ENDEAVOUR REPORTS Q3-2022 RESULTS 

WELL POSITIONED TO ACHIEVE TOP-END PRODUCTION GUIDANCE, WITHIN AISC GUIDANCE

OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)

  • Q3-2022 production of 343koz at an AISC of $960/oz; year-to-date production of 1,045koz at an AISC of $920/oz
  • Group is well positioned to achieve top-end of FY-2022 production guidance of 1,315-1,400koz at an AISC within the guided $880-930/oz range
  • Net Earnings of $58m (or $0.23/sh) for Q3-2022 and $190m (or $0.77/sh) year-to-date.
  • Operating Cash Flow before changes in WC of $195m (or $0.79/sh) for Q3-2022 and $828m (or $3.34/sh) year-to-date
  • Strong financial position with $833m cash position at quarter-end, well positioned to reimburse the $330m convertible bond, due Feb 2023, in cash to limit shareholder dilution, in addition to $500m in available sources of financing
ROBUST SHAREHOLDER RETURNS

  • H1-2022 dividend of $100m paid in Q3-2022, totalling $170m paid year-to-date
  • Share buyback programme continued with $37m worth of shares repurchased in Q3-2022, totalling $75m year-to-date
ORGANIC GROWTH
  • Sabodala-Massawa expansion on track; 46% of the capital committed with pricing inline with expectations and construction of the Lafigué greenfield project launched with 12% of the capital committed
  • Strong exploration effort with $23m spent in Q3-2022, totalling $68m year to date; maiden resource for Tanda-Iguela greenfield discovery expected to be published in Q4-2022

London, 10 November 2022 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased to announce its operating and financial results for Q3-2022 and year to date, with highlights provided in Table 1 below.

Table 1: Highlights for Continuing Operations1

All amounts in US$ million unless otherwise specified THREE MONTHS ENDED NINE MONTHS ENDED  
30 September 2022 30 June
2022 		30 September 2021 30 September 2022 30 September 2021 Δ YTD-2022 vs. YTD-2021  
 
OPERATING DATA              
Gold Production, koz 343 345 362 1,045 1,058 (1)%  
All-in Sustaining Cost2, $/oz 960 954 885 920 854 +8%  
Realised Gold Price, $/oz 1,679 1,832 1,768 1,810 1,776 +2%  
CASH FLOW              
Operating Cash Flow before Changes in WC 195 253 317 828 816 +1%  
Operating Cash Flow before Changes in WC2, $/sh 0.79 1.02 1.27 3.34 3.44 (3)%  
Operating Cash Flow 154 253 309 706 797 (11)%  
Operating Cash Flow2, $/sh 0.62 1.02 1.24 2.85 3.37 (15)%  
PROFITABILITY              
Net Earnings/(Loss) Attributable to Shareholders 58 189 122 190 332 (43)%  
Net Earnings/(Loss), $/sh 0.23 0.76 0.49 0.77 1.40 (45)%  
Adj. Net Earnings Attributable to Shareholders2 37 111 168 281 449 (37)%  
Adj. Net Earnings2, $/sh 0.15 0.45 0.67 1.13 1.90 (41)%  
EBITDA2 302 417 339 937 985 (5)%  
Adj. EBITDA2 256 329 370 982 1,090 (10)%  
SHAREHOLDER RETURNS              
Shareholder dividends paid 100 — 70 170 130 +31%  
Share buybacks 37 7 35 75 94 (20)%  
ORGANIC GROWTH              
Growth capital spend (30) (34) (11) (72) (51) +41%  
FINANCIAL POSITION HIGHLIGHTS              
Cash 833 1,097 760 833 760 +10%  
Principal debt (830) (880) (830) (830) (830) —%  
Net Cash, (Net Debt)2 3 217 (70) 3 (70) (104)%  

1From Continuing Operations excludes the Karma mine which was divested on 10 March 2022 and the Agbaou mine which was divested on 1 March 2021. 2This is a non-GAAP measure. Refer to the non-GAAP measure section in this press release and in the Management Report.

Management will host a conference call and webcast today, Thursday 10 November, at 8:30 am EST / 1:30 pm GMT. For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release. 

Sebastien de Montessus, President and CEO, commented: “Our strong operating performance for the first nine months of the year positions us well to deliver full year production at the top end of our guided range and costs within the guided range. This will mark our 10th consecutive year of achieving or exceeding our guidance; a record that we are extremely proud of, and a strong reflection of the resilience of our business.

As we enter our next growth phase, our high-margin production, sustained free cash flow generation, and strong financial position leave us well placed to continue to deliver strong shareholder returns. This year we have already increased our minimum dividend commitment by $50 million to $200 million and we have completed an additional $75 million in share buybacks. Moreover, in order to limit shareholder dilution, we have upstreamed sufficient cash in order to provide the financial flexibility to reimburse our $330 million convertible bond due Q1-2023 in cash.

Our growth projects are progressing well with the expansion of our flagship Sabodala-Massawa mine on schedule and on budget as work starts to ramp up. Furthermore, we recently launched the construction of our next cornerstone asset, the Lafigué project on the Fetekro property, where early works are gathering pace. Our growth projects will increase gold production by approximately 30% from 2024 and further enhance our geographic diversification, whilst solidifying our position as a leading high-margin and low cost producer.

