Endeavour Mining Plc · TSX:EDV

Endeavour Mining — Endeavour Financial — BMO Global Resource Conference 2009

26 slides from Endeavour Mining's conference presentation, February 2009

  1. Slide 1: Endeavour Financial Corporation Corporate Presentation

    MERCHANT BANKING ENDEAVOUR FINANCIAL CORPORATION CORPORATE PRESENTATION BMO Global Resource Conference, February 2009

  2. Slide 2: Presenters and forward-looking information

    ENDEAVOUR FINANCIAL CORPORATION Neil Woodyer Chief Executive Officer Dr. Sally Eyre Director Marketing & Business Development This presentation may contain forward-looking information relating to the future performance of Endeavour Financial. Forward-looking information, specifically those concernin

  3. Slide 3: Introduction

    INTRODUCTION  Independent merchant bank, providing specialist financial advisory services to global natural resource sector since 1988  Listed on the Toronto Stock Exchange (EDV)  Offices in Monaco, George Town, London, Vancouver  25 experienced mining finance professionals  Specialist financia

  4. Slide 4: Endeavour's Business Model

    ENDEAVOUR’S BUSINESS MODEL (4) Endeavour provides specialist (1) Endeavour originates financial advisory Resource merchant banking services to the Assets investments global natural resource sector (2) Endeavour Debt Finance; Corporate has a proprietary Finance; M&A; and Technical Management capital

  5. Slide 5: Mining Finance Professionals

    MINING FINANCE PROFESSIONALS  Experienced with broad spectrum of expertise:  Commercial, Investment & Merchant Banking  Equity Fund Raising, Distribution & Syndication  Company Management & Company Building  Technical Review & Analysis  Financial Analysis & Valuation  Corporate, Securities &

  6. Slide 6: Recent Equity Offering

    RECENT EQUITY OFFERING  Transaction  Public Offering by way of Short Form Prospectus, 65 million units (CDN$1.77 per Unit; each unit consisting of one ordinary voting share and one-half of one share purchase warrant) for gross proceeds of CDN$115 million (closed February 4, 2009).  Use of Proceed

  7. Slide 7: Extension of Endeavour's Business Model

    EXTENSION OF ENDEAVOUR’S BUSINESS MODEL  Continue with existing merchant banking business plan  Long-term client relationships  Transaction oriented culture  Specialist financial advisory services  Unique business model that continues to evolve  Diverse & extensive skill-set (in-house) Extensi

  8. Slide 8: Attractive Valuation Environment for Long-Term Gold

    ATTRACTIVE VALUATION ENVIRONMENT FOR LONG-TERM GOLD  Global economic factors – investment demand expected to increase  Governments fighting financial stress with limited success - battle between policy reflation and economic recession is ongoing and uncertain  Short-term gold price outlook is mix

  9. Slide 9: Dysfunctional Market – Gold Price & Share Price

    DYSFUNCTIONAL MARKET – GOLD PRICE & SHARE PRICE 250 TED Spread spikes in August 2007, Credit Crisis starts impacting global markets  Valuation Gap Gold Price  Endeavour tracks a universe of 50 junior gold Senior Producers producers (25,000 to 250,000 ozs per year). 200 +32% Junior Producers  Aggr

  10. Slide 10: Company Building – The Wheaton River Example

    COMPANY BUILDING – The Wheaton River Example  In 2001, Wheaton River had C$20 million cash, a mine in closure, and no strategic plan - Endeavour made an investment with strategic partners to acquire ~20% and gained control of the board  Introduced Ian Telfer as CEO to implement a “growth through a

  11. Slide 11: Endeavour Approach

    ENDEAVOUR APPROACH  Source quality assets through extensive global network  Junior producers; Near-term producers; Non-core assets in Senior producers; Credit crunch assets; Private/family held assets  Target list of over 100 companies/projects identified with rankings based on multiple criteria

  12. Slide 12: Strategic Capital Investments

    STRATEGIC CAPITAL INVESTMENTS As at December Value Per Share Per Share  No Asset Backed Commercial Paper, CDO, 31, 2008 (US$ millions) US$ CDN$ CDS or complex derivatives  No Financial leverage, use of margin Equities 46.3 1.53 1.86  Core investments, include: Convertible loans 12.5 0.41 0.50 and

  13. Slide 13: Investment Opportunity

    INVESTMENT OPPORTUNITY  Re-capitalization enables Corporation to aggressively pursue gold sector investment opportunities  Exclusive alliance with Fiore (Frank Giustra) to source & develop unique investment opportunities (alliance extended to January, 2012)  Proactive management (regardless of ch

  14. Slide 14: Appendices

    APPENDICES 1) Financial Summary (Quarter Ended December 31, 2008) 2) Income Statement (Quarter Ended December 31, 2008) 3) Balance Sheet (Quarter Ended December 31, 2008) 4) Fiore Financial Corporation 5) Landmark Resource Transactions 6) Recent Advisory Mandates 7) Share Capitalization 8) Board of

