Endeavour Reports Strong FY-2022 Results

Mar 09 2023 06:00 GMTSource: GlobeNewswire

ENDEAVOUR REPORTS STRONG FY-2022 RESULTS

Production of 1.4Moz at AISC of $928/oz • Operating cash flow of $1.0 billion • FY-2022 shareholder returns of $299m

OPERATIONAL AND FINANCIAL HIGHLIGHTS (for continuing operations)

Q4-2022 production of 355koz at an AISC of $954/oz; totalling 1,400koz at an AISC of $928/oz for FY-2022
10th consecutive year of achieving or beating production and AISC guidance
Adjusted Net Earnings of $65m, or $0.26/sh in Q4-2022; totalling $405m, or $1.63/sh for FY-2022
Net loss attributable to shareholders of $256m, or $1.04/sh, in Q4-2022 (including impairment of $360m); totalling $66m, or $0.27/sh, for FY-2022
Operating Cash Flow of $311m, or $1.26/sh, in Q4-2022; totalling $1,017m, or $4.10/sh, for FY-2022
Strong financial position at year-end with $121m of net cash, up $45m over the previous year

SHAREHOLDER RETURNS

FY-2022 dividend of $200m represents $50m more than the minimum committed dividend for the year
Share buybacks continued to supplement shareholder returns with $99m completed in FY-2022

ORGANIC GROWTH

Sabodala-Massawa expansion and Lafigué greenfield project construction are both on budget and on schedule for production in Q2 and Q3-2024, respectively
Continued strong exploration focus in 2023 with $70m Group budget; key focus area is the new Tanda-Iguela discovery
Group M&I resources remained flat year-on-year at 27.3Moz, while P&P reserves decreased by 1.0Moz to 16.8Moz as near mine exploration partially replaced depletion

London, 9 March 2023 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased to announce its FY-2022 operating and financial results, with highlights provided in Table 1 below.

Table 1: Highlights for Continuing Operations¹

All amounts in US$ million unless otherwise specified	THREE MONTHS ENDED			YEAR ENDED
	31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021	Δ FY-2022 vs. FY-2021
	31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021	Δ FY-2022 vs. FY-2021
OPERATING DATA
Gold Production, koz	355	343	378	1,400	1,436	(3)%
Gold sold, koz	352	338	370	1,393	1,478	(6)%
All-in Sustaining Cost², $/oz	954	960	894	928	864	+7%
Realised Gold Price, $/oz³	1,758	1,737	1,775	1,807	1,781	+1%
CASH FLOW
Operating Cash Flow before Changes in WC	281	195	318	1,109	1,133	(2)%
Operating Cash Flow before Changes in WC², $/sh	1.14	0.79	1.28	4.47	4.72	(5)%
Operating Cash Flow	311	154	341	1,017	1,132	(10)%
Operating Cash Flow², $/sh	1.26	0.62	1.37	4.10	4.72	(13)%
PROFITABILITY
EBITDA²	(110)	302	128	827	1,113	(26)%
Adj. EBITDA²	288	275	358	1,284	1,464	(12)%
Net (Loss)/Earnings Attributable to Shareholders	(256)	58	(87)	(66)	245	(127)%
Net (Loss)/Earnings, $/sh	(1.04)	0.23	(0.35)	(0.27)	1.02	(126)%
Adj. Net Earnings Attributable to Shareholders²	65	54	148	405	605	(33)%
Adj. Net Earnings², $/sh	0.26	0.22	0.59	1.63	2.52	(35)%
SHAREHOLDER RETURNS
Shareholder dividends paid	—	100	—	170	130	+31%
Share buybacks	24	37	44	99	138	(28)%
Total Shareholder Returns	24	137	44	269	268	—%
ORGANIC GROWTH
Growth capital spend²	(55)	(30)	(12)	(127)	(63)	+102%
FINANCIAL POSITION HIGHLIGHTS
Cash	951	833	906	951	906	+5%
Principal debt	(830)	(830)	(830)	(830)	(830)	—%
Net Cash²	121	3	76	121	76	+59%

¹From Continuing Operations excludes the Karma mine which was divested on 10 March 2022 and the Agbaou mine which was divested on 1 March 2021. ²This is a non-GAAP measure. Refer to the non-GAAP measure section in this press release. ³ Realised gold price are inclusive of the Sabodala-Massawa stream and the realised gains/losses from the Group’s revenue protection programme. Please refer to non-GAAP measures section for the calculation of the realised gold price for all periods presented.

Management will host a webcast and conference call today, 9 March 2023, at 8:30 am EST / 1:30 pm GMT. For instructions on how to participate, please refer to the webcast and conference call section at the end of the news release. The Q4 and FY-2022 MD&A and audited Financial Statements will be filed on the Company’s website, SEDAR and the National Storage Mechanism on or around 16 March 2023.

Sebastien de Montessus, President and CEO, commented: “2022 was another successful year for Endeavour during which we delivered on all our objectives and met guidance for a tenth consecutive year.

We produced 1.4Moz of gold, achieving the top end of our production guidance range and we are particularly pleased to have achieved our all-in sustaining cost guidance of below $930/oz as a result of our strong production performance and optimisation initiatives, despite the inflationary pressures impacting the industry. This strong operating performance generated over $1.0 billion in operating cash flow which has allowed us to deliver significant value to all stakeholders while continuing to fund our organic growth and improving our balance sheet strength with more than $120 million of net cash at year end.

As a trusted partner, we were pleased to contribute approximately $400 million to our host countries through tax, royalty and minority interest dividend payments, in addition to continuing our focus on local procurement. Through our commitment to reward shareholders, we returned approximately $300 million in the form of dividends and share buybacks to shareholders, equivalent to $212/oz of gold produced, which represents double our minimum target for the year.

We are also pleased to report that the Sabodala-Massawa expansion and the Lafigué greenfield build are progressing well with both projects on track for first production in 2024, with costs in line with expectations. Moreover, our exploration programme continues to provide a platform for future growth with the discovery of the promising Tanda-Iguela deposit in Cote d’Ivoire, which has the potential to become another cornerstone asset for the Company.

We have entered 2023 with considerable momentum and we look forward to continuing to deliver against our strategic objectives for the benefit of all our stakeholders.”

FY-2022 SCORECARD

The key targets set for FY-2022, along with the results achieved, are summarised in Table 2 below.

Table 2: FY-2022 Scorecard

	2022 TARGET	2022 ACHIEVEMENT
Production, koz	1,315 - 1,400	1,400
AISC, $/oz	880 - 930	928
Leverage	<0.5x Net Debt/adj. EBITDA LTM	$121m Net Cash
Total shareholder capital returns	$150m minimum dividend	$299m shareholder returns

SHAREHOLDER RETURNS PROGRAMME

Endeavour’s shareholder returns programme is composed of a minimum progressive dividend that may be supplemented with additional dividends and share buybacks, providing the prevailing gold price remains above $1,500/oz, and that Endeavour’s leverage remains below 0.5x Net Debt / adjusted EBITDA. The minimum dividend commitment was set at $150.0 million and $175.0 million for FY-2022 and FY-2023 respectively.
As previously announced, Endeavour’s FY-2022 dividend amounts to $200.0 million or approximately $0.81 per share, which represents $50.0 million or 33% more than the minimum dividend commitment for the year. The ex-dividend date for the H2-2022 interim dividend was 23 February 2023 and the record date was 24 February 2023. The dividend will be paid on or about 28 March 2023.
Shareholder returns were further supplemented with a total of $98.7 million or 4.6 million shares repurchased through the Company’s share buyback programme in FY-2022, of which $24.2 million or 1.2 million shares were repurchased in Q4-2022. Since the commencement of the buyback programme in April 2021, a total of $237.0 million, or 10.6 million shares have been repurchased and cancelled as at 31 December 2022.
As shown in Table 3 below, Endeavour returned $299.0 million to shareholders for FY-2022 through dividends and share buybacks, equivalent to $212 per ounce produced. Since the launch of the Company’s shareholder returns programme in early 2021, a cumulative $637 million (including the upcoming H2-2022 dividend) has been delivered to shareholders in the form of dividends and share buybacks.

Table 3: Actual Shareholder Returns vs. Minimum Commitment

	MINIMUM	ACTUAL SHAREHOLDER RETURNS			SUPPLEMENTAL
All amounts in US$ million	DIVIDEND COMMITMENT	DIVIDENDS	BUYBACKS COMPLETED	TOTAL RETURNS	SHAREHOLDER RETURNS²
FY-2020	60	60	0	60	0
FY-2021	125	140	138	278	+153
FY-2022¹	150	200	99	299	+149
TOTAL	335	400	237	637	+302

¹H2-2022 dividend declared on 23 January 2023, to be paid on or about 28 March 2023. ²Dividends in excess of Endeavour’s minimum dividend commitment plus share buybacks completed.

CASH FLOW SUMMARY

The following table presents the cash flow and cash position for Endeavour, with accompanying explanations below.

Table 4: Cash Flow and Cash Position

		THREE MONTHS ENDED			YEAR ENDED
All amounts in US$ million unless otherwise specified		31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021
Net cash from/(used in), as per cash flow statement:
Operating cash flows before changes in working capital from continuing operations		281	195	318	1,109	1,133
Changes in working capital		30	(41)	23	(92)	(1)
Cash generated from discontinued operations		—	—	12	5	24
Cash generated from operating activities	[1]	311	154	353	1,022	1,156
Cash used in investing activities	[2]	(172)	(111)	(132)	(521)	(512)
Cash used in financing activities	[3]	(54)	(256)	(68)	(385)	(421)
Effect of exchange rate changes on cash		34	(52)	(7)	(71)	(32)
INCREASE/(DECREASE) IN CASH		119	(264)	146	45	192
Cash position at beginning of period		833	1,097	760	906	715
CASH POSITION AT END OF PERIOD		951	833	906	951	906

NOTES:

Operating cash flows increased by $157.1 million from $153.7 million (or $0.62 per share) in Q3-2022 to $310.8 million (or $1.26 per share) in Q4-2022 largely due to higher gold sales at higher realised gold prices, a working capital inflow and a decrease in operating expenses and income taxes paid.

