48
1 TSX: EDR | NYSE: EXK September 9, 2020 Driving Organic Growth
1
TSX: EDR | NYSE: EXK September 9, 2020
DrivingOrganicGrowth
2
Cautionary Note
This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include, but are not limited to,
statements regarding Endeavour’s anticipated performance in 2020 and future years, including revenue, cash flow, operating and capital cost forecasts, silver and gold
production, timing and expenditures to explore and develop new silver mines and mineralized zones, silver and gold grades and recoveries, cash and all-in sustaining
costs per ounce, initial and sustaining capital expenditures, and the use of the Company’s working capital. The Company does not intend to, and does not assume any
obligation to update such forward-looking statements or information, other than as required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include,
among others: fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and U.S. dollar);
fluctuations in the price of consumed commodities, changes in national and local governments, legislation, taxation, controls, regulations and political or economic
developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral
exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological conditions, pressures, cave-ins and
flooding); inadequate insurance, or inability to obtain insurance; availability of and costs associated with mining inputs and labour; the speculative nature of mineral
exploration and development, reliability of calculation of mineral reserves and resources and precious metal recoveries, diminishing quantities or grades of mineral
reserves as properties are mined; risks in obtaining necessary licenses and permits, global market events and conditions and challenges to the Company’s title to
properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C.
and Canadian securities regulatory authorities
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company’s
mining operations, no material adverse change in the market price of commodities, mining operations will operate and the mining products will be completed in
accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements
or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be
no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those
anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
3
Investor Highlights
Pure precious metals producer with sector leading leverage
to silver in an emerging silver bull market
Opportunistic mergers and acquisitions; Acquire core assets at low prices to expand project pipeline
Mid-Tier Producer
Organic Growth
Discovering Orebodies
Acquiring Key Assets
Best Silver Leverage
Three underground silver-gold mines located in Mexico; restarted operations following COVID-19 suspension
Best organic growth profile in silver mining sector;
Two potential new mines to drive growth
Optimizing Operations Reducing operating costs, focus on free cash flow; raising productivity, improving safety
Track record of virgin discoveries, our competitive advantage; Brownfields exploration to extend mine lives
4
Core Assets
OPERATIONS
DEVELOPMENT
EXPLORATION
MEXICO CHILE
M exi co C i t y
Lo u r d es
Gu a d a lup e y C a l v o
L EO NO F F I C E
S A N T I A G OO F F I C E
M E X I C O
G U A N A C EV I M I N E
E L C O M P A S M I N E
EL C U B O ( 1)
B O L A N I T O S M I N ET ER R O N ER A
P A R RA L
B O L I V I A
C H I L EA I D A
P A L O M A
C E R R O M A R Q U EZ
2,000 employees and contractors
▸ 3 operations▸ 1 development projects ▸ 6 exploration projects
1. See EDR news release dated November 21, 2019 regarding placing the El Cubo mine to care and maintenance effective November 30, 2019, while Management conducts evaluation of alternatives including final closure
5
Recent Highlights
5
H1 Abbreviated Production due to COVID-19 was 1.5 million oz
Ag and 14,293 oz Au for 2.6 million oz AgEq(1)
Improving Financial Performance through reduced operating
costs, each mine generated positive FCF due to improvements
and higher metal prices, notwithstanding suspension of
operations
Q2 Operating Improvements Gained Traction, Guanacevi
outperformed plan, Bolanitos still below plan and El Compas
close to plan
Robust 2020 PFS (2) for Terronera
$137 million NPV (5% after tax)
30% IRR
2.7 years payback period
Initial mine life: 10 years
LOM AISC of $2.10/Ag oz, net of by product
Discovered New High Grade Mineralization at Bolanitos,
in Melladito vein, incl. 24.3 gpt Au & 787 gpt Ag over 1.5m
Discovered New High Grade Mineralization at Guanacevi,
on El Curso property, incl. 1,085 gpt Ag & 3.25 gpt Au over 10m
50% Au12,672
oz Au sold
50% Ag1.3 millionoz Ag sold
H1, 2020 Revenue $42.1 million
H1 2020 AgEq (1) Production 2.6 million oz
1. Silver equivalent at an 80:1 gold: silver ratio 2. Economics presented use the base case price scenario at $15.97/oz silver and $1,419/ oz gold, with an implied gold: silver ratio of 88:1
Guanacevi
62%Bolanitos
25%
El Compas
13%
6
Guanacevi MineDurango
7
Guanacevi – Turnaround Complete
831 tpd 853 tpd
1,004 tpd1,024 tpd
1,051 tpd292 g/t Ag Eq 286 g/t Ag Eq
312 g/t Ag Eq 350 g/t Ag Eq412 g/t Ag Eq
200
250
300
350
400
450
Q2, 2019 Q3, 2019 Q4, 2019 Q1, 2020 June , 2020
REDUCTION IN DIRECT PRODUCTION
INCREASE IN PRODUCTIVITYtonnes / employee / day in 2019
IMPROVED WORK CULTURENew supervisors and
management
Grades in June increased 56% and milled tonnesincreased 26% since Q2, 2019
Processed tonnes, silver and gold grades and recoveries all well above plan
Operational turn-around now complete as new high grade mines scaled up to fill the plant
Targeting 1,150 tpd in H2, 2020
1. Silver equivalents have been calculated using an 80:1 gold: silver ratio
8
1. Represents a partial period, as operations were suspended for more than half the quarter, as mandated by Mexican government to prevent spread of COVID-19
2. Silver equivalents are converted using a 80:1 silver: gold ratio 3. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP”
measures found on the company website. Costs are presented in US $, net of by-product credits. 4. All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site exploration, share-based compensation,
reclamation, and sustaining capital net of gold credits.
