
Cash flow driven
CORPORATE OVERVIEW
Free Cash Flow (before growth projects, WC, tax and financing cost) 10
OPERATIONAL EXCELLENCE Record performance and met all guidance metrics in 2016
584koz in 2016 +13% vs 2015
575koz
PRODUCTION GUIDANCE
610koz
$884/oz in 2016 (4%) vs 2015
$870/oz
AISC GUIDANCE
$920/oz
$142m 2016 +55% vs 2015
$135m (based on mid-points)
FCF BEFORE GROWTH PROJECTS
GUIDANCE
1
CORPORATE OVERVIEW
Production, on a 100% basis in koz All-in Sustaining Costs, in $/oz
Cash Flow Generation Lost Time Injury Frequency Rate
11
Proven track record of meeting guidances
OPERATIONAL EXCELLENCE 1
9221,010
1,137
884
2017 Guidance
860-905
2013 2014 2015 2016
324466 517
584
2016 2014 2015 2013 2017 Guidance
600 - 640
Free cash flow before growth projects (and before WC, tax, and financing costs)
Lost Time Injury Frequency Rate (Number of LTIs in the Period X 1,000,000) / Total man hours worked for the period)
0.29
2014
1.73
0.73
2013 2015 2016
0.76
$28m
2013 2014
$85m
2016
$135m
2015
$35m
2017 Guidance
$150m
Guidance Guidance
$1,392/oz $1,264/oz $1,157/oz $1,240/oz $1,240/oz
CORPORATE OVERVIEW
12
18 19 20
1,250
8 2 3 4 5 6 7
850
1,200
650
700
750
800
1,150
900
10
950
$1,000/oz
1,050
1,100
9 16 11 12 13 14 15 17
Mako (Toro)
Baomahun (Amara)
Kalana (Avnel)
Tri-K (Avocet)
Wa-Lawra (Azumah)
Fekola (B2Gold)
Banfora (Gryphon)
Yanfolila (Hummingbird )
Dugbe 1 (Hummingbird)
Sissingue (Perseus)
Yaramoko (Roxgold)
Kobada (African Gold Group)
Natougou (Semafo)
Bouly (NordGold)
Mine life, years
West African DFS Stage Projects Benchmark: Mine life and All-in cost (including initial capex)
All-in
Cash
Co
st, $
/oz (A
ISC
+ In
itial C
ap
ex)
Houndé
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
Bubble size represents
average annual production
= 100koz p.a.
Ity CIL
Houndé and Ity CIL are top tier projects
PROJECT DEVELOPMENT 2
CORPORATE OVERVIEW
13
PROJECT DEVELOPMENT 2
Life of Mine Plan
› Construction started in April with first gold pour expected in Q4-2017
› Construction is progressing on-time and on-budget
› Procurement is nearly complete
› 10-year mine life based on current reserves + significant exploration upside
› Average production of 190kozpa at AISC of US$709/oz
› Capex of $328m, inclusive of $47m for owner-mining fleet
› Robust Project with after-tax IRR of +30% at US$1,250/oz
Year 3
184koz
Year 9 to 10 Average
$648/oz
223koz 218koz
Year 1
$901/oz
Year 2
231koz
$645/oz
Year 5 to 8 Average
$662/oz
265koz
$496/oz
116koz
Year 4
$506/oz
AISC/oz Production based on reserves, koz
Houndé is positio ed to e E dea our’s flagship lo ost i e
Exploration upside expected to fill this shortfall
CORPORATE OVERVIEW
14
PROJECT DEVELOPMENT 2
$898/oz
Year 5
$554/oz
Years 10 to 14
109koz
$608/oz
133koz
Year 9
$638/oz
103koz
Year 8
124koz
Year 7 Year 6
53koz $622/oz
150koz
$582/oz
Year 4
185koz
Year 3
$608/oz
Year 2
193koz
$500/oz
134koz
$409/oz
Year 1
163koz
$477/oz
AISC/oz Production based on reserves, koz
165kozpa at AISC of US$507/oz on average over the first 5 years
Long-life Low Cost Project
• Long 14-year reserves mine life
• Low AISC of $507/oz over first 9 years
• Solid production of 144kozpa over first 9 years
Robust Project Economics (based on $1,250/oz)
• After-tax IRR of 36%
• After-tax NPV5% of $411m
• Quick payback of 2.1 years
Significant improvement expected in H1-2017 Feasibility Study update
• Inclusion of the recent high-grade Bakatouo and Colline Sud discoveries and Verse Ouest
• Additional Resource conversion at Daapleu and Mont Ity
Well-positioned with strong liquidity sources to take final investment decision in H1-2017
Ity CIL Feasibility Study Published in 2016
Agbaou Mine
Abidjan
Ity Mine
Côte d’I oire
CORPORATE OVERVIEW
15
UNLOCK EXPLORATION VALUE Amongst Largest and Most Promising Portfolios in West Africa
3
CORPORATE OVERVIEW
16
UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Low Discovery Costs
4.0-6.0Moz
Houndé Tabakoto Greater Ity Agbaou True Gold Côte d’I oire Regio al
3
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 on 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 strong targets for 2017+
› Limited exploration (mainly focused on converting inferred)
› Focus on pit extensions and parallel trends
› Targets backed by geochem anomolies
› 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 on 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- . g/t fo Côte d I oi e egio al. The pote tial ua tit of ou es is o eptual i atu e si e the e has ee i suffi ie t exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource.
CORPORATE OVERVIEW
UNLOCK EXPLORATION VALUE
17
$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’I oire Regional
True Gold Agbaou Greater Ity Houndé Tabakoto
Exploration budget Average discovery cost
3
CORPORATE OVERVIEW
18
UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: What are the priorities?
