CREATING A PREMIER WEST AFRICAN GOLD PRODUCER · CREATING A PREMIER WEST AFRICAN GOLD PRODUCER...
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CREATING A PREMIER WEST AFRICAN GOLD PRODUCER EDV:TSX FACTSHEET NOVEMBER 2016 2016E PRODUCTION 575 koz GOLD MINES IN WEST AFRICA 5 TOP TIER PROJECTS 2 Endeavour Mining is a premier intermediate gold producer, focused on developing a portfolio of high quality mines in the prolific West-African region where it has established a solid operational and construction track record. Endeavour operates 5 mines in Côte d’Ivoire, Burkina Faso, Mali, and Ghana. In 2016, it expects to produce between 575koz and 610koz at an AISC of US$870 to US$920/oz. Endeavour is currently building its Houndé project in Burkina Faso, which is expected to become its flagship low-cost mine. The development of the Houndé project is expected to lift Endeavour’s group production to +900kozpa and decrease its average AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives to +10 years. <US$920 2016E AISC/OZ
Transcript of CREATING A PREMIER WEST AFRICAN GOLD PRODUCER · CREATING A PREMIER WEST AFRICAN GOLD PRODUCER...
CREATING A PREMIER WEST AFRICAN GOLD PRODUCER
EDV:TSXFACTSHEET NOVEMBER 2016
2016E PRODUCTION575 kozGOLD MINES
IN WEST AFRICA5 TOP TIERPROJECTS2
Endeavour Mining is a premier intermediate gold producer, focused on developing a portfolio of high quality mines in the prolific West-African region where it has established a solid operational and construction track record. Endeavour operates 5 mines in Côte d’Ivoire, Burkina Faso, Mali, and Ghana. In 2016, it expects to produce between 575koz and 610koz at an AISC of US$870 to US$920/oz. Endeavour is currently building its Houndé project in Burkina Faso, which is expected to become its flagship low-cost mine. The development of the Houndé project is expected to lift Endeavour’s group production to +900kozpa and decrease its average AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives to +10 years.
<US$9202016E AISC/OZ
2015 PRODUCTION INCREASED PRODUCTION AND DECREASED COSTS
INCREASED CASH GENERATION
EXTENDED MINE LIFE BY ADDING RESERVES
EMPLOYEES AS OF DECEMBER 2015
P+P RESERVES AS OF DECEMBER 20151
M+I RESOURCES AS OF DECEMBER 20151
Production, in koz AISC, in US$/oz
FCF before tax, WC & financing costs, in US$m *Excludes Agbaou capex
All amounts on a 100% basis 2 Ity Mine is included for the post-acquisition period of November 28
to December 31, 2015. During 2015, the Ity Mine produced 80,807 ounces1 Reserves and Resources inclusive of Karma
Keys facts & figures
Total
517koz
Total
6.7Moz
Total
12.8Moz
13%21%
29%36%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
45%
5%
11%
39%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
40%12%
14%
34%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
Total
3,500 people
28%22%
50%
Côte d’Ivoire
Mali
Ghana
Total
517koz
Total
6.7Moz
Total
12.8Moz
13%21%
29%36%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
45%
5%
11%
39%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
40%12%
14%
34%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
Total
3,500 people
28%22%
50%
Côte d’Ivoire
Mali
Ghana
Total
517koz
Total
6.7Moz
Total
12.8Moz
13%21%
29%36%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
45%
5%
11%
39%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
40%12%
14%
34%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
Total
3,500 people
28%22%
50%
Côte d’Ivoire
Mali
Ghana
Total
517koz
Total
6.7Moz
Total
12.8Moz
13%21%
29%36%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
45%
5%
11%