Operating cash flows decreased by $134.3 million from $1,156.3 million (or $4.82 per share) in FY-2021 to $1,022.0 million (or $4.12 per share) in FY-2022 largely due to a higher working capital outflow, and the impact of slightly lower gold sales at higher operating costs in FY-2022.

Notable variances are summarised below:

Working capital was an inflow of $30.0 million in Q4-2022, an increase of $71.4 million over Q3-2022, largely due to an increase in inflows from trade and other payables, partially offset by higher outflows from inventories. Trade and other payables were an inflow of $32.5 million in Q4-2022 and primarily related to the timing of supplier, social development fund and royalty payments at Ity, Houndé, Sabodala-Massawa and Mana. Prepaid expenses and other were an inflow of $5.0 million in Q4-2022 related primarily to decreased prepayments at Houndé. Trade and other receivables were an inflow of $8.8 million for Q4-2022, primarily related to inflows from receivables from contractors, partially offset by an increase in VAT receivables at Sabodala-Massawa. Inventories were an outflow of $16.3 million in Q4-2022 driven by an increase in stockpiles at Sabodala-Massawa and an increase in consumables across the Group, partially offset by stockpile drawdowns at Wahgnion, Ity, Boungou and Houndé.

Working capital was an outflow of $91.6 million in FY-2022, an increase of $91.1 million over FY-2021, mainly due to an increase in stockpiles at Sabodala-Massawa, Houndé and Ity, and an increase in VAT receivables at Sabodala-Massawa following the expiry of the VAT exemption status at Massawa in Q2-2022. Trade and other payables was an outflow of $10.6 million in FY-2022 compared to an outflow of $64.1 million in FY-2021 largely due to the prior period including increased payments related to the Teranga acquisition. Inventories were an outflow of $57.5 million in FY-2022 mainly due to an increase in stockpiles at the Houndé and Ity mines, and the stockpiling of refractory ore at the Sabodala-Massawa mine ahead of startup of the BIOX® Project in Q2-2024, as well as an increase in consumables across the Group to help mitigate any potential supply chain challenges. Prepaid expenses and other was an outflow of $9.9 million in FY-2022 mainly related to advanced security payments. Trade and other receivables were an outflow of $13.6 million in FY-2022 mainly due to an increase in VAT receivables at Sabodala-Massawa as well as increased advanced royalty payments at Houndé and Boungou.

Gold sales from continuing operations increased from 338koz in Q3-2022 to 352koz in Q4-2022 due to increased sales at the Ity, Sabodala-Massawa and Wahgnion mines as a result of increased production. The realised gold price from continuing operations for Q4-2022 was $1,758 per ounce compared to $1,737 per ounce for Q3-2022. Total cash cost per ounce decreased slightly from $839 per ounce in Q3-2022 to $829 per ounce in Q4-2022, primarily related to higher sales and lower operating expenses compared to the prior quarter.

Gold sales from continuing operations decreased from 1,478koz in FY-2021 to 1,393koz in FY-2022 due to lower sales at the Boungou, Mana, Wahgnion and Sabodala-Massawa mines, which was partially offset by higher sales at the Ity and Houndé mines. The realised gold price from continuing operations was $1,807 per ounce for FY-2022 compared to $1,781 per ounce for FY-2021. Total cash cost increased from $718 per ounce in FY-2021 to $803 per ounce in FY-2022 largely due to the higher fuel and explosive costs, when compared to the prior period, and the lower number of ounces sold.

Income taxes paid decreased by $66.6 million from $81.4 million in Q3-2022 to $14.8 million in Q4-2022, primarily due to the timing around payments of withholding taxes on dividends from mine sites, which are generally incurred in Q3-2022, and the timing of provisional tax payments.

Income taxes paid decreased by $36.5 million from $225.7 million in FY-2021 to $189.2 million in FY-2022, primarily due to lower tax payments in the year due to lower taxable income, in particular at the Boungou mine, which was partially offset by higher payments of withholding taxes on dividends from mine sites.

Cashflows used in investing activities increased by $61.4 million from $110.8 million in Q3-2022 to $172.2 million in Q4-2022 largely due to increased growth capital spend at the Sabodala-Massawa Expansion and Lafigué development projects.

Cashflows used in investing activities for FY-2022 were consistent with FY-2021.

Sustaining capital from continuing operations increased slightly from $28.8 million in Q3-2022 to $29.6 million in Q4-2022 primarily due to increased capitalised waste stripping activity at the Houndé and Sabodala-Massawa mines.

Sustaining capital from continuing operations decreased from $166.4 million in FY-2021 to $127.3 million in FY-2022, largely due to reduced capitalised waste stripping at the Boungou, Houndé, Ity and Sabodala-Massawa mines.

Non-sustaining capital from continuing operations decreased slightly from $80.1 million in Q3-2022 to $77.1 million in Q4-2022, largely due to reduced resettlement costs at the Sabodala-Massawa mine as that project neared completion and lower pre-stripping activities at the Houndé and Sabodala-Massawa mines, which was partially offset by increased spending on the Recyn project at Ity.

Non-sustaining capital from continuing operations increased from $209.9 million in FY-2021 to $251.7 million in FY-2022 due to the construction of the Recyanidation project at Ity, additional pre-stripping activity at Ity and Houndé mines as production exceeded the guided ranges and TSF raises at the Boungou, Wahgnion and Sabodala-Massawa mines.

Growth capital, inclusive of the non-cash movements in project working capital, increased from $29.7 million in Q3-2022 to $54.6 million in Q4-2022, as construction activities at the Lafigué project were launched, activity at the Sabodala-Massawa Expansion project accelerated and the Definitive Feasibility Studies (“DFS”) were finalised at Lafigué and continued at Kalana. In Q4-2022, the cash outflow related to growth projects amounted to $66.6 million.

Growth capital, inclusive of the non-cash movements in project working capital, was $126.5 million in FY-2022 due to the construction of the Sabodala-Massawa Expansion project and the Lafigué project, which both commenced during the year, as well as costs related to the DFS’s for the growth projects. In FY-2022, the cash outflow related to growth projects amounted to $111.5 million.

Cash flows used in financing activities decreased by $202.0 million from $255.5 million in Q3-2022 to $53.5 million in Q4-2022, following the payment of the $97.3 million interim shareholder dividend, $57.2 million paid to minority shareholders and repayment of $50.0 million under the Company’s revolving credit facility during Q3-2022. Financing activities for Q4-2022 primarily consisted of $24.2 million for share buybacks, $16.0 million for the settlement of employee share plan liabilities, $15.6 million payments of financing and other fees, and $5.0 million repayment of finance and lease obligations, which was partially offset by $7.3 million in proceeds received from the exercise of options and warrants.

Cash flows used in financing activities decreased by $36.3 million from $421.3 million in FY-2021 to $385.0 million in FY-2022, and included dividend payments of $166.6 million, share buybacks of $98.7 million, dividends to minority interests of $57.2 million and payment of financing fees of $46.6 million.

EARNINGS SUMMARY

The following table presents the earnings and adjusted earnings for Endeavour, with accompanying explanations below.

Table 5: Earnings from Continuing Operations

		THREE MONTHS ENDED			YEAR ENDED
All amounts in US$ million unless otherwise specified		31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021
Revenue	[6]	617	570	666	2,508	2,642
Operating expenses	[7]	(250)	(256)	(230)	(980)	(983)
Depreciation and depletion	[7]	(173)	(151)	(191)	(616)	(600)
Royalties	[8]	(39)	(35)	(42)	(153)	(162)
Earnings from mine operations		156	128	203	760	898
Corporate costs	[9]	(15)	(12)	(20)	(48)	(63)
Impairment of mining interests and goodwill	[10]	(360)	—	(248)	(360)	(248)
Share-based compensation		(18)	(4)	(7)	(33)	(33)
Other expense		(29)	(8)	(4)	(52)	(46)
Exploration costs		(7)	(12)	(5)	(34)	(24)
(Loss)/earnings from operations		(273)	91	(82)	233	486
(Loss)/gain on financial instruments	[11]	(10)	60	19	(22)	28
Finance costs		(16)	(19)	(25)	(66)	(66)
(Loss)/earnings before taxes		(299)	132	(88)	145	448
Current income tax expense	[12]	(57)	(77)	(38)	(273)	(195)
Deferred income tax recovery	[13]	89	12	34	98	52
Net comprehensive (loss)/earnings from continuing operations	[14]	(267)	67	(92)	(31)	305
Add-back adjustments	[15]	361	5	237	482	385
Adjusted net earnings from continuing operations		93	72	144	451	689
Portion attributable to non-controlling interests	[16]	29	18	(4)	47	84
Adjusted net earnings from continuing operations attributable to shareholders of the Company	[17]	64	54	148	405	605
Earnings per share from continuing operations		(1.04)	0.23	(0.35)	(0.27)	1.02
Adjusted net earnings per share from continuing operations		0.26	0.22	0.59	1.63	2.52

NOTES:

Revenue increased by $47.0 million from $570.0 million in Q3-2022 to $617.0 million in Q4-2022 mainly due to higher gold sales from the Sabodala-Massawa, Ity and Wahgnion mines and a higher realised gold price. Gold sales from continuing operations increased from 338koz in Q3-2022 to 352koz in Q4-2022. The realised gold price, including the realised gain on the gold forward contract and gold collars, increased from $1,686 per ounce in Q3-2022 to $1,751 per ounce in Q4-2022. When excluding the impact of the realised gains on the gold forward contracts and gold collars, the realised gold price increased from $1,679 per ounce in Q3-2022 to $1,742 per ounce in Q4-2022.
Revenue decreased by $134.0 million from $2,642.1 million in FY-2021 to $2,508.1 million in FY-2022 due to the lower gold sales compared to the prior period, which was partially offset by the higher realised gold price. Gold sales from continuing operations decreased from 1,478koz in FY-2021 to 1,393koz in FY-2022. The realised gold price, including the impact of the Group’s revenue protection programme, increased from $1,781 per ounce for FY-2021 to $1,807 per ounce in FY-2022.