Corporate Presentation
22%
23%
2017
100%
8%
13%
25%
18%
13%
23%
26%
43%
7%
12%
4%
27%
6%
2020
100%
13%
9%
35%
6%
2019
100%
10% 4%
20%
21%
3%
2021
100%
2%
20%
2018
100%
7%
35%
25%
20%
Tabakoto Agbaou Regional CI Karma and Regional Hounde Ity
3
PRIORITIES: i. Tabakoto due to its short mine life ii. Agbaou to extend oxide mine life iii. Ity to extend HL and Improve CIL case iv. Houndé (once in production) to maintain 250kozpa level after 4th year
PRIORITIES: i. Ity Greater Area ii. Houndé to prolong mine life iii. Tabakoto and Agabou exploration will be
success driven
Increase Overall Quality of our Portfolio
19
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
$900/oz
$1,200/oz
$950/oz
$1,000/oz
$1,050/oz
$1,100/oz
$1,150/oz
$850/oz
$750/oz
$700/oz
$650/oz
$600/oz
$550/oz
$500/oz
$450/oz
$800/oz
Mine life, years
SOLD
Agbaou (175-180koz)
Nzema (100-110koz)
Tabakoto (150-160koz)
AISC, US$/oz
Ity HL (75-80koz)
Ity CIL 165koz
starting 2019
Karma (100-110koz)
Bubble size represents production
Côte d’I oire Burkina Faso Ghana Mali
Possibility to run HL in parallel
Youga
Houndé +250koz starting Q4-2017
Cut-back
PORTFOLIO & BALANCE SHEET MANAGEMENT 4
CORPORATE OVERVIEW
20
PORTFOLIO & BALANCE SHEET MANAGEMENT Well Positioning Ourselves Against Our Peers
4
1,050
17
1,100
14 16 13 12 11 10 9 8 7 6 5 4
950
900
850
700
650
750
800
1,000
600
18 15
AISC, $/oz
AngloGold Ashanti
Endeavour 2016A
Endeavour 2015A
Asanko
Teranga
Semafo
Resolute
Randgold
Golden Star
Gold Fields
Perseus
Nordgold
Average mine life, years
Newmont Newcrest
Kinross
IAMGOLD
Bubble size represents production
Endeavour (output of strategic exploration review)
Source: UBS Research, based on 2015A only West-Africa production. Mine life excludes expansion and development projects such as Ki ross’ Tasiast Phase 2 and Resolute’s UG project Asanko based on 2017 guidance
Benchmark of West-African Producers
CORPORATE OVERVIEW
INSIGHTS › Strong liquidity and financing sources to fund remaining
Houndé capex spend of approx. $180m
› Further headroom potential to fund exploration and Ity CIL with free cash flow
INSIGHTS › $65m cash injection from La Mancha in May 2016
following the True Gold transaction close
› $104m of net proceeds from bought deal in July 2016
› FCF of $142m (before growth projects, WC, tax and financing cost)
Net debt = Cash less drawn RCF, leases & drawn equipment financing RCF of $350 million, maturity date March 2020, semi-annual reductions commencing September 2018, annual interest based on LIBOR + a 3.75% to 5.75% margin 21
$26m
2014 (year-end)
2015 (year-end)
$144m
2016 (year-end)
$254m
Net Debt to trailing 12-month Operating EBITDA ratio Net debt
$210m Undrawn RCF
$124m Cash Position
$334m As of Dec 31st, 2016
Liquidity and Financing Sources Net Debt Reduction
1.8x 1.0x
0.1x
PORTFOLIO & BALANCE SHEET MANAGEMENT 4 Healthy financial structure to fund growth
CORPORATE OVERVIEW
Well positioned to fund growth
Strong Liquidity Sources and Cash Flow generation to fund internal growth
As of end December 2016 22
Objective to keep leverage in a maximum range of 0.5x-1.0x
$124m
$210m
~$480m
Ity Equipment Financing (expected) ~$300m
Liquidity Sources
Existing cash balance
Remaining Houndé project costs
Funding requirements
Undrawn RCF
Ity CIL project costs
~$180m
Potential liquidity buffer (@ $1,250/oz)
• Net Free Cash flow from current mine operations 2017-2018 including Houndé start in Q4 2017 (@$1,250/oz)
• Hedging collar (between $1,200-1,400/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
PORTFOLIO & BALANCE SHEET MANAGEMENT 4
CORPORATE OVERVIEW
KEY 2016 ACHIEVEMENTS
23
RESET
STRATEGY
› 5-year strategy validated by the board
› Focused on improve the quality of our portfolio, with mines with AISC <$850/oz and mine life +10 years
› 4 key pillars: 1) Operational Excellence, 2) Project Development, 3) Unlock Exploration, 4) Portfolio & Balance Sheet Management
STREAMLINE
ORGANIZATION
› Streamlining Excom from 10 to 7
› 3 Operational Pillars in Abidjan (Ops – Projects – Explo)
› Re-group all corporate offices in London office (Monaco, Vancouver, Paris)
IMPROVE GOVERNANCE
› New CEO appointed in June 2016
› Board reorganization with 3 departures and 4 new arrivals (2 La Mancha + 2 independent)
› Additional governance improvements under consideration
MANAGE PORTFOLIO
› Dynamic portfolio management to improve quality of asset base
› Youga sold in March (end of life, high cost operation)
› Karma acquired in April (Long mine life, low-cost operation)
› Houndé construction launched and Ity DFS published
DELEVERAGE BALANCE SHEET
› US$230m additional equity injection which includes La Mancha deal (c.$65m), La Mancha anti-dilution right in True Gold deal (c.$63m) and successful equity raise (c.US$110m) and cash flow generation
› Net Debt positon reduced to US$25m
IMPROVE
INVESTOR RELATIONS
› Clarified equity story
› Increased management presence and marketing
› Improved transparency
CORPORATE OVERVIEW
UPCOMING CATALYSTS
24
Immediate Cashflow from Production
Near-Term Growth from Projects
Long-Term Upside
from Exploration
2017 OUTLOOK:
› Gold production expected to increase to 600-640koz (excluding Houndé)
› AISC expected to decrease further to $860-905/oz
› Free Cash Flow (before growth projects, WC, tax and financing cost) expected to increase to $150m, based on the 2016 realized gold price of circa $1,240/oz
› Q2-2017: Ity CIL Resource/Reserve update along with an engineering optimization study
› H1-2017: Ity ownership discussions and investment decision
› Mid-2017: Karma mill front-end optimization
› Q4-2017: Houndé first gold pour
› DELIVERY OF 5-YEAR EXPLORATION STRATEGY: Target of Finding 10-15Moz of Indicated Resources
› Mid-2017: Maiden resource at Ta akoto’s Fougala and Kreko targets
› H2-2017: Completion of Agbaou drilling program (first phase)
› H2-2017: Maiden resource at It ’s Le Plaque target and infill and extension drilling program update
› H2-2017: Completion of drilling on Kar a’s ear-mill Rambo West and Yabonsgo targets
› H2-2017: Houndé exploration results following drilling re-launch
CORPORATE OVERVIEW
TABLE OF CONTENTS
STRATEGIC OVERVIEW 1
APPENDIX 4
2017 OUTLOOK 2
DETAILS BY MINE AND PROJECT 3
Production Guidance, koz INSIGHTS:
› Production is expected to increase in 2017 as improvements at Karma and Nzema are expected to more than compensate for Agbaou returning to a normalized production level after a record-breaking year.
› As was the case in 2016, production is expected to fluctuate throughout the year due to mine plan sequences, with a peak towards the middle of the year.