Guanacevi - Continue to Outperform
$17.37 $12.83 $13.54
$9.01 $8.48
$24.94
$20.99 $19.48
$14.61 $15.00
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Q2, 2019 Q3, 2019 Q4, 2019 Q1, 2020 Q2, 2020
AISC/ oz Cash Cost/ oz
Improving Operating Costs(3,4)
H1, 2020 Production of 1.6 million AgEq (2) oz
21% Au 4,274 oz
79% Ag1,272,461 oz
► Installed two refurbished core crushers in April
► Ramping up throughput to 1,200 tpd plant capacity in H2
► Expanding production from SCS orebody to 2-300 tpd
► Replacing mining contractors with employees to reduce costs
► Delivered free cash flow - $2.7 million in Q2
Q2, 2020 (1) Q2, 2019 Change (%)
Tonnes Produced (tpd) 684 831 18%
Ag Grade (gpt) 304 242 26%
Au Grade (gpt) 1.05 0.62 69%
AgEq (2) Production (oz) 675,107 646,326 4%
Q2, 2020 Cash Costs (3) $8.48 $17.37 51%
Q2, 2020 All-in Sustaining Costs (3,4) $15.00 $24.94 40%
9
Bolanitos MineGuanajuato
10
Bolanitos – Turnaround Underway
Production below plan due to lower grades, throughput,
and slow mine development. Grades now improving due
to less dilution and higher ore grade
Development of new higher grade, San Miguel and
Melladito orebodies will be completed in H2
Improvements made in 2019
✓ Revised Mine Plan: Re-sequenced the mine
plan to reduce arsenic levels
✓ Acquired New Equipment: Acquired
new equipment to reduce operating costs
✓ Accelerated Mine Development: Fast
tracked mine development in Q3 and Q4 to
improve ore access in 2020
✓ Discovered New Orebody: New high grade discovery in 2019 incorporated into 2020 mine plan
✓ Improved Plant & Equipment Availability: Adjusted reagents in flotation circuit and improved truck availability by acquiring new 30 tonne low profile trucks
Monthly Grade Profile (gpt)
59
47 46
41
36
43
59
44
1.7
1.831.94
1.45
1.68
2.01
2.25
2.05
1
1.2
1.4
1.6
1.8
2
2.2
2.4
30
35
40
45
50
55
60
65
Oct Nov Dec Jan Feb Mar May June
11
Bolanitos – Continue to Improve
78% Au 6,430 oz Au22% Ag
141,807 oz Ag
H1, 2020 Production of 660,000 AgEq (2) oz
Rising Quarterly Throughput (tpd)
839
tpd778
tpd
893
tpd
905
tpd
1,070
tpd
500
600
700
800
900
1000
1100
1200
Q2, 2019 Q3, 2019 Q4, 2019 Q1, 2020 Jun-20
Q2, 2020 (1) Q2, 2019 Change (%)
Tonnes Produced (tpd) 458 839 45%
Ag Grade (gpt) 47 78 40%
Au Grade (gpt) 2.10 1.49 41%
AgEq (2) Production (oz) 256,322 414,691 38%
Q2, 2020 Cash Costs (3) ($30.20) $11.56 360%
Q2, 2020 All-in Sustaining Costs (3,4) $29.79 $22.64 32%
Ramping up throughput to 1,200 tpd plant capacity in H2
Expanding production from San Miguel to 300 tpd
Developing new Melladito orebody
Investing sustaining capital to develop new high-grade areas
Acquire extensions of known orebodies to increase mine life
Delivered free cash flow - $0.1 million in Q2
1. Represents a partial period, as operations were suspended for more than half the quarter, as mandated by Mexican government to prevent spread of COVID-19
2. Silver equivalents are converted using a 80:1 silver: gold ratio 3. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP”
measures found on the company website. Costs are presented in US $, net of by-product credits. 4. All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site exploration, share-based compensation,
reclamation, and sustaining capital net of gold credits.
12
El Compas MineZacatecas
13
El Compas – Q1 Close to Plan
La PlomosaPanuco
Vetagrande
San JuanMala Noche
Calicanto
La Cantera
La Parroquia
Compas Orito
Plant
Processed tonnes higher but silver and gold grades and
recoveries lower than plan
Operating improvements continuing
Delayed development of higher grade Upper El Compas vein
Throughput, grades and recoveries improved during Q1
14
El Compas – Achieve Mine Plan
Quarterly Throughput (tpd)
87% Au 3,589 oz Au13% Ag
39,936 oz Ag
H1, 2020 Production of 327,056 AgEq (2) oz
233
tpd
238
tpd
248
tpd
238
tpd
240
tpd
0
50
100
150
200
250
300
Q2, 2019 Q3, 2019 Q4, 2019 Q1, 2020 June, 2020
Q2, 2020 (1) Q1, 2020 Change (%)
Tonnes Produced (tpd) 112 238 53%
Ag Grade (gpt) 60 58 4%
Au Grade (gpt) 5.55 4.02 38%
AgEq (2) Production (oz) 130,476 196,580 34%
Cash Costs (3) ($96.83) $22.10 538%
All-in Sustaining Costs (3,4) ($48.25) $45.98 205%
Developing upper El Compas vein to access higher grades
Transitioning from cut + fill to long hole mining to reduce costs
Exploring Calicanto property to find new orebodies
New Capstone discovery in MNFW vein at Calicanto
Transition from mining contractor to employees to reduce costs
Delivered free cash flow - $1.1 million in Q2
1. Represents a partial period, as operations were suspended for more than half the quarter, as mandated by Mexican government to prevent spread of COVID-19
2. Silver equivalents are converted using a 80:1 silver: gold ratio 3. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP”
measures found on the company website. Costs are presented in US $, net of by-product credits. 4. All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site exploration, share-based compensation,
reclamation, and sustaining capital net of gold credits.