Operating expenses were stable at $249.5 million in Q4-2022 compared to the prior period. Depreciation and depletion increased by $21.8 million from $151.2 million in Q3-2022 to $173.0 million in Q4-2022 mainly due to increases at the Sabodala-Massawa, Ity and Wahgnion mines, which was partially offset by decreases at the Houndé and Boungou mines. Increases at the Sabodala-Massawa mine were due to the commencement of mining at the Bambaraya deposit, while the increase at Ity was due to high production during the period and at Wahgnion due to the decrease in the reserve base.
Operating expenses of $979.5 million in FY-2022 were largely consistent with the prior period as increased operating costs at the Sabodala-Massawa and Wahgnion mines, in addition to higher fuel and consumable costs across the portfolio, were offset by the decrease in expenses related to the reversal of fair value adjustments to inventory that impacted FY-2021. Depreciation and depletion for FY-2022 increased by $16.2 million from $599.8 million in FY-2021 to $616.0 million in FY-2022 largely due to increases at the Houndé, Mana, Sabodala-Massawa and Wahgnion mines, which was partially offset by decreases at the Boungou and Ity mines. Increased depletion at the Sabodala-Massawa and Wahgnion mines is due to a full year of operations in FY-2022, following the acquisition of Teranga in February 2021. The increase at the Mana mine is due to a slight reduction in the depletable base this year, and the increase at Ity mine is due to the commencement of mining at new deposits. This was partially offset by decreases at the Boungou and Ity mines due to lower production and a higher depletable reserves base, respectively.

Royalties increased from $35.3 million in Q3-2022 to $38.5 million in Q4-2022 largely due to more gold ounces sold at a higher realised gold price in Q4-2022.
Royalties decreased from $162.3 million in FY-2021 to $152.9 million in FY-2022 due to lower gold sales from the Group which was partially offset by the higher realised gold price.

Corporate costs increased slightly from $12.4 million in Q3-2022 to $14.5 million in Q4-2022 primarily due to increased professional fees and seasonally higher employee costs.
Corporate costs decreased from $62.5 million in FY-2021 to $47.7 million in FY-2022 due to the non-recurring costs associated with the LSE listing in Q2-2021.

The Group recognised a non-cash impairment of $360.3 million in FY-2022 consisting of $163.3 million and $197.0 million in relation to the mining interest at the Boungou and Wahgnion mines, respectively. The impairments follow updates to the life of mine plans which reflect an updated estimate of the reserve and resources and estimated operating costs, with further details found in Note 19.
The loss/gain on financial instruments decreased from a gain of $60.1 million in Q3-2022 to a loss of $10.4 million in Q4-2022 largely due to the impact of unrealised losses on gold forwards and collars of $62.9 million, among other items, which were partially offset by foreign exchange gains of $43.9 million.
During Q4-2022, the loss on financial instruments consisted of an unrealised loss on gold forwards and collars of $62.9 million, an unrealised loss on the fair value of call rights of $6.3 million, an unrealised loss on other financial instruments of $1.8 million, and an unrealised loss on the change in the fair value of contingent considerations of $0.9 million. These items were partially offset by an unrealised foreign exchange gain of $43.9 million, an unrealised gain on foreign currency contracts of $11.1 million as detailed below, an unrealised gain on the revaluation of the conversion option on the convertible senior notes (the “Convertible Notes”) of $4.0 million and an unrealised gain on the fair value of receivables of $3.2 million. In addition, during Q4-2022, the Group realised a gain on gold collars and forwards of $5.7 million.
The loss on financial instruments in FY-2022 was $22.3 million compared to a $28.0 million gain in FY-2021. The loss in FY-2022 is due primarily to the impact of unrealised foreign exchange losses of $45.7 million as the Euro weakened against the USD, unrealised losses on gold forwards and collars of $23.8 million reflecting the higher gold price, an unrealised loss in the change of fair value of warrants of $3.3 million, an unrealised loss on the change in fair value of contingent consideration of $1.2 million, and an unrealised loss on the change in fair value of call rights of $0.3 million. In addition, during the year, the Group realised a loss on the early redemption of senior notes of $4.6 million and a realised loss on foreign exchange contracts of $0.4 million. These losses were partly offset by an unrealised gain on conversion options on the Convertible Notes of $30.3 million, a realised gain on gold collars and forward contracts settled during the year of $19.8 million an unrealised gain on foreign exchange contracts of $5.1 million, and a realised gain on the sale of financial assets of $4.5 million upon disposal of certain NSR’s by the Company during the year.
See the Revenue Protection Programme section for further details about the gold collar and forward sales contracts. In addition, the Group has entered into certain foreign exchange forward contracts to increase cost certainty for a portion of its upcoming growth capital expenditure at its Sabodala-Massawa Expansion and Lafigué growth projects. Foreign exchange forward contracts are across both the Euro and the Australian Dollar for a total notional quantum of approximately €148.4 million at a blended rate of 0.98 EUR:USD split over 2022, 2023 and 2024 at approximately 39%, 53% and 9% respectively and approximately AU$58.9 million at a blended rate of 0.69 AUD:USD split approximately 28%, 62% and 10% respectively over the same period.

Current income tax expense decreased by $20.1 million from $77.0 million in Q3-2022 to $56.9 million in Q4-2022 largely due to the withholding tax expense recognised on dividends declared during Q3-2022 as part of the cash upstreaming process. The Group increased the amount of cash offshore ahead of the Company settling its Convertible Notes at maturity through a combination of $330.0 million in cash for the principal amount and 835,254 shares which were delivered to settle the in-the-money option value.
Current income taxes increased by $78.2 million from $195.1 million in FY-2021 to $273.3 million in FY-2022, primarily due to higher taxes at Sabodala-Massawa following the cessation of the tax holiday at Massawa in 2022 and increased withholding tax expense associated with the upstreaming of cash as detailed above.

Deferred income tax recovery increased by $76.9 million from $11.9 million in Q3-2022 to $88.8 million in Q4-2022, due primarily to the reversal of deferred tax liabilities recognised on mining interests as a result of the impairment expense recognised for the Wahgnion and Boungou mines.
Deferred income tax recovery increased by $45.9 million from $51.8 million in FY-2021 to $97.7 million in FY-2022, which was primarily due to the reversal of deferred tax liabilities recognised on mining interests as a result of the impairment expense recognised for the Wahgnion and Boungou mines.

Net comprehensive earnings from continuing operations decreased by $334.5 million from $67.1 million in Q3-2022 to a loss from continuing operations of $267.4 million in Q4-2022 largely due to the impairment of $360.3 million and higher other expenses mainly related to higher provisions for claims, offset by the higher earnings from gold sales in the quarter.
For FY-2022, the Group recognised a net comprehensive loss from continuing operations of $31.0 million compared to net comprehensive earnings from continuing operations of $304.6 million in FY-2021, due primarily to an increase in the impairment expense of $112.6 million relative to the prior year, a decrease in earnings from mine operations of $137.8 million due to lower gold ounces sold and higher costs in the year, and an increase in the loss on financial instruments of $44.0 million due to foreign exchange losses in the year, primarily on cash held in non-US dollar currencies.

For Q4-2022, adjustments made to calculate adjusted net earnings from continuing operations include the impairment charge on mineral interests of $360.3 million as outlined in Note 10, other expenses of $29.4 million that are detailed in Note 14, the net unrealised loss on financial instruments of $16.1 million largely related to foreign exchange movements as the euro strengthened against the dollar through Q4-2022, and positive non-cash, tax and other adjustments of $45.1 million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances.
For FY-2022, adjustments made to calculated adjusted net earnings from continuing operations include an impairment charge on mineral interests of $360.3 million, other expenses of $51.9 million that were primarily related to expenses for the provisions for legal claims and the write-off of Group receivables, the net loss on financial instruments of $42.1 million largely related to remeasurement of foreign exchange, and negative non-cash, tax and other adjustments of $28.1 million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances.

Adjusted net earnings from continuing operations attributable to non-controlling interests increased to $28.8 million in Q4-2022 from $18.5 million in Q3-2022 due to higher earnings from mine operations during Q4-2022.
Adjusted net earnings from continuing operations attributable to non-controlling interests decreased to $46.7 million in FY-2022 from $84.2 million in FY-2021 due to lower earnings from operations compared to the prior period.

Adjusted net earnings attributable to shareholders for continuing operations increased by $11.0 million to $64.5 million (or $0.26 per share) in Q4-2022 compared to $53.5 million (or $0.22 per share) in Q3-2022 due largely to higher earnings from mining operations as a result of lower taxes and higher group production at a higher realised gold price, partially offset by higher depreciation.
In FY-2022, adjusted net earnings attributable to shareholders for continuing operations decreased to $404.7 million (or $1.63 per share) from $605.2 million (or $2.52 per share) in FY-2021 due to lower gold production, higher operating expenses and higher taxes, due in part to the higher withholding taxes paid during the year.

FINANCIAL POSITION AND LIQUIDITY SUMMARY

The following tables present the summarised statement of financial position and liquidity for Endeavour, with accompanying explanations below.

Table 6: Summarised Statement of Financial Position

All amounts in US$ million unless otherwise specified		As at 31 December 2022	As at 31 December 2021
ASSETS
Cash and cash equivalents		951.1	906.2
Other current assets	[18]	495.3	459.8
Total current assets		1,446.4	1,366.0
Mining interests	[19]	4,517.0	4,980.2
Other long term assets	[20]	451.3	424.7
TOTAL ASSETS		6,414.7	6,770.9
LIABILITIES
Other current liabilities	[21]	461.9	397.8
Current portion long-term debt	[22]	336.6	—
Income taxes payable	[23]	247.1	169.3
Total current liabilities		1,045.6	567.1
Long-term debt	[24]	488.1	841.9
Other long-term liabilities		219.1	303.9
Deferred income taxes		574.6	672.3
TOTAL LIABILITIES		2,327.4	2,385.2
TOTAL EQUITY		4,087.3	4,385.7
TOTAL EQUITY AND LIABILITIES		6,414.7	6,770.9

¹Net debt and Adjusted EBITDA are Non-GAAP measures. Refer to the non-GAAP measure section in this press release.

