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Endeavour Mining Corporation (EDV.TO)

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35.13-0.54 (-1.51%)
At close: 3:59PM EDT
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Previous Close35.67
Open35.88
Bid34.91 x 0
Ask35.24 x 0
Day's Range34.78 - 35.88
52 Week Range15.68 - 38.98
Volume356,563
Avg. Volume563,398
Market Cap5.728B
Beta (5Y Monthly)0.69
PE Ratio (TTM)N/A
EPS (TTM)-1.46
Earnings DateNov. 03, 2020 - Nov. 09, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateJan. 26, 2009
1y Target Est34.77
  • Endeavour Reports Q2-2020 Results
    GlobeNewswire

    Endeavour Reports Q2-2020 Results

    ENDEAVOUR REPORTS Q2-2020 RESULTS On track to meet FY-2020 guidance  · Significant improvement in leverage ratio  · Dividend initiation approaching HIGHLIGHTS  * Production of 149koz at an AISC of $939/oz in Q2-2020; Production of 321koz at an AISC of $918/oz in H1-2020 * Integration process is largely complete with the SEMAFO assets slotted into Endeavour's well-established West African operating model * On track to achieve full year production and AISC guidance for both Endeavour and SEMAFO assets despite COVID-19, resulting in a Pro Forma guidance of 995—1,095koz at an AISC of $865—915/oz * Operating Cash Flow before Working Capital of $85m or $0.77/share for Q2-2020; $205m or $1.85/share for H1-2020 * Adjusted Net Earnings of $53m or $0.48/share in Q2-2020; $86m or $0.78/share in H1-2020 * Strong deleveraging as Net Debt / Adjusted EBITDA ratio stands at below 0.5x following the SEMAFO transaction close, compared to 2.75x for the same period last year * Endeavour expects to reach a net cash position in the coming quarters, at which point it intends to pay an initial dividend  George Town, August 5, 2020 – Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce its financial and operating results for the second quarter and half year 2020, with highlights provided in table 1 and 2 below. Table 1: Endeavour Operational and Financial Highlightsin US$ million unless otherwise specified. THREE MONTHS ENDED SIX MONTHS ENDED     June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Δ YTD     PRODUCTION AND AISC HIGHLIGHTS               Gold Production, koz 149 172 171 321 292 +10%   Gold Sold, koz 150 175 171 324 292 +11%   Realized Gold Price2, $/oz 1,689 1,546 1,285 1,612 1,271 +27%   All-in Sustaining Cost1, $/oz 939 899 790 918 826 +11%   All-in Sustaining Margin1,3, $/oz 750 647 494 694 445 +56%   CASH FLOW HIGHLIGHTS 1               All-in Sustaining Margin4, $m 112 113 84 225 130 +74%   All-in Margin5, $m 73 80 46 153 68 +124%   Operating Cash Flow Before Non-Cash Working Capital, $m  85 119 57 205 105 +94%   Operating Cash Flow Before Non-Cash Working Capital, $/share 0.77 1.08 0.52 1.85 0.96 +92%   Operating Cash Flow, $m  57 126 62 183 85 +115%   Operating Cash Flow, $/share 0.52 1.14 0.57 1.66 0.78 +113%   PROFITABILITY HIGHLIGHTS               Revenues, $m 253 270 219 523 371 +41%   Adjusted EBITDA1, $m 120 130 94 250 135 +86%   Net Earnings Attr. to Shareholders1, $m (37) 26 1 (11) (14) n.a.   Net Earnings1, $/share (0.34) 0.24 0.01 (0.10) (0.13) n.a.   Adjusted Net Earnings Attr. to Shareholders1, $m 53 34 9 86 4 n.a.   Adjusted Net Earnings per Share1, $/share 0.48 0.30 0.08 0.78 0.03 n.a   BALANCE SHEET HIGHLIGHTS1               Net Debt, $m 473 473 660 473 660 (28)%   Net Debt / Adjusted EBITDA (LTM) ratio 1.00 1.06 2.75 1.00 2.75 (64)%   1This is a non-GAAP measure. Refer to the non-GAAP measure section of the MD&A. 2Realized Gold Price inclusive of Karma stream; 3Realized Gold Price less  All-in Sustaining Cost per ounce; 4Net revenue less All-in Sustaining Costs; 5Net revenue less All-in Sustaining Costs and Non-Sustaining capital.Table 2: Pro Forma Highlights3 (in US$ million) THREE MONTHS ENDED 30 JUNE, 2020 SIX MONTHS ENDED 30 JUNE, 2020 Endeavour SEMAFO3 Pro Forma3 Endeavour SEMAFO3 Pro Forma3 PRODUCTION AND AISC HIGHLIGHTS             Gold Production, koz 149 79 228 321 158 479 Gold Sold, koz 150 68 218 324 145 469 All-in Sustaining Cost1, $/oz 939 1,021 979 918 951 942 BALANCE SHEET HIGHLIGHTS1             Net Debt inclusive of La Mancha investment2  $m 473 (64) 309 473 (64) 309 Net Debt / Adjusted EBITDA (LTM) ratio 1.00x n.a. 0.44x 1.00x n.a. 0.44x 1This is a non-GAAP measure. Refer to the non-GAAP measure section of the MD&A for Endeavour and refer to the non-IFRS measures note in this press release for SEMAFO. 2La Mancha $100 million investment occurred as subsequent event on July 3, 2020. SEMAFO cash amount excludes restricted cash related to the transaction. 3Pro Forma and SEMAFO figures are non-GAAP. Endeavour believes that operating and financial figures for SEMAFO are representative of the period ended June 30, 2020 as the Transaction closed on July 1, 2020. Figures presented and disclosed relating to SEMAFO operations represent classifications and calculations performed using consistent historical SEMAFO methodologies. Potential variances to existing Endeavour classifications and calculation methodologies may result in adjustments affecting results. Potential differences may include, but not limited to, classification of corporate costs and operating expenses, classification of mining, processing, and site G&A costs, classification of capitalized waste as sustaining and non-sustaining, valuation of stockpiles and gold in circuit. Accounting treatments and classifications will be aligned with Endeavour methodologies and policies. Pro forma information has not been adjusted and is comprised of the simple sum of information provided for each of Endeavour and SEMAFO.Sébastien de Montessus, CEO, commented: "We are proud of our achievements during the first half of the year as we continued to deliver on our strategic priorities, despite the global pandemic. I’d like to thank our employees and partners for their dedication to ensuring business continuity. Thanks to these efforts, we remain on track to achieve our full year production and AISC guidance and expect a significantly stronger performance in the second half of the year with higher grades.  We have also maintained our exploration activities, with 85% of our FY-2020 budget already spent in the first half of the year, ahead of the rainy season. The team continue to deliver successful results, with 0.8 million ounces of M&I resources recently added at our Ity and Houndé mines while an updated resource at Fetekro is expected to be published shortly.We are very pleased with the progress made to integrate the SEMAFO assets within our well-established West African operating model, which is now largely complete. These operations are already benefiting from our strong local presence and regional expertise and we look forward to realizing synergies. The combined group is now a top 15 global gold producer, with significant optionality within its portfolio and a healthy balance sheet with a leverage ratio of below 0.5 times. Our goal is to completely deleverage the balance sheet in the coming quarters to further derisk the business, at which point we intend to initiate dividend payments.”UPCOMING CATALYSTSThe key upcoming expected catalysts are summarized in the table below.Table 3: Key Upcoming CatalystsTIMING CATALYST   Q3-2020 Houndé Start of mining higher grade Kari Pump deposit Q3-2020 Ity Updated Le Plaque reserve estimate  Q3-2020 Houndé Maiden reserve estimate for Kari West, Kari Center and Kari Gap Q3-2020 Fetekro Updated resource estimate Late Q3-2020 Fetekro Preliminary Economic Assessment Q4-2020 Boungou Re-start of mining operations MANAGEMENT CHANGEWith the successful integration of the SEMAFO assets into Endeavour's West African operating model largely complete, Benoit Desormeaux, former CEO of SEMAFO who joined Endeavour as President upon transaction close, has decided to step down to pursue other opportunities.“I would like to thank Benoit for his significant efforts to build SEMAFO over the last decade and his help over the recent months in completing the transaction and the integration. On behalf of the Board of Directors I wish him all the best in the future.” added Sébastien de Montessus. Benoit Desormeaux stated, "It has been a distinct pleasure to be part of the SEMAFO team for the past 23 years and I look forward to following Endeavour’s activities as a leading West African producer. In the wake of the smooth integration process, I wish the combined company and its people every success."COVID-19 UPDATESince the outbreak of the global COVID-19 pandemic, Endeavour has focused on the well-being of its employees, contractors and local communities, while ensuring business continuity. In addition, host governments in Cote d’Ivoire, Burkina Faso and Mali have taken strict and pro-active measures to minimize overall exposure in their countries.Protecting the well-being of employees, contractors, and local communities * Endeavour has implemented a range of preventative measures across all its sites, including social distancing, health screening, augmented hygiene and restricted access to sites. * Endeavour operates in close coordination with the national health authorities and is using the epidemiological surveillance system it developed to assist host countries (Cote d’Ivoire, Burkina Faso and Mali) with the monitoring and tracking of the pandemic in these countries. * Endeavour’s donations of key medical equipment and supplies to regional, community and on-site medical centers continued during the quarter across all three countries of its operations. * A range of community programs were implemented during the quarter including micro-credit programs, which help to support people in host communities whose livelihoods have been impacted by the pandemic, and e-learning programs in Burkina Faso to facilitate access to distance learning for students.Business continuity response plan * In early March 2020, Endeavour put in place a business continuity plan to mitigate the risks and potential impact of the global COVID-19 pandemic, which has three levels of response: * Level 1, which the Group is currently operating under, involves a range of preventative measures including temperature checks, restricted access to sites, social distancing, increased hygiene standards and mandatory quarantine periods for employees arriving in-country, while otherwise continuing operations as normal. * Level 2 is designed to be initiated should COVID-19 become more prevalent in the countries in which the Group operates and involves comprehensive restrictions on movement into and out of the mines. Under these circumstances, Endeavour’s mines would be isolated, but mining operations and the shipment of gold would continue. * Level 3 involves the full or partial suspension of mining and processing operations. * In addition, the Group has also taken a number of proactive steps, including: * Assessing the supply chain with a focus on ensuring continuity of supply in a range of scenarios. Endeavour’s shift to national suppliers located within host countries over the past 12 months has mitigated the impact of closed borders. * To ensure that Endeavour would have substantial liquidity and financial flexibility to operate under various stress-test scenarios, Endeavour drew down the entirety of its available Revolving Credit Facility (“RCF”) in Q1-2020. Endeavour has now commenced repaying the RCF and expects to continue to reduce the drawn amount during Q3-2020 and Q4-2020.  * Endeavour assessed its ability to curtail its operations to selectively mine higher grade ore with low strip ratios should mining activity need to be reduced in response to an increase in COVID-19 prevention measures. * Each of Endeavour’s operations are continuing to operate at normal levels with gold shipments and sales continuing, albeit with increased health and safety measures and decreased efficiencies. * Employees in a role that enabled them to work from home were asked to do so. The Company’s cloud-based strategy ensured that employees could access all the relevant applications, systems and collaboration tools that they needed to perform their duties. In addition, the cyber security response was updated and is constantly tracked in light of the increased cyber security risk generally observed during the pandemic.OPERATIONAL PERFORMANCE SUMMARY * Continued strong safety record for the Group, with a low Lost Time Injury Frequency Rate (“LTIFR”) of 0.21 for the trailing 12 months. * As described in the Outlook Section on page 21, Endeavour remains on track to achieve its Group production and AISC guidance, despite the COVID-19 pandemic, as it expects a higher grade profile in H2-2020. Endeavour is also maintaining SEMAFO's production and AISC guidance on Mana and Boungou, and therefore expects the FY-2020 Pro Forma Group production to amount to 995—1,095koz in 2020 at an AISC of $865—915/oz.  * Endeavour expects stronger cash flow generation in the second half of the year, due to higher production, lower non-sustaining spend (already 65% of FY-2020 guidance completed in H1), lower exploration spend (already 85% of FY-2020 guidance completed in H1), the benefit of higher gold prices and its gold collar program (with a cap of $1,500/oz for half its production) finishing at the end of June 2020. * H1-2020 production for Endeavour's assets amounted to 321koz, an increase over H1-2019 mainly due to the start-up of the Ity CIL operation in late Q1-2019 while AISC increased in line with guidance. * Q2-2020 production for Endeavour's assets amounted to 149Koz, a decrease over Q1-2020, due to a lower production at Ity and Karma.Table 4: Group and Pro Forma Group1(All amounts in koz, on a 100% basis) THREE MONTHS ENDED SIX MONTHS ENDED   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019     Agbaou 24 27 35 52 66   Ity Heap Leach — — — — 3   Ity CIL 47 61 58 108 66   Karma 20 28 21 48 43   Houndé 57 56 58 113 114   ENDEAVOUR PRODUCTION 149 172 171 321 292   Mana1 48 50 37 97 78   Boungou1 31 29 63 61 125   PRO FORMA PRODUCTION2 228 251 271 479 494   1Pro forma information has not been adjusted and is comprised of the simple sum of information provided for each of Endeavour and SEMAFO. 