corporate presentation - mining intelligence and news · 2017-07-22 · corporate presentation cash...
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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 presentation contains “forward-looking statements” including but not limited to, statements with respect to Endeavour’s plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “forecasts” and “anticipates”. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour’s most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.
Adriaan “Attie” Roux, Pr.Sci.Nat, Endeavour’s Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information in this presentation.
TABLE OF CONTENTS
CORPORATE OVERVIEW1
APPENDIX4
2017 OUTLOOK & Q1 RESULTS2
DETAILS BY MINE AND PROJECT3
4
ENDEAVOUR MINING OVERVIEWA Premier African Gold Producer With 5 Mines and 2 Projects
CORPORATE OVERVIEW
COMPANY PROFILE
5
Share Price Performance
Rank Institution Name % of S/O
1 LA MANCHA HOLDING S.A.R.L. 30%
2 Van Eck Associates Corporation 13.4%
3 M & G Investment Management Ltd. 3.6%
4 Oppenheimer Funds, Inc. 3.1%
5 Fiera Capital Corporation 3.0%
6 RBC Global Asset Management Inc. 2.9%
7 BlackRock Investment Management (UK) Ltd 2.6%
8 Sun Valley Gold, LLC 2.4%
9 Ruffer LLP 1.8%
10 Maple Leaf Partners, L.L.C. 1.7%
Top Shareholders
*As of June 15, 2017
Ticker TSX:EDV
Shares in Issue as of May 31st 96.5 m
Fully Diluted as of May 31st 97.0 m
Share price* C$21.56
Market cap* US$1,570m
Net Debt as of March 31, 2017 – post LMA placement US$14m
Shareholder Distribution
MANAGEMENT
1%
LA MANCHA
30%
RETAIL
7%
INSTITUTIONAL
62%
Other
Europe
NorthAmerica
In CAD
CORPORATE OVERVIEW
0
5
10
15
20
25
30
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
Volume EDV share price
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
ImmediateCashflow
fromPRODUCTION
Near-TermGrowth
fromPROJECTS
Long-TermUpside
fromEXPLORATION
CORPORATE OVERVIEW
20162011 20172012 20142010 201920152013 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 ≤$800/OZ AISC
+900koz
83koz
167koz220koz
317koz
462koz
517koz
584koz
600-640koz
Ity (CIL), Côte d’Ivoire
Karma, Burkina Faso
Youga, Burkina Faso
Nzema, Ghana
Group AISC
Ity (Heap Leach), Côte d’Ivoire
Houndé, Burkina FasoAgbaou, Côte d’Ivoire
Tabakoto, Mali
+900kozAnnual production
10+ yearMine life
≤800$/ozAll-in Sustaining Cost
STRATEGIC MILESTONESFOR 2019
$860-905
<$800
CORPORATE OVERVIEW
STRATEGIC LEVERS
8
BUILDING A PREMIER AFRICAN GOLD PRODUCER
+900kozAnnual production
10+ yearMine life
≤800$/ozAll-in Sustaining 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” RouxCOO
Vincent BenoitEVP CFO & Corporate Development
Patrick BouissetEVP Exploration & Growth
Jeremy LangfordEVP Construction Services
Morgan Carroll EVP Corporate Finance & General Counsel
Henri de JouxEVP 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 FirstLean and Efficient
Operations
Hands-On
Management
Cash flow driven
CORPORATE OVERVIEW
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 10
CORPORATE OVERVIEW
Lost Time Injury Frequency Rate
0.000.00
0.25
0.40
0.79
Peer Group Average
Q1-2017 AgbaouHoundé (since start)
FY2016
4.0m Man Hours in Q1-17
with only 1 LTI
4.0mMan Hours on
Houndé with no LTI
Construction track recordOperating track record
Safety is our first priority
OPERATIONAL EXCELLENCE1
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 EXCELLENCE1
9221,010
1,137
884
2017 Guidance
860-905
2013 2014 2015 2016
324466 517
584
20162014 20152013 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)
0.40
2014
1.73
0.73
2013 2015 2016
0.76
$28m
2013 2014
$85m
2016
$135m
2015
$35m
2017 Guidance
$150m
GuidanceGuidance
$1,392/oz $1,264/oz $1,157/oz $1,240/oz $1,240/oz
CORPORATE OVERVIEW
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
12
PROJECT DEVELOPMENT2
Life of Mine Plan
Construction progress
› Progressing on-time with 85% completed
› On-budget with procurement complete and only ~35% of the capital remains to be spent
› Construction started in April 2016 with first gold pour expected in Q4-2017
Project Highlights
› 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 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/ozProduction based on reserves, koz
Houndé is positioned to be Endeavour’s flagship low cost mine
Exploration upside expected to fill this shortfall
CORPORATE OVERVIEW
Natougou(Semafo)
13
PROJECT DEVELOPMENT2
$898/oz
Year 5
$554/oz
Years
10 to 14
109koz
$608/oz
133koz
Year 9
$638/oz
103koz
Year 8
124koz
Year 7Year 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/ozProduction based on reserves, koz
165kozpa at AISC of US$507/ozon average over the first 5 years
Long-life Low Cost Project
• Long 14-year reserves mine life
• Low AISC of $542/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 CollineSud 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’Ivoire
CORPORATE OVERVIEW
14
UNLOCK EXPLORATION VALUEAmongst Largest and Most Promising Portfolios in West Africa
3
CORPORATE OVERVIEW
Screening And Ranking Methodology
Full Details Provided in Appendix 15
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 targetHigh/Medium/Low
Exploration budget required per target to
reach Indicated resource level status
Strategic Prioritization
CONSERVATIVE APPROACH
SIMILAR TO THAT USED IN OIL & GAS INDUSTRY
3
CORPORATE OVERVIEW
UNLOCK EXPLORATION VALUE
16
UNLOCK EXPLORATION VALUEExploration Strategic Review Output: Low Discovery Costs
4.0-6.0Moz
Houndé TabakotoGreater Ity Agbaou Karma Côte d’Ivoire Regional
3
4.0-6.0Moz
2.5-3.5Moz
1.5-2.5Moz
0.5-1.5Moz 0.5-1.5Moz0.5-1.0Moz
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 geochemanomolies
› 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 tenementsin 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 1.5-3.0g/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.
