CREATING A PREMIER AFRICAN GOLD PRODUCER...Agbaou South 3 Agbaou South 2 Niafouta 1 Greenstonne Belt...
Transcript of CREATING A PREMIER AFRICAN GOLD PRODUCER...Agbaou South 3 Agbaou South 2 Niafouta 1 Greenstonne Belt...
CREATING A PREMIER AFRICAN GOLD PRODUCER
FACTSHEET 2018MININGENDEAVOUR EDV:TSX
Endeavour Mining is focused on becoming a premier intermediate African gold producer with a portfolio of high quality mines.
The Company has established a solid operational and construction track record and delivers cash fl ow from its fi ve operating mines, which are expected to produce between 670 and 720Koz of gold at an AISC of $840 to $890/oz in 2018. Endeavour also has immediate growth potential through its high-quality development projects which include the construction-stage Ity CIL project and DFS-stage Kalana project. In addition, Endeavour o� ers long-term upside through its exploration program which aims to discover 10-15Moz of gold between 2017 and 2021 which represents more than twice the reserve depletion during the period.
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TABAKOTO MINE
HOUNDÉ MINE
KALANA PROJECT
AGBAOU MINE
OPERATIONS OFFICE
ITY MINE ITY CIL PROJECT
KARMA MINE
OUR FOOTPRINT
Birimian Greenstone Belt
Mines & Projects
We benefi t from operating synergies due to our geographic focus, while being diversifi ed across multiple countries and assets.
EMPLOYEES WORLD-WIDE
4,500
P+P RESERVES
9.1Moz
670-720Koz2018
PRODUCTION TARGET
M+I RESOURCES
14.9Moz
$840-890/oz2018
AISC TARGET
10-15Moz5-YEAR DISCOVERY
TARGET
oz
5
+10 yearMINE LIFE
+800KozANNUAL
PRODUCTION
<$800/ozAISC
When I became CEO in 2016 we established a new strategy that was focused on building a portfolio of high quality assets to support a long-term sustainable business. We set ourselves an objective of increasing gold production to more than 800,000 ounces, reducing All-in Sustaining Costs to below $800/oz and extending the average mine life within our portfolio to more than 10 years by 2019.
We believe that once these strategic objectives are met, we will have created a sustainable platform that will enable us to generate enough cash to both reinvest into the business - to fund growth and exploration - and pay dividends.
To achieve our objectives, we have built our strategy around four pillars: operational excellence, project development, unlocking exploration value, and the management of our portfolio and balance sheet.
This strategy has already proven successful as we continue to deliver against these strategic pillars. We have signifi cantly increased the quality of our portfolio by successfully building the Houndé project, while divesting the non-core Youga and Nzema mines and acquiring the Karma mine and Kalana project. As part of our aggressive exploration campaign, we have enjoyed considerable success in the Ity mine which has generated the CIL project, where construction began in late 2017.
Looking ahead, I am excited about the future and confi dent that we are well on our way to building a premier African gold producer.
“Our goal is to create a sustainable business with high quality mines that generate su� cient cash fl ow to both reinvest into the business - to fund growth and exploration - and pay dividends.”
BUILDING A SUSTAINABLE BUSINESS
SÉBASTIEN DE MONTESSUS, CEO & PRESIDENT
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202220212020201920120120120150142 301
317Koz
2
462Koz 517Koz
6
584Koz
7
+663Koz
+900Koz+900Koz
800-900Koz800-900Koz
670-720Koz
<$800/oz$840-890/oz
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$1,317/oz
$1,010/oz
$922/oz$895/oz
$869/oz
2010
•Endeavour acquired Etruscan
(Agbaou project and Youga mine)
2011
•Endeavour
merged with Adamus (Nzema
mine)
2012
•Endeavour acquired
Avion (Tabakoto mine and Houndé
project) •
Construction of the Agbaou project
commenced
2013
•Houndé
Feasibility Study published
2014
•Agbaou began
commercial production
2015
•Endeavour acquired Ity and formed a strategic
partnership with La Mancha who became a 30%
shareholder
OUR STORY
PRODUCTION PROFILEGROUP PRODUCTION AND AISC, INCLUSIVE OF DISCONTINUED OPERATIONS
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OPERATIONALEXCELLENCE
Proven track record of operating in West Africa, based on a proactive management team located within close proximityof our mines.
PROJECTDEVELOPMENT
High-quality project pipeline coupled with a strong in-house construction team with a proven track-record.
UNLOCKINGEXPLORATIONVALUE
One of largest exploration portfolios in West Africa and an annual budget of over $40m, with the target of discovering an additional 10-15 million ounces between 2017 and 2021.
PORTFOLIO &BALANCE SHEET MANAGEMENT
Dynamic management of our portfolio to increase its quality, coupled with a healthy balance sheet to fund organic growth.
