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CREATING A PREMIER AFRICAN GOLD PRODUCER
0
Corporate Presentation December 2016
1
Disclaimer & Forward Looking Statements
CREATING A PREMIER AFRICAN GOLD PRODUCER
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.
Endeavour Mining Overview
2
Immediate Cashflow from 5 producing mines at low AISC
– 2015 production: 517 koz
– 2016E production: 575-610 koz
– 2015 AISC: US$922/oz
– 2016E AISC: US$870 - 920/oz
Near-Term Growth from 2 attractive projects
– Houndé Project construction started in April 2016, first gold pour expected in Q4-2017
– Ity CIL Project feasibility study demonstrated potential for Ity to become another flagship asset
Long-Term Upside from Exploration – Strategic review outlined potential to find 10-15Moz over the next
5 years at a discover cost of <$15/oz
– Potential to significantly extend mine lives to beyond 10 years
CREATING A PREMIER AFRICAN GOLD PRODUCER
0
5
10
15
20
25
30
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
January-16 February-16 March-16 April-16 May-16 June-16 July-16 August-16 September-16 October-16 November-16
Volume (shares) EDV share price, C$
Share Price Performance
Current shareholder distribution and geographic mix
Ticker TSX:EDV
Shares in Issue 93.4 m
Fully Diluted 95.8 m
Share price C$23.26
Market cap US$1,655m
Net Debt US$14m
Company Profile
La Mancha
29%
Retail
7%
Management
1%
Institutional
63%
3
Board Members
CREATING A PREMIER AFRICAN GOLD PRODUCER
Wayne McManus Non-executive Director
Ian Henderson Non-executive Director
Sebastien de Montessus CEO & President & Director
Naguib Sawiris Non-executive Director
Michael Beckett Chairman, Non-executive Director
Ian Cockerill Non-executive Director
As of November 7th 2016
Olivier Colom Non-executive Director
Livia Mahler Non-executive Director
Sebastien de Montessus
CEO & President & Director
4 CREATING A PREMIER AFRICAN GOLD PRODUCER
Safety First
Lean and Efficient
Operations
Hands-On
Management
Cash flow driven
Adriaan “Attie” Roux
COO
Vincent Benoit
EVP CFO & Corporate Development
Patrick Bouisset
EVP Exploration & Growth
Jeremy Langford
EVP Construction Services
Morgan Carroll
EVP Corporate Finance & General Counsel
Henri de Joux
EVP People & Public Affairs
MANAGEMENT FOCUS LEAN EXECUTIVE MANAGEMENT TEAM
Hands-on Management Model
CREATING A PREMIER AFRICAN GOLD PRODUCER 5
Strategic Milestones for 2018-2020
+ 900 koz
ANNUAL PRODUCTION
≤ 800$/oz ALL IN CASH COST
10+ year MINE LIFE IN OUR CORE ASSETS
$1,137
$1,010
$922
2010 2011 2012 2013 2014 2015 2016 6+6 2017 2018 2019
Youga, Burkina Faso Nzema, Ghana Tabakoto, Mali
Agbaou, Côte d'Ivoire Ity (Heap Leach), Côte d'Ivoire Karma, Burkina Faso (incl. pre-production)
Houndé, Burkina Faso Ity (CIL), Côte d'Ivoire Group AISC
$870-920
83koz
167koz
220koz
317koz
462koz
517koz
+900koz
575-610koz
<$800
Assumes Ity construction starts H1-2017 and first gold production in 2019 with Heap Leach operation ending once CIL starts
Ity CIL
CLEAR PATH TO BUILD A +900KOZ PRODUCER AT ≤ $800/OZ AISC
2016
STRATEGIC OBJECTIVE
Create a Premier African Gold Producer with Low-cost and Long Life Mines
20 8 7
900
19 21
750
22 6
600
650
700
5
800
850
4
950
1,000
1,050
1,100
18 13 14 15 16 17 12 11 10 9
Average mine life, years
AISC, $/oz
Endeavour 2016E
Endeavour 2015A
Teranga
Semafo
Resolute
Randgold
Perseus
Nordgold
Newmont Newcrest
Kinross
IAMGOLD
Golden Star
Gold Fields
AngloGold Ashanti
4 Strategic Levers
1 OPERATIONAL EXCELLENCE
PROJECT DEVELOPMENT
UNLOCK EXPLORATION VALUE
PORTFOLIO & BALANCE SHEET MANAGEMENT 2 3 4
Benchmark of West-African Producers
Bubble size represents production
Source: UBS Research, based on 2015A only West-Africa production. Mine life excludes expansion and development projects such as Kinross’ Tasiast Phase 2 and Resolute’s UG project
6 CREATING A PREMIER AFRICAN GOLD PRODUCER
Endeavour (output of strategic
exploration review)
1) Increased Production 2) Decreased All-in Sustaining Costs
3) Increased Cash Generation 4) Low Lost Time Injury Frequency Rate
2013A
324koz
2016 Guidance
575-610koz
2015A
517koz
2014A
466koz
Production, on a 100% basis in koz
$35m
2015A 2014A
$135m
$85m
2016 Guidance 2013A
$28m
$1,137/oz
2015A
$922/oz
2014A
$1,010/oz
$870-920/oz
2016 Guidance 2013A
AISC, in US$/oz
US$1,392/oz US$1,264/oz US$1,157/oz HI : US$1,150/oz H2: US$1,250/oz
Free cash flow before tax, WC & financing costs, in US$m (realized gold price)
7 CREATING A PREMIER AFRICAN GOLD PRODUCER
Excludes Agbaou, Houndé and Karma capex
OPERATIONAL EXCELLENCE
Proven track record of operating in West-Africa 1
0.27
0.73
First 9-months 2016
2013 2015
1.73
0.76
2014
Lost Time Injury Frequency Rate (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period)
Q3- 2016 First 9 months
of 2016 2016
Guidance Comment
Production (incl Karma)
146koz 416koz 575 - 610koz Q3: +6% over Q2-2016
Growth acceleration expected in Q4
Production on track to be within guidance
All-in Sustaining Costs $898/oz $896/oz $870-920/oz Continued decrease achieved in Q3 with
success of cost reduction programs
Low AISC trend expected to continue in Q4
Free Cash Flow (before tax, WC , financing costs, Houndé and Karma)
$41m $100m $135m1
Strong cash generation in Q3
Q4 to benefit from stronger production and start of Karma commercial production
Well on-track to meet Cash Flow guidance
Net Debt (end of period)
$14m n/a Decreased from a net debt position of
$242m at the end of September 2015
8 CREATING A PREMIER AFRICAN GOLD PRODUCER
1 Based on H1 realized gold price of $1,225/oz and $1,250/oz for H2
OPERATIONAL EXCELLENCE Group level performance in line with full year guidance 1
800
17
950
650
850
700
900
750
20 19 18 15 14 13 11 10 8 7 12 5 9 6 4 3 16 2
$1,000/oz
1,250
1,150
1,100
1,050
1,200
Yaramoko (Roxgold)
Banfora (Gryphon)
Kobada (African Gold Group)
Sissingue (Perseus)
Baomahun (Amara)
Ity CIL (DFS)
Dugbe 1 (Hummingbird)
Wa-Lawra (Azumah)
Yanfolila (Hummingbird )
Mine life, years
Tri-K (Avocet)
Fekola (B2Gold)
Natougou (Semafo)
Mako (Toro)
Bouly (NordGold)
Kalana (Avnel)
Ity CIL (PFS)
West African DFS Stage Projects Benchmark: Mine life and All-in cost (including initial capex)
All-in
Cash
Co
st, $
/oz (A
ISC
+ In
itial C
ap
ex)
Houndé
DFS
CREATING A PREMIER AFRICAN GOLD PRODUCER 9
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
PROJECT DEVELOPMENT
Houndé and Ity CIL are top tier projects 2
Bubble size represents average annual production = 100koz p.a.