Over recent years, our exploration programme has discovered the Lafigué project for a modest investment of $31 million at an industry leading discovery cost of $12/oz, and it continues to deliver new low-cost ounces, notably through our greenfield success at the Tanda-Iguela property in Côte d’Ivoire, where we expect to publish a maiden resource in the coming weeks. In addition, we are enjoying significant near mine exploration success at several other cornerstone assets, with resource additions expected by year-end. As such, we are pleased to be on track to achieve our previously disclosed target of discovering 15-20 million ounces of Indicated resources over the 2021 to 2025 timeframe.

In summary, we are very pleased with the progress made so far this year and with the wet season over, we expect the final quarter to be strong as we remain focused on continuing to deliver strong operating results which underpin our ability to fund our growth and shareholder return programme.

UPCOMING CATALYSTS

The key upcoming expected catalysts are summarised in the table below.

Table 2: Key Upcoming Catalysts

TIMING CATALYST  
Q4-2022 Mana Wona underground first stope production
Q4-2022 Tanda-Iguela Maiden resource
Q4-2022 Ity Resource update
Q4-2022 Sabodala-Massawa Expansion project progress update
Q1-2023 Shareholder Returns Payment of H2-2022 dividend
Q1-2023 Exploration Year-end resource update following exploration success


OPERATING SUMMARY

Table 3: Group Production and FY-2022 Guidance

  THREE  MONTHS ENDED NINE MONTHS ENDED      
All amounts in koz, on a 100% basis 30 September
2022 		30 June
2022 		30 September
2021 		30 September
2022 		30 September
2021 		2022 FULL-YEAR GUIDANCE
Boungou 29 27 41 90 139 130 — 140
Houndé 72 87 70 232 216 260 — 275
Ity 81 77 61 230 212 255 — 270
Mana 42 55 49 149 151 170 — 190
Sabodala-Massawa1 86 73 106 256 241 360 — 375
Wahgnion1 32 27 34 88 100 140 — 150
PRODUCTION FROM CONTINUING OPERATIONS 343 345 362 1,045 1,058 1,315 — 1,400
Karma2 — — 21 10 67      
Agbaou3 — — — — 13      
GROUP PRODUCTION 343 345 382 1,055 1,138      

1Included for the post acquisition period commencing 10 February 2021. 2Divested on 10 March 2022. 3Divested on 1 March 2021.

Table 4: Group All-In Sustaining Costs and FY-2022 Guidance

All amounts in US$/oz THREE  MONTHS ENDED NINE MONTHS ENDED      
30 September
2022 		30 June
2022 		30 September
2021 		30 September
2022 		30 September
2021 		2022 FULL-YEAR GUIDANCE
Boungou 1,219 1,062 800 1,051 795 900 — 1,000
Houndé 716 807 921 767 833 875 — 925
Ity 773 895 915 799 830 850 — 900
Mana 1,098 905 1,029 993 996 1,000 — 1,100
Sabodala-Massawa1 779 779 655 703 667 675 — 725
Wahgnion1 1,647 1,788 1,097 1,590 964 1,050 — 1,150
Corporate  G&A 37 20 24 32 28 30
AISC FROM CONTINUING OPERATIONS 960 954 885 920 854 880 — 930
Karma2 — — 1,256 1,504 1,162      
Agbaou3 — — — — 1,131      
GROUP AISC 960 954 904 925 875      

1Included for the post acquisition period commencing 10 February 2021. 2Divested on 10 March 2022. 3Divested on 1 March 2021.

SHAREHOLDER RETURNS PROGRAMME

Table 5: Actual Shareholder Returns vs. Minimum Commitment

  MINIMUM ACTUAL SHAREHOLDER RETURNS SUPPLEMENTAL
All amounts in US$ million DIVIDEND COMMITMENT DIVIDENDS DECLARED BUYBACKS COMPLETED TOTAL  RETURNS  SHAREHOLDER RETURNS
FY-2020 60 60 — 60 —
FY-2021 125 140 138 278 +153
FY-2022 150 200 75 275 +125
     H1-2022 75 100 38 138 +63
     H2-20221 75 100 37 137 +62
TOTAL 335 400 213 613 +278

1 $100 million dividend for H2-2022 represents the committed amount that is expected to be paid to shareholders in Q1-2023, while the $37 million of buybacks represents amount completed in Q3-2022.

CASH FLOW AND LIQUIDITY SUMMARY

The table below presents the cash flow and net cash position for Endeavour for the three month periods ended 30 September 2022, 30 June 2022, and 30 September 2021 and the nine month periods ending 30 September 2022 and 30 September 2021, with accompanying explanations below.