2016
•New CEO stepped-in with aim of creating
a high-quality portfolio
•Non-core Youga
mine divested and True Gold (Karma
mine) acquired •
Houndé project construction began
•Agbaou secondary
crusher built•
5-Year exploration strategy was
launched
2017
•Ity stake increased from 55% to 80%
•Acquired Avnel
(Kalana project) to strengthen project
pipeline•
Houndé built completed ahead of schedule and
below budget •
Ity CIL construction was launched
•Non-core Nzema
mine divested
STRATEGIC LEVERS
We signifi cantly increased the quality of our portfolio by developing our high quality project pipeline while actively managing our portfolio to divest non-core assets at the right time and make opportunistic acquisitions.
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ITY MINE & ITY CIL PROJECT AGBAOU MINE TABAKOTO MINE
Ity has produced over 1.2Moz since its start in 1991. The Ity CIL Project is expected to give a second life to the Ity mine with a long 14-year mine life based on current reserves. The Feasibility Study outlined the potential for Ity to deliver average production of 165Koz over the first 5 years at an AISC of US$507/oz.
Agbaou was built ahead of schedule and under the 160m budget, commercial production was declared in January 2014. Agbaou has delivered very strong cash fl ows, with a payback period of less than 2 years.
Tabakoto was acquired in 2012 following which the Segala open pit was converted to an underground mine and the Kofi C open pit was commissioned, and mill capacity was doubled. Current e¢ orts are focused on cost-optimization and exploration.
STRONG PIPELINEEXPOSURE ACROSS THE MINING PHASES
Mines
Projects
Greenfi eld exploration targets
Endeavour o� ers exposure to both near and long-term growth in addition to current production.
LONG-TERM UPSIDEFROM GREENFIELD EXPLORATION
NEAR-TERM GROWTHFROM PROJECTS
Mt. Ba/Gueya(Ivory Coast-Ity trend)
Fetekro(Ivory Coast)
Kari/Kari Pump(Hounde trend)
Tiepleu(Ity trend)
Floleu(Ivory Coast-Ity trend)Kofi Trend
(Mali)
Bondoukou Cluster(Ivory Coast)
Daoukro Cluster(Ivory Coast)
Siguiri(Guinea)
Fougadian(Mali)
Liguidi(Burkina Faso)
Liptako(Niger)
Sissedougou JV(Ivory Coast)
Sia/sianikoui(Hounde trend)
Preparation Resource stage DFS stageDrilling on-going
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KALANA PROJECT HOUNDÉ MINE KARMA MINE
The Kalana Gold Project was acquired by Endeavour in 2017, to further strengthen Endeavour’s high quality project pipeline. Endeavour expects to take advantage of its construction expertise, operating synergies and exploration experience to re-design and optimize the current feasibility study, which is expected to increase the annual production profi le and improve the project economics.
The Houndé mine was successfully built ahead of schedule and below budget, with its fi rst gold pour occurring in October 2017. Houndé has become the Company's fl agship low-cost mine, ranking amongst West Africa's top tier cash generating mines.
The Karma mine was acquired in 2016, shortly after its fi rst gold pour. Karma includes six identifi ed gold deposits and is a shallow open pit with little blasting required and a low strip ratio, making it a low cost operation. In 2017, an optimization project was completed to lift the stacking capacity.
LONG-TERM UPSIDEFROM GREENFIELD EXPLORATION
NEAR-TERM GROWTHFROM PROJECTS
IMMEDIATE CASH FLOWFROM PRODUCTION
Resource stage DFS stage Construction
Kalana
Ity CIL
Houndé(completed) Houndé
Karma
Tabakoto
Ity Heap Leach
Agbaou
Nzema
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AGBAOU MINE
The low-cost Agbaou mine was built ahead of schedule and under-budget in 2014. The secondary crusher, which was successfully built in mid-2016 now provides the flexibility to blend the oxide ore with higher-grade harder fresh ore and maintain a more normalized and sustainable annual production rate.
MINE ATTRIBUTES ■ Ownership: 85% EDV, 10% government
Côte d’Ivoire, 5% SODEMI
■ Mining Method: Open pit / Contractor Mining
■ Processing: Gravity / CIL plant
■ Gold Recovery: 94% (2017A)
CÔTE D’IVOIRE
140-150KozPRODUCTION
expected in 2018
0.7MozP+P RESERVES
As of December 31, 2017
0.8MozM+I RESOURCES
As of December 31, 2017
$860-$900/ozALL-IN
SUSTAINING COSTSexpected in 2018
0.5-1.5MozPOTENTIAL
EXPLORATION
Agbaou Mine
ABIDJAN
Ity Mine and CIL Project
FULL YEAR ENDED DECEMBER 31
OPERATIONAL DATA 2015 2016 2017
MINING
Waste, kt 17,629 22,585 25,117
Ore Mined -open pit, kt 2,818 2,797 2,983
PROCESSING
Ore Processed, kt 2,665 2,827 2,906
Grade, g/t 2.15 2.27 2.02
Recovery, % 97% 97% 94%
Production, oz 181,365 195,505 177,191
PRODUCTION COSTS
Cash Cost per gold ounce sold, $/oz
462 430 557
All-in Sustaining Costs, $/oz 576 534 647
EXPLORATION POTENTIALAgbaou’s 2017 exploration program amounted to $6 million, totaling 31,400 meters of drilling. The primary objective was to conduct in-pit drilling at the North pit and to test gold in soil anomalies on parallel shear zones. The campaign at the North pit confirmed that its mineral izat ion ex tends at- depth with occurrences of higher grade intercepts.