PROJECT DEVELOPMENT
Houndé is positioned to be Endeavour’s flagship low cost mine
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
• Construction started in April with first gold pour expected in Q4-2017
- Construction is progressing on-time and on-budget
- Procurement is approximately 60% complete
• 10-year mine life based on current reserves + significant exploration upside
• Average production of 190kozpa at AISC of US$709/oz
• Capex of $328m, inclusive of $47m for owner-mining fleet
• Robust Project with after-tax IRR of +30% at US$1,250/oz
$662/oz
184koz
Year 2
$648/oz
218koz
Year 3
231koz
Year 9 to 10
Average
$645/oz
116koz
$496/oz
Year 5 to 8
Average
$901/oz
Year 4
223koz
265koz
$506/oz
Year 1
AISC/oz Production based on reserves, koz
Exploration upside expected to fill this shortfall
Life of Mine Plan
CREATING A PREMIER AFRICAN GOLD PRODUCER
2
10
Long-life Low Cost Project
• Long 14-year reserves mine life
• Low AISC of $507/oz over first 9 years
• Solid production of 144kozpa over first 9 years
Robust Project Economics (based on $1,250/oz)
• After-tax IRR of 36%
• After-tax NPV5% of $411m
• Quick payback of 2.1 years
Significant improvement expected in H1-2017 Feasibility Study update
• Inclusion of the recent high-grade Bakatouo and Colline Sud discoveries and Verse Ouest
• Additional Resource conversion at Daapleu and Mont Ity
Well-positioned with strong liquidity sources to take final investment decision in H1-2017
11 CREATING A PREMIER AFRICAN GOLD PRODUCER
PROJECT DEVELOPMENT
Ity CIL Feasibility Study demonstrates potential for Ity to become another flagship asset 2
$898/oz
53koz
Years
10 to 14
Year 9
109koz
$638/oz
Year 8
124koz
$554/oz
Year 7
103koz
$608/oz
Year 6
133koz
$622/oz
Year 5
150koz
$582/oz
Year 4
185koz
$500/oz
Year 3
134koz
$608/oz
Year 2
193koz
$409/oz
Year 1
163koz
$477/oz
AISC/oz Production based on reserves, koz
165kozpa at AISC of US$507/oz on average over the first 5 years
+200 Targets 7,190 km2 10 Mining Leases 42 Exploration Licenses
390 km²
2,140 km²
510 km²
4,150 km²
12 CREATING A LOW COST AFRICAN GOLD PRODUCER
UNLOCK EXPLORATION VALUE
Amongst Largest and Most Promising Portfolios in West Africa 3
4
3
1
6
5
2
0.5-1.5Moz 0.5-1.0Moz
4.0-6.0Moz
Greater Ity
2.5-3.5 Moz
Houndé
1.5-2.5Moz
True Gold
0.5-1.0Moz
Côte d’Ivoire
Regional
Tabakoto Agbaou
Total Potential to find 10-15Moz over next 5 years Moz
48% 52%
10-15 Moz
Near Mine to Brownfield < 15km
Greenfield
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.
13 CREATING A LOW COST AFRICAN GOLD PRODUCER
UNLOCK EXPLORATION VALUE
Exploration Strategic Review Output: Ranking of Potential 3
$10m
$15m
$25m
$30m
$45m
$55m
$13/oz
$20/oz
$25/oz
$15/oz$15/oz$11/oz
Côte d’Ivoire
Regional
True Gold Agbaou Tabakoto Houndé Greater Ity
Average discovery cost Exploration budget
Annual budget of $35-40m with anticipated average discovery costs <$15/oz
33%
Côte
d’Ivoire
50%
Mali
17%
Burkina
Faso
5-year budget
14 CREATING A LOW COST AFRICAN GOLD PRODUCER
UNLOCK EXPLORATION VALUE
Exploration Strategic Review Output: Low Discovery Costs 3
2017
9%
100%
7%
21%
24%
9%
31%
9%
4%
2021
100%
12%
7%
43%
27%
6%
2020
100%
13%
2%
35%
35%
6%
2019
100%
10%
4%
21%
20%
26%
20%
2018
100%
7%
3%
25%
20%
22%
23%
True Gold Regional CI Ity Agbaou Hounde Tabakoto
Priorities: 1. Tabakoto due to its short mine life 2. Agbaou to extend oxide mine life 3. Ity to extend HL and Improve CIL case 4. Houndé (once in production) to maintain 250kozpa level after 4th year
Priorities: 1. Ity Greater Area 2. Houndé to prolong mine life 3. Tabakoto and Agabou exploration will be
success driven
15 CREATING A LOW COST AFRICAN GOLD PRODUCER
UNLOCK EXPLORATION VALUE
Exploration Strategic Review Output: What are the priorities? 3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
$1,000/oz
$450/oz
$1,200/oz
$600/oz
$1,100/oz
$950/oz
$900/oz
$800/oz
$550/oz
$650/oz
$1,050/oz
$850/oz
$1,150/oz
$750/oz
$700/oz
$500/oz
Mine life, years
Decreased costs from >1,300/oz
Agbaou (180-195koz)
Nzema (90-100koz)
Tabakoto (155-175koz)
Ity HL (70-80koz)
AISC, US$/oz
Ity HL (70-80koz)
Ity CIL (first 9 years)
Houndé (200koz)
Karma (110-120koz)
Bubble size represents production
Côte d’Ivoire Burkina Faso Ghana Mali
16 CREATING A PREMIER AFRICAN GOLD PRODUCER
Possibility to run HL in Parallel CIL Project
DFS
Mine life as at 2016
4 PORTFOLIO & BALANCE SHEET MANAGEMENT
Increase Overall Quality of our Portfolio
Karma
Siguiri
Tasiast
AISC, US$/oz
Tabakoto (2016E)
Sabodala
Nzema (2016E)
17
50
100
150
200
250
300
350
400
450
500
550
600
500 550 600 650 700 750 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350
Tarkwa
Akyem
Agbaou (2016E)
Bissa
Gounkoto Mana
Loulo
Chirano
Syama
Morila
Lefa
Tongon
Wassa
Edikan
Sadiola
Ahafo
Bonikro
Essekane
Iduapriem
Bogoso/Prestea
Damang
Ity HL
Ity CIL
Pro
du
ctio
n, k
ozp
a
Houndé, Ity, and Karma are respectively based on first 4, 5, and 5 year averages. Peer group based on 2015A. Source: UBS research
Lowest cost mines Highest cost mines
Houndé
CREATING A PREMIER AFRICAN GOLD PRODUCER
~1/5 of 2019 EDV production
~4/5 of 2019 EDV production
West African Mines Benchmark
4 PORTFOLIO & BALANCE SHEET MANAGEMENT
Creating one of West-Africa’s lowest cost asset portfolios
Significant reduction in Net Debt since the beginning of the year
‒ $65m cash injection received from La Mancha in May following the True Gold transaction close
‒ $104m of net proceeds from bought deal financing to accelerate organic growth and exploration
‒ $100m voluntary repayment made under the $350m revolving corporate facility
18
End of Sept 2015
End of Sept 2016
$14m
0.1x
End of June 2016
$83m
1.7x
2014 (year-end)
$254m
1.8x
$242m
Net Debt to trailing 12-month Operating EBITDA ratio Net debt
Liquidity and Financing Sources
0.5x
Strong liquidity and financing sources to fund remaining Houndé capex spend of roughly $270m
Further headroom potential to fund Exploration and Ity CIL with free cash flow
$397m
Undrawn RCF of $210m
$50m Equipment Financing
Cash Position of $137m
As of September 30th, 2016
Net debt = Cash less drawn RCF, leases & drawn equipment financing RCF of $350 million, maturity date March 2020, semi-annual reductions commencing September 2018, annual interest based on LIBOR + a 3.75% to 5.75% margin
4 PORTFOLIO & BALANCE SHEET MANAGEMENT
Healthy financial structure
19 CREATING A PREMIER AFRICAN GOLD PRODUCER
HEALTHY FINANCIAL STRUCTURE
Well positioned to fund growth 4
Objective to keep leverage in a maximum range of 0.5x-1.0x
US$137m
US$210m
US$50m
US$271m
US$306m
c. $580m
Remaining Houndé project costs (as of 30/09/2016)
Ity CIL project costs
Funding requirements
Liquidity Sources
Undrawn RCF
Existing cash balance
Houndé Equipment Financing
Ity Equipment Financing (expected)
Potential liquidity buffer (@ $1,250/oz)
As of end September 2016
Based on current economic conditions, Endeavour can self-finance Houndé and Ity
Room to manoeuvre between debt and own cashflow
• Cash flow from current mine operations 2017-2018 (@$1,250/oz), including Houndé and Karma
• Hedging collar (between USD1,200-1,400/oz) covering c. 50% of production from Apr 16 to Sept 2017 protects cash flows while Ity and Houndé are being built
Key Value Drivers 2016 Achievements to Date
Portfolio Management
• Dynamic portfolio management to improve quality of portfolio • Youga sold in March (end of life, high cost operation)
• Karma acquired in April (Long mine life, low-cost operation)
Deleverage Balance Sheet
• US$230m additional equity • Net Debt positon reduced to US$14m