15
Terronera Project Jalisco
16
Terronera – Large, Low Cost Mine Potential
TerroneraDiscovery
La LuzDiscovery
1. silver equivalents are converted using a 88:1 gold: silver ratio , using the base case pricing assumption in the 2020 PFS
2. As at December 31, 2019. For full details refer to table in the appendix
Quick Facts
Annual Silver/Gold Production (oz) 3 million Ag / 33,000 Au
Annual AgEq (1) Production (oz) 5.9 million
2 Defined Ore Bodies Terronera and La Luz, 66m oz Ag Eq in Reserves (2)
and 14m oz AgEq in Resources, 12 year mine life
AgEq (1) Grade (gpt) & Vein Widths Approx. 400 – 1,000 gpt AgEq; 1-30 m thick
Next Core Asset
Almost doubles consolidated production
Significantly decreases consolidated costs
District Scale Opportunity
Endeavour controls 24 concessions, totalling 17,369 hectares
Covers the entire district of San Sebastian, +50 old mines on
+50 known veins, 50 km NE of Puerto Vallarta
Final PFS Delivered Robust Economics
Feasibility study underway to further de-risk project
17
Mining Costs ,
$44.64
Processing
Costs , $19.27
G&A, $6.16
Royalty ,
$3.99
Positive Project Economics Based on Updated 2020 PFS (AFTER-TAX)
NPV
@5% (US$)
$137 M
IRR
30%
PAYBACK
(years)
2.7
Terronera - Robust Project Economics
Operating & Financial Metrics 2020 PFS (1)
LOM tonnes processed (thousands) 5,563
Life of Mine (Years) 10
Average silver grade (g/t) 201
Average gold grade (g/t) 2.29
Silver equivalent grade (g/t) Base Prices 405
Avg annual Ag ounces produced (millions) 3.0
Avg annual Au ounces produced (thousands) 33
Avg annual Ag Eq ounces produced (millions) 5.9
LOM Revenue ($, millions) 942.7
LOM EBITDA ($, millions) 476.4
LOM Free cash flow, after tax ($, millions) 217.4
Total Cost $83.82
Direct Costs per Tonne
Cash Costs(2) AISC (2)
$0 / Ag oz$2.10/ Ag oz
Projected Low Total Cash Costs & AISC (3)
1. See Appendix for full base case assumptions in the updated 2020 PFS. Silver and gold price assumptions were $15.97/ oz Ag and $1,419 / oz Au. Average Recoveries for silver and gold are 84.9% and 82.3% respectively. The implied silver equivalent ratio is 89:1
2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP” measures found on the company website. Costs are presented in US $, net of by-product credits
3. Projected cash costs & AISC are based on Updated PFS filed in 2018.
18
2020 PFS Base & Spot Case Highlights
PFS BASE CASE
PFS SPOT CASE
CURRENT
Silver price $15.97/oz $18.49 $26.00/ oz
Gold price $1,419/oz $1,812 $1,950/ oz
Gold: silver ratio 89:1 98:1 75:1
NPV (5% after-tax) $137 million $229 million $350 million
IRR (after-tax) 30% 45.7% 64.50%
Payback Period 2.7 1.7 1.1
LOM cash cost, net of gold by-product credit
$0.00/ oz ($4.15)/oz ($5.44)/oz
LOM AISC, net of gold by-product credit
$2.10/ oz ($2.06)/oz ($3.35)/oz
Average annual after tax free cash flow once in production
$31 million $43 million $57 million
After tax cumulative undiscounted free cash flow
$217 million $342 million $506 million
• Base case prices for the PFS are calculated on a 2 year trailing average• Spot case scenario for the PFS is closing metal prices as of July 8, 2020 • Current price scenario for the PFS using a 75:1 gold: silver ratio and implied prices of $26/ oz silver and $1950/ oz gold as of August 10
3 million oz silver and 33,000 oz goldLOM Annual Production
10 year mine life with 5.9 million oz of Ag Eq at 405 gpt(89:1 ratio)
$100 million initial capital expenditure And $62.4 million LOM sustaining capital
$83.82 totalDirect production cost per tonne
19
Production and Grade Profile
480492
381401
390 385 384378
362
345
250
300
350
400
450
500
550
--
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Silver Production (oz)
Gold Production (oz)
Ag Eq Grade
K o
z A
g E
q
• Silver equivalents are calculated at a 89:1 ratio, using base case prices of $15.97/oz Ag, $1409/ oz Au
Terronera Vein
La Luz Vein
Years 1-4: Average Ag Eq annual production of 6.5 million oz ; elevated grade profile (average Ag Eq grade of 440 gpt)
La Luz is almost entirely very high grade and will be mined early
20
Expand Property Size - acquire new concessions covering
mineralized areas in proximity
Expand Resources & Reserves – plan additional drilling to convert
inferred to probable, test other veins
Expand Mine & Plant – evaluate potential to expand to 2,000 tpd
subject to expanding reserves
Optimize Mining Methods – with more geotechnical drilling,
additional longhole mining may be possible
Optimize Ore Transport – evaluate automated underground rail
haulage system to benefit haulage costs and ventilation
Optimize Mining Equipment – evaluate electric equipment instead
of diesel
Optimize Recoveries – evaluate grind size vs. floatation stages
Tailings Transport – evaluate conveyor or pipeline vs. trucks
Power Capacity – re-evaluate power needs and rates once
alternatives are optimized
Upside Opportunities
21
Complete feasibility study –approximately 9-12 months
Evaluate upside opportunities –recommence exploration drilling
Build project team
Complete EPC process –contractor bidding and selection
Extend Government permits – amend mine access ramp, construction camp
Secure project financing
Obtain board approval for development
Order long lead items – mine and plant procurement
Next Steps
22
Parral ProjectChihuahua
23
Parral – Potential Sixth Mine
Historic Silver District
Palmilla was highest grade silver mine in Mexico in 1800s,
provided silver to the Mexican mint
Veta Colorada mine produced 4 million oz Ag per year prior to
closing in 1990 due to low silver price
Historic IMMSA resource at Veta Colorada; small toll mill in the
district could facilitate early production in 2020
IMMSA’s Santa Barbara and Frisco’s San Francisco mines to SW,
Discovery’s Cordero project to NE, Kootenay’s Cigarra project to W
Potential Core Asset
Was 4 million Ag oz per year mine until 1990
Indicated Resource(1) 3.7 million oz Ag; Inferred Resource(1)
36.8 million oz Ag, 21,800 oz Au
District Scale Opportunity
Endeavour concessions total 3,450 hectares
Controls the Parral district, 4 old mines and multiple veins
Potential Resource Expansion
Largest exploration project in 2019 ($2 million budget)