› Group AISC is expected to continue to decrease due to the full year benefit of Karma, optimizations at Nzema and Tabakoto, and cost reduction programs.
AISC Guidance, $/oz
2017 GUIDANCE Production is expected to increase and AISC to decrease
on a 100% basis 2016 ACTUAL 2017 GUIDANCE
Agbaou 195,505 175,000 - 180,000
Tabakoto 162,817 150,000 - 160,000
Nzema 87,710 100,000 - 110,000
Ity 75,867 75,000 - 80,000
Karma 61,813 100,000 - 110,000
GROUP-WIDE PRODUCTION 583,712 600,000 - 640,000
In US$/oz 2016 ACTUAL 2017 GUIDANCE
Agbaou 534 660 - 700
Tabakoto 1,027 950 - 990
Nzema 1,167 895 - 940
Ity 756 740 - 780
Karma 738 750 - 800
MINE-LEVEL AISC 820 800 - 850
Corporate G&A 46 37 - 34
Sustaining exploration 18 23 - 22
GROUP AISC 884 860 - 905
26 26
2017 Guidance
Capital and Exploration Spend Guidance, $m INSIGHTS:
› Due to the expected increased production and lower AISC, the Free Cash Flow before growth projects (and before working capital movement, tax and financing costs) is projected to increase by approximately $15 million to circa $150 million, based on the 2016 realized gold price of circa $1,240/oz, and using the mid-point of 2017 production and AISC/oz guidance ranges
› Within our collar gold price boundaries of $1,200/oz to $1,400/oz, the Free Cash Flow variation to each $100/oz fluctuation is roughly $60 million. With the Gold Revenue Protection program, if the gold price were to drop below $1,200/oz in 2017, this fluctuation is reduced to roughly $40 million per $100/oz change.
2017 GUIDANCE Free cash flow expected to increase
27
Free Cash Flow Guidance, $m
in US$m $1,100/oz $1,200/oz $1,300/oz
NET REVENUE (based on production guidance mid-point) 685 725 785
Mine level AISC (based on AISC guidance mid-point) (510) (510) (510)
Corporate G&A (21) (21) (21)
Sustaining exploration (14) (14) (14)
GROUP AISC MARGIN 140 180 240
Non-sustaining mine exploration (20) (20) (20)
Non-sustaining capital (35) (35) (35)
FREE CASH FLOW BEFORE GROWTH PROJECTS (Mine cash flow less corporate costs before WC, tax and financing cost)
85 125 185
In US$m
Sustaining
Capital
Non-Sustaining
Capital
Growth
Projects
Agbaou 20 - -
Tabakoto 20 - -
Nzema 5 12 -
Ity 10 4 10
Karma 10 19 35
Houndé - - 180
Total 65 35 225
2017 Guidance
Exploration Guidance, $m
Agbaou 7
Tabakoto 9
Ity 10
Karma 4
Houndé 5
Exploration Expenditures for Mines 35
Grassroots exploration expense 5
Total Exploration Expenditures 40
TABLE OF CONTENTS
STRATEGIC OVERVIEW 1
APPENDIX 4
2017 OUTLOOK 2
DETAILS BY MINE AND PROJECT 3
AGBAOU MINE, COTE D’IVOIRE Overview
AGBAOU MINE
Côte d’I oire
QUICK FACTS (ON 100% BASIS)
Ownership % EDV, % Côte d’I oire, % 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 8.1 to 1 (2016A)
Gold Recovery Achieving 95% at present; 92.5% design
Mining Type Open Pit – Contractor Mining
Production
AISC (mine-level)
2014A– $621/oz
2015A – $576/oz
2016A – $534/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)
2017E
2015A 181koz 147koz
196koz 175-180 koz
2014A
2016
Agbaou Mine
Abidjan
Ity Mine
29
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
- Reserves are same level as when production started in 2014
Upcoming
- Return to more normalised sustainable production rate of 175-180koz with fresh ore representing up to 50% of tonnes processed
- Exploration campaign underway with initial drill results confirming mineralization
AGBAOU MINE, COTE D’IVOIRE Record 2016 performance
30
Production and AISC
2016 vs 2015 INSIGHTS
› Production benefited from higher grades and continued mill over-performance
› The secondary crusher (commissioned in mid-2016 ahead of schedule and under-budget) provides the flexibility to process higher grade transitional ore while maintaining a fairly constant ore blend and throughput over the remaining life of mine
2017 OUTLOOK
› After achieving an exceptional year, Agbaou 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
› AISC is expected to remain competitive, at $660-700/oz, as higher grade transitional ore is expected to compensate for increased unit costs and lower throughput 2017
Production
175-180koz
2016 Production
196koz
Δ Recovery Rate
Δ Grade Processed
Δ Tonnes Processed
2015 Production
181koz
$576/oz
$534/oz
$660-700/oz
AGBAOU MINE
AGBAOU MINE, COTE D’IVOIRE Exploration program is still on-going
31
INSIGHTS
› The ongoing exploration campaign, which commenced in April 2016 is expected to be completed in H2-2017
› Campaign based on previous geophysics and soil geochemistry results, is focused on:
‒ North pit and South pit extensions
‒ Agbaou South target
‒ Niafouta target
‒ Generating targets beyond the current resource boundaries
› Initial drill results suggest the extension of mineralized zones
› An update to the reserves and resources will be made following the completion of the program in H2-2017
› An exploration budget of $7 million has been planned for 2017, totaling approximately 45,000 meters of drilling
Agbaou Site Map
AGBAOU MINE
32
AGBAOU MINE, COTE D’IVOIRE Numerous gold in soil anomalies over Mag
> 50 ppb
AGBAOU MINE
33
AGBAOU MINE, COTE D’IVOIRE 5 year exploration targets
Auger & RC drilling
AGBAOU MINE
AGBAOU MINE, COTE D’IVOIRE Exploration strategy
34
› 2013-2015 : Successful Drilling limited to infill drilling and immediate trend extension to renew resources and compensate for reserves depletion. As such, no preparation of future targets was done (nearly no inferred left)
› Current drill program is focused on new targets and definition of new inferred resources to be converted in 2017/2018 into indicated resources & reserves
› Known targets on the Agbaou Exploitation license have the potential to replace the production for a few additional years
› A brownfield exploration campaign of targets located in Agbaou Exploration 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.
