Operational & Financial Results
› August 1, 2017
Q1
Q2
Q3
Q4
DISCLAIMER & FORWARD LOOKING STATEMENTS
Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. 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.
Attie Roux, Pr.Sci.Nat, Endeavour’s Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information in this presentation.
Q2-2017 RESULTS
2
Note : All amonts are in US$ and may differ from MD&A due to rounding
SÉBASTIEN DE MONTESSUSChief Executive Officer, President & Director
JEREMY LANGFORDChief Operating Officer
VINCENT BENOITEVP – CFO and Corporate Development
PATRICK BOUISSETEVP – Exploration and Growth
SPEAKERS TABLE OF CONTENT
OPERATIONAL AND FINANCIAL SUMMARY2
CONCLUSION4
DETAILS BY MINE AND PROJECT3
APPENDIX5
HALF-YEAR IN REVIEW1
Strong safety record
Production and AISC on track with guidance
Streamlined organization with projects and operations regrouped under COO
Strengthened Board with nomination of Jim Askew
Commenced re-structuring of the Group Supply Chain
Houndé on-time and on-budget for Q4 production
Ity CIL project:
‒ Increased stake from 55% to 80%
‒ Optimization Study to upsize from 3 to 4mtpaexpected by September
Karma optimization progressing well
Added 1.0Moz of Indicated Resources since November at Ity
Le Plaque Discovery at Ity
Promising initial results at Houndé
Acquiring Avnel (KalanaProject)
La Mancha private placement for approx. $50m
Received indicative terms, subject to documentation, to refinance RCF with better terms and increased size
H1-2017 IN REVIEW
4
Q2-2017 RESULTS
Strong Achievements Across Our 4 Pillars
1 2 3 4UNLOCKING EXPLORATION
VALUE
PROJECT DEVELOPMENT
PORTFOLIO & BALANCE SHEET MANAGEMENT
OPERATIONAL EXCELLENCE
Lost Time Injury Frequency Rate= (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period)The peer group used from company annual reports for 2015 from Kinross Newmont, Barrick, Randgold, Acacia, Eldorado, Rio Tinto, Goldcorp, Glencore, Nordgold, Anglo American and AngloGold Ashanti,
Q2-2017 was successfully completed with no LTIs SAFETY IS OUR FIRST PRIORITY
Lost Time Injury Frequency Rate
0.000.00
0.31
0.40
0.79
Last 12-months
AgbaouHoundé (since start)
Peer Group Average
FY2016
8.4m Man Hours for
operations in H1-17 with only 1 LTI
5.0mMan Hours on
Houndé with no LTI
Construction track recordOperating track record
OPERATIONAL EXCELLENCE
5
1
› …
STRONG H1-2017 PERFORMANCE
Free Cash Flow Growth Projects stated before WC, tax & financing costs, Houndé and Karma)
On track to meet full year guidance
311koz
0koz
$901/oz
$860/oz $905/oz
600-640koz
$65m
0 $125m - $150m(production and AISC mid-points with
gold price of $1,200 - $1,250/oz)
PRODUCTIONGUIDANCE
AISC GUIDANCE
FREE CASH FLOWGUIDANCE
Tracking well within
guidance
In line with guidance and expected to come down
further
In line with guidance
6
OPERATIONAL EXCELLENCE
1
7
OPERATIONAL EXCELLENCE
Transforming From Stand Alone Units To Integrated Group LAUNCHED IMPROVEMENTS ACROSS THE GROUP 1
TABAKOTOZERO BASE
PLANGOVERNANCE
IT SYSTEMS
WORKING CAPITAL
GROWING LOCAL
TALENT
CSR
SUPPLYCHAIN
COSTREDUCTION
FOCUSED ON OPERATIONAL EXCELLENCE
HOUNDÉ ON-TIME AND ON-BUDGET
8
PROJECT DEVELOPMENT
First Gold Pour Expected in Q4-20172
9
SIGNIFICANT EXPLORATION EFFORTS UNDERWAYStarting To Deliver Our Against 5-year Strategy
4.0-6.0Moz
1.5MozDiscovered
Greater Ity KarmaTabakoto AgbaouHoundé Côte d’Ivoire Regional
3
4.0-6.0Moz
2.5-3.5Moz
1.5-2.5Moz
0.5-1.5Moz 0.5-1.5Moz0.5-1.0Moz
10-15Moz 5-year Indicated
Resource Discovery Target
› Significant success over the last 4 years
› Significant amount of data available
› Many known targets based on geochem and auger results
› Exploration stopped once project reached critical size to make investment decision
› Many known targets and historical drill data
› On same trend as Randgold› Limited exploration
expenses have caused mine life to be short
› New discoveries made in 2016 with additional targets for 2017+
› Limited exploration (mainly focused on converting inferred)
› Focus on pit extensions and parallel trends
› Targets backed by geochemanomalies
› Previously owned by junior with lack of fund for exploration
› North Kao already added 2.5 years of mine life
› Many near mill targets
› One of the largest exploration tenementsin the country
› Several advanced exploration targets based on historic results
Note: See Investor Day Presentation on EDV website for full details. Based on average gold grade of 2.0-3.5g/t for Greater Ity, 1.8-2.5g/t for Houndé, 2.0-4.0g/t for Tabakoto, 1.0-1.5g/t for TrueGold and 1.5-3.0g/t for Côte d’Ivoire regional. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource.