Fund Houndé Project
• Houndé fully financed due to improved balance sheet and cash from operations
• Construction launched in April
Exploration Strategy
• Exploration now an integral part of the strategy (published in November)
• Long-term exploration strategy outlines potential to find 10-15 Moz and extend mine lived beyond 10 years
Enhance Investor Relations
• Clarify equity story • Increased management presence and marketing • Improved transparency
Improve Governance
• New CEO appointed in June 2016 • Rationalization of offices (Corporate in London and Operations in Abidjan)
• Strengthened board with the appointment of 2 new independent directors • Additional governance improvements under consideration
Scorecard of value drivers set at the beginning of the year
On-Going
On-Going
20 CREATING A PREMIER AFRICAN GOLD PRODUCER
21 CREATING A PREMIER AFRICAN GOLD PRODUCER
Near-Term Growth
from Projects
Immediate Cashflow
from Production
Long-Term Upside
from Exploration
Endeavour now offers exposure to both near and long-term growth potential, in addition to current production
Investment Highlights
with an accomplished management team and a healthy balance sheet
CREATING A PREMIER AFRICAN GOLD PRODUCER
Details by Mine and Project
23
Agbaou Mine – Côte d’Ivoire
Recent and Upcoming catalysts
Accomplished
- Record year in 2015, up 23% YoY
- Fully repaid shareholder loans in <2 years, in Nov 2015
- 2015 drill results confirmed oxide mineralization extensions
Upcoming
- Continue to benefit from the soft ore with high potential to add oxide reserves
- Secondary crusher successfully commissioned in July, providing increased processing flexibility
Quick Facts (on 100% basis)
Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI
Resources (incl. of Reserves)
M&I: 14.4Mt @ 2.5 g/t for 1.180Moz Inferred: 1.2Mt @ 1.7 g/t for 0.065Moz
Reserves 13.2Mt @ 2.4 g/t for 1.027Moz
Processing Rate Up to 2.2 Mtpa Gravity/CIL plant - oxides;
1.6 Mtpa fresh ore
Gold Recovery Achieving 97% at present; 92.5% design
Mining Type Open Pit – Contractor Mining (BCM)
Production
AISC (mine-level)
2014A– $621/oz
2015A – $576/oz
2016F – $550-600/oz
Expected Mine Life 7 years from current Reserves
Royalty 3% - 5% sliding scale
Corporate Tax 25% (5 year corporate tax holiday)
2016F
2014A
2015A
180-195koz
181koz
147koz
Agbaou Mine
Abidjan
Ity Mine
Côte d’Ivoire
CREATING A PREMIER AFRICAN GOLD PRODUCER
24 CREATING A PREMIER AFRICAN GOLD PRODUCER
Agbaou Mine – Côte d’Ivoire
Production and AISC
46koz
$525
Q1-2016
43koz
$525
Q4-2015
52koz
$537
Q3-2015
44koz
$583
+12%
Q4-2016E Q3-2016
49koz
$550
Q2-2016
AISC, US$/oz Production, koz
Q3-2016 Insights
• Production increased over the previous quarter despite the negative impact of the rainy season
• Higher gold grades and gold-in-circuit balance optimization compensated for lower processed tonnage and recovery rate
• Transitional ore processed in Q3-2016 represented 15% of total ore
Q4-2016 Outlook
• Production expected to increase due to:
‒ Improvement after end of cyclical effect of rainy season
‒ Benefit of mixing higher grade transitional ore
Insight: Benefit of higher grades
709kt743kt654kt
748kt746kt
2,21 g/t2,15 g/t
2,05 g/t2,05 g/t2,00 g/t
Q4-2016E Q3-2016 Q2-2016 Q1-2016 Q4-2015 Q3-2015
Grade milled, g/t Au Tonnes milled, kt
Agbaou Site Map
25
Agbaou Exploration
• In 2016, exploration is focused on the North pit and South pit extensions, the Agbaou South target, and on generating targets beyond the current resource boundaries
• Drilling based on previous geophysics surveys and soil geochemistry results commenced in April 2016
• More than 12,900 meters had been drilled by the end of September, representing approximately 25% of the exploration program
• Initial results suggest the extension of mineralized zones which will be further investigated by additional drilling
• Program expected to be completed by mid-2017
CREATING A PREMIER AFRICAN GOLD PRODUCER
Agbaou Numerous Gold in soil anomalies over Mag
> 50 ppb
26 CREATING A PREMIER AFRICAN GOLD PRODUCER
Agbaou Exploration – 5 years targets
Côte d’Ivoire
Auger & RC drilling
27 CREATING A LOW COST AFRICAN GOLD PRODUCER
Agbaou – Exploration Potential
• 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.
28 CREATING A PREMIER AFRICAN GOLD PRODUCER
Quick Facts (on 100% basis)
Ownership 80-90% Endeavour depending on pit, remainder government of Mali
Resources (incl. of Reserves)
M&I: 18.5Mt @ 3.1 g/t for 1.844Moz Inferred: 9.0Mt @ 3.6 g/t for 1.023Moz
Reserves 6.4Mt @ 3.5 g/t for 0.725Moz
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
2016F – $970-1,050/oz
Expected Mine Life 4+ years from current Reserves
Royalty 6%
Corporate Tax 30%
29
Tabakoto Mine – 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
- Continue to optimize operation and reduce costs
- Considerable potential to expand and replace reserves
2014A
2016F 155-175koz
2015A 152koz
127koz
Tabakoto Mine
Bamako
Mali
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Tabakoto Mine – Mali
30 CREATING A PREMIER AFRICAN GOLD PRODUCER
Production and AISC Q3-2016 Insights
• Improved mine performance with ~10% increase in ore tonnage extracted (for both open pit and underground)
‒ First time mine extraction over-performs mill throughput in over a year
• Production decreased over the previous quarter due to:
‒ Reduced mill throughput caused by maintenance shutdowns
‒ Planned decreased in grade at Segala which is expected to increase in Q4 ( 2.75g/t in Q3 vs 3.2g/t in Q2)
Q4-2016 Outlook
• Higher production and lower costs expected due to
‒ Increased mill throughput
‒ Higher grades at Segala
‒ Improved mining after end of cyclical effect of rainy season
$1 071$1 061$1 071$1 032$1 119
+2%
Q4-2016E Q3-2016
37koz
Q2-2016
39koz
Q1-2016
39koz
Q4-2015
42koz
Q3-2015
36koz
AISC, US$/oz Production, koz
Mine output out-perfomed mill throughput
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398kt368kt380kt
352kt
500kt
381kt399kt406kt392kt
408kt
Q4-2016E Q3-2016 Q2-2016 Q1-2016 Q4-2015 Q3-2015
Processed grades, g/t Au Tonnes Processed, kt Tonnes Mined, kt
3.11 g/t 3.31 g/t 3.10 g/t 3.53 g/t
2.99 g/t
Tabakoto Site Map
31
Tabakoto Mine – Exploration
• At Kofi B North a 244 hole RC drilling program and a 1,311 hole auger drilling program have been completed since the beginning of the year
• Analytic drill currently being analyzed
Kreko
Fougala
Kofi B North
• A first shallow RC program of 334 holes was completed on the Tabakoto, Fougala and Kreko targets which confirmed two mineralized trends
• A second phase drill program has been launched on Fougala and Kreko
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• On the open-pit targets, a total of 72,900m of drilling (both RC and DD) and 1,311 Auger holes have been completed since the start of the year
• The underground exploration programmes are ongoing with 22,400 metres of DD drilled so far this year at Tabakoto UG and Segala UG mines
75 targets identifIed, 7 Priority 1 (2017)
Areas under transported cover identifIed
Tabakoto Surface Target priority ranking
Segala S
Kreko
Fougala
Dioulafoundou S
Famakan
Reg. Explo
Yatia SE
Sanou Sira
Dabo S
Sanou Sira S
32 CREATING A PREMIER AFRICAN GOLD PRODUCER
KOFI Land Package Main Target Areas
Auger drilling
RC drilling
33 CREATING A PREMIER AFRICAN GOLD PRODUCER
Mali Exploration – Tabakoto and Kofi Land Packages
Targeting discovery of between 1.5 to 2.5 Moz at an average cost of $15/oz over the next 5 years with a budget of ~$30M*
*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.
