OPERATIONAL & FINANCIAL RESULTS
› March 13, 2018
Q1
Q2
Q3
Q4
DISCLAIMER & FORWARD LOOKING STATEMENTS
2
Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. This presentation contains “forward-looking statements” including but not limited to, statements with respect to Endeavour’s plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “forecasts” and “anticipates”. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour’s most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.
Jeremy Langford, Endeavour’s Chief Operating Officer - Fellow of the Australasian Institute of Mining and Metallurgy – FAusIMM, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information in this news release.
2017 FULL YEAR RESULTS
Note : All amounts are in US$ and may differ from MD&A due to rounding
SÉBASTIEN DE MONTESSUS
Chief Executive Officer,
President & Director
JEREMY LANGFORD
Chief Operating Officer
VINCENT BENOIT
EVP – CFO
and Corporate Development
PATRICK BOUISSET
EVP – Exploration and Growth
SPEAKERS TABLE OF CONTENTS
FINANCIAL SUMMARY 2
CONCLUSION 4
DETAILS BY MINE AND PROJECT 3
APPENDIX 5
FULL YEAR 2017 IN REVIEW 1
Strong safety record
Group production and AISC guidance achieved
Completed group restructuring with corporate office in London and operational office in Abidjan
Launched cost reduction programs
Houndé construction completed ahead of schedule and below budget in October
Ity CIL Project optimization study published and construction launched in September
Karma plant optimization completed
Added 1.0Moz of Indicated
Resources at Ity in addition to the Le Plaque Discovery
Confirmation of high-grade targets near the Houndé plant
JV with Randgold in Ivory Coast
Strong focus on setting up greenfield exploration activities with ramp-up in 2018
Sold Nzema
Purchased Kalana project to strengthen project pipeline
Upsized RCF from $350m to $500m with better terms
Strong liquidity sources of over $500m following convertible note issuance in February 2018
2017 ACTVITIES RECAP
4
Strong Continued Achievements Across Our 4 Pillars
1 2 3 4 UNLOCKING EXPLORATION
VALUE
PROJECT DEVELOPMENT
PORTFOLIO & BALANCE SHEET MANAGEMENT
OPERATIONAL EXCELLENCE
2017 FULL YEAR RESULTS
Lost Time Injury Frequency Rate= (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period) The selected peer group based on same reporting metrics, used from company annual reports for 2016 from Randgold, Nordgold, Eldorado, Asanko, Glencore, and Goldcorp 5
Lost Time Injury Frequency Rate
0.000.00
0.29
0.40
0.80
Peer Group Average
Agbaou Houndé FY2017 FY2016
0.29 2017 Lost Time
Injury Frequency Rate
+7.0m Man Hours with no LTI for Houndé build
Construction track record
Operating track record
Continued to improve our safety record in 2017
OPERATIONAL EXCELLENCE 1
2017 FULL YEAR RESULTS
Production and AISC Q4 INSIGHTS
› Record performance with production
up 38% and AISC down 13%
compared to Q3-2017
‒ Higher than expected production
at Houndé after a ramp-up in
record time (69koz vs. guidance of
30-35koz) and lower than
expected AISC ($335/oz vs.
guidance of $550-600/oz)
‒ Production also benefitted from
an increase at Ity which partially
offset declines at Agbaou,
Tabakoto and Nzema, while Karma
remained flat
OPERATIONAL EXCELLENCE
6
Houndé start-up lifted group performance metrics in Q4
$906/oz$897/oz
$905/oz
$785/oz
$855/oz
175koz
204koz
159koz
Q2-17 Q4-17
152koz 148koz
Q4-16 Q1-17 Q3-17
1
AISC inclusive of discountinued operations For discontinued operations For continuing operations
2017 FULL YEAR RESULTS
OPERATIONAL EXCELLENCE
Total production includes discontinued Youga and Nzema operations *Guidance does not take into account 6koz from Ity, post its acquisition
7
Production lifted with full-year of Karma and Houndé start-up
670koz -
720koz
2018 Guidance 2017 2016 2015 2014 2013
Production, on a 100% basis in koz
5th YEAR of successfully
meeting production guidance
+12% Total production
2017 vs 2016
324koz (315-330koz guided)
517koz (475-500koz guided*)
592koz (575-610koz guided)
663koz (600-640koz guided)
1
466koz
(400-440koz guided)
For discontinued operations
For continuing operations
2017 FULL YEAR RESULTS
OPERATIONAL EXCELLENCE
Includes discontinued Youga and Nzema operations 8
AISC continued to trend lower in 2017
AISC including discontinued operations, in US$/oz
2014 2015 2016
$840-890/oz
2018 Guidance 2017 2013
(Guidance for the year)
-$17/oz 2017 vs. 2016
1
5th YEAR of successfully meeting AISC
guidance
2017 FULL YEAR RESULTS
($760-810/oz excluding Tabakoto)
$1,099/oz ($1,055-1,155/oz) $1,010/oz
($985-1,070/oz)
$922/oz ($930-980/oz)
$886/oz ($870-920/oz)
$869/oz ($850-895/oz)
OPERATIONAL EXCELLENCE
Gold prices stated represent realized gold prices, 2016 and 2017 include the Karma stream *2018 was estimated based on production guidance range, AISC guidance mid-point, a spot gold price of $1,325/oz and non-sustaining capex guidance 9
Continued increase in All-in Margin All-in Margin, in US$m
+9% 2017 vs 2016
+20% Approximated growth in 2018
1
2016
$149m
2015 2017 2018 Guidance
$175-200m*
$85m
2014
$35m
$162m
Gold price
2017 FULL YEAR RESULTS
$1,264/oz $1,157/oz $1,222/oz $1,219/oz $1,325/oz
Houndé Completed Ity CIL Launched: First gold pour expected for mid-2019
10
PROJECT DEVELOPMENT Completed Construction of Houndé and Launched the Construction of Ity CIL
2
BELOW BUDGET BY $15M
2 MONTHS AHEAD OF TIME
0 LTIs OVER +8M MAN HOURS
Houndé Mill, December 2017 Ity CIL Ring Beams Poured, February 2018
HIGHLIGHTS
10-year mine life based on current reserves + significant exploration upside
235koz average production for years 1-4
$610/oz average AISC for years 1-4
HIGHLIGHTS
Long 14-year reserve mine life
Low AISC of $494/oz over first 5 years
Solid production of 235kozpa over first 5 years
After-tax IRR of 40% and NPV5% of $710m based on a gold price of $1,250/oz
2017 FULL YEAR RESULTS
Note: See2016 & 2017 Investor Day Presentations on EDV website for full details. Based on average gold grade of 2.0-3.5g/t for Greater Ity, 1.8-2.5g/t for Houndé, 2.0-4.0g/t for Tabakoto, 1.0-1.5g/t for TrueGold and 1.5-3.0g/t for Côte d’Ivoire regional. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. Kalana is currently being integrated into 5-year program, with consolidating adjacent tenements.