UNLOCK EXPLORATION VALUE
Numbers presented are Based on Anvel’s Optimized Feasibility Study dated Jan. 9, 2017 . IRR and NPV stated After-tax at $1,200/oz 10
AVNEL ACQUISITION Fits Our Strategic Criteria4
PORTFOLIO MANAGEMENT
66koz
88koz
119koz123koz123koz
170koz
203koz
$703/oz
$976/oz$865/oz
$689/oz$676/oz$598/oz
$446/oz
Year 2Year 1 Year 4 Year 5 Avg. years 6-10
Avg. Years 11-17
Year 3
AISCProduction
Reserve life of mine plan
Optimization potential for +150kozpa
2Moz
RESERVE
2.8g/tRESERVE GRADE
50%IRR
$321mNPV
148kozPROD YEAR 1-5
$561/ozAISC YEAR 1-5
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Kalana, Mali
(CIL), Côte d'Ivoire
undé, Burkina Faso
AVNEL ACQUISITION : STRENGHTENS OUR PROJECT PIPELINEKalana to be developed after the Houndé and Ity CIL projects
HoundéConstruction
11
PORTFOLIO MANAGEMENT
Ity CIL Construction
KALA
NA
ITY
CIL
Hou
ndé
2017 2018 2019 2020 2021 2022
GRE
ENFI
ELD
EX
PLO
RATI
ON
4
DFS Optimization Construction
Resource Definition Studies Construction
IMPROVING THE QUALITY OF OUR PORTFOLIOSignificant Progress Already Made
PORTFOLIO MANAGEMENT
4
12
0 5 10 15 20
$1,000
$1,050
$1,100
$1,200
$1,150
$950
$900
$850
$800
$750
$700
$650
$600
$550
$500
$450
Mine life, years
0 5 10 15 20
$1,050
$1,200
$850
$650
$450
Mine life, years
Bubble size represents production
AISC, $/oz
Ghana MaliBurkina FasoCôte d’Ivoire
AISC, $/oz
PORTFOLIO IN 2015 PORTFOLIO IN 2017
Nzema
Tabakoto
Agbaou
Youga
YougaSOLD Tabakoto
Agbaou
Houndé Kalana Potential
Ity CIL
Ity HL
Nzema
Karma
Ghana MaliBurkina FasoCôte d’Ivoire
CLEAR PATH TO BUILD +900KOZ PRODUCER AT ≤$800/OZ AISC
13
2013 2019
$1,137
$1 010
2018201720152014 2016
$922$884
Agbaou, Côte d’Ivoire
Group AISC Tabakoto, Mali
Youga, Burkina Faso
Karma, Burkina Faso
Nzema, Ghana
Houndé, Burkina Faso
Ity (Heap Leach), Côte d’Ivoire Ity (CIL), Côte d’Ivoire
+900kozAnnual production
10+ yearMine life
≤800$/ozAll-in Sustaining Cost
STRATEGIC MILESTONESFOR 2019
PORTFOLIO MANAGEMENT
Project pipeline to feed production growth
317koz
462koz517koz
584koz
600-640koz(excl. Houndé)
+900koz
<$800
$860-905
HALF-YEAR IN REVIEW1
APPENDIX5
DETAILS BY MINE AND PROJECT3CONCLUSION4
OPERATIONAL AND FINANCIAL SUMMARY2
Production and AISC from continuing operations - Youga production and AISC have been removed from continuing operations 15
ALL MINES ON TRACK TO MEET GUIDANCEQ2-2017 RESULTS
INSIGHTS BY MINE
$905/oz$855/oz
$898/oz$901/oz $897/oz
138koz
Q2-16
159koz
Q4-16 Q2-17
152koz
175koz
Q3-16 Q1-17
146koz
ITYTABAKOTOAGBAOU
$780/oz
Q1-2017
16koz
$879/oz
OUTLOOKQ2-2017
14koz
27koz
$985/oz
Q1-2017 OUTLOOKQ2-2017
26koz
$951/oz
NZEMA
$1,054/oz
$975/oz
OUTLOOKQ1-2017 Q2-2017
43koz 41koz
Q1-2017 Q2-2017 OUTLOOK
24koz
$755/oz
32koz
$748/oz
KARMA
$660/oz
42koz
OUTLOOK
$606/oz
Q1-2017 Q2-2017
45koz