Updated resource estimate, mined bulk sample, now ready
for processing at local toll mill
1. As at December 31, 2019. For full details refer to table in the appendix.
24
Chile Projects
25
Chile – World Class Exploration Targets
Cerro Marquez – Bulk Tonnage Porphyry Copper (Au-Mo)
Geologically similar to other large porphyry copper mines in Chile
Massive porphyry alteration zone in Miocene Volcanic Caldera
Drilled in Q4, 2019 – results geologically encouraging
Paloma – High Sulfidation Epithermal Gold (Ag)
Geologically similar to 4 million oz Solares Norte discovery
Massive acid-sulfate alteration zone in Miocene Volcanic Caldera
Drilling commenced November 2019, will resume in Q3, 2019
Aida – Low Sulfidation Epithermal Silver (Pb-Zn)
Geologically similar to 2 billion oz Cerro Potosi mine
Massive epithermal alteration zone Miocene Volcanic rocks
Drilling planned 2021
Cerro Marquez
Paloma
Aida
26
Exploring to extend
mine lives
Developing to
expand production
Advancing to development
High impact discovery potential
OPERATING MINES
Guanacevi – Transitioned to new higher grade orebodies
Bolanitos – Developing new higher grade orebodies
El Compas – Recently commissioned new mine
DEVELOPMENT PROJECTS
CHILE ASSETS
Aida – Bulk tonnage low sulfidation epithermal silver
Cerro Marquez – Bulk tonnage porphyry copper
Paloma – Bulk tonnage high sulfidation epithermal gold
Terronera Jalisco
Consider feasibility study
Consider upside opportunities and development decision
Parral, Chihuahua
Complete initial PEA
Evaluate near term small scale production
Evaluate longer term large scale production
Sector Leading Organic Growth Strategy
27
Shareholder Information
Capital Structure
Issued/ Outstanding 154.9 million
Fully Diluted 165.1 million
Recent Price (Sept 9, 2020) US$4.17
Market cap (Sept 9, 2020) US$650 million
52-Week High/Low US$4.79/$1.00
60-Day Avg Daily Volume (shares) ~7.0 million
Key Data
Exchange Listings NYSE:EXK, TSX:EDR, FSE:EJD
Working Capital US$44.6 million
Cash Position US$30.5 million
Major Shareholder Van Eck (GDXJ) 6.0%
Strategic Shareholder Fresnillo 2%
Mining Analysts 10
~ presented as at June 30, 2020 unless noted otherwise
Sector Leading Beta to Silver(1)
Analysts Coverage
B Riley FBR Lucas Pipes
BMO Capital Markets Ryan Thompson
CIBC World Markets Cosmos Chiu
Global Alliance Bhakti Pavani
GMP Securities Ian Parkinson
Noble Capital Markets Mark Reichman
PI Financial Chris Thompson
Roth Capital Partners Joseph Reagor
H.C. Wainwright Heiko Ihle
TD Securities Craig Hutchison
1.301.40
1.50 1.50 1.50 1.501.60
Hecla Mining Fortuna Silver Pan American Coeur Mining Great Panther First Majestic Endeavour Silver
Expressed as a weekly frequency as compared to the GSCI Silver index
1. Source: 5 year beta as provided by Capital IQ software – as of June 25, 2020.
28
2020 Catalysts
Extend Mine Lives
Reduce Operating Costs
OptimizeTerronera
Make New Discoveries
28
Grow Through M&A
Improve productivity at each mine, focus on free cash flow
Continue exploration drilling, replace reserves and grow resources
Published final PFS with robust economics, initiated feasibility study
Drill world class Paloma high sulfidation gold –silver prospect in Chile
Acquire new mines that are accretive to NAV and cash flow with organic growth potential
29
Why Invest?
Mid-Tier Silver Producer
Three high-grade silver-gold mines in Mexico
Compelling Organic Growth
Building new mines to increase production and reduce costs
Experienced Management Team
Proven track record with exploration, development and
operational expertise
Strong Balance Sheet
$44.6 million working capital, no debt
(as at 6/30/2020)
Pure Silver/ Gold Leverage
No base metals, no hedging & strong beta to silver price (60/40 silver gold producer)
Our mission is to create value for our shareholders
and become a premier silver producer in the silver
mining industry.
30
Appendix
Compelling Value Proposition
An attractive investment opportunity with an industry leading growth profile & silver leverage
31
ELECTRONICS
SILVERWARE
BATTERIES
SOLAR PANELS
BARS & COINS
WATER TREATMENT
MEDICAL
JEWELRY
Why Silver?
SILVER is playing an increasingly important role in industrial applications that contribute to a sustainable future:
100%
50%
0%
DENARIUS % SILVER
64-68 161-168 DidiusJulianus
193
Elagabalus219-222
Puplenus & Balbinus
238
Philip 244 Valerian255-60
Best natural conductor of electricity and heat: used in electronics, batteries, solar panels, alloys & coatings, LED & RFID chips, semi-conductors, photography, anti-bacterials, preservatives, medicines
Silver is a precious metal: like gold, silver is money and its role as a store of value and a hedge against monetary inflation is growing
Currency debasement is not new: governments throughout history have “printed” money; eg. falling silver % in the Roman Denarius coin
POPULAR APPLICATIONS: NON-COMMERCIAL USES:
SILVER SEMI-CONDUCTOR FILM
SILVER NANO PARTICLES
HIGH VALUE CHEMICALS
HYDROGREN FOR FUEL CELLS, ELECTRICITY
32
Ore Grades (g/t) Recovered Ounces Recoveries (%) Cost Analysis
Period
Plant throughput