AGBAOU MINE
TABAKOTO MINE, MALI Overview
35
TABAKOTO MINE
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
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
2016A – $1,027/oz
2017E - $950-990/oz
Expected Mine Life 4+ years from current Reserves
Royalty 6%
Corporate Tax 30%
150-160koz 2016A 2015A
2017E
2014A
163 koz 152koz
127koz
Tabakoto Mine
Bamako
Mali
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
- In 2015, switch to owner and contractor fleet resulting in increased productivity
Upcoming
• Top exploration priority and cost reduction to be the main focus of 2017 • Ongoing cost saving and optimisation programs include overhead reduction centralizing
procurement, fleet replacement and improvement equipment availability and mining efficiency
36
TABAKOTO MINE, MALI Significant continued improvement in AISC
2016 vs 2015 Insights
› Production lifted by Increased overall grade and recovery rate
› Improved open pit extraction (+24%) mainly due to opening up and accessing the deeper benches of ore
› Increased mine efficiency (up 10%) mostly due to an improvement on the reef development and fleet availability
› Significant G&A costs per tonne reduction of 18% due to on-going cost reduction program
2017 Outlook
› Production is expected to slightly decrease in 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.
› AISC expected to decrease to $950-990/oz with cost reduction programs
Production and AISC
2017 Production
150-160koz
2016 Production
163koz
Δ Recovery Rate
Δ Grade Processed
Δ Tonnes Processed
2015 Production
152koz
$1,067/oz
$1,027/oz $950-990/oz
TABAKOTO MINE
Tabakoto Site Map 37
TABAKOTO MINE, MALI New discoveries made in 2016
Tabakoto Site Map
Kreko
Fougala
NEW DISCOVERIES MADE IN 2016 INCLUDE:
› Tabakoto North Open Pit, confirming the continuation between Tabakoto and Dar Salam, already added ~50koz in 2016 with additional drilling to start in Q1-2017 around Kofi C
› Fougala and Kreko open-pit targets, located less than 7km away from Tabakoto facilities. Will be delineated early Q1 2017 with the target of delivering new maiden resources by mid-2017
› Underground M&I resources grew by 76koz (inclusive of depletion). In addition, underground exploration programs allowed the discovery of new vein sets that will be delineated in 2017
2017 Outlook › Tabakoto is a top exploration priority in 2017 given its
relatively short mine life and significant potential
› $9 million exploration program totaling approximately 72,000 meters of drilling has been planned for 2017
› Focus on both surface exploration, with the aim of delineating resources within trucking distance at discoveries made in 2016 and on new targets, and underground drilling
Kofi North
TABAKOTO MINE
38
Côte d’I oire
TABAKOTO MINE, MALI Surface target priority ranking
75 targets identifIed, 7 Priority 1 (2017) Areas under transported cover identifIed
TABAKOTO MINE
39
Côte d’I oire
TABAKOTO MINE, MALI Kofi land package main target area
TABAKOTO MINE
40
Targeting discovery of between 1.5 to 2.5 Moz at an average cost of $15/oz over the next 5 years with a budget of ~$30M*
› Main focus is on finding new additional open pit resources within a short distance to the Tabakoto mill within within18 to 24 months to replace Kofi C and further Kofi B/A Linear/ Betea production while pursuing exploration near Kofi C/B/A
› Aggressive Tabakoto surface exploration was initiated at mid-2016 (Ongoing Kreko and Fougala trend exploration)
› Ongoing large exploration program over Kofi Blocks
› Due to its o tre d positio ith Loulo type deposits, we will be targeting a new large discovery in Kofi North, along this trend with the potential be a standalone operation since it is located more than 40 km away from Tabakoto facilities
› While proven continuation at-depth, a prudent evaluation of the underground potential as been set at 200-300koz for the next 2-3 years. Afterwards, although mineralizations continue at depth, additional exploration will be based on economic viability of the production
TABAKOTO MINE, MALI Exploration strategy
*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.
TABAKOTO MINE
ITY MINE, CÔTE D’IVOIRE Overview
QUICK FACTS (ON 100% BASIS)
Ownership % EDV, % SODEMI, % Côte d’I oire, % pri ate
Resources (HL + CIL) (incl. of Reserves)
M&I: 52.8Mt @ 1.6 g/t for 2.779Moz Inferred: 30.2Mt @ 1.5 g/t for 1.406Moz
Reserves (HL+CIL) 43.9Mt @ 1.5 g/t for 2.123Moz
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) 2016A – $756/oz
2017E - $740-780/oz
Mine life 3 years from current Reserves + addition potential
Royalty 3% - 5% sliding scale
Corporate Tax 25%
81koz 2015A
76koz
2017E 75-80koz
2016A
Agbaou Mine
Abidjan
Ity Mine
Côte d’I oire
RECENT AND UPCOMING CATALYSTS
Accomplished
- Increased heap leach capacity from 0.6mtpa to 1.0mtpa in 2013
- DFS for CIL project published on November 10, 2016 outlines potential to become core low-cost asset
Upcoming
- Continued exploration success to prolong heap leach life at current production level
- Potential to increase ownership
- Possibility of running the CIL and heap leaching operations in parallel for the first few years remains under review
41
ITY MINE
ITY HEAP LEACH MINE, CÔTE D’IVOIRE 2016 Production Remained Flat Despite Lower Grades
42
2016 VS 2015 INSIGHTS
› Production remained relatively flat as lower grade was offset by increased ore stacked thanks to new pit made available
› Continued high recovery rate
› Heap leach mine life extended by 2 years (2016 depletion fully replaced + added 78koz) while preparing the CIL Project
2017 OUTLOOK
› Production is expected to remain stable in 2017, at 75-80koz while AISC is expected to slightly decrease to $740-780/oz due to higher grades
› The possibility of running the CIL and Heap leaching operations in parallel for the first few years is currently under analysis
Δ Tonnes Stacked
2017 Production
75-80koz
Δ Recovery Rate
2016 Production
Δ Grade Stacked
2015 Production
81koz 76koz
$756/oz $740-780/oz
$619/oz
Production and AISC
ITY MINE
ITY MINE, CÔTE D’IVOIRE Exploration added 515koz in 2016 and outlined new targets
43
NEW DISCOVERIES MADE IN 2016 INCLUDE:
› Bakatouo and Colline Sud discoveries (515koz of M&I resources) with additional infill and extension drilling initiated in Q4-2016
› Several targets confirmed mineralization
› Drilling started on the Le Plaque target (100% EDV owned) in November 2016. Le Plaque will be delineated in 2017, with a maiden resource expected in H2-2017
2017 OUTLOOK
› The largest portio of E dea our’s e ploratio udget 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.