11
Ity was strongest focus in 2017, to size the plant ahead of construction launch
UNLOCKING EXPLORATION VALUE
4.0-6.0Moz
Greater Ity Karma Tabakoto Agbaou Houndé Côte d’Ivoire Regional
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 Resources
Discovery Target (set in Nov. 2016)
INSIGHTS:
› The strongest focus of the 2017 exploration program was to increase Ity’s Indicated resources for inclusion in the Optimization Study published in September 2017, which successfully led to the addition of over 1 million ounces
› 2018 exploration budget of $40-45 million, in line with 2017 spend of $44m focused mainly on:
‒ Houndé and Kalana are expected to be the largest near-mine focus during 2018
‒ Approximately 40% of the budget is expected to be dedicated to greenfield opportunities, in line with the overall strategy of sourcing Endeavour’s next mine organically
1.5Moz Discovered
2017 FULL YEAR RESULTS
12
Since Nov. 2016 to Dec 2017
2019
2.3Moz
0.4Moz added at Karma
0.4Moz added at Tabakoto
1.5Moz added at Ity
2020 2018 2021
10-15Moz target
On-track to meet 5-year exploration target
UNLOCKING EXPLORATION VALUE 3
2017 FULL YEAR RESULTS
~20% achieved
P&P Reserve Evolution M&I Resource Evolution
Details by mine provided in the appendix 13
UNLOCKING EXPLORATION VALUE Continued reserve and resource expansion
9.0Moz
7.1Moz
5.9Moz
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
+3.1Moz
14.9Moz
12.6Moz
11.0Moz
+3.9Moz
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
3
2017 FULL YEAR RESULTS
(Inclusive of reserves)
SOLD NZEMA MINE KALANA DFS-STAGE PROJECT ACQUIRED
14
Nzema Mine Sold and Kalana Project Acquired
PORTFOLIO & BALANCE SHEET MANAGEMENT 4
An updated feasibility study is expected to be publish by year-end 2018:
› Integration of exploration upside, with updated resource expected by mid-year 2018
› Expansion of plant capacity to increase average annual production and shorten mine life
› Integration of synergies
2017 FULL YEAR RESULTS
For total cash consideration of up to US$65 million
Strategic Rationale:
SHORT MINE LIFE
HIGH AISC COST
REFOCUS ON FRENCH WEST-AFRICA
Acquired for approx. US$120m in shares
LOW AISC COST $561/oz FOR YEAR 1-5
LONG 17-YEAR MINE LIFE
50% IRR
$321m NPV
Bridges construction pipeline
Ity CIL Construction
KALANA
ITY CIL
2017 2018 2019 2020 2021 2022
GREENFIELD EXPLO
DFS Optimization Construction
Resource Definition Studies Construction
INSIGHTS
› Production from continuing operations is expected to increase to 670-720koz in 2018
› AISC is expected to decrease to $840-890/oz due to the full year benefit of Houndé and improvements at Karma and Ity which are expected to more than offset declines at Agbaou and Tabakoto
› In-line with Endeavour’s portfolio management strategy, a strategic assessment is expected to be made on Tabakoto during the course of the year. 2018 production excluding Tabakoto is expected to range between 555-590koz at an AISC of $760-810/oz
2018 GUIDANCE INCREASED WITH HOUNDÉ
15
Continued reduction in AISC expected
Production Guidance
AISC Guidance
(All amounts in koz, on a 100% basis) 2018 FULL-YEAR GUIDANCE
Agbaou 140 - 150
Ity 60 - 65
Karma 105 - 115
Tabakoto 115 - 130
Houndé 250 - 260
PRODUCTION FROM CONTINUING OPERATIONS 670 - 720
PRODUCTION FROM CONTINUING OPERATIONS EXCLUDING TABAKOTO 555 - 590
(All amounts in $/oz, on a 100% basis) 2018 FULL-YEAR GUIDANCE
Agbaou 860 - 900
Ity 790 - 850
Karma 780 - 830
Houndé 580 630
Tabakoto 1,200 - 1,250
Corporate G&A 30 - 30
Sustaining exploration 10 - 10
GROUP AISC FROM CONTINUING OPERATIONS 840 - 890
GROUP AISC FROM CONTINUING OPERATIONS EXCLUDING TABAKOTO 760 - 810
2018 GUIDANCE
INSIGHTS
› Growth projects amount to $200 million of the sustaining and non-sustaining capital allocations for 2018, mainly for the Ity CIL project construction
› In 2018 a company-wide exploration program of $40-45 million (compared to circa $44 million in 2017) was launched
‒ Approx 40% of the budget will be dedicated to greenfield opportunities
‒ A strong focus will continue at Houndé to support the ramp-up of mining operations
‒ There will be a continued focus at the Ity mine and greenfield targets along its 100km trend
‒ An intensive Kalana exploration campaign is planned for H1-2018 with the aim of integrating the results into the updated feasibility study
2018 CAPEX GUIDANCE
*Includes expensed, sustaining, and non-sustaining exploration expenditures 16
Ity CIL build and exploration are the main drivers
Capital Expenditure Guidance, $m
Exploration Guidance, $m
(in $m)
SUSTAINING
CAPITAL
NON-SUSTAINING
CAPITAL
GROWTH
PROJECTS
Agbaou 17 2 -
Tabakoto 37 - -
Ity 2 - 180
Karma 2 23 -
Houndé 3 23 10
Kalana - - 10
Exploration 7 29 -
Corporate (Group IT system) - 7 -
TOTAL 68 84 200
2018 GUIDANCE
(on a 100% basis)
2017
EXPENDITURES
2018 BUDGET
ALLOCATION
Agbaou 6.2 4 8%
Tabakoto and greenfield
Kofi areas 8.1 7 15%
Ity and greenfield areas on its 100km trend 8.4 8 18%
Karma 2.5 2 4%
Kalana 0 6 13%
Houndé 4.9 9 21%
Other greenfield properties 14.3 10 22%
TOTAL EXPLORATION EXPENDITURES* 44.3 $40-45m 100%
FULL YEAR 2017 IN REVIEW 1
APPENDIX 5
DETAILS BY MINE AND PROJECT 3 CONCLUSION 4
FINANCIAL SUMMARY 2
Includes discontinued operations Youga and Nzema 18
2017 benefitted from the addition of Houndé and full-year at Karma PRODUCTION INCREASED IN 2017
INSIGHTS BY MINE
ITY TABAKOTO AGBAOU
$906$756
2018E
60-65koz
$790-850
2017A
59koz
2016A
76koz
2017A
116koz
$859
2016A
88koz
$1,167
NZEMA
2018E
155-130koz
2017A
144koz
$1,148
2016A
163koz
$1,027
$834$738
2018E
105-115koz
2017A
98koz
2016A
62koz
KARMA
2018E
250-260koz
2017A
AISC, $/oz Production, koz
Houndé
$647$534
2018E
140-150koz
$860-900
2017A
177koz
2016A
196koz
Karma
+69koz
Houndé FY 2017
663koz
+36koz
Ity
(17koz)
Tabakoto
(19koz)
Agbaou
(18koz)
Nzema (sold in 2017)
+28koz
Youga (sold in 2016)
(8koz)
FY 2016
592koz
PRODUCTION VARIATION Full Year 2017 vs 2016 Bridge
AISC of $886/oz
AISC of $869/oz
$580-630
$335
69koz $1,200
-1,250
2017 FULL YEAR RESULTS
$780-830
YEAR ENDED,
(in US$ million) 2017 2016
GOLD SOLD FROM CONTINUING OPERATIONS, koz 537 460
Gold Price, $/oz 1,214 1,231
REVENUE FROM CONTINUING OPERATIONS 652 566
Total cash costs (357) (281)
Royalties (34) (26)
Corporate costs (23) (27)
Sustaining capex (44) (41)
Sustaining exploration (10) (10)
ALL-IN SUSTAINING MARGIN FROM CONTINUING OPERATIONS 184 182
All-in sustaining margin from discontinued operations 47 10
ALL-IN SUSTAINING MARGIN FROM ALL OPERATIONS 231 192
Less: Non-sustaining capital (44) (26)
Less: Non-sustaining exploration (25) (17)
ALL-IN MARGIN FROM ALL OPERATIONS 162 149
19
All-in margin increased despite the planned increase in non-sustaining capital
ALL-IN MARGIN BREAKDOWN
INSIGHTS 1. Gold sales up mainly due to a full year of
production at the Karma mine following its start in Q2-2016 and the successful start-up of Houndé
2. Inclusive of 20,000 ounces delivered under the Karma stream
3. Strong increase as improvements at Karma and Nzema, and the start-up of Houndé more than offset the lower realized gold price and expected AISC increase at Agbaou
4. Main investments occurred at Karma (total of $28 million for a heap leach pad expansion, relocation, and pre-stripping activities) and Nzema ($9 million for the Adamus pit push-back)
5. Increase due to strategic focus on exploration
Additional notes available in Endeavour’s MD&A filed on Sedar for the referenced periods.