(tonnes)Silver Gold Silver Gold Silver Gold
Cash costs ($/oz Ag)
AISC ($/oz Ag)
Direct costs($/tonne)
Q1 - 16 408,553 137 1.50 1,510,065 15,960 83.7 81.0 7.63 11.12 74.26
Q2 - 16 377,198 148 1.58 1,551,851 15,649 86.2 81.9 5.37 10.53 73.01
Q3 - 16 355,611 133 1.55 1,284,646 14,364 84.3 80.8 5.27 11.47 71.18
Q4 - 16 317,555 123 1.35 1,088.845 11,402 87.0 83.0 9.39 20.11 70.72
Total 2016 1,458,917 136 1.50 5,435,407 57,375 85.3 81.7 6.78 12.43 72.42
Q1 - 17 303,222 126 1.41 1,076,974 11,724 87.4 85.2 7.81 18.24 75.77
Q2 - 17 303,943 135 1.58 1,143,788 13,058 86.6 84.6 8.36 20.46 84.01
Q3 - 17 319,038 144 1.53 1,262,064 13,648 84.5 87 8.10 18.71 81.60
Q4 - 17 349,924 152 1.56 1,436,962 14,577 84.1 83.3 7.97 12.70 84.38
Total 2017 1,279,873 140 1.54 4,919,788 53,007 85.4 83.9 8.06 16.96 82.36
Q1 - 18 325,669 148 1.47 1,314,648 12,832 84.6 83.6 6.50 14.18 79.38
Q2 - 18 314,305 156 1.60 1,355,895 13,674 86.2 84.5 7.05 15.73 83.75
Q3 - 18 317,821 160 1.50 1,428,828 12,968 87.5 84.8 8.86 16.14 86.33
Q4 - 18 309,036 157 1.55 1,386,505 13,117 88.8 85.4 9.22 14.20 93.52
Total 2018 1,266,831 156 1.53 5,522,068 52,967 86.9 84.9 8.06 15.45 86.32
Q1 - 19 246,519 154 1.45 1,071,355 10,055 87.7 87.4 12.55 19.37 105.84
Q2 - 19 237,640 157 1.51 1,059,322 9,558 88.5 83.0 13.67 20.90 114.40
Q3 - 19 234,196 144 1.49 948,547 9,716 87.6 86.7 11.51 21.53 106.76
Q4 - 19 236,531 140 1.53 939,511 9,578 88.3 82.2 13.63 23.20 113.47
Total 2019 954,886 149 1.50 4,018,735 38,907 88.0 84.7 12.85 21.19 110.09
Q1 - 20 199,327 155 1.57 857,659 8,476 86.1 84.4 7.85 18.38 101.63
Q2 - 20 114,120 188 1.84 596,545 5,817 86.3 86.3 2.78 14.91 109.74
Q3 - 20
Q4 - 20
Total 2020 313,447 167 1.66 1,454,204 14,293 86.2 85.3 5.77 16.96 104.59
Consolidated Mine Operations Table
33
Guanaceví Mine Operations Table
Ore Grades (g/t) Recovered Ounces Recoveries (%) Cost Analysis
Period
Plant throughput
(tonnes)Silver Gold Silver Gold Silver Gold
Cash costs ($/oz Ag)
AISC ($/oz Ag)
Direct costs($/tonne)
Q1 - 16 98,776 249 0.56 651,731 1,568 82.4 88.5 8.09 12.95 71.92
Q2 - 16 98,756 232 0.49 629,221 1,365 85.4 87.7 10.82 20.11 83.38
Q3 - 16 82,059 235 0.51 542,385 1,163 87.5 86.4 11.12 21.53 93.24
Q4 - 16 87,850 211 0.49 540,708 1,232 90.7 89.0 12.66 26.74 93.60
Total 2016 367,441 232 0.51 2,364,045 5,328 86.3 88.4 10.56 19.07 84.94
Q1 - 17 87,599 213 0.49 530,683 1,192 88.5 86.4 12.85 23.78 94.99
Q2 - 17 74,894 219 0.50 468,741 1,079 88.8 89.5 14.94 27.40 111.42
Q3 - 17 74,649 249 0.57 522,907 1,224 87.5 89.5 13.68 23.47 117.15
Q4 - 17 83,881 241 0.54 544,117 1,245 83.7 85.5 12.39 17.57 99.39
Total 2017 321,113 230 0.53 2,066,448 4,740 87.0 86.6 13.41 22.87 105.13
Q1 - 18 78,971 224 0.63 489,163 1,443 86.0 90.2 15.31 22.62 120.63
Q2 - 18 71,275 225 0.67 464,929 1,423 90.2 92.7 17.46 29.24 139.24
Q3 - 18 81,268 218 0.48 518,318 1,114 91.0 88.8 18.14 28.75 131.75
Q4 - 18 75,528 222 0.58 484,197 1,240 89.8 88.0 19.38 27.49 144.57
Total 2018 307,042 222 0.59 1,963,773 5,224 89.6 89.7 17.57 27.01 133.78
Q1 – 19 76,557 206 0.52 458,144 1,138 90.4 88.9 21.06 27.56 145.37
Q2 – 19 75,591 242 0.62 536,966 1,367 91.3 90.7 17.37 24.94 148.84
Q3 – 19 78,517 232 0.67 533,923 1,557 91.2 92.1 12.83 20.99 116.20
Q4 – 19 92,323 252 0.75 673,559 2,025 90.0 91.0 13.54 19.48 131.56
Total 2019 322,988 234 0.65 2,202,592 6,087 90.6 90.2 15.87 22.86 135.14
Q1 – 20 94,207 280 0.87 745,114 2,427 87.9 92.1 9.01 14.61 111.89
Q2 – 20 62,231 304 1.05 527,347 1,847 86.7 87.9 8.48 15.00 126.13
Q3 – 20
Q4 – 20
Total 2020 156,438 289 0.94 1,272,461 4,274 87.5 90.4 8.79 14.77 117.55
34
Ore Grades (g/t) Recovered Ounces Recoveries (%) Cost Analysis
Period
Plant throughput
(tonnes)Silver Gold Silver Gold Silver Gold
Cash costs ($/oz Ag)
AISC ($/oz Ag)
Direct costs($/tonne)
Q1 - 16 137,128 94 2.33 334,569 8,449 80.7 82.2 (6.20) (3.55) 60.03
Q2 - 16 136,322 80 2.38 276,885 8,470 79.0 81.2 (7.08) (4.25) 63.94
Q3 - 16 132,686 76 2.30 255,350 7,875 78.7 80.3 (15.17) (11.16) 49.03
Q4 - 16 101,568 71 2.22 185,813 5,926 80.1 81.7 (4.87) 1.02 54.35
Total 2016 507,704 81 2.31 1,052,617 30,720 79.6 81.5 (8.37) (4.77) 57.07
Q1 - 17 94,351 66 2.40 168,723 6,218 84.3 85.4 (10.28) (3.82) 65.18
Q2 - 17 113,875 78 2.27 231,106 6,965 80.9 83.8 (4.78) 3.61 66.60
Q3 - 17 114,526 83 2.09 257,972 6,663 84.4 86.6 (0.52) 3.96 71.52
Q4 - 17 124,172 86 2.18 280,712 7,204 81.8 82.8 (2.73) 1.01 67.04
Total 2017 446,924 80 2.24 934,238 26,910 81.3 83.6 (4.00) 1.62 67.68
Q1 - 18 115,014 82 1.83 238,012 5,578 78.5 82.4 (2.77) 4.20 60.87
Q2 - 18 108,495 91 1.82 248,591 5,222 78.3 82.3 2.87 12.84 65.74
Q3 - 18 109,728 84 1.67 236,197 4,832 79.7 82.0 6.22 14.00 64.00
Q4 - 18 105,768 82 1.77 235,326 5,166 84.4 85.8 2.59 5.12 66.43
Total 2018 439,005 86 1.79 975,555 21,127 80.4 83.6 2.14 9.00 64.20
Q1 – 19 86,634 86 1.82 196,010 4,430 81.8 87.4 2.43 16.36 70.87
Q2 – 19 76,386 78 1.49 171,891 3,035 89.7 82.9 11.56 22.64 79.90
Q3 – 19 71,541 77 1.62 147,078 3,226 86.6 83.0 8.13 29.90 81.03
Q4 – 19 82,147 51 1.81 109,963 4,088 81.6 85.5 4.82 38.83 80.66
Total 2019 316,708 73 1.69 624,942 14,779 84.1 85.9 6.72 25.11 77.88