NOTES:

Other current assets as at 31 December 2022 consists of $320.7 million of inventories, $106.9 million of trade and other receivables, $56.5 million of prepaid expenses and other and $11.2 million of other financial assets.

Inventories increased by $9.4 million due primarily to an increase in consumables across all sites as a preventative measure for potential supply chain delays.
Trade and other receivables of $106.9 million was consistent with the prior year.
Prepaid expenses and other increased by $21.4 million due to an increase in pre-payments at the Mana and Boungou mines during the year.
Other financial assets of $11.2 million was consistent with the prior year.

Mining interests decreased by $463.2 million compared to the prior year, primarily due to the recognition of a $360.3 million impairment associated with the Boungou and Wahgnion mines.

At the Boungou mine, a non-cash impairment of $163.3 million was recognised as the recoverable value exceeded the carrying value of the mining interest following the evaluation of a revised life of mine plan, which reflects increased operating costs, the current estimated recoverable reserves and resources, including exploration potential, and higher waste stripping required over the life of mine.
At the Wahgnion mine, a non-cash impairment of $197.0 million was recognised as the recoverable value exceeded the carrying value of the mining interest following the evaluation of a revised life of mine plan, which reflects increased operating costs and the current estimated recoverable reserves and resources, including exploration potential.

Other long-term assets consist of $229.6 million of long-term stockpiles not expected to be processed in the next twelve months at the Houndé, Ity and Sabodala-Massawa mines, $134.4 million of goodwill which has been allocated to the Sabodala-Massawa and Mana mines, $40.0 million related to Allied Gold shares received as consideration upon the sale of Agbaou, $39.5 million of restricted cash relating to reclamation bonds, and an NSR of $6.5 million received as consideration upon the sale of the Karma mine.
Other current liabilities are made up of $354.6 million of trade and other payables, $89.1 million of other financial liabilities consisting of the contingent consideration which was paid in March 2023 and other share based cash settled liabilities, and $18.2 million of lease liabilities.
The current portion of long-term debt is made up of the $330.0 million 3.00% Convertible Senior Notes (“Convertible Notes”) and the associated conversion option that matured on 15 February 2023. To minimise dilution to equity holders, the Company settled the Convertible Notes at maturity through a combination of $330.0 million in cash for the principal amount and 835,254 shares (worth $20.0 million and equivalent to 0.3% of shares outstanding) were delivered to settle the in-the-money option value. The Convertible Notes were a low cost financing solution which had a 3.00% coupon and an implicit cost of capital of 4.11% over the life of the notes after taking into account the value of the in-the-money option.
Income taxes payable were $247.1 million, an increase of $77.8 million compared to the prior year due to increased income tax expense for 2022 at the Ity and Sabodala-Massawa mines. The increase in taxes payable at the Ity mine is due to taxable profits at the newly commissioned Floleu deposit, and at the Sabodala-Massawa mine following the expiry of the tax holiday at Massawa in 2022.
The non-current portion of long-term debt was $488.1 million for the outstanding $500.0 million corporate bond. Non-current long-term debt decreased by $353.8 million compared to the prior year due to the reclassification of the Convertible Notes as current at 31 December 2022. The Company has upsized its unsecured revolving credit facility (“RCF”), which was fully undrawn at year-end, from $500.0 million to $575.0 million to provide additional liquidity headroom during the Company's ongoing construction phase. The RCF has an interest rate between 2.40 - 3.40% plus Secured Overnight Financing Rate (“SOFR”), which varies on a sliding scale with the Company’s leverage, and is due in 2025.

Table 7: Summarised Financial Position and Leverage Ratio

		THREE MONTHS ENDED			YEAR ENDED
All amounts in US$ million unless otherwise specified		31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021
Cash and cash equivalents	[24]	951.1	832.5	906.2	951.1	906.2
Principal amount of Senior Notes		(500.0)	(500.0)	(500.0)	(500.0)	(500.0)
Principal amount of Convertible Notes		(330.0)	(330.0)	(330.0)	(330.0)	(330.0)
NET CASH	[25]	121.1	2.5	76.2	121.1	76.2
Adjusted EBITDA (LTM)		1,284.2	1,365.1	1,536.6	1,284.2	1,536.6
Net cash/Adjusted EBITDA (LTM) ratio¹	[25]	0.09x	0.00x	0.05x	0.09x	0.05x

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

At year-end, Endeavour’s liquidity remained strong at $1.53 billion, consisting of $951.1 million of cash and cash equivalents and $575.0 million available through the Company’s undrawn revolving credit facility.
Endeavour’s net cash position has increased by $44.9 million in FY-2022, to $121.1 million and the net debt / Adjusted EBITDA (LTM) leverage remains well below the Company’s long-term target of less than 0.50x, which provides flexibility to continue to supplement its shareholder return programme while maintaining headroom to fund its organic growth.

REVENUE PROTECTION PROGRAMME

In order to increase cash flow visibility during its construction phase, the Company recently extended its revenue protection programme, using a combination of zero premium gold collars and forward sales contracts, to cover a portion of the 2024 production, in addition to the 2023 production for which the Company already had gold collars and forward sales contracts in place.
In FY-2022, approximately 300koz were settled in a collar with a call price of $2,100/oz and a put price of $1,750/oz. In addition, approximately 514koz in forward sales contracts were settled with an average price of $1,831/oz. The realised gain on these contracts was $19.8 million for the year.
For FY-2023, approximately 300koz (75koz per quarter) are expected to be delivered into a collar with a call price of $2,100/oz and a put price of $1,750/oz. In addition, approximately 120koz (30koz per quarter) are scheduled to be settled in forward sales contracts at an average gold price of $1,828/oz.
For FY-2024, approximately 450koz are expected to be delivered into a collar with a call price of $2,400/oz and a put price of $1,807/oz. In addition, during H1-2024, a total of approximately 70koz (approximately 35koz per quarter) are expected to be settled in forward sales contracts with an average gold price of $2,033/oz.

2022 OPERATIONAL PERFORMANCE OVERVIEW

Regrettably, a fatal accident occurred at the Ity mine in Côte d’Ivoire on 27 October 2022 as a contractor passed away as a result of injuries sustained in an incident that occurred during blasting activities. While the Group’s Lost Time Injury Frequency Rate (“LTIFR”) improved significantly from 0.20 for FY-2021 to 0.02 for FY-2022, Endeavour will continue to prioritise safety in accordance with its Zero-harm target.
FY-2022 production from continuing operations amounted to 1,400koz, achieving the top end of the guided 1,315-1,400koz range. FY-2022 AISC from continuing operations amounted to $928/oz, achieving the guided $880-930/oz range in spite of industry-wide inflationary pressures. The strong production performance was mainly due to the Houndé and Ity mines which benefitted from higher than planned throughput, and the Mana mine where higher than expected open pit mining tonnages were extracted from the Wona open pit prior to its depletion. Inflationary pressures on costs were partially offset by favourable foreign exchange movements as the Euro declined against the Dollar as well as group-wide optimisation initiatives.
FY-2022 production from continuing operations decreased by 36koz or 3% from 1,436koz in FY-2021 to 1,400koz in FY-2022 due to lower production at Boungou, Mana and Wahgnion as a result of mining and processing of lower grade ore. AISC from continuing operations increased, in line with guidance, from $864/oz in FY-2021 to $928/oz in FY-2022.

Table 8: Consolidated Group Production

	THREE MONTHS ENDED			YEAR ENDED
	31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021
(All amounts in koz, on a 100% basis)	31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021
Boungou	26	29	35	116	174
Hounde	63	72	77	295	293
Ity	82	81	60	313	272
Mana	46	42	54	195	205
Sabodala-Massawa¹	103	86	105	358	345
Wahgnion¹	36	32	47	124	147
PRODUCTION FROM CONTINUING OPERATIONS	355	343	378	1,400	1,436
Karma²	—	—	20	10	88
Agbaou³	—	—	—	—	13
GROUP PRODUCTION	355	343	398	1,410	1,536

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

Table 9: Consolidated All-In Sustaining Costs¹

(All amounts in US$/oz)	THREE MONTHS ENDED			YEAR ENDED
	31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021
	31 December 2022	30 September 2022	31 December 2021	31 December 2022	31 December 2021
Boungou	1,118	1,219	825	1,064	801
Hounde	969	716	874	809	843
Ity	847	773	854	812	836
Mana	999	1,098	1,116	994	1,026
Sabodala-Massawa²	661	779	591	691	645
Wahgnion²	1,376	1,647	1,066	1,525	994
Corporate G&A	43	39	51	36	34
AISC FROM CONTINUING OPERATIONS	954	960	894	928	864
Karma³	—	—	1,300	1,504	1,193
Agbaou⁴	—	—	—	—	1,131
GROUP AISC	954	960	915	933	885

¹This is a non-GAAP measure. ²Included for the post acquisition period commencing 10 February 2021. ³Divested on 10 March 2022. ⁴Divested on 1 March 2021.

2023 OUTLOOK

As published on 23 January 2023, the production guidance for FY-2023 amounts to 1,325-1,425koz, which marks an increase over the FY-2022 guidance of 1,315-1,400koz, while Group AISC is expected to remain consistent with that achieved over recent quarters at $940-995/oz. Group production is expected to be more heavily weighted towards H2-2023. More details on individual mine guidances have been provided in the below sections.
Total mine capital expenditure for FY-2023 is expected to remain consistent with that achieved in FY-2022 at approximately $370 million, consisting of $165.0 million for sustaining capital expenditure and $205.0 million for non-sustaining capital expenditure.
Growth capital spend for FY-2023 is expected to amount to $400 million, consisting of $170 million for the Sabodala-Massawa BIOX® Expansion project and $230 million for the Lafigué project. Further details are provided in the sections below.
Exploration will continue to be a strong focus in FY-2023 with a company-wide exploration budget of $70 million, of which approximately 50% is expected to be expensed and 50% is expected to be capitalised. For FY-2023, approximately $22 million will be spent on greenfield exploration with an increased focus on the Tanda-Iguela property.