CORPORATE OVERVIEW
UNLOCK EXPLORATION VALUE
17
$35-40mAnnual budget
<$15/ozAnticipated 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
KarmaAgbaouGreater Ity Houndé Tabakoto
Exploration budget Average discovery cost
3
CORPORATE OVERVIEW
18
UNLOCK EXPLORATION VALUEExploration 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 RegionalHounde Ity
3
PRIORITIES: i. Tabakoto due to its short mine life ii. Agbaou to extend oxide mine lifeiii. Ity to extend HL and Improve CIL caseiv. Houndé (once in production) to maintain 250kozpa level after 4th year
PRIORITIES: i. Ity Greater Area ii. Houndé to prolong mine lifeiii. 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’Ivoire Burkina Faso Ghana Mali
Possibility to run HLin parallel
Youga
Houndé+250koz starting Q4-2017
Cut-back
PORTFOLIO & BALANCE SHEET MANAGEMENT4
CORPORATE OVERVIEW
20
All-in Sustaining Margin Now More Diversified
PORTFOLIO & BALANCE SHEET MANAGEMENT
0%
Youga
63%Agbaou
1%
Nzema
10%Tabakoto
26%
Ity
13%
Agbaou39%
Nzema
20%
Tabakoto
10%Ity
17%
Karma
All-In Sustaining Margin From Mines- Breakdown by OperationExcludes Exploration and Corporate Costs
$43mQ1-2016
$57mQ1-2017
CORPORATE OVERVIEW
4
PORTFOLIO & BALANCE SHEET MANAGEMENT4Healthy Net Debt of $14m despite Hounde spend being 65% complete
CORPORATE OVERVIEW
INSIGHTS
› Net debt position increased since year-end due to the
growth projects ($69m spent in Q1-2017)
› In April, $48 million private placement closed withLa Mancha following exercise of anti-dilution right
› Strong liquidity and financing sources to fund remaining Houndé capex spend of approx. $120m
› Further headroom potential to fund exploration and Ity CIL with free cash flow
Net debt = Cash less drawn RCF, leases & drawn equipment financingRCF 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
$14m
$62m
$26m$14m
$83m
$144m
0.06x
0.27x
0.11x0.08x0.22x
0.89x1.02x
31-Mar-1631-Dec-15 30-Jun-16
$136m
31-Mar-1731-Dec-1630-Sep-16 31-Mar-17 PF Post
placement
Net Debt / trailing 12-month Operating EBITDA ratioNet debt
21
Liquidity and Financing Sources at March 31, 2017 Net Debt Evolution
$345m
$87mCash Position
$210mUndrawn RCF
$48mAs of Mar 31st, 2017
La Mancha placement (April)
Well positioned to fund growth
Strong Liquidity Sources and Cash Flow generation to fund internal growth
As at March 31, 2017
22
Objective to keep leverage in a maximum range of 0.5x-1.0x
$87m
$210m
~$420m
Ity Equipment Financing (expected)
~$300m
Liquidity Sources
Existing cash balance
Remaining Houndé project costs
Funding requirements
Undrawn RCF
Ity CIL project costs
~$120m
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 manoeuvrebetween debt and
own cashflow
PORTFOLIO & BALANCE SHEET MANAGEMENT4
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
DELEVERAGEBALANCE 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 Cashflowfrom Production
Near-TermGrowth 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 Tabakoto’s Fougala and Kreko targets
› H2-2017: Completion of Agbaou drilling program (first phase)
› H2-2017: Maiden resource at Ity’s Le Plaque target and infill and extension drilling program update
› H2-2017: Completion of drilling on Karma’s near-mill Rambo West and Yabonsgo targets
› H2-2017: Houndé exploration results following drilling re-launch
CORPORATE OVERVIEW
TABLE OF CONTENTS
STRATEGIC OVERVIEW1
APPENDIX4
2017 OUTLOOK & Q1 RESULTS2
DETAILS BY MINE AND PROJECT3
Production Guidance, kozINSIGHTS:
› 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, $/oz
2017 GUIDANCEProduction is expected to increase and AISC to decrease
on a 100% basis 2016 ACTUAL 2017 GUIDANCE
Agbaou 195,505 175,000 - 180,000
Tabakoto 162,817 150,000 - 160,000
Nzema 87,710 100,000 - 110,000
Ity 75,867 75,000 - 80,000
Karma 61,813 100,000 - 110,000
GROUP-WIDE PRODUCTION 583,712 600,000 - 640,000
In US$/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
2626
2017 OUTLOOK
Capital and Exploration Spend Guidance, $mINSIGHTS:
› 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 GUIDANCEFree 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
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