N
South Extension
Agbaou South 3
Agbaou South 2Agbaou South 2Agbaou South 2
Niafouta 1
Gree
nsto
nne
Belt
Boun
dary
1Gr
eens
tonn
e Be
lt Bo
unda
ry1
Niafouta 2
Peterkro
Niafouta 3
Agbaou South 1Agbaou South 1Agbaou South 1
South
Gamma MPNMPNExtensionExtension
AgbaouAgbaou
Beta ExtensionBeta Extension
BetaAMEAME
AGBS-4AGBS-4
Badji
PitsAreas of interestDrilling completed in 2016Drilling to be completed in 2017Trends
AMAAMAP1
MPNMPN
TSF
PET-Z
BOK
OMEG
A
220
Km
2008
•Feasibility
Study completed
2012
•Construction commenced
2014
•Commercial production launched
2010
•Endeavour acquired
Estruscan
2016
•Secondary
crusher built
2017
•Start of
blending the harder
transitional ore
A further drilling campaign is planned for 2018 with the aim of delineating a resource.
A $4 million exploration program totaling approximately 16,000 meters 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.
AGBAOU EXPLORATION TARGETS
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ITY HEAP LEACH MINE
CÔTE D’IVOIRE
Agbaou Mine
ABIDJAN
Ity Mine and CIL Project
Ity has the longest operating history of any gold mine in Côte d’Ivoire, with more than 1.2 million ounces of gold in its 20-plus years of operation. Exploration success, which has increased resources from approximately 0.5Moz to circa 4Moz in the past few years, has generated the potential to replace the heap leach operation with a larger CIL plant (more details are provided on the following page). The current heap leach operation is expected to continue until the CIL plant is commissioned in 2019.
FULL YEAR ENDED DECEMBER 31
OPERATIONAL DATA 2015* 2016 2017
MINING
Waste, kt 311 4,916 5,237
Ore Mined-open pit, kt 64 1,186 1,410
PROCESSING
Ore stacked, kt 71 1,173 1,194
Grade stacked, g/t 2.39 2.20 1.85
Recovery, % 81% 93% 83%
Production, oz 5,689 75,867 59,026
PRODUCTION COSTS
Cash Cost per gold ounce sold, $/oz
550 606 733
All-in Sustaining Costs, $/oz 683 756 906
* For the post-acquisition period.
MINE ATTRIBUTES ■ Ownership: 80% EDV, 10% government
of Côte d’Ivoire, 10% Drogba Group
■ Mining Method: Open pit
■ Processing: 950ktpa Heap Leach
■ Gold Recovery: ~85%
60-65KozPRODUCTION
expected in 2018
0.1MozP+P RESERVES
As of December 31, 2017
3.7MozM+I RESOURCES
As of December 31, 2017
$790-850/ozALL-IN
SUSTAINING COSTSexpected in 2018
4.0-6.0MozPOTENTIAL
EXPLORATION
EXPLORATION POTENTIALIn 2017, Endeavour invested $14 million in the Ity exploration program, totalling 58,500 meters of drilling Following the successful drilling campaigns at the Bakatouo, Ity, Daapleu and Verse Ouest deposits, and the recent Le Plaque discovery, more than 1Moz of indicated resources were added to the CIL project.
In 2018, Endeavour will invest a further $2 million in an exploration campaign to further explore the Le Plaque target in addition to several other near-mill opportunities, with the continued aim of delineating additional resources for the CIL project. An addition $5 million will be dedicated to greenfi eld targets within the 100km corridor along the Ity mine.
ENDEAVOUR-CONTROLLED BIRIMIAN CORRIDOR
1991
•First gold pour by BRGM
2006
•Cominor
transferred to La Mancha through RTO
2012
•La Mancha
purchased by N. Sawiris
2014
•La Mancha
increased its stake to 55%
2016
•Feasibility
study on CIL project
2017
•- Endeavour increased
its stake to 80%- Published optimized feasibility study and
launched Ity CIL construction
Birimian Greenstone Belt80%-owned Permits100%-owned PermitsDepositsTargets
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TOULEPLEU
CÔTE D’IVOIRELIBERIA TIEPLEUToulepleu-Ity
Greestone
Gbampleu
ZeitouoMt Ba
Gueya
Toulepleu-Ity Greestone
GuiamapleuGranite Gneiss
250
Km
BakatouoIty
Mine
Le Plaque
Morgan
Gneissic B
asement
GbeitouoDaapleu
FLOLEU
CavallyRiver
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ITY CIL PROJECT
CÔTE D’IVOIRE
The Ity CIL Project commenced construction in September 2017, and is being carried out by Endeavour's in-house team following their successful completion of the Houndé Project. The optimized study, published in September 2017, demonstrated the signifi cant potential of Ity, which has already been in operation for more than 20 years, to become another flagship asset for Endeavour. The Ity CIL Project is expected to extend the mine life by 14 years, producing approximately 204,000 ounces annually for the fi rst ten years, at a low AISC of $549/oz.