OPERATING ACTIVITIES BY MINE

Boungou Gold Mine, Burkina Faso

Table 10: Boungou Performance Indicators

For The Period Ended	Q4-2022	Q3-2022	Q4-2021	FY-2022	FY-2021
Tonnes ore mined, kt	256	210	301	990	1,437
Total tonnes mined, kt	3,497	3,559	4,294	18,505	26,439
Strip ratio (incl. waste cap)	12.66	15.95	13.27	17.69	17.40
Tonnes milled, kt	295	338	352	1,348	1,352
Grade, g/t	2.85	2.84	3.36	2.80	4.07
Recovery rate, %	93	94	95	94	95
Production, koz	26	29	35	116	174
Gold revenue¹	42.3	50.9	60.6	212.0	304.8
Operating expenses	(22.5)	(32.4)	(22.6)	(105.6)	(105.1)
Royalties	(2.6)	(3.0)	(3.8)	(12.7)	(18.5)
By product revenue	0.1	—	0.1	0.3	0.4
Non-cash operating expenses	—	—	—	—	4.4
Total cash cost¹	(25.0)	(35.4)	(26.3)	(118.0)	(118.8)
Sustaining capital¹	(1.5)	(1.4)	(1.6)	(6.6)	(18.1)
Total AISC¹	(26.5)	(36.8)	(27.9)	(124.6)	(136.9)
Non-sustaining capital¹	(6.0)	(4.0)	(9.0)	(27.5)	(22.9)
Total all-in costs¹	(32.5)	(40.8)	(36.9)	(152.1)	(159.8)
Total cash cost/oz	1,054	1,172	778	1,008	695
AISC/oz	1,118	1,219	825	1,064	801

¹ Non-GAAP measure. Refer to the non-GAAP Measures section for further details.
² Non-cash operating expenses include reversal of the fair value adjustment of inventory on hand at the acquisition date.

Q4-2022 vs Q3-2022 Insights

Production decreased from 29koz in Q3-2022 to 26koz in Q4-2022 due to lower tonnes milled and a slightly lower recovery rate, while processed grades remained flat.
- Total ore tonnes mined increased due to greater ore availability and lower stripping in the West Pit compared to the prior quarter.
- Tonnes milled decreased due to downtime experienced during the quarter due to the previously disclosed supply chain delays in getting fuel and some consumables to site.
- Average grade processed remained flat compared to the prior quarter as a decrease in the average grade of mined ore was offset by reduced reliance on lower grade stockpiles in the mill feed.
- Recovery rates decreased slightly due in part to the impacts of downtime on the processing circuit.
AISC decreased from $1,219 per ounce in Q3-2022 to $1,118 per ounce in Q4-2022 due to lower mining unit costs driven by reduced haulage and blasting, partially offset by lower ounces sold during the quarter.
Sustaining capital expenditure increased slightly from $1.4 million in Q3-2022 to $1.5 million in Q4-2022 and was mainly related to borehole installations and processing infrastructure.
Non-sustaining capital expenditure increased from $4.0 million in Q3-2022 to $6.0 million in Q4-2022 and was mainly related to pre-stripping activities at the West Flank pit.

FY-2022 Insights

FY-2022 production totalled 116koz which, though in-line with the previously disclosed outlook, stands below the guided 130-140koz range mainly due to lower than expected mining activities, which limited access to higher grade ore, as a result of supply chain challenges. FY-2022 AISC amounted to $1,064/oz, which is above the guided $900-1,000/oz range due to the lower than expected production, higher fuel prices and increased security costs.
Production decreased from 174koz in FY-2021 to 116koz in FY-2022 due to the impact of lower grade material available as a result of delays in supplies arriving on site causing unplanned downtime. AISC increased from $801/oz in FY-2021 to $1,064/oz in FY-2022 due to the lower grades processed, and fuel, consumable and security cost increases.

2023 Outlook

Boungou is expected to produce between 115-125koz in FY-2023 at an AISC of between $985-1,075/oz.
Mining activities in H1-2023 are expected to focus on waste stripping at the West Flank pit and ore mining in the West pit phase 3. In H2-2023, greater ore volumes are expected to be sourced from the West Flank phase 1 pit. Mill throughput is expected to decrease slightly while grades are expected to improve year over year. Production is expected to be weighted towards H2-2023 when higher grades are expected to be accessed from the West Flank phase 1 pit following waste stripping activities.
Sustaining capital expenditure is expected to decrease from approximately $6.6 million in FY-2022 to $5.0 million in FY-2023, relating primarily to waste stripping, plant maintenance and increasing fuel storage capacity on site.
Non-sustaining capital expenditure is expected to increase from approximately $27.5 million in FY-2022 to $30.0 million in FY-2023, relating primarily to significant waste stripping activity at the West Flank pit phase 1 in H1-2023.

Houndé Gold Mine, Burkina Faso

Table 11: Houndé Performance Indicators

For The Period Ended	Q4-2022	Q3-2022	Q4-2021	FY-2022	FY-2021
Tonnes ore mined, kt	1,912	1,174	777	5,754	4,397
Total tonnes mined, kt	12,901	9,178	12,297	45,490	49,917
Strip ratio (incl. waste cap)	5.75	6.82	14.83	6.91	10.35
Tonnes milled, kt	1,359	1,234	1,226	5,043	4,622
Grade, g/t	1.55	1.83	2.05	1.92	2.13
Recovery rate, %	92	92	94	93	92
Production, koz	63	72	77	295	293
Gold revenue¹	109.1	125.8	131.8	532.9	522.3
Operating expenses	(41.2)	(38.7)	(40.8)	(170.5)	(162.7)
Royalties	(8.3)	(8.9)	(9.5)	(37.5)	(35.7)
By product revenue	0.2	0.1	0.1	0.6	0.8
Non-cash operating expenses²	—	—	—	—	—
Total cash cost¹	(49.3)	(47.5)	(50.2)	(207.4)	(197.6)
Sustaining capital¹	(10.9)	(6.4)	(13.9)	(32.0)	(49.1)
Total AISC¹	(60.2)	(53.9)	(64.1)	(239.4)	(246.7)
Non-sustaining capital¹	(13.6)	(18.4)	(6.8)	(39.2)	(17.1)
Total all-in costs¹	(73.8)	(72.3)	(70.9)	(278.6)	(263.8)
Total cash cost/oz	793	631	684	701	675
AISC/OZ	969	716	874	809	843

Q4-2022 vs Q3-2022 Insights

Production decreased from 72koz in Q3-2022 to 63koz in Q4-2022 due to lower processed grades, which was slightly offset by higher mill throughput, while recovery rates remained flat.
- Tonnes of ore mined increased as higher volumes mined in the Kari West and Vindaloo Main pits offset lower volumes from the Kari Pump pit, where stripping activities have continued. Total tonnes mined increased due to higher utilisation of the mining fleet following the end of the wet season.
- Tonnes milled increased as there was a higher proportion of softer ore from Kari West in the mill feed enabling higher throughput rates.
- Processed grades decreased, as per the outlook previously disclosed, due to less high grade oxide ore sourced from the Kari Pump pit given the increased focus on stripping activities.
AISC increased from $716 per ounce in Q3-2022 to $969 per ounce in Q4-2022 due to increased mining volumes and lower production due to lower average grade in the ore blend in addition to higher unit milling costs.
Sustaining capital expenditure increased from $6.4 million in Q3-2022 to $10.9 million in Q4-2022, and mainly related to waste extraction at the Vindaloo Main pit in addition to spare parts and fleet rebuilds.
Non-sustaining capital expenditure decreased from $18.4 million in Q3-2022 to $13.6 million in Q4-2022, mainly related to the pre-stripping activities at the Kari Pump pit in addition to resettlement activities, and infrastructure at the Kari West area and completion of a TSF wall raise.

FY-2022 Insights

FY-2022 production totalled 295koz which, in-line with the previously disclosed outlook, exceeded the guided 260-275koz range, due to higher than scheduled volumes of high grade ore sourced from the Kari area and better mill performance following optimisation initiatives. FY-2022 AISC amounted to $809/oz, which was below the guided $875-925/oz range due to the benefit of the higher than expected production.
FY-2022 production remained consistent with FY-2021 as increased mill throughput, driven by efficiency improvements, and improved recoveries associated with the high-grade ore sourced from the Kari Pump pit offset a lower average grade milled. AISC decreased from $843/oz in FY-2021 to $809/oz in FY-2022 due to lower waste mining volumes.

2023 Outlook

Houndé is expected to produce between 270-285koz in FY-2023 at AISC of $850-925/oz.
Mining activities during the year will focus on the Vindaloo Main, Kari Pump and Kari West pits. In H1-2023, ore is expected to be mined primarily from the Kari West pit, while significant waste stripping is underway at the Kari Pump stage 3 and Vindaloo Main pits. In H2-2023, greater ore volumes are expected be mined from the Kari Pump and Vindaloo Main pits following waste stripping in H1-2023, with Kari West continuing to provide supplemental feed. Production for the year is expected to be weighted towards H2-2023 as the waste stripping activities in H1-2023 are expected to provide access to higher grade ore sources at both the Kari Pump and Vindaloo Main pits in the second half of the year. Throughput and recoveries are expected to be slightly lower in FY-2023 compared to FY-2022 due to a greater proportion of harder fresh ore in the blend.
Sustaining capital expenditure is expected to increase from $32.0 million in FY-2022 to approximately $40.0 million in FY-2023, relating mainly to waste stripping, fleet re-builds and plant equipment replacements and upgrades.
Non-sustaining capital expenditure is expected to decrease from $39.2 million in FY-2022 to approximately $35.0 million in FY-2023, and primarily relates to waste stripping activities and stage 8 and 9 of the TSF1 embankment raise.