2017 OUTLOOK
INSIGHTS BY MINE
Production and AISC from continuing operations
ALL MINES ON TRACK TO MEET GUIDANCE
Youga production and AISC have been removed from continuing operations 28
Back to normalized production after record Q4-16 performance
$855/oz$898/oz$901/oz $905/oz$889/oz
Q4-16
175koz
Q3-16
146koz
Q1-17
159koz
Q1-16 Q2-16
138koz123koz
ITY TABAKOTOAGBAOU
Q1-2017
17koz 16koz
Q4-2016
$879/oz$827/oz
OUTLOOK
24koz
$1,118/oz
Q1-2017
26koz
OUTLOOK
$951/oz
Q4-2016
NZEMA
Q4-2016
43koz
$975/oz
Q1-2017
$927/oz
OUTLOOK
48koz
OUTLOOK
32koz
Q1-2017Q4-2016
$738/oz $748/oz
29koz
KARMA
42koz$532/oz
$660/oz57koz
Q1-2017 OUTLOOKQ4-2016
Production, koz AISC, $/oz
Records at Agbaouand Tabakoto
Q1 RESULTS
ALL-IN SUSTAINING MARGIN VARIATION
29
Driven by improvements at Tabakoto, Nzema, and the addition to portfolio management with Karma
IMPROVED MARGINS DESPITE INCREASED EXPLORATION
Agbaou Q1-2017
(4.8)
Tabakoto Q1-2017(pre-explo)
+6.7
Ity
+7.1(0.2)
Q1-2016
(3.2) $46.3m
Youga (sold)
$36.7m
+35%
Corporate Exploration
(4.9)
+9.8
(0.9)
Nzema Karma
$49.5mQ1/16 vs Q1/27 Bridge, in $m
$1,190/oz $1,192/oz
PRODUCTION VARIATIONQ1-16 vs Q1-17 Bridge
Agbaou
+6koz
Q1-2017Q1-2016
159koz
+4koz(1koz)
(8koz)
Tabakoto
(6koz)
Youga(sold)
Nzema Karma
+32koz132koz
Ity
Fresh ore cost impact
Higher AISC, expected to
decrease
AISC: +26% AISC: -18% AISC: -9% AISC: +24%
Q1 RESULTS
QUARTER ENDED,(in US$ million) MAR. 31, 2017 MAR. 31, 2016
GOLD SOLD, koz 162 121
Gold Price, $/oz 1,190 1,192
REVENUE 193 144
Total cash costs (114) (83)
Royalties (10) (7)
Corporate costs (6) (5)
Sustaining capex (12) (11)
Sustaining exploration (5) (2)
ALL-IN SUSTAINING COSTS (“AISC”) (147) (107)
ALL-IN SUSTAINING MARGIN 46 37
Less: Non-sustaining capital (7) (4)
Less: Non-sustaining exploration (7) (1)
FREE CASH FLOW BEFORE GROWTH PROJECTS
(and before working capital, tax & financing costs)32 32
Working capital infow (outflow) 5 (20)
Taxes paid (1) (3)
Interest paid (0) (0)
Cash settlements on hedge programs and gold collar premiums (2) (3)
NET FREE CASH FLOW FROM OPERATIONS 34 5
Growth projects (69) (3)
Non-mine greenfield exploration expense (2) (1)
Other (foreign exchange gains/losses and other) (2) (2)
Cash received for Youga mineral property interests (net) - 22
Operating cash flow from Youga discontinued operation - 1
Bridge loan advanced to True Gold - (15)
Restructuring costs (2) -
Net equity proceeds 5 1
Settlement of debt obligations (1) (1)
CASH INFLOW (OUTFLOW) FOR THE PERIOD (37) 7
30
INCREASED FREE CASH FLOW FROM OPERATIONS
INSIGHTS
1. Gold sales up 34% mainly due to theacquisition of Karma, the deconsolidationof Youga and improvements at Tabakotoand Nzema
2. Inclusive of 5,000 ounces delivered underthe Karma stream. Excluding stream,price would have been $1,220/oz
3. Sustaining capex remained fairly flat
4. Strong increase due to strategic focus onexploration
5. Significantly reduced compared to largenegative swing last year
6. Growth projects includes $58m forHounde, $8m for Karma optimization and$2m for Ity CIL Project
4
5
6
1
2
3
Q1 RESULTS
31
NET EARNINGS BREAKDOWN
$17m
$2m
$36m
$6m
$3m
$46m
$14m
Adjusted Net
Earnings
Deduct:Taxes
Deduct: Finance
Costs
Deduct: Non-cash Expenses
$2m
Deduct:Depreciation
Deduct:Exploration
Expense
Add-back:Sustaining
Capital
All-In Sustaining
Margin
All-In Sustaining Margin to Adjusted Net Earnings BridgeFor the 3-month period ended March 31, 2017
QUARTER ENDED
(in US$ million)March 31,
2017March 31,
2016
Gold Revenue 193.1 144.0
Operating expenses (120.1) (84.0)
Depreciation and depletion (36.1) (26.2)
Royalties (9.9) (6.6)
Earnings from mine operations 27.1 27.2
Corporate costs (5.9) (4.8)
Transaction and restructuring costs (1.5) (1.2)
Share based expenses (7.6) (2.6)
Exploration (2.2) (0.9)
Earnings from operations 9.8 17.6
(Losses)/gains on financial instruments (9.1) (2.9)
Finance costs (5.9) (6.8)
Other income (expenses) 3.5 0.1
Earnings (loss) from continuing operations before taxes (1.7) 8.0
Current income tax expense (2.6) (2.3)
Deferred taxes recovery 2.1 5.5
Net (loss)/earnings from discontinued operations - (3.3)