OPTIMIZED FEASIBILITY STUDY HIGHLIGHTS
LIFE OF MINE SUMMARY
Strip ratio, w:o 1.9
Tonnes of ore processed, Mt 57
Grade processed, Au g/t 1.57
Gold content processed, Moz 2.87
LOM Average Gold recovery, % 86%
Gold production, Moz 2.47
Mine life, years 14.3
Average annual gold production, Koz 173
Cash costs, $/oz 554
AISC, $/oz 580
AVERAGE FOR YEARS 1 TO 5
Gold production, kozpa 235
Cash costs, $/oz 472
AISC, $/oz 494
AVERAGE FOR YEARS 1 TO 9
Gold production, kozpa 204
Cash costs, $/oz 523
AISC, $/oz 549
CAPITAL COST
Upfront capital cost, $m 351
ECONOMIC RETURNS BASED ON US$1,250/oz
After-tax Project NPV5%, $m 710
After-tax Project IRR, % 40%
Payback, years 1.8
PROJECT ATTRIBUTES ■ Status: Construction launched, fi rst gold pour
expected mid-2019
■ Ownership: 80% EDV, 10% government of Côte d’Ivoire, 10% Drogba Group
■ Mining Method: Open pit
■ Processing: 4Mtpa CIL (upgraded from 3Mtpa in DFS)
■ Expected Mine Life: +14 years
■ After-Tax Project NPV (5%): $710m @1,250/oz gold price
■ After-Tax Project IRR: 40% @ $1,250/oz gold price
Agbaou Mine
ABIDJAN
Ity Mine and CIL Project
235KozAVERAGE PRODUCTION
over fi rst 5 years
3.0MozP+P RESERVES
As of December 31, 2017
3.7MozM+I RESOURCES
As of December 31, 2017
$494/ozAVERAGE ALL-IN
SUSTAINING COSTSover fi rst 5 years
4.0-6.0MozPOTENTIAL
EXPLORATION
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ITY MINE LAYOUT
Cavally River
Deposits included in optimized feasibility study
Pits in Operation
Mined Out Pits
Gbeitouo
Teck
raie
Aires
Plant
LeachingPads
Zia NE
Zia
Flotouo
Verse Est
Mont Ity
Ity FlatTontouoVerse
Ouest
Colli
neSu
d
Walter
Bakatouo
Daapleu
20 1
Km
Daapleu
1991
•First gold
pour by BRGM
2006
•Cominor
transferred to La Mancha through RTO
2012
•La Mancha
purchased by N. Sawiris
2014
•La Mancha
increased its stake to 55%
2016
•Feasibility
study on CIL project
2017
•- Endeavour increased
its stake to 80%- Published optimized feasibility study and
launched Ity CIL construction
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KARMA MINE
Karma was acquired shortly before its first gold pour in April 2016. Despite its low grade, Karma is a low-cost operation with shallow open pit, little blasting required and a low strip ratio. Having already extended its mine life from 8.5 years to 10 years in 2016, Karma has the potential to be a long-life asset as it already hosts six identified gold deposits and has 45 targets.
BURKINA FASO
FULL YEAR ENDED DECEMBER 31
OPERATIONAL DATA 2016 2017
MINING
Waste, kt 6,874 11,451
Tonnes ore mined, kt 1,879 3,862
PROCESSING
Ore Processed, kt 2,089 3,552
Grade milled, g/t 1.16 1.07
Recovery, % 90% 83%
Production, oz 61,813 97,982
PRODUCTION COSTS
Cash Cost per gold ounce sold, $/oz 657 716
All-in Sustaining Costs, $/oz 738 834
MINE ATTRIBUTES ■ Ownership: 90% EDV, 10% government
of Burkina Faso
■ Mining Method: Shallow open pit
■ Processing: 4Mtpa Heap Leach
■ Gold Recovery: 83% (2017 actual)
Karma Mine
OUAGADOUGOU
Houndémine
105-115KozPRODUCTION
expected in 2018
1.0MozP+P RESERVES
As of December 31, 2017
2.9MozM+I RESOURCES
As of December 31, 2017
$780-$830/ozALL-IN
SUSTAINING COSTSexpected in 2018
0.5-1.5MozPOTENTIAL
EXPLORATION
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EXPLORATION POTENTIALKarma’s 2017 exploration program amounted to $3 million, totalling 41,520 meters of drilling focused primarily on the northeast extension of the North Kao deposit and on the Yabonsgo target. Drilling at the North Kao deposit extension confirmed the deposit’s continuity.