Q1 – 20 83,217 40 1.71 86,125 3,922 80.5 85.7 (7.32) 44.17 68.85
Q2 – 20 41,680 47 2.10 55,682 2,508 88.4 89.1 (30.20) 29.79 77.02
Q3 – 20
Q4 – 20
Total 2020 124,897 43 1.84 141,807 6,430 82.1 87.0 (16.26) 38.55 71.44
Bolañitos Mine Operations Table
35
Ore Grades (g/t) Recovered Ounces Recoveries (%) Cost Analysis
Period
Plant throughput
(tonnes)Silver Gold Silver Gold Silver Gold
Cash costs ($/oz Ag)
AISC ($/oz Ag)
Direct costs($/tonne)
Q1 – 19 3,790 61 3.66 3,218 342 43.3 76.8 (5.59) 18.55 110.03
Q2 – 19 21,242 72 4.35 24,007 2,238 48.8 75.3 (1.52) 43.62 138.03
Q3 – 19 21,885 90 4.56 43,634 2,669 68.9 84.1 (25.37) 3.46 137.99
Q4 - 19 22,855 65 4.33 33,5181 2,298 70.2 72.2 10.90 47.68 160.01
Total 2019 69,772 75 4.37 104,377 7,577 62.0 77.3 (7.74) 27.49 143.70
Q1 – 20 21,903 58 4.02 26,420 2,127 64.7 75.1 22.10 45.98 182.81
Q2 – 20 10,209 60 5.55 13,516 1,462 68.6 80.3 (96.83) (48.25) 143.50
Q3 – 20
Q4 - 20
Total 2020 32,112 59 4.50 39,936 3,589 65.6 77.3 (17.64) 14.50 170.31
El Compas Mine Operations Table
36
Silver-Gold Reserves and Resources
Tonnes Ag g/t Au g/t Ag oz Au oz Ag Eq OzCompared
to 2018
Proven
Guanaceví 155,000 276 0.70 1,374,000 3,500 1,654,000 143%
Bolañitos 39,000 68 2.56 86,000 3,300 350,000 (78%)
El Compas 42,000 64 3.65 87,000 5,000 487,000 (2%)
Total Proven 236,000 203 1.54 1,547,000 11,800 2,491,000 (35%)
Probable
Guanaceví 560,000 240 0.66 4,326,000 11,800 5,270,000 (30%)
Bolañitos 327,000 43 2.44 455,000 25,700 2,511,000 111%
El Compas 53,000 82 4.96 141,000 8,500 821,000 100%
Terronera 5,587,000 208 2.33 37,440,000 419,000 70,960,000 -
Total Probable 6,527,000 202 2.22 42,362,000 465,000 79,562,000 (2%)
Total P+P 6,763,000 202 2.19 43,909,000 476,800 82,053,000 (4%)
Measured
Guanaceví 78,000 377 0.64 947,000 1,600 1,075,000 168%
Bolañitos 33,000 124 1.89 131,000 2,000 291,000 (77%)
El Cubo 19,000 224 1.89 140,000 1,200 236,000 (70%)
El Compas 2,000 123 6.27 9,000 500 49,000 43%
Total Measured 132,000 287 1.23 1,227,000 5,300 1,651,000 (33%)
Indicated
Guanaceví 1,062,000 331 0.85 11,305,000 29,100 13,633,000 22%
Bolañitos 502,000 160 1.95 2,588,000 31,400 5,100,000 (10%)
El Cubo 32,000 209 2.03 214,000 2,100 382,000 (83%)
El Compas 32,000 69 4.79 64,000 6,400 576,000 (49%)
Guadalupe y Calvo 1,861,000 119 2.38 7,120,000 142,400 18,512,000 -
Parral (new) 433,000 271 - 3,771,000 - 3,771,000 1,461%
Total Indicated 3,922,000 199 1.68 25,062,000 211,400 41,974,000 7%
Total M&I 4,054,000 202 1.68 26,289,000 216,700 43,625,000 5%
Inferred
Guanaceví 778,000 406 0.99 10,155,000 24,900 12,147,000 26%
Bolanitos 832,000 113 2.31 3,031,000 61,700 7,967,000 5%
El Cubo 463,000 163 1.89 2,419,000 28,200 4,675,000 (47%)
El Compas 81,000 90 6.77 232,000 17,500 1,632,000 (52%)
Terronera 1,080,000 208 2.26 7,239,000 79,000 13,559,000 -
Guadalupe y Calvo 154,000 94 2.14 465,000 10,600 1,313,000 -
Parral (new) 3,160,000 324 0.21 32,930,000 21,800 34,674,000 9%
Total Inferred 6,548,000 269 1.16 56,471,000 243,700 75,967,000 0%
Silver-Gold-Lead-Zinc Resources
Tonnes Ag g/t Au g/t Ag oz Au oz Pb% Zn% Ag Eq OzCompared to
2018
IndicatedGuanaceví 363,000 208 0.26 2,420,500 3,100 0.78 1.32 2,668,500 -
Parral (Cometa) 180,000 55 1.17 300,000 6,800 3.20 3.30 844,000 (87%)
Total Indicated 543,000 156 0.57 2,720,500 9,900 1.58 1.98 3,512,500 (61%)
InferredGuanaceví 488,000 132 0.16 2,076,000 2,500 1.36 2.54 2,276,000 -
Parral (Cometa) 880,000 74 1.45 2,100,000 41,000 3.27 3.24 5,380,000 (4%)
Total Inferred 1,368,000 95 0.99 4,176,000 43,500 2,59 2.99 7,656,000 (3%)
Reserves and Resources (Dec 31, 2019)
37
Reserves & Resources (Dec 31, 2019)Notes1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the Mineral Resources will be converted into
Mineral Reserves.2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.3. The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.4. Mineral Resources are exclusive of and in addition to Mineral Reserves.5. Guanacevi Mineral Resource and Mineral Reserve cut-off grades are based on a 182 g/t silver equivalent for Santa Cruz Sur of Guanacevi, 340 g/t silver equivalent for the El Curso
concession of Guanacevi and 218 g/t silver equivalent for Santa Cruz, North Porvenir and Milache of Guanaceví; Metallurgical recoveries were 83.3% silver and 84.5% gold for Guanaceví6. Bolañitos, Mineral Resource and Mineral Reserve cut-off grades are based on a 166 g/t silver equivalent for the Lucero ramp, 206 g/t for the La Luz ramp and 168 g/t for San Miguel of
Bolanitos. Metallurgical recoveries were 71.9% silver and 89.0% gold for Bolañitos7. El Cubo Mineral Resource cut-off grades are based on a 196 g/t silver equivalent for Area II (that comprises Dolores Mine) of El Cubo and 238 g/t silver equivalent for Areas I&IV (that
comprise Santa Cecilia and San Nicolas Mines) of El Cubo.8. El Compas Mineral Resource and Mineral Reserve cut-off grades are based on a 3.46 g/t gold equivalent. Metallurgical recoveries were 70.0% silver and 82.5% gold for El Compas9. Mineral Resource cut-off grades for Terronera was 150 g/t silver equivalent and the Mineral Reserve cut-off grades for Terronera and La Luz Deposits were 165 g/t and 222 g/t silver