2 See Footnote 2 below Table 5.Table 5: Group and Pro Forma Group All-In Sustaining Costs1(All amounts in US$/oz) THREE MONTHS ENDED SIX MONTHS ENDED   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019     Agbaou 955 951 788 953 786   Ity Heap Leach — — — — 1,086   Ity CIL 784 651 585 707 585   Karma 952 866 1,047 904 999   Houndé 965 1,077 836 1,020 808   Corporate  G&A 34 30 30 32 38   Sustaining Exploration — — — — —   ENDEAVOUR AISC1 939 889 790 918 826   Mana2 1,251 1,051 1,152 1,137 1,113   Boungou2 710 549 476 635 505   PRO FORMA AISC2 979 910 n.a. 942 n.a.   1This is a non-GAAP measure. Refer to the non-GAAP measure section of the MD&A for Endeavour and refer to the non-IFRS measures note in this press release for SEMAFO. 2Endeavour believes that operating and financial figures for SEMAFO are representative of the period ended June 30, 2020 as the Transaction closed on July 1, 2020. Figures presented and disclosed relating to SEMAFO operations represent classifications and calculations performed using consistent historical SEMAFO methodologies. Potential variances to existing Endeavour classifications and calculation methodologies may result in adjustments affecting results. Potential differences may include, but not limited to, classification of corporate costs and operating expenses, classification of mining, processing, and site G&A costs, classification of capitalized waste as sustaining and non-sustaining, valuation of stockpiles and gold in circuit. Accounting treatments and classifications will be aligned with Endeavour methodologies and policies. Pro forma information has not been adjusted and is comprised of the simple weighted average of information provided for each of Endeavour and SEMAFO.ITY MINEIty CIL Q2 2020 vs Q1 2020 Insights * Despite the COVID-19 pandemic, Ity continued to operate at near-normal levels under the Level 1 Response Environment, as describe in COVID-19 Section. The mine plan prioritized both waste extraction and the completion of the TSF raise in Q2-2020 which provides the Company with increased operational flexibility should the mine be forced to operate under a Level 2 or 3 Response Environment which would restrict the number of employees on site and reduce mining activity. * Production decreased as the mine plan prioritized both waste extraction and the TSF raise which resulted in a sub-optimal processed ore blend leading to short-term variances in mill throughput, recoveries and processed grade * Total tonnes mined remained flat, however tonnes of ore mined decreased by 16% as a greater focus was placed on waste extraction. More waste was extracted at the Ity pit as a result of accelerating the previously planned cutback. In addition, pre-stripping commenced at the Colline Sud Pit, following a change in the mine plan to provide greater operational flexibility. In addition to the operating data presented in the table above, 0.9Mt of waste were mined outside of existing pits to accelerate the planned TSF raise. * The processed grade decreased slightly as a higher proportion of the mill feed was supplemented by the lower  grade oxide stockpiles as mining focused on waste extraction. * Tonnes milled decreased due to lower mill availability driven by longer maintenance shutdowns related to COVID-19 (more time required to get technicians and spare parts on site), however throughput remained within 5% of the nominal plant capacity throughput. * Recovery rates reduced, as expected, due to greater quantities of transitional and fresh ore processed from Daapleu with associated lower recoveries. * AISC increased due to lower ounces of gold sold, higher royalty rates, a higher strip ratio, lower recovery rates and higher unit mining costs. * Mining unit costs increased  from $2.37 to $3.12 per tonne mined due to the higher drill and blast and equipment maintenance costs associated with mining an increased proportion of fresh material. * Processing unit costs remained broadly flat, despite greater downtime and lower mill throughput.  * Sustaining capital increased  from $1.1 million to $2.3 million for the quarter due to the change-out on heavy mining equipment. * Non-sustaining capital remained flat. Q2-2020 includes accelerated waste capitalization for the new Colline Sud pit as well as the TSF raise which was completed within the same period.H1 2020 vs H1 2019 Insights * Production increased as the Ity CIL plant operated for the full six month period in H1-2020 compared to half the period in H1-2019 as the plant had its first gold pour in March 2019 with commercial production declared on April 8th 2019. AISC increased as guided due to mining at deeper elevations and increased sustaining capital related to the component change-out associated with heavy mining equipment.Table 6: Ity CIL Quarterly Performance IndicatorsFor The Quarter Ended Q2-2020 Q1-2020 Q2-2019 Tonnes ore mined, kt 1,650 1,909 1,409 Strip ratio (incl. waste cap) 2.26 1.74 1.75 Tonnes milled, kt 1,180 1,410 934 Grade, g/t 1.59 1.63 2.03 Recovery rate, % 77 84 90 PRODUCTION, KOZ 47 61 58 Cash cost/oz 639 558 537 AISC/OZ 784 651 585 Table 7: Ity CIL Half Yearly Performance IndicatorsFor The Half Year Ended H1-2020 H1-2019 Tonnes ore mined, kt 3,559 2,523 Strip ratio (incl. waste cap) 1.98 1.86 Tonnes milled, kt 2,590 1,191 Grade, g/t 1.61 2.03 Recovery rate, % 81 90 PRODUCTION, KOZ 108 66 Cash cost/oz 592 537 AISC/OZ 707 585 H2 2020 Outlook * Ity is expected to achieve the bottom end of its full year 2020 production guidance range of between 235,000 - 255,000 ounces and the top end of its AISC guidance of $630 - $675 per ounce. * Plant feed in H2-2020 is expected to be sourced primarily from the Daapleu pit, while continuing to be supplemented by ore from the Ity pit and lower grade historic heap dumps. As initially guided, the proportion of fresh ore is expected to remain high for the remainder of the year as the pits become deeper whilst processed grades and recovery rates are expected to remain stable. * Sustaining capital spend for FY-2020 is expected to amount to approximately $8.0 million (of which $3.4 million has been incurred in H1-2020), an increase compared to the initial FY-2020 guidance of $4.0 million due to increased waste extraction following the change in the mine plan. * Non-sustaining capital spend for FY-2020  is expected to amount to approximately $35.0 million (of which $21.7 million has been incurred in H1-2020), an increase compared to the initial FY-2020 guidance of $26.0 million as the infrastructure and river diversion work for the Le Plaque high grade deposit, which was originally planned for 2021, is now expected to be brought forward given the high confidence in obtaining a mining permit in the coming months and the expected positive impact of this deposit.Exploration Activities * An exploration program of up to $14.0 million totaling approximately 100,000 meters has been planned for 2020, with the aim of growing the Le Plaque, Bakatouo, and Daapleu deposits, and testing other targets such as Floleu and Samuel. * In H1-2020, $12.0 million was spent, comprised of nearly 85,000 meters drilled, with eight rigs active over the greater Ity area. The majority of drilling was focused on the Le Plaque area and on near-mill targets such as Verse West and Leach pad and Daapleu SW.  * As announced on July 7, 2020, drilling has resulted in a 43% increase in Le Plaque’s Indicated resource estimate to 689,000 ounces. In addition, several other nearby targets have also been identified. At least 15,000 meters of drilling are planned for the remainder of 2020. Following the recent resource addition, the updated Le Plaque reserve estimate is expected to be published in Q3-2020 and integrated into the Ity mine plan. HOUNDÉ MINEQ2 2020 vs Q1 2020 Insights * Despite the COVID-19 pandemic, Houndé continued to operate at near-normal levels under the Level 1 Response Environment, as describe in COVID-19 Section above. Given the flexibility available within the Houndé mine plan, notably due to the slightly earlier than expected receipt of the mining permit for the high grade Kari Pump deposit, a portion of the initially scheduled waste capitalization activity was delayed to later in the year. As such, Houndé’s performance was better than initially anticipated. * Production increased slightly as higher processed grades and a slightly better recovery rate more than offset the slightly lower throughput. * Tonnes of ore mined increased due to the lower overall strip ratio as scheduled waste capitalization activity was delayed to later in the year. Ore was mainly sourced from the Vindaloo Central and Bouéré pits, which have a lower strip ratio, and supplemented by ore from the Vindaloo Main and Vindaloo North pits which have a slightly higher strip ratio.  * Tonnes milled reduced slightly, however continued to perform well above nameplate, as the ore blend continued to be mainly fresh. * Processed grades increased as the strong waste capitalization at Vindaloo Central during the previous quarter  provided access to high grade ore. In addition, less low grade stockpiles were used to supplement mill feed given the increased mining activity. * Recovery rates increased slightly based on the ore blend characteristics. * AISC decreased mainly due to slightly higher sales volumes and lower mining unit costs which more than offset higher royalties and higher processing and G&A unit costs. * Mining unit costs decreased  from $2.25 to $2.15 per tonne due to lower production drilling and blasting activities required for the oxidized ore mined at the Vindaloo Central pit. * Processing unit costs increased from $12.49 to $14.31 per tonne driven by increased reagent costs. * Sustaining capital decreased slightly decreased from $11.8 million to $11.1 million due to the change in the mine plan. * Non-sustaining capital increased from $1.8 million to $5.8 million with the Q2-2020 spend mainly comprised of  compensation and resettlement for the Kari Pump area, as well as a TSF raise.H1 2020 vs H1 2019 Insights * Production remained steady as increased tonnes milled offset the lower recovery rate while processed grades remained flat. AISC increased as expected due to higher sustaining waste capitalization, higher royalty costs and a shift to mining and processing a higher proportion of harder fresh ore. Table 8: Houndé Quarterly Performance Indicators For The Quarter Ended Q2-2020 Q1-2020 Q2-2019 Tonnes ore mined, kt 1,072 900 917 Strip ratio (incl. waste cap) 9.73 11.57 8.97 Tonnes milled, kt 1,035 1,066 1,043 Grade, g/t 1.91 1.76 1.88 Recovery rate, % 92 91 93 PRODUCTION, KOZ 57 56 58 Cash cost/oz 632 744 621 AISC/OZ 965 1,077 836 Table 9: Houndé Half Yearly Performance IndicatorFor The Half Year Ended H1-2020 H1-2019 Tonnes ore mined, kt 1,972 1,686 Strip ratio (incl. waste cap) 10.57 10.00 Tonnes milled, kt 2,101 2,076 Grade, g/t 1.83 1.84 Recovery rate, % 91 93 PRODUCTION, KOZ 113 114 Cash cost/oz 687 630 AISC/OZ 1,020 808 H2 2020 Outlook * With the recent receipt of the Kari Pump mining permit, Houndé is expected to achieve the top end of its full year 2020 production guidance range of 230,000 - 250,000 ounces and the bottom end of its AISC guidance range of $865—$895 per ounce. * Higher grade material is planned to be processed in the second half of the year with mill feed from Vindaloo Main and Central supplemented by Kari Pump, which will be ramped up in Q4-2020. * The overall expected capital spend for FY-2020 is expected to remain unchanged at $59.0 million (of which $30.5 million was incurred in H1-2020). Sustaining and non-sustaining capital spends for FY-2020 are expected to amount to approximately $49.0 million and $10.0 million, respectively. Exploration * An exploration program of $11.0 million totaling approximately 94,000 meters has been initially planned for 2020, with the aim of delineating additional resources in the Kari area and at the Vindaloo South and Vindaloo North targets. In addition, other targets such as Dohoun and Sia/Sianikoui are expected to be tested. * In H1-2020, over 73,000 meters were drilled with up to 11 rigs active. Of the meters completed, over 44,000 meters were drilled for geotechnical and metallurgical purposes at Kari West, Kari Centre and Kari Gap, and sterilization and grade control at Kari Pump. The majority of remaining drill metres focused on the Kari area along with small reconnaissance drill campaigns at Sianikoui, Mambo and Marzipan which provided positive initial results. A new mineralized area was discovered, named Kari Gap, which is the extension of the Kari Center Main area.  * An updated resource estimate, incorporating 554,000 additional Indicated ounces for the entire Kari area, was published in early Q3-2020. * A reserve estimate update is expected to be released in Q3-2020, which will include maiden reserves for Kari West and will be followed by the publication of an updated mine plan for Houndé. In addition, a second reserve estimate update is expected to be published in Q4-2020 to include Kari Center Main and Kari Gap. AGBAOU MINEQ2 2020 vs Q1 2020 Insights * Despite the COVID-19 pandemic, Agbaou continued to operate at near-normal levels under the Level 1 Response Environment, as describe in COVID-19 Section above, with no material changes to its mine plan required. * Production decreased due to lower average processed grades and throughput while recovery rates remained flat. * Total tonnes mined decreased due to both fewer tonnes of ore mines and a lower overall strip ratio. Mining was focused on the deeper elevation of the North and South pits. Tonnes of ore mined decreased mainly due to the impact of higher rainfall and lower equipment productivity as mining focused on the fresh material zones. * Tonnes milled decreased due to the planned higher proportion of fresh ore in the blend.  * Processed grades decreased as a result of higher tonnage from the lower grade South pit and the use of low grade stockpiles to supplement the plant feed. * Recovery rates remained flat. * The AISC remained flat as lower sustaining capital spend offset higher unit mining, processing and G&A costs and increased royalties. * Mining unit costs increased from $2.66 to $2.76 per tonne mined due to mining more fresh material at a deeper elevation in the North and South pits. * Processing unit costs increased from $7.10 to $8.88 per tonne mainly due to lower tonnes milled and a greater  proportion of fresh ore in the blend.   * Sustaining capital costs decreased from $5.4 million to $1.4 million primarily due to the lower capitalized waste. * Non-sustaining capital remained low, marginally increasing from $0.1 million to $0.3 million.H1 2020 vs H1 2019 Insights * As guided, production decreased due to lower grades which were slightly offset by higher plant throughput. * AISC increased as a result of lower ounces sold and higher royalties, unit mining costs and processing costs, which were offset by lower sustaining capital and G&A unit costs.Table 10: Agbaou Quarterly Performance IndicatorsFor The Quarter Ended Q2-2020 Q1-2020 Q2-2019 Tonnes ore mined, kt 659 757 564 Strip ratio (incl. waste cap) 6.97 7.50 10.60 Tonnes milled, kt 675 732 644 Grade, g/t 1.14 1.31 1.75 Recovery rate, % 94 94 94 PRODUCTION, KOZ 24 27 35 Cash cost/oz 801 668 665 AISC/OZ 955 951 788 Table 11: Agbaou Half Yearly Performance IndicatorsFor The Half Year Ended H1-2020 H1-2019 Tonnes ore mined, kt 1,416 1,015 Strip ratio (incl. waste cap) 7.25 11.58 Tonnes milled, kt 1,407 1,365 Grade, g/t 1.23 1.58 Recovery rate, % 94 94 PRODUCTION, KOZ 52 66 Cash cost/oz 731 592 AISC/OZ 953 786 H2 2020 Outlook * Agbaou is expected to achieve the bottom half of its full year 2020 production guidance range of 115,000—125,000 ounces and the middle of its AISC guidance range of $940—$990 per ounce. * Mining is expected to continue principally in the North and South pits with contributions from the West pit ceasing in the second half of the year. Throughput and recovery rates are expected to decrease slightly in the second half of the year as greater volumes of harder fresh ore are expected to be processed. The average grade milled is however expected to increase throughout the second half of the year. * Sustaining and non-sustaining capital spends for FY-2020 remain unchanged compared to the initial guidance, and are  expected to amount to approximately $17.0 million and $1.0 million, respectively. Exploration Activities * An exploration program of up to $2.0 million has been planned for 2020 with the aim of continuing to test targets located along extensions of known deposits and on parallel trends. * Minimal work was done in H1-2020 as the Côte d'Ivoire exploration efforts were concentrated on Ity and Fetekro.KARMA MINEQ2 2020 vs Q1 2020 Insights * Despite the COVID-19 pandemic, Karma continued to operate at near-normal levels under the Level 1 Response Environment, as describe in COVID-19 Section, with no material changes to its mine plan required. * Production decreased despite higher stacker throughput rates due to lower grades stacked, a slight decrease in recovery rate and increased gold in the circuit. * Total tonnes mined remained relatively flat. As guided, a higher proportion of ore mined was sourced from the lower grade GG1 pit. In addition, a waste stripping campaign commenced at the Kao North pit. * Ore tonnes stacked increased due to the benefit of the recently completed conveyor and stacking system upgrades. * The stacked grade decreased due to lower grade ore sourced from the GG1 pit. * Recovery rates decreased slightly as a portion of the ore stacked was transitional material. In addition, gold in circuit increased due to gold locked in the heap which is expected to be recovered in the upcoming quarters. * The AISC increased, albeit outperforming guidance, mainly due to increased sustaining capital spend, higher royalty rates, and increased unit processing cost which were partially offset by lower unit G&A costs. * Mining unit costs remained flat. * Processing unit costs increased from $6.14 to $6.56 per tonne due to higher use of cyanide and cement associated with the low grade GG1 materials stacked. * Sustaining capital costs increased from $0.6 million to $2.0 million due to increased capitalized waste at the Kao North pit. * Non-sustaining capital spend increased from $2.1 million to $3.8 million due to security upgrades and various process plant upgrades. * A mining contact was awarded to SFTP Mining BF S.A.R.L (“SFTP”), a local contractor, in late Q2-2020. As such, Karma successfully transitioned from owner mining to contract mining on June 8, 2020. As a part of the transition, the mining fleet at Karma and associated spare parts were sold to SFTP for $12.8 million.H1 2020 vs H1 2019 Insights * As guided, production increased due to the higher throughput rate and grade stacked. * AISC decreased as a result of higher ounces sold, lower unit processing and G&A costs and a lower strip ratio. Table 12: Karma Quarterly Performance IndicatorsFor The Quarter Ended Q2-2020 Q1-2020 Q2-2019 Tonnes ore mined, kt 1,288 1,229 1,057 Strip ratio (incl. waste cap) 2.73 3.03 4.35 Tonnes stacked, kt 1,238 1,114 1,047 Grade, g/t 0.81 1.02 0.86 Recovery rate, % 80 82 83 PRODUCTION, KOZ 20 28 21 Cash cost/oz 723 722 902 AISC/OZ 952 866 1,047 Table 13: Karma Half Yearly Performance IndicatorsFor The Half Year Ended H1-2020 H1-2019 Tonnes ore mined, kt 2,517 1,891 Strip ratio (incl. waste cap) 2.87 4.52 Tonnes milled, kt 2,352 2,142 Grade, g/t 0.91 0.77 Recovery rate, % 81 82 PRODUCTION, KOZ 48 43 Cash cost/oz 722 875 AISC/OZ 904 999 H2 2020 Outlook * Karma is expected to achieve the bottom end of its full year 2020 production guidance range of 100,000 - 110,000 ounces and the middle of its AISC guidance range of $980 - $1,050 per ounce. * Mining activity is expected to continue at the Kao North pit and GG1 throughout the remainder of the year. Processed grades are expected to increase in the latter portion of the year as production from GG1 increases. Tonnes stacked are expected to remain fairly stable outside of the rainy season. Recovery rates are expected to decline slightly throughout the year as the proportion of transitional ore increases, while gold-in-circuit is expected to be recovered. * Sustaining capital spend for FY-2020 is expected to amount to approximately $9.0 million (of which $2.7 million has been incurred in H1-2020), a decrease compared to the initial FY-2020 guidance of $13.0 million due to less mining maintenance required following the transfer to contract mining. * Non-sustaining capital spend for FY-2020 is expected to amount to approximately $9.0 million (of which all $5.9 million has been incurred in H1-2020), an increase compared to the initial FY-2020 guidance of $5.0 million due to process plant upgrades. Exploration Activities * An exploration program of up to $2.0 million has been planned for 2020 with the aim of in-fill drilling and testing extensions of known deposits.  * Minimal work has been done in H1-2020 as the Burkina Faso exploration efforts were focused on the numerous Houndé exploration targets. MANA MINEQ2 2020 vs Q1 2020 Insights * Following the outbreak of COVID-19 pandemic, a large portion of the underground mining team was placed in a 14-day quarantine as a preventive measure. Due to this, the underground operation was temporarily halted which resulted in a shortage of higher grade ore feed. In addition, the mill experienced downtime following a quarantine period once the roster change was made. As such, production during the quarter was slightly impacted. * Production decreased as a result of lower tonnes milled and a slightly lower recovery rate which were partially offset by higher processed grade. * Tonnes of ore mined from the open pit operations increased as mining focused on ore extraction, benefiting from the lower overall strip ratio. Open pit ore mined was sourced from both the Siou and Wona pits, while towards the end of the quarter stripping activities commenced in the northern part of Wona pit. * Tonnes of ore mined from the underground operation decreased due to a temporary halt of the underground mining activities as a result of the COVID-19 precautions. During the quarter, 1,636 meters of development were completed at Siou compared to 2,053 meters during Q1-2020. * Ore tonnes processed decreased as a result of a harder ore blend (additional ore sourced from Siou as less underground ore tonnes were extracted) and lower plant utilization due to quarantine periods following expatriate roster changes. * Recovery rates decreased slightly as the characteristics of the ore milled remained similar to Q1-2020. * AISC increased due to higher underground mining costs, higher processing unit costs and lower gold sales, partially offset by lower sustaining capital spend.    * Mining open pit unit costs decreased from $4.79 to $4.46 per tonne in part due to a lower fuel price. * Mining underground unit costs per tonne of ore increased from $60.26 to $69.31 as a result of the lower tonnes extracted. * Processing unit costs increased  from $18.19 to $21.42 per tonne due to lower tonnes milled. * Sustaining capital decreased from $16.9 million to $11.9 million due to less underground development in Q2-2020 and more waste stripping in the Wona North pit during Q1-2020. * Non-sustaining capital remained minimal.H1 2020 vs H1 2019 Insights * Production increased due to higher head grade and recovery rate which reflects the relative contribution of Siou underground and open pit (higher head grade and better recovery rate) than the ore from Wona pit. * AISC increased slightly due to a higher royalty cost related to the increase in the average realized selling price. Table 12: Mana Quarterly Performance Indicators For The Quarter Ended Q2-2020 Q1-2020 Q2-2019 OP tonnes ore mined, kt 390 211 479 OP strip ratio (incl. waste cap) 9.94 20.70 14.60 UG tonnes ore mined, kt 138 164 — Tonnes milled, kt 546 665 619 Grade, g/t 2.84 2.49 2.12 Recovery rate, % 93 94 88 PRODUCTION, KOZ 48 50 37 Cash cost/oz 857 645 805 AISC/OZ 1,251 1,051 1,152 Table 13: Mana Half Yearly Performance IndicatorsFor The Half Year Ended H1-2020 H1-2019 OP tonnes ore mined, kt 602 887 OP strip ratio (incl. waste cap) 13.72 15.80 UG tonnes ore mined, kt 302 — Tonnes milled, kt 1,211 1,259 Grade, g/t 2.65 2.20 Recovery rate, % 93 87 PRODUCTION, KOZ 97 78 Cash cost/oz 736 759 AISC/OZ 1,137 1,113 H2 2020 Outlook * Good progress has been made to swiftly integrate Mana within Endeavour’s West African operating model. A key difference between SEMAFO’s operating model and that of Endeavour is the reporting structure, where Endeavour’s mines benefit from the presence of technical experts and a logistics platform based locally at site rather than at the head office which allows for quick decision making and synergies. The integration planning process was launched with the SEMAFO team after the transaction announcement in March 2020 and implemented on transaction close. Several key personnel changes were made at Mana to accelerate the integration process into Endeavour’s operating model. * Mana is expected to achieve its full year guidance, as published by SEMAFO, and produce between 185,000 to 205,000 ounces in 2020 at an AISC of between $1,050 - $1,120 per ounce. * Open pit mining activity in H2-2020 is expected to focus solely on Wona once the Siou open pit mining activities are completed later this year, while underground mining activity is expected to increase. * AISC is expected to decrease in H2-2020 following higher contribution of the underground operation and sourcing more oxide ore from the Wona North pit which is expected to offset the slightly lower anticipated recovery rate due to change in ore blend. * Sustaining and non-sustaining capital spends for FY-2020 remain unchanged compared to SEMAFO’s published guidance, and are expected to amount to approximately $70.0 million and $2.0 million, respectively (of which $28.8 million and $0.3 million were incurred in H1-2020, respectively).BOUNGOU MINEQ2 2020 vs Q1 2020 Insights * Following the outbreak of COVID-19 pandemic, Boungou continued to process stockpiles with minimal impact. * Production decreased slightly as lower processed grades were partially offset by increased mill throughput. * No mining activity took place during the quarter. * Tonnes milled increased during the quarter as the plant processed stockpile over a three-month period compared to a two-month period in the first quarter. * As expected, the processed grade decreased due to the declining grade profile of the available ore stockpile. * Recovery rates remained flat as the characteristics of the ore milled remained