2008
•First resources published for
Karma Project
2015
•Construction work began
2016
•- First gold
pour in April- Endeavour purchased
Karma in March
2014
•Mining permit
issued
2017
•- Mine life extended
from 8.5 to +10 years- Front-end
optimization project completed
A $2 million exploration program totalling approximately 32,000 meters has been planned for 2018 with the aim of delineating Indicated resources at both North Kao and Yabonsgo, in addition to near-mill targets such as Rounga and on the recently acquired Zanna exploration license.
KARMA EXPLORATION TARGETS
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HOUNDÉ MINE
The Houndé mine was successfully built ahead of schedule and below budget, with its first gold pour occurring in October 2017 and comm er c ia l p r o duc t ion announce d on November 1st, 2017. Houndé has become the Company's flagship low-cost mine, ranking amongst West Africa's top tier cash generating mines, with an average annual production of 235,000 ounces at an All-In Sustaining Cost of $610/oz over its fi rst four years.
BURKINA FASO
Karma Mine
OUAGADOUGOU
Houndémine
MINE ATTRIBUTES ■ Ownership: 90% EDV, 10% government of Burkina Faso
■ Mining Method: Open pit
■ Processing: 3Mtpa Gravity / CIL plant
■ Gold Recovery: 95% (2017A)
250-260KozPRODUCTION
expected in 2018
2.0MozP+P RESERVES
at 2017
2.5MozM+I RESOURCES
at 2017
$580-630/ozALL-IN SUSTAINING COSTS
expected in 2018
2.5-3.5MozPOTENTIAL
EXPLORATION
FULL YEAR ENDED DECEMBER 31
OPERATIONAL DATA 2017
MINING
Waste, kt 17,933
Tonnes ore mined, kt 1,026
PROCESSING
Ore Processed, kt 813
Grade milled, g/t 2.75
Recovery, % 95%
Production, oz 68,754
PRODUCTION COSTS
Cash Cost per gold ounce sold, $/oz 194
All-in Sustaining Costs, $/oz 335
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EXPLORATION POTENTIALFollowing a two-year period of no exploration, activities resumed in 2017 with $5 million spent on a drilling program totalling approximately 76,000 meters. The campaign yielded positive results with the discovery of high-grade intercepts at both the Kari Pump target and the Sia/Sianikoui targets.
In 2018, Houndé will be a key focus for Endeavour with a $9 million exploration program totaling approximately 125,000 meters planned with the aim of drilling the entire Kari anomaly and delineating a maiden resource.
HOUNDÉ EXPLORATION TARGETS
Kari Pump
Nema
Soukou
Kari Fault
Koho
Vindaloo
Bouere
Grand Espoir
Dohoun
Sia/Sianikoui
Mambo
KopoiDossi
Exist
ing Hi
ghway
Exist
ing Po
werline
TargetsDeposits
1050
Km
N
Waste
Dum
p
TailingsStorageFacility
2012
•Endeavour purchased
Avion (Tabakoto
and Houndé)
2013
•Feasibility
Study published
2015
•Endeavour
received mining premit
for Houndé Project
2016
•- Construction began in April
- Groundbreaking ceremony
2017
•Commercial production
achieved ahead of schedule and
below budget
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TABAKOTO MINE
Tabakoto underwent a complete assetturn-around after Endeavour acquired it in 2012. Segala was converted into an underground mine, the Kofi C open pit mine was commissioned and the mill’s capacity was doubled. Today, Endeavour’s main focus is to continue to optimize costs while re-launching signifi cant exploration e� orts in an aim to extend the mine life.
MALI
TabakotoMine
KalanaProject
BAMAKO
FULL YEAR ENDED DECEMBER 31
OPERATIONAL DATA 2015 2016 2017
MINING
Waste, kt 8,787 6,449 5,753
Ore Mined -open pit, kt 511 649 647
Ore Mined - underground, kt 860 944 756
PROCESSING
Ore Processed, kt 1,588 1,588 1,640
Grade milled, g/t 3.17 3.36 2.90
Recovery, % 93% 95% 94%
Production, oz 151,067 162,817 143,995
PRODUCTION COSTS
Cash Cost per gold ounce sold, $/oz
846 821 929
All-in Sustaining Costs, $/oz 1,067 1,027 1,148
MINE ATTRIBUTES ■ Ownership: Endeavour ownership ranges
from 80% to 90% depending on pits, remainder government of Mali
■ Mining Method: Underground and open pit mining
■ Recovery rate: 94% (2017 actual)
■ Processing: 1.4Mtpa Gravity / CIL Plant
115-130KozPRODUCTION
expected in 2018
0.5MozP+P RESERVES
As of December 31, 2017
1.9MozM+I RESOURCES
As of December 31, 2017
$1,200-1,250/ozALL-IN
SUSTAINING COSTSexpected in 2018
1.5-2.5MozPOTENTIAL
EXPLORATION
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EXPLORATION POTENTIALIn 2017, Endeavour dedicated $8 million to Tabakoto’s exploration program, totalling 56,200 meters of drilling. The campaign was focused on both underground resource delineation and testing near-mill open pit targets. Depleted ounces were replaced and a portion of the new M&I resources was converted.Endeavour is investing $6 million in the 2018 exploration program, totalling approximately 45,000 of drilling. This will be allocated equally between near-mill targets (both underground and open pit) and greenfi eld targets on both the Kofi permit and on the new permits acquired in 2017, located immediately north of Kofi and on-trend with Randgold’s Loulo deposits.