Table 6: Cash Flow and Net Cash

    THREE MONTHS ENDED NINE MONTHS ENDED
All amounts in US$ million unless otherwise specified   30 September 2022 30 June
2022 		30 September 2021 30 September 2022 30 September 2021
Net cash from/(used in), as per cash flow statement:            
Operating cash flows before changes in working capital from continuing operations   195 253 317 828 816
Changes in working capital   (41) 1 (8) (122) (18)
Cash generated from discontinued operations   — — 3 5 13
Cash generated from operating activities [1] 154 253 312 711 810
Cash used in investing activities [2] (111) (145) (137) (349) (379)
Cash used in financing activities [3] (256) (26) (233) (332) (360)
Effect of exchange rate changes on cash   (52) (33) (15) (104) (25)
(DECREASE)/INCREASE  IN CASH   (264) 50 (73) (74) 46
Cash position at beginning of period   1,097 1,047 833 906 715
CASH POSITION AT END OF PERIOD [4] 833 1,097 760 833 760
Principal amount of Senior Notes   (500) (500) (500) (500) (500)
Principal amount of Convertible Notes   (330) (330) (330) (330) (330)
Drawn portion of Revolving Credit Facility   — (50) — — —
Drawn portion of Corporate Loan Facility   — — — — —
NET CASH/(NET DEBT) [5] 3 217 (70) 3 (70)
Net cash, (Net debt) / Adjusted EBITDA (LTM) ratio1 [5]           0.00 x           0.14 x          (0.05)         x           0.00 x          (0.05)         x

1Net debt, Adjusted EBITDA, and cash flow per share are Non-GAAP measures. Refer to the non-GAAP measure section in this press release and in the Management Report.

NOTES:

  1. Operating cash flows decreased by $99.5 million from $253.2 million (or $1.02 per share) in Q2-2022 to $153.7 million (or $0.62 per share) in Q3-2022 largely due to a decrease in the realised gold price, an increase in the working capital outflow, a slight decrease in gold sales and higher income taxes paid.

    Operating cash flows decreased by $99.1 million from $810.3 million (or $3.42 per share) in YTD-2021 to $711.2 million (or $2.87 per share) in YTD-2022 largely due to higher working capital outflows and higher operating costs compared to the prior period.

    Notable variances are summarised below:
  1. Cashflows used in investing activities decreased by $33.8 million from $144.6 million in Q2-2022 to $110.8 million in Q3-2022 largely due to lower sustaining capital, the timing of growth capital and an inflow of $10.7 million in proceeds from NSR properties sold to Auramet Trading (“Auramet”). The lower YTD-2022 outflow was driven primarily by the timing of growth capital payments.
  1. Cash flows used in financing activities increased by $229.6 million from $25.9 million in Q2-2022 to $255.5 million in Q3-2022. Financing activities for Q3-2022 primarily consisted of dividends paid to shareholders of $97.3 million, dividends paid to minority shareholders of $57.2 million, repayment of the outstanding balance on the Company’s revolving credit facility of $50.0 million, payments for the acquisition of the Company’s own shares of $36.7 million, payments of financing and other fees of $10.9 million and repayment of finance and lease obligations of $3.4 million.

Cash flows used in financing activities decreased by $28.5 million from $360.0 million in YTD-2021 to $331.5 million in YTD-2022 largely due to slightly higher shareholder returns in YTD-2021, compared to YTD-2022. In YTD-2021, a larger proportion of shareholder returns were paid through shareholder buybacks, compared to a higher proportion of shareholder returns paid through dividends in YTD-2022. In addition higher cash flows used for financing activities in YTD-2021 were associated with the inclusion of costs associated with the refinancing of debt from the Teranga acquisition and the settlement of the off-take liability in the YTD-2021 period.

  1. At period-end, Endeavour’s liquidity remained strong with $832.5 million of cash on hand and $500.0 million undrawn under its revolving credit facility. During Q3-2022, in order to provide flexibility to redeem its outstanding convertible notes in cash, which mature in Q1-2023, Endeavour paid dividends from its operating entities to itself and its minority shareholders (governments), to facilitate the upstreaming of its cash. This resulted in a minority interest dividend payments of $57.2 million and approximately $48.2 million in withholding tax payments, associated with dividends declared to the Company.

  2. Endeavour’s net cash position has decreased by $73.7 million YTD-2022, or $214.3 million during Q3-2022 to $2.5 million.  The change in Q3-2022 is largely due to a remeasurement of the cash balance of $51.7 million due to changes in the foreign exchange rates between the Euro and Unite States dollar reporting currency, and $105.4 million related to the minority interest dividends and withholding taxes associated with cash upstreaming in order to provide flexibility to redeem outstanding convertible notes in cash, as mentioned in Note 4.

EARNINGS FROM CONTINUING OPERATIONS

The table below presents the earnings and adjusted earnings for Endeavour for the three month periods ended 30 September 2022, 30 June 2022, and 30 September 2021 and the nine month periods ending 30 September 2022 and 30 September 2021, with accompanying explanations below.

Table 7: Earnings from Continuing Operations

    THREE MONTHS ENDED NINE MONTHS ENDED
All amounts in US$ million unless otherwise specified   30 September
2022 		30 June
2022 		30 September
2021 		30 September
2022 		30 September
2021
Revenue [6] 568 630 657 1,883 1,968
Operating expenses [7] (254) (251) (234) (722) (744)
Depreciation and depletion [7] (151) (140) (147) (443) (409)
Royalties [8] (35) (38) (39) (114) (121)
Earnings from mine operations   128 201 237 604 694
Corporate costs [9] (12) (7) (12) (33) (42)
Acquisition and restructuring costs   (1) (1) (2) (3) (29)
Share-based compensation   (4) (3) (7) (15) (25)
Other expense   (7) (11) (2) (20) (13)
Exploration costs   (12) (8) (3) (27) (19)
Earnings from operations   91 171 211 506 567
Gain/(loss) on financial instruments [10] 60 107 (20) (12) 9
Finance costs   (19) (17) (15) (50) (40)
Earnings before taxes   132 261 177 444 536
Current income tax expense [11] (77) (65) (41) (216) (157)
Deferred income tax recovery [12] 12 8 4 9 18
Net comprehensive earnings from continuing operations [13] 67 205 141 236 397
Add-back adjustments [14] (15) (70) 51 108 140
Adjusted net earnings from continuing operations   52 134 192 344 537
Portion attributable to non-controlling interests [15] 16 23 24 63 88
Adjusted net earnings from continuing operations attributable to shareholders of the Company  [16] 36 111 168 281 449
Earnings per share from continuing operations   0.23 0.76 0.49 0.77 1.40
Adjusted net earnings per share from continuing operations   0.15 0.45 0.67 1.13 1.90

