Endeavour Management Presentation June 2014 GOLD PRODUCER WEST AFRICA CASH FLOW
Disclaimer & Forward Looking Statements 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 forwardlooking 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. GOLD PRODUCER WEST AFRICA CASH FLOW 2
Endeavour in West Africa West African gold producer with four operating mines producing between 400,000 and 440,000 oz in 2014 Potential to add ~180,000 oz/yr by advancing Houndé project in Burkina Faso now in permitting Reserves of 4 million ounces and Measured and Indicated Resources over 6 million ounces Workforce of over 3,500 in four countries Focused on developing our local workforce and contributing to the communities we operate in Strong commitment to Safety, Health and the Environment Endeavour has expertise in exploration, project development, construction and operations GOLD PRODUCER WEST AFRICA CASH FLOW 3
West African Projects Multiple operations, both open-pit and underground Accra-based operations management with: COO and senior operations team Group exploration CSR, HSE and HR Purchasing and group inventory GOLD PRODUCER WEST AFRICA CASH FLOW 4
Company Profile Share Price (June 23, 2014) Recent Share Price Market Cap Av. daily shares traded for May Canada TSE:EDV Australia ASX:EVR CDN$0.85 AUD$0.80 CDN$351 million 1.3 million 0.1 million Capitalization Summary (May 31, 2014) Shares in Issue 413,143,668 Options 24,977,544 Fully Diluted 438,121,212 Shareholder Base Institutions 60-65% Retail 25-35% Insiders/Management 3% GOLD PRODUCER WEST AFRICA CASH FLOW 5
Growth Track Record - All in West Africa 2009 2010 2011 2012 2013 2014e Focus Selecting targets Growth through acquisitions Optimization and building Agbaou Ready for new opportunities Agbaou Tabakoto Nzema Youga Production Growth (ozs) 2009 2010 2011 2012 2013 2014 0 82,000 180,000 310,000 324,000 >400,000 GOLD PRODUCER WEST AFRICA CASH FLOW 6
Côte d Ivoire Agbaou Mine Agbaou ownership is 85% Endeavour, 10% government of Côte d Ivoire, 5% SODEMI Acquired through takeover of Etruscan Resources in 2010 Located 200 km from the port city of Abidjan Construction started August, 2012 First gold pour was November 29, 2013 Completed ahead of schedule and under budget Invested $150 million in mine construction Fourth gold mine in Côte d Ivoire (others are Tongon, Bonikro, Ity) Agbaou Abidjan http://www.ginkgomaps.com/maps_cote_d_ivoire.html GOLD PRODUCER WEST AFRICA CASH FLOW 7
Agbaou Mine Strong Performer Quick and successful ramp up in late 2013 Started full commercial production January, 2014 Performing above plan: Higher than planned processed grades (approx. 5% above plan) Mill throughput averaged 5,400 tpd over the two month period, above design capacity Good recoveries (97% during Q1; forecast 93% longterm) Truck Fleet at Agbaou Average annual production of 100,000 ozs Strong cash flow generator due to: Access to low cost grid power ($0.085/kWh) Free dig ore in first few years Demonstrating strong, sustained performance: Produced 24,086 oz in Q1 Mining on North Pit of Agbaou GOLD PRODUCER WEST AFRICA CASH FLOW 8
Agbaou Employment 555 Personnel On-site; including 340 contractors 94% of Work force is Ivorian Creation of indirect jobs estimated at 10+ indirect jobs per direct job Training in safety, machine and equipment operating, maintenance and administration Excellent safety record Note: These statistics reflect current employment levels and will change over time GOLD PRODUCER WEST AFRICA CASH FLOW 9
Ghana Nzema Mine Endeavour s operation centre is based in Accra and services the region Nzema mine ownership is 90% Endeavour, 10% government of Ghana Nzema was acquired during takeover of Adamus Resources in 2011 Located 280 km from Accra, and 70 km from Takoradi Accra Nzema http://www.ginkgomaps.com/maps_ghana.html GOLD PRODUCER WEST AFRICA CASH FLOW 10