2006
•First gold
pour
2013
•Mill size
expanded from 2,000 to 4,000 tpd
2014
•Production
from Segala UG
commenced
2012
•Endeavour acquired
Avion
2015
•Production from Kofi C
deposit commenced
2016
•Focus on
cost-cutting and relaunched
exploration
2017
•Tabakoto deemed
non-core and sales process
launched
TABAKOTO SITE MAPN
1050
Km
Mineral DepositsEndeavour MiningRandgold Resources
Mineral TrendsPlanned roadEscarpmentNational bordersEndeavour permits
MALI
KOFI
TABAKOTO
SENEGAL
Bassindi
Betea North ZoneBetea Central ZoneBetea South Zone
A linear Zone
Segala
Dar Salam
Djambaye II
Gounkoto
Yalea
PQ10 SouthGara West
Gara
Randgold loulo>11 Moz Au
P129QTLoulo 3Loulo 2Loulo 1Batabo
Tabakoto
Dioulafoundou
A Zone
Blanald ZoneC Zone
B Zone
Yalea
P129QTP129QTLoulo 3Loulo 2Loulo 1Batabo
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KALANA PROJECT
MALI
TabakotoMine
KalanaProject
BAMAKO 148KozAVERAGE PRODUCTION
over fi rst 5 years
2.0MozP+P RESERVES
As of December 31, 2017
3.1MozM+I RESOURCES
As of December 31, 2017
$561/ozAVERAGE ALL-IN
SUSTAINING COSTSover fi rst 5 years
The Kalana Project was acquired in 2017 to strengthen Endeavour's high quality project pipeline. Kalana is a high-quality project with an expected AISC of $730/oz over an 18-year mine life. Endeavour expects to take advantage of its construction expertise, operating synergies and exploration experience to re-design and optimize the current feasibility study, which is expected to increase the annual production profi le and improve the project economics.
PROJECT ATTRIBUTES ■ Status: DFS stage
■ Ownership: 80% EDV, 20% government of Mali
■ Mining Method: Open pit
■ Processing: 1.2Mtpa for competent fresh ore and 1.5Mtpa for soft saprolite ore
■ Expected Mine Life: 18 years
■ After-Tax Project NPV (5%): $321m @ $1,200/oz gold price
■ After-Tax Project IRR: 50% @ $1,200/oz gold price
FEASIBILITY STUDY HIGHLIGHTS
LIFE OF MINE SUMMARY
Strip ratio, w:o 9.9
Tonnes of ore processed, Mt 22
Grade processed, Au g/t 2.80
Gold content processed, Moz 1.96
LOM Average Gold recovery, % 93%
Gold production, Moz 1.82
Mine life, years 18
Average annual gold production, Koz 101
Cash costs, $/oz 592
AISC, $/oz 730
AVERAGE FOR YEARS 1 TO 5
Gold production, kozpa 148
Cash costs, $/oz 427
AISC, $/oz 561
ECONOMIC RETURNS BASED ON US$1,200/oz
After-tax Project NPV5%, $m 321
After-tax Project IRR, % 50%
Payback, years 1.1
21
EXPLORATION POTENTIALA $5 million exploration program is planned for 2018, with the objective of completing 45,000 meters of drilling to provide an updated resource which is expected to form the basis for the updated feasibility study. Exploration is focused on infill and extension drilling at 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 and on permits which are expected to be granted shortly.
1982-1991
•Kalana UG
mine operated by Soviets
2009-2013
•Exploration outlines the Kalana Main
Project
2014
•PEA
published
2003
•Avnel
acquired Kalana
2016
•FS
published
2017
•Endeavour
acquired Avnel and launched optimisation
KALANA SITE MAP
N
1050
Km
ResourcesTargets
Kalana Licence
Kalanako
Djirila
KalanaGold Mine
Dabaran North
SanekourouTonda
Zamirila
SananfaraniDalada
Solomanina
Bandiala
22
We are strategically positioned to unlock exploration value with an experienced team in place and one of West-Africa’s largest and most promising exploration portfolios. Our exploration strategy is based on methodically screening and ranking targets within our portfolio and then maintaining a 5-year exploration program based on priorities. Our aggressive exploration program aims to discover 10-15Moz of gold between 2017 and 2021, which represents more than twice the reserve depletion, to increase the average mine lives to above 10 years.