AISC, $/ozProduction, koz
Increased contributions from Karma, Nzema and TabakotoMARGINS INCREASED DESPITE INCREASED EXPLORATION
PRODUCTION VARIATION
270koz +6koz
Youga(sold)
Ity KarmaAgbaou
+13koz(2koz)
+44koz
Tabakoto
311koz
H1-2017
(8koz)(13koz)
H1-2016 Nzema
AISC: +20% AISC: -20% AISC: -5% AISC: +13%
H1-16 vs H1-17 Bridge, in koz
ALL-IN SUSTAINING MARGIN VARIATION(2)
+16
Corporate
$82m
H1-2017 Pre-
exploration
H1-2017
+22%
Agbaou Nzema Sustaining Exploration
(9)
KarmaTabakoto Ity
$100m
(0)
Youga (sold)
$95m
+7 (8)
(5)
+14
H1-2016
H1-16 vs H1-17 Bridge, in $m
16
Q2-2017 RESULTS
Our mine All-in Sustaining Margin is more diversified across our portfolioMINE ALL-IN SUSTAINING MARGIN
17
Q2-2017 RESULTS
13%
63%
10%15%
All-In Sustaining Margin From Mines Which Excludes Corporate And Exploration Costs
13%
11%46%
17%
14%
22%
0%12%
65%
Agbaou Tabakoto KarmaItyNzema
$95mZ$84m $116m
Youga
H1-2015 H1-2016 H1-2017
Adjusted EPS of $0.23 for H1-2017NET EARNINGS BREAKDOWN
All-In Sustaining Margin to Adjusted Net Earnings BridgeFor the 6-month period ended June 30, 2017
SIX MONTHS ENDED
(in US$ million)JUN. 30,
2017JUN. 30,
2016
Gold Revenue 379 304
Operating expenses (222) (171)
Depreciation and depletion (72) (48)
Royalties (20) (14)
Earnings from mine operations 65 71
Corporate costs (12) (10)
Transaction and restructuring costs (3) (18)
Share based expenses (9) (6)
Exploration (4) (2)
Earnings from operations 36 35
(Losses)/gains on financial instruments (6) (24)
Finance costs (12) (13)
Other income (expenses) 3 0Earnings (loss) from continuing operations before taxes 21 (2)
Current income tax expense (9) (5)
Deferred taxes recovery 3 3
Net (loss)/earnings from discontinued operations - (3)
Total net and comprehensive earnings (loss) 15 (8)
A
A = Adjustments made
A
A
A
A
A
$33m
$72m
$12m
$9m $31m
$95m
Deduct:Exploration
Expense
$4m
All-In Sustaining
Margin
Adjusted Net Earnings
Deduct: Finance Costs
Add-back:Sustaining
Capital
Deduct:Taxes
Deduct:Depreciation
18
Q2-2017 RESULTS
Cash flow before growth projects increased, despite increased exploration FREE CASH FLOW FROM OPERATIONS
INSIGHTS1. Gold sales up mainly due to the addition of the
Karma mine, as well as an increase in productionat Nzema and Tabakoto
2. Inclusive of 10,000 ounces delivered under theKarma stream
3. Strong increase due to strategic focus onexploration
4. Sustaining capex remained fairly flat5. Includes $13m outflow of prepaids for growth
capex and insurance, $5m of VAT receivablesincrease (Karma), $9m of increased inventoriesbefore the rainy season (Karma, Ity, Nzema) and$4m of payables timing
Notes: Youga has been deconsolidated from the Net Free Cash Flow From Operations. Additional notes available in Endeavour’s MD&A filed on Sedar for the referenced periods.