1
2
3
4
5
FINANCIAL SUMMARY
YEAR ENDED,
(in US$ million) 2017 2016
ALL-IN MARGIN FROM ALL OPERATIONS 162 149
Working capital (14) (36)
Taxes paid (22) (11)
Interest paid and financing fees (16) (25)
Cash settlements on hedge programs and gold collar premiums (4) (15)
NET FREE CASH FLOW FROM OPERATIONS 107 63
Growth project capital (317) (135)
Greenfield exploration expense (5) (7)
M&A activities (42) 11
Cash paid on settlement of share appreciation rights, DSUs and PSUs (4) (6)
Net equity proceeds 108 183
Restructuring costs (12) (19)
Net proceeds from Karma pre-production - 34
Other (foreign exchange gains/losses and other) 4 (0)
NET CASH/(NET DEBT) VARIATION (162) 124
Proceeds (repayment) of long-term debt 160 (110)
CASH INFLOW (OUTFLOW) FOR THE PERIOD (2) 15
20
Cash from operations and RCF used to fund growth
GROWTH FUNDING SOURCES
INSIGHTS 1. Main 2017 Working capital drivers were:
‒ $20m in receivable from the sale of Nzema
‒ $41.0m outflow of inventory due to the increase of GIC at Karma and Ity, increase of supplies inventory at Tabakoto, and the inclusion of inventory at Houndé.
‒ $17.6m outflow of prepaid expenses mainly due to the Ity CIL project
‒ $29.7m inflow of project WC
‒ $41.6 million inflow of trade and other payables mainly due to the inclusion of Houndé operational payables
2. Includes $196m for Houndé construction, $70m for Ity CIL construction, $41m for Karma optimization, and $4m for Kalana project
3. Consists mainly of $54m for the purchase of an additional 25% Ity stake, $8.6 net cash received from the sale of Nzema ($38.5 million received on closing less deconsolidation of $30 million Nzema cash position) and M&A fees of $4m, which were offset by the $8m inflow of cash acquired upon the Avnel acquisition
4. Mainly La Mancha private placements less dividends to minorities
5. Used to fund Houndé project
Additional notes available in Endeavour’s MD&A filed on Sedar for the referenced periods.
5
2
3
4
1
FINANCIAL SUMMARY
21
Operating activities covered nearly half of investment activities
CASH VARIATION ANALYSIS
$124m $123m
$222m
Cash position at 2016-end
($479m)
Operating activities
Cash position at 2017-end
Effect of exchange rate
$4m
Financing activities
$252m
Investing activities
Net Cash Variation Analysis
Additional notes available in Endeavour’s MD&A filed on Sedar for the referenced periods.
OPERATING ACTIVITIES › Up $68m over 2016 due to stronger production
INVESTING ACTIVITIES
› Outflows for 2017 include:
‒ $315m growth projects
‒ $54m Ity 25% acquisition
‒ $130m of sustaining & non-sustaining
› Inflows for include:
‒ $9m net Nzema cash received
‒ $8m cash acquired upon Avnel acquisition
FINANCING ACTIVITIES › $113m of equity proceeds in 2017
› $160m RCF draw-down in 2017
(in US$ million)
YEAR ENDED
Dec. 31, Dec. 31,
2017 2016
Net cash from (used in):
Operating activities 222 154
Investing activities (479) (180)
Financing activities 252 42
Effect of exchange rate changes 4 (1)
INCREASE IN CASH (2) 15
FINANCIAL SUMMARY
22
Healthy net debt position following Houndé build
NET DEBT ANALYSIS
Net Cash Variation Analysis
Additional notes available in Endeavour’s MD&A filed on Sedar for the referenced periods.
INSIGHTS
› The significant efforts done in Q4-2015 and in Q1-2016 to strengthen our balance sheet have allowed us to successfully finance the Houndé build
› As expected Net Debt increased in 2017, remaining healthy with a significant EBITDA increase expected in 2018
› As Ity is built, Net Debt is expected to trend slightly higher and then quickly decrease once in production due to its quick payback of <2 years
YEAR ENDED
Dec. 31, Dec. 31,
(in US$ million unless stated otherwise) 2017 2016
CASH POSITION AT END OF PERIOD 123 124
Equipment finance leases (54) (10)
Drawn portion of revolving credit facility (300) (140)
NET DEBT POSITION (232) (26)
Net Debt / Adjusted EBITDA (LTM) ratio 1.05 0.11
1.1x
Ity CIL in production
Ity construction phase
2016-end 2014-end
$254m (168% of market cap)
2015-end 2017-end
Net Debt Net Debt / Adj. EBITDA (LTM)
1.8x
0.9x
$144m (44% of market cap)
0.1x
Targeting <1.5x
Mid-term target of 0.5-1x
$26m (2% of market cap)
$232m (11% of market cap)
FINANCIAL SUMMARY
23
Diversified debt sources with lower interest cost and increased maturity
BALANCE SHEET MANAGEMENT
› DEBT SOURCE: $350m RCF ($140m drawn)
› INTEREST RATE: LIBOR plus 3.75% to 5.75% on drawn portion & 1.31% to 2.01% on undrawn
› TERM AND REPAYMENT March 2020, with semi-annual repayments starting Sept. 2018
› DEBT SOURCES: Diversified across a $350m RCF and $330m convertible notes
› RCF TERMS WERE IMPROVED IN 2017:
‒ Interest rate reduced to LIBOR plus 2.95% to 3.95% on drawn portion & 1.03% on undrawn portion, saving of $5m/yr with removal of maintenance costs
‒ Maturity extended to Sept. 2021, with bullet repayment
› CONVERTIBLE NOTE ISSUED IN FEBRUARY 2018
‒ 3% coupon on convertible note and RCF standby fee February
‒ Ability to settle in cash or shares
‒ Conversion price of CAD29.47 (US$23.90) with maturity of February 2023
SITUATION AT END OF 2016 CURRENT SITUATION
Diversified sources of funding Lowered borrowing cost, with less LIBOR exposure Liquidity of $503m, which gives significant headroom to
found Ity CIL and Kalana Extends average maturity of our debt and provides
greater flexibility
Х High interest rates Х Only source of funding with high exposure to LIBOR Х Liquidity of $334m, which was not enough to fund both
Houndé and Ity
FINANCIAL SUMMARY
24
Straight bond interest rate, % ~8%
Convertible bond, % 3%
Cost difference, % ~5%
Annual cost difference on $330m bond $16m
ADVANTAGES OF THE CONVERTIBLE NOTES
REDUCES ITS OVERALL FINANCING COSTS AND DE-RISKS LIBOR EXPOSURE 1
$25m$21m
$18m$15m
$11m
$7m$6m
6.0% 5.0% 4.0% 3.0% 1.8% (current)
1.5% 7.0%
Annual saving based on $330m convertible compared to $330m drawn on RCF at various Libor rates
MORE ATTRACTIVE THAN A STRAIGHT BOND DUE TO LOWER INTEREST PAYMENTS
2 LIMITED DILUTION DUE TO OPTION TO SETTLE IN CASH
3
0%
2%
4%
6%
8%
10%
12%
14%
1 6 11 16 21 26 31 36 41 46 51
Po
ten
tial
dilu
tio
n
If principle is settled in cash and in the money option in shares
If all settled in shares
Share Price at maturity in C$
FINANCIAL SUMMARY
0.50%
1.00%
1.50%
2.00%
2.50%
January 30 - Convertible issuance
1.77%
2.07%
March 7
LIBOR curve
25
SIGNIFICANT FUNDING SOURCES TO FUND GROWTH Cash flow expected to fund a large portion of the Ity CIL construction
$152m$122m
$350m
$200m
Growth Projects
Sources of Funding until mid-2019
Expected Mine CF until start of Ity CIL (mid-2019)
Ity Equipment Financing
Nzema Sale
Liquidity Sources (after convertible
issuance)
Liquidity Sources (As at Dec. 31, 2017)
$502m
$322m
~$400m
Circa $60m Up to $25m
Houndé remaining capex
Ity capex Undrawn
RCF
Cash
Fully funded without mine cash flow
INSIGHTS › $330m convertible was closed in February 2018 › Intent is to pay down the current $300m drawn on the RCF
and reduce RCF limit from $500m to $350m › Increases liquidity by $180m
(in $m)
DEC. 31, 2017
(with convertible)
DEC. 31,
2017
SEPT. 30,
2017
DEC. 31,