EXPLORATION
5-YEAR EXPLORATION BUDGET
31%Greater
Ity
25%Houndé
14%Agbaou
8%Karma
6%Côte d’IvoireRegional
17%Tabakoto
$35-40mPer Year
Agbaou Karma Côte d’IvoireRegional
TabakotoHoundéGreater Ity
4.0-6.0Moz
2.5-3.5Moz
1.5-2.5Moz
0.5-1.5Moz 0.5-1.5Moz0.5-1.0Moz
$11/oz $15/oz $15/oz $25/oz $20/oz $13/oz
TARGET DISCOVERIES BY COUNTRY AND DISCOVERY COST
Signifi cant success over the last 4 years
Signifi cant amount of data available
Many known targets based on geochem and auger results
Exploration stopped once project reached critical size to make investment decision
Many known targets and historical drill data
On same trend as Randgold
Limited exploration expenses have caused mine life to be short
New discoveries made in 2016 with strong targets for 2017+
Limited exploration (mainly focused on converting inferred)
Focus on pit extensions and parallel trends
Targets backed by geochem anomolies
Previously owned by junior with lack of fund for exploration
North Kao already added 2.5 years of mine life
Many near mill targets
One of the largest exploration tenements in the country
Several advanced exploration targets based on historic results
14.9MozGROUP M&I RESOURCES
As of December 31, 2017
+200EXPLORATION
TARGETS
10-15Moz5-YEAR
DISCOVERY TARGET
We believe that investing in exploration is fundamental to creating long-term value and sustainable operations. 10,090 km2
EXPLORATION TENEMENTS
Note: Kalana is currently being integrated into exploration strategy.
23
Endeavour MinesEndeavour Project
EDV Near-mine to Brownfield
EDV Exploration PropertiesPeer Gold MinesBirimian Greenstone
Ity
MALI
GUINEA
SIERRALEONE
LIBERIA
TOGO
BENIN
NIGER
NIGERIA
SENEGAL
MAURITANIA
GAMBIA
GUINEA-BISSAU
GHANA
Accra
Abidjan
Ouagadougou
Houndé
Kalana
Karma
Agbaou
CÔTE D’IVOIRE
BURKINA FASO
Tabakoto
Bamako
Niamey
AMONGST LARGEST & MOST PROMISING PORTFOLIOS IN WEST AFRICAThe Birimian greenstone belt of West Africa is one of the world’s most prospective gold bearing regions. Stretching across large parts of West Africa, with nearly half located in Ivory Coast and Burkina Faso, the Birimian rocks form parallel belts that generally trend north-easterly and are 40 to 50 km wide and about 90 km apart. These formations have long been recognised for their prospectivity and remain the prime focus for much gold exploration activity in the region. Today, West Africa lies behind only China, Australia and Russia in terms of gold production and still has considerable unmined reserves and excellent potential, particularly in the under-explored parts of the belt in Ivory Coast and Burkina Faso where Endeavour has one of the largest land packages.
Endeavour MinesEndeavour Project
EDV Near-mine to Brownfield
EDV Exploration PropertiesPeer Gold MinesBirimian Greenstone
Ity
MALI
GUINEA
SIERRALEONE
LIBERIA
TOGO
BENIN
NIGER
NIGERIA
SENEGAL
MAURITANIA
GAMBIA
GUINEA-BISSAU
GHANA
Accra
Abidjan
Ouagadougou
Houndé
Kalana
Karma
Agbaou
CÔTE D’IVOIRE
BURKINA FASO
Tabakoto
Bamako
Niamey
We are committed to delivering sustainable value to our employees, stakeholders and the communities where we operate. Put simply, this means we focus on being a good neighbour and a good employer.
RESPONSIBLEMINING
24
FY 2017FY 2016Peer GroupAverage
0.80
0.40
0.29
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 2017 from Randgold, Nordgold, Eldorado, Asanko, Glencore, and Goldcorp.
OPERATING TRACK RECORDLost Time Injury Frequency Rate
CONSTRUCTION TRACK RECORD
ITY CIL:0 LTI WITH
OVER 3-MILLION MANHOURS
WORKED AS AT MID 2018
HOUNDÉ BUILT WITH NO LTI
AGBAOU BUILT WITH NO LTI
25
EMPLOYEES— We are committed to excellence and strive to develop our local talents with continuous training and evaluations with the goal of promoting our people internally.
Our long-term goal is to hire over 90% of our workforce directly from the country in which each of our operations is located, to support the development of our host country. We actively pro-mote gender equality and empower our female talent with the objective of accelerating individual and collective sustainable development. Mining pro-grams are implemented on our sites to widen access to employment opportu-nities in the mining sector.
COMMUNITY— We recognize that local communities are at the heart of our operations’ liveli-hoods and are fundamental to our day to day work. We are committed to build-ing strong relationships and proactively engaging in dialogue with local commu-nities and institutions, as well as the government at a local, regional, and national level. Ultimately, we believe that the construction and operation of our mines can serve as a catalyst for further long-term regional development.
Where resettlement is necessary, we engage with a¢ ected communities early on to assess and mitigate the potential impact and work closely with them throughout the process to ensure their expectations and needs are not only met, but exceeded.