SIX MONTHS ENDED
(in US$ million) JUN 30, 2017 JUN 30, 2016
GOLD SOLD, koz 315 248
Gold Price, $/oz 1,204 1,225
REVENUE 379 304
Total cash costs (219) (173)
Royalties (20) (14)
Corporate costs (12) (10)
Sustaining capex (25) (22)
Sustaining exploration (8) (3)
ALL-IN SUSTAINING COSTS (“AISC”) 284 222
ALL-IN SUSTAINING MARGIN 95 82
Less: Non-sustaining capital (14) (15)
Less: Non-sustaining exploration (16) (6)
FREE CASH FLOW BEFORE GROWTH PROJECTS(and before working capital, tax & financing costs)
65 61
Working capital (23) (25)
Taxes paid (11) (9)
Interest paid (5) (7)
Cash settlements on hedge programs and gold collar premiums
(4) (4)
NET FREE CASH FLOW FROM OPERATIONS 23 15
4
5
1
2
3
19
Q2-2017 RESULTS
3
CHANGE IN NET DEBT
20
(in US$ million)JUN. 30,
2017MAR. 31,
2017DEC. 31,
2016
Cash 85 87 124
Less: Equipment finance lease (8) (9) (10)
Less: Houndé financing agreement (39) - -
Less: Drawn portion of $350 million RCF (220) (140) (140)
NET DEBT POSITION (183) (62) (26)
Q2-2017 RESULTS
$183m
$26m
FCF Before Growth,
WC, int, tax
Net Debt at 2016-end
Growth Projects
Net Equity Proceeds
Other corporate
items
AcquisitionsOther operating
items
($52m)
+$166m
+$6m
+$43m
+$59m
($65m)
Net Debt at end of June
Liquidity and Financing Sources at June 30, 2017
$215m
$85mCash Position
$130mUndrawn RCF
As Expected, Net Debt Increased With Growth Project Spend
Net Debt Bridge
0.11x
0.75xNet Debt /
Adj. EBITDA
DEBT RE-NEGOTIATION PROGRESSING WELL
21
Upsizing RCF Provides Significant Headroom To Fund Growth
Q2-2017 RESULTS
INSIGHTS
› Re-negotiation, increase and extension of existing $350m Revolving Credit Facility (“RCF”) in progress
› More than $500m credit-approved commitments from top-tier mining banks received, subject to legal documentation
› Improvement on terms expected reflecting the improved credit story
› Closing expected in Q3-2017
Expected Mine CF over next 24 months
Cash
405
Houndé
Financing Sources Post RCF
Restructuring
ItyCIL
Capex Requirements
Financing Sources as at 6/30/2017
Ity equipmentfinancing
+$900m to fund growth
UndrawnRCF
HALF-YEAR IN REVIEW1
APPENDIX5
DETAILS BY MINE AND PROJECT3CONCLUSION4
OPERATIONAL AND FINANCIAL SUMMARY2
……
Production and AISCQ2-17 vs Q1-17 INSIGHTS: › Production up 8% as greater tonnes
processed and better grades offset theslightly lower recovery rate
› AISC decreased by 8% as the miningsequence moved from a lower grade oxidearea in Q1 to higher grade transitional ore inthe second quarter
OUTLOOK › Agbaou remains on track to meet the FY-
2017 guidance of 175,000-180,000 ouncesat an AISC of $660-700/oz
› Production is expected to slightly increase inH2-2017 as higher hard ore grade isexpected to compensate lower millthroughput and recoveries as the minecontinues towards 50% fresh/transitionalore blend
› AISC are expected to remain withinguidance as sustaining capital is expected toincrease with greater waste capitalisation
$606/oz42koz
Q2-2017
57koz49koz
Q2-2016
46koz
Q4-2016 Q1-2017Q3-2016
45koz
AISC, US$/ozProduction, koz
23
$525/oz $550/oz $532/oz
660/oz
AGBAOU MINE, CÔTE D’IVOIREProduction and AISC Improved in Q2 over Q1
Q2-2017 RESULTS
Tonnes Processes and Grade
693kt683kt709kt743kt 721kt
2.23 g/t
Q2-2017Q2-2016 Q1-2017Q3-2016 Q4-2016
Tonnes milled, kt Grade milled, g/t Au
2.15 g/t 2.21 g/t 2.46 g/t
2.09 g/t
INSIGHTS› Exploration progressed well in H1-
2017, with a total of approximately 26,100 meters drilled out of the 45,000 meters planned for the year
› The drill program is focused on the MPN extension, Agbaou south, Niafouta, Beta extension targets, as well as on other exploration targets located less than 20km away from facilities within the neighboring exploration license.
› A dedicated deeper drilling program will be initiated in H2-2017 targeting Agbaou deeper potential.
› An update to the Resources and Reserves estimate will be made following the completion of the program in H2-2017.
Agbaou Site Map
24
AGBAOU MINE, COTE D’IVOIREExploration progressed well in H1-2017
Q2-2017 RESULTS
Q2-17 vs. Q1-17 INSIGHTS: › Production decreased mainly due to
lower open pit and undergroundvolumes which was offset by the usageof stockpiles.