Nzema Mine Mine was started in April 2011 Average annual production of over 100,000 ozs Demonstrating strong, sustained performance: Produced 28,847 oz in Q1 Workforce: 682, including 455 contractors; only 3 expats Adamus Pit at Nzema Nzema Process Plant GOLD PRODUCER WEST AFRICA CASH FLOW 11
Mali Tabakoto Mine Tabakoto ownership is 80% Endeavour, 20% government in Mali Located 360 km west of Bamako; within 17 km of the Senegal border Tabakoto acquired through takeover of Avion Gold Endeavour s investments include: Expanded plant capacity to 4,000 tpd Changed to owner mining in Tabakoto underground Developing Segala underground mine Kofi permitted and contributes to Tabakoto production schedule Tabakoto http://www.ginkgomaps.com/maps_mali.html GOLD PRODUCER WEST AFRICA CASH FLOW 12
Tabakoto Mine Complex Endeavour continues to invest in mine development at Tabakoto and Segala underground mines Transition to owner mining at Tabakoto is progressing well: Owner mining commenced effective April 1 st All underground activities now being completed by Endeavour employees Retained over 300 employees from the contractor for high level of workforce continuity, and focus on training Malian workforce Tabakoto Underground Mine Longitudinal Section Facing North East Workforce of 1896; including 558 contractors Production is transitioning from: Q2 2014 H2 2014 2015 o Tabakoto Underground o Tabakoto Underground o Tabakoto Underground o Djambaye II Open Pit o Segala Underground o Segala Underground o Stockpiles o Djambaye II Open Pit o Kofi C Open Pit GOLD PRODUCER WEST AFRICA CASH FLOW 13
Segala Mine Segala underground mine now contributing to Tabakoto mill feed At June 18, 2014: Decline face at 203 metres below surface 1,291 metres in the decline 3,751 metres of lateral development on four levels to provide access to the ore body Levels access every 20 metres vertically Main ore body is 20 metres wide on average Segala 2014 Development Plan Long hole transverse method with Cemented Rock Fill (CRF) will be used to mine Segala GOLD PRODUCER WEST AFRICA CASH FLOW 14
Kofi Mine Permit Received Kofi Property Mining permit area includes 8 known deposits that so far comprise resources of Indicated 0.6 million ozs plus Inferred 0.6 million ozs Kofi C deposit reserves have already been added to the Tabakoto production schedule starting in 2015 2P Reserve 1 of 1.55 million tonnes at 4.3 g/t containing 213,000 ozs 38 km haulage to Tabakoto plant Work continues on conversion of resources to reserves for the other Kofi deposits along the haul route Excellent exploration potential on Tabakoto property and on the Kofi Property, especially on continuation of the Loulo trend 1 See Appendix for details on Tabakoto-Kofi Resources and Reserves GOLD PRODUCER WEST AFRICA CASH FLOW 15
Burkina Faso Youga Mine and Houndé Project Youga mine ownership is 90% Endeavour, 10% government of Burkina Faso Acquired through takeover of Etruscan in 2010 Located 200 km from Ouagadougou - 3 hours drive Also have the Hounde Project; acquired in 2012 and is now in permitting Houndé Youga http://www.ginkgomaps.com/maps_burkina_faso.html GOLD PRODUCER WEST AFRICA CASH FLOW 16
Youga Mine Operations commenced in March 2008 and 461Kozs have been produced to end of 2013 Produced 19,867 in Q1 Low sustaining capital requirements Good cash flow generator Workforce of 715 including 339 contractors; with 22 expats GOLD PRODUCER WEST AFRICA CASH FLOW 17
Houndé Project In Permitting Feasibility study completed in 2013 2P Reserve 1 of 25 million tonnes at 1.95 g/t containing 1.55 million ozs 3.0 Mtpa SAG/Ball mill and Gravity/CIL 180,000 ozs per year over 8 years AISC/oz of less than $800/oz Upfront capital of $315M including owner mining fleet IRR 22.4% at $1,300/oz (post tax) Submitted for permitting in Nov 2013 Public consultation meetings completed Projects Team is now reviewing and optimizing based on recent Agbaou construction experience Houndé FS General Site Layout Mine, Waste Dumps, and Plant Location 1 See Appendix for details on Houndé Reserves GOLD PRODUCER WEST AFRICA CASH FLOW 18