NOTES:

  1. Revenue decreased by $62.0 million from $629.6 million in Q2-2022 to $567.6 million in Q3-2022 mainly due to a lower realised  gold price in Q3-2022 of $1,679 per ounce compared to $1,832 per ounce for Q2-2022 and lower production and sales from Houndé and Mana. Gold sales from continuing operations decreased slightly from 344koz in Q2-2022 to 338koz in Q3-2022.

Revenue decreased by $84.1 million from $1,967.5 million in YTD-2021 to $1,883.4 million in YTD-2022 due to the lower gold sales compared to the prior period, partially offset by the higher realised gold price of $1,810 per ounce in YTD-2022, compared to $1,776 per ounce in YTD-2021. Gold sales from continuing operations decreased from 1,108koz in YTD-2021 to 1,041 in YTD-2022.

  1. Operating expenses were relatively flat at $253.6 million in Q3-2022 compared to the prior period as the expected higher fuel and consumable costs were offset by favourable exchange rate movements. Depreciation and depletion increased by $11.4 million from $139.8 million in Q2-2022 to $151.2 million in Q3-2022 mainly due to increased depletion at Houndé and Sabodala-Massawa, partially offset by decreased depreciation at Mana.

Operating expenses decreased by $21.7 million from $744.0 million in YTD-2021 to $722.3 million in YTD-2022 largely due to an expense incurred in YTD-2021 related to the reversal of fair value adjustments to inventory at Sabodala-Massawa in addition to the inventory charge associated with gold sold in excess of gold produced in YTD-2021 following the Teranga acquisition. These items were partially offset by increased operating costs at Sabodala-Massawa and Wahgnion mines due to the comparable cost base for YTD-2021 including costs from only the post-acquisition period in addition to slightly higher consumable and energy costs compared to the prior period. Depreciation and depletion for YTD-2022 increased by $34.4 million from $408.6 million in YTD-2021 to $443.0 million in YTD-2022 largely due to increased depreciation at the Houndé, Mana and Sabodala-Massawa mines due to an increased capital base being depreciated, partially offset by lower depreciation at Boungou due to the lower carrying value.

  1. Royalties slightly decreased from $38.1 million in Q2-2022 to $35.3 million in Q3-2022 due largely to the lower gold sales at a lower realised gold price in Q3-2022. Royalties decreased from $120.5 million in YTD-2021 to $114.4 million in YTD-2022 due to lower gold sales, despite the higher realised gold price.

  2. Corporate costs increased from $6.8 million in Q2-2022 to $12.4 million in Q3-2022 due to higher corporate expenses as well as higher employee compensation due to the timing of costs being incurred and the impact of the reversal of certain bonus accruals in the prior quarter. Corporate costs decreased from $42.2 million in YTD-2021 to $33.2 million in YTD-2022 due to the cessation of costs associated with corporate integration and the LSE listing.

  3. The gain on financial instruments of $106.8 million in Q2-2022 decreased to a gain of $60.1 million in Q3-2022. The decrease relative to the prior quarter relates to the decrease in the realised and unrealised gains on the gold collars and forward sales of $32.2 million, and a decrease in the unrealised gain on the revaluation of the conversion option of $19.1 million. In Q3-2022, the gain on financial instruments consists of a realised gain on the gold collars and forwards of $19.7 million and an unrealised gain of $55.8 million, reflecting the lower spot gold prices in the quarter. In addition, there was an unrealised gain on the revaluation of the conversion option on the convertible senior notes (the “Convertible Notes”) of $12.6 million due to the impact of the lower share price assumption per the bond valuation model. Q3-2022 also included a gain of $4.5 million relating to the sale of certain net smelter royalties held by the Group, and a gain of $5.5 million related to the revaluation of other financial assets in the quarter. The gain was partly offset by foreign exchange losses of $31.6 million, primarily on outstanding cash balances, driven by the weakening of the Euro against the Dollar and the realised and unrealised loss on foreign currency contracts of $0.4 million and $6.0 million, respectively.

The gain on financial instruments of $9.4 million million in YTD-2021 decreased to a loss of $11.9 million in YTD-2022. The loss in YTD-2022 is primarily due to the net impact of foreign exchange losses of $89.6 million due to the impact of the Euro weakening against the USD and the realised and unrealised loss on foreign currency contracts of $0.4 million and $6.0 million, respectively. This was in part offset by the gold collars and forward contracts which amounted to realised and unrealised gains of $14.1 million and $39.1 million, respectively, driven by the lower gold prices. Also included is an unrealised gain on the conversion option on the Convertible Notes of $26.3 million driven by assumption changes per the bond valuation model since the start of the year, and a gain on the disposal of certain net smelter royalties of $4.5 million.