› AISC increased mainly due to increasedsustaining capital spending.
OUTLOOK› On track to meet FY-2017 production
guidance of 150,000 - 160,000 ouncesand the top end of its AISC guidance of$950-990/oz.
› Ongoing cost saving and optimisationprograms are underway.
› Production is expected to be lower inthe second half of the year with theend of Kofi C mining and the fulltransition to Kofi B and Takakoto North.
25
TABAKOTO MINE, MALIOngoing cost saving and optimisation programs are underway
Q2-2017 RESULTS
Tonnes and Grade
Production and AISC
$1,054/oz
48koz
Q3-2016
37koz43koz
Q2-2016
39koz
Q2-2017Q1-2017Q4-2016
41koz
AISC, US$/oz
407kt405kt402kt381kt399kt
3.32 g/t
Q4-2016Q3-2016Q2-2016 Q2-2017Q1-2017
Tonnes Processed, kt Processed grades, g/t Au
3.31 g/t 3.11 g/t3.93 g/t
$1,119/oz$1,061/oz $1,071/oz$975/oz$927/oz
3.50 g/t
Tabakoto Site Map
Kreko
Fougala
26
INSIGHTS› As Tabakoto operations are characterized by a
short-term mine life, a $9 million exploration program totaling approximately 86,000m of drilling on Tabakoto and Kofi properties has been planned for 2017, of which 48,000 meters were drilled in H1-2017.
› During H1-2017, Tabakoto open pit drilling focused mainly on drilling at the Kreko and Fougala West targets, for which a maiden resource is expected during H2-2017, and testing all identified exploration targets supported by an ongoing auger program.
› During H1-2017, underground drilling focused on testing the eastern side extensions at Segala and north-east extensions at Tabakoto, with encouraging preliminary results.
TABAKOTO MINE, MALISignificant focus for 2017
Q2-2017 RESULTS
Q2-17 vs. Q1-17 INSIGHTS: › Production decreased due to the
recovery rate decline and lessstacked tonnage which waspartially offset by better grade.
› AISC increased due to changes ininventory adjustments whichoffset higher unit costs.
OUTLOOK› Ity’s production and cost profile
is expected to improve over theremainder of 2017 as the gradeprofile is expected to increase.
› FY-2017 guidance remainsunchanged with 75,000 – 80,000ounces production expected atan AISC of $740-780/oz.
27
ITY HEAP LEACH MINE, CÔTE D’IVOIREProduction expected to improve in H2 with higher grades
Q2-2017 RESULTS
$780/oz
Q1-2017 Q2-2017
16koz15koz
Q2-2016
21koz
Q4-2016
17koz14koz
Q3-2016
Production, koz AISC, US$/oz
243kt267kt295kt271kt
304kt
2.15g/t
Q1-2017 Q2-2017Q4-2016Q3-2016Q2-2016
Tonnes stacked, kt Grade milled, g/t Au
Production and AISC
Ity mine extraction
$775/oz $724/oz
1.90g/t2.10g/t
$827/oz
2.00g/t
$879/oz
1.90g/t
INSIGHTS
› For 2017, a $10 million exploration program totaling approximately 52,500 meters has been planned for the greater Ity area, of which roughly 42,000 meters was completed in H1-2017.
› In H1-2017 drilling focused on Bakatouo, Mont Ity Flat area, Daapleu, and Colline Sudand positive results were achieved as the Indicated Resource grew by 1.0 million ounces since the beginning of the year, to reach 3.8 million ounces.
› The Le Plaque discovery was announced and a maiden Inferred Resource is expected by year end.
› A regional auger campaign is underway and target drilling was initiated in Yacetouo, Vavoua, Daapleu southwest, Bakatouonortheast, and on the Toulepleu exploration license to the southwest of Ity area.
Ity Mine Drilling Targets
28
ITY MINE, COTE D’IVOIREIndicated Resource grew by 1.0Moz in H1-2017
Q2-2017 RESULTS
29
Q2-17 vs. Q1-17 INSIGHTS: › Production increased due to improved
recovery rates and higher grades, whichcompensated for reduced throughput.
› AISC increased due to a reduction in thequantity of gold sold and increasedsustaining capital spend.
› OUTLOOK› Nzema remains on track for the FY-2017
guidance of 100,000 – 110,000 ouncesof production at an AISC of $895-940/oz.
› AISC are expected to continue todecline throughout the year with thegrade profile continuing to improve.