34 CREATING A PREMIER AFRICAN GOLD PRODUCER
• 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
Quick Facts (on 100% basis)
Ownership 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% private investor
Resources (HL + CIL) (incl. of Reserves)
M&I: 61.4Mt @ 1.6 g/t for 3.106Moz Inferred: 14.1Mt @ 1.5 g/t for 0.687Moz
Reserves (HL+CIL) 30.4Mt @ 1.7 g/t for 1.6Moz
Processing Rate 950ktpa HL
Gold Recovery 81%
Mining Type Open pit / Heap Leach
Production
AISC (mine-level) 2016F – $800-850/oz
Mine life 3 years from current Reserves + addition potential
Royalty 3% - 5% sliding scale
Corporate Tax 25%
35
Ity Mine – Côte d’Ivoire
Recent and Upcoming catalysts
Accomplished
- Gained majority ownership in 2014
- Producing at historic highs (+50% since 2012 level)
- Increased heap leach capacity from 0.6mtpa to 1.0mtpa
- Increased M&I resources since 2011 from 0.2Moz to 2.9Moz plus 0.5Moz Inferred
Upcoming
- Continued exploration success to prolong heap leach life at current production level
- DFS for CIL project published on November 10, 2016 outlines potential to become core low-cost asset
- Potential to increase ownership
2015A 81koz
2016F 70-80koz
Agbaou Mine
Abidjan
Ity Mine
Côte d’Ivoire
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36
Ity Mine – Côte d’Ivoire
Q4-2016E Q3-2016
15koz
$724
Q2-2016
21koz
$775
Q1-2016
22koz
$710
Q4-2015
19koz
$621
Q3-2015
17koz
$628
AISC, US$/oz Production, koz
Q3-2016 Insights
• As guided, production decreased due to the impact of the rainy season:
‒ Lower Stacked Tonnage
‒ Decreased grades due to processed lower grade stockpiles during rainy season
‒ Higher mining costs due to more water pumping, etc
Q4-2016 Outlook
• Production expected to increase due to cyclical nature of rainy season
• Maiden resource estimate expected for Bakatouo and Colline Sud discoveries – potential to both extend heap leach mine life and improve Ity CIL project
• CIL DFS on track for Q4-2016
Production and AISC
Ity mine extraction
271kt304kt303kt
247kt280kt
1,90 g/t2,10 g/t
2,53 g/t
2,10 g/t1,95 g/t
Q4-2016E Q3-2016 Q2-2016 Q1-2016 Q4-2015 Q3-2015
Grade milled, g/t Au Tonnes stacked, kt
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Summary of Independent Feasibility Study for CIL Project
Life of Mine Production
Strip ratio, w:o 2.1
Tonnes of ore processed, Mt 41.0 Mt Grade processed, Au g/t 1.42 g/t
Gold content processed, Moz 1.88Moz
Gold recovery, % 83%
Gold production, Moz 1.56Moz
Mine life, years 14 years
Average annual gold production, koz 114Koz
AISC, $/oz $603
Capital Cost
Upfront capital cost, $m $282m
Equipment lease $25m
Economic Returns base on US$1,250/oz
After-tax Project NPV5%,$m 411
After-tax Project IRR, % 36%
Payback, years 2.1
Lead Consultant:
Contributions from:
Source: Ity CIL Feasibility Study
37 CREATING A PREMIER AFRICAN GOLD PRODUCER
Ity CIL Project DFS highlights Independent CIL Feasibility Study prepared by:
Significant Improvement Expected in Updated Feasibility Study
H1-2017 update expected to include:
• Recent high-grade Bakatouo and Colline Sud discoveries
• Verse Ouest following recently completed infill drilling program
• Additional Resource conversion at Daapleu and Mont Ity based planned infill drilling program
Significant opportunity beyond the potential to delineate additional resources at known deposits and make new discoveries
38 CREATING A PREMIER AFRICAN GOLD PRODUCER
Additional Potential for Resource Conversion
Deposits on a 100%
basis. Resources are
inclusive of reserves.
Probable Reserves Indicated Resources Inferred Resources
Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content
(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
Potential includes:
• The recently discovered Bakatouo and Colline Sud deposits 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 Ouest following the recent completion of the in-fill drilling program
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Ity Mine – Exploration: High-grade Bakatouo discovery
September 2016
Indicated Inferred Cutoff Grade g/t
Pit Shell Constraint $ kt g/t Au koz kt g/t Au koz
All Ore 4 807 3.07 474 188 2.87 70 0.50 $ 1 500
4 632 3.13 466 645 2.95 61 0.50 $ 1 250
Oxide / Transitional Ore
1 373 3.73 165 170 4.19 23 0.50 $ 1 500
1 317 3.81 161 153 4.40 22 0.50 $ 1 250
41
Ity Mine – Exploration
• In 2016, exploration is focused on drilling previously identified oxide targets to prolong the life of the heap leach operation and drill new targets with the aim of delineating additional resources for the CIL project
• High-grade maiden resource totaling 515koz of Indicated and 108koz of Inferred on the recently announced Bakatouo and Colline Sud discoveries
• An additional drilling campaign is expected to commence in November on Bakatouo to test its extensions, while exploration is on-going on other nearby targets
• A large auger drilling program was completed and successfully identified several new targets, which will be drilled in the second half of 2016 and in 2017
Ity Mine Drilling Targets
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Ity: New High Quality Near Mine Exploration Targets
42 CREATING A PREMIER AFRICAN GOLD PRODUCER
Greater Ity: 2017-2021 Exploration Program in Tiepleu/Floleu
10 km radius Côte d’Ivoire
Auger drilling
RC drilling
43 CREATING A PREMIER AFRICAN GOLD PRODUCER
44
Ity Mine – Exploration 80km underexplored Birimian corridor
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• 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.
Ity Mine Birimian corridor
Greater Ity Regional Gold in Soil (> 100 ppb) Anomalies
Birrimian meta sediments and green belt
Gnamapleu Granite-Gneiss
No Geochemical data at all No Exploration
Historical Sparse 400x100m Grid on PR462 Except on few selected targets
PR558 Le Plaque Area Several Targets
GBAMPLEU
Mt BA Area Several targets
GUEYA area Several targets
PR609 East Cavally Several Targets
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Greater Ity: 2017 – 2021 Exploration Targets Toulepleu
Auger drilling
RC drilling
46 CREATING A PREMIER AFRICAN GOLD PRODUCER
EDV Controlled Greater ITY TREND SEMAFO Controlled MANA TREND
How significant is Greater Ity area?
SEMAFO Mana (BF) vs EDV Greater Ity (CI) trend size comparison
47 CREATING A PREMIER AFRICAN GOLD PRODUCER
Potential of Greater Ity Exploration
• Numerous high Potential targets have been identified within the Greater Ity area
• The whole controlled 80 km trend will be covered by an airborne geophysical survey for target generation in late 2016 (Mag/Spectro/VTEM ~700 Km2)
• The exploration blocks contiguous with Ity Exploitation license have the potential for multi-millions ounce deposits or group of deposits which may constitute future stand alone operations (heap leach and or CIL)
• While Endeavour controls some 700 km² of Birimian grounds with similar geology around Ity, the targeted new ounces only represent the same number of ounces that have been already produced and discovered over the 35 km² of the mine present footprint.
Targeting discovery of between 4 to 6 Moz at an average cost of $11/oz over the next 5 years with a budget of ~$55M*
*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.
