West Africa's Largest Gold Producer Endeavour Mining Focuses on Operational Excellence and Shareholder Value

• Endeavour Mining (EDV) is a major West African gold producer, focused on the region due to its attractive gold discoveries over the past decade.
• Sebastian de Montessus, President and CEO, has been with Endeavour Mining for six years, leading efforts to build and grow the business.
• The company has taken a three-step approach to growth: organic expansion through building mines and exploration, followed by consolidating its West African position through acquisitions of companies like Semafos and Teranga.
• The focus is on maintaining a resilient business with consistent organic growth and disciplined cost management. The company aims to discover 15-20 million ounces of indicated resources in the next five years.

About Endeavour Mining

Headquartered in London, Endeavour Mining has established itself as the leading gold producer in West Africa. With a portfolio of assets spread across countries like Mali, Burkina Faso, Cote d'Ivoire and Senegal, the company produces over 1.5 million ounces of gold per year.

Endeavour is led by President and CEO Sebastien de Montessus, who has successfully transformed the business after taking charge in 2016 when it was a relatively small $300 million market cap company. Under his leadership over the last 6 years, Endeavour has become a multi-billion dollar gold producer through a relentless focus on operational performance, financial discipline and unlocking organic growth.

Interview with President & CEO, Sebastien de Montessus

Strong History of Operational Delivery

One of the hallmarks of Endeavour under de Montessus has been its ability to consistently meet targets and deliver operational excellence. The company has invested nearly $1 billion into its portfolio, building two new flagship mines Houndé in Burkina Faso and Ity in Cote d'Ivoire.

Extensive exploration programs have also helped Endeavour delineate over 11 million ounces of indicated resources during this period. This focus on investing in the business has driven a substantial increase in production from around 300,000 ounces in 2016 to over 1.5 million ounces in 2021.

Just as importantly, Endeavour has executed this growth while maintaining cost discipline. Its all-in sustaining costs (AISC) have averaged under $900/oz over the last four years, among the lowest in the industry. This has enabled the company to generate strong cash flow through the gold price cycle.

In 2021, Endeavour produced 1.52 million ounces of gold at an AISC of $880/oz, generating net earnings of $553 million and operating cash flow of $1.2 billion. Meeting guidance for the third consecutive year has established Endeavour as a reliable producer.

Balanced Approach to Capital Allocation

Endeavour takes a balanced approach to allocating its capital, prioritizing investment in existing assets and new growth projects while also returning cash to shareholders.

The company has an attractive pipeline of organic growth initiatives, including expanding its flagship Sabodala-Massawa mine in Senegal to increase annual production above 450,000 ounces. Meanwhile, the Fetekro greenfield project in Cote d'Ivoire is being advanced to add to production in 2023.

Endeavour is also investing $80 million per year in exploration across its portfolio. Targeting discovery of 15-20 million ounces of indicated resources over the next 5 years provides significant potential to extend mine lives and underpin further growth.

The company also has a clear framework for shareholder returns. Recognizing the need to provide income, Endeavour initiated a dividend policy in 2021 tied to its free cash flow generation. The current dividend yields over 3% and is supplemented by share buybacks during periods of strong profitability.

Solid Platform for Long-Term Growth

In addition to its operating success and shareholder returns, Endeavour has established a strong foundation to support continued growth. The company has a targeted head office team and decentralized model, with the majority of employees based at mine sites to facilitate quick and efficient decision making.

Endeavour's listing on the London Stock Exchange's Premium Segment in 2021 raised its profile with major institutional investors seeking increased exposure to gold. The company is now amongst the top 5 gold stocks traded in London by value.

And despite its rapid growth in recent years, Endeavour still sees significant opportunity to create value from its portfolio. By maintaining operational discipline and allocating capital prudently, the company aims to further optimize its existing assets and development projects.

Simultaneously, the extensive exploration program provides upside potential for new discoveries to extend mine lives. With its strong track record and focus on performance, Endeavour is positioned to remain West Africa's premier gold mining business.

5 Key Takeaways for Investors

1. Leading gold producer in West Africa with over 1.5M oz of annual production
2. Strong track record of meeting operational targets and guidance
3. Low all-in sustaining costs under $900/oz provide financial resilience
4. Organic growth pipeline focused on expanding flagship assets
5. Committed to shareholder returns through sustainable dividend and buyback policy

Conclusion

Endeavour Mining represents an attractive investment opportunity amongst gold equities, combining operational excellence with organic growth and shareholder returns. For investors seeking exposure to an emerging gold producer with the ability to deliver sustainable value, Endeavour checks all the boxes.