similar to Q1-2020. * As expected, AISC increased due to the processing of lower grade stockpiles in the period. * Processing unit cost increased from $34.40 to $39.31 per tonne mainly due to higher rehandling costs. * Sustaining capital decreased from $0.5 million to $0.2 million. * Non-sustaining capital increased slightly from $0.6 million to $0.8 million in Q2-2020, mainly related to the air strip build.H1 2020 vs H1 2019 Insights * Production decreased from the comparative period in 2019 as a result of processing only stockpiles in H1-2020.Table 16: Boungou Quarterly Performance IndicatorsFor The Quarter Ended Q2-2020 Q1-2020 Q2-2019 Tonnes ore mined, kt — — — Strip ratio (incl. waste cap) — — — Tonnes milled, kt 270 200 200 Grade, g/t 3.69 5.29 7.19 Recovery rate, % 94 94 94 PRODUCTION, KOZ 31 29 63 Cash cost/oz 598 434 350 AISC/OZ 710 549 476 Table 17: Boungou Half Yearly Performance IndicatorsFor The Half Year Ended H1-2020 H1-2019 Tonnes ore mined, kt — 51 Strip ratio (incl. waste cap) — 18.50 Tonnes milled, kt 470 591 Grade, g/t 4.37 6.83 Recovery rate, % 94 96 PRODUCTION, KOZ 61 125 Cash cost/oz 521 343 AISC/OZ 635 505 H2 2020 Outlook * Good progress has been made to swiftly integrate Boungou within Endeavour’s West African operating model. A key difference between SEMAFO’s operating model and that of Endeavour is the reporting structure, where Endeavour’s mines benefit from the presence of technical experts and a logistics platform based locally on site rather than at the head office which allows for quick decision making and synergies. The integration planning process was launched with the SEMAFO team after the transaction announcement in March 2020 and implemented on transaction close. Several key personnel changes were made at Boungou, including the appointment of a West African General Manager, to accelerate the integration process into Endeavour’s operating model. * Boungou is expected to meet its full year guidance as published by SEMAFO and produce between 130,000 and 150,000 ounces in 2020 at an AISC of between $680 - $725 per ounce. * Boungou is expected to recommence mining activities in Q4-2020 once a new mining contract is awarded, the air strip is built and the security practice is fully integrated within Endeavour’s operating model. In the meantime, processed grades and recovery rates are expected to decrease as higher quality ore stockpiles are processed in priority.  * Sustaining and non-sustaining capital spends for FY-2020 remain unchanged compared to SEMAFO’s published guidance, and are expected to amount to approximately $10.0 million and $3.0 million, respectively (of which $0.7 million and $1.3 million were incurred in H1-2020, respectively).PROJECT UPDATE * While the main focus for 2020 is cash flow generation, Endeavour is continuing to build optionality within its portfolio by advancing studies and conducting exploration on both the Fetekro and Kalana projects.   * Studies are underway with the aim of publishing a Preliminary Economic Assessment (“PEA”) on Fetekro and a Preliminary Feasibility Study (“PFS”) on Kalana during H2-2020. * At Fetekro, an exploration program of up to $6.0 million had been budgeted for 2020, which has already been exceeded with approximately $8.0 million spent in H1-2020. The program mainly focused on the Lafigué deposit, in addition to initial drilling on the Iguela target. An updated Lafigué deposit resource estimate is planned to be published in Q3-2020.  * At Kalana, an exploration budget of up to $2.0 million has been planned for 2020 to follow-up on nearby targets, with the program expected to be conducted in H2-2020. * Once these studies on Fetekro and Kalana are published, Endeavour will be better positioned to decide which project to prioritize and advance to Feasibility stage.EXPLORATION ACTIVITIES * The H1-2020 Group exploration spend was $36.0 million, comprising of 234,866 meters drilled. Details by asset are provided in the mine sections above. * The main areas of focus in H1-2020 were Houndé and Ity near-mine exploration, aimed at extending their mine lives to beyond 10 years, and Fetekro with the aim adding optionality to Endeavour’s project pipeline. * H1-2020 greenfield exploration spend includes a 5,000-meter drilling campaign on the Tanda/Bondoukou property in Côte d’Ivoire which has yielded positive results.Table 18: Exploration Expenditures(in US$ million unless otherwise stated) Q2-2020 Q1-2020 H1-2020 Ity 6 6 12 Houndé 7 6 13 Fetekro 5 3 8 Agbaou 0 0 0 Karma 0 0 0 Kalana 0 0 0 Other greenfield 1 1 2 TOTAL 19 16 36 Amounts include expensed, sustaining, and non-sustaining exploration expenditures. Amounts may differ from MD&A due to roundingCASH FLOW BASED ON ALL-IN MARGIN APPROACHThe table below presents the cash flow for Endeavour for the three and six month periods ending June 30, based on the All-In Margin approach, with accompanying notes below.Table 19: Cash Flow Based on All-In Margin Approach    THREE MONTHS ENDED SIX MONTHS ENDED     June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 in US$ million unless otherwise specified.   GOLD PRODUCTION, koz   149 172 171 321 292 GOLD SOLD, koz (Note 1) 150 175 171 324 292 Gold Price, $/oz (Note 2) 1,689 1,546 1,285 1,612 1,271 REVENUE   253 270 219 523 371 Total cash costs   (101) (115) (108) (216) (188) Royalties (Note 3) (18) (17) (11) (35) (20) Corporate costs   (5) (5) (5) (10) (11) Sustaining mining capital spend (Note 4) (17) (19) (11) (36) (22) Sustaining exploration capital spend   0 0 0 0 0 ALL-IN SUSTAINING MARGIN (Note 5) 112 113 84 225 130 Less: Non-sustaining mining capital spend (Note 6) (22) (18) (17) (40) (29) Less: Non-sustaining exploration capital spend (Note 7) (17) (15) (21) (32) (33) ALL-IN MARGIN   73 80 46 153 68 Changes in working capital and long-term assets, $ (Note 8) (28) 9 2 (19) (29) Taxes paid (Note 9) (20) (9) (30) (29) (31) Interest paid, financing fees and lease repayments (Note 10) (16) (20) (21) (36) (33) Cash settlements on hedge programs and gold collar premiums (Note 11) (17) 0 (1) (17) (1) NET FREE CASH FLOW   (8) 59 (3) 52 (26) Growth project capital (Note 12) (2) (2) (20) (4) (86) Greenfield exploration expense   (2) (1) (2) (3) (6) M&A, restructuring and asset sales (Note 13) 9 (10) 0 (1) 0 Cash paid on settlement of share appreciation rights, DSUs and PSUs   0 0 0 0 (1) Foreign exchange (losses) /gains   1 (1) (4) 0 (5) Other (expenses) /income (Note 14) (4) 3 1 (1) (2) Proceeds (repayment) of long-term debt (Note 15) 0 120 20 120 80 CASH INFLOW (OUTFLOW) FOR THE PERIOD   (6) 167 (6) 162 (46) Certain line items in the table above are NON-GAAP measures. For more information and notes, please consult the Company’s MD&A.NOTES: 1. Gold sales decreased by 25Koz in Q2-2020 compared to Q1-2020 as a result of lower production at the Ity, Karma and Agbaou mines. Gold sales increased in H1-2020 compared to H1-2019 due to higher production from the Ity mine which was  commissioned in Q2-2019. 2. The realized gold price for H1-2020 was $1,612/oz compared to $1,271/oz in H1-2019. Both these amounts include the impact of the Karma stream, amounting to 10,000 ounces sold in H1-2020 and 10,938 in H1-2019, at 20% of spot prices. The realized gold price excluding the gold stream at Karma, would have been $1,653/oz for H1-2020 and $1,311/oz for H1-2019. 3. The royalty expense increased from $100/oz in Q1-2020 to $119/oz in Q2-2020. The H1-2020 royalty expense was $109/oz, up from $69/oz for H1-2019, due to both the higher realized gold price and an increase in the underlying royalty rate based on the applicable sliding scale (above a spot gold price of $1,300/oz, government royalty rates in Burkina Faso increase from 4.0% to 5.0%, and above a spot gold price of $1,600/oz rates increase from 4.0% to 5.0% in Côte d'Ivoire). 4. The sustaining capital expenditure for Q2-2020 decreased slightly over Q1-2020 mainly due to a decrease in spend at Agbaou. The sustaining capital expenditure for H1-2020 increased compared to the corresponding period of 2019 mainly due to the scheduled waste capitalization at Houndé and the commissioning of the Ity CIL project, as shown in the table below. Further details by asset are provided in the above mine sections.  Table 20: Sustaining Capital(All amounts in US$m) THREE MONTHS ENDED SIX MONTHS ENDED   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019     Agbaou 1 5 3 7 10   Ity CIL 2 1 0 3 0   Karma 2 1 1 3 2   Houndé 11 12 7 23 10   Total 17 19 11 36 22   1. The All-In Sustaining Margin for Q2-2020 remained flat over Q1-2020 as the higher realized gold price offset lower gold sales. The All-In Sustaining Margin for H1-2020 increased compared to the corresponding period of 2019 due to increased gold sales and increased realized gold price (described in Notes 1 and 2) which was partially offset by a higher cash costs, royalties and sustaining mining capital spend. 2. The non-sustaining capital spend increased in Q2-2020 compared to Q1-2020, due to increases at Houndé and Karma. The non-sustaining capital spend for H1-2020 increased compared to the corresponding period of 2019 mainly due to the TSF raise and waste capitalization at Ity, while spend decreased at Agbaou, Karma and Houndé, as shown in the table below. Further details by asset are provided in the above mine sections.Table 21: Non-Sustaining Capital(All amounts in US$m) THREE MONTHS ENDED SIX MONTHS ENDED   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019     Agbaou 0 0 3 0 5   Ity CIL 11 11 0 22 0   Karma 4 2 9 6 12   Houndé 6 2 3 8 9   Non-mining 1 3 3 4 3   Total 22 18 17 40 29   1. The non-sustaining exploration capital spend for H1-2020 continued to remain high, in line with Endeavour’s strategic objective of unlocking exploration value through its aggressive drilling campaign. The majority of the exploration work planned for 2020 was conducted in H1-2020, ahead of the rainy season, with approximately 85% of the original full year guidance already completed. 2. The tables below summarize the Q2-2020 and H1-2020 working capital movements.Table 22: Working Capital Movement ─ Q2-2020 compared to Q1-2020  THREE MONTHS  ENDED     June 30, 2020 March 31, 2020 Q2-2020 Comments Trade and other receivables  (11) (7) Increased mainly due to a $7 million increase in VAT receivables at Houndé and a $5 million short-term loan to the BCM Group. Trade and other payables (10) +3 Settlement of Accounts Payable in the normal course of business. Inventories (7) +11 Increase of $8 million of GIC at Karma and Agbaou which was slightly offset by a decrease in  inventory supplies. Prepaid expenses and other — —   Changes in long-term assets 0 +2   Total (28) +9   Table 23: Working Capital Movement ─ H1-2020 compared to H1-2019  SIX MONTHS ENDED     June 30, 2020 June 30, 2019 H1-2020 Comments Trade and other receivables  (18) (4) Increase is mainly due to the increase in VAT receivable at Houndé and an increase in the receivable from BCM. Trade and other payables (7) +9 Settlement of Accounts Payable in the normal course of business. Inventories +3 (21) Inflow mainly related to the decrease in stockpiles, GIC and consumables at Ity and Houndé offset by an increase in GIC at Karma. Prepaid expenses and other 0 (4)   Changes in long-term assets +2 (8) Increased due to a $4.5 million inflow from BCM related to the Tabakoto sale, which was offset by a reclassification from long-term to short-term inventory at Ity Total (19) (29)   1. Taxes paid increased by $11.6 million in Q2-2020 compared to Q1-2020. This was due to corporate income tax payments made at Agbaou and Ity of $11.9 million and $7.5 million respectively. Taxes paid in H1-2020 decreased slightly compared to the previous year, despite significantly higher revenues, mainly due to a decrease of taxes paid at Houndé (due to installment payments being made).Table 24: Tax Payments  THREE MONTHS ENDED SIX MONTHS ENDED   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (in US$ million) Agbaou 12 0 0 12 0 Karma 0 0 0 0 0 Ity 8 0 4 8 5 Houndé 1 6 25 7 25 Kalana 0 0 0 0 0 Exploration 0 2 0 2 0 Corporate 0 0 1 0 1 Total 20 9 30 29 31 1. The interest paid, financing fees and lease repayments decreased in Q2-2020 compared to Q1-2020 as the convertible bond coupon is payable during the first and third quarters. The amount for H1-2020 increased slightly compared to the corresponding period of H1-2019 mainly due to interest payment on equipment leases at Ity. 2. Cash settlements on hedge programs in H1-2020 includes a $5 million fee for the gold collar program and $20 million for its associated settlements, and an inflow of $7 million related to short-term forward sales in Q1-2020. The collar expired at the end of June 2020 with the final payment on the collar due to early Q3-2020. 3. Growth project spend decreased to  $2 million in Q2-2020 as the Ity CIL plant was completed in Q1-2019. The amount for H1-2020 of $4 million relates mainly to the Kalana project. 4. M&A, restructuring and asset sale activities in Q2-2020 include an inflow $10 million related to the sale of mining equipment, in addition to $2 million received for associated spares, to the newly appointed contactor miner at Karma and a $7 million outflow associated to advisory fees for the SEMAFO transaction. The $1 million outflow in H1-2020 also includes a $5 million payment for the increased Ity ownership (contingent consideration based on ounces discovered) and advisory M&A fees. 5. Other expenses in Q2-2020 were mainly comprised of  COVID-19 expenses relating to items such as donations.  6. $120 million was drawn on the RCF as a proactive measure in Q1-2020 to secure the company’s liquidity as part of its COVID-19 business continuity program.   