Endeavour Mining Plc · TSX:EDV
Endeavour Mining — European Gold Forum 2015
26 slides from Endeavour Mining's conference presentation, Apr 14, 2015
Slide 1: Endeavour Mining Management Presentation
Endeavour Mining Management Presentation April 2015 INTERMEDIATE GOLD PRODUCER DELIVERING PROFITABILTY
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements This presentation contains “forward-looking statements” including variations in ore reserves, grade or recovery rates; failure of but not limited to, statements with respect to Endeavour’s plans plant, equipment or processes to operate as anticipated; and oper
Slide 3: Business Overview
Business Overview • A Canadian-based intermediate gold producer – 4 producing mines across 4 West African countries – Fully permitted and internally financed Houndé project • Leading West African producer – 2015E production of ~500,000 ozs – Q1 2015 production of 124,000 ozs – AISC/oz in mid-US$900
Slide 4: Investment Case
Investment Case Extended credit facility to March 2020, ~3.5 years to first required repayment Track record of Demonstrated exploration 2P Reserves increased to reducing costs and successes that have 4.5Mozs (Dec 2014) from 3.0Mozs (Dec 2012) generating cash flow increased reserves and at current go
Slide 5: Leading Intermediate Producer in West Africa
Leading Intermediate Producer in West Africa 2014 Gold Production – West Africa Seniors Intermediates & Junior Producers Based on Company reports. AngloGold Ashanti and IAMGOLD presented on an attributable ounce basis for JV interests, West African gold production only. INTERMEDIATE GOLD PRODUCER DE
Slide 6: With Near-term Production Growth
With Near-term Production Growth +700,000 ozs Houndé: FS in 2013, fully permitted, potential mid-2017 production Expect to finance from cash flow, corporate credit facility, and leasing of mining fleet Agbaou: FS in 2012, construction and start up in 2013, low-cost operations Tabakoto: 3rd acquisiti
Slide 7: Sustainable Low Operating and Corporate Costs
Sustainable Low Operating and Corporate Costs AISC/ounce – Cost trend versus Medium Producer AISC 2014 Corporate Efficiency Ratio2 G&A + share comp as % $ per Peer ounce sold of gross 2015E - Significant declines in revenue ($/Au-eq oz) fuel costs and FX rates lead to savings Centamin 2.5% $31 • Fue
Slide 8: 2015 AISC Guidance and Margin at $1,200/oz
2015 AISC Guidance and Margin at $1,200/oz 2015 AISC Margin and Free Cashflow (US$ million, forecast) • 2015 guidance of 475,000 to 500,000 ozs at AISC/oz of $930 to $980 Revenue $585 • At $1,200 gold, approx. $100 million of free Less: AISC Costs ($930-$980/oz) 465 cash flow All-in sustaining margi
Slide 9: Maintaining an Efficient Capital Structure
Maintaining an Efficient Capital Structure • $300 million drawn on $350 million credit facility (“RCF”) • Significant headroom maintained Potential Agbaou Houndé during Agbaou construction construction construction period period • The RCF plus operating cash flow and equipment leasing, provides expe
Slide 10: Share Price Since 2013 and Subsequent Accomplishments
Share Price Since 2013 and Subsequent Accomplishments 2013 Today 3 and building # of mines 4 Agbaou mine Houndé FS in progress, Fully permitted; 2P reserve 2.1 project unpermitted Mozs; 10 year mine life Production 324,275 ozs 475 – 500,000 ozs AISC/oz (US$) $1,137 < $1,000 in Q3+Q4 2014 2P Reserves
Slide 11: Growing Mineral Reserves
Growing Mineral Reserves MINERAL RESERVES – Mining Depletion & Reserve Additions • Added 2.3Mozs from 2013 • 2014 exploration program: • $2.1M at Agbaou, exploration additions almost all oxides • $9.2M at Tabakoto, drilling below development is successfully upgrading Inferred resources • $6.7M at Ho
Slide 12: Agbaou Mine – A construction and operating success story
Agbaou Mine – A construction and operating success story • Demonstrated strong, sustained performance in 2014 − Produced 146,757 ozs − Cash cost of $523/oz − AISC of $621/oz − Strong cash flow generator • Successful resource definition program – 2014 replaced mined ounces and extended life – Expande
Slide 13: Tabakoto Mine – Investment phase completed
Tabakoto Mine – Investment phase completed Kofi Property • Three sources of lower cost ore • New Kofi C open pit commenced production in January 2015 • Tabakoto plant at sustainable levels above 4,000 tonnes per day • Demonstrating potential for steady replacement of reserves − 2014 net gain in 2P r
Slide 14: Developing the Houndé Project
Developing the Houndé Project 70% Peer Projects – Project Status, Reserves/Resources and Project IRRs at $1,300 • Received mining permit in Feb 2015 60% Fekola (B2Gold) • 34% increase in reserves in Dec 2014 Yaramoko (Roxgold) Karma 50% • (True Gold) Updated mine plan and economics: – 2P Reserve1 of
Slide 15: Current Valuation and Analyst Views
Current Valuation and Analyst Views Enterprise Value Analyst Coverage (April 9, 2015) Analyst coverage sourced from Bloomberg. Peel Hunt sourced by Share price (April 1, 2015) C$0.61 BMO Capital Markets C$0.75 author. This list is provided for informational purposes only. The Shares outstanding 413.
