"Roughly 20 mines have been built since 2010, taking an average of only 1.7 years to complete, which is significantly less than any other region globally. West Africa has an industry-wide track record of delivering projects both on time and on budget."

Sébastien de Montessus

PRESIDENT AND CEO, ENDEAVOUR MINING

September 01, 2023

How have Endeavour’s operations in Côte d’Ivoire, Burkina Faso, and Senegal performed in 2022 and so far in 2023?

2022 was another successful year for Endeavour during which we delivered on all our objectives and met guidance for a tenth consecutive year. Across our operations in Côte d’Ivoire, Burkina Faso, and Senegal, we produced 1.4 million ounces of gold, achieving the top end of our production guidance range. We were also particularly pleased to have achieved our all-in-sustaining cost guidance of below US$930 per ounce as a result of our strong production performance and optimization initiatives. This strong operating performance generated over US$1 billion in operating cash flow in 2022, allowing us to deliver significant value to all stakeholders, fund our organic growth, and strengthen our balance sheet, which gave us great momentum coming into 2023.

We continue to deliver on our key objectives for 2023 and are well-positioned to advance this year’s capital allocation priorities of funding growth while maintaining our attractive shareholder returns program, which has already returned US$757 million since its launch in late 2020. On the operational front, we are on track to meet our full-year guidance for the eleventh consecutive year. On the growth front, the Sabodala-Massawa expansion and the construction of our new mine, Lafigué, are progressing well. Both projects are on time and on budget, and the first production is expected in Q2 and Q3 2024 respectively.

Our exploration program continues to provide us with a strong platform for future growth. Further drilling at our latest discovery Tanda-Iguela in Côte d’Ivoire continues to demonstrate its potential to become another cornerstone asset and we expect to provide a resource update in H2-2023.

Can you expand on any decarbonization initiatives at one of your operations?

In 2021, we launched our decarbonization targets with the Board approving a carbon reduction target of Net Zero by 2050 with a medium-term target to reduce Endeavour’s emissions intensity by 30% by 2030. As a step towards achieving these targets, we are excited to launch the construction of a 37 Megawatt solar facility at our Sabodala-Massawa mine, which has the dual benefit of advancing our decarbonization strategy, while at the same time decreasing our operational costs.

How can West Africa remain a leading mining jurisdiction globally?

Roughly 20 mines have been built since 2010, taking an average of only 1.7 years to complete, which is significantly less than any other region globally. West Africa has an industry-wide track record of delivering projects both on time and on budget. We’ve seen this ourselves in building Ity CIL and Houndé and now our Lafigué project. Moreover, West Africa offers some of the lowest capital intensity globally at approximately US$100 per ounce, which is more than 20% less than the next region.

What will be the primary drivers of Endeavour’s growth in the future?

In the short term, we expect to unlock value by completing the expansion of the existing Sabodala-Massawa complex in Senegal and the construction of our Lafigúe mine in Côte d’Ivoire. On completion, both the Sabodala-Massawa expansion and Lafigué will upgrade the quality of our portfolio by increasing production whilst lowering our cost base, which will generate strong cash flow, and in turn, allow us to continue to further reward all our stakeholders.

At Sabodala-Massawa, we’re tracking on time and on the budget for the first production in Q2 2024. The work we are doing will not only improve the quality of the Sabodala-Massawa mine but will also elevate it to being a tier-one gold mine in West Africa, capable of producing more than 400,000 oz/y.

At Lafigué, construction is progressing well, and we expect the first gold pour in Q3-2024. Lafigué will be another cornerstone asset for the company, with an expected production of over 200,000 oz/y at an industry-low AISC of US$871/oz for an initial 13-year mine life. There are also a number of exciting exploration opportunities in close proximity to the Lafigué deposit.

Looking further ahead, we believe that the Tanda-Iguela discovery made in Côte d’Ivoire in 2022 is one of the most significant in West Africa over the last decade and has the potential to be another flagship mine for Endeavour. We already identified a 1.1 million indicated and 1.9 million inferred maiden resource based on the first 60,000-metre drill campaign conducted in 2022.

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