› A $10 million exploration program totaling approximately 50,000 meters has been planned for 2017
› Exploration in 2017 focused on:
‒ Infill drilling and extension drilling at the Daapleu Mont Ity, Bakatouo and Colline Sud deposits
‒ Drilling on Le Plaque and other targets
‒ Conducting initial drilling campaigns on strong Auger anomalies such as the Yacetouo and Vavoua targets
Ity Mine Drilling Targets
ITY MINE
44
$898/oz
Year 5
$554/oz
Years 10 to 14
109koz
$608/oz
133koz
Year 9
$638/oz
103koz
Year 8
124koz
Year 7 Year 6
53koz $622/oz
150koz
$582/oz
Year 4
185koz
Year 3
$608/oz
Year 2
193koz
$500/oz
134koz
$409/oz
Year 1
163koz
$477/oz
AISC/oz Production based on reserves, koz
165kozpa at AISC of US$507/oz on average over the first 5 years
Long-life Low Cost Project
› Long 14-year reserves mine life
› Low AISC of $507/oz over first 9 years
› Solid production of 144kozpa over first 9 years
Robust Project Economics (based on $1,250/oz)
› After-tax IRR of 36%
› After-tax NPV5% of $411m
› Quick payback of 2.1 years
Significant improvement expected in H1-2017 Feasibility Study update
› Inclusion of the recent high-grade Bakatouo and Colline Sud discoveries and Verse Ouest
› Additional Resource conversion at Daapleu and Mont Ity
Well-positioned with strong liquidity sources to take final investment decision in H1-2017
Agbaou Mine
Abidjan
Ity Mine
Côte d’I oire
ITY MINE, CÔTE D’IVOIRE Ity CIL Feasibility Study Published in 2016
ITY MINE
Ity CIL Project DFS highlights
ITY MINE, CÔTE D’IVOIRE Summary of independent feasibility study for CIL Project
Source: Ity CIL Feasibility Study 45
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:
Independent CIL Feasibility Study prepared by:
ITY MINE
Feasibility Study Optimization to Include:
‒ Recent high-grade Bakatouo and Colline Sud discoveries
‒ Verse Ouest following recently completed infill drilling program
‒ Additional Resource conversion at Daapleu and Mont Ity based on planned infill drilling program
Significant opportunity to delineate additional resources at known deposits
and make new discoveries
ITY CIL PROJECT, CÔTE D’IVOIRE Feasibility Study to be optimized in Q2-2017
46
Deposits to be added in the study
ITY MINE
POTENTIAL INCLUDES:
‒ The recently discovered Bakatouo and Colline Sud deposits and the results from the ongoing 11,700 meter reverse- ir ulatio RC a d diamond-drilli g DD program to test their extensions and conduct infill drilling
‒ Further resource conversion potential on both Daapleu and Mont Ity following the completion of the planned 33,000 meter in-fill drilling program
‒ Inclusion of Verse Ouest following the recent completion of the in-fill drilling program
ITY CIL PROJECT, CÔTE D’IVOIRE
47
ADDITIONAL POTENTIAL FOR RESOURCE CONVERSION
PROBABLE RESERVES INDICATED RESOURCES INFERRED RESOURCES
Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content Deposits on a 100% basis. Resources are inclusive of reserves (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 - - - 4.8 3.07 475 0.8 2.86 70
Colline Sud - - - 0.6 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 - - - - - - 8.4 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
ITY MINE
ITY CIL PROJECT, CÔTE D’IVOIRE New High Quality Near Mine Exploration Targets
48
ITY MINE
ITY CIL PROJECT, CÔTE D’IVOIRE Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu
49
ITY MINE
INSIGHTS
‒ Endeavour consolidated an 80km underexplored Birimian corridor on-trend with its Ity i e i Côte d’I oire
‒ Significantly increased its holdings in the Ity district from 178km² to 664km2.
‒ The new Floleu (104km2) and Toulepleu (382km2) exploration tenements were obtained on a 100% ownership basis
‒ The previously 55%-held Tiepleu tenement (153km2) was re-obtained on a 100% basis.
‒ An auger drilling program will be conducted on the 80km underexplored portion corridor along the Ity trend in 2017
ITY CIL PROJECT, CÔTE D’IVOIRE 80km underexplored Birimian corridor
Ity Mine Birimian corridor
50
ITY MINE
ITY CIL PROJECT, CÔTE D’IVOIRE Greater Ity Regional Gold in Soil (> 100 ppb) Anomalies
51
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
ITY MINE
ITY CIL PROJECT, CÔTE D’IVOIRE Greater Ity: 2017 – 2021 Exploration Targets Toulepleu
52
Auger drilling
RC drilling
ITY MINE
ITY CIL PROJECT, CÔTE D’IVOIRE How significant is Greater Ity area?
53
EDV Controlled Greater ITY TREND SEMAFO Controlled MANA TREND
ITY MINE
ITY MINE, CÔTE D’IVOIRE Exploration strategy
54 *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.
› Numerous high Potential targets have been identified within the Greater Ity area
› The whole controlled 80 km trend will be covered by an airborne geophysical survey for target generation in late 2016 (Mag/Spectro/VTEM ~700 Km2)
› The exploration blocks contiguous with Ity Exploitation license have the potential for multi-millions ounce deposits or group of deposits which may constitute future stand alone operations (heap leach and or CIL)
› While Endeavour controls some 700 km² of Birimian grounds with similar geology 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 over the next 5 years with a budget of ~$55M*
ITY MINE
NZEMA MINE, GHANA Overview
QUICK FACTS (ON 100% BASIS)
Ownership 90% EDV, 10% government of Ghana
Resources (incl. of Reserves)
M&I: 33.1Mt @ 1.S g/t for 1.431Moz Inferred: 5.9Mt @ 1.3 g/t for 0.243Moz
Reserves 3.3Mt @ 2.7 g/t for 0.291Moz
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
Production
AISC (mine-level)
2014A– $1,036/oz
2015A – $1,064/oz
2016A – $1,167/oz
2017E - $895 -940/oz
Expected Mine Life 4 years from current Reserves
Royalty 5% (+1% 3rd party at Adamus pits)
Corporate Tax 35%
2017E
2015A 2016A
2014A 110koz
100-110koz
115koz
88koz
Accra Nzema Mine
Ghana
RECENT AND UPCOMING CATALYSTS
Accomplished
- Increased levels of purchased ore availability is strategically being used to i pro e the i e’s e o o i s, operati g argi s a d i the preser atio of the
i e’s reser es i -situ
Upcoming
- Adamus pit cut back to be completed during Q1 2017
- Higher grades from Adamus pit to support AISC reduction
- Pre-stripping at Bokrobo deposit deposit expected to start in H2 2107
55
NZEMA MINE
NZEMA MINE, GHANA Cut-back expected to improve AISC in 2017
56
2016 INSIGHTS
› 2016 was a transitional year for Nzema as ore feed was constrained to low grade ore mined and stockpiles, supplemented by purchased ore feed
› The 19% decrease in purchased ore grade and 7% decrease in purchased ore throughput was the key driver in the 20% reduction in gold production
2017 OUTLOOK
› Following the cutback, Nzema is expected to generate healthy cash flows for the coming years
› As a result of the higher expected grades 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
› To complement production from the Adamus pit, pre-stripping at the Bokrobo deposit is expected to start in the second half of the year
Production and AISC
Δ Grade Processed
2015 Production
110koz
Δ Tonnes Processed
100-110koz
2017 Production
88koz
2016 Production
Δ Recovery Rate
$1,064/oz
$1,167/oz
$895 -
940/oz
NZEMA MINE
KARMA MINE, BURKINA FASO Overview
57
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
Gold Recovery 87%
Mining Type Shallow open pit and free digging material with no
blasting required, low strip ratio
Production
AISC (Mine-level) 2016A – $738/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
100-110koz
62koz 2016A
2017E
Houndé Project
Ouagadougou
Karma Project
RECENT AND UPCOMING CATALYSTS
Accomplished
- First gold production achieved on April 11th 2016
- Started leach pad ore stacking and irrigating in early March 2016
Upcoming
- Benefit of higher grade Rambo pit
KARMA MINE
KARMA, BURKINA FASO Continuing to Ramp-up
58
Process throughput continues to ramp-up
Producing at a run-rate of 100-110koz per annum Q4-2016 INSIGHTS
› Commercial production was declared on October 1, 2016
› Production continued to ramp up as the higher grade Rambo pit complemented ore feed from the GG2 pit and stacking capacity continued to improve
2017 OUTLOOK
› Production in 2017 is expected to increase to 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.