39%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
40%12%
14%
34%
Burkina Faso
Côte d’Ivoire
Mali
Ghana
Total
3,500 people
28%22%
50%
Côte d’Ivoire
Mali
Ghana
$1,137/oz
466koz
517koz
575-610koz
2013 2014 20152 2016 E
324koz$1,010/oz $922/oz
$870-920/oz
2013 2014 2015 2016 E
$28m* $30m
$80m
$135m
$1,264/ozrealized
Realized with$1,157/oz
Estimated withH1 $1,225/ozH2 $1,250/oz
$1,392/ozrealized
REDUCED NET DEBT
31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15
3.0Moz4.1Moz
6.1Moz6.7Moz
+93%
31-Dec-13 31-Dec-14 31-Dec-15
$227m$254m
$144m
-44%
[ [ [ [] ] ] ]
30-Sept-16
$14m
Endeavour now offers exposure to near and long-term growth potential in addition to current production
STRONG EXPOSURE TO GOLD
SIGNIFICANT PRODUCTION GROWTH
LONG-TERM UPSIDE
800koz
900kozc. 900koz
575-610koz
~80koz
517koz
700koz
400koz
600koz
300koz
500koz
200koz
100koz
2010 A 2013 A 2014 A 2015 A 2016 E 2019 E
Build Houndé & Ity CIL
Acquired Ity
Built Agbaou
Acquired Nzema and
Tabakoto
IMMEDIATE CASHFLOW NEAR-TERM GROWTH
from production from projects from exploration
AGBAOU MINE CÔTE D’IVOIRE QUICK FACTS
Ownership: 85%
Mine and Mill type:Up to 2.2 Mtpa Gravity/CIL plant Open Pit – Contractor Mining (BCM)
2016E Production:180-195koz @ US$550-600/oz AISC
Expected Mine Life:7 years from current Reserves
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 successfullycommissioned in July, providing increased processing flexibility
TABAKOTO MINEMALI QUICK FACTS
Ownership: 80-90% depending on pit
Mine and Mill type:1.4 Mtpa Gravity/CILTabakoto (UG), Segala (UG) & Kofi C (OP) Pit Mine
2016E Production: 155-175koz @ US$970-1,050/oz AISC
Expected Mine Life:4+ years from current Reserves
RECENT AND UPCOMING CATALYSTS
Accomplished- I n 2013 the mill was doubled from
2,000 tpd to 4,000 tpd- Segala ore production commenced inQ4 2014
- Kofi C deposit commenced 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
ITY MINECÔTE D’IVOIRE QUICK FACTS
Ownership: 55%
Mine and Mill type: 950ktpa Heap Leach Open pit / Heap Leach
2016E Production:70-80koz @ US$800-850/oz AISC
Mine Life:3 years from current Reserves + upside
RECENT AND UPCOMING CATALYSTS
Accomplished- Gained majority ownership in 2014- Producing at historic highs (+50% since
2012 level)- I ncreased heap leach capacity from
0.6mtpa to 1.0mtpa- I ncreased 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
- Potential to increase ownership
5 GOLD MINES 4 WEST AFRICAN COUNTRIES
q West Africa’s Birimian greenstone belt is one of the most prospective and under-explored areas of the world
q West-Africa is a fast-growing gold region
q Endeavour has a successful track record of building and operating mines in West Africa
q Opportunity to consolidate region to benefit from cluster-based synergies
q Favorable mining jurisdictionsq Excellent and long-standing
government relationshipsKARMA MINEBURKINA FASOQUICK FACTS
Ownership: 90%
Mine and Mill type: 4 Mtpa Heap Leach Open Pit
Average Annual Production (y 1-5): 110-120koz @ <US$700/oz AISC
Expected Mine Life:8 years from current Reserves
RECENT AND UPCOMING CATALYSTS
Accomplished- First gold production achieved on April 11th 2016 - Started leach pad ore stacking and irrigating
in early March 2016
East LondonPort ElizabethCap de
Bonne-Espérance
Parc national Kruger
Durban
Le Cap
Welkom
Bloemfontein
Kimberley
Soweto
Pietermaritzburg
PRETORIA
Johannesburg
ACCRA
BAMAKOOUAGADOUGOU
ABIDJAN
Operations office
Tabakoto Mine
Ity Mine & CIL Project
Houndé Project
Karma Mine
Nzema Mine
Agbaou Mine
Spain
Tunisia
Italy
Cyprus
Jordan
SyriaLebanon
Israel
Palestine
AzerbaijanGeorgia
Turkey
Iran
Turkmenistan
Iraq
Sardegna (Ita.)