Ity Gold Mine, Côte d’Ivoire

Table 12: Ity Performance Indicators

For The Period Ended	Q4-2022	Q3-2022	Q4-2021	FY-2022	FY-2021
Tonnes ore mined, kt	1,662	1,180	2,234	7,044	7,906
Total tonnes mined, kt	6,043	4,925	6,624	23,946	24,950
Strip ratio (incl. waste cap)	2.64	3.17	1.97	2.40	2.16
Tonnes milled, kt	1,710	1,375	1,624	6,351	6,248
Grade, g/t	1.73	2.04	1.50	1.80	1.67
Recovery rate, %	87	87	77	85	80
Production, koz	82	81	60	313	272
Gold revenue¹	144.6	132.7	104.4	556.1	499.6
Operating expenses	(61.2)	(52.0)	(39.4)	(214.2)	(189.0)
Royalties	(8.4)	(7.8)	(5.8)	(31.1)	(27.5)
By product revenue	2.2	1.7	1.8	7.5	7.2
Non-cash operating expenses²	—	—	—	—	—
Total cash cost¹	(67.4)	(58.1)	(43.4)	(237.8)	(209.3)
Sustaining capital¹	(2.5)	(2.5)	(6.1)	(13.4)	(24.0)
Total AISC¹	(69.9)	(60.6)	(49.5)	(251.2)	(233.3)
Non-sustaining capital¹	(22.9)	(15.4)	(10.9)	(49.0)	(35.3)
Total all-in costs¹	(92.8)	(76.0)	(60.4)	(300.2)	(268.6)
Total cash cost/oz	816	741	749	769	750
AISC/OZ	847	773	854	812	836

Q4-2022 vs Q3-2022 Insights

Production of 82koz in Q4-2022 was slightly higher than the prior quarter as lower processed grades were offset by higher throughput, while recoveries remained consistent
- Tonnes of ore mined and total tonnes mined increased due to increased mining rates at the Ity and Walter pits as well as increased tonnages mined from the historic stockpiles, which was partially offset by reduced mining at the Le Plaque pit.
- Tonnes milled increased as a higher proportion of softer oxide ore from the historic heap leach stockpiles was fed through the surge bin feeder, while the previous quarter was impacted by the wet season.
- Processed grades decreased as a lower proportion of high grade material from Le Plaque was processed.
AISC increased from $773 per ounce in Q3-2022 to $847 per ounce in Q4-2022 primarily due to lower grade ore processed and higher volumes mined and processed.
Sustaining capital expenditure of $2.5 million in Q4-2022 was consistent with the prior quarter and related primarily to mine infrastructure investments.
Non-sustaining capital expenditure increased from $15.4 million in Q3-2022 to $22.9 million in Q4-2022 and related primarily to the ongoing construction of the Recyn project and compensation of land for the TSF 2 facility.

FY-2022 Insights

FY-2022 production totalled 313koz which, in accordance with the previously disclosed outlook, was above the guided 255-270koz range mainly due to higher than expected grades, higher recoveries associated with less processing of transitional material from Daapleu, and improved processing plant performance from increased throughput through the use of the surge bin. FY-2022 AISC amounted to $812/oz, which was below the guided $850-900/oz range mainly due to the higher than expected production and grades.
FY-2022 production increased from 272koz in FY-2021 to 313koz in FY-2022 due to an increase in throughput rates from improvements in plant operating and maintenance strategies, continued use of the surge bin providing supplemental oxide ore to the mill feed, higher average processed grades due to higher portions of high grade material from Le Plaque in the mill feed and higher recoveries due to a lower portion of fresh material from Daapleu. FY-2022 AISC decreased from $836/oz in FY-2021 to $812/oz in FY-2022, driven largely by the increased production during the period.

2023 Outlook

Ity is expected to produce between 285-300koz in FY-2023 at an AISC of between $840-915/oz.
For FY-2023, ore is expected to be sourced from the Ity, Bakatouo, Le Plaque and Walter pits, supplemented by historical heap leach stockpiles. Ore tonnes processed for FY-2023 are expected to remain consistent with the prior year. Grades are expected to decline due to the cessation of ore mining at the higher grade Daapleu open pit in mid-2022, while recoveries are expected to increase as no Daapleu fresh material is expected in the mill feed for FY-2023.
Sustaining capital expenditure is expected to increase from $13.4 million in FY-2022 to $25.0 million in FY-2023 and is primarily related to waste stripping, installation of de-watering boreholes and capital spares.
Non-sustaining capital expenditure is expected to decrease from $49.0 million in FY-2022 to approximately $40.0 million in FY-2023, mainly related to the completion of the Recyn initiative which is expected to be commissioned early in H2-2023, as well as the TSF stage 5 raise and commencement of construction of TSF 2. In addition, the mineral sizer project is expected to be launched in H2-2023.

Mana Gold Mine, Burkina Faso

Table 13: Mana Performance Indicators

For The Period Ended	Q4-2022	Q3-2022	Q4-2021	FY-2022	FY-2021
OP tonnes ore mined, kt	338	76	529	1,260	2,025
OP total tonnes mined, kt	1,057	76	2,695	3,615	23,529
OP strip ratio (incl. waste cap)	2.13	0.00	4.09	1.87	10.62
UG tonnes ore mined, kt	299	250	180	944	838
Tonnes milled, kt	643	691	651	2,607	2,593
Grade, g/t	2.33	1.90	2.75	2.49	2.65
Recovery rate, %	93	92	93	92	91
Production, koz	46	42	54	195	205
Gold revenue¹	78.1	70.2	94.0	352.3	378.2
Operating expenses	(37.3)	(38.3)	(49.7)	(162.9)	(180.3)
Royalties	(4.7)	(4.3)	(6.4)	(21.2)	(25.2)
By product revenue	0.1	0.2	0.1	0.7	0.8
Non-cash operating expenses²	—	—	—	—	0.4
Total cash cost¹	(41.9)	(42.4)	(56.0)	(183.4)	(204.3)
Sustaining capital¹	(2.6)	(3.1)	(2.4)	(9.9)	(12.6)
Total AISC¹	(44.5)	(45.5)	(58.4)	(193.3)	(216.9)
Non-sustaining capital¹	(16.7)	(19.2)	(6.9)	(61.4)	(63.3)
Total all-in costs¹	(61.2)	(64.7)	(65.3)	(254.7)	(280.2)
Total cash cost/oz	941	1,023	1,070	943	966
AISC/OZ	999	1,098	1,116	994	1,026

¹ Non-GAAP measure. Refer to the non-GAAP Measures section for further details
² Non-cash operating expenses include reversal of the fair value adjustment of inventory on hand at the acquisition date.

Q4-2022 vs Q3-2022 Insights

Production increased from 42koz in Q3-2022 to 46koz in Q4-2022, largely due to higher processed grades and gold recovery rates, partially offset by a decrease in tonnes milled.
- Total open pit tonnes mined increased as mining activities ramped up at the Maoula open pit.
- Total underground ore tonnes mined increased as more production stopes were accessed from the Siou underground mine due to the extraction sequence and backfilling of primary stopes conducted in Q3-2022. Across both underground mines, a total of 2,117 meters of development were completed during the quarter.
- Tonnes milled decreased due to planned mill maintenance, as per the previously disclosed outlook.
- The average processed grade increased due to higher grade ore feed from the Siou underground.
- Recovery rates increased slightly due to the change in the ore blend.
AISC decreased from $1,098 per ounce in Q3-2022 to $999 per ounce in Q4-2022 due to higher volumes of gold sold and lower unit processing costs, partially offset by an increase in open pit mining unit costs as a result of the ramp up of mining at the Maoula open pit.
Sustaining capital expenditure decreased from $3.1 million in Q3-2022 to $2.6 million in Q4-2022 and related primarily to infrastructure associated with underground development.
Non-sustaining capital expenditure decreased from $19.2 million in Q3-2022 to $16.7 million in Q4-2022 and was mainly related to the development of Wona underground, establishment of mining infrastructure at the Maoula satellite open pit, and the ongoing TSF wall raise.

FY-2022 Insights

FY-2022 production totalled 195koz, exceeding the guided 170-190koz range due to better than expected ore tonnage mined from the Wona open pit before it was depleted and greater volumes of ore sourced from the Siou and Wona underground mines. FY-2022 AISC amounted to $994/oz, slightly below the guided $1,000-$1,100/oz range, largely due to better than expected processed grades and production from the Wona South pit prior to completion.
FY-2022 production decreased from 205koz in FY-2021 to 195koz in FY-2022 largely due to lower grades milled as a result of processing more lower grade stockpiles to supplement the mill feed as open pit mining at the Wona open pit came to a close during the year. FY-2022 AISC decreased from $1,026/oz in FY-2021 to $994/oz in FY-2022 primarily due to an increased proportion of underground mining, and the cessation of open pit mining from the higher cost Wona open pit during the year.

2023 Outlook

Mana is expected to produce between 190-210koz in FY-2023 at an AISC of $950-1,050/oz.
In FY-2023, ore will be sourced primarily from the Siou and Wona underground where stope mining is expected to continue throughout the year, supplemented by ore from the Maoula open pit. Processed grades are expected to increase compared to the prior year as higher-grade underground ore is expected to represent a larger portion of the mill feed. Production is expected to be weighted to H2-2023 as more stopes are expected to be accessible at the Wona underground mine following the development conducted in H1-2023. Development at the Wona underground is expected to continue throughout the year while establishment of an additional portal is expected to commence in H1-2023.
Sustaining capital expenditure is expected to increase from $9.9 million in FY-2022 to approximately $25.0 million in FY-2023, with expenditure relating mainly to Siou capitalised underground development and plant maintenance.
Non-sustaining capital expenditure is expected to decrease from $61.4 million in FY-2022 to approximately $45.0 million in FY-2023, with expenditure relating mainly to Wona underground development and establishment of a new portal, and its associated infrastructure, and the stage 5 lift of the TSF.