As previously disclosed, Endeavour entered into a revenue protection programme for a portion of its production across FY-2022 and FY-2023, to provide greater cash flow visibility during its investment phase. This was structured as an upfront low premium collar with a put price of $1,750 per ounce and a call price of $2,100 per ounce for 75koz of production per quarter, from Q1-2022 until Q4-2023. In addition, the Company entered into forward sales contracts for FY-2022 and FY-2023, for which 95koz at an average gold price of $1,834 per ounce were financially delivered in Q3-2022. Forward contracts scheduled to be settled in Q4-2022 amount to 90koz at an average gold price of $1,842. For FY-2023, forward sales contracts amount to 120koz, or 30koz ounces per quarter at an average gold price of $1,828 per ounce.

Endeavour has entered into a growth capital protection programme designed to enhance cost certainty for a portion of its upcoming growth capital expenditure at its Sabodala-Massawa Expansion and Lafigué growth projects. The Group has entered into various foreign exchange forward contracts across both the Euro and the Australian Dollar over the next two years. The total notional forward contracted quantum is approximately €148.4 million at a blended rate of 0.98 EUR:USD split over 2022, 2023 and 2024 at approximately 39%, 53% and 9% respectively and approximately AU$58.9 million at a blended rate of 0.69 AUD:USD split approximately 28%, 62% and 10% respectively over the same period. During Q3-2022, the Group incurred a realised loss on foreign exchange contracts of $0.4 million and an unrealised loss on foreign exchange contracts of $6.0 million.

  1. Current income tax expense increased by $12.3 million from $64.7 million in Q2-2022 to $77.0 million in Q3-2022 largely due to a higher weighted average domestic tax rate as a result of lower proportional production from assets with lower tax rates including Houndé and Mana, in addition to the withholding tax expense recognised on the dividend declared by Sabodala-Massawa during the quarter.

Current income taxes increased by $59.4 million from $157.0 million in YTD-2021 to $216.4 million in YTD-2022 due to an increase in tax expense at Sabodala-Massawa as a result of the start-up of mining at the Massawa pits as well as an increase in taxable profit at Ity due to earnings generated at Floleu, which includes the Le Plaque pit, which was partially offset by a decrease in tax expense at Boungou associated with lower levels of production.

  1. Deferred income tax recovery increased by $3.7 million from $8.2 million in Q2-2022 to $11.9 million in Q3-2022, mainly due to the reversal of deferred tax liabilities previously recognised on estimated distribution of earnings, partially offset by the impact of changes in the foreign exchange rates on the deferred tax calculations. In YTD-2022, a deferred income tax recovery of $8.9 million compared to a deferred tax recovery of $17.7 million in YTD-2021, mainly due to the higher impact of changes in the foreign exchange rates on the deferred tax calculations and the deferred tax impact of the unwinding of the fair value adjustment to inventory at Sabodala-Massawa recognised in YTD-2021. The absence of these recoveries in YTD-2022 contributed to the lowered deferred tax recovery for YTD-2022.

  2. Net comprehensive earnings from continuing operations decreased by $137.4 million from $204.5 million in Q2-2022 to $67.1 million in Q3-2022. The decreased earnings are attributed to lower gold sales, higher depreciation, higher taxes, and a lower gain on financial instruments compared to the prior period. For YTD-2022, net comprehensive earnings of $236.4 million was recognised, a decrease on the earnings of $397.0 million recognised in YTD-2021 due largely to lower gold sales, higher depreciation, and higher taxes.

  3. For Q3-2022, adjustments included a gain on financial instruments of $60.1 million largely related to the unrealised gain on forward sales and collars, non-cash, tax and other adjustments of $36.9 million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances and a write-down of inventory at Wahgnion to net realisable value, other expenses of $7.4 million, and acquisition and restructuring costs of $1.0 million. For YTD-2022, adjustments mainly included non-cash, tax and other adjustments of $73.2 million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances and non-cash fair value adjustments to inventory associated with the acquisition of Teranga, other expenses of $20.0 million, a loss on financial instruments of $11.9 million largely related to the unrealised loss on forward sales and acquisition and restructuring costs of $2.5 million.

  4. Adjusted net earnings from continuing operations attributable to non-controlling interests decreased to $15.8 million in Q3-2022 from $23.1 million in Q2-2022 due to lower earnings from mine operations during Q3-2022.

  5. Adjusted net earnings attributable to shareholders for continuing operations decreased by $74.8 million to $36.5 million (or $0.15 per share) in Q3-2022 compared to $111.3 million (or $0.45 per share) in Q2-2022 due largely to lower earnings from mining operations as a result of lower group production at a lower realised gold price, higher depreciation and higher taxes. In YTD-2022 adjusted net earnings attributable to shareholders for continuing operations decreased to $281.2 million (or $1.13 per share) from $449.3 million (or $1.90 per share) in YTD-2021 due to higher income tax expense due largely to lower gold sales, higher depreciation, and higher taxes. 