48 CREATING A PREMIER AFRICAN GOLD PRODUCER
49
Nzema Mine – Ghana
Recent and Upcoming catalysts
Accomplished
- Increased levels of purchased ore availability is strategically being used to improve the mine’s economics, operating margins and in the preservation of the mine’s reserves in-situ
Upcoming
- Benefit from accumulated ore stockpiles and increased purchased ore
- Nzema pushback ($13 million) in 2016 should give access to higher grades
Quick Facts (on 100% basis)
Ownership 90% EDV, 10% government of Ghana
Resources (incl. of Reserves)
M&I: 34.6Mt @ 1.3 g/t for 1.490Moz Inferred: 5.9Mt @ 1.3 g/t for 0.244Moz
Reserves 4.7Mt @ 2.4 g/t for 0.356Moz
Processing Rate 1.6 Mtpa Gravity/CIL plant
Gold Recovery 91% to 75% depending on ore type
Mining Type Open Pit – Contractor Mining (BCM)
Production
AISC (mine-level)
2014A– $1,036/oz
2015A – $1,064/oz
2016F – $1,050 -1,125/oz
Expected Mine Life 4 years from current Reserves
Royalty 5% (+1% 3rd party at Adamus pits)
Corporate Tax 35%
90-100koz
110koz
2014A 115koz
2015A
2016F
Accra Nzema Mine
Ghana
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Nzema Mine – Ghana
50 CREATING A PREMIER AFRICAN GOLD PRODUCER
Q4-2016E Q3-2016
24koz
$1,136
Q2-2016
20koz
$1,266
Q1-2016
20koz
$1,158
Q4-2015
23koz
$1,133
Q3-2015
27koz
$1,011
AISC, US$/oz Production, koz
Production and AISC Q3-2016 Insights
• Improving production and AISC profile due to:
– Continued ramp-up of purchased ore at better grades from more suppliers
– Better grades from Adamus pit, ahead of cut-back completion
– Contribution of Nugget Hill deposit despite its lower associated recovery rates
• Adamus pit push-back progressing on budget and on schedule with 3Mt out of 4.6Mt completed
• AISC has improved but remains high due to impact of processing lower grade stockpiles to fill the mill while cut-back is in progress, and lower contribution from purchased ore.
Q4-2016 Outlook
• Production and AISC expected to continue to improve with higher Adamus pit grades and continued purchased ore ramp-up
Purchased ore trend
141kt
112kt
79kt84kt
184kt
3,2g/t3,0g/t
3,1g/t
2,9g/t
3,1g/t
Q3-2016 Q2-2016 Q1-2016 Q4-2015 Q3-2015 Q4-2016E
Grade purchased, g/t Ore tonnes puchased, kt
Permit issues
51
Karma Project – Burkina Faso
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
- Continued mill ramp-up
Houndé Project
Ouagadougou
Karma Project
Karma Mine Quick Facts (1) (on 100% basis)
Ownership 90% True Gold, 10% Burkina Faso
Resources (incl. of Reserves)
M&I: 75.2Mt @ 1.08 g/t for 2.621Moz Inferred: 65.3Mt @ 1.13 g/t for 2.362Moz
Reserves 33.2Mt @ 0.89 g/t for 0.949Moz
Processing Rate 4.0mtpa Heap Leach
Gold Recovery 87%
Mining Type Shallow open pit and free digging material with no
blasting required, low strip ratio
Avg Annual Production (y 1-5) 110 – 120 kozs @ <$700/oz
Mine life 8 years mine life based on reserves + 2.5 years from
North Kao deposit (inferred resource)
Infrastructure
Easy operation with low power requirements (~4MW)
with six diesel gen-sets.
Water supplied by barrage on river 4 km south of
plant; pumped to holding ponds at site
Tax regime 3% - 5% sliding scale royalty / 17.5% Corporate tax
Financing
• Drawn US$105m out of US$120m gold streaming
facility with Franco-Nevada and Sandstorm Gold
(representing 2.3% cost of capital ay US$1,200/oz
and DFS mine mine)
• Drawn US$6.0m US$10m Auramet loan
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Karma Update
CREATING A PREMIER AFRICAN GOLD PRODUCER 52
Q3-2016 Insights
Commercial production declared as at October 1st 2016
Production continued to ramp-up in Q3, currently at annual run-rate of roughly 90koz
Lower production costs to date confirm its ability to be well in line with investment case expectation of low $700/oz
Recovery rate of 90% achieved, higher than 87% in DFS
Shifting mine plan to focus on highest grade Rambo pit, with pre-strip started end of Q3
Outlook
• Production expected to increase in Q4-2016 with benefit of continued increase in Process throughput
• Expected to positively contribute to cash flow in Q4
• Stacking capacity expected to increase to 4.0mtpa by mid-2017 following replacement of front-end and other optimizations. Associated capex to be spent is $32 million, to be incurred over the next 9-months
October
to
December
September
7,381oz
$606
August
6,854oz
$587
July
6,174oz
$612
June
$812
6,026oz
Total Cash Cost, US$/oz Production, koz
Production and Cash Cost
DFS Average life of mine Cash Cost of $672
Process throughput continues to ramp-up
June
4.0 Mtpa
Capacity expected
by Q4-2016
Process optimization
Ramp-up phase
3.0 to 3.2 Mtpa
September Capacity expected
by mid-2017
2.5 Mtpa
1.5 Mtpa
Karma Site Map
Karma - Exploration
• Target: +10 year mine life by year end
• 60,000m program at Kao North started in July, with the aim of extending mine life by +2.5 years
• Program expected to be completed in Q4-2016
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KAO NORTH H2-2016 RESOURCES DRILLING
A
A’
45,000m program has been recently been completed with the target of increasing mine life by 2.5 years and reach +10 years by year end
Selected intercepts shown above. Full results are currently being analyzed.
54 CREATING A PREMIER AFRICAN GOLD PRODUCER
KAO North 2016 Drilling Section
A A’
Infill Drilling Confirms Mineralization Continuity
55 CREATING A PREMIER AFRICAN GOLD PRODUCER
2017 Targets: YABONSGO Target (<10km from GG1)
AC
RC
Yabonsgo is one of our next priority target
56 CREATING A PREMIER AFRICAN GOLD PRODUCER
2017 Targets: Rambo West
AC
RC
Granodiorite
sediments
Rambo West is a near-mine obvious target
57 CREATING A PREMIER AFRICAN GOLD PRODUCER
Karma Exploration
• New geological understanding and mapping in less than 6 months
• 45,000 m drilling campaign already performed on Kao North to add 2.5 year of mine life by year-end
• Near mine “higher” grades targets to be drilled in 2017 (Yabongso and Rambo West)
• Still ongoing evaluation and ranking of all exploration targets
• Beyond Kao North resource drilling, other exploration targets have potential to add up to 5 additional years of mine life with still on-going evaluations
Targeting discovery of between 0.5 to 1.0 Moz at an average cost of $20/oz over the next 5 years with a budget of ~$15M to extend mine life to 15 years*
*Targeting to discover between 0.5 to 1.0 Moz with average grade between 1.0 and 1.5 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource.