2016 Cash 153 123 125 124
Less: Equipment finance lease (54) (54) (46) (10)
Less: Drawn portion of RCF (0) (300) (300) (140)
Less: Convertible Notes (330) - - - NET DEBT POSITION (232) (232) (221) (26)
FINANCIAL SUMMARY
26
Adjusted EPS
NET EARNINGS BREAKDOWN
12 MONTHS ENDED
(in US$ million)
DEC. 30, 2017
DEC. 30, 2016
GOLD REVENUE 652 566
Operating expenses (365) (284)
Depreciation and depletion (131) (86)
Royalties (34) (26)
EARNINGS FROM MINE OPERATIONS 122 171
Corporate costs (23) (27)
Impairment charge of mineral interests (130) -
Acquisition and restructuring costs (16) (24)
Share based expenses (23) (9)
Exploration (5) (7)
EARNINGS FROM OPERATIONS (76) 104
(Losses)/gains on financial instruments (3) (12)
Finance costs (19) (25)
Other income (expenses) (2) (2)
Current income tax recovery (expense) (14) 4
Deferred taxes expense (19) (31)
Net loss from discontinued operations and loss on disposal (44) (90)
TOTAL NET AND COMPREHENSIVE EARNINGS (LOSS) (177) (52)
Less adjustments 247 171
ADJ. NET EARNINGS/(LOSS) FROM CONT. OPERATIONS 69 119
Portion attributable to shareholders 66 99
ADJ NET EARNINGS PER SHARE 0.67 1.23
A = Adjustments made
A
A
A
A
A
A
INSIGHTS
› Adjusted earnings from continuing operations attributable to shareholders amounted to $69 million for 2017, a decrease of $50 million compared with 2016, mainly due to a $45 million increase in depreciation
› In 2017, total adjustments of $246 million were made related mainly to:
‒ A $130m impairment charge on Tabakoto, decreasing its carrying value to $94m. As guided, a strategic decision on Tabakoto is expected by mid-year
‒ A $44m net loss on the sale of Nzema
‒ In addition, adjustments were notably made for acquisitions and restructuring costs, deferred income tax expense, stock-based expenses, gain/loss on financial instruments and other non-cash adjustments
FINANCIAL SUMMARY
FULL YEAR 2017 IN REVIEW 1
APPENDIX 5
DETAILS BY MINE AND PROJECT 3 CONCLUSION 4
FINANCIAL SUMMARY 2
Q4-17 INSIGHTS:
› Production surpassed the upper end of the 30-35koz guidance with better than expected mill availability, throughput, grades, recovery rates and downtime
› AISC was below the $550-600/oz guidance range due to the higher than expected production and low mining costs
2018 OUTLOOK
› Houndé is expected to produce 250-260koz in 2018 at an AISC of $580-630/oz
› Mining activities are expected to continue to ramp-up to achieve a mining rate of 40Mtpa, up from 18Mtpa in 2017
› Mining and processing of fresh ore began in the latter portion of Q4-2017. Mining activities are expected to progressively transition from mainly oxides in early 2018 to mainly fresh ore by the end of 2018
28
HOUNDÉ MINE, BURKINA FASO Strong contribution to group performance due to quick ramp-up period
DETAILS BY MINE & PROJECT
Performance Indicators Q4-2017 FY-2017
Tonnes ore mined, kt 663 1,222
Strip ratio (incl. waste cap) 13.79 13.13
Tonnes milled, kt 813 813
Grade, g/t 2.75 2.75
Recovery rate, % 95% 95%
PRODUCTION, KOZ 69 69
AISC/OZ 335 335
Houndé aerial view
29
HOUNDÉ MINE, BURKINA FASO Strong exploration focus in 2018 on high-grade targets
DETAILS BY MINE & PROJECT
Houndé exploration targets and gold-in-soil anomalies map
Priority 1
Priority 2 Priority 2
Priority 2
Priority 2
INSIGHTS › Following a two-year period of no exploration, activities resumed in 2017 with $5m spent on a drilling program totalling approximately 76,000m › The 2017 campaign yielded positive results with the discovery of high-grade intercepts at both the Kari Pump target and the Sia/Sianikoui targets › Strong 2018 focus with a $9m program (125,000m) with the aim of drilling the entire Kari anomaly and delineating a maiden resource
……
Production and AISC
Q4-17 vs Q3-17 INSIGHTS:
› Production slightly decreased in line with guidance, due to a lower grade and slightly lower tonnage milled
‒ Ore extraction continued to perform well, with tonnage flat over the previous quarter
‒ Mill throughput decreased slightly but remained at a high level as the proportion of fresh ore processed increased from 15% to 25%
‒ Processed grades decreased due to the mining sequence
‒ Recovery rates remained constant despite a greater proportion of fresh ore
› AISC increased in line with guidance as operations continued to transition towards mining and processing a greater proportion of fresh ore
30
$690/oz
46koz
Q1-2017 Q3-2017
42koz
57koz
Q2-2017 Q4-2017
43koz 45koz
Q4-2016
Production, koz AISC, US$/oz
$532/oz
$660/oz
AGBAOU MINE, CÔTE D’IVOIRE Continued low AISC as mine transitioned into harder ore blend
Tonnes Processed and Grade
760kt770kt693kt683kt721kt
1.85 g/t
Q4-2017 Q3-2017 Q2-2017 Q4-2016 Q1-2017
Grade milled, g/t Au Tonnes milled, kt
2.46 g/t
2.09 g/t
$606/oz
2.23 g/t
$638/oz
1.96 g/t
DETAILS BY MINE & PROJECT
Production and AISC FULL YEAR 2017 INSIGHTS › Full year production achieved the mid-range of
the 175-180koz guidance
› AISC for 2017 was well below the guided $660-700/oz range, as less fresh and transitional ore was processed than initially planned. In addition, lower than anticipated sustaining capital was incurred as planned waste capitalization was pushed into 2018
2018 OUTLOOK › 2018 is expected to be a transition year for
Agbaou with a large focus on waste capitalization activities (including the pre-strip on the West pit), which are expected to give access to higher grade areas afterwards
› Production is therefore expected to decrease to 140-150koz as low-grade stockpile feed is expected to supplement mine feed to allow waste capitalization activities to progress more quickly
› AISC is expected to increase to $860-$900/oz as a result of increased sustaining costs and a progression to 50% oxide and 50% fresh and transitional ore blend
31
AGBAOU MINE, CÔTE D’IVOIRE Production and AISC in-line with increased proportion of fresh ore
2018 Production
140-150koz
2017 Production
195koz
177koz
Δ Recovery Rate
Δ Grade Processed
Δ Tonnes Processed
2016 Production
$534/oz
$647/oz
$860-900/oz
DETAILS BY MINE & PROJECT
2017 2016
Tonnes ore mined, kt 2,983 2,797
Strip ratio (incl. waste cap) 8.42 8.07
Tonnes milled, kt 2,906 2,827
Grade, g/t 2.02 2.27
Recovery rate, % 94% 97%
PRODUCTION, KOZ 177 196
AISC/OZ 647 534
Performance Indicators
INSIGHTS
› Agbaou’s 2017 exploration program amounted to $6.2m with 31,400m of drilling
› The primary objective for the 2017 program was to conduct in-pit drilling at the North pit and to test gold in soil anomalies on parallel shear zones. The latter marks the first target generation campaign since production began in 2014, as exploration activities were previously mainly focused on in-pit and step-out drilling due to capital constraints
› The campaign at the North pit confirmed that its mineralization extends at depth with occurrences of higher grade intercepts
› A $4m exploration program totaling 16,000m has been planned for 2018 with the aim of delineating the at-depth potential of the North pit and further investigating targets on parallel trends
32
AGBAOU MINE, CÔTE D’IVOIRE Exploration program continues to progress
Agbaou Site Map