› AISC are expected to range between $750-800/oz
› Capacity at the processing facility is expected to further increase in the second half of the year following changes to the ROM layout, the replacement of the crushing circuit, and other plant optimization activities, which are expected to amount to $27 million.
› In addition, $8m is being spent to build a 200-Man accommodation facility
6.0
December
6.2
June
10.0
7.4
November August July
6.9
9.8
October September
9.1 Production, koz
Process optimization
December
4.0 Mtpa
Capacity expected by mid-2017
Ramp-up phase
2.5 Mtpa 3.0 Mtpa
September
1.5 Mtpa
June
KARMA MINE
KARMA, BURKINA FASO North Kao Reserve Conversion Extended Mine Life To +10 Years
59
Karma Site Map NORTH KAO INSIGHTS
› North Kao infill drilling confirmed the continuity of the previous inferred resource and improved the grade profile
‒ 314koz of resources amenable to heap leach processing converted to indicated status
‒ Indicated resource grade up 53% over the previous inferred grade to 1.22 g/t Au
› 262koz were subsequently converted to reserves, e te di g Kar a’s i e life to e o d ears
› The North Kao mineralized structure remains open to the north and the potential exists for additional sub-parallel zones
2017 EXPLORATION
› In 2017, a $4 million exploration program totaling approximately 30,000 meters has been planned to drill near-mill targets such as Rambo West and Yabonsgo
KARMA MINE
KARMA, BURKINA FASO 2017 Targets: YABONSGO Target (<10km from GG1)
60
KARMA MINE
KARMA, BURKINA FASO 2017 Targets: Rambo West
61
KARMA MINE
KARMA, BURKINA FASO Exploration strategy
62 *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.
› New geological understanding and mapping in less than 6 months
› North Kao already added 2.5 year of mine life
› Near i e higher grades targets to e drilled i Yabongso and Rambo West)
› Still ongoing evaluation and ranking of all exploration targets
› Beyond North Kao resource drilling, other exploration targets have 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 ~$15M to extend mine life to 15 years*
KARMA MINE
HOUNDÉ PROJECT, BURKINA FASO Overview
1Based on 100% equity funding and equipment lease financing ²From production start 63
QUICK FACTS (ON 100% BASIS)
Ownership 90% EDV, 10% Burkina Faso
Status Fully permitted, construction launched
Production start date First gold pour expected Q4 2017
Resources (incl. of Reserves)
M&I: 37.9Mt @ 2.1 g/t for 2.551Moz
Inferred: 3.2Mt @ 2.6 g/t for 0.274Moz
Reserves 30.6Mt @ 2.1 g/t for 2.075Moz
Mine Type Open pit
LOM Strip Ratio 8.4
Processing Rate 3.0 Mtpa Gravity / CIL plant
Gold Recovery 93%
Upfront Capital (US$M) $328m, inclusive of $47m for the owner-mining fleet
LOMP 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
Houndé Project
Ouagadougou
Karma Project
HOUNDE MINE
HOUNDÉ PROJECT, BURKINA FASO Construction Progressing On-time And On-budget
64
Procurement Was 80% Complete At Year-end SIGNIFICANT ACHIEVEMENTS TO-DATE: › Construction is progressing as planned, with over 65% completed
› Over 2.7 million man-hours have been worked without LTI.
› The 38km long, 91kv overhead power line construction over 60% complete. First power from Sonabel is scheduled for August 2017.
› 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.
› TSF progressing ahead of schedule with 60% already completed.
› 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 system 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 on-site, more than 94% of which are Burkinabe.
› Full back-up 26Mw power gensets has been awarded. This is on schedule to be operational in Q3-2017.
› The land compensation process has been successfully completed and resettlement commenced in early 2017.
302
$210m
Total Capex (incl. $26m contigency)
$328m
$100m
Committed Capex (end of dec)
Incurred Capex (end of Dec.)