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Quick Facts (on 100% basis)
Ownership 90% EDV, 10% Burkina Faso
Status Fully permitted, construction launched
Production start date First gold pour expected Q4 2017
Resources (incl. of Reserves)
M&I: 37.9Mt @ 2.1 g/t for 2.551Moz
Inferred: 3.2Mt @ 2.6 g/t for 0.274Moz
Reserves 30.6Mt @ 2.1 g/t for 2.075Moz
Mine Type Open pit
LOM Strip Ratio 8.4
Processing Rate 3.0 Mtpa Gravity / CIL plant
Gold Recovery 93%
Upfront Capital (US$M) $328m, inclusive of $47m for the owner-mining fleet
59
Houndé Project – Burkina Faso
Houndé Project
Ouagadougou
Burkina Faso
Karma Project
LOMP Summary (on 100% basis)
Processing
Total ore processed, Mt 29.7 Gold grade, g/t 2.15 Contained gold, koz 2,057 Recovery rate, % 93% Production, koz 1,906
Operating Costs
Mining costs, $/t moved 2.17
Processing costs, $/t 13.36
Site G&A, $m/yr 9.8
AISC , US$/oz 709
Economic Returns1
Gold Price (US$/oz) $1,150 $1,200 $1,250 $1,300 1,350
After-tax Project NPV (5%) $230 $286 $342 $398 $437
After-tax Project IRR 24% 28% 32% 36% 39%
Payback, years² 2.7 2.4 2.2 2.0 1.8 1Based on 100% equity funding and equipment lease financing ²From production start
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60
Houndé Construction is progressing on-time and on-budget
Significant achievements to date:
Procurement is approximately 60% complete (excluding contingency) and construction is 22% complete overall
Full back-up power station has been tendered with CAT 26MW of redundancy. Financing negotiations underway, expected during Q4
CIL ring beam concrete pour achieved early-Aug, two weeks ahead of schedule
Mining fleet equipment financing signed with Komatsu Ltd., deliveries already on-site, machinery commissioned and operational
Water harvest dam construction completed, water is already being pumped to the water storage dam two months ahead of schedule
Construction of the 300-person permanent accommodation village is 52% complete and on-schedule for completion in Q1-2017
Procurement has been completed for the 38km 91kv overhead power line and clearing commenced as scheduled in Oct 2016
Detailed engineering of the processing facility is progressing ahead of schedule at 65% complete, scheduled to be completed mid-Nov 2016
1,058 personnel including contractors are currently employed on-site, of which over 96% are Burkinabe
Over 800,000 man-hours worked without a Lost Time Injury (LTI) or Medical Treatment Injury (MTI)
The land compensation process has been successfully completed and resettlement is underway, with all approvals in place.
Incurred Capex (end of September)
$61m
Committed Capex (end of September)
$170m
Total Capex (incl. $26m contigency)
$328m
Procurement is approximately 60% complete
Pouring Crusher West Wing Wall
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Houndé Exploration Upside
61
• 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
Potential to Significantly Extend Houndé’s Mine Life
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Exploration Targets in Proximity to the Planned Mill
Houndé Exploration: 2017-2021 Main Promising Targets
RC drilling
Auger drilling
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Houndé Exploration – Burkina Faso
• 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*
*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.
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Appendix
Endeavour is backed by La Mancha
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$1.8B market cap since announcement of strategic partnership
The Sawiris family is present across various sectors and businesses, ranging from construction and fertilizers to
real estate and telecommunications
Long-term growth supportive investor with focus on creating regional leaders
65
Partnership Announced
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0
5
10
15
20
25
30
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
66
2016 Guidance
(in koz on a 100% basis)
2016 Production 2016 AISC
Guidance Guidance
Agbaou 180 - 195 550 - 600
Tabakoto 155 - 175 970 - 1,050
Nzema 90 - 100 1,050 - 1,125
Ity 70 - 80 800 - 850
Youga 7 - 8 980 - 1,030
Sub-total 502 - 558 820 - 870
Karma (including pre-commercial production*) 50 - 60 750 - 850
Removal of Youga (discontinued operation) (7) - (8) (980) - (1,030)
Total 545 610 810 - 860
Adjusted guidance range 575 - 610 870 - 920
CREATING A PREMIER AFRICAN GOLD PRODUCER
*Assuming 3 months of commercial production
(in US$ millions) Guidance
Revenue (based on production guidance range mid-point) 665
AISC costs (based on AISC guidance range mid-point) (481)
All-in sustaining margin 185
Agbaou secondary crusher ($12m)
(50) Nzema pit wall push-back ($12m)
Non-sustaining exploration ($16m, increased from $14m)
Houndé and the Ity CIL projects ($10m)
Free cash flow before Houndé and Karma
(and before WC, tax and financing costs) 135
Houndé capex (80)
Karma net pre-production (15)
Free cash flow (before WC, tax and financing costs) 40
Revised Guidance assumptions: – gold price forecast increased from $1,150/oz to $1,250/oz for the second half of the year – 3 months Karma commercial production included
67
Production increased in Q3 with larger lift expected in Q4
CREATING A PREMIER AFRICAN GOLD PRODUCER
Q3-15
122koz
146koz
+36%
Q2-16 Q1-16 Q4-15 Q4-16E Q3-16
138koz
108koz 123koz
Group Production From Continuing Operations, koz (including Karma)
19
42
23
52
22
39
20
43
12
21
39
20
46
20
15
37
24
49
Karma Ity Tabakoto Agbaou Nzema
Production by Mine, koz Q4 Trend
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Q3 production continues to increase in line with guided trends
‒ Q3 production up 36% over the previous year due to addition of Ity and Karma
‒ Continued out-performance of low-cost Agbaou mine, Ramp-up of Karma and better performance of Nzema
‒ Cyclical impact of rainy season in Q3 in Cote d’Ivoire
Q4-2016 expected to be our strongest quarter with increases expected across all mines
‒ End of the rainy season for Agbaou and Ity
‒ Continued ramp-up of Karma with commercial production declared October 1st
‒ Improvement at Nzema already seen in Q3, with further improvements to come
‒ Higher grades and mill throughput at Tabakoto
Continued AISC reduction to low-end of guidance
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All-in Sustaining Costs, US$/oz
682698690
740
686674
732
826
890 898901889
934908898
946
FY2014
1,010
FY2013
1,137
Q1-15 Q4-15
920
Q2-16 Q3-15
870
Q2-15 Q3-16 Q1-16*
Cash Cost, US$/oz
Continued AISC reduction, US$/oz AISC by mine, US$/oz
621
537
710
525
775
525
724
550
Agbaou Nzema
1,136
1,266
1,158
Tabakoto
1,071 1,133 1,119
Ity
Q4 Trend
*Excluding discontinued Youga operations, according to standards
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Continued AISC decrease in Q3 due to:
‒ Cost reduction programs
‒ Increased production at Agbaou with higher transition ore in ore mill mix
‒ Lower Ity and Nzema costs
AISC performance expected to continue in Q4:
‒ Production improvements across all mines
‒ On-going cost improvements at Nzema, Tabakoto and Ity
‒ Addition of post-commercial production at Karma with Total Cash Cost currently trending at $600/oz
Guidance
1,071 1,161
Cash flow generation is on-track to meet guidance
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Free Cash Flow: +40% YTD vs 2015, excluding the net positive impact of Karma which will start its commercial production in Q4
Out-performance of low-cost Agbaou and Ity mines in first 9 months of the year strongly contributing to cash flow generation
Free Cash Flow objective well on-track with a stronger Q4 in perspective:
‒ Stronger production at lower AISC is expected
‒ Start of Karma contribution as of October 1 (commercial production start) which had generated a FCF of $9m in Q3
‒ Less non-sustaining capital required as main capital spend is already complete (Agbaou
secondary crusher, Ity DFS, Nzema push-back)
First 9 months ended
2016 2015
(All amounts exclude Youga unless otherwise indicated) US$m US$/oz US$m US$/oz
Gold sold, koz 376 327
Revenue 474 1,260 385 1,178
Total cash costs (259) (690) (227) (694)
Royalties (22) (59) (19) (58)
Corporate costs (16) (43) (13) (40)
Sustaining capex (34) (89) (39) (118)
Sustaining exploration (6) (14) (5) (14)
AISC costs (337) (896) (302) (922)
AISC Margin 137 364 83 256
Less: Non-sustaining capital (20) (52) (17) (53)
Less: Non-sustaining exploration (17) (46) (4) (13)
Operating cash flow from Youga discontinued operation 0 0 12 37
Free cash flow (before Hounde, Karma, working capital, tax & financing costs)
100 265 72 227
Insights:
1. Houndé spend fully on track with capex program
2. + net proceeds from sales +$34m - mining costs capitalized ($21m) - capital expenditure ($13m)
3. Includes Karma and Hounde associated WC
4. WC is expected to reverse in Q4 due to seasonal effect
5. Increased due to Ity inclusion in 2016
6. Includes: $10m hedge settlements, $4m gold collar premiums
7. Pre-acquisition loan to True Gold for Karma Capex
8. + Karma cash acquired +$10m - TGM change of control payments ($6m) - TGM transaction costs ($6m)
9. Combined ex-CEO, BOD and executive level restructuring costs and office consolidation
10. La Mancha for TG acquisition +$65m Option exercises +$13m Bought deal proceeds +$106m Net of SAR and PSU payments ($4m)
Net Free Cash Flow Breakdown
*Includes financial fees, hedge settlements, realized loss on derivative financial instruments, realized foreign exchange loss on cash, and other non-operating cash adjustments.