OPERATING ACTIVITIES BY MINE

Boungou Gold Mine, Burkina Faso

Table 8: Boungou Performance Indicators

For The Period Ended Q3-2022 Q2-2022 Q3-2021   YTD-2022 YTD-2021
Tonnes ore mined, kt 210 272 539   734 1,136
Total tonnes mined, kt 3,559 5,115 7,126   15,008 22,145
Strip ratio (incl. waste cap) 15.95 17.81 12.22   19.45 18.50
Tonnes milled, kt 338 366 349   1,053 1,000
Grade, g/t 2.84 2.47 3.76   2.78 4.34
Recovery rate, %      94      93       95        94      95 
PRODUCTION, KOZ 29 27 41   90 139
Total cash cost/oz 1,172 996 717   996 675
AISC/OZ 1,219 1,062 800   1,051 795

Q3-2022 vs Q2-2022  Insights

YTD-2022 vs YTD-2021 Insights

2022 Outlook

Houndé Gold Mine, Burkina Faso

Table 9: Houndé Performance Indicators

For The Period Ended Q3-2022 Q2-2022 Q3-2021   YTD-2022 YTD-2021
Tonnes ore mined, kt 1,174 1,330 596   3,842 3,620
Total tonnes mined, kt 9,178 10,725 11,966   32,589 37,620
Strip ratio (incl. waste cap) 6.82 7.06 19.07   7.48 9.39
Tonnes milled, kt 1,234 1,217 1,142   3,684 3,396
Grade, g/t 1.83 2.42 2.11   2.06 2.15
Recovery rate, %      92       94       92         93       92
PRODUCTION, KOZ 72 87 70   232 216
Total cash cost/oz 631 699 631   676 672
AISC/OZ 716 807 921   767 833

Q3-2022 vs Q2-2022  Insights

YTD-2022 vs YTD-2021 Insights

2022 Outlook

Ity Gold Mine, Côte d’Ivoire

Table 10: Ity Performance Indicators

For The Period Ended Q3-2022 Q2-2022 Q3-2021   YTD-2022 YTD-2021
Tonnes ore mined, kt 1,180 1,668 1,690   5,382 5,672
Total tonnes mined, kt 4,925 6,027 5,576   17,902 18,326
Strip ratio (incl. waste cap) 3.17 2.61 2.30   2.33 2.23
Tonnes milled, kt 1,375 1,597 1,530   4,641 4,624
Grade, g/t 2.04 1.77 1.50   1.82 1.74
Recovery rate, %      87       86      83        84      81 
PRODUCTION, KOZ 81 77 61   230 212
Total cash cost/oz 741 804 828   751 749
AISC/OZ 773 895 915   799 830

Q3-2022 vs Q2-2022  Insights

YTD-2022 vs YTD-2021 Insights

2022 Outlook

Mana Gold Mine, Burkina Faso

Table 11: Mana Performance Indicators

For The Period Ended Q3-2022 Q2-2022 Q3-2021   YTD-2022 YTD-2021
OP tonnes ore mined, kt 76 376 592   922 1,496
OP total tonnes mined, kt 76 837 5,114   2,557 20,834
OP strip ratio (incl. waste cap) 0.00 1.23 7.64   1.77 12.93
UG tonnes ore mined, kt 250 196 199   645 658
Tonnes milled, kt 691 652 667   1,964 1,942
Grade, g/t 1.90 2.83 2.50   2.54 2.62
Recovery rate, %      92      90      91        91      91 
PRODUCTION, KOZ 42 55 49   149 151
Total cash cost/oz 1,023 880 986   944 932
AISC/OZ 1,098 905 1,029   993 996

Q3-2022 vs Q2-2022  Insights

YTD-2022 vs YTD-2021 Insights

2022 Outlook

Sabodala-Massawa Gold Mine, Senegal

Table 12: Sabodala-Massawa Performance Indicators

For The Period Ended Q3-2022 Q2-2022 Q3-2021   YTD-2022 YTD-2021
Tonnes ore mined, kt 1,297 1,717 1,717   4,722 4,884
Total tonnes mined, kt 11,761 12,777 11,515   36,614 28,144
Strip ratio (incl. waste cap) 8.07 6.44 5.71   6.75 4.76
Tonnes milled, kt 1,034 1,048 1,079   3,136 2,696
Grade, g/t 2.84 2.38 3.32   2.78 3.11
Recovery rate, %      88       89       90         89      90 
PRODUCTION, KOZ 86 73 106   256 241
Total cash cost/oz 665 669 492   584 528
AISC/OZ 779 779 655   703 667

Q3-2022 vs Q2-2022  Insights

YTD-2022 vs YTD-2021 Insights

2022 Outlook

Plant Expansion

Wahgnion Gold Mine, Burkina Faso

Table 13: Wahgnion Performance Indicators

For The Period Ended Q3-2022 Q2-2022 Q3-2021   YTD-2022 YTD-2021
Tonnes ore mined, kt 841 805 917   2,746 2,753
Total tonnes mined, kt 8,249 9,437 6,154   27,859 18,220
Strip ratio (incl. waste cap) 8.81 10.72 5.71   9.15 5.62
Tonnes milled, kt 939 997 809   2,910 2,363
Grade, g/t 1.13 0.90 1.40   1.00 1.35
Recovery rate, %      92      92      93        92      94
PRODUCTION, KOZ 32 27 34   88 100
Total cash cost/oz 1,475 1,409 983   1,338 897
AISC/OZ 1,647 1,788 1,097   1,590 964

Q3-2022 vs Q2-2022  Insights

YTD-2022 vs YTD-2021 Insights

2022 Outlook

LAFIGUÉ DEVELOPMENT PROJECT   

EXPLORATION ACTIVITIES

•   Endeavour continued to advance its extensive FY-2022 exploration programme of $80.0 million, with over 340,000 meters of drilling completed year to date, amounting to a total spend of $68.1 million, of which $23.2 million was spent in Q3-2022.