26 contingency
HOUNDE MINE
CIL Tanks Primary Crusher
SAG Mill First Lift Poured Village Resettlement
65
HOUNDÉ PROJECT, BURKINA FASO Construction Progressing On-time And On-budget
HOUNDE MINE
66
HOUNDÉ PROJECT, BURKINA FASO Exploration Re-launched in 2017
Exploration Targets in Proximity to the Planned Mill 2017 OUTLOOK
› The Houndé exploration tenement covers + , k ² ithi Burki a Faso’s highl prospective Birimian belt
› Historically, exploration focus mainly on the Vindaloo trends
› At least 15 other significant targets 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
› Following a two year period of no exploration drilling, activities will resume in 2017 with a $5 million program totaling approximately 45,000 meters
HOUNDE MINE
67
HOUNDÉ PROJECT, BURKINA FASO 2017-2021 Main Promising Targets
HOUNDE MINE
68 *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. 68
› Our Houndé exploration portfolio is located within one of the most prospective areas of the Birimian greenstone belt of Burkina Faso
› Historical exploration already proved the occurrence of multiple major mineralized trends of Vindaloo type within these licences
› At least 15 significant targets were partially tested by previous drilling, and the majority of them remain undeveloped
› All defined exploration targets are located within a 20 km radius of the Houndé mill
› The high grade targets (Bouere, 5 to 6g/t and Kari Pump) will be developed as a priority in 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*
HOUNDÉ PROJECT, BURKINA FASO Exploration strategy
HOUNDE MINE
TABLE OF CONTENTS
STRATEGIC OVERVIEW 1
APPENDIX 4
2017 OUTLOOK 2
DETAILS BY MINE AND PROJECT 3
APPENDIX
BOARD MEMBERS
Michael BECKETT Chairman, Non-executive Director
Ian COCKERILL, Non-executive Director
Olivier COLOM, Non-executive Director
Ian HENDERSON, Non-executive Director
Livia MAHLER, Non-executive Director
Wayne MCMANUS, Non-executive Director
Sébastien de MONTESSUS, CEO & President
Naguib SAWIRIS, Non-executive Director
70 70
ENDEAVOUR IS BACKED BY LA MANCHA
71
APPENDIX
30% holding
31% holding
Sawiris fa il ’s i i g investment vehicle
La Mancha vended-i the Frog’s Leg a d White Foil mines
La Mancha then contributed $112m for acquisition of the Cowal mine
Evolution has grown from a ~A$670m market cap to ~A$3.2B, since announcement of strategic partnership
Partnership Announced
La Mancha vended-in the Ity mine and $63m of cash
La Mancha then contributed $65m following the acquisition of Truegold
Participated in bought deal with C$20m Endeavour has grown from a US$250m to a
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
Partnership Announced
0
5
10
15
20
25
30
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-160.0
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-16
INSIGHTS
1. Increased sales with:
‒ Start of Karma contribution as of October 1 (commercial production start)
‒ Full year of Ity
‒ Production improvements at Agbaou and Tabakoto
2. Increase in non-sustaining exploration, in line with company strategy
3. Free cash flow up 55%:
‒ Stronger production at lower AISC and higher gold price
‒ Less non-sustaining capital required as main capital spend is already complete
4. Adjustment for discontinued Youga operation
FREE CASHFLOW CONTINUED TO INCREASE Free cashflow up $58/oz compared to 2015
All amounts, other than FCF for 2015 Exclude Youga. Karma pre-commercial production revenue and associated costs were netted on the balance sheet as part of mineral property interest. 72
APPENDIX
12 MONTHS ENDED DECEMBER,
2016 2015
$m $/oz $m $/oz
GOLD SOLD FROM CONTINUIN OPERATIONS, KOZ 546 452
REVENUE 673 1,234 522 1,157
Total cash costs (371) (681) (316) (699)
Royalties (32) (58) (26) (57)
Corporate costs (25) (46) (22) (49)
Sustaining capex (44) (81) (48) (107)
Sustaining exploration (10) (18) (7) (15)
AISC COSTS (482) (884) (419) (927)
AISC MARGIN 191 351 103 229
Less: Non-sustaining capital (26) (47) (24) (53)
Less: Non-sustaining exploration (23) (43) (7) (16)
Operating cash flow from Youga discontinued operation - - 20 43
FREE CASH FLOW BEFORE GROWTH PROJECTS (and before working capital, tax & financing costs)
142 261 92 203
1
2
3
4
12 MONTHS ENDED DEC.
US$m 2016 2015
FREE CASH FLOW BEFORE GROWTH PROJECTS (and WC, tax & financing costs)
142 92
Working capital changes (27) 6
Taxes paid (11) (7)
Interest paid (20) (25)
Cash settlements on hedge programs and gold collar premiums (14) (3)
NET FREE CASH FLOW FROM OPERATIONS 70 62
Growth Project1 (110) (7)
Change in growth project working capital (6) -
Cash received for Youga mineral property interests (net) 22 -
Cash received for Ity mineral property interests (net) - 86
True Gold (Bridge loan, cash acquired, less change of control payments) (11) -
Restructuring and acquisition costs (24) -
Other (1) (30)
Net equity proceeds 185 -
NET CASH/(NET DEBT) VARIATION 125 110
Reduction of debt obligations (110) (63)
CASH INFLOW (OUTFLOW) FOR THE PERIOD 15 47
INSIGHTS
1. Mainly due to inventory, gold-in-circuit and VAT build-up at Karma related to its commissioning phase
2. Includes: $10m hedge settlements, $5m gold collar premiums
3. Associated with $102m capex spend for Houndé build with bulk of remaining for Ity CIL Project Study
4. Mainly Houndé payables
5. Includes $6m of acquisition cost and $18m of restructuring related to ex-CEO, BOD and executive level restructuring costs and office consolidation
6. Includes dividends to minority interests for ($3m), settlement of share appreciation rights, DSUs and PSUs ($6m)
NET FREE CASH FLOW Remains positive despite Houndé Capex
1 Includes Houndé, Ity CIL, and studies 73
APPENDIX
3
4
5
6
1
2
ADJUSTED NET EARNINGS Up 142% compared to 2015
74
APPENDIX
INSIGHTS
1. Youga results are removed due to disposal of the mine
2. Both 2015 and 2016 amounts relate to realized and unrealized gains/losses on FCFA denominated currency fluctuations (loss in 2016 due to Euro devaluation against the US$)
3. Increased due to mark-to-market of EDV share price
4. Non-recurring costs, associated with True Gold transaction, closure of Vancouver and Accra offices, and severance packages
5. Add-back of non-cash deferred tax expense. The $45m loss included in Net Income is mainly comprised of:
‒ The de-recognition of historical carry-forward losses at Nzema
‒ Tabakoto new tax structure decided between Segala and Kofi subsidiaries with the Governement ;
‒ Accelerated SYSCOA depreciation at Karma utilized in 2016 resulting in a reduced Karma SYSCOA tax base
6. Nzema impairment due to removal of sulfide resources from valuation model (no corporate plan to invest in mill expansion)