DETAILS BY MINE & PROJECT
Q4-17 vs Q3-17 INSIGHTS:
› Following the rainy season, production increased due to higher stacking and mining rates, in addition to improved grades and recovery rates
‒ Tonnes of ore mined increased as mining activities ramped up following the end of the rainy season. Mining continued on the Zia and Ity Flat pits in Q4, following the decision to defer the high-grade Bakatouo pit for the upcoming CIL project
‒ Ore stacked increased due to the softer nature of the Ity Flat laterite ore and the benefit of the dry season
‒ The stacked grade increased as higher-grade ore at the Ity Flat pit became accessible
‒ Recovery rates increased but were still impacted by the lag-time of the high soluble copper content of the Bakatouo ore stacked in Q3-2017
› AISC decreased due to lower unit mining costs and lower unit processing costs, following the rainy season
33
ITY HEAP LEACH MINE, CÔTE D’IVOIRE Production increased following the rainy season
$869/oz
Q4-2017
17koz
12koz
Q3-2017 Q2-2017 Q1-2017
14koz
17koz 16koz
Q4-2016
AISC, US$/oz Production, koz
372kt
312kt
243kt267kt
295kt
1.86g/t
Q2-2017 Q3-2017 Q4-2017 Q1-2017 Q4-2016
Grade milled, g/t Au Tonnes stacked, kt
Production and AISC
Ity mine extraction
$827/oz
2.00g/t
$879/oz
1.90g/t
$780/oz
2.15g/t
$1,141/oz
1.58g/t
DETAILS BY MINE & PROJECT
FULL YEAR 2017 INSIGHTS › Production decrease and AISC increased as lower
grade ore was stacked to preserve higher grade ore for the upcoming CIL project, in addition the recovery rates returned to more normalized levels
› Following the decision to defer the high-grade Bakatouo pit for the upcoming CIL project, full year production came in below the guided 75-80koz range and AISC exceeded the guided $740-780/oz range
2018 OUTLOOK › Production in 2018 is expected to increase
slightly to 60-65koz and AISC are expected to decrease to $790-$850/oz as a result of anticipated higher grades
› 2018 is expected to be a transition year for the heap leach operation with greater priority given to the CIL construction activities and the maximizing of trade-off opportunities between immediate heap leach production and better margins with the CIL plant, with planned lower costs and higher recovery rates in 2019
34
ITY HEAP LEACH MINE, CÔTE D’IVOIRE Transition year in 2018 as the CIL is built
Production and AISC
60koz
2017 Production
Δ Tonnes Processed
Δ Recovery Rate 2016 Production
Δ Grade Processed
73koz
2018 Production
60-65koz $756/oz
$906/oz $790-850/oz
DETAILS BY MINE & PROJECT
Performance Indicators
For The Year Ended 2017 2016
Tonnes ore mined, kt 1,410 1,186
Strip ratio (incl. waste cap) 3.71 4.15
Tonnes stacked, kt 1,194 1,173
Grade, g/t 1.85 2.20
Recovery rate, % 83% 93%
PRODUCTION, KOZ 59 76
AISC/OZ 906 756
ACHIEVEMENTS TO DATE
› Construction was launched in September 2017 and remains on time and on budget with first gold pour expected in mid-2019
› No LTI with over 800,000 man-hours worked
› Nearly 50% of the total capital cost of has already been committed
› All 8 CIL ring beams have been poured
› SAG mill foundation pour complete and ball mill foundation pour commencing
› EPCM design is approximately 50% completed
› Design work for the 90KV transmission line is complete and bush clearing is 70% completed
35
ITY HEAP LEACH MINE, CÔTE D’IVOIRE CIL construction is progressing on time and on budget
CIL Ring Beams Poured
DETAILS BY MINE & PROJECT
36
ITY CIL PROJECT MINE, CÔTE D’IVOIRE
TSF Earthworks
Construction is progressing on time and on budget
DETAILS BY MINE & PROJECT
37 “ SMP” means Structural Mechanical and Piping, “OHPL” means 91KV Overhead Power Line, “TSF” means Tailings Storage Facility
ITY CIL PROJECT MINE, CÔTE D’IVOIRE Construction upcoming milestones
DETAILS BY MINE & PROJECT
2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
OHPL commences
POWER HV power
access
Activity
FIRST GOLD POUR
Bridge crossing complete
Pre-strip starts
Admin building starts
Camp started
FEED completed
Plant civil’s completed
Camp earthworks complete
CAMP CONSTRUCTION
Mill cast on-site
Diesel generator power-on
Bolted tank installation starts
EARTHWORKS & TSF
DETAILED ENGINEERING
Power-on at plant
CIVIL WORKS
MINING
PLANT BUILD
Ball & Sag mills on-site
Electricals & commence
TRACKING ON-TIME & ON-BUDGET
Ore commissioning
SMP starts
Owner-mining activities commence
TSF complete
Plant civil works complete
Crusher & ball-mill foundations
INSIGHTS
› Ity’s 2017 exploration program amounted to $14 million, totaling 58,500 meters of drilling focused on increasing the resource base for the CIL Optimization Study
› More than 1Moz of Indicated resources were added in 2017 following the successful drilling campaigns at the Bakatouo, Ity, Daapleu and Verse Ouest deposits and at the recent Le Plaque discovery
› A $2 million exploration campaign is planned in 2018 to further explore the Le Plaque target in addition to several other near-mill with the continued aim of delineating additional resources for the CIL project
› $5 million has also been located for 2018 for greenfield targets within the 100km corridor along the Ity mine
Ity Mine Drilling Targets
38
ITY MINE, CÔTE D’IVOIRE +1 Moz of Indicated resources added in 2017
DETAILS BY MINE & PROJECT
Tonnes Stacked and Grade
Q4-17 vs Q3-17 INSIGHTS: › Production remained flat as compared with Q3-17 as
higher stacking capacity and grades were offset by the anticipated lower recovery rate
‒ Ore tonnage extraction significantly increased due to the end of the rainy season, a lower strip ratio, and in response to greater stacking capabilities.
‒ Stacking increased following the successful commissioning of the new front-end and ADR plant, while Q3 2017 was impacted by downtime associated with the commissioning of the upgraded crushing circuit and decommissioning of the original circuit.
‒ Stacked grade increased in Q4-2017 due to high-grade ore from the Rambo deposit, while low grade stockpiles supplemented feed in Q3-2017.
‒ Recovery rates decreased as anticipated due to the stacking of greater amounts of transitional ore from the Rambo deposit.
› AISC decreased because of the higher grades, lower strip ratio, and lower stacking unit costs which offset the higher mining unit costs associated with extracting
› Following the completion of the optimization project in November, the AISC decreased below $850/oz in December and are expected to trend lower
39
KARMA MINE, BURKINA FASO Higher stacking capacity as the plant optimization was completed in Q4
Production and AISC
21koz21koz24koz
32koz29koz
$918/oz
Q2-2017 Q4-2016 Q4-2017 Q3-2017 Q1-2017
AISC, US$/oz Production, koz
$738/oz
1,026kt
720kt852kt
954kt853kt
1.06g/t
Q2-2017 Q1-2017 Q3-2017 Q4-2017 Q4-2016
Grade milled, g/t Au Tonnes stacked, kt
1.14g/t
$748/oz
1.07g/t
$755/oz
1.24g/t
$973oz
0.91g/t
DETAILS BY MINE & PROJECT
ADR Area - After ADR Area - Before
INSIGHTS
› Plant optimization work was successfully carried out during 2017. The newly installed front-end and ADR plant are expected to boost stacking capacity beyond the initial design capacity of 4Mtpa.