•   During the year to date, exploration activities were mainly focussed on expanding resources at existing operations and delineating new greenfield opportunities, with significant success achieved at the Tanda-Iguela property in Côte d'Ivoire, where a maiden resource is expected to be defined in Q4-2022. Furthermore, following exploration successes across the group, Endeavour expects to publish a resource update for its Ity mine later in Q4-2022, and its other mines within its year-end  resource update in Q1-2023.

•  Endeavour remains on track to achieve its 5 year exploration target of discovering 15 to 20Moz of Indicated resources over the 2021 to 2025 period, at the low discovery cost of less than $25 per ounce.

Table 14: Consolidated Q3-2022 exploration expenditures and 2022 guidance1

All amounts in US$ million Q3-2022
ACTUAL 		YTD-2022
ACTUAL 		FY-2022 GUIDANCE
Boungou mine 0.3 1.9 4.0
Houndé mine 5.3 10.9 14.0
Ity mine 3.5 8.0 10.0
Mana mine 0.3 5.6 6.0
Sabodala-Massawa mine 3.4 12.5 15.0
Wahgnion mine 2.2 7.0 9.0
Lafigué project 1.4 6.2 7.0
Greenfield and development projects 6.8 16.0 15.0
TOTAL 23.2 68.1 80.0

Note: Amounts may differ from Management Report due to rounding
1Consolidated exploration expenditures include expensed, sustaining, and non-sustaining exploration expenditures.

Boungou mine

Houndé mine 

Ity mine

Mana mine

Sabodala-Massawa mine

Wahgnion mine

Lafigué project, on the Fetekro property

Kalana project 

Greenfield exploration

BAMBARAYA TECHNICAL NOTES

The Bambaraya model, statistical analysis and Mineral Resource Estimate was prepared by Helen Oliver, FGS, C.Geol., Endeavour’s Group Resource Geologist, a Qualified Person as defined by the National Instrument 43-101 (“NI 43-101”).  The Bambaraya Mineral Resource Estimate (“MRE”) follows the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by NI 43-101. The effective date of the MRE is 10 March 2022. The Mineral Resource is reported at a $1,500/oz gold price Whittle pit optimisation and a 0.50 g/t gold cut-off grade.

The Bambaraya deposit is located in the northern corner of the Massawa Mining Lease approximately 13 km south of the Sabodala-Massawa processing facility. The mineralisation, controlled by a northeast trending splay of the Sabodala Shear Zone (SSZ), is recognised over two kilometres of strike length with an average width of 250 meters.  It is predominately hosted by a very steep brecciated contact zone between pillowed basalts and andesite units.

The Bambaraya Mineral Resource is based on a drill hole database as of 15 February 2022.  The mineralisation model was developed in Geovia Surpac modelling software using geological information from 28 diamond drillholes totalling 4,641 meters completed in 2007 and 2021, and from 226 reverse circulation holes totalling 22,786 meters completed in 2010 and 2021. Seven mineralised domains were interpreted and modelled into 3D wireframes at a threshold of 0.4 g/t gold on 40 meter drill lines.  The gold assays were composited to one metre intervals within the mineralised wireframes and capped at 10 g/t gold.  Spatial analysis of the northern and southern gold domains using variograms indicated poor to moderate continuity; hence, gold grades were interpolated using an inverse distance squared (ID2) estimation method constrained by the mineralised wireframes.  Density parameters were determined by weathering type; the saprolite was assigned a density of 2.2 t/m3, saprock 2.7 t/m3 and fresh rock 2.8 t/m3.

No Measured Mineral Resources were estimated. The mineralisation was classified as either Indicated or Inferred Mineral Resources depending on sample spacing, number of informing samples, confidence in mineralised zone continuity and geostatistical analysis. The Indicated Mineral Resources were defined by least three drill holes within a 50 meter search using a minimum of five and a maximum of 15 samples. Inferred mineral resource classification was defined by a minimum of three samples within a 100 meter search.  The Mineral Resources were constrained by $1,500/oz gold price within a Whittle pit optimisation and a 0.50 g/t gold cut-off grade. The Whittle pit shell optimisations assumed a base mining cost of $2.00/t and an adjusted ore mining and haulage cost of $2.40/t for oxide, $2.60/t for transition and $3.00/t for fresh rock; a mining recovery of 95%; no mining dilution; a pit slope of 40 degrees; average gold recovery of 90%; a processing and G&A cost of $14.00/t for oxide, $16.00/t for transition and $18.00/t for fresh rock; and a gold selling cost (royalty, refining and selling) of $80/oz.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.  Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers.

Drilling and assay procedures

The reverse circulation drill programme samples were collected on one metre intervals using dual tube, a percussion hammer and drop centre bit.  The material passed through a cyclone which was thoroughly cleaned after every sample by flushing the hole and at the end of every drill rod run (typically three or six metres). Samples were split at the drill site using a three-tier riffle splitter with both bulk and laboratory sample weights and moisture recorded.  Samples sent to the laboratory were between four and five kilogrammes in weight.  Representative samples for each interval were collected with a spear, sieved into chip trays and retained for reference.