NZEMA MINE, GHANAHigher grades expected to drive AISC lower in H2-2017
Q2-2017 RESULTS
Purchased Ore
Production and AISC
3.20g/t
141kt
92kt
Q4-2016 Q1-2017Q3-2016 Q2-2017
78kt
Q2-2016
112kt
82kt
Grade purchased, g/tOre tonnes purchased , kt
2.97g/t 3.11g/t3.23g/t
$985/oz
Q2-2017
24koz
Q1-2017
26koz
Q4-2016Q3-2016
24koz
Q2-2016
20koz
27kozAISC, US$/ozProduction, koz
$1,266/oz $1,136/oz $1,118/oz$951/oz
3.04g/t
Q2-17 vs. Q1-17 INSIGHTS:
› Production decreased due to less tonnagestacked and lower recovery rates whichwas partially offset by higher stackedgrades.
› AISC remained stable as a lower strip ratiowas offset by a higher unit cost, as well asinventory adjustments.
OUTLOOK› FY-2017 guidance remains unchanged with
100,000 - 110,000 ounces planned at anAISC of $750-800/oz.
› Stacking capacity is expected to increase inthe second half of the year following thecompletion of the plant optimizationproject, which is progressing on-time.
› The higher-grade Rambo ore feed willcompliment that of the GG2 pit.
30
KARMA MINE, BURKINA FASOContinues to perform well with optimization program nearly completed
Q2-2017 RESULTS
Production and AISC
Tonnes Stacked and Grade
24koz
32koz29koz
20koz
12koz$755/oz
Q2-2017Q1-2017Q4-2016Q3-2016Q2-2016
AISC, US$/ozProduction, koz
$738/oz
852kt954kt
853kt880kt
356kt 1.24g/t
Q2-2017Q1-2017Q4-2016Q3-2016Q2-2016
Grade milled, g/t AuTonnes stacked, kt
1.14/t1.21/t
1.18/t
$748/oz
1.07/t
Karma Site MapINSIGHTS› In 2017 a $4 million exploration program
totaling approximately 38,000 meters has been planned of which approximately 28,000m was completed in H1-2017.
› During H1-2017, drilling focused on testing the extensions of the Rambo, Goulagou and North Kao deposits, as well as the Yabonsgo target (6,800 meters drilling completed, waiting on results).
› A maiden Resource is expected to be achieved during H2-2017 with the aim of further extending the mine life.
31
KARMA MINE, BURKINA FASOExpecting to further extend mine life following the H2 campaign
Q2-2017 RESULTS
SIGNIFICANT ACHIEVEMENTS TO-DATE:› Construction is progressing on-time with 90% of the total
project complete, with the first gold pour expected in the fourth quarter of 2017.
› 100% of capital has already been committed to date, reducing cost over-run risk.
› $198 million has been incurred on the project to date, with the remaining cash outlay spend amounting to $82 million.
› 5 million man-hours worked without a lost time injury.› The 38km long, 90 kilovolt overhead power line
construction is 99% complete, and the system has been commissioned. Power from the national grid is scheduled for August 2017.
› Open pit pre-strip mining at the main Vindaloo open pit, adjacent to the processing facility, commenced in late December 2016.
› SAG and ball mill foundation concrete is complete, as well as the TSF (Cell 1) earthworks and rubber lining have been completed.
32
HOUNDÉ PROJECT, BURKINA FASOProgressing on-time and on budget for Q4 gold pour
Q2-2017 RESULTS
94% team burkinabe
Mining started in January
SIGNIFICANT ACHIEVEMENTS TO-DATE (continued) :› The high speed power station is 87% complete with all 16
gensets delivered and installed.› ›The two million liter diesel fuel farm installation has been
completed.› The construction of the water harvest dam, including decant
tower, is complete, with water already being pumped to the water storage dam.
› Construction of the 300-person permanent accommodation village is approaching completion with only minor works to finish.
› Over 2,000 personnel including contractors are currently employed on-site, more than 94% of which are Burkinabe.
› The land compensation and relocation process has been successfully completed. The resettlement site openingceremony took place on July 29, 2017.
33
HOUNDÉ PROJECT, BURKINA FASOProgressing on-time and on budget for Q4 gold pour (continued)
Q2-2017 RESULTS
CIL Steel Tanks
Tailings Storage Facility
Exploration Targets in Proximity to the Planned MillINSIGHTS› Following a two year period of no
exploration drilling, activities resumed in 2017 with a $5 million program
› During H1 2017 a total of 6,400m DD, 2700m RC and 48,300m AC were drilled on: ‒ Bouere with the aim of increased the
current resource.‒ Kari Pump/Sia/Sianikoui (higher grade
exploration targets) which resulted in positive initial results.
‒ Grand Espoir, Bombi, Koho, Kari Fault, which initial exploration works.