Sabodala-Massawa Gold Mine, Senegal

Table 14: Sabodala-Massawa Performance Indicators

For The Period Ended	Q4-2022	Q3-2022	Q4-2021	FY-2022	FY-2021
Tonnes ore mined, kt	1,727	1,297	1,719	6,449	6,603
Total tonnes mined, kt	12,645	11,761	12,789	49,259	40,933
Strip ratio (incl. waste cap)	6.32	8.07	6.44	6.64	5.20
Tonnes milled, kt	1,154	1,034	1,081	4,289	3,777
Grade, g/t	3.16	2.84	3.41	2.88	3.19
Recovery rate, %	88	88	90	89	90
Production, koz	103	86	105	358	345
Gold revenue¹	173.0	135.9	189.4	618.3	641.9
Operating expenses	(46.1)	(46.5)	(39.7)	(171.6)	(210.0)
Royalties	(9.8)	(7.6)	(10.5)	(34.7)	(35.9)
By product revenue	0.1	0.1	0.3	0.6	0.8
Non-cash operating expenses²	(0.7)	(0.5)	1.0	3.4	59.7
Total cash cost¹	(56.5)	(54.5)	(48.9)	(202.3)	(185.4)
Sustaining capital¹	(10.3)	(9.4)	(14.2)	(40.0)	(50.3)
Total AISC¹	(66.8)	(63.9)	(63.1)	(242.3)	(235.7)
Non-sustaining capital¹	(6.9)	(12.1)	(14.1)	(40.1)	(34.0)
Total all-in costs¹	(73.7)	(76.0)	(77.2)	(282.4)	(269.7)
Total cash cost/oz	559	665	458	577	507
AISC/oz	661	779	591	691	645

Q4-2022 vs Q3-2022 Insights

Production increased from 86koz in Q3-2022 to 103koz in Q4-2022 due to an increase in processed grade and plant throughput while plant recovery rates remained stable.
- Total tonnes mined increased with a ramp up of mining activities at the Bambaraya pit and increased ore mining at the Massawa North Zone pits, in addition to the ongoing mining activity at the Sabodala and Massawa Central Zone pits.
- Tonnes milled increased as the feed blend contained a higher proportion of softer oxide material from the Bambaraya pit while the previous quarter was impacted by the rainy season and downtime associated with scheduled plant maintenance.
- Average processed grade increased significantly due to the increased contribution of higher grade ore from the Massawa Central Zone and Massawa North Zone pits.
AISC decreased from $779 per ounce in Q3-2022 to $661 per ounce in Q4-2022 due to higher production driven by the higher grade ore from Massawa and lower processing unit costs driven by lower maintenance costs, while mining unit rates remained consistent.
Sustaining capital expenditure increased from $9.4 million in Q3-2022 to $10.3 million in Q4-2022 and was mainly related to waste stripping activities at Sabodala, Massawa Central Zone and the Massawa North Zone in addition to mining equipment rebuilds.
Non-sustaining capital expenditure decreased from $12.1 million in Q3-2022 to $6.9 million in Q4-2022 and was mainly related to the final stages of construction at the Sabodala Village resettlement as well as infrastructure near the Massawa mining areas.

FY-2022 Insights

FY-2022 production totalled 358koz, achieving near the bottom end of the guided 360-375koz range due to delays at the end of the year in accessing high grade ore areas and greater volumes of waste extraction in the Massawa North Zone pits than initially scheduled. FY-2022 AISC amounted to $691/oz, within the guided $675-$725/oz range.
FY-2022 production increased from 345koz in FY-2021 to 358koz in FY-2022 due to the full year of production following the Teranga acquisition in Q1-2021. FY-2022 AISC increased from $645/oz to $691/oz due to the lower average grade processed and increases in fuel and explosive costs, which were partially offset by foreign exchange benefits and lower sustaining capital.

2023 Outlook

Sabodala-Massawa is expected to produce between 315-340koz in FY-2023 at an AISC of $760-810/oz.
In FY-2023 ore will be sourced primarily from the Sabodala and Bambaraya pits with additional higher grade non-refractory ore expected to be sourced from the Massawa Central Zone and Massawa North Zone pits. Tonnes milled and recoveries are expected to be consistent with FY-2022 performance, while grades are expected to be slightly lower due to lower grade areas of the Massawa North Zone pit planned to be mined in 2023.
Sustaining capital expenditure is expected to increase from approximately $40.0 million in FY-2022 to $45.0 million in FY-2023, primarily related to capitalised waste as well as fleet re-builds and additional mining equipment purchases.
Non-sustaining capital expenditure is expected to decrease from approximately $40.1 million in FY-2022 to $35.0 million in FY-2023 and is primarily related to waste capital stripping, infrastructure related to the Massawa mining areas and community resettlement.

Plant Expansion

Construction of the Sabodala-Massawa BIOX® project was launched in April 2022 and remains on budget and on schedule for completion in Q2-2024.
Growth capital expenditure for the expansion project is approximately $290.0 million, of which $61.7 million has been incurred since project launch, with $52.7 million incurred in FY-2022. Approximately $158.3 million or 55% of the total growth capital has been committed to date, with pricing in line with expectations, mainly related to detailed engineering and design, earthworks, civil works, processing plant construction and ordering of long lead items including the mills.
Growth capital expenditure guidance for FY-2023 is expected to amount to $170.0 million mainly related to process plant and power plant construction activities as well as the TSF-1B construction.
The construction progress regarding critical path items is detailed below:
- Bulk earthworks are largely complete.
- Civil works have continued to progress well with the concrete pours well underway for the crushing area, milling area, BIOX® reactors, neutralisation and the reclaim areas.
- Processing plant construction is underway, with BIOX® reactor construction progressing well and CIL tank and neutralisation tank ring beams in place.
- Expansion of the 18MW power plant has commenced, with excavation underway for the concrete foundations for the three large generators.

Wahgnion Gold Mine, Burkina Faso

Table 15: Wahgnion Performance Indicators

For The Period Ended	Q4-2022	Q3-2022	Q4-2021	FY-2022	FY-2021
Tonnes ore mined, kt	1,051	841	1,054	3,797	3,807
Total tonnes mined, kt	9,360	8,249	8,965	37,219	27,185
Strip ratio (incl. waste cap)	7.91	8.81	7.51	8.80	6.14
Tonnes milled, kt	921	939	959	3,831	3,322
Grade, g/t	1.32	1.13	1.64	1.08	1.43
Recovery rate, %	92	92	92	92	94
Production, koz	36	32	47	124	147
Gold revenue¹	66.8	52.1	83.1	225.7	284.1
Operating expenses	(41.0)	(47.9)	(37.6)	(154.1)	(135.5)
Royalties	(4.7)	(3.7)	(5.8)	(15.7)	(19.5)
By product revenue	0.4	0.3	0.2	1.1	1.2
Non-cash operating expenses²	(6.5)	5.9	(1.1)	(0.3)	8.3
Total cash cost¹	(51.8)	(45.4)	(44.3)	(169.0)	(145.5)
Sustaining capital¹	(1.1)	(5.3)	(4.8)	(23.2)	(12.3)
Total AISC¹	(52.9)	(50.7)	(49.1)	(192.2)	(157.8)
Non-sustaining capital¹	(10.3)	(9.9)	(7.2)	(31.6)	(27.5)
Total all-in costs¹	(63.2)	(60.6)	(56.3)	(223.8)	(185.3)
Total cash cost/oz	1,348	1,475	962	1,341	916
AISC/OZ	1,376	1,647	1,066	1,525	994

Q4-2022 vs Q3-2022 Insights

Production increased from 32koz in Q3-2022 to 36koz in Q4-2022 due to higher processed grades which were partially offset by slightly lower tonnes milled, while gold recovery rates remained flat.
- Total tonnes mined increased due to increased mining productivity following the end of the wet season and the benefit of a full quarter of mining at the Samavogo pit. In addition, mining continued at the Nogbele North and South pits while mining at the current stage of the Fourkoura pit ended during the quarter.
- Tonnes milled decreased slightly due to higher processing plant downtime, which was slightly offset by higher plant utilisation rates.
- The average processed grade increased due to the addition of higher grade ore sourced from the Samavogo pit.
AISC decreased from $1,647 per ounce in Q3-2022 to $1,376 per ounce in Q4-2022 due to increased gold ounces produced and lower sustaining capital incurred associated with less waste stripping during the quarter.
Sustaining capital expenditure decreased from $5.3 million in Q3-2022 to $1.1 million in Q4-2022 and was mainly related to waste capitalisation and mining fleet maintenance.
Non-sustaining capital expenditure increased slightly from $9.9 million in Q3-2022 to $10.3 million in Q4-2022 and was mainly related to capitalised drilling, the ongoing TSF raise and mining infrastructure and establishment costs for the Samavogo pit.

FY-2022 Insights

FY-2022 production totalled 124koz, which in accordance with the previously disclosed outlook, stands below the guided 140-150koz range mainly due to lower than expected grades from the Nogbele North and South pits during the year. FY-2022 AISC amounted to $1,525/oz, which is above the guided $1,050-$1,150/oz range due to lower volumes of gold sold and higher than expected mining costs driven by a combination of increased unit costs due to the expected higher fuel pricing and greater volumes being mined at a higher strip ratio in order to increase the volumes of mill feed available.
FY-2022 production decreased from 147koz in FY-2021 to 124koz due to lower processed grades associated with lower grade ore mined and lower recovery rates, which was partially offset by higher tonnes milled. FY-2022 AISC increased from $994/oz in FY-2021 to $1,525/oz in FY-2022 due to higher than expected mining costs and mining at a higher strip ratio.

2023 Outlook

Wahgnion is expected to produce between 150-165koz in 2023 at an AISC of $1,250-1,350/oz.
Ore is expected to be sourced primarily from the Nogbele North and Samavogo pits, with mining at the Nogbele South pits scheduled to end in H1-2023 and commencement of mining at the Stinger pits expected in H2-2023. Production is expected to be weighted to the second half of the year as greater volumes of high-grade ore are expected to be sourced from the Samavogo pit in H2-2023, as the strip ratio reduces. Mill throughput rates are expected to be similar to FY-2022 while grades are expected to increase with the full year benefit of higher-grade deposits.
Sustaining capital expenditure is expected to increase slightly from $23.2 million in FY-2022 to approximately $25.0 million in FY-2023, and primarily relates to waste stripping at Samavogo, Stinger and Nogbele North pits.
Non-sustaining capital expenditure is expected to decrease from $31.6 million in FY-2022 to approximately $15.0 million in FY-2023, and primarily relates to completion of the capitalised drilling campaign, mining infrastructure at the Stinger pit including haul road construction, resettlement activities and completion of the TSF wall raise.