Total net and comprehensive earnings (loss) (2.2) 7.9
A
A = Adjustments made
A
A
A
A
A
Q1 RESULTS
TABLE OF CONTENTS
STRATEGIC OVERVIEW1
APPENDIX4
2017 OUTLOOK & Q1 RESULTS2
DETAILS BY MINE AND PROJECT3
AGBAOU MINE, CÔTE D’IVOIRE Overview
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 1.004MozInferred: 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 181koz147koz
196koz175-180 koz
2014A
2016
AgbaouMine
Abidjan
Ity Mine
33
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, CÔTE D’IVOIREAgbaou production decreased to be in line with guidance
34
AGBAOU MINE
Insight: Q1 decreased due to temporary lower grades
Production and AISCQ1-17 vs. Q4-16 INSIGHTS: › Coming off a record Q4, lower production in
Q1 (as expected) due to temporary mining in lower grade area
› Throughput remained high (2.7Mt annualized rate), despite achieving 30% hard ore blend, thanks to the installation of the secondary crusher in 2016
› AISC increased due to lower grades and higher mining and processing costs related to hard ore mining
OUTLOOK › Increased grade and production expected
over the coming quarters, while AISC are expected to remain within the guided $660-700/oz range
› Continuing to progress toward 50/50 hard ore blend in Q3-2017
› After achieving an exceptional 2016, Agbaou is expected to return to a more normalised and sustainable annual production rate of 175,000-180,000 ounces in 2017, with fresh ore representing up to 50% of tonnes processed
683kt709kt743kt654kt
Q4-2016 Q1-2017
721kt
Q3-2016Q2-2016Q1-2016
Grade milled, g/t AuTonnes milled, kt
42koz
Q2-2016 Q4-2016
57koz49koz
43koz
Q3-2016 Q1-2017
46koz
Q1-2016
Production, koz AISC, US$/oz
$525/oz$525/oz$550/oz
2.05 g/t 2.15 g/t2.21 g/t
2.46 g/t
$532/oz
660/oz
2.09 g/t
0% 0% 15% 8% 30%Fresh:
AGBAOU MINE, CÔTE D’IVOIREExploration program is still on-going
35
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
AGBAOU MINE, CÔTE D’IVOIREExploration strategy
38
› 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, MALIOverview
39
TABAKOTO MINE
QUICK FACTS (ON 100% BASIS)
Ownership80-90% 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%
150-160koz2016A2015A
2017E
2014A
163 koz152koz
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
40
TABAKOTO MINE, MALIContinued good performance in Q1-2017
TABAKOTO MINE
Tonnes and Grade
Production and AISCQ1-17 vs. Q4-16 INSIGHTS:
› Production and AISC trending in line with expectations with AISC maintained within $950-990/ozguidance
› Production decreased and AISC increased due to lower grade open pit ore at Kofi C
› Mining began at Kofi B (less rich than Kofi C)
› Underground mining efficiency remained at a good level, however lower grade mined at Segala due to mine sequence
OUTLOOK
› Cost reduction programs underway
› Production expected to be lower in second half of the year with end of Kofi C mining
› 2017 expected production of 150,000 -160,000 ounces at AISC of $950-990/oz
39koz
Q4-2016Q1-2016
37koz39koz
Q1-2017
48koz
Q3-2016Q2-2016
43koz
Production, koz AISC, US$/oz
405kt402kt381kt399kt406kt
Q1-2017Q4-2016Q3-2016Q2-2016Q1-2016
Tonnes Processed, kt Processed grades, g/t Au
3.10 g/t3.31 g/t 3.11 g/t
3.93 g/t
$1,119/oz$1,071/oz $1,061/oz $1,071/oz
$975/oz$927/oz
3.50 g/t
Tabakoto Site Map 41
TABAKOTO MINE, MALINew 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
42
Côte d’Ivoire
TABAKOTO MINE, MALISurface target priority ranking
75 targets identifIed, 7 Priority 1 (2017)
Areas under transported cover identifIed
TABAKOTO MINE
44
Targeting discovery of between 1.5 to 2.5 Moz at an average cost of $15/ozover 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 “on trend” position with 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, MALIExploration 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 80% EDV, 15% Côte d’Ivoire, 5% private
Resources (HL + CIL)(incl. of Reserves)
M&I: 52.8Mt @ 1.6 g/t for 2.779MozInferred: 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%
81koz2015A
76koz
2017E 75-80koz
2016A
AgbaouMine
Abidjan
Ity Mine
Côte d’Ivoire
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
- Increased stake in the Ity mine from 55% to 80%.