NET CASHFLOW, NET DEBT AND LIQUIDITY SOURCES     * The table below summarizes operating, investing, and financing activities, main balance sheet items and the resulting impact on the company’s Net Debt position, with notes provide below.Table 25: Cash Flow and Net Debt Position for Endeavour    THREE MONTHS ENDED SIX MONTHS ENDED (in US$ million unless stated otherwise)   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net cash from (used in), as per cash flow statement:             Operating activities (Note 16) 57 126 62 183 85 Investing activities (Note 17) (48) (57) (69) (105) (178) Financing activities (Note 18) (16) 100 (1) 84 47 Effect of exchange rate changes on cash   1 (1) 1 0 0 INCREASE/(DECREASE) IN CASH   (6) 167 (6) 162 (46) Cash position at beginning of period   357 190 84 190 124 CASH POSITION AT END OF PERIOD (Note 19) 352 357 78 352 78 Equipment financing (Note 20) (64) (70) 98 (64) 98 Convertible senior bond (Note 21) (330) (330) (330) (330) (330) Drawn portion of revolving credit facility (Note 22) (430) (430) (310) (430) (310) NET DEBT POSITION (Note 23) 473 473 660 473 660 Net Debt / Adjusted EBITDA (LTM) ratio (Note 23) 1.00 1.06 2.75 1.00 2.75 Net Debt and Adjusted EBITDA are Non-GAAP measures. For a discussion regarding the company’s use of Non-GAAP Measures, please see "note regarding certain measures of performance" in the MD&A.Table 26: Pro Forma Net Debt Position(in US$ million) AS AT 30 JUNE, 2020 Endeavour SEMAFO Pro Forma Cash, $m 352 93 445 Cash from La Mancha equity investment, $m 0 0 100 Debt, $m 824 30 854 Net Debt, (Net Cash), $m 473 (64) 309 Net Debt / Adjusted EBITDA (LTM) ratio 1.00 n.a. 0.44 NOTES: 1. Net cash flow from operating activities for H1-2020 was $183 million, up $98 million compared to H1-2019. The main drivers were a $152 million increase in revenue, as a result of more gold sold (Ity commercial production only commenced in Q2-2019) at a higher realized gold price, a $5 million decrease in losses due to foreign exchange and a $3 million decrease in taxes paid which was partially offset by a $15 million increase in royalty costs and a $23 million increase in settlements related to the gold collar. In Q2-2020, there was a decrease in net cash flow from operating activities of $69 million compared to Q1-2020. This was mainly attributable to the negative non-cash working capital variance of $28 million compared to the positive $9 million variance in Q1-2020 (details in note 8 above), coupled with  a $17 million decrease in revenue as a result of 25koz fewer gold sold, a $17 million outflow related to gold collar fees and settlements, and an $12 million increase in taxes paid. 2. Net cash used in investing activities during H1-2020 was $105 million, down $73 million compared to H1-2019, mainly due Ity CIL construction being completed in Q1-2019. Net cash used in investing activities in Q2-2020 was down $9 million as Endeavour received $12 million of proceeds for the sale of its fleet at Karma and associated spares, as part of the shift to owner mining, whereas Q1-2020 included a $5 million payment for the increased Ity ownership (contingent consideration based on ounces discovered) 3. Net cash generated in financing activities in H1-2020 was $84 million, mainly related to the $120 million drawdown on the RCF in Q1-2020, which was offset by $17 million in interest payments and $19 million repayment of finance lease obligations. 4. The equipment finance lease obligations decreased in Q2-2020 due to scheduled lease payments. 5. At quarter-end, Endeavour’s liquidity remained strong with $352 million of cash on hand. Subsequent to quarter-end, Endeavour closed both the acquisition of SEMAFO and the associated $100 million investment from La Mancha. As such, as at June 30, 2020, its Pro Forma liquidity stood at $545 million. 6. In 2018, Endeavour issued a $330 million convertible note, maturing in February 2023. 7. In Q1-2020 as a precaution to ensure that Endeavour would have substantial liquidity and financial flexibility to operate under various stress-test scenarios relating to the COVD-19 pandemic, Endeavour drew down the entirety of its available revolving credit facility. Reimbursement of this facility has commenced and will continue during Q3-2020 and Q4-2020. 8. Net Debt for Endeavour amounted to $473 million at the end of H1-2020, a decrease of $187 million compared to the corresponding period in 2019. The Net Debt / Adjusted EBITDA ratio for Endeavour improved slightly over the quarter, decreasing from 1.06 times to 1.00 times mainly due to a slightly higher LTM adjusted EBITDA. Subsequent to quarter-end, Endeavour closed both the acquisition of SEMAFO and the associated $100 million investment from La Mancha. As such, as at June 30, 2020, its Pro Forma Net Debt stood at $309 million and its Pro Forma Net Debt / Adjusted EBITDA ratio stood at 0.44x. OPERATING CASH FLOW PER SHARE * Operating cash flow increased by $98 million in H1-2020 compared to H1-2019, amounting to $183 million or $1.66 per share in total. Further insights have been provided in Note 16 above. * Operating cash flow amounted to $57 million in Q2-2020 (or $0.52 per share), a decrease of $69 million compared to Q1-2020 with the largest factor related to the non-cash working capital variance of $37 million.Table 27: Operating Cash Flow Per Share(in US$ million unless stated otherwise) QUARTER ENDED YEAR ENDED   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019     CASH GENERATED FROM OPERATING ACTIVITIES 57 126 62 183 85   Divided by weighted average number of O/S shares, in millions 111 111 110 111 110   OPERATING CASH FLOW PER SHARE 0.52 1.14 0.57 1.66 0.78   Operating Cash Flow Per Share is a NON-GAAP measure. For a discussion regarding the company’s use of NON-GAAP Measures, please see "note regarding certain measures of performance" in the MD&A. * Operating cash flow before non-cash working capital increased by $99 million in H1-2020 compared to H1-2019, amounting to $205 million or $1.85 per share. * Operating cash flow before non-cash working capital for Q2-2020 amounted to $85 million (or $0.77 per share) in Q2-2020, down $34 million over Q1-2020, mainly due to lower ounces sold, an outflow of $17 million related to hedging programs and an $11 million increase in taxes paid which was partially offset by an $11 million decrease in operating expenses.Table 28: Operating Cash Flow Before Non-Cash Working Capital Per Share(in US$ million unless stated otherwise) QUARTER ENDED YEAR ENDED June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 CASH GENERATED FROM OPERATING ACTIVITIES 57 126 62 183 85 Add back changes in non-cash working capital  (28) 7 5 (21) (20) OPERATING CASH FLOWS BEFORE NON-CASH WORKING CAPITAL 85 119 57 205 105 Divided by weighted average number of O/S shares, in millions 111 111 110 111 110 OPERATING CASH FLOW PER SHARE  BEFORE NON-CASH WORKING CAPITAL 0.77 1.08 0.52 1.85 0.96 Operating Cash Flow Per Share is a Non-GAAP measure. For a discussion regarding the company’s use of Non-GAAP Measures, please see "note regarding certain measures of performance" in the MD&A.ADJUSTED NET EARNINGS PER SHARE * Adjusted Net Earnings amounted to $53 million in Q2-2020 (or $0.48 per share), an increase of $19 million compared to Q1-2020 due to the benefit of a strong gold price and lower depreciation. * Adjusted Net Earnings amounted to $86 million in H1-2020 (or $0.78 per share), an increase of $83 million compared to H1-2019 due to the benefit of higher production at a higher realized gold price. * Adjustments made in Q2-2020 and H1-2020 relate mainly to the loss on financial instruments, deferred income tax expense, share based compensation, and acquisition and restructuring costs.Table 29:  Net Earnings and Adjusted Net Earnings(in US$ million unless stated otherwise) QUARTER ENDED YEAR ENDED June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 TOTAL NET EARNINGS (23) 35 7 13 (5) Adjustments (see MD&A) 92 7 8 99 18 ADJUSTED NET EARNINGS 69 43 15 112 13 Less portion attributable to non-controlling interests 16 9 7 26 9 ATTRIBUTABLE TO SHAREHOLDERS 53 34 9 86 4 Divided by weighted average number of O/S shares 111 111 110 111 110 ADJUSTED NET EARNINGS PER SHARE (BASIC) 0.48 0.30 0.08 0.78 0.03 FROM CONTINUING OPERATIONS Adjusted Net Earnings is a Non-GAAP measure. For a discussion regarding the company’s use of Non-GAAP Measures, please see "Note Regarding Certain Measures of Performance" in the MD&A.2020 OUTLOOK: PRODUCTION AND AISC GUIDANCE MAINTAINED DESPITE COVID-19 * As presented in the tables 30, 31 and 32 below, Endeavour is maintaining its FY-2020 production and AISC guidance. The Company expects to mitigate the impact of the COVID-19 pandemic due to the higher grade profile expected in H2-2020. * Endeavour is also maintaining SEMAFO's production and AISC guidance on Mana and Boungou and therefore expects the full year Pro Forma Group production to amount to 995—1,095koz in 2020 at an AISC of $865—915/oz. The Group consolidated amounts will be based on production and AISC commencing July 1, 2020, for the SEMAFO acquired assets. * Pro Forma Group production is expected to be higher and AISC lower during the second half of the year, notably due to the mining of the higher-grade Kari Pump deposit at Houndé and the restart of mining activities at the Boungou mine. More details on the updated individual mine guidance and outlook have been provided in the above sections. * Endeavour expects stronger cash flow generation in the second half of the year due to higher production, lower non-sustaining spend, lower exploration spend, the benefit of higher gold prices and the expiry of its gold collar program (with a cap of $1,500/oz for half its production) at the end of June 2020.Table 30: Guidance Summary1  ENDEAVOUR SEMAFO PRO FORMA Production, Koz 680 — 740 315 — 355 995 — 1,095 AISC, $/oz 845 — 895 895 — 960 865 — 915 Table 31: Detailed Production Guidance1(All amounts in koz, on a 100% basis) H1-2020A 2020 FULL-YEAR GUIDANCE Agbaou 52 115 — 125 Ity 108 235 — 255 Karma 48 100 — 110 Houndé 113 230 — 250 Mana 97 185 — 205 Boungou 61 130 — 150 PRO FORMA PRODUCTION 479 995 — 1,095 Table 32: Detailed AISC Guidance1(All amounts in US$/oz) H1-2020A 2020 FULL-YEAR GUIDANCE Agbaou 953 940 — 990 Ity CIL 707 630 — 675 Karma 904 980 — 1,050 Houndé 1,020 865 — 895 Mana 1,137 1,050 — 1,120 Boungou 635 680 — 725 Corporate G&A 36   30   Sustaining exploration —   5   PRO FORMA AISC 942 865 — 915 1This is a non-GAAP measure. Refer to the non-GAAP measure section of the MD&A for Endeavour and refer to the non-IFRS measures note in this press release for SEMAFO. 2Endeavour believes that operating and financial figures for SEMAFO are representative of the period ended June 30, 2020 as the Transaction closed on July 1, 2020. Figures presented and disclosed relating to SEMAFO operations represent classifications and calculations performed using consistent historical SEMAFO methodologies. Potential variances to existing Endeavour classifications and calculation methodologies may result in adjustments affecting results. Potential differences may include, but not limited to, classification of corporate costs and operating expenses, classification of mining, processing, and site G&A costs, classification of capitalized waste as sustaining and non-sustaining, valuation of stockpiles and gold in circuit. Accounting treatments and classifications will be aligned with Endeavour methodologies and policies. Pro forma information has not been adjusted and is comprised of the simple weighted average of information provided for each of Endeavour and SEMAFO. * The royalty cost, incorporated into the AISC calculation for Endeavour, has been guided on a gold price of US$1,350/oz. A portion of the higher royalties due to the higher gold price is expected to be netted against lower expected fuel costs. * As detailed in the table below, the FY-2020 mine sustaining capital expenditure guidance for Endeavour's mines is expected to remain unchanged at $83 million as an increase at Ity is expected to be offset by a decrease at Karma. While the nominal amount for H2-2020 is higher than that of H1-2020, due to higher expected production, it is expected to remain similar on a per ounce basis. * Endeavour is also maintaining SEMAFO's sustaining capital expenditure guidance on Mana and Boungou, and therefore expects the FY-2020 Pro Forma Group amount to stand at $163 million. More details on individual mine capital expenditures have been provided in the above sections.Table 33: Mine Capital Sustaining Expenditure Guidance(All amounts in US$m) H2-2020 GUIDANCE H1-2020 ACTUAL 2020 FULL-YEAR GUIDANCE Agbaou 10 7 17 Ity 5 3 8 Karma 6 3 9 Houndé 26 23 49 ENDEAVOUR MINES 47 36 83 Mana 41 29 70 Boungou 9 1 10 PRO FORMA 98 65 163 * As detailed in the table below, the FY-2020 non-sustaining mine capital expenditure guidance for Endeavour's mines is expected to increase from $42 million (as per initial guidance) to $55 million. The increases are at Ity where the aim is to commence the infrastructure work for the Le Plaque high grade deposit which was originally planned for 2021, and at Karma due to the capital already incurred in H1-2020. The FY-2020 non-sustaining mine capital expenditure was mainly H1-2020 weighted, with only 35% of the remaining capital spend to be incurred in the second half of the year. * Endeavour is maintaining SEMAFO's non-sustaining capital expenditure guidance on Mana and Boungou, and therefore expects the FY-2020 Pro Forma Group amount to stand