Houndé Project Exploration Potential Houndé Property Targets and Trends Exploration Team developed a work program based on prior drilling which could enhance the resource base Mineralized areas are highlighted by Gold in soil geochemistry Geophysical signatures Structural trends Known targets include Parallel trends close to the Vindaloo deposits Douhoun, Grand Espoir, Bouéré and Kari Pomp to the northwest Kopoi to the northeast Vindaloo Far South, Soukou and Kari Sud zones to the south GOLD PRODUCER WEST AFRICA CASH FLOW 19
Summary 2014: focus on effectively managing our 4 mines Achieve production and cost guidance Remain focused on safety and respect for the environment Continue to develop our local workforce and contribute to the communities in which we operate Preparing to build Houndé Project Endeavour is an excellent value proposition for investors GOLD PRODUCER WEST AFRICA CASH FLOW 20
Neil Woodyer CEO nwoodyer@endeavourmining.com +377 97 98 7161 Richard Thomas EVP Technical Services rthomas@edv-ops.com +377 97 98 7160 Doug Reddy SVP Business Development dreddy@endeavourmining.com +1 604 609 6114 GOLD PRODUCER WEST AFRICA CASH FLOW 21
Tabakoto Gold Mine, Mali Tabakoto Gold Mine (80% Endeavour, 20% Mali) Kofi (84.4% Endeavour, 5.6% third-party, 10% Mali) Resources (incl. of Reserves, 100%) Reserves (100%) Processing Rate Mining Type M&I: 17.2Mt @ 3.0 g/t for 1.679Mozs (~52% U/G @ 4.7 g/t) Inferred: 19.0Mt @ 2.6 g/t for 1.603Mozs (~59% U/G @ 4.6 g/t) 6.9Mt @ 3.6 g/t for 0.794Mozs (~60% U/G @ 4.1 g/t) 1.4 Mtpa Gravity/CIL Plan Tabakoto (UG), Segala (UG) & Djambaye II Open Pit Mine Met. Recovery 92% - 95% Production Cash Costs ($/oz) 2012 110,301 ozs 2013 125,231 ozs 2014 Q1 33,472 ozs 2014e 140,000 to 155,000 ozs 2013 - $972 2014 Q1 - $1,157 2014e - $790 to $840 Royalty 6% Corporate Tax 30% GOLD PRODUCER WEST AFRICA CASH FLOW 22
Agbaou Gold Mine, Côte d Ivoire Agbaou Gold Mine (85% Endeavour, 10% Côte d Ivoire, 5% SODEMI) Resources (incl. of Reserves, 100%) M&I: 15.0Mt @ 2.3 g/t for 1.100Moz Inferred: 2.2Mt @ 2.3 g/t for 0.165Moz Reserves (100%) 11.4Mt @ 2.4 g/t for 0.880Moz Strip Ratio 7.9 to 1 Processing Rate Up to 1.6 Mtpa Gravity/CIL plant Met. Recovery 92.5% Mining Type Production Cash Costs ($/oz) Expected Mine Life Royalty Corporate Tax Open Pit Contractor Mining (BCM) 2013 6,132 ozs (during commissioning) 2014 Q1 24,086 ozs 2014e 85,000 to 95,000 ozs 2014 Q1 $594 2014e $730 to $780 8 years from current Reserves 3% - 5% sliding scale 25% with 5 year corporate tax holiday GOLD PRODUCER WEST AFRICA CASH FLOW 23
Nzema Gold Mine, Ghana Nzema Gold Mine (90% Endeavour, 10% Ghana) Resources (incl. of Reserves, 100%) Reserves (100%) M&I: 38.4Mt @ 1.4 g/t for 1.693Moz Inferred: 7.7Mt @ 1.3 g/t for 0.313Moz 9.9Mt @ 2.1 g/t for 0.602Moz Strip Ratio 3 to 1 (2013) Processing Rate Met. Recovery Production Cash Costs ($/oz) Expected Mine Life Royalty 1.6 to 2.1Mtpa Gravity/CIL plant 91% to 75% depending on ore type 2012 109,447 ozs 2013 103,464 ozs 2014 Q1 28,487 ozs 2014e 110,000 to 120,000 ozs 2013 - $917 2014 Q1 - $890 2014e $780 to $830 6 years from current Reserves 5% (+1% third-party at Adamus pits) Corporate Tax 35% GOLD PRODUCER WEST AFRICA CASH FLOW 24
Youga Gold Mine, Burkina Faso Youga Gold Mine (90% Endeavour; 10% Burkina Faso) Resources (incl. of Reserves, 100%) Reserves (100%) Youga & Ouaré M&I: 15.5Mt @ 1.6g/t for 0.805Moz Inferred: 2.2Mt @ 1.4g/t for 0.099Moz 4.0Mt @ 2.0g/t for 0.265Moz Strip Ratio 4.3 to 1 (2013) Processing Rate 1.0Mtpa Gravity/CIL plant Met. Recovery 94% Production Cash Costs ($/oz) Expected Mine Life Royalty 2012 91,030 ozs 2013 89,448 ozs 2014 Q1 19,867 ozs 2014e 65,000 to 70,000 ozs 2013 - $730 2014 Q1 - $680 2014e $790 to $840 2 years at current grade (with potential for 5+ years with satellite deposits and Ouaré) 3% - 5% sliding scale Corporate Tax 17.5% GOLD PRODUCER WEST AFRICA CASH FLOW 25