Drill core samples were selected by Endeavour geologists and sawn in half with a diamond blade at the Massawa Exploration Camp. Half of the core was retained for reference purposes. Sample intervals were generally one metre in length.

The majority of the samples (from 206 drill holes) were transported by road to the ALS sample preparation laboratory in Kedougou, Senegal and then the pulps were sent to ALS Bamako, Mali in secured, poly-woven bags.  A minority of samples (from 32 Phase I drill holes) were assayed at the SGS Sabodala Gold Mine laboratory for rapid turnaround.  On arrival at the sample preparation laboratory, the RC and DD samples were weighed and crushed to 6 mm (70% passing), and a two-kilogramme sample taken by a rotary split which was pulverised to 75 μm (85% passing).   The two kilogramme pulverised samples were analysed for gold by Fire Assay (50 g charge) with an Atomic Absorption (AA) finish.

Quality assurance and quality control procedures

The sampling and assaying of Bambaraya samples were monitored through the implementation of a quality assurance/quality control (QA/QC) programme with the use of Certified Reference Materials (“standards”), blanks and duplicates inserted into the sample stream by Endeavour geologists. QA/QC results were reviewed on a certificate basis and “failed” samples were identified and re-assayed according to the Endeavour QA/QC protocol.  The Bambaraya exploration database is held within a propriety electronic secure database system with a dedicated Database Manager.

CONFERENCE CALL AND LIVE WEBCAST

Management will host a conference call and webcast on Thursday 10 November, at 8:30 am EST / 1:30 pm GMT to discuss the Company's financial results.

The conference call and webcast are scheduled at:

The webcast can be accessed through the following link:

Analysts and investors are also invited to participate and ask questions by registering for the conference call dial-in via the following link:

The conference call and webcast will be available for playback on Endeavour's website.

QUALIFIED PERSONS

Mark Morcombe, COO of Endeavour Mining PLC., a Fellow of the Australasian Institute of Mining and Metallurgy, is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and approved the technical information in this news release.

  
CONTACT INFORMATION

For Investor Relations enquiries: For Media enquiries:
Martino De Ciccio Brunswick Group LLP in London
VP – Strategy & Investor Relations Carole Cable, Partner
+442030112706 +447974982458

 

ABOUT ENDEAVOUR MINING CORPORATION

Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.

A member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates.  Endeavour is admitted to listing and to trading on the London Stock Exchange and the Toronto Stock Exchange, under the symbol EDV.

For more information, please visit www.endeavourmining.com.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This document contains "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact, are “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, the success of exploration activities, the expectation that an exploration permit will be received, the anticipated timing for the payment of a shareholder dividend and statements with respect to future dividends payable to the Company’s shareholders, the completion of studies, mine life and any potential extensions, the future price of gold and the share buyback programme. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates", believes”, “plan”, “target”, “opportunities”, “objective”, “assume”, “intention”, “goal”, “continue”, “estimate”, “potential”, “strategy”, “future”, “aim”, “may”, “will”, “can”, “could”, “would” and similar expressions .

Forward-looking statements, while based on management's reasonable estimates, projections and assumptions at the date the statements are made, 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 or completion of divestitures; risks related to international operations; risks related to general economic conditions and the impact of credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; Endeavour’s financial results, cash flows and future prospects being consistent with Endeavour expectations in amounts sufficient to permit sustained dividend payments; the completion of studies on the timelines currently expected, and the results of those studies being consistent with Endeavour’s current expectations; actual results of current exploration activities; production and cost of sales forecasts for Endeavour meeting expectations; 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; extreme weather events, natural disasters, supply disruptions, power disruptions, accidents, pit wall slides, 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 legislation, regulation of mining operations, tax rules and regulations and changes in the administration of laws, policies and practices in the jurisdictions in which Endeavour operates; disputes, litigation, regulatory proceedings and audits; adverse political and economic developments in countries in which Endeavour operates, including but not limited to acts of war, terrorism, sabotage, civil disturbances, non-renewal of key licenses by government authorities, or the expropriation or nationalisation of any of Endeavour’s property; risks associated with illegal and artisanal mining; environmental hazards; and risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic.

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.

The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board of Directors, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with the Company's constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board of Directors deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.

NON-GAAP MEASURES

Some of the indicators used by Endeavour in this press release represent non-IFRS financial measures, including “all-in margin”, “all-in sustaining cost”, “net cash / net debt”, “EBITDA”, “adjusted EBITDA”, “net cash / net debt to adjusted EBITDA ratio”, “cash flow from continuing operations”,  “total cash cost per ounce”, “sustaining and non-sustaining capital”, “net earnings”, “adjusted net earnings”, “operating cash flow per share”, and “return on capital employed”. These measures are presented as they can provide useful information to assist investors with their evaluation of the pro forma performance. Since the non-IFRS performance measures listed herein do not have any standardised definition prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the non-GAAP measures section in this press release and in the Company’s most recently filed Management Report for a reconciliation of the non-IFRS financial measures used in this press release.  

Corporate Office: 5 Young St, Kensington, London W8 5EH, UK

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