at $60 million. More details on individual mine capital expenditures have been provided in the above sections.Table 34: Mine Capital Non-Sustaining Expenditure Guidance(All amounts in US$m) H2-2020 GUIDANCE H1-2020 ACTUAL 2020 FULL-YEAR GUIDANCE Agbaou 1 0 1 Ity 13 22 35 Karma 3 6 9 Houndé 2 8 10 ENDEAVOUR 19 36 55 Mana 2 0 2 Boungou 2 1 3 PRO FORMA 23 37 60 * FY-2020 growth capital spend is expected to amount to approximately $12 million, a slight increase of $2 million from the initial FY-2020 guidance of $10 million, mainly due to studies in progress on Kalana and Fetekro. * Roughly 85% of Endeavour's FY-2020 exploration expenditure guidance amount was incurred in H1-2020 ahead of the rainy season. As shown in the table below, the Pro Forma FY-2020 exploration spend is expected to amount to $45-50 million, inclusive of the SEMAFO assets.Table 35: Exploration Guidance(All amounts in US$m) H2-2020 GUIDANCE H1-2020 ACTUAL FULL-YEAR 2020 GUIDANCE Endeavour assets 4 - 9 36 40 - 45 SEMAFO assets 5 n.a 5 PRO FORMA 9 - 14 36 45 - 50 CONFERENCE CALL AND LIVE WEBCASTManagement will host a conference call and webcast on Wednesday August 5, at 8:30am Toronto time (ET) to discuss the Company's financial results.The conference call and webcast are scheduled at: 5:30am in Vancouver 8:30am in Toronto and New York 1:30pm in London 8:30pm in Hong Kong and Perth The webcast can be accessed through the following link: https://edge.media-server.com/mmc/p/mx9zr7txAnalysts and investors are also invited to participate and ask questions using the dial-in numbers below: International: +44 (0) 203 0095709 North American toll-free: +18662801157 UK toll-free: 08006941461Confirmation Code: 4792808The conference call and webcast will be available for playback on Endeavour's website. Click here to add Webcast reminder to Outlook CalendarAccess the live and On-Demand version of the webcast from mobile devices running iOS and Android:QUALIFIED PERSONSClinton Bennett, Endeavour's VP Metallurgy and Met Improvement - 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 Martino De Ciccio VP – Strategy & Investor Relations +44 203 640 8665 mdeciccio@endeavourmining.com Brunswick Group LLP in London Carole Cable, Partner +44 7974 982 458 ccable@brunswickgroup.com Vincic Advisors in Toronto   John Vincic, Principal (647) 402 6375 john@vincicadvisors.com   ABOUT ENDEAVOUR MINING CORPORATIONEndeavour Mining is a multi-asset gold producer focused on West Africa, with two mines (Ity and Agbaou) in Côte d’Ivoire, four mines (Houndé, Mana, Karma and Boungou) in Burkina Faso, four potential development projects (Fetekro, Kalana, Bantou and Nabanga) and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d’Ivoire, Mali and Guinea.  As a leading gold producer, Endeavour Mining is committed to principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is listed on the Toronto Stock Exchange, under the symbol EDV.For more information, please visit www.endeavourmining.com.CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATIONThis news release 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. AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in sustaining margin, free cash flow, net free cash flow, free cash flow per share, net debt, and adjusted earnings are non-GAAP financial performance measures with no standard meaning under IFRS, further discussed in the section Non-GAAP Measures in the most recently filed Management Discussion and Analysis.SEMAFO NON-IFRS MEASURESSome of the indicators used by Endeavour in this press release represent non-IFRS financial measures. These measures are presented as they can provide useful information to assist investors with their evaluation of the SEMAFO's and the pro forma performance. Since the non-IFRS performance measures presented in the below sections do not have any standardized 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. The non-IFRS financial performance measures are defined below and reconciled to reported IFRS measures.SEMAFO reports total cash costs based on ounces sold. Endeavour believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may find that the total cash cost per ounce sold provided useful information to assist investors with their evaluation of SEMAFO’s performance and ability to generate cash flow from its operations.All-in sustaining cost represents the total cash cost plus sustainable capital expenditures and stripping costs presented per ounce sold. Endeavour believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors may find that the all-in sustaining cost per ounce sold better meets their needs by assessing SEMAFO’s operating performance and its ability to generate free cash flow. SEMAFO classified sustaining capital expenditures which are required to maintain existing operations and capitalized stripping.Corporate Office: 5 Young St, Kensington, London W8 5EH, UKAttachments * 200805 - EDV NR - Q2 2020 Results VF * 200805 - EDV Q2 Presentation vF

  • Endeavour Announces an Increase of 554,000 Ounces in M&I Resources at its Hounde Mine
    GlobeNewswire

    Endeavour Announces an Increase of 554,000 Ounces in M&I Resources at its Hounde Mine

    ENDEAVOUR ANNOUNCES AN INCREASE OF 554,000 OUNCES IN M&I RESOURCES AT ITS HOUNDÉ MINE  2.5Moz of Indicated resources discovered at the Kari Area within three years at <$15/oz discovery cost. HIGHLIGHTS:                                                       * Houndé M&I Resource increased by 554koz to 4.45Moz Au following further resource delineation at the Kari Area * Today’s resource increase includes extensions for the Kari West and Kari Center deposits plus maiden resources for the adjacent Kari Gap, Kari South, and Kari Pump NE deposits * The Kari Area now accounts for 57% of the Houndé M&I resource, with 2.5Moz of Indicated resources discovered over the past three years * The Kari Area hosts high grade deposits with ~84% of Indicated resources grading more than 2.0 g/t Au, amounting to 2.1Moz * Low discovery cost of less than $15 per Indicated resource ounce for the Kari Area * An exploitation license has recently been awarded for the Kari Area and mining commenced at the Kari Pump deposit * Maiden reserves for Kari West, along with an updated Houndé mine plan, are expected to be published in Q3-2020 followed by maiden reserves for Kari Center and Kari Gap in Q4-2020 * An additional 20,000 meter drill program is expected to start in H2-2020  Abidjan, July 22, 2020 – Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce that Measured and Indicated resources at its Houndé mine in Burkina Faso have increased by 554,000 ounces to 4.5 million ounces following further resource delineation at the Kari Area, as shown in Table 1 below.Sébastien de Montessus, CEO, commented: “We are very excited to announce this resource update as it continues to demonstrate the Houndé mine’s potential. Over 2.5Moz of Indicated resources have now been discovered in the Kari Area, ranking it as the largest resource in the Houndé mine complex. Our ability in moving the Kari Area from discovery to production in under three years underscores the success of aggressive exploration strategy and the value of our strong and established government partnerships in West Africa.Last year, the 1.0Moz Indicated resource delineated at Kari Pump led to a reserve conversion of over 700koz. We now look forward to quickly completing the work to convert the additional 1.5Moz of Indicated resources delineated for the other deposits. With 84% of the Kari Area resource grading above 2 g/t Au, we are confident we will achieve our goal of producing 250koz/year over a 10+ year mine life at Houndé by displacing lower grade material.”  Table 1: Houndé Mineral Resource Evolution, current as at December 31, 2019On a 100% basis. Resources shown are inclusive of Reserves. PREVIOUS RESOURCE   UPDATED RESOURCE Δ AU CONTENT Tonnage Grade Content   Tonnage Grade Content (Mt) (Au g/t) (Au koz) (Mt) (Au g/t) (Au koz) (Au koz) Measured Resource 1.7 1.75 96   1.7 1.75 96 +0 Indicated Resource  58.6 2.01 3,797   72.9 1.86 4,351 +554 M&I Resource 60.4 2.01 3,893   74.6 1.85 4,447 +554 Inferred Resource 6.9 2.07 456   7.9 1.90 481 +24 Mineral Resource and Reserve estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions standards for Mineral Resources and Reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. 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. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources are constrained by MII $1,500/oz Pit Shell and based on a cut-off of 0.5 g/t Au. The Houndé Mine Resource is current as at December 31, 2019 and includes Reserves but does not include 2020 mine depletion. For the notes relating to the Houndé Mine Resource Estimate, please consult the March 5, 2020 press release available on the Company’s website.  As shown in Table 2 below, the Kari Area now accounts for 57% of the Houndé M&I resource with 2.5 million ounces delineated over the past three years.  Table 2: Houndé Mineral Resource Estimate On a 100% basis. Resources shown inclusive of Reserves. MEASURED & INDICATED RESOURCE   INFERRED RESOURCE Tonnage Grade Content   Tonnage Grade Content (Mt) (Au g/t) (Au koz)   (Mt) (Au g/t) (Au koz) Kari Area deposits 45.0 1.76 2,542   5.1 1.46 239 Vindaloo deposits 26.8 1.92 1,654   2.6 2.63 217 Other (Bouere, Dohoun) 2.9 2.69 251   0.2 3.39 24 Total deposits 74.6 1.85 4,447   7.9 1.90 481 Patrick Bouisset, Executive Vice President Exploration and Growth, said: “We are very pleased with the additional resources delineated at the Kari Area for a number of reasons. Firstly, the very favorable mineralization characteristics. A large portion of the resources is high grade, specifically those at Kari West. A large portion is also oxide and transitional material, while the Vindaloo deposit being mined currently is mainly fresh ore. These deposits are also amenable to open pit mining with potential strip ratios significantly lower than that currently being seen at the Vindaloo deposit and more than half of those at the high grade Kari Pump deposit. Lastly, the attractive metallurgy provides for potential gold recovery rates above 90%. As we continue to drill in the Kari Area later this year and into 2021, we are confident that we will continue to delineate resources along the Kari Center trend, which remains open. In addition, we are keen to start drilling other high priority targets close to the Houndé mill after spending three years focusing mainly on the Kari Area.” ABOUT THE KARI AREA EXPLORATION PROGRAM As shown in Figure 1 below, the Kari Area includes a large area of anomalous drill intercepts covering an area 5km by 4km wide and which is host to numerous deposits located 7 to 10km northwest of the Houndé processing plant. Figure 1: Kari Area and Deposits Location Map The Kari Area has been the focus of extensive exploration since 2017, with over 400,000 meters drilled and six discoveries made: Kari Pump, Kari Center, Kari West, Kari Gap, Kari Pump NE and Kari South. The drilling activity is summarized in Table 3 below and it is estimated that approximately 20% of the anomaly remains to be drilled. Table 3: Kari Area Drilling History PROGRAM METERS DRILLED HOLES RESULTS Q3-2017 to Q4-2018 203,900 2,237 comprised of 1,431 AC, 716 RC and 90 DD  -  Kari Pump maiden Indicated resource Q4-2018 to Q4-2019 166,280 1,493 comprised of 886 AC, 538 RC and 69 DD * Extended Kari Pump mineralization * Delineated a maiden resource for Kari West and Kari Center H1-2020 44,445 370 comprised of 175 AC, 14 DD, 164 RC, and 17 RC/DD * Delineated Kari Center trend * Converted Kari West Inferred and Kari Centre Inferred resources into the Indicated category * Maiden resources for Kari Gap, Kari Pump NE, and Kari South Total 414,625 4,100  -  Discovery of 2.5Moz of Indicated resource  Further information regarding the 2017-2019 exploration results are available in the press releases published on November 13, 2017, May 24, 2018, November 15, 2018 and November 25, 2019, available on the Company’s website. As shown in Figure 2 below, 55% of H1-2020 drilling was concentrated on extending and delineating the Kari Center trend, with 15% directed towards delineating Kari Pump NE, while the remaining 30% was dedicated to Kari West infill drilling with the goal of converting Inferred resources into Indicated resource category and testing deeper extensions of the deposit. A total of 370 holes were drilled amounting to 44,445 meters comprised of 175 Air Core (“AC”) holes totaling 14,318 meters, 14 Diamond Drill (“DD”) holes totaling 2,916 meters, 164 Reverse Circulation (“RC”) holes totaling 23,427 meters, and 17 RC/DD holes totaling 3,784 meters. Exploration results were very good with over 80% of the holes completed during H1-2020, intersecting mineralization of at least two meter thickness (downhole) with grades of 0.5 g/t Au or above. In addition, 35 DD and RC/DD holes totaling 5,853 meters were drilled for geotechnical and metallurgical testing purposes on Kari West, Kari Centre and Kari Gap. There was an additional 62,267 meters of grade control drilling completed at Kari Pump to prepare for H2-2020 production and 157 RC holes totaling 11,717 meters were drilled for sterilization of the Kari Pump waste dump and ROM pad areas.Figure 2: H1-2020 Drilling Activity in the Kari Area Selected intercepts from the H1-2020 drill program in the Kari Center structural trend include: ›  Kari Center (true width uncapped) ›  Kari Gap (downhole thickness uncapped)   ›  Kari South (downhole thickness uncapped)   ­  KC20-040: 3.0m at 7.77 g/t Au, including 1.0m at 16.30 g/t Au   ­  KC20-003: 18.7m