› Work performed also included advanced soil geochemistry, ground geophysics on selected targets, regolith and geological mapping.
› After prioritization based on initial successes, H2 activity will concentrate on the most promising exploration targets.
34
HOUNDÉ PROJECT, BURKINA FASOPositive initial results received
Q2-2017 RESULTS
HALF-YEAR IN REVIEW1
APPENDIX5
DETAILS BY MINE AND PROJECT3CONCLUSION4
OPERATIONAL AND FINANCIAL SUMMARY2
UPCOMING CATALYSTS
Immediate Cashflowfrom Production
Near-TermGrowth from Projects
Long-Term Upside
from Exploration
2017 OUTLOOK: › Gold production expected to increase to 600-640koz (excluding Houndé)› AISC expected to decrease further to $860-905/oz› Free Cash Flow (before growth projects, interest, WC, tax and financing cost) expected to increase to $150m,
based on the 2016 realized gold price of circa $1,240/oz
› Q3-2017: Ity Optimization Study and investment decision
› Q3-2017: Karma mill front-end optimization
› Q4-2017: Houndé first gold pour
› DELIVERY OF 5-YEAR EXPLORATION STRATEGY: Target of Finding 10-15Moz of Indicated Resources
› H2-2017: Completion of Agbaou drilling program (first phase)
› H2-2017: Maiden resource at Ity’s Le Plaque target and infill and extension drilling program update
› H2-2017: Completion of drilling on Karma’s near-mill Rambo West and Yabonsgo targets
› H2-2017: Houndé exploration results following drilling re-commencement
36
Q2-2017 RESULTS
HALF-YEAR IN REVIEW1
APPENDIX5
DETAILS BY MINE AND PROJECT3CONCLUSION4
OPERATIONAL AND FINANCIAL SUMMARY2
1) Includes waste capitalized
PRODUCTION AND COST DETAILS BY MINE BY QUARTER
38
Q2-2017 RESULTS
38
(on a 100% basis)AGBAOU NZEMA TABAKOTO ITY KARMA
Unit Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016PhysicalsTotal tonnes mined – OP1 000t 6,952 6,356 5,920 1,413 2,695 1,852 1,550 1,888 1,703 1,988 1,789 1,584 3,616 4,343 2,934
Total ore tonnes – OP 000t 709 624 656 352 396 213 157 217 147 374 329 383 1,035 1,050 1,690
Open pit strip ratio1 W:t ore 8.81 9.19 8.02 3.01 5.81 7.69 8.87 7.70 10.51 4.32 4.44 6.31 2.49 3.14 2.79
Total tonnes mined – UG 000t - - - - - - 253 311 315 - - - - - -
Total ore tonnes – UG 000t - - - - - - 184 236 220 - - - - - -
Total tonnes milled 000t 693 683 743 362 391 450 407 405 399 243 267 303 852 954 356
Average gold grade milled g/t 2.23 2.09 2.15 2.46 2.36 1.63 3.32 3.50 3.31 2.15 1.90 2.10 1.24 1.07 1.18
Recovery rate % 94% 95% 97% 92% 88% 85% 94% 94% 95% 84% 98% 101% 83% 87% 90%
Gold ounces produced oz 45,489 41,937 46,295 27,203 26,131 19,800 41,248 43,028 39,372 14,120 15,892 20,729 24,223 31,652 12,292
Gold sold oz 46,722 39,981 47,638 26,245 29,061 19,827 41,390 43,812 39,156 13,226 18,347 20,981 24,632 31,107 14,655
Unit Cost Analysis
Mining costs - Open pit $/t mined 2.40 2.45 1.86 6.45 5.15 5.40 3.72 3.45 3.83 2.86 2.23 2.81 1.96 1.82 -
Mining costs – Underground $/t mined - - - - - - 61.18 57.66 49.97 - - - - - -
Processing and maintenance $/t milled 7.67 6.82 7.15 15.88 15.46 12.31 19.00 22.55 21.23 16.03 15.44 15.98 9.30 7.10 -
Site G&A $/t milled 3.88 4.50 4.57 5.91 5.84 6.30 9.39 11.30 11.33 9.94 9.78 7.11 4.26 4.07 -
Cash Cost Details -
Mining costs - Open pit1 $000s 16,653 15,581 11,008 9,110 13,867 9,992 5,772 6,509 6,527 5,685 3,988 4,450 7,089 7,924 -
Mining costs -Underground $000s - - - - - - 15,479 17,933 15,740 - - - - - -