Slide 16: Summary – Key objectives for 2015
Summary – Key objectives for 2015 • Produce 475,000 to 500,000 ounces • Maintain AISC/oz improvements • Q1 2015 at mid-point of $930-$980 • To extend mine life through exploration success • To be profitable • Use free cash flow to reduce debt Positioned for a value re-rating INTERMEDIATE GOLD PRODUC
Slide 17: Appendices
Appendices • 2015 Production and AISC/oz Guidance by Mine • Board of Directors • Management • Endeavour’s Operating Mines – Summary Table • FY 2014 Cash Cost Detail by Mine • Resources and Reserves • Company Profile INTERMEDIATE GOLD PRODUCER DELIVERING PROFITABILITY 17
Slide 18: 2015 Production and AISC/oz Guidance by Mine
2015 Production and AISC/oz Guidance by Mine Production AISC/oz Guidance Range (ozs) Guidance Range ($/oz) Agbaou 150,000 - 155,000 $690 - $740 Nzema 110,000 - 115,000 $1,000 - $1,050 Tabakoto 155,000 - 165,000 $950 - $1,000 Youga 60,000 - 65,000 $975 - $1,025 475,000 - 500,000 $883 - $933 Plus: Cor
Slide 19: Board of Directors
Board of Directors Michael Beckett, Chairman Former Chairman, Ashanti Goldfields and former MD, Consolidated Gold Fields Ian Cockerill Extensive African mining experience, Former CEO, Gold Fields Frank Giustra Founder: Wheaton River, Silver Wheaton and Pacific Rubiales; Former CEO, Yorkton Securitie
Slide 20: Management
Management Neil Woodyer, CEO • Founder of Endeavour, 30+ years experience in natural resources • Project financed and advised on the acquisition of over 30 mines Attie Roux, COO • Built / commissioned Nzema processing plant • 34 years as metallurgist at AngloGold Ota Hally, CFO • Chartered Accountan
Slide 21: Endeavour's Operating Mines – Summary Table
Endeavour’s Operating Mines – Summary Table Agbaou Gold Mine Tabakoto Gold Mine Youga Gold Mine Nzema Gold Mine (85% Endeavour, 10% Côte (80% Endeavour, 20% Mali) (90% Endeavour; 10% Burkina (90% Endeavour, 10% Ghana) d’Ivoire, 5% SODEMI) (Kofi: 90% Endeavour, 10% Mali) Faso) M&I: 13.9Mt @ 2.5 g/t f
Slide 22: FY 2014 Cash Cost Detail by Mine
FY 2014 Cash Cost Detail by Mine Agbaou Nzema Tabakoto Youga Total Mining Physicals Total tonnes mined - Open pit 000t 19,560 8,769 7,046 4,993 Total ore tonnes - Open pit 000t 2,741 1,366 638 1,161 Total ore tonnes - Underground 000t - - 807 - Total tonnes milled 000t 2,241 1,587 1,485 991 Gold sol
Slide 23: Mineral Reserves as at December 31, 2014
Mineral Reserves as at December 31, 2014 Reserves Proven Probable Proven & Probable Gold Mine / Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Price Mt g/t k Ozs Mt g/t k Ozs Mt g/t k Ozs US$/oz Nzema1 - Total 5.2 2.0 339 2.1 2.3 156 7.3 2.1 496 US$ 1,350 Attributable - 90% 305
Slide 24: Mineral Resources as at December 31, 2014
Mineral Resources as at December 31, 2014 Resources (including reserves) Lower Measured Indicated Measured & Indicated Inferred cutoff Mine / Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Mt Au g/t koz Mt Au g/t koz Mt Au g/t koz Mt Au g/t koz Au g/t Nzema1
Slide 25: Company Profile
Company Profile Share Price (March 31, 2015) Balance Sheet (December 31, 2014) CDN$0.58 Cash position $62 million Recent Share Price AUD$0.60 Market Cap CDN$240 million Drawn down from $350 million debt facility $300 million Av. daily shares in March 2015 Canada TSX:EDV 2.9 million Shareholder Geogr
Slide 26: Neil Woodyer, CEO; Doug Reddy, SVP Business Development
Neil Woodyer, CEO [email protected] +377 97 98 7130 Doug Reddy, SVP Business Development [email protected] +1 604 609 6114 26