at 1.55 g/t Au, including 2.90m at 5.15 g/t Au   ­  KS20-019: 8.0m at 2.54 g/t Au, including 1.0m at 3.82 g/t Au   ­  KC20-045: 11.0m at 2.46 g/t Au, including 3.0m at 5.42 g/t from   ­  KC20-004: 4.9m at 4.12 g/t Au, including 1.0m at 11.55 g/t Au   ­  KS20-047: 33.9m at 2.03 g/t Au, including 2.0m at 12.02 g/t Au   ­  KC20-052: 9.9m at 4.20 g/t Au, including 1.0m at 34.60 g/t Au   ­  KC20-005: 6.9m at 3.80 g/t Au, including 2.0m at 9.42 g/t Au   ­  KS20-050: 13.9m at 2.87 g/t Au, including 2.0m at 13.85 g/t Au   ­  KC20-055: 13.9m at 2.10 g/t Au, including 2.0m at 5.26 g/t Au   ­  KC20-006: 5.9m at 5.21 g/t Au, including 2.9m at 8.47 g/t Au   ­  KS20-065: 11.0m at 2.49 g/t Au, including 3.0m at 4.74 g/t Au   ­  KC20-056: 12.9m at 3.09 g/t Au, including 4.0m at 7.75 g/t Au   ­  KC20-008: 4.9m at 10.0 g/t Au, including 2.9m at 16.23 g/t Au   ­  KS20-067: 6.0m at 4.61 g/t Au, including 1.0m at 3.62 g/t Au   ­  KC20-080: 4.0m at 5.77 g/t Au, including 1.0m at 19.80 g/t Au   ­  KC20-010: 3.9m at 6.23 g/t Au, including 2.0m at 9.04 g/t Au   ­  KS20-070: 30.9m at 2.73 g/t Au, including 1.0m at 4.34 g/t Au   ­  KC20-081: 2.0m at 53.21 g/t Au, including 1.0m at 106.00 g/t Au   ­  KC20-030: 3.9m at 6.22 g/t Au, including 2.0m at 11.53 g/t Au   ­  KS20-114: 5.0m at 4.31 g/t Au, including 1.0m at 15.20 g/t Au   ­  KC20-092: 12.9m at 2.01 g/t Au, including 1.0m at 6.67 g/t Au, and including 2.0m at 4.18 g/t Au   ­  KC20-033: 20m at 1.43 g/t Au, including 0.8m at 3.02 g/t Au   ­  KS20-114: 4.0m at 7.07 g/t Au, including 1.0m at 23.5 g/t Au   ­  KC20-093: 7.9m at 3.30 g/t Au, including 1.0m at 9.19 g/t Au, and including 2.0m at 4.64 g/t Au   ­  KC20-110: 3.9m at 6.08 g/t Au, including 2.0m at 10.36 g/t Au   ­  KS20-125: 9.0m at 13.78 g/t Au, including 3.0m at 36.15 g/t Au, and including 1.0m at 5.43 g/t Au, and including 1.0m at 5.24 g/t Au   ABOUT THE KARI AREA RESOURCEToday’s resource increase includes extensions for the Kari West and Kari Center deposits and maiden resources for the nearby Kari Gap, Kari South, and Kari Pump NE deposits, as shown in Table 4 below. Table 4: Kari Area Mineral Resource Estimate  PREVIOUS KARI AREA   UPDATED KARI AREA Δ AU CONTENT On a 100% basis. Resources shown inclusive of Reserves. Tonnage Grade Content   Tonnage Grade Content (Mt) (Au g/t) (Au koz)   (Mt) (Au g/t) (Au koz) koz % INDICATED RESOURCE             Kari West 15.7 1.71 861   20.4 1.53 1,005 +144 +17% Kari Center 3.7 1.18 140   6.6 1.26 269 +129 +92% Kari Gap 0.0 0.00 0   3.9 1.41 176 +176 n.a. Kari Pump NE 0.0 0.00 0   0.3 1.98 21 +21 n.a. Kari South 0.0 0.00 0   2.1 1.09 75 +75 n.a. Kari Pump 11.3 2.71 987   11.6 2.66 996 +9 +1% Total Kari Area 30.7 2.02 1,988   45.0 1.76 2,542 +554 +28% INFERRED RESOURCE             Kari West 3.4 1.65 179   2.5 1.41 114 (65) (36%) Kari Center 0.4 1.21 16   0.5 1.68 25 +9 +56% Kari Gap 0.0 0.00 0   0.1 1.76 8 +8 n.a. Kari Pump NE 0.0 0.00 0   0.0 1.81 3 +3 n.a. Kari South 0.0 0.00 0   1.7 1.30 69 +69 n.a. Kari Pump 0.3 2.21 20   0.3 2.16 20 0 0% Total Kari Area 4.1 1.64 215   5.1 1.46 239 +24 +11% No Measured Resources have been estimated. Mineral Reserve and Resource estimates follow 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 National Instrument 43-101. 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. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII $1,500/oz Pit Shell and based on a cut-off of 0.5 g/t Au. Updated Resources are as at June 30, 2020.Due to the intensive infill drill program conducted in H1-2020, 88% of the total resource for Kari West, Kari Center, Kari Gap, Kari South and Kari Pump NE has been classified in the Indicated category, with the potential to convert additional resources through upcoming drilling. The mineralized lenses have favorable mining characteristics as they are amenable to open pit mining with mineralization starting at surface. The deposits added in the Kari Area are expected to have low strip ratios, with the Indicated resource pit shell strip ratio amounting to 6.1, 7.1, 6.4 and 6.6 for Kari West, Kari Center, Kari Gap and Kari South, respectively. In addition, today’s announcement brings significant oxide and transitional material additions, representing approximately 30%, 66%, 74%, 73% and 100% of the Kari West, Kari Center, Kari Gap, Kari South and Kari Pump NE Indicated resources, respectively. As shown in Table 5 below, the Kari Area hosts high grade deposits, with approximately 84% of Indicated resources grading above 2.0 g/t Au, amounting to 2.1Moz, at various cut-off grades.Table 5: Kari Area Indicated Resource at an Average Grade of > 2 g/t Au at Variable Cut-off Grades  CUT-OFF GRADE TONNAGE AVERAGE GRADE GOLD CONTENT WITH AVERAGE GRADE >2 g/t Based on various stated cut-offs TOTAL GOLD CONTENT   Based on 0.5 g/t cut-off PORTION OF TOTAL RESOURCE >2g/t   (Au g/t) (Mt) (Au g/t) (Au koz) (Au koz) % Kari West 1.10 12.3 2.0 792 1,005 79% Kari Center 1.20 2.5 2.0 159 269 59% Kari Gap 1.00 2.1 2.0 133 176 76% Kari Pump NE 0.70 0.3 2.0 21 21 100% Kari South 1.35 0.5 2.0 30 75 40% Kari Pump 0.00 11.6 2.66 996 996 100% Total Kari Area   29.3 2.26 2,131 2,542 84% Further details by deposit are provided in Appendix A of this press release. No Measured Resources have been estimated. Mineral Reserve and Resource estimates follow 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 National Instrument 43-101. 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. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII $1,500/oz Pit Shell and based on stated cut-offs. Updated Resources are as at June 30, 2020.A sensitivity analysis performed at various gold prices demonstrates the robustness of the Kari Area resource estimate, due to their shallow nature and advantageous mineralization characteristics, as shown in Tables 6 and 7 below. Table 6: Kari Area June 2020 Indicated Resource Sensitivity  BASED ON GOLD PRICE   BASED ON GOLD PRICE   BASED ON GOLD PRICE   OF $1,700/oz   OF $1,500/oz   OF $1,300/oz On a 100% basis. Resources shown inclusive of Reserves. Tonnage Grade Content   Tonnage Grade Content   Tonnage Grade Content (Mt) (Au g/t) (Au koz)   (Mt) (Au g/t) (Au koz)   (Mt) (Au g/t) (Au koz) INDICATED RESOURCE                  Kari West 21.1 1.52 1,029   20.4 1.53 1,005   19.2 1.54 951 Kari Center 7.5 1.22 296   6.6 1.26 269   6.1 1.26 247 Kari Gap 4.4 1.37 192   3.9 1.41 176   3.7 1.42 167 Kari Pump NE 0.4 1.95 22   0.3 1.98 21   0.3 2.00 19 Kari South 2.3 1.08 81   2.1 1.09 75   1.9 1.12 68 Kari Pump 12.0 2.61 1,006   11.6 2.66 996   9.7 2.94 914 Total Kari Area 47.7 1.71 2,626   45.0 1.76 2,542   40.9 1.80 2,366 No Measured Resources have been estimated. Mineral Reserve and Resource estimates follow 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 National Instrument 43-101. 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. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII $1,500/oz Pit Shell and for sensitivity purpose by MII $1,300/oz and $1,700/oz pit shells and based on a cut-off of 0.5 g/t Au. Updated Resources are as at June 30, 2020.Table 7: Kari Area June 2020 Inferred Resource Sensitivity  BASED ON GOLD PRICE   BASED ON GOLD PRICE   BASED ON GOLD PRICE   OF $1,700/oz   OF $1,500/oz   OF $1,300/oz On a 100% basis. Resources shown inclusive of Reserves Tonnage Grade Content   Tonnage Grade Content   Tonnage Grade Content (Mt) (Au g/t) (Au koz)   (Mt) (Au g/t) (Au koz)   (Mt) (Au g/t) (Au koz) INFERRED RESOURCE                  Kari West 2.9 1.38 129   2.5 1.41 114   1.9 1.48 89 Kari Center 0.6 1.52 30   0.5 1.68 25   0.4 1.80 21 Kari Gap 0.2 1.67 9   0.1 1.76 8   0.1 1.94 6 Kari Pump NE 0.1 1.73 3   0.0 1.81 3   0.0 1.82 2 Kari South 2.0 1.22 80   1.7 1.30 69   1.2 1.39 52 Kari Pump 0.3 2.11 21   0.3 2.16 20   0.2  2.36 17 Total Kari Area 6.1 1.39 272   5.1 1.46 239   3.8 1.54 187 Mineral Reserve and Resource estimates follow 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 National Instrument 43-101. 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. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII $1,500/oz Pit Shell and for sensitivity purpose by MII $1,300/oz and $1,700/oz pit shells and based on a cut-off of 0.5 g/t Au. Updated Resources are as at June 30, 2020.ABOUT KARI WESTIn 2019, intensive RC drilling defined the Kari West target as a broad mineralized area extending over 1,000 meters in strike length at a width of 500 meters and delineated a maiden Indicated resource (published on November 25, 2019). As shown in Figure 3 below, the additional 69 holes, totaling 10,045 meters drilled in H1-2020, allowed for the conversion of most of the 2019 Inferred resource into Indicated status. As a result, the Indicated resource for Kari West increased from 861koz to over 1Moz of gold. Figure 3: 2020 Drilling activity over Kari WestDrilling also demonstrated that the deposit remains open at depth, as shown in Figure 4 below.Figure 4: Section 4960 at Kari WestAt Kari West, the weathered bedrock and saprolite thickness varies between 25 meters and 75 meters with thicker zones noted to the south. Laterite up to 20 meters thick covers most of the area. The Kari West deposit is located in the hanging wall of a N240 trending and steep northwest-dipping lithological contact zone between dominantly meta-volcanic units (hanging wall) and a dominant metasedimentary unit (footwall). The deposit was formed under purely brittle conditions. ABOUT KARI CENTER STRUCTURAL TREND AND DEPOSITSMineralization was first intercepted at Kari Center during initial AC reconnaissance drilling in 2017. Follow up RC and DD drill programs in 2018 confirmed mineralized trends and significantly extended the continuity towards the southwest. The Kari Area 2019 drilling campaign mostly concentrated on the larger Kari West deposit, but reconnaissance drilling along 200° azimuth delineated two main areas of mineralization on the broad Kari Center trend, each with their own characteristic of trends and dips. The whole Kari Center trend extends over a 3.5km stretch and was the subsequent focus of the H1-2020 drilling campaign with 175 holes totaling 23,634 meters.  This campaign was very successful, as shown in Figure 5 below, and allowed to confirm mineralization for the extension of Kari Center, the discovery of Kari Gap (which is near but separate from Kari Center), and the better definition of Kari South. The latter appears to be made of two mineralized trends. All three zones have characteristic trends and dips, which confirm the 3.5km concentration of mineralization hosted along a north-northeast trending shear corridor.Figure 5: H1-2020 Drilling on Kari Center TrendABOUT KARI CENTERAt Kari Center, the main mineralization trends northeast and dips moderately steeply towards the northwest. The zone now covers an area approximately 1,000 meters along strike at a width of approximately 500 meters and is open at depth, in the direction of Kari Pump and Kari Gap. Resource conversion drilling confirmed the geologic model and the continuity of two mineralized zones, both characterized by strong lithological and structural controls. The main mineralized corridor follows a 100 meter wide sericite-albite alteration corridor that has developed at the contact between a mafic volcanic unit to the northwest and a volcano-sedimentary unit (graywacke, locally black shales) to the southeast. It is associated with quartz veining and bleaching of the surrounding lithologies, along with fine disseminated pyrite and no arsenopyrite observed to date. The mineralization is diffuse, locally high grade (>2 g/t Au) but mostly lower grade with large volumes of oxidized and argilized ore in the main part of the deposit. A second brittle mineralized corridor has developed to the southeast, parallel to the alteration corridor, in sedimentary units with no sericite-albite alteration expressed. Gold grades are structurally controlled, locally higher grade (> 5g/t Au) but on narrower tension gashe quartz vein type intercepts. Significantly, recent results indicate that the thinner higher grade mineralization is more consistent than previously thought. To date, neither visible gold nor arsenopyrite have been observed in drill cuttings. Alteration has developed mainly in volcanics due to porosity but also due to rock chemistry (feldspar), giving bleached white rock totally overprinting original texture where the alteration is most intense, very similar to that observed at Kari West. In more impermeable sediments and with unfavorable chemistry, alteration is only very rarely expressed, only very locally along narrow veins. ABOUT KARI GAPKari Gap is located 300 meters south-southwest of the southwestern tip of Kari Center and broadly follows the geological continuity of Kari Center. The deposit covers an area approximately 600 meters along strike at a width of approximately 300 meters and is today open at depth, towards Kari Centre, and towards Kari South.Kari Gap exhibits a similar stratigraphic sequence as Kari Center, with lithological units dipping moderately to the northwest and consisting of volcanics with intercalated volcano-sedimentary units which seem to be narrower than those occurring at Kari Center. Sericite-albite alteration is also expressed, hosted in the volcanics at the hanging wall of the contact with the sedimentary unit. The Kari Gap deposit is located at the intersection of northeast trending lithologic units and a north-northeast trending shear corridor. The mineralization has a strong lithological control as well as structural control, and in general, mirrors the lithological contact. The mineralization is associated with quartz veining and whitish sulphide-sericite-albite