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Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
Mining in Ghana: A partnership - Endeavour Mining
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Mining in Ghana: A partnership - Endeavour Mining

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Republic of Ghana Roundtable Session …

Republic of Ghana Roundtable Session
Supported by Richard Thomas - EVP Technical
Services, Endeavour Mining

Published in: Business, Technology
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  • 1. GOLD PRODUCER  WEST AFRICA  CASH FLOW Mining In Ghana : A partnership 25 June 2014
  • 2. Disclaimer & Forward Looking Statements GOLD PRODUCER  WEST AFRICA  CASH FLOW 2 This presentation contains “forward-looking statements” including but not limited to, statements with respect to Endeavour’s plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “forecasts” and “anticipates”. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements. Please refer to Endeavour’s most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.
  • 3. GOLD PRODUCER  WEST AFRICA  CASH FLOW 3 Endeavour Delivers • West African gold producer with four operating mines producing between 400,000 and 440,000 oz in 2014 • AISC guidance of $985 to 1,070 per oz for 2014 • Q1 2014 record gold production: − Produced 105,912 ozs − Revenue of $137 million − Cash cost of $879/oz and AISC of $1,059/oz − All-in sustaining margin of $25 million • Potential to add ~180,000 oz/yr and expand low-AISC cost production base by advancing Houndé project – now in permitting • Reserves of 4 million ounces and Measured and Indicated Resources over 6 million ounces in the Inferred category
  • 4. GOLD PRODUCER  WEST AFRICA  CASH FLOW 4 West African Projects • Multiple operations, both open-pit and underground • West African focus, diversified jurisdictions • Accra-based operations management
  • 5. GOLD PRODUCER  WEST AFRICA  CASH FLOW 5 Tabakoto Underground Mining • Record gold revenue and production in 2013: − Produced 324,275 ozs − AISC of $1,174/oz − Revenue of $443 million − All-in sustaining margin of $93 million • Key achievements: − Agbaou mine completed ahead of schedule and under budget − Changed to owner mining in Tabakoto underground − Developing Segala underground mine − Kofi permitted and contributes to Tabakoto production schedule in 2015 − Houndé Project feasibility study completed and now in permitting Record Production and Key Achievements Gold Bar at Tabakoto
  • 6. Q1 2014 Highlights GOLD PRODUCER  WEST AFRICA  CASH FLOW 6 • Good cost profiles at three of our mines and, as expected, a high cost during transitional phase of optimization at Tabakoto • Q1 2014 AISC/oz of $1,059 is 10% lower than $1,174 in Q1 2013 (on a comparable basis) Agbaou1 Tabakoto Nzema Youga Total / Average Production (oz) 24,086 33,472 28,487 19,867 105,912 Cash cost / oz $594 $1,157 $890 $680 $879 AISC / oz $647 $1,320 $1,046 $758 $1,059 1 Agbaou production for 3 months of Q1 2014, cash cost and AISC only for Feb and March as commercial production was declared at the end of Jan 2014
  • 7. GOLD PRODUCER  WEST AFRICA  CASH FLOW 7 2014 Production Guidance Gold Production (ozs)1 2011 2012 2013 2014 Actual Actual Actual Guidance range Tabakoto, Mali 91,200 110,301 125,231 140,000 - 155,000 Nzema, Ghana 90,026 109,447 103,464 110,000 - 120,000 Agbaou, Côte d'Ivoire2 - - 6,132 85,000 - 95,000 Youga, Burkina Faso 87,264 91,030 89,448 65,000 - 70,000 TOTAL 268,490 310,778 324,275 400,000 - 440,000 1 2 On a 100% basis Agbaou presented on a full 12 month basis in 2014; commercial production was declared on January 27, 2014 1 On a 100% basis 2 Agbaou presented on a full 12 month basis in 2014; commercial production was declared on January 27, 2014
  • 8. GOLD PRODUCER  WEST AFRICA  CASH FLOW 8 Nzema Gold Mine: Ghana Nzema Gold Mine (90% Endeavour, 10% Ghana) Resources (incl. of Reserves, 100%) M&I: 38.4Mt @ 1.4 g/t for 1.7Moz Inferred: 7.7Mt @ 1.3 g/t for 0.313Moz Reserves (100%) 9.9Mt @ 2.1 g/t for 0.602Moz Strip Ratio 3 to 1 (2013) Processing Rate 1.6 to 2.1Mtpa Gravity/CIL plant Met. Recovery 91% to 75% depending on ore type Production 2012 – 109,447 ozs 2013 – 103,464 ozs 2014 Q1 – 28,487 ozs 2014e – 110,000 to 120,000 ozs Cash Costs ($/oz) 2013 - $917 2014 Q1 - $890 2014e – $780 to $830 Expected Mine Life 6 years from current Reserves Royalty 5% (+1% third-party at Adamus pits) Corporate Tax 35%
  • 9. GOLD PRODUCER  WEST AFRICA  CASH FLOW 9 Regional Geology Nzema Gold Mine
  • 10. Nzema and the Community GOLD PRODUCER  WEST AFRICA  CASH FLOW 10 Nzema CSR projects • Focus on education and youth training. Scholarship programs and partnership with Australian High Commission to train youth in skills development • Provide good drinking water, sanitation access and partnership with healthcare NGO • Alternative Livelihood Program for 30 vulnerable Salman households: poultry, pig-rearing, bakery training • Phase II Livelihood Restoration Program for 60 farmers • Salman Village: resettlement of 2,200 villagers completed in March 2012 • May 2014 completed 325 houses 1200 people in the Anwia Teleko Bokaso village at a cost of $25m • Bokrobo village will be affected by mining but no resettlement is contemplated – work with community to overcome the challenges
  • 11. Positive Aspects of Operating in Ghana GOLD PRODUCER  WEST AFRICA  CASH FLOW 11 • Highly skilled workforce – Committed – Mining experience – 3 expats of a total of 224 • Clear regulatory framework – Tax – Mining Code – Environmental regulations • Ability to build relationships with government agencies • Infrastructure – Ports – Roads – Airports – Requires upgrading soon as Ghana expands rapidly
  • 12. Challenges of Ghana GOLD PRODUCER  WEST AFRICA  CASH FLOW 12 Power • Reliability • Increasing cost Artisanal Mining • Resource depletion • Safety and security of employees • Reputational risks • Associated environmental impacts Land Access • Increasing difficult • Source of conflict with communities
  • 13. Avrebo deposit GOLD PRODUCER  WEST AFRICA  CASH FLOW 13 2012 Reserves 2013 reserves Oz 10,054 8,790 Au, g/t 1.5 1.4
  • 14. Artisanal Workings GOLD PRODUCER  WEST AFRICA  CASH FLOW 14
  • 15. Critical Success Factors GOLD PRODUCER  WEST AFRICA  CASH FLOW 15 • Strong relationships with: – Minerals Commission – EPA – Local communities • Artisanal Mining Strategy – Protects the resource – Maintains the company reputation
  • 16. GOLD PRODUCER  WEST AFRICA  CASH FLOW 16 Neil Woodyer CEO nwoodyer@endeavourmining.com +377 97 98 7161 SVP Business Development dreddy@endeavourmining.com +1 604 609 6114 Richard Thomas EVP Technical Services rthomas@edv-ops.com +377 97 98 7160 Doug Reddy

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