Upcoming
- Continued exploration success to prolong heap leach life at current production level
- Possibility of running the CIL and heap leaching operations in parallel for the first few years remains under review
45
ITY MINE
ITY HEAP LEACH MINE, CÔTE D’IVOIREProduction remained fairly stable, uplift expected in upcoming quarters
46
ITY MINE
Q1-17 vs. Q4-16 INSIGHTS:
› Production remained relatively flat over the previous quarter despite a drop in grade and down-time related to work stoppages, and by a longer leach cycle of stacked ore
› Mining activities improved, due to improved equipment availability, resulting in 23% more tonnes mined than stacked during the quarter
OUTLOOK
› Production and cost profile is expected to improve due to: - Grade profile is expected to increase by
starting to mine Bakatouo in Q2-2017
- Increased stacking and benefit of the lagbetween tonnes mined and tonnes stacked
› FY-2017 guidance remains unchanged with 75-80koz production expected at an AISC of $740-780/oz
$879/oz
Q1-2017
21koz
Q4-2016
15koz
Q3-2016
17koz
Q2-2016Q1-2016
16koz
22koz
AISC, US$/ozProduction, koz
267kt295kt
271kt304kt303kt
1.90g/t
Q1-2017Q4-2016Q3-2016Q2-2016Q1-2016
Tonnes stacked, kt Grade milled, g/t Au
Production and AISC
Ity mine extraction
$710/oz $775/oz $724/oz
1.90g/t2.10g/t2.53g/t
$827/oz
2.00g/t
ITY MINE, CÔTE D’IVOIREExploration added 515koz in 2016 and outlined new targets
47
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 portion of Endeavour’s 2017 exploration budget has been allocated to the Ity area in light of its strong prospectivity and potential to further extend the lives of the CIL project and Heap Leach operations.
› 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
48
$898/oz
Year 5
$554/oz
Years
10 to 14
109koz
$608/oz
133koz
Year 9
$638/oz
103koz
Year 8
124koz
Year 7Year 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/ozProduction based on reserves, koz
165kozpa at AISC of US$507/ozon average over the first 5 years
Long-life Low Cost Project
› Long 14-year reserves mine life
› Low AISC of $542/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 CollineSud 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’Ivoire
ITY MINE, CÔTE D’IVOIREIty CIL Feasibility Study Published in 2016
ITY MINE
Ity CIL Project DFS highlights
ITY MINE, CÔTE D’IVOIRESummary of independent feasibility study for CIL Project
Source: Ity CIL Feasibility Study 49
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 COSTUpfront 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 Bakatouoand Colline Sud discoveries
‒ Verse Ouest following recently completed infill drilling program
‒ Additional Resource conversionat 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’IVOIREFeasibility Study to be optimized in Q2-2017
50
Deposits to be added in the study
ITY MINE
POTENTIAL INCLUDES:
‒ The recently discovered Bakatouo and Colline Suddeposits and the results from the ongoing 11,700 meter reverse-circulation (“RC”) and diamond-drilling (“DD”) program to test their extensions and conduct infill drilling
‒ 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 Ouestfollowing the recent completion of the in-fill drilling program
ITY CIL PROJECT, CÔTE D’IVOIRE
51
ADDITIONAL POTENTIAL FOR RESOURCE CONVERSION
PROBABLE RESERVES INDICATED RESOURCES INFERRED RESOURCES
Tonnage Grade Content Tonnage Grade Content Tonnage Grade ContentDeposits 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
53
ITY CIL PROJECT, CÔTE D’IVOIREMultiple high grade trends discovered in the 100%-owned Le Plaque area
ITY MINE
INSIGHTS
‒ Several high-grade mineralized trends were identified at the Le Plaque area, with the largest being a 2km long anomaly
‒ Mineralization at the Le Plaque trends occurs from surface for the main lense and all trends are open along strike and at depth
‒ A maiden inferred resource estimate, for some of the targets identified in the Le Plaque area, is expected in Q4-2017
ITY CIL PROJECT, CÔTE D’IVOIREGreater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu
54
ITY MINE
INSIGHTS
‒ Endeavour consolidated an 80km underexplored Birimian corridor on-trend with its Ity mine in Côte d’Ivoire
‒ 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’IVOIRE80km underexplored Birimian corridor
Ity Mine Birimian corridor
55
ITY MINE
ITY CIL PROJECT, CÔTE D’IVOIREGreater Ity Regional Gold in Soil (> 100 ppb) Anomalies
56
Birrimian meta sedimentsand green belt
GnamapleuGranite-Gneiss
No Geochemical data at allNo Exploration
Historical Sparse 400x100m Grid on PR462Except on few selected targets
PR558 Le Plaque Area Several Targets
GBAMPLEU
Mt BA AreaSeveral targets
GUEYA areaSeveral targets
PR609 East CavallySeveral Targets
ITY MINE
ITY CIL PROJECT, CÔTE D’IVOIREGreater Ity: 2017 – 2021 Exploration Targets Toulepleu
57
Auger drilling
RC drilling
ITY MINE
ITY CIL PROJECT, CÔTE D’IVOIREHow significant is Greater Ity area?