  15. Slide 15: Financial Summary (Quarter Ended December 31, 2008)

    APPENDIX 1. FINANCIAL SUMMARY (Quarter Ended December 31, 2008)  Shareholders’ Equity decreased from US$236 million (CDN$8.31 per share) to US$125 million (CDN$4.98 per share)  Revenue of (US$107.4) million  Net loss of US$111.1 million, or US$3.68 per share  Cash US$4.8 million (at quarter ende

  16. Slide 16: Income Statement (Quarter Ended December 31, 2008)

    APPENDIX 2. INCOME STATEMENT (Quarter Ended December 31, 2008)  Investment Loss ($109.8) Quarter Ended 31-Dec-08 million REVENUE US$ million Comprised of realized losses on sale Investment loss ($109.8) Advisory fees 2.4 of investments of US$28 million, (107.4) interest and dividends of US$0.3 EXPE

  17. Slide 17: Balance Sheet (Quarter Ended December 31, 2008)

    APPENDIX 3. BALANCE SHEET (Quarter Ended December 31, 2008) As at December 31, 2008 US$ million ASSETS  Investments at Fair Value, $63.9 Cash $4.8 million Investments, at fair value 63.9 Accounts receivable and other assets 0.8 69.5  Cash $4.8 million Capital assets Intangible assets 0.4 26.5 Good

  18. Slide 18: Fiore Financial Corporation

    APPENDIX 4. FIORE FINANCIAL CORPORATION  Fiore is a private, boutique merchant banking firm focused on creating, financing and launching investment opportunities in the natural resource sector  Fiore provides Endeavour with exclusive access to the experience and contacts of Frank Giustra, Presiden

  19. Slide 19: Landmark Resource Transactions

    APPENDIX 5. LANDMARK RESOURCE TRANSACTIONS  Northern Orion: in its three way business combination with Yamana Gold and Meridian Gold in 2007, to create US$9.8 billion dollar Company.  Urasia Energy: in its business combination with SXR Uranium One in 2007. Combined value of $5.0 billion.  Wheaton

  20. Slide 20: Recent Advisory Mandates

    APPENDIX 6. RECENT ADVISORY MANDATES  Petro Rubiales Energy : Acquisition of Pacific Stratus Energy, transaction valued at US$2.5 billion  Rusoro Mining: Acquisition of Gold Fields’ Venezuelan gold assets, transaction valued at US$523 million  Baja Mining: Sale of 30% interest in Boleo Copper Pro

  21. Slide 21: Share Capitalization

    APPENDIX 7. SHARE CAPITALIZATION  Issued & Outstanding Shares: 95,348,145 Options 2,877,500 Earn Out Shares* 2,374,757 Warrants 32,487,501  Fully Diluted: 133,087,903  Current Share Price: CDN$1.60  Market Cap: CDN $150 million  Domicile: Cayman Islands  Management Ownership: ~15% (direct and

  22. Slide 22: Board of Directors

    APPENDIX 8. BOARD OF DIRECTORS  Michael Beckett: Chairman  Currently non-executive deputy Chairman & senior independent director of Thomas Cook Group and non-executive Director of Egypt Trust Limited, Northam Platinum Ltd., Orica Ltd., Mvelaphanda Resources Limited and Color Mining Inc. Formerly,

  23. Slide 23: Board of Directors (continued)

    APPENDIX 8. BOARD OF DIRECTORS  Jorge L. Gamarci: Director  Has held numerous senior executive positions during banking career, including Managing Director at UBS Securities LLC, SVP, International Treasury at Bank of Montreal and EVP and General Manager of North American Head Office of Lloyds Ban

  24. Slide 24: Senior Management Team

    APPENDIX 9. SENIOR MANAGEMENT TEAM  Neil Woodyer: Chief Executive Officer: Chartered Accountant and former Chief Executive Officer of Lloyds International Trading  Bill Koutsouras: Executive VP, Chief Financial Officer, Secretary Professional accountant and CFA  David Rhodes: Managing Director, D

  25. Slide 25: Flow of Income

    APPENDIX 10. FLOW OF INCOME SHAREHOLDERS Investment Income 55% of Advisory Services Income (net management fee, (net operating expenses) performance fee, operating expenses) ADVISORY INCOME Management & Performance Fees INVESTMENT INCOME Retainers 2% and 20% (with 8% threshold) Realized gains and lo

  26. Slide 26: Endeavour Financial Corporation

    ENDEAVOUR FINANCIAL CORPORATION Endeavour Financial Corporation (“Endeavour” or “Corporation”) is an independent merchant banking company focused on the global natural resource sector. The Corporation offers advisory services in the project, corporate and debt capital markets; equity financings; mer

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