alteration and fine disseminated pyrite, like that observed at Kari Center. To date, neither visible gold nor arsenopyrite have been observed in drill cuttings.Kari Gap is composed of two main zones hosting mineralized lenses. The first is hosted around the sericite-albite altered volcanics and in general provides lower grade and large volume, while the second zone appears to be hosted in brittle structures within and at the footwall of the volcano-sedimentary unit, and provides higher grades and smaller volumes, as shown in Figure 6 below.Figure 6: Kari Gap Central SectionThe area between Kari Gap and Kari Centre still host significant potential which will be addressed during the Q4-2020 drilling campaign.ABOUT KARI SOUTHKari South represents the southern end of the mineralization system associated with the Kari Center shear corridor. It covers an area approximately 1,600 meters along strike at a width of 300 meters and remains widely open at depth and towards the south. Further potential exists to delineate additional resources as Kari South’s detailed structure and mineralization is still in the early interpretation phase. Kari South is underlain by volcanics with minor thin intercalated volcano-sedimentary lenses. The mineralization generally trends north-northeast with some higher grade clusters and mostly consists of volcanics with pervasive sericite-albite alteration and disseminated pyrite (same as Kari Center and Kari Gap). Like in Kari Center and Kari Gap, neither visible gold nor arsenopyrite have been observed in drill cuttings.ABOUT KARI PUMP NEStep out drilling targeting the possible extension of near-surface mineralization near Kari Pump, over a 700 meter span towards the northeast, allowed for the discovery of new mineralization which appears to be of a similar spatial orientation as the Kari Pump mineralized shear, as shown in Figure 7 below.Figure 7: Kari Pump NE and Selected H1-2020 InterceptsThe new mineralized interval is located approximately 40 meters beneath (footwall) the main Kari Pump mineralized shear and has similar thickness and grades in drill intercepts. As shown in Figure 8 below, it stretches out to the surface, approximately 200 meters to the northeast of the Kari Pump pit shell, and is open downdip to the west and down plunge to the northwest. Figure 8: Kari Pump NE Section 8280Although the Indicated ounces defined to date for Kari Pump NE are relatively modest (21koz), the occurrence of this new mineralization with Kari Pump characteristics below the main deposit at Kari Pump presents an additional exciting opportunity that will be pursued through additional drilling (DD and RC) during the next drilling campaign.NEXT STEPS * Kari West maiden reserves expected to be published in Q3-2020 * Kari Center and Kari Gap maiden reserves expected to be published in Q4-2020 following completion of metallurgical and geotechnical testing * A 20,000-meter drilling program is due to begin in Q4-2020, after the rainy season, and will continue in 2021, with the following key objectives: * Pursue exploration at the junction of Kari Center and Kari Gap * Pursue delineation and extend resource drilling on Kari South * Test the extension of the Kari Pump NE mineralization to the north/northwest * Explore the remaining targets in the Kari area * Pursue exploration of other neighboring targets in the area such as Sia and Vindaloo SouthKARI AREA RESOURCE MODELING The geological models, statistical analyses and resource estimates were prepared by Helen Oliver, FGS CGeol. Ms Oliver is Endeavour Mining's Group Resource Geologist and a Qualified Person as defined by NI 43-101. The Kari West and Kari Center Mineral Resource Estimates (MREs) have been updated and Maiden MREs have been developed for Kari Gap, Kari South and Kari Pump NE in Geovia Surpac software.The mineralization model for Kari West has been updated with the new drilling and improved continuity has been proven, resulting in a reduction in the number of mineralized lenses from 94 to 70, grouped into four domains (reduced from eight). An additional eight mineralized lenses have been identified at Kari Center resulting in 22 mineralized zones. Eighteen mineralized lenses have been modeled at Kari Gap, fifteen at Kari South and seven at Kari Pump NE.The gold assays from the drill holes were composited to one meter intervals within the mineralized wireframes and capped by lens or not at all depending on the high grade outliers within the individual lens. Two lenses at Kari West were capped at 25 g/t Au, one at 20 g/t Au, eight at 15 g/t Au and the remainder at 10 g/t Au, 5 g/t Au or not at all;  Kari Center lenses were capped at 15 g/t Au, 10 g/t Au or not at all; Kari Gap lenses were capped at 15 g/t Au, 10 g/t Au, 5 g/t Au or not at all; Kari South was capped predominately at 5 g/t Au with two lenses at 10 g/t Au; and Kari Pump NE was capped at 10 g/t Au, 5 g/t Au or not at all. Each mineralized lens was subjected to a spatial analysis of the gold distribution using variograms. Except for Kari South, the majority of the lenses showed a good continuity of gold grade along strike and down-dip and were used to establish ordinary kriging (“OK”) estimation parameters.Density parameters were determined by deposit and rock type. The laterite has a density ranging between 2.0 t/m3 and 2.1 t/m3, saprolite between 1.7 t/m3 and 1.9 t/m3, saprock between 2.2 t/m3 and 2.4 t/m3 and fresh rock between 2.7 t/m3 and 2.8 t/m3.  The gold grade was estimated by OK, constrained by the mineralized lenses in all the deposits with the exception of Kari South where inverse distance squared (ID2) was used due to poor variography. The grade was estimated in multiple passes to define the higher confidence areas and to extend the grade into areas of extrapolated mineralization. The grade estimation was validated by visually comparing drilling data and block grades, comparing inverse distance squared and OK estimated grades and by swath plots comparing block grades and composite grades.The mineralization was classified as Indicated and Inferred Mineral Resources depending on the sample spacing, number samples, confidence in mineralized zone continuity and geostatistical analysis. Indicated Mineral Resource classification was generally applied to blocks within the mineralized zone defined by a minimum of five samples from at least three drill holes within a 55 meter search at Kari West and 50 meter at Kari Center, Kari Gap, Kari South and Kari Pump NE. Inferred Mineral Resource classification was defined by a minimum of three samples within a 75 meter to 85 meter search at Kari West and 80 meter at Kari Center and 75 meter at Kari Gap, Kari South and Kari Pump NE. The Mineral Resources were constrained by $1,500 gold price pit shells (sensitivity performed for $1,300 and $1,700) and a 0.50 g/t Au cut-off grade. The Whittle pit shell optimizations assumed a base mining cost of $2.00/t and an adjusted ore mining and haulage cost of $3.60/t for oxide, $4.60/t for transition and $4.80/t for fresh rock, a mining recovery of 95%, mining dilution of 0%, a pit slope of 40o, average gold recovery of 90% (94%, 89% and 82% for oxide, transition and fresh rock, respectively for Kari Pump NE), a processing and G&A cost of $14.00/t for oxide, $15.00/t for transition and $18.00/t for fresh rock, and a gold selling cost (royalty, refining and selling) of $80/oz.ASSAYS AND QUALITY ASSURANCE / QUALITY CONTROL / DRILLING AND ASSAY PROCEDURES RC drill samples were collected at one meter intervals using dual tube, percussion hammer with a drop center bit. This same configuration was used on modified AC drills for regional drill programs. RC and AC samples were split at the drill site using one tier or three tier riffle splitters based on bulk sample weight collected at the cyclone. The target was a 2kg to 3kg sample for Au analysis in addition to an equivalent backup reference sample. Bulk weights, analysis sample weights and reference sample weights were all recorded. All measures were employed to avoid collecting wet samples; however, if wet samples were generated the entire sample was dried and later split using one tier and three tier splitting equipment. Representative samples for each interval were collected with a spear from the bulk sample bag and sieved into chip trays for geological logging and stored in a secure location. Drill core (PQ, HQ and NQ size) samples were selected by geologists and cut in half with a diamond blade saw at the project site. Half of the core was retained in the core trays at the site for reference purposes. The average sample interval was approximately one meter in length and 2kg to 3kg in weight. All aspects of sampling at the Kari Area project sites were monitored with a quality assurance and quality control (QA/QC) program, compliant with NI 43-101 Standards. To ensure there are adequate internal quality control samples in each analytical batch, a QA/QC insertion schema was generated by the Endeavour Exploration QA/QC management team for verification of the preparation and analysis at the laboratory. Coarse blanks, field duplicates and certified reference material (CRM) were inserted into the sample stream by the project chief geotechnicians. QA/QC sample insertion rates for reginal AC programs see one blank, one field duplicate and one CRM each 30 samples. One blank, one field duplicate and one CRM were inserted each 25 samples in RC delineation drilling. For DD core samples one blank and one CRM each 20 to 25 samples with the laboratory contracted to generate one pulp duplicate per each 30 samples in DD core sample sequences. All samples were transported by road to ALS Chemex in Ouagadougou, Burkina Faso in secured, labelled poly-woven bags. The laboratory implements its own internal QA/QC protocol, the results of which are monitored by the Exploration QA/QC Management Team.On arrival, the AC, RC and DD samples were weighed and crushed to -2mm (70% passing), and a two-kilogramme sample taken by a rotary split and pulverised to -75μm (85% passing). The two kilogramme pulverized samples were analyzed for gold by Fire Assay (50g charge) with an Atomic Absorption Spectrometer (AAS) finish.Due to COVID-19 restrictions, external consultants could not audit the Kari Area drill and QA-QC programs over the course of the drilling programs undertaken to date.Full drill results covering January to May 31, 2020 are available by clicking here.  QUALIFIED PERSONS The scientific and technical content of this news release has been reviewed, verified and compiled by Jonathan Lawrence, VP Exploration Burkina Faso for Endeavour Mining. Jonathan Lawrence (FAIG, MAusIMM) has more than 20 years of mineral exploration and mining experience and is a "Qualified Person" as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). The resource estimation was completed by Helen Oliver, FGS, CGeol, Group Resource Geologist for Endeavour Mining and a "Qualified Person" as defined by National Instrument 43-101.CONTACT INFORMATION Martino De Ciccio VP – Strategy & Investor Relations +44 203 640 8665 mdeciccio@endeavourmining.com Brunswick Group LLP in London Carole Cable, Partner +44 7974 982 458 ccable@brunswickgroup.com   Vincic Advisors in Toronto John Vincic, Principal (647) 402 6375 john@vincicadvisors.com ABOUT ENDEAVOUR MINING CORPORATIONEndeavour Mining is a multi-asset gold producer focused on West Africa, with two mines (Ity and Agbaou) in Côte d’Ivoire, four mines (Houndé, Mana, Karma and Boungou) in Burkina Faso, four potential development projects (Fetekro, Kalana, Bantou and Nabanga) and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d’Ivoire, Mali and Guinea.   As a leading gold producer, Endeavour Mining is committed to principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is listed on the Toronto Stock Exchange, under the symbol EDV.For more information, please visit www.endeavourmining.com.Corporate Office: 5 Young St, Kensington, London W8 5EH, UK    This news release 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, labor 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. AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in sustaining margin, free cash flow, net free cash flow, free cash flow per share, net debt, and adjusted earnings are non-GAAP financial performance measures with no standard meaning under IFRS, further discussed in the section Non-GAAP Measures in the most recently filed Management Discussion and Analysis.APPENDIX ATable 8: Kari Area June 2020 Indicated Mineral Resources defined by cut-off gradeCUT-OFF GRADE TONNAGE GRADE CONTENT (Mt) (Au g/t) (Au koz) KARI WEST      0.1 22.9 1.40 1,032 0.5 20.4 1.53 1,005 1.1 12.3 2.00  792 1.5 7.9 2.41  610 KARI CENTER      0.1 7.8 1.12 281 0.5 6.6 1.26 269 1.1 2.9 1.88 174 1.5 1.6 2.38 121 KARI GAP      0.1 4.7 1.23 186 0.5 3.9 1.41 176 1.1 1.8 2.13 126 1.5 1.2 2.56 101 KARI PUMP NE      0.1 0.3 1.98 22 0.5 0.3 1.98 21 1.1 0.3 2.18 20 1.5 0.2 2.53 17 KARI SOUTH      0.1 2.7 0.94 82 0.5 2.1 1.09 75 1.1 0.7 1.70 41 1.5 0.4 2.14 25 KARI PUMP      0.1 11.7 2.65 997 0.5 11.6 2.66 996 1.1 9.5 3.05 936 1.5 7.3 3.59 843 On a 100% basis. Resources shown inclusive of Reserves.No Measured Resources have been estimated. Mineral Reserve and Resource estimates follow 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 National Instrument 43-101. 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. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII $1,500/oz Pit Shell. Resources are as at June 30, 2020.  Attachment * 200722 - NR - Kari Resource Update - vF

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