70 CREATING A PREMIER AFRICAN GOLD PRODUCER
First 9 months ended
US$m 2016 2015
Free cash flow (before Hounde, Karma, working capital, tax & financing costs)
100 72
Hounde project costs (45) (5)
Karma proceeds from sales less mining costs capitalized and capital expenditure
(1) 0
Change in capital project working capital (24) 0
Free cash flow (before operating working capital, tax & financing costs) 30 68
Working capital changes as per statement of cash flows (19) (21)
Taxes paid (12) (6)
Interest paid (10) (9)
Cash settlements on hedge programs and gold collar premiums and share appreciation rights
(15) (4)
Other (foreign exchange gains/losses and other) (4) (16)
Free Cash Flow before other items (31) 12
Cash received for Youga mineral property interests (net) 22 0
Bridge loan advanced to True Gold (15) 0
True Gold cash acquired, less acquisition COC payments, less acquisition expenses
(2) 0
Restructuring costs (18) 0
La Mancha anti-dilution proceeds with True Gold, Bought Deal proceeds, share option exercises, net of equity linked payments (SARs and PSU’s)
180 0
RCF, debt and lease repayments (109) (42)
Cash inflow for the period 28 (30)
1
2
3
4
7
5
8
9
6
10
Adjusted Net Earnings Breakdown
71
Insights: 1. Youga results are removed due to
disposal of the mine
2. Legacy gold hedge caused losses due to increased 2016 gold price and FX movements
3. Increased due to mark-to-market of EDV share price
4. Non-recurring costs, associated with True Gold transaction, closure of Vancouver and Accra offices, and severance packages
5. Shares outstanding increased due to True Gold acquisition
CREATING A PREMIER AFRICAN GOLD PRODUCER
Nine months ended
(US$m) 30-Sep-16 30-Sep-15
Total net earnings 17 57
Youga discontinued operations 3 (9)
Loss (gain) on financial instruments 20 (3)
Stock-based payments 9 3
Acquisition and restructuring costs 25 0
Deferred income tax expense (recovery) 0 (6)
Adjusted net earnings after tax 74 42
Attributable to non-controlling interests 22 14
Attributable to shareholders of the Corporation 51 29
Weighted average number of outstanding shares (million) 76 41
Adjusted net earnings per share (basic) from continuing operations $0.67 $0.70
1
2
3
4
5
Production and Cost Details by Mine
72 CREATING A PREMIER AFRICAN GOLD PRODUCER
1) Includes waste capitalized 2) Includes waste capitalized adjustment
(on a 100% basis)
Agbaou Nzema Tabakoto Ity
Unit Q3-2016 Q2-2016 Q3-2015 Q3-2016 Q2-2016 Q3-2015 Q3-2016 Q2-2016 Q3 2015 Q3-2016 Q2 2016
Physicals
Total tonnes mined – OP1 000t 6,877 5,918 5,037 2,848 1,852 1,323 1,569 1,704 2,129 948 1,584
Total ore tonnes – OP 000t 651 654 706 222 213 231 160 148 123 200 383
Open pit strip ratio1 W:t ore 9.6 8.0 6.1 11.8 7.7 4.7 8.8 10.5 16.3 3.7 3.1
Total tonnes mined – UG 000t - - - - - - 302 315 377 - -
Total ore tonnes - UG 000t - - - - - - 238 221 255 - -
Total tonnes milled 000t 709 743 746 424 450 450 381 399 408 271 304
Average gold grade milled g/t 2.2 2.2 2.0 2.4 1.6 2.2 3.1 3.3 3.0 1.9 2.1
Recovery rate % 96% 97% 96% 82% 86% 85% 95% 95% 93% 91% 101%
Gold ounces produced oz 49,384 46,295 43,802 24,279 19,800 27,405 37,019 39,372 36,373 15,334 20,729
Gold sold oz 51,308 47,638 43,304 23,526 19,827 28,072 37,324 39,156 37,298 15,349 20,981
Unit cost analysis
Mining costs - Open pit $/t mined 2.3 1.9 2.6 4.2 5.4 5.3 3.8 3.8 3.5 4.1 2.8
Mining costs – Underground $/t mined - - - - - - 52.6 50.0 49.7 - -
Processing and maintenance $/t milled 7.1 7.1 6.0 14.2 12.3 14.0 22.6 21.2 24.4 13.2 15.9
Site G&A $/t milled 4.8 4.6 4.5 6.2 6.3 6.1 12.3 11.3 15.7 13.1 7.1
Cash cost details
Mining costs - Open pit1 $000s 15,550 11,008 13,189 11,857 9,992 6,996 5,892 6,527 7,541 3,878 4,450
Mining costs -Underground $000s - - - - - - 15,880 15,740 18,727 - -
Processing and maintenance $000s 5,043 5,312 4,504 6,032 5,541 6,309 8,600 8,470 9,957 3,588 4,841
Site G&A $000s 3,382 3,396 3,385 2,620 2,837 2,748 4,680 4,519 7,815 3,538 2,154
Purchased ore at Nzema $000s - - - 7,817 5574 8,490 - - - - -
Inventory adjustments and other2 $000s (1,826) 1,038 1,217 (3,911) (670) - (1,666) (2,815) (16,336) (4,003) 1,187
Cash costs for ounces sold $000s 22,149 20,754 22,295 24,415 23,274 24,543 33,386 32,441 27,704 7,001 12,632
Royalties $000s 2,761 2,037 1,748 1,651 1,322 1,768 2,962 2,951 2,493 832 919
Sustaining capital $000s 3,324 2,206 1,187 670 506 2,083 3,610 6,134 8,302 3,276 2,709
Cash cost per ounce sold $/oz 432 436 515 1,038 1,174 874 894 829 743 456 602
Mine-level AISC per ounce sold $/oz 550 525 583 1,136 1,266 1,011 1,071 1,061 1,032 724 775
On a quarterly basis
Production and Cost Details by Mine
73 CREATING A PREMIER AFRICAN GOLD PRODUCER
For the 9 months period ended 2016 and 2015
(on a 100% basis)
Agbaou Nzema Tabakoto Ity3
Unit 9-months 2016 9-months 2015 9-months 2016 9-months 2015 9-months 2016 9-months 2015 9-months 2016
Physicals
Total tonnes mined – OP1 000t 18,864 15,331 6,410 6,707 5,505 6,909 4,630
Total ore tonnes – OP 000t 2,123 2,065 712 1,031 454 383 870
Open pit strip ratio1 W:t ore 7.9 6.4 8.0 5.5 11.1 17.0 4.3
Total tonnes mined – UG 000t - - - - 977 1,227 -
Total ore tonnes - UG 000t - - - - 691 794 -
Total tonnes milled 000t 2,106 1,917 1,333 1,337 1,186 1,195 878
Average gold grade milled g/t 2.2 2.2 1.8 2.3 3.2 3.1 2.2
Recovery rate % 97% 97% 85% 87% 94% 93% 94%
Gold ounces produced oz 138,444 129,633 63,836 87,226 114,933 109,521 58,387
Gold sold oz 139,380 128,921 63,462 87,878 114,750 110,227 58,294
Unit cost analysis
Mining costs - Open pit $/t mined 2.2 2.6 4.8 4.6 3.5 2.7 3.0
Mining costs – Underground $/t mined - - - - 48.5 40.3 -
Processing and maintenance $/t milled 6.7 6.8 12.9 14.8 21.4 22.9 15.2
Site G&A $/t milled 4.7 6.2 6.6 6.7 12.3 15.7 10.2
Cash cost details
Mining costs - Open pit1 $000s 40,883 40,098 30,958 30,702 19,107 18,327 13,998
Mining costs -Underground $000s - - - - 47,356 49,407 -
Processing and maintenance $000s 14,143 12,998 17,151 19,790 25,377 27,344 13,382
Site G&A $000s 9,813 11,866 8,746 8,992 14,568 20,159 8,995
Purchased ore at Nzema $000s - - 17,162 26,250 - - -
Inventory adjustments and other2 $000s (4,873) (4,877) (4,284) (9,640) (9,672) (24,492) (3,317)
Cash costs for ounces sold $000s 59,966 60,085 69,733 76,094 96,736 90,745 33,018
Royalties $000s 6,531 5,431 4,198 5,890 8,613 7,731 2,683
Sustaining capital $000s 7,973 10,801 1,212 9,942 17,112 17,024 7,270
Cash cost per ounce sold $/oz 430 466 1,099 866 843 823 566
Mine-level AISC per ounce sold $/oz 534 592 1,184 1,046 1,067 1,048 737
1) Includes waste capitalized 2) Includes waste capitalized adjustment 3) Ity’s production and AISC is excluded for the pre-November 28, 2015 acquisition period.
