TSX:EDV Endeavour Mining April 2016 Corporate Presentation CREATING A PREMIER AFRICAN GOLD PRODUCER
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP market prices of mining consumables, possible variations in ore reserves, performance measures with no standard meaning under IFRS. This grade or recovery rates; failure of plant, equipment or processes to operate presentation contains “forward -looking statements” including but not as anticipated; accidents, labour disputes, title disputes, claims and limited to, statements with respect to Endeavour’s plans and operating limitations on insurance coverage and other risks of the mining industry; performance, the estimation of mineral reserves and resources, the timing delays in the completion of development or construction activities, changes and amount of estimated future production, costs of future production, in national and local government regulation of mining operations, tax rules future capital expenditures, and the success of exploration activities. and regulations, and political and economic developments in countries in Generally, these forward-looking statements can be identified by the use of which Endeavour operates. Although Endeavour has attempted to identify forward-looking terminology such as “expects”, “expected”, “budgeted”, important factors that could cause actual results to differ materially from “forecasts” and “anticipates” . Forward-looking statements, while based on those contained in forward-looking statements, there may be other factors management’s best estimates and assumptions, are subject to risks and that cause results not to be as anticipated, estimated or intended. There uncertainties that may cause actual results to be materially different from can be no assurance that such statements will prove to be accurate, as those expressed or implied by such forward-looking statements, including actual results and future events could differ materially from those but not limited to: risks related to the successful integration of acquisitions; anticipated in such statements. Accordingly, readers should not place risks related to international operations; risks related to general economic undue reliance on forward-looking statements. Please refer to Endeavour’s conditions and credit availability, actual results of current exploration most recent Annual Information Form filed under its profile at activities, unanticipated reclamation expenses; changes in project www.sedar.com for further information respecting the risks affecting parameters as plans continue to be refined; fluctuations in prices of metals Endeavour and its business. including gold; fluctuations in foreign currency exchange rates, increases in CREATING A PREMIER AFRICAN GOLD PRODUCER 1
Endeavour Mining Overview Intermediate West African Gold Producer with 4 Producing Mines at Low AISC SENEGAL MALI – 2015 production: 517 koz Tabakoto Mine Karma GAMBIA – 2016 production: 535-560koz Project BURKINA FASO – 2015 AISC : 922 US$/oz GUINEA- Bamako – Ouagadougou BISSAU 2016 AISC: US$870 - 920/oz – Houndé GUINEA Total Reserves of 5.8 Moz Project – Total M&I resources of 10.2 Moz – Inferred Resources: 2.3 Moz CÔTE (all amounts above exclude Karma) SIERRA D’IVOIRE LEONE GHANA Attractive Project Pipeline Ity Mine and – Houndé Project construction started, first gold pour CIL Project LIBERIA Agbaou expected by Q4-2017 Mine Accra Nzema – Ity CIL Project feasibility study expected mid-2016 Mine Abidjan Operations Office Karma set to become our 5 th mine First gold pour announced on April 11 th 2016 – – Production of 110-120koza (years 1 to 5) with immediate cash flow generation As at April 11, 2016 Share price: C$14.36 Issued shares: 59m – True Gold transaction expected to close end of April 2016 Market cap: US$650m EV: US$794m See Appendix for details of mineral resources and mineral reserves, stated on a 100% basis. 2 CREATING A PREMIER AFRICAN GOLD PRODUCER