› Over 1Mt of stacking achieved in Q4-2017
› An on-site camp was also built
Optimization program completed and new front-end commissioned in Q4
Feed Preparation Circuit - After
KARMA MINE, BURKINA FASO
40
Feed Preparation Circuit - Before
DETAILS BY MINE & PROJECT
FULL YEAR 2017 INSIGHTS
› Production totalled near the lower-end of the 100-110koz guidance. The increased compared to 2016 is due to 2017 benefitting from a full year of production
› AISC came in above the guided $750-800/oz, mainly due to lower than expected production
2018 OUTLOOK
› Production is expected to increase to 105-115koz and AISC is expected to decrease to $780-830/oz as a result of the plant optimization work done in 2017
› Mining activities are expected to focus on the GG2 and Kao deposits
› Nearly $23 million of non-sustaining capital is planned for 2018, mainly for the Kao resettlement, pre-stripping at Kao and North Kao and a heap leach lift
41
KARMA MINE, BURKINA FASO Uplift expected in 2018 following optimization of plant
Production and AISC
2018 Production
105-115koz
2017 Production
98koz
Δ Recovery Rate
Δ Grade Processed
Δ Tonnes Stacked
2016 Production
62koz
$738/oz
$834/oz
$780-830/oz
DETAILS BY MINE & PROJECT
2017 2016
Tonnes ore mined, kt 3,862 1,879
Strip ratio (incl. waste cap) 2.96 3.66
Tonnes stacked, kt 3,552 2,089
Grade, g/t 1.07 1.16
Recovery rate, % 83% 90%
PRODUCTION, KOZ 98 62
AISC/OZ 834 738
Performance Indicators
Karma Site Map INSIGHTS › Karma’s 2017 exploration program amounted
to $2.5m with 41,520m of drilling
› Drilling at the North Kao deposit resulted in the delineation of 19koz of M&I resources and 51koz of Inferred resources
› Drilling at the Yabonsgo target resulted in the delineation of 65koz of Inferred resources, expected to be converted into Indicated resources in 2018
› 6koz of M&I resources and 6koz of Inferred resources were delineated at the Rambo West deposit
› A $4m exploration program totaling 32,000m is planned for 2018 North Kao and Yabonsgo, in addition to near-mill targets such as Rounga and the recently acquired Zanna exploration license
42
KARMA MINE, BURKINA FASO Successful near-mine drilling
DETAILS BY MINE & PROJECT
Tonnes and Grade Processed
Production and AISC
Q4-17 vs Q3-17 INSIGHTS: › Production decreased mainly due to lower average
head grades, in spite of overall improved mining operations
‒ Open pit production at Kofi B and Tabakoto North was significantly increased following the end of the rainy season, however at a lower grade as the higher-grade Kofi C deposit was depleted in Q3
‒ Underground tonnes mined increased compared to Q3-2017 which had been impacted by heavy rains which limited stope access and the national strike
‒ Processing activities continued to perform well, with throughput increased to partially offset lower grades
‒ The overall average grade decreased mainly due to lower open pit grades and the use of lower grade stockpiles
‒ The recovery rate decreased slightly due to lower grades milled and the compromise to increase the throughput rate
› AISC increased despite decreases across all unit costs per tonne (open pit and underground mining, processing, and G&A), which were offset by higher sustaining costs and lower grades
43
TABAKOTO MINE, MALI AISC increased despite lower unit costs due to lower grades
$1,441/oz
41koz
Q1-2017
43koz
Q4-2016
48koz
Q4-2017
28koz
Q3-2017
32koz
Q2-2017
Production, koz AISC, US$/oz
435kt392kt407kt405kt402kt
2.20 g/t
Q3-2017 Q4-2017 Q2-2017 Q1-2017 Q4-2016
Processed grades, g/t Au Tonnes Processed, kt
3.93 g/t
$1,119/oz
$975/oz $927/oz
3.50 g/t
$1,054/oz
3.32 g/t
$1,278/oz
2.64 g/t
DETAILS BY MINE & PROJECT
FULL YEAR 2017 INSIGHTS › Production was below the 150-160koz guidance
range, mainly due to a lower open pit grade following the depletion of the high-grade Kofi C deposit
› AISC finished above $950-990/oz guidance at $1,125/oz, mainly due to sub-optimal underground equipment availability and several national strikes
2018 OUTLOOK › Tabakoto is expected to produce 115-130koz in
2018 at an AISC of $1,200-$1,250/oz
› Tabakoto production from both the underground mines and open pits is expected to decrease mainly due to a decline in average grade
› AISC are forecast to increase due to the lower grade and a ~75% increase in sustaining capital expenditures
› In line with Endeavour’s portfolio management approach, a strategic assessment is expected to be made on Tabakoto during the course of the year
44
TABAKOTO MINE, MALI Strategic assessment expected by mid-2018
Production and AISC
2018 Production
115-130koz
2017 Production
144koz
Δ Recovery Rate Δ Grade Processed
Δ Tonnes Processed
2016 Production
163koz
$1,027/oz $1,148/oz
$1,200-1,250/oz
DETAILS BY MINE & PROJECT
2017 2016
Tonnes ore mined, kt 647 649
OP strip ratio (incl. waste cap) 8.89 9.94
UG tonnes ore mined, kt 756 944
Tonnes milled, kt 1,640 1,588
Grade, g/t 2.90 3.36
Recovery rate, % 94% 95%
PRODUCTION, KOZ 144 163
AISC/OZ 1,148 1,027
Performance Indicators
INSIGHTS
› Tabakoto’s 2017 exploration program amounted to $8m, totaling 56,200m focused on both underground resource delineation and testing near-mill open pit targets
› Near-mill exploration confirmed the mineralization at both the Kreko and Fougala targets
› Underground exploration confirmed the discovery of new vein sets that will be further delineated in 2018
› A $6m exploration program totaling ~45,000m is planned for 2018
› 2018 exploration will focus on near-mill targets and greenfield targets with the Kofi permit and new permits acquired in 2017 located immediately north of Kofi and on-trend with Randgold’s Loulo deposits
Tabakoto Site Map
45
TABAKOTO MINE, MALI Exploration potential both near-mill and for greenfield targets
DETAILS BY MINE & PROJECT
46
KALANA PROJECT, MALI Intensive exploration program underway
INSIGHTS
› For 2018, a $5m exploration program is planned
› The objective is to complete 45,000m in H1-2018 to provide by mid-year an updated resource expected to form the basis for the feasibility study
› Exploration is focused on infill and extension drilling the Kalana deposit, as well as further drilling the previously discovered Kalanako deposit
› Additional exploration is also expected to take place on the recently acquired Fougadian license
DETAILS BY MINE & PROJECT
FULL YEAR 2017 IN REVIEW 1
APPENDIX 5