We facilitate community development programs with a special focus on educa-tion and training – in addition to our mining investments, we are launching and fi nanc-ing other sustainable income-generating projects which seek to build the momen-tum that will attract other investors and ultimately create a local sustainable eco-nomic capital for the region.
HEALTH & SAFETY— We consider this a collective responsibility which we extend to our subcontractors and host communities, and we work diligently to instill a per-sonal sense of responsibility in all our employees.
Our health and safety site teams are committed to identifying occupational health and safety hazards based on job safety analysis and comprehensive hazard and risk assessments, using widely established methodologies. Going beyond the regulatory require-ments, our prevention programs further include awareness sessions, operational training and inspections and are supplemented by additional initiatives that promote our health and safety objectives and policy.
ENVIRONMENT— We are committed to sustainable development and recognize that the long-term success of our business is dependent upon good stewardship of the environment, both in terms of exploration and the extraction of min-eral resources. We closely monitor and seek to continuously improve our performance in dangerous substance management, waste management, water usage, emissions, biodiversity and energy sources.
Our operations are compliant with the environmental regulations of the countries in which we operate, and our site environment teams continu-ally strive to improve our processes and operations in pursuit of improved environmental performance and risk management.
26
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
AGBAOU MINE
RESOURCES SHOWN INCLUSIVE OF RESERVESOn 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
GROUP CONSOLIDATED TOTAL RESOURCES SHOWN INCLUSIVE OF RESERVESOn a 100% basis
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
KARMA MINE
RESOURCES SHOWN INCLUSIVE OF RESERVESOn 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
Notes:
PROJECT(1) Agbaou Kalana
TABAKOTO
Ity Karma(2) HoundéUG 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 o¢ grades for all resources open pits are 0.5g/tAu, except at Kalana where the cuto¢ grade is at 0.9g/tAu and at Karma where the cut-o¢ grade is defi ned
by material type: Oxide=0.2, Transition=0.22 and Sulfi de=0.5.
(2) North Kao resources has a gold price of $1,500/oz.
27
TABAKOTO MINE
RESOURCES SHOWN INCLUSIVE OF RESERVESOn 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
ITY MINE & CIL PROJECT
RESOURCES SHOWN INCLUSIVE OF RESERVESOn 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
HOUNDÉ MINE
RESOURCES SHOWN INCLUSIVE OF RESERVESOn 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
KALANA PROJECT
RESOURCES SHOWN INCLUSIVE OF RESERVESOn a 100% basis
Tonnage (Mt)
Grade (Au g/t)
Content (Au Koz)
Proven Reserves 5.1 3.00 490
Probable Reserves 16.6 2.75 1,470
P&P RESERVES 21.7 2.80 1,960
Measured Resource (incl. Reserves)
9.5 4.20 1,280
Indicated Resources (incl. Reserves)
15.0 4.02 1,920
M&I RESOURCES (INCLUDING RESERVES)
24.5 4.02 3,200
Inferred Resources 1.7 4.51 240
9.1MozP+P RESERVES
14.9MozM+I RESOURCES
10-15Moz5-YEAR DISCOVERY
TARGET
28
SHAREHOLDER INFORMATION
ANALYSTCOVERAGE
TRANSFER AGENT
NAME LISTING ISIN
Ordinary Shares EDV on TSX KYG3040R1589
FIRM ANALYST PHONE EMAIL
Berenberg Michael Stoner +44 20 3465 2643 [email protected]
BMO Andrew Breichmanas +44 20 7246 5430 [email protected]
Canaccord Genuity Rahul Paul +1 416 869 7289 [email protected]
Clarus Securities Nana Sangmuah +1 416 343 3350 [email protected]
Haywood Securities Geordie Mark +1 604 697 6112 [email protected]
Numis Securities Justin Chan +44 207 260 1430 [email protected]
Pareto Securities Jack Garman +44 207 786 4383 [email protected]
PI Financial Chris Thompson +1 604 718 7549 cthompson@pifi nancial.com
Raymond James Tara Hassan +1 604 659 8064 [email protected]
RBC Dan Rollins +1 416 842 9893 [email protected]
Scotia Bank Ovais Habib +1 416 863 7141 [email protected]
LISTINGS AND SECURITY IDENTIFIERS
CONTACT INFORMATION
Evelyn HsuAccount Manager, Emerging Issuer Solutions (EIS)510 Burrard Street, 3rd FloorVancouver, British Columbia V6C 3B9T 604 661 9436 M 778 875 1367F 604 661 [email protected]
4
Design and production: – Tel.: +33 (0)1 55 32 29 74
www.endeavourmining.com
CORPORATE OFFICE5 Young StreetLondonUnited Kingdom W8 5EH+44 203 011 2723
OPERATIONS OFFICECroisement Boulevard Latrille et rue du Lycée TechniqueAbidjan, 08 BP 872Côte d’Ivoire +225 22 48 99 00
CONTACT US
[email protected]+44 203 011 2719