Sicilia
Malta
Djerba
Kriti (Crete)
Greece
Albania
Morocco
Algeria Libya
Sudan
Egypt
Kuwait
Qatar
Bahrain
U.E.A
Oman
Om
an
SaudiArabia
Yemen
Somalia
Eritrea
Ethiopia
KenyaUganda
Chad
Cameroon
GabonCongo
D. R. of Congo
CentralAfrican Republic
MALI
Portugal
Islas
CÔTE D’IVOIRE
GHANA
BURKINA FASO
Bioko(Equat. G.)
E. GuineaSao Tomeand Principe
Annobon (EG)
AngolaZambia
Malawi
Rwanda
Burundi
Tanzania
Mad
agas
car Réunion (Fr.)
Mauritus
ComorosMayotte (Fr.)
Farquhar Group(Sey.)
Seychelles
Suqutra (Yem.)
Farasan
Qeshm
Amirante Islands(Sey.)
Bassas da India (Fr.)
Europa (Fr.)
Djibouti
Botswana
Afrique du Sud
MozambiqueNamibie
Lesotho
Zimbabwe
Swaziland
5 GOLD MINES4 WEST AFRICAN COUNTRIES
WHY WEST AFRICA?
NZEMA MINEGHANA QUICK FACTS
Ownership: 90%
Mine and Mill type:1.6 Mtpa Gravity/CILOpen Pit – Contractor Mining (BCM)
2016E Production:90-100koz @ US$1,050-1,125/oz AISC
Expected Mine Life:4 years from current Reserves
RECENT AND UPCOMING CATALYSTS
Accomplished- I ncreased 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 Adamus pushback ($13 million) in 2016 should give access to higher grades
2 TOP TIER PROJECTSIN WEST AFRICA
HOUNDÉ PROJECTBURKINA FASO
The construction of the Houndé Project was launched in April 2016. With its robust grade and low cash costs, Houndé ranks amongst West Africa’s high quality development projects.
QUICK FACTS
Ownership:90%
Status:Construction underway1st gold pour expected in Q4 2017P+P Reserves: 2.1Moz
M+I Resources: 2.5Moz
Mine Type:Open Pit
Mill Type:3.0 Mtpa Gravity/CIL
Upfront Capital:US$328M, inclusive of US$47M for owner-mining fleet
LOMP Avg Production: 190koz @ AISC <US$709/oz
Expected Mine Life:+10 years
Project Economics:NAV 5% of US$342M and IRR of 32% with US$1,250/oz
RECENT AND UPCOMING CATALYSTS
Accomplished- Construction progresing on time
and within budget- In line with objective of employing
90% burkinabés nationals
Upcoming- First gold pour expected in Q4 2017
BURKINA FASOOuagadougou
Houndé Project
QUICK FACTSOwnership: 55%
Status:Feasibility Study announced on Nov, 10
P+P Reserves (CIL): 1.9Moz
M+I Resources: 3.1Moz
Mine Type: Open Pit
Mill Type:3.0Mtpa CIL (upgraded from 2.0mtpa in PFS)
Upfront Capital: Approx. US$307M
LOMP Avg Production: 114kozpa @ US$603/oz AISC
Mine life:14 years
RECENT AND UPCOMING CATALYSTSAccomplished- Positive Feasibility Study - Positive metallugical tests- Positive support from local governmentUpcoming- Update of Feasibility Study to include the
- Potential to increase ownership
2 TOP TIER PROJECTSIN WEST AFRICA
ITY CIL PROJECTCÔTE D’IVOIRE
SIGNIFICANT CONSTRUCTION EXPERTISE IN WEST AFRICA
Endeavour has an experienced construction services team, with a proven track record of delivering West African projects on time and on budget. Its core construction services team has been successfully developing projects together for over 10 years.