7. Shares outstanding increased due to True Gold acquisition and bought deal
12 MONTHS ENDED DEC.
(US$m) 2016 2015
TOTAL NET EARNINGS (52) 36
Youga discontinued operations 3 (5)
Loss (gain) on financial instruments 12 (13)
Other expenses (income) 2 0.2
Stock-based expense 9 4
Acquisition and restructuring costs 24 13
Deferred income tax expense (recovery) 45 3
Nzema impairment charge of mineral interest 71 -
ADJUSTED NET EARNINGS AFTER TAX 114 38
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 21 18
ATTRIBUTABLE TO SHAREHOLDERS OF THE CORPORATION 93 20
Weighted average number of outstanding shares (million) 81 43
ADJUSTED NET EARNINGS PER SHARE (BASIC) FROM CONTINUING OPERATIONS
$1.15 $0.47
1
2
3
4
7
5
6
EXPLORATION BECAME A CORE FOCUS IN 2016
75
APPENDIX
HIGHLY 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
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
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
CEO
COO EVP
Projects EVP
Exploration & Growth
CI Government Relations Advisor
Legal Advisor
With new structure in place
SCREENING AND RANKING METHODOLOGY
76
APPENDIX
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
CONSERVATIVE APPROACH
› Visit to all sites with Exploration Managers/Chef-Senior Geologists, EDV experts
› 6 months detailed review of all past exploration, synthesis of all available and validated data in database
‒ All Geochem (Stream and Soil), all geophysics (air and ground)
‒ All Geological and Structural data (Outcrops, cores, Maps, regolith, structures, artisanal mining)
‒ All Drilling (Auger, RC, DD, Geotech) , logs and analytic results
› 130+ Targets screened through multi-criteria analysis of all data to identify and support exploration targets for evaluation
› 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)
‒ Geological framework, mineralization type, mineability, exploration game changer
› All targets characterized by a minimum-maximum and mean size of tentative deposit (length, width, depth), including estimated average grade when calibration is available
METHODIC AND EXHAUSTIVE REVIEW TO QUANTIFY AND RANK POTENTIAL
APPENDIX
Selection of the 30% (40) most significant targets over the full portfolio in term of localization, mean size, and nearby upside (possible clusters), all gathered per relevant PE (Exploration Permit) or PEX (Exploitation permit)
77 77
› Each selected target (~40) was 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 were set within a 5 year window, according to mine priorities, permit duration, requested exploration efforts, and budget
› All selected targets 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
FURTHER SELECTION, RANKING AND RISK EVALUATION
78
APPENDIX
(on a 100% basis)
AGBAOU NZEMA TABAKOTO ITY3 KARMA
Unit FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY-2016
Physicals
Total tonnes mined – OP1 000t 25,382 20,447 9,295 8,144 7,098 9,298 6,102 375 8,753
Total ore tonnes – OP 000t 2,797 2,818 1,000 1,310 649 511 1,186 64 650
Open pit strip ratio1 W:t ore 8.07 6.26 9.94 17.20 9.94 17.20 4.15 4.86 3.66
Total tonnes mined – UG 000t - - - - 1,301 1,360 - - -
Total ore tonnes - UG 000t - - - - 944 860 - - -
Total tonnes milled 000t 2,827 2,665 1,761 1,783 1,588 1,588 1,173 71 2,089
Average gold grade milled g/t 2.27 2.15 1.87 2.21 3.36 3.17 2.20 2.39 1.16
Recovery rate % 97% 97% 83% 87% 95% 93% 93% 81% 90%
Gold ounces produced oz 195,505 181,365 87,710 110,302 162,817 151,067 75,867 5,689 61,813
Gold sold oz 196,316 182,219 85,495 110,404 161,803 151,345 73,332 7,917 28,743
Unit Cost Analysis
Mining costs - Open pit $/t mined 2.22 2.64 4.64 4.78 3.60 2.79 2.88 2.38 1.32
Mining costs – Underground $/t mined - - - - 51.04 50.24 - -
-
Processing and maintenance $/t milled 6.60 6.40 13.16 14.26 21.93 22.89 14.71 23.28 7.76
Site G&A $/t milled 4.66 5.56 6.57 6.81 12.80 15.66 11.43 16.97 9.66
Cash Cost Details
Mining costs - Open pit1 $000s 56,420 54,060 43,109 38,947 25,586 25,960 17,583 892 5,306
Mining costs -Underground $000s - - - - 66,406 68,328 - - -
Processing and maintenance $000s 18,656 17,069 23,177 25,423 34,825 36,347 17,256 1,653 6,616
Site G&A $000s 13,175 14,806 11,577 12,151 20,325 28,659 13,413 1,205 8,241
Purchased ore at Nzema $000s - - 21,255 29,447 - - - - -
Inventory adjustments and other2 $000s 1,702 3,375 7,885 1,059 3,357 4,961 (53) 605 (906)
Cash costs for ounces sold $000s 84,477 84,172 90,801 99,374 132,906 128,041 44,450 4,355 18,898
Royalties $000s 8,871 7,574 5,662 7,234 11,997 10,438 3,316 536 1,952
Sustaining capital $000s 11,407 13,191 3,318 10,839 21,193 23,048 7,648 519 359
Cash cost per ounce sold $/oz 430 462 1,062 900 821 846 606 550 657
Mine-level AISC Per Ounce Sold $/oz 534 576 1,167 1,064 1,027 1,067 756 683 738
PRODUCTION AND COST DETAILS BY MINE For the years ended 2016 and 2015
) I ludes aste apitalized ) I ludes aste apitalized adjust e t ) It s p odu tio a d AISC is e luded fo the p e-November 28, 2015 acquisition period. 79
APPENDIX
RESERVES AND RESOURCES
Full details a d otes of ese es a d esou es a e fou d u de the Rese es a d Resou es se tio o the Co pa s e site at www.endeavourmining.com 80
On a 100% basis On an attributable basis Resources shown inclusive of Reserves
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 10 2.57 834 9 2.56 720
Probable Reserves 123 1.58 6,240 94 1.58 4,812
P&P Reserves 133 1.66 7,074 103 1.67 5,532
Measured Resource (incl Reserves) 34 1.80 1,967 30 1.77 1,704
Indicated Resources (incl Reserves) 206 1.60 10,623 166 1.59 8,463
M&I Resources (including Reserves) 240 1.63 12,590 196 1.62 10,167
Inferred Resources 68 1.69 3,682 50 1.71 2,736
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 2.90 6 Probable Reserves 43.8 1.50 2,117 P&P Reserves 43.9 1.50 2,123 Measured Resource (incl reserves) 0.0 1.84 2 Indicated Resources (incl reserves) 52.8 1.64 2,777 M&I Resources (including Reserves) 52.8 1.64 2,779 Inferred Resources 30.2 1.45 1,406
Ity Mine & CIL Project
Resources shown inclusive of Reserves. On a 100% basis
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 2.1 2.73 181 Probable Reserves 1.3 2.70 110 P&P Reserves 3.3 2.72 291 Measured Resource (incl reserves) 21.1 1.37 929 Indicated Resources (incl reserves) 12.0 1.31 502.0 M&I Resources (including Reserves) 33.1 1.35 1,431 Inferred Resources 5.9 1.29 243
Nzema Mine
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/oz
Notes :
APPENDIX