DETAILS BY MINE AND PROJECT 3 CONCLUSION 4
FINANCIAL SUMMARY 2
48
UPCOMING CATALYSTS
Immediate Cashflow from Production
Near-Term Growth from Projects
Long-Term Upside
from Exploration
2018 OUTLOOK:
› Gold production guidance increased to 670-720koz with Houndé
› AISC guidance to decrease to below $840-890/oz with Houndé
› HOUNDÉ: Contribution to Group free cash flow generation started in Q4-2017
› ITY CIL PROJECT: Construction launched in September with first gold pour expected by mid-2019
› KALANA PROJECT: Optimization study expected by end of 2018
› DELIVERY OF 5-YEAR EXPLORATION STRATEGY: Target of finding 10-15Moz of Indicated Resources
› HOUNDÉ: Results following drilling re-commencement in 2017
› KARMA: Resource increase on Rambo West and Yabonsgo targets
› ITY’S LE PLAQUE TARGET: Maiden resource
› AGBAOU: Completion of drilling program
› GREENFIELD: First exploration results on new properties
CONCLUSION
PRODUCTION AND AISC PROFILE
49
$869/oz
$922/oz
$1,010/oz
$1,317/oz
2022
+900koz
462koz
2013
317koz
2014 2015
517koz
800-900koz
2021 2019 2020 2018 2016 2017
584koz
+900koz
800-900koz
Tabakoto, Mali
Ity (Heap Leach), Côte d’Ivoire
Agbaou, Côte d’Ivoire
Houndé, Burkina Faso
Karma, Burkina Faso
Group AISC
Ity (CIL), Côte d’Ivoire
Kalana, Mali
Youga, Burkina Faso
Nzema, Ghana
+800koz Annual production
10+ year Mine life
≤800$/oz All-in Sustaining Cost
STRATEGIC OBJECTIVE
For 2019
663koz
$869/oz $840-890/oz
670-720koz
CONCLUSION
Key objective is to reduce the group’s AISC and extend mine lives
FULL YEAR 2017 IN REVIEW 1
APPENDIX 5
DETAILS BY MINE AND PROJECT 3 CONCLUSION 4
FINANCIAL SUMMARY 2
1,000
1,100
1,200
1,300
1,400
1,500
1,600
Gold Revenue Protection Program : Gold Option Collar Strategy › Gold Option Contracts aim to increase the certainty of the free cash flow during the construction period of the Ity CIL
› Gold Option Contracts applied to 400koz, representing ~40% of Endeavour’s expected production over 15 months, (Feb 2018-Apr 2019)
‒ Protect 40% of production below $1,300/oz
‒ Fully exposed between 1,300 and $1,500/oz
‒ Upside beyond $1,500/oz on 60% of production
› Once the Gold Option Contracts program ends, Endeavour will return to a position where its gold production is fully exposed to spot gold prices
51
GOLD REVENUE PROTECTION PROGRAM
Gold price in US$/oz
Collar “bought puts” strike
Collar “written calls” strike
Upside on 60% of production
Upside on 100% of production
Protection on 40% of production
Increased certainty of the FCF during the construction period of the Ity CIL
APPENDIX
› PRINCIPLE AMOUNT: $500m with intent to decrease to $350m
› INTEREST RATE: ‒ LIBOR plus 2.95% to 3.95% on drawn portion ‒ 1.03% commitment fees on undrawn portion
› TERM: September 2021
› REPAYMENT: Single bullet payment on the maturity date, can be repaid at any time without penalty
› BANKING POOL:
› PRINCIPLE AMOUNT: $330m
› INTEREST RATE: 3% annual coupon
› TERM: February 2023
› CONVERSION PRICE: CAD29.47 (US$23.90)
› REPAYMENT: Endeavour has the option to settle its obligation through the payment of cash, the delivery of shares, or any combination of cash and shares
› DILUTION IMPACT: Maximum amount of underlying shares of 13.8m shares, representing between 0% and 12.9% dilution based on Endeavour’s ability to repay in cash
› ADVANTAGES OF THE CONVERT: ‒ Reduces its overall financing costs and de-risks LIBOR exposure ‒ Extends its debt maturity profile compared to RCF ‒ Increases liquidity by $180m to accelerate growth project
pipeline (Kalana) ‒ Limited dilution with option to settle in cash
DIVERSIFIED BORROWING SOURCES
52
Well funded to push forward our growth projects
REVOLVING CREDIT FACILITY (RCF) CONVERTIBLE NOTES
APPENDIX
PRODUCTION AND COST DETAILS BY MINE BY QUARTER
1) Includes waste capitalized 53 53
(on a 100% basis) AGBAOU NZEMA TABAKOTO ITY KARMA HOUNDE
Unit Q4-2017 Q3-2017 Q4-2016 Q4-2017 Q3-2017 Q4-2016 Q4-2017 Q3-2017 Q4-2016 Q4-2017 Q3-2017 Q4-2016 Q4-2017 Q3-2017 Q4-2016 Q4-2017
Physicals
Total tonnes mined – OP1 000t 7,216 7,576 6,517 1,433 1,333 2,885 1,864 1,098 1,593 1,679 1,191 1,472 3,716 3,637 4,023 9,135
Total ore tonnes – OP 000t 826 824 673 370 310 288 165 108 195 402 305 316 1,184 593 783 663
Open pit strip ratio1 W:t ore 7.74 8.19 8.67 2.88 3.30 9.02 10.33 9.13 7.17 3.18 2.90 3.66 2.14 5.13 4.14 13.79
Total tonnes mined – UG 000t - - - - - - 207 226 324 - - - - - - -
Total ore tonnes – UG 000t - - - - - - 157 179 253 - - - - - - -
Total tonnes milled 000t 760 770 721 378 368 428 436 392 402 372 312 295 1,026 720 853 813
Average gold grade milled g/t 1.85 1.96 2.46 2.13 3.39 2.20 2.20 2.64 3.93 1.86 1.58 2.00 1.06 0.91 1.14 2.75
Recovery rate % 93% 93% 97% 92% 92% 82% 92% 93% 95% 78% 74% 90% 77% 87% 90% 95%
Gold ounces produced oz 43,439 46,326 57,061 24,847 37,440 23,874 28,117 31,602 47,884 17,287 11,727 17,480 21,102 21,005 29,112 68,754
Gold sold oz 41,490 46,675 56,936 23,366 38,570 22,033 27,741 31,693 47,053 16,316 11,799 15,038 20,574 20,622 28,743 60,990
Unit Cost Analysis
Mining costs - Open pit $/t mined 2.68 2.62 2.38 5.49 6.20 4.21 2.99 3.91 4.07 3.27 5.16 2.44 1.75 1.75 1.32 1.33
Mining costs – Underground $/t mined - - - - - - 74.90 75.79 58.80 - - - - - - -
Processing and maintenance $/t milled 8.07 7.08 6.26 16.08 17.00 14.08 20.22 20.83 23.50 13.85 14.75 13.13 8.15 11.25 7.76 6.81
Site G&A $/t milled 4.32 3.90 4.66 7.46 7.54 6.61 11.39 12.13 14.32 9.47 8.56 15.11 4.14 4.85 9.66 3.38
Cash Cost Details
Mining costs - Open pit1 $000s 19,312 19,829 15,537 7,867 8,273 12,151 5,564 4,295 6,479 5,491 6,142 3,585 6,512 6,378 5,306 9,296
Mining costs -Underground $000s - - - - - - 15,504 17,129 19,050 - - - - - - -
Processing and maintenance $000s 6,130 5,451 4,513 6,077 6,257 6,026 8,818 8,165 9,448 5,152 4,601 3,874 8,365 8,097 6,616 5,534
Site G&A $000s 3,281 3,006 3,362 2,820 2,776 2,831 4,965 4,753 5,757 3,522 2,672 4,458 4,250 3,492 8,241 2,745
Purchased ore at Nzema $000s - - - 2,246 4,459 4,093 - - - - - - - - -
Capitalized waste $000s (3,288) (1,092) (951) (163) - (5,671) (3,665) (2,527) (4,586) (829) (541) (600) (754) (1,491) (359) (3,995)
Inventory adjustments and other $000s (247) (1,622) 2,050 (905) 1,359 1,638 1,268 3,165 22 (2,612) (1,863) 115 (1,948) (260) (906) (1,754)
Cash costs for ounces sold $000s 25,188 25,571 24,511 17,942 23,124 21,068 32,454 34,980 36,170 10,724 11,011 11,432 16,425 16,216 18,898 11,826