58
EDV Controlled Greater ITY TRENDSEMAFO Controlled MANA TREND
ITY MINE
ITY MINE, CÔTE D’IVOIREExploration strategy
59*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/ozover the next 5 years with a budget of ~$55M*
ITY MINE
NZEMA MINE, GHANAOverview
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 1.431MozInferred: 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
2015A2016A
2014A110koz
100-110koz
115koz
88koz
AccraNzemaMine
Ghana
RECENT AND UPCOMING CATALYSTS
Accomplished
- Adamus pit cut back completed during Q1 2017
- Decreased dependency on purchased ore due to higher grades coming from our own mining activities
Upcoming
- Following the completion of the cut-back, Nzema is expected to continue to produce positive all-in sustaining margin and earnings
- Higher grades from Adamus pit to support AISC reduction
- Pre-stripping at Bokrobo deposit deposit expected to start in H2 2107
60
NZEMA MINE
NZEMA MINE, GHANAStronger production due to cut-back, despite lower purchased ore
61
NZEMA MINE
Q1-17 vs. Q4-16 INSIGHTS: › Production benefited from the completion of
the Adamus cut-back in Q1-2017 which started to lift grades mined
› As expected, total mill throughput decreased by 15% to reflect the increased proportion of fresh ore processed during the quarter
› Purchased ore decreased due to lowerrequirement more selective quality control process. Expected to increase in upcoming quarters
OUTLOOK
› Following the completion of the push-back project in March, Nzema is now expected to generate healthy cash flows
› 100- 110koz planned in 2017 to $895-940/oz, as AISC are expected to continue to decline throughout the year
› To complement production from the Adamuspit, pre-stripping at the Bokrobo deposit is expected to start in the second half of the year
Purchased Ore
Production and AISC
3.04g/t
112kt
Q2-2016
78kt
141kt
Q1-2017Q4-2016
92kt
Q1-2016
79kt
Q3-2016
Ore tonnes purchased , kt Grade purchased, g/t
2.97g/t3.09g/t 3.11g/t3.23g/t
$951/oz
26koz
Q2-2016 Q3-2016
24koz
20koz
24koz
20koz
Q1-2017Q4-2016Q1-2016
Production, koz AISC, US$/oz
$1,158/oz$1,266/oz
$1,136/oz $1,118/oz
KARMA MINE, BURKINA FASOOverview
62
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 2.981MozInferred: 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 TypeShallow 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 life8 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
62koz2016A
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
- Plant optimization project underway
- Kao pit expected to be in operation by year-end 2017
KARMA MINE
KARMA, BURKINA FASOProduction continued to ramp-up with increased processing efficiency
63
KARMA MINE
Q1-17 vs. Q4-16 INSIGHTS:
› The overall increase in mining activity was associated to the optimized performance of the mobile power screen and crushing sections leading to a increase in production despite a slight decrease in grade
› AISC remained fairly stable despite lower grades and increased drill and blasting requirement from hard rock in the mining sequence
OUTLOOK
› On track to meet 100-110koz production at AISC of $750-800/oz
› Expected to transition from Rambo to Kao later in the year
› Stacking capacity is expected to increase in the second half of the year following the completion of the plant optimization project, which is progressing on-time
Production and AISC
Tonnes Stacked and Grade
32koz29koz
20koz
12koz$748/oz
Q3-2016 Q1-2017Q4-2016Q2-2016
AISC, US$/ozProduction, koz
$738/oz
954kt853kt880kt
356kt1.07g/t
Q3-2016 Q4-2016 Q1-2017Q2-2016
Tonnes stacked, kt Grade milled, g/t Au
1.14/t1.21/t
1.18/t
KARMA, BURKINA FASONorth Kao Reserve Conversion Extended Mine Life To +10 Years
64
Karma Site MapNORTH 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, extending Karma’s mine life to beyond 10 years
› 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 FASOExploration strategy
67*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 mine “higher” grades targets to be drilled in 2017 (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/ozover the next 5 years with a budget of ~$15M to extend mine life to 15 years*
KARMA MINE
HOUNDÉ PROJECT, BURKINA FASOOverview