equivalent respectively. Metallurgical recoveries were 84.6% silver and 80.4% gold for Terronera10. Mineral Resource cut-off grades are based on a 150 g/t silver equivalent for Guadalupe y Calvo11. Mineral Resource cut-off grades at Parral vary: 130 g/t silver equivalent for most veins, 200 g/t silver for Sierra Plata, and US$55/t NSR for Cometa.12. Mining recoveries of 93% were applied for Guanaceví, Bolañitos and El Compas and 95% for Terronera for Mineral Reserve Estimate calculations. Minimum mining widths were 0.8 metres
for Mineral Reserve Estimate calculations.13. Dilution factors for Mineral Reserve Estimate calculations averaged 35% for Guanaceví, 33.66% for Bolañitos and 36.2% for El Compas and 11% for Terronera. Dilution factors are calculated
based on internal stope dilution calculations and external dilution factors of 24% for cut and fill mining and 40% for long hole mining at Guanaceví and Bolañitos14. Silver equivalent grades and ounces are based on a 80:1 silver:gold ratio and calculated including only silver and gold.15. Probable Mineral Reserves for Terronera includes the Terronera and La Luz Deposits.16. Inferred Mineral Resources for Terronera includes the Terronera, La Luz and Real Alto Area.17. Indicated and Inferred Mineral Resources for "Parral (new)" includes the Colorada, Palmilla, San Patricio, and Sierra Plata areas.18. The La Colorada structure (Parral) does not contain gold on an economic scale.19. Price assumptions for Guanaceví, Bolañitos, El Compas and El Cubo are US$16.34/oz for silver, US$1,279/oz for gold, US$0.82/lb for lead and US$0.90/lb for zinc.20. Price assumptions for Terronera are US$17.50/oz for silver, US$1,275/oz for gold.21. Price assumptions for Parral are US$15/oz for silver, US$1,275/oz for gold.22. Figures in tables are rounded to reflect estimate precision; small differences generated by rounding are not material to the estimates.23. Effective November 31, 2019, Endeavour Silver announced suspension of operations at the El Cubo Mine, while Management evaluates other alternatives including final closure. 2018
Reserve subtotals and totals include El Cubo for comparative purposes.24. See AIF for potential risks that can materially affect the development of the mineral resources or exploitation of reserves.
Godfrey Walton, M.Sc., P.Geo., President and COO of Endeavour, is the Qualified Person who reviewed and approved this technical information contained in these Mineral Reserve and Resource Estimates. A Quality Control sampling program of reference standards, blanks and duplicates has been instituted to monitor th e integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish.
The Mineral Reserve Estimate for Terronera in the technical report titled “Updated Technical Report for the Terronera Project, Jalisco State, Mexico” effective February 12, 2019 and signed April 30, 2019 were undertaken by Independent Qualified Persons Eugene Puritch, P.Eng., FEC, CET, Yungang Wu, P.Geo., David Burga, P.Geo., D. Gregory Robinson, P.Eng., Peter J Smith P. Eng, Eugenio Iasillo P.E., Humberto Preciado P.E., and Benjamin Peacock, P. Eng.
The Parral Mineral Resources disclosed have been estimated by Mr. Jose Texidor Carlsson, P.Geo., an employee of Roscoe Postle Associates (RPA) and independent of Endeavour. By virtue of his education and relevant experience, Mr. Texidor Carlsson is a “Qualified Person” for the purpose of National Instrument 43 -101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014). Mr. Texidor Carlsson, P.Geo. has read and approved the contents as it pertains to the disclosed Parral Mineral Resource estimates.
Terronera Assumptions for 2020 PFS
2020
Silver Price 15.97
Gold Price 1,419
Silver:Gold Ratio 89
Operating Statistics
LOM Tonnes Processed LOM (thousands) 5,563
Life of Mine (Years) 10.0
Average silver grade (g/t) 201
Average gold grade (g/t) 2.29
Silver equivalent grade (g/t) 405
Average silver recovery 84.9%
Average gold recovery 82.3%
LOM payable Ag ounces produced (millions) 29.8
LOM payable Au ounces produced (thousands) 328
LOM payable Ag Eq ounces produced (millions) 59.0
Avg annual payable Ag ounces produced (millions) 3.0
Avg annual payable Au ounces produced (thousands) 33
Avg annual payable Ag Eq ounces produced (millions) 5.9
Capital Expenditure Statistics
Initial Capital Expenditure (millions) 99.1
Process Capacity (tonnes per day) 1,600
LOM Sustaining Capital 62.4
Total LOM Project Capital 161.5
Financial Cost Metrics
LOM Revenue (millions) 942.7
LOM EBITDA (millions) 476.4
After Tax LOM Free Cash Flow (millions) 217.4
After Tax Project Net Present Value (millions)
137.1
After Tax Internal Rate of Return 30.0%
Pay Back Period (years) 2.7
Cash costs by Product (per silver ounce) 0.00
All in sustaining (per silver ounce) 2.10
Cash costs by Silver Equivalent (per silver ounce)
7.90
All in sustaining Silver equivalents (per silver ounce)
8.96
LOM COS (millions) 466.3
Total Direct Production Costs (per Tonne) 83.82
39
Management Team
Dan Dickson, CA, CFO
Luis Castro, Ing., Geo.