Building A Premier African Gold Producer Current Gold Production Profile (100%) and AISC (Mine-Level, US$/oz) 1,000 $1,200 $1,137 +900koz Strategic Objective 900 $1,100 for 2018-2020 800 $1,010 $1,000 700 $922 ~ 900 koz 600 $900 517koz 500 462koz YEARLY PRODUCTION $800 400 $800 317koz 300 $700 < 800$/oz 220koz 200 167koz $600 ALL IN CASH COST 83koz 100 0 $500 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E 10+ year Youga: 1 st acquisition, (mature mine sold Feb 2016) Agbaou: FS in 2012, commissioned in 2014 Ity Heap Leach : 5 th mine, potential to extend to 2019/2020 Nzema: 2 nd acquisition, recapitalized MINE LIFE IN OUR CORE ASSETS with definition of additional resources and CIL reserves Tabakoto: 3 rd acquisition, mill expanded, Houndé: Houndé Project construction started, first gold pour converted to owner mining, improved mill feed expected by Q4-2017 Karma: Transaction to close in April 2016 3 CREATING A PREMIER AFRICAN GOLD PRODUCER
Dynamic Portfolio Management AISC, US$/oz Portfolio Strategic Matrix 4 Strategic Levers $1,100/oz Decreased costs $1,050/oz from >1,300/oz 1 Youga OPERATIONAL (40-45koz) Nzema $1,000/oz EXCELLENCE (110-130koz) Tabakoto $950/oz 2 Cut-back (155-175koz) Optimization PROJECT + exploration DEVELOPMENT $900/oz Prolong Ity HL Develop CIL project Ity HL (65-75koz) 3 (65-75koz) $850/oz UNLOCK EXPLORATION VALUE $800/oz 4 OPPORTUNISTIC $750/oz Ity CIL DFS in progress M&A APPROACH Houndé (120 - 150koz) Karma (200koz) $700/oz (110-120koz) Agbaou (165-175koz) $650/oz 1 2 3 4 5 6 7 8 9 10 11 12 13 Mine life, years 4 CREATING A PREMIER AFRICAN GOLD PRODUCER
Operational excellence – Delivering objectives 1 1) Increase Production 2) Decrease All-in Sustaining Cash Costs Production, on a 100% basis in koz AISC, in US$/oz $1,137/oz +11% 535-560koz 517koz -9% 466koz $1,010/oz $922/oz 324koz $870-920/oz 2013A 2014A 2015A 2016 Guidance 2013A 2014A 2015A 2016 Guidance (post-Youga sale) (post-Youga sale) 3) Increase Cash Generation 4) Reduced Net Debt Free cash flow before tax, WC & financing costs, in US$m (realized gold price) x2.4 -43% $90m $85m $254m $227m $144m $35m $28m* (US$1,392/oz) (US$1,264/oz) (US$1,157/oz) (US$1,150/oz) 2013A 2014A 2015A 2016 Guidance 2013A 2014A 2015A (post-Youga sale) *Excludes Agbaou capex CREATING A PREMIER AFRICAN GOLD PRODUCER 5
Operational excellence – Mine production and AISC 1 Group AISC Production, All-in Sustaining Cash Costs, decreased by 9% in koz on a 100% basis in US$/oz $1,010 200 +32% in 2014 $922 2016E 2015 2014 621 in 2015 Agbaou 181 576 180 650-700 +19% 165 -175 160 2016E 2015 2014 155 -175 Tabakoto 1,335 151 -20% 147 1,067 140 920-970 127 2016E 2015 2014 1,036 Nzema 120 115 110-130 1,064 110 970-1,020 100 2016E 2015 2014 81 Ity 683 77 80 800-850 68 65-75 60 2016E 2015 2014 824 Youga 1 913 7-8 40 980-1,030 Youga 1 Agbaou Tabakoto Nzema Ity 2014 2015 2016E 2014 2015 2016E 2014 2015 2016E 2014 2015 2016E 2014 2015 2016E 450 600 750 900 1,050 1,200 1,350 1,500 1 2016 pre-disposal, estimate for the pre-sale period ended February 29, 2016. CREATING A PREMIER AFRICAN GOLD PRODUCER 6
Operational excellence – Improved Balance Sheet 1 • Net debt reduced by 43% in 2015, from US$254 million to US$144 million with US$60 million debt voluntarily reimbursed • Strong liquidity and financing sources of $352 million and improved net debt position supports: – Karma ramp-up from final commissioning through to commercial production – Houndé construction, with potential production start-up anticipated in 2018 – Expanded exploration programs as well as future growth Significantly decreased net debt position (US$m) Liquidity and Financing Sources (US$m) Net Debt Cash Position $352m 50 $254m 62 $194m 20 $144m 110 $110m $110m $69m $62m Dec-14 Dec-15 EDV + TGM Dec-14 Dec-15 EDV + TGM EDV Cash Undrawn RCF Proceeds from La Mancha Houndé Total Liquidity + La Mancha + La Mancha Capacity 1 Balance Youga Sale Equity Leasing equity + equity + (Dec 31/15) Investment capacity Youga Youga proceeds proceeds 1 RCF of US$350 million, maturity date March 2020, semi-annual reductions commencing September 2018, annual interest based on LIBOR + a 3.75% to5.75% margin CREATING A PREMIER AFRICAN GOLD PRODUCER 7
Recommend
More recommend