Achievements of this core team include: - 7 projects built over past 10 years- $2.4 billion in total capex- All projects were delivered on time and within budget - Projects built notably in Côte d’Ivoire, Mali, Sierra Leone,
Ghana, and Senegal- Significant optimization on capex - Oversight from scoping study stage to production
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.
CÔTE D’IVOIRE
Abidjan
Agbaou Mine
Ity CIL Project
recent high-grade Bakatouo and CollineSud discoveries and expected further resource conversion of existing deposits
Project Economics:NAV 5% of US$411M and IRR of 36% with US$1,250/oz
EXECUTIVE TEAM
Sébastien de Montessus CEO & President
Adriaan "Attie" Roux COO
Vincent Benoit EVP CFO & Corporate Development
Patrick Bouisset EVP Exploration & Growth
Morgan Carroll EVP Corporate Finance & General Counsel
Jeremy Langford EVP Construction Services
CONTACTS
Martino De CiccioVP Strategy and Investor [email protected] + 33 1 70 38 36 95
RESERVES AND RESOURCES AS OF DECEMBER 31ST, 2015
Mine/Project
Reserves Resources inclusive of reserves Reserves ResourceProven & Probable Measured & Indicated Inferred Gold Price lower cutoff
(Mt) Au g/t (koz) (Mt) Au g/t (koz) (Mt) Au g/t (koz) US$/oz Au g/tAgbaou 13.2 2.4 1,027 14.4 2.54 1,180 1.2 1.71 65 1,350 0.5Tabakoto 6.4 3.5 725 18.5 3.09 1,844 9.0 3.55 1,023 1,350 0.5 to 1.0Nzema 4.7 2.4 356 34.6 1.34 1,490 5.9 1.28 244 1,350 0.5Ity Mine & CIL 30.4 1.7 1,613 61.4 1.57 3,106 14.1 1.52 687 1,150 0 to 0.8Karma 33.2 0.9 949 75.2 1.08 2,621 65.3 1.13 2,362 1,250 0.2 to 0.5Hounde 30.6 2.1 2,075 37.9 2.09 2,551 3.2 2.62 274 1,300 0.5Total 6,744 12,793 4,655
HIGHLIGHTSFINANCIAL HIGHLIGHTS AS OF SEPTEMBER 30TH 2016
Revenue All-in sustaining margin
US$474million US$137million
LIQUIDITY AND FINANCING SOURCES AS OF SEPTEMBER 30TH 2016
Cash position Undrawn from the US$350 million RCF Equipment financing
US$137million US$210million US$50million
MARKET DATA
Shares outstanding as at October 31, 2016 Market cap as at November 7, 2016 Net debt as at September 2016Enterprise value as at November 7, 2016
93.4million US$1.67 billion
US$14 million US$1.81 billion
PRODUCTION/MINE-LEVEL AISCProduction, in koz on 100% basis Mine-level AISC in US$/oz
2014A 2015A 2016 Guidance 2014A 2015A 2016 GuidanceAgbaou 146,757 181,365 180,000 - 195,000 621 576 550 - 600Nzema 115,129 110,302 90,000 - 100,000 1,036 1,064 1,050 - 1,125Tabakoto 127,323 151,067 155,000 - 175,000 1,335 1,067 970 - 1,050
Ity1 5,689 70,000 - 80,000 n/a 683 800 - 850
n/a n/a 50,000 - 60,000 n/a n/a 750 - 850
Total 465,770 516,646 575,000 - 610,000 1,010 922 870 - 9201 Ity Mine is included for the post-acquisition period of November 28 to December 31, 2015.During 2015, the Ity Mine produced 80,807 ounces.
Henri de JouxEVP People & Public Affairs
2 Karma AISC excludes pre-commercial production
Karma2