VP Exploration
Miguel Ordaz,Ing., Geo.
Mexico Projects Director, Legal Representative
Bradford Cooke, M.Sc., P.Geo.
CEO
Godfrey Walton, M.Sc., P.Geo.
President and COO
Dale Mah,
B.Sc., P.Geo.VP Corporate Development
Galina Meleger,Director
Investor Relations
Christine West,
CPA, CGAVP Controller
Lorena Aguilar, BS,
DirectorHuman Resources
Ernesto Lima,
Ing., MBADirector, Project
Development
Nicholas Shakesby, BBA
VP Operations
40
Board of Directors
Bradford Cooke, M.Sc., P.Geo.
Margaret Beck, B.Sc.
Mario Szotlender, B.IR
Ricardo Campoy, B.Sc.
Comp. Committee Chair
Geoff Handley, B.Sc.Chair; Corp. Gov. &
Nom. Committee Chair
Rex McLennan, B.Sc., MBA, ICD.D
Audit Committee Chair
Ken Pickering, P. Eng.
HSES Committee Chair
41
Van Eck Associates
Renaissance Technologies
Fresnillo
Merian Global Investors
Mirae Asset Global Investments
Credit Suisse Securities
Black Rock
Konwave AG
Stabilitas
Dimensional Fund Advisors
RBC Global Asset Management
Millennium Management
Sprott Asset Management
Sprott Inc
Global X Management
Connor Clark & Lunn
NinePoint Partners
Morgan Stanley
AMG Fondsverwaltung
UBS Financial Services
ETF Managers
Institutional Investors, Analyst Coverage
Ryan Thompson, BMO
Cosmos Chiu, CIBC
Bhakti Pavani, Alliance Global Partners
Ian Parkinson, GMP Securities
Mark Reichman, Noble Capital Markets
Heiko Ihle, H.C. Wainwright
Craig Hutchison, TD
Chris Thompson, PI Financial
Joseph Reagor, Roth Capital Partners
Adam Graf, B. Riley FBR
42
43
▸ 2012 – Endeavour started GRI 4.0 reporting of its sustainability activities.
▸ Every year, we go to our stakeholders for feedback on a full range of interests, and every two years, we conduct a materiality review to rank what is most important both internally and externally to adjust our goals and programs.
▸ Our reporting is based on the five pillars listed below, with Governance as the foundation.
2018 Annual Review & Sustainability Report
2019 marks the 8th consecutive year that we’ve reported on our sustainability initiatives
We receive annual awards for the way we do business
44
▸ Because mining is a high risk industry, employee health and safety is our #1 priority, governed by extensive safety policies and practices.
▸ Every employee goes through rigorous safety induction, daily safety procedures, regular refresher courses, job site audits and each mine has award-winning first aid and mine rescue teams.
▸ We provide regular health programs for employees including annual medical checkups, disease and occupational health tests, drug and alcohol tests, lifestyle and fitness counselling.
▸ In the communities, we work with state governments to provide medical, dental, and optical services, and lifestyle and addiction counselling.
Health & Safety
2019 Highlights
70% of all training activities involved safety education, highlighting its importance Guanacevi received the “Casco de Plata” safety award last year, the highest safety recognition provided by the Mining Chamber in Mexico, for their performance in 2018
45
▸ Education and training are important to improving the quality of life in the local communities.
▸ Endeavour sponsors university scholarships in Mexico and Canada, high school scholarships in Mexico, and online courses to complete high school diplomas, technical and self-employment courses.
▸ We run mining skills training programs to teach young people, women and the unemployed career skills like operating dump trucks, scoop trams, jumbo drills followed by job offers.
Our People
2019 Highlights
Provided an average of 47 hours of training for each employeeCompleted the suspension of operations at El Cubo smoothly, and transferred 40% of the professional employees to other job opportunities within the Company
46
▸ We support our local communities in many ways to improve the quality of life, resolve issues and build sustainable capacity.
▸ Endeavour donates our time, funds, food and gifts for cultural and religious celebrations; we sponsor sports teams, kids camps and field trips, and an annual 10 km race to promote fitness; we help upgrade local buildings, schools, churches and roads.
▸ We also train locals and provide equipment for cottage businesses such as pastry making, confections, jewelry, tourist gifts, clothing and mops.
▸ Our goal is to complete at least one legacy project at each community, from fresh water supply, to proper sewage disposal, to new community buildings, to tourist mine.
Community
2019 Highlights
Supported 118 Mexican students with scholarships to further their education Sponsored several events to engage with over 1,000 locals in the communities near TerroneraFully funded a multi-use recreational facility for the El Cubocommunity
47
▸ Protection of our natural environment is paramount for Endeavour.
▸ We monitor dumps, tailings, water and energy consumption and emissions, waste recycling and disposal & biodiversity.
▸ In particular, tailings management has been a hot topic recently but from day one we have made major investments to upgrade our tailings facilities to North American standards – dry stack at Guanaceví, a unique drainage system at Bolañitos, and new facilities at El Cubo.
▸ We typically plant tens of thousands of trees and cacti each year, reclaiming areas disturbed by Endeavour but also historic areas.
Environment
2019 Highlights
Planted 51,000 trees in reforestation projects to reclaim disturbed groundRecycled over 93% of water used
48
▸ Investments are essential to generate economic impact and profits are essential to fulfil community and sustainability objectives.
▸ Our most obvious positive economic impacts have been from investing in:
▸ acquisition of properties, mines and plants ▸ exploration to discover new orebodies in historic mining districts▸ development to open new mines and refurbish and expand old
mines, plants and facilities▸ operations to create over 2,000 employee and contractor jobs▸ direct economic impact on 8,100 people (3:1 ratio)▸ indirect economic impact on another 8,100 people such as
suppliers and services; 99% in Mexico
Economic Value
2019 Highlights
99% of our workforce is Mexican, spent $42 million in employee wages and benefits. Spent $164 million on goods and services, 97% of total procurement is from within Mexico. Paid $5 million in various taxes