1Based on 100% equity funding and equipment lease financing²From production start 68
QUICK FACTS (ON 100% BASIS)
Ownership 90% EDV, 10% Burkina Faso
Status Fully permitted, construction launched
Production start date First gold pour expected Q4 2017
Resources(incl. of Reserves)
M&I: 37.9Mt @ 2.1 g/t for 2.551Moz
Inferred: 3.2Mt @ 2.6 g/t for 0.274Moz
Reserves 30.6Mt @ 2.1 g/t for 2.075Moz
Mine Type Open pit
LOM Strip Ratio 8.4
Processing Rate 3.0 Mtpa Gravity / CIL plant
Gold Recovery 93%
Upfront Capital (US$M) $328m, inclusive of $47m for the owner-mining fleet
LOMP SUMMARY (ON 100% BASIS)
Processing
Total ore processed, Mt 29.7Gold grade, g/t 2.15Contained gold, koz 2,057Recovery 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 FASOConstruction Progressing On-time And On-budget
69
HOUNDE MINE
Only ~35% of the capital remains to be spentSIGNIFICANT ACHIEVEMENTS TO-DATE:› Construction is progressing as planned, and is currently more than 75%
complete and remains on-budget
› 100% of the procurement has been complete, reducing cost over-run risk
› During the quarter ended March 31, 2017, $58 million was incurred on the project, with the remaining spend amounting to $125 million
› 3.5 million man-hours have been worked without a lost time injury
› The 38 km long, 90 kilovolt overhead power line construction is 89% complete. Power from the national grid is scheduled for August 2017.
› Open pit pre-strip mining at the Main Vindaloo open pit, adjacent to the processing facility, commenced in late December 2016.
› SAG and ball mill plinths concrete, as well as the TSF (Cell 1) earthworks have been completed
› The construction of the water harvest dam decant tower is complete, with water already being pumped to the water storage dam approximately one year 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
› A full back-up 26Mw power station has been ordered and construction of the foundations is underway. This is on schedule to be operational in Q3-2017
› The land compensation process has been successfully completed
$302m
$47m
$160m
$207m
Capex Spend (end of March 2017)
Total Capex(incl. $26m contigency)
$328m$26m contingency
Mining Fleet
Spent
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/ozProduction based on reserves, koz
Exploration upside expected to fill this shortfall
70
HOUNDÉ PROJECT, BURKINA FASOConstruction Progressing On-time And On-budget
HOUNDE MINE
Mill Heads Installation Mining Activities Started in Early 2017
Top of CIL Steel Tanks Village Resettlement
71
HOUNDÉ PROJECT, BURKINA FASOExploration Re-launched in 2017
Exploration Targets in Proximity to the Planned Mill2017 OUTLOOK
› The Houndé exploration tenement covers +1,075km² within Burkina Faso’s highly 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
73*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. 73
› 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 FASOExploration strategy
HOUNDE MINE
TABLE OF CONTENTS
STRATEGIC OVERVIEW1
APPENDIX4
2017 OUTLOOK & Q1 RESULTS2
DETAILS BY MINE AND PROJECT3
APPENDIX
BOARD MEMBERS
Michael BECKETTChairman,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
7575
ENDEAVOUR IS BACKED BY LA MANCHA
76
APPENDIX
30%holding
31%holding
Sawiris family’s mining investment vehicle
▪ La Mancha vended-in the Frog’s Leg and 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
77
18 19 20
1,250
82 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 1611 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
(AIS
C +
Initia
l Cap
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
CORPORATE OVERVIEW
78
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
SVPWest Africa Exploration
Resource Manager
HR Manager
New VenturesManager
Expert Geologist
FinanceManager
NI 43-101 Compliance
Greater ItyExplo Manager
Regional CIExplo Manager
AgbaouExplo Manager
HoundeExplo Manager
KarmaExplo Manager
Regional BFExplo Manager
Tabakoto/KofiExplo Manager
Abidjan based
Sr GeosJr GeosDBTechsAccountSupport
Sr GeosJr GeosDBTechsAccountSupport
Sr GeosJr GeosDBTechsAccountSupport
Sr GeosJr GeosDBTechsSupport
Sr GeosJr GeosDBTechsAccountSupport
Sr GeosJr GeosTechsAccountSupport
Sr GeosJr GeosTechsSupport
CEO
COOEVP
ProjectsEVP
Exploration & Growth
CI GovernmentRelations Advisor