Reserve and Resource Table
Resources inclusive of reserves
P&P Reserves M&I Resources Inferred Resources
(Mt) Au g/t (koz) (Mt) Au g/t (koz) (Mt) Au g/t (koz)
Agbaou Mine 13.2 2.42 1,027 14.4 2.54 1,180 1.2 1.71 65
Tabakoto Mine 6.4 3.50 725 18.5 3.09 1,844 9.0 3.55 1,023
Nzema Mine 4.7 2.35 356 34.6 1.34 1,490 5.9 1.28 244
Ity Mine & CIL Project 30.4 1.65 1,613 61.4 1.57 3,106 14.1 1.52 687
Karma Mine 33.2 0.89 949 75.2 1.08 2,621 65.3 1.13 2,362
Houndé Project 30.6 2.11 2,075 37.9 2.09 2,551 3.2 2.62 274
Total 6,744 12,793 4,655
Attributable 5,405 10,238 3,852
Gold Price and Cut-off Grades Resources Gold price Resource lower cut-off grade Reserves Gold Price Reserve lower cut-off grade *
US$/oz g/t Au US$/oz g/t Au
Agbaou Mine 1,500 0.5 1,350 0.6 to 0.8
Tabakoto Mine 1,350 to 1,600* 0.5 to 1.5* 1,250 1.1 to 1.9
Nzema Mine 1,500 0.5 1,250 0.8 to 1.9
Ity Mine & CIL Project 1,500 0 to 0.5* HL: 1,250 CIL: 1,150* 0.6 to 1.5
Karma Mine 1,557 0.2 to 0.5* 1,250 0.2 to 0.3
Houndé Project 1,500 0.5 1,300 0.4 to 0.8
*Varies by distance from deposit to the mill, ore type and mining method (OP/UG)
As at December 31, 2015
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
74 CREATING A PREMIER AFRICAN GOLD PRODUCER
1,000
1,100
1,200
1,300
1,400
1,500
Upside on 100% of production
75
Gold Revenue Protection Program Limit Debt Drawdown
Gold Revenue Protection Program : Gold Option Collar Strategy
US$1,300 US$1,100 US$1,000
$70m
$30m
US$1,200
($9m) ($9m)
Gold price in US$/oz
Meaningful replacement of reduced revenue
Collar “bought puts” strike
Collar “written calls” strike
Upside on 50% of production
Protection on 50% of
production
Proceeds from Gold Option Contracts (US$) (net of premium cost)
• Gold Option Contracts aim to increase the certainty of the free cash flow during the construction period
Objective of using free cash flow rather than Revolving Credit Facility
Significantly reduces debt requirements, even if the gold price drops to US$1,000/oz
• Gold Option Contracts applied to 400koz, representing ~50% of Endeavour’s expected production over 15 months, (Apr 2016-Jun 2017)
Protect 50% of production below $1,200/oz
Fully exposed between 1,200 and $1,400/oz
Upside beyond $1,400/oz on 50% of production
• Full exposure to the gold price once project is built
• As at June 30, 2016, 320,000 ounces remain outstanding
CREATING A PREMIER AFRICAN GOLD PRODUCER
10 10
9 8
7
5
Randgold Acacia IAMGOLD B2Gold Semafo EDVEDV 2015
$31/oz
$16m
Acacia
$31/oz
$24m
Randgold
$72/oz
B2gold
$42m
$42/oz
Iamgold
$70/oz
Semafo
$59/oz
$56m
$32m
$18m
2016 estimated production and 2015/2016 Exploration budget
Average $51/oz produced
Short Mine Lives Due To Lack of Exploration, Not Potential!
It is estimated that EDV should have spent at least $10m/year more in exploration in the previous years to support resource replacement and to be in line with peers
Exploration spend, $m/year Exploration spend, $/oz produced Average Mine Life of operating assets
Endeavour spent less than peers on exploration… … As a result it suffers from shorter mine lives
*Excluding purchases of Ity and Karma, exludes Hounde project
*
76 CREATING A LOW COST AFRICAN GOLD PRODUCER
77
Previous Exploration Strategy Was Based
On Converting Inferred Resources
CREATING A PREMIER AFRICAN GOLD PRODUCER
133
1,603
165
1,693
273
1,582
154
311 274
1,023
65
244
Houndé Agbaou Nzema Tabakoto
2014 2015 2013 ‒ Previous 3 years focused on replacing depletion/production by drilling in-mine or near-mine already existing inferred resources for conversion to indicated and subsequent reserves
‒ Insufficient exploration investment previous 3 years to support inferred resources renewal
‒ Re-launching near-mine and brownfield exploration to define new inferred resources and bring them to Indicated/reserve status
Inferred Resources Evolution (excluding acquisitions)
Exploration Became a Core Focus in 2016
with New Structure in Place
SVP West Africa Exploration
Resource Manager
HR Manager
New Ventures Manager
Expert Geologist
Finance Manager
NI 43-101 Compliance
Greater Ity Explo Manager
Regional CI Explo Manager
Agbaou Explo Manager
Hounde Explo Manager
Karma Explo Manager
Regional BF Explo Manager
Tabakoto/Kofi Explo Manager
Abidjan based
78 CREATING A LOW COST AFRICAN GOLD PRODUCER
Sr Geos Jr Geos DB Techs Account Support
Sr Geos Jr Geos DB Techs Account Support
Sr Geos Jr Geos DB Techs Account Support
Sr Geos Jr Geos DB Techs Support
Sr Geos Jr Geos DB Techs Account Support
Sr Geos Jr Geos Techs Account Support
Sr Geos Jr Geos Techs Support
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
CEO
COO EVP
Projects EVP
Exploration & Growth
CI Government Relations Advisor
Legal Advisor
79
Exhaustive screening of all >200 potential
targets
130+ target screened through multi-criteria
data analysis
First filtering
Quantifying min/max and mean size and grade
(Length x width x 100m depth x density x average grade issued from existing drilling or nearby analogs)
Top selection of 40 most significant
targets
Risked mean Indicated Resource
per Target
Risked-probability weighted potential
per target High/Medium/Low
Exploration budget required per target to
reach Indicated resource level status
Strategic Prioritization
Screening and Ranking Methodology
Conservative Approach
79 CREATING A LOW COST AFRICAN GOLD PRODUCER
80 CREATING A PREMIER AFRICAN GOLD PRODUCER
Methodic and Exhaustive Review to Quantify and Rank Potential
• 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)
81
Further Selection, Ranking and Risk Evaluation
• Each selected target (~40) was risked and characterized by a Probability of Occurrence (POO), based on geological confidence/structural understanding/ type of expected mineralization/existing positive intercepts/trend extension, strong and coherent gold in soil and Auger anomalies
– POO 0.8 to 1: Very high confidence (some Mine and Near Mine Exploration or already Identified /tested targets)
– POO 0.6 : Probable deposit, with a size and grade distribution according to prognosis (Oz and average grade)
– POO 0.4: Less than average Probability of Occurrence, kept in the planning due to its possible size (High Risk- High Reward type) or due to its short distance to mine
• All selected exploration targets were set within a 5 year window, according to mine priorities, permit duration, requested exploration efforts, and budget
• All selected targets characterized with:
– The required drilling amount/yearly budgets and the related timing of Indicated resource definition
– Proposed yearly budgets include estimated manpower, drilling, analysis, support, geophysics, geochem, etc
– A 2017-2021 required risked exploration spending necessary to discover the targeted risked mean indicated Oz per target
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