Processing and maintenance $000s 5,316 4,659 5,312 5,750 6,044 5,541 7,734 9,131 8,470 3,895 4,123 4,841 7,922 6,777 -
Site G&A $000s 2,689 3,074 3,396 2,141 2,283 2,837 3,820 4,577 4,519 2,415 2,610 2,154 3,626 3,884 -
Purchased ore at Nzema $000s - - - 4,724 4,004 5,574 - - - - - - - - -
Capitalized waste $000s (525) (343) (1,158) - (1,996) (3,735) (8,612) (1,456) (8,904) (1,693) (142) - (230) (249) -
Inventory adjustments and other $000s 558 (1,022) 2,196 279 38 3,065 8,993 (2,934) 6,089 (2,034) 3,174 1,187 (2,220) 2,221-
Cash costs for ounces sold $000s 24,691 21,949 20,754 22,004 24,240 23,274 33,186 33,760 32,441 8,268 13,753 12,632 16,187 20,557 -
Royalties $000s 2,107 1,707 2,037 1,952 1,978 1,322 3,138 3,165 2,951 643 770 919 1,916 2,249 -
Sustaining capital $000s 1,526 2,735 2,206 1,898 1,423 506 7,313 5,782 6,134 1,400 1,611 2,709 487 477 -
Cash cost per ounce sold $/oz 528 549 436 838 834 1,174 802 771 829 625 750 606 657 661 -
Mine-level AISC Per Ounce Sold $/oz 606 660 525 985 951 1,266 1,054 975 1,061 780 879 775 755 748 -
1) Includes waste capitalized
PRODUCTION AND COST DETAILS BY MINE BY HALF YEAR
39
Q2-2017 RESULTS
39
(on a 100% basis)AGBAOU NZEMA TABAKOTO ITY KARMA
Unit H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016
Physicals
Total tonnes mined – OP1 000t 13,308 11,989 4,108 3,562 3,438 3,936 3,777 3,682 7,959 2,934
Total ore tonnes – OP 000t 1,333 1,474 748 490 374 294 703 670 2,085 1,690
Open pit strip ratio1 W:t ore 8.98 7.13 4.49 6.27 8.19 12.39 4.37 4.50 2.82 2.79
Total tonnes mined – UG 000t - - - - 564 675 - - - -Total ore tonnes – UG 000t - - - - 420 453 - - - -
Total tonnes milled 000t 1,376 1,397 753 909 812 805 510 607 1,806 356
Average gold grade milled g/t 2.16 2.20 2.41 1.58 3.41 3.20 2.02 2.30 1.15 1.18
Recovery rate % 94% 98% 90% 86% 94% 94% 91% 95% 85% 90%
Gold ounces produced oz 87,426 89,060 53,334 39,557 84,276 77,914 30,012 43,053 55,875 12,292
Gold sold oz 86,703 88,072 55,306 39,936 85,202 77,426 31,573 42,945 55,739 14,655
Unit Cost AnalysisMining costs - Open pit $/t mined 2.42 2.11 5.59 5.36 3.57 3.36 2.56 2.75 1.89 -
Mining costs – Underground $/t mined - - - - 59.24 46.63 - - - -Processing and maintenance $/t milled 7.25 6.51 15.66 12.23 20.77 20.84 15.72 16.14 8.14 -
Site G&A $/t milled 4.19 4.60 5.88 6.74 10.34 12.28 9.85 8.92 4.16 -
Cash Cost Details -
Mining costs - Open pit1 $000s 32,234 25,333 22,977 19,101 12,281 13,215 9,673 10,120 15,013 -
Mining costs -Underground $000s - - - - 33,412 31,476 - - - -
Processing and maintenance $000s 9,975 9,100 11,794 11,119 16,865 16,777 8,018 9,794 14,699 -
Site G&A $000s 5,763 6,431 4,424 6,126 8,397 9,888 5,025 5,417 7,510 -
Purchased ore at Nzema $000s - - 8,728 9,345 - - - - - -
Capitalized waste $000s (868) (2,112) (1,996) (5,476) (10,068) (10,566) (1,835) - (479) -
Inventory adjustments and other $000s (464) (937) 317 5,084 6,059 2,560 1,140 686 1 -
Cash costs for ounces sold $000s 46,640 37,815 46,244 45,299 66,946 63,350 22,021 26,017 36,744 -
Royalties $000s 3,814 3,770 3,930 2,547 6,303 5,651 1,413 1,851 4,165 -
Sustaining capital $000s 4,261 4,649 3,321 542 13,095 13,502 3,011 3,994 964 -Cash cost per ounce sold $/oz 538 429 836 1,134 786 818 697 606 659 -Mine-level AISC Per Ounce Sold $/oz 631 525 967 1,212 1,013 1,066 838 742 751 -