Legal Advisor
CORPORATE OVERVIEW
UNLOCK EXPLORATION VALUEExploration a core focus in 2016 with a new structure in place
› 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
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)
7979
CORPORATE OVERVIEW
Methodic and Exhaustive Review to Quantify and Rank PotentialUNLOCK EXPLORATION VALUE
› 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 andcoherent 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
80
CORPORATE OVERVIEW
UNLOCK EXPLORATION VALUEFurther Selection, Ranking and Risk Evaluation
(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 MINEFor the years ended 2016 and 2015
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. 81
APPENDIX
PRODUCTION AND COST DETAILS BY MINE
1) Includes waste capitalized 82
APPENDIX
(on a 100% basis)
AGBAOU NZEMA TABAKOTO ITY KARMA
Unit Q1-2017 Q4-2016 Q1-2016 Q1-2017 Q4-2016 Q1-2016 Q1-2017 Q4-2016 Q1-2016 Q1-2017 Q4-2016Q1-
2016
Q1-
2017Q4-2016
Physicals
Total tonnes mined – OP1 000t 6,356 6,518 6,071 2,695 2,885 1,710 1,888 1,593 2,232 1,789 1,472 2,098 4,343 4,023
Total ore tonnes – OP 000t 624 674 820 396 288 277 217 195 146 329 316 287 1,050 783
Open pit strip ratio1 W:t ore 9.19 8.767 6.41 5.81 9.02 3.40 7.70 7.17 14.29 4.44 3.66 6.31 3.14 4.14
Total tonnes mined – UG 000t - - - - - - 311 324 360 - - - - -
Total ore tonnes – UG 000t - - - - - - 236 253 232 - - - - -
Total tonnes milled 000t 683 721 654 391 428 459 405 402 406 267 295 303 954 853
Average gold grade milled g/t 2.09 2.46 2.05 2.36 2.20 1.53 3.50 3.93 3.10 1.90 2.00 2.53 1.07 1.14
Recovery rate % 95% 97% 98% 88% 82% 86% 94% 95% 94% 98% 90% 90% 87% 90%
Gold ounces produced oz 41,937 57,061 42,765 26,131 23,874 19,757 43,028 47,884 38,542 15,892 17,480 22,324 31,652 29,112
Gold sold oz 39,981 56,936 40,434 29,061 22,033 20,109 43,812 47,053 38,270 18,347 15,038 21,964 31,107 28,743
Unit Cost Analysis
Mining costs - Open pit $/t mined 2.45 2.38 2.36 5.15 4.21 5.33 3.45 4.07 3.00 2.23 2.44 2.70 1.82 1.32
Mining costs – Underground $/t mined - - - - - - 57.66 58.80 43.71 - - - - -
Processing and maintenance $/t milled 6.82 6.26 5.79 15.46 14.08 12.15 22.55 23.50 20.46 15.44 13.13 16.35 7.10 7.76
Site G&A $/t milled 4.50 4.66 4.64 5.84 6.61 7.17 11.30 14.32 13.22 9.78 15.11 10.77 4.07 9.66
Cash Cost Details
Mining costs - Open pit1 $000s 15,581 15,537 14,325 13,867 12,151 9,109 6,509 6,479 6,688 3,988 3,585 5,670 7,924 5,306
Mining costs -Underground $000s - - - - - - 17,933 19,050 15,736 - - - - -
Processing and maintenance $000s 4,659 4,513 3,788 6,044 6,026 5,578 9,131 9,448 8,307 4,123 3,874 4,953 6,777 6,616
Site G&A $000s 3,074 3,362 3,035 2,283 2,831 3,289 4,577 5,757 5,369 2,610 4,458 3,263 3,884 8,241
Purchased ore at Nzema $000s - - - 4,004 4,093 3771 - - - - - - - -
Capitalized waste $000s (343) (951) (954) (1,996) (5,671) (1,741) (1,456) (4,586) (1,662) (142) (600) 0 (249) (359)
Inventory adjustments and other $000s (1,022) 2,050 (3,133) 38 1,638 2,091 (2,934) 22 (3,529) 3,174 115 (501) 2,241 (906)
Cash costs for ounces sold $000s 21,949 24,511 17,061 24,240 21,068 22,025 33,760 36,170 30,909 13,753 11,432 13,385 20,577 18,898
Royalties $000s 1,707 2,340 1,733 1,978 1,464 1,225 3,165 3,384 2,700 770 633 932 2,206 1,953
Sustaining capital $000s 2,735 3,434 2,443 1,423 2,106 36 5,782 4,081 7,368 1,611 378 1,285 447 359
Cash cost per ounce sold $/oz 549 431 422 834 956 1,095 771 769 808 750 760 609 661 657
Mine-level AISC Per Ounce Sold $/oz 660 532 525 951 1,118 1,158 975 927 1,071 879 827 710 748 738
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.com83
On a 100% basis On an attributable basisResources showninclusive 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 MineResources shown inclusive of Reserves. On a 100% basis
Tonnage(Mt)
Grade(Au g/t)
Content(Au koz)
Proven Reserves 0.4 0.59 8Probable Reserves 37.4 0.92 1,109P&P Reserves 37.9 0.92 1,117Measured Resource (incl reserves) 0.4 0.59 8Indicated Resources (incl reserves) 83.8 1.10 2,973M&I Resources (including Reserves) 84.3 1.10 2,981Inferred Resources 19.3 1.27 791
Karma Mine
Project1 Agbaou NzemaTabakoto
Ity Karma2 HoundeUG 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