Royalties $000s 2,292 2,080 2,340 1,785 2,800 1,464 2,118 2,426 3,384 786 697 633 1,360 2,068 1,953 4,596
Sustaining capital $000s 1,154 2,140 3,434 253 1,258 2,106 4,583 3,090 4,041 2,665 1,752 378 1,095 1,775 359 3,995
Cash cost per ounce sold $/oz 607 548 431 768 600 956 1,170 1,104 769 657 933 760 798 786 657 194
Mine-level AISC Per Ounce Sold $/oz 690 638 532 855 705 1,118 1,411 1,278 927 869 1,141 827 918 973 738 335
APPENDIX
(on a 100% basis)
AGBAOU NZEMA TABAKOTO ITY KARMA HOUNDE
Unit Dec 31,
2017
Dec 31,
2016
Dec 31,
2017
Dec 31,
2016
Dec 31,
2017
Dec 31,
2016
Dec 31,
2017
Dec 31,
2016
Dec 31,
2017
Dec 31,
2016
Dec 31,
2017
Physicals
Total tonnes mined – OP1 000t 28,100 25,382 6,874 9,295 6,400 7,098 6,647 6,102 15,312 8,753 16,049
Total ore tonnes – OP 000t 2,983 2,797 1,428 1,000 647 649 1,410 1,186 3,862 1,879 1,222
Open pit strip ratio1 W:t ore 8.42 8.07 3.81 8.30 8.89 9.94 3.71 4.15 2.96 3.66 13.13
Total tonnes mined – UG 000t - - - - 997 1,301 - - - - -
Total ore tonnes – UG 000t - - - - 756 944 - - - - -
Total tonnes milled 000t 2,906 2,827 1,499 1,761 1,640 1,588 1,194 1,173 3,552 2,089 813
Average gold grade milled g/t 2.02 2.27 2.58 1.87 2.90 3.36 1.85 2.20 1.07 1.16 2.75
Recovery rate % 94% 97% 92% 83% 94% 95% 83% 93% 83% 90% 95%
Gold ounces produced oz 177,191 195,505 115,621 87,710 143,995 162,817 59,026 75,867 97,982 61,813 68,754
Gold sold oz 174,868 196,316 117,242 85,495 144,636 161,803 59,688 73,332 96,935 28,743 60,990
Unit Cost Analysis
Mining costs - Open pit $/t mined 2.54 2.22 5.69 4.64 3.46 3.60 3.21 2.88 1.82 0.61 1.33
Mining costs – Underground $/t mined - - - - 66.24 51.04 - - - - -
Processing and maintenance $/t milled 7.42 6.60 16.10 13.16 20.64 21.93 14.88 14.71 8.77 3.17 6.81
Site G&A $/t milled 4.15 4.66 6.68 6.57 11.05 12.80 9.40 11.43 4.29 3.94 3.38
Cash Cost Details
Mining costs - Open pit1 $000s 71,375 56,420 39,117 43,109 22,140 25,586 21,306 17,583 27,903 5,306 9,296
Mining costs -Underground $000s - - - - 66,045 66,406 - - - - -
Processing and maintenance $000s 21,556 18,656 24,128 23,177 33,348 34,825 17,771 17,256 31,161 6,616 5,534
Site G&A $000s 12,050 13,175 10,020 11,577 18,115 20,325 11,219 13,413 15,252 8,241 2,745
Purchased ore at Nzema $000s - - 15,433 21,255 - - - - - -
Capitalized waste $000s (5,248) (5,476) (2,159) (16,202) (16,260) (17,593) (3,205) (3,749) (2,724) (359) (3,995)
Inventory adjustments and other $000s (2,333) 1,702 771 7,885 10,492 3,357 (3,335) (53) (2,207) (906) (1,754)
Cash costs for ounces sold $000s 97,400 84,477 87,310 90,801 134,380 132,906 43,757 44,450 69,385 18,898 11,826
Royalties $000s 8,186 8,871 8,515 5,662 10,847 11,997 2,896 3,316 7,593 1,953 4,596
Sustaining capital $000s 7,555 11,407 4,832 3,318 20,768 21,193 7,428 7,648 3,834 359 3,995
Cash cost per ounce sold $/oz 557 430 745 1,062 929 821 733 606 716 657 194
Mine-level AISC Per Ounce Sold $/oz 647 534 859 1,167 1,148 1,027 906 756 834 738 335
PRODUCTION AND COST DETAILS BY MINE YEAR TO DATE
1) Includes waste capitalized 54 54
APPENDIX
RESERVES AND RESOURCES
Full details and notes of reserves and resources can be found under the ‘Reserves and Resources’ section on the Company’s website at www.endeavourmining.com Ity reserves and resources are stated as per updated 2017 figures, published in September 20, 2017 press release.
55
On a 100% basis Resources shown inclusive of Reserves
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 13 2.56 1,080
Probable Reserves 146 1.71 8,027 P&P Reserves 159 1.78 9,106 Measured Resource (incl reserves) 23 3.17 2,353
Indicated Resources (incl reserves) 224 1.74 12,492
M&I Resources (including Reserves) 247 1.87 14,855
Inferred Resources 53 1.79 3,074
Group Consolidated Total
Resources shown inclusive of Reserves. On a 100% basis
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 0.3 1.41 14 Probable Reserves 58.6 1.59 3,001 P&P Reserves 58.9 1.59 3,016 Measured Resource (incl reserves) 0.7 0.63 15 Indicated Resources (incl reserves) 73.1 1.57 3,680 M&I Resources (including Reserves) 73.9 1.56 3,695 Inferred Resources 18.7 1.31 785
Ity Mine & CIL Project
Resources shown inclusive of Reserves. On a 100% basis
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 5.1 3.00 492 Probable Reserves 16.6 2.76 1,472 P&P Reserves 21.7 2.81 1,964 Measured Resource (incl reserves) 9.5 4.19 1,280 Indicated Resources (incl reserves) 14.2 3.96 1,810 M&I Resources (including Reserves) 23.7 4.06 3,100 Inferred Resources 1.7 4.39 240
Kalana Project
Resources shown inclusive of Reserves. On a 100% basis
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 2.4 3.32 251 Probable Reserves 2.4 3.40 266 P&P Reserves 4.8 3.36 517 Measured Resource (incl reserves) 7.4 2.99 715 Indicated Resources (incl reserves) 12.4 3.03 1,211 M&I Resources (including Reserves) 19.9 3.01 1,925 Inferred Resources 7.4 3.40 810
Tabakoto Mine
Resources shown inclusive of Reserves. On a 100% basis
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 3.6 2.25 263 Probable Reserves 26.5 1.98 1,693 P&P Reserves 30.2 2.02 1,957 Measured Resource (incl reserves) 3.6 2.40 281 Indicated Resources (incl reserves) 33.7 2.01 2,178 M&I Resources (including Reserves) 37.3 2.05 2,459 Inferred Resources 3.2 2.64 275
Houndé Mine
Resources shown inclusive of Reserves. On a 100% basis
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 1.0 1.41 44 Probable Reserves 7.9 2.45 624 P&P Reserves 8.9 2.34 668 Measured Resource (incl reserves) 1.0 1.43 47 Indicated Resources (incl reserves) 9.3 2.54 757 M&I Resources (including Reserves) 10.3 2.43 804 Inferred Resources 1.0 1.74 54
Agbaou Mine Resources shown inclusive of Reserves. On a 100% basis
Tonnage (Mt)
Grade (Au g/t)
Content (Au koz)
Proven Reserves 0.7 0.63 15 Probable Reserves 33.8 0.89 971 P&P Reserves 34.6 0.89 986 Measured Resource (incl reserves) 0.7 0.63 15 Indicated Resources (incl reserves) 81.0 1.10 2,856 M&I Resources (including Reserves) 81.8 1.09 2,871 Inferred Resources 21.4 1.32 909
Karma Mine
Mine/Project1 Agbaou Kalana Tabakoto
Ity Karma2 Houndé UG Open Pit
Reserves Au price 1,350 1,100 1,250 1,250 1,250 1,300 1,300
Resources Au price 1,500 1,400 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 resources has a gold price of $1,500/oz
Notes :
APPENDIX
As of December 31, 2017