LAFIGUÉ DEVELOPMENT PROJECT

Construction of the Lafigué project on the Fetekro property in Côte d'Ivoire was launched in early Q4-2022, following the completion of a DFS which confirmed Lafigué’s potential to be a cornerstone asset for Endeavour. The project will have a 4Mtpa capacity CIL plant, with an annual average production of 203koz at a low AISC of $871/oz over its initial 12.8 year mine life, with significant exploration potential on the Fetekro property. First gold production is scheduled for Q3-2024.
Growth capital expenditure for the project is approximately $448.0 million, of which $60.0 million has been incurred to date and $50.6 million was incurred in FY-2022. Approximately $153.0 million or 34% of the total growth capital has been committed to date, with pricing in line with expectations, mainly related to site roads, the construction camp and offices, airstrip construction, perimeter fencing, process plant earthworks, water storage and harvest dam earthworks and detailed engineering.
Growth capital expenditure guidance for FY-2023 is expected to amount to $230.0 million, mainly related to civil works for the TSF and Water Harvest Dam as well as general infrastructure, process plant and TSF construction activities.
The construction progress regarding critical path items is detailed below:
- Bulk earthworks for the process plant are complete, earthworks for the TSF are nearing completion and earthworks for the water storage and water harvest dams are approximately 80% complete, with all major earthworks expected to be completed in Q1-2023.
- Process plant civil works are well underway, foundations for the primary crusher, mills and reclaim facilities are complete, the CIL tank foundations have been poured and the ring beams and footrings for the seven CIL tanks are now in place.
- Long lead packages have all been awarded, the jaw crusher, HPGR, ball mill and cone crushers are expected on site in H1-2023 in line with the construction schedule.
- Construction of the 225kV power line is progressing with the powerline area now 30% cleared. Transmission tower manufacturing is expected to be completed in H1-2023.

EXPLORATION ACTIVITIES

Endeavour’s extensive FY-2022 exploration programme comprised $82.3 million of spend, with over 340,000 meters of drilling completed, of which $14.2 million was spent in Q4-2022.
During the year, exploration activities were mainly focussed on expanding resources at existing operations and delineating new greenfield opportunities with significant success achieved at the Tanda-Iguela property in Côte d'Ivoire, where a maiden resource was defined in Q4-2022.
Endeavour discovered 3.0Moz of Measured and Indicated resources during FY-2022 with discoveries at Assafou (+1.1Moz), Ity (+0.7Moz), Bantou (+0.7Moz), Houndé (+0.1Moz), Lafigué (+0.1Moz), Mana (+0.1Moz) and Sabodala-Massawa (+0.1Moz). As such, Endeavour remains on track to achieve its 5 year exploration target of discovering 15 to 20Moz of Indicated resources over the 2021 to 2025 period, at the low discovery cost of less than $25 per ounce.

Table 16: Consolidated Q4-2022 & FY-2022 Exploration Expenditure and 2023 Guidance¹

All amounts in US$ million	Q4-2022 ACTUAL	FY-2022 ACTUAL	FY-2023 GUIDANCE
Boungou mine	0.1	2.0	1.0
Houndé mine	0.7	11.6	7.0
Ity mine	2.0	10.0	14.0
Mana mine	1.4	7.0	5.0
Sabodala-Massawa mine	2.5	15.0	15.0
Wahgnion mine	2.0	9.0	4.0
Lafigué project	0.0	6.2	2.0
Greenfield and development projects	5.5	21.5	22.0
TOTAL	14.2	82.3	70.0

¹Consolidated exploration expenditures include expensed, sustaining, and non-sustaining exploration expenditures.

Boungou mine

An exploration programme of $2.0 million was undertaken in FY-2022, which included 8,636 meters of drilling across 708 drill holes. The exploration programme was focused on identifying new targets close to the Boungou mine and testing the continuity of the Boungou deposit mineralisation within the mine fence.
During Q4-2022, $0.1 million was spent as limited drilling was completed and activities were primarily focussed on re-logging historic drill core and incorporating new advanced grade control drilling data into updated geological models to improve the geological interpretation of the Boungou deposit.
An exploration programme of $1.0 million is planned for FY-2023 which will continue to focus on geological reinterpretation of the existing system.

Houndé mine

An exploration programme of $11.6 million was undertaken in FY-2022, which included 30,115 meters of drilling across 299 drill holes. The exploration programme was focussed on extending the resources at Vindaloo South, and testing new targets including Sianikoui and Koho.
During Q4-2022, $0.7 million was spent focussed on drilling at the new Dynikonogolo target, as well as desktop reviews and modelling of the Koho and Golden Hill deposits.
An exploration program of $7.0 million is planned for FY-2023, focussed on extending the mineralisation of Vindaloo Southeast along strike and delineating underground resource potential at the Vindaloo Deeps and Kari West deposits.

Ity mine

An exploration programme of $10.0 million was undertaken in FY-2022, which included 51,181 meters of drilling across 330 drill holes. The exploration programme was focused on extending resources at several near mine deposits and confirming the continuity of the Ity mineralised system resulting in a significantly larger resource adjacent to the Ity processing plant.
During Q4-2022, $2.0 million was spent focussed on the creation of a new single resource model for the Ity area comprised of seven deposits, which were previously thought to be unique. Mineralisation remains open at the West Flotouo, Daapleu, Bakatouo, Colline Sud and Walter deposits with additional drilling planned for 2023. At Le Plaque, resources were added from the Yopleu-Legaleu deposit and the Delta Extension, while a new discovery was logged at the Delta Sud-Est target that appears continuous with the Yopleu-Legaleu vein system. During Q4-2022, the exploration programme also continued to assess the potential of new greenfield targets with discoveries made at both the Gbampleu and Delta SE targets, where further drilling is planned for 2023.
An exploration program of $14.0 million is planned for FY-2023, focussed on evaluating mineralisation in proximity to known deposits, where mineralisation is known to extend including at the Bakatouo, Walter, Ity Flat, West Flotouo and Colline Sud deposits. In addition, the exploration programme will continue to advance the recent discoveries including Gbampleu, located 22km away from the processing plant where several high grade mineralised lenses have been identified.

Mana mine

An exploration programme of $7.0 million was undertaken in FY-2022, which included 30,299 meters of drilling across 291 drill holes focussed on increasing the size of the resources at Maoula Est, Fofina and Nyafe as well as delineating both near mine and greenfield targets.
During Q4-2022 $1.4 million was spent, focussed on identifying new targets using artificial intelligence based prospectivity analysis to screen for targets based on multiple geologic data sets. 70 targets were identified and these targets are progressively being screened through geological and structural mapping, with five promising targets having been identified and prioritised for drilling in 2023.
An exploration program of $5.0 million is planned for FY-2023, primarily focussed on underground exploration at the Siou deposit to upgrade resources in the northern portion of the deposit. In addition reconnaissance drilling is planned at the five near mine and greenfield targets generated in Q4-2022 from the prospectivity analysis.

Sabodala-Massawa mine

An exploration programme of $15.0 million was undertaken in FY-2022, which included 88,717 meters of drilling across 836 drill holes focussed on defining non-refractory resources on targets within the Massawa area including Makana, Matiba, Thianga and Tiwana, expanding resources at Bamabraya and Delya South, delineating resources at Kiesta and developing new targets along the Main Transcurrent Shearzone and Sabodala-Sofia Shear Zone first order structures.
During Q4-2022, $2.5 million was spent, focussed on resource definition drilling at the Kiesta discovery and infill drilling at Makana.
An exploration program of $15.0 million is planned for FY-2023, primarily focussed on adding near-mine non-refractory resources and extending mineralisation at the recently discovered deposits. The drilling programme will focus on extending mineralisation at the Kiesta, Niakafiri and the Keredounda Deeps deposits within the Sabodala-Sofia Shear Zone. Reconnaissance drilling is planned at the Nouma and Missira targets that extend to the north and south of the Kiesta deposit respectively. South of the Sofia pit, drilling at the new Tinkoto target will follow up on historical positive intersections. Additionally, reconnaissance work will target further mineralisation along the Main Transcurrent Shearzone, mineralised extensions to the Sofia deposit and the Massawa Central Zone deeps deposits.

Wahgnion mine

An exploration programme of $9.0 million was undertaken in FY-2022, which included 44,149 meters of drilling across 435 drill holes focussed on evaluating the Ouahiri South, Bozogo, Samavogo Nord and Kassera targets.
During Q4-2022, $2.0 million was spent, focussed on delineating the Kassera target, which was identified through a large gold in soil anomaly along a north-northeast structural trend. Drilling identified favourable geology and a regional north-northeast trending shear zone associated with quartz veining, ankerite alteration and disseminated pyrite. Follow up work is planned for 2023. At the Samavogo North target two mineralised zones of quartz veining with a cumulative strike length over 1.8 kilometers have been identified with zones of high-grade mineralised identified for follow up.
An exploration programme of $4.0 million is planned for FY-2023, primarily focussed on exploring for open-pit oxide ores within close proximity to the current exploitation permits. The Kassera target is located between the Fourkoura and Stinger deposits, and early works have identified promising geology along a favourable structural trend with further drilling planned during the year. In addition further drilling will be conducted on the Samavogo North deposit where zones of high-grade mineralisation have been identified and the Samavogo West area will also be tested with some reconnaissance drilling.

Lafigué project

An exploration programme of $6.2 million was undertaken in FY-2022, which included 39,019 meters of drilling across 1,486 drill holes focussed on finalising the Lafigué resource for the DFS that was published in Q4-2022 and reconnaissance work on several regional targets on the Fetekro exploration permit.
During Q4-2022, the exploration programme was focussed on geological modelling of drill results to define resources and evaluation of the WA01, WA03, WA08, Central Area and Targets 4, 9, 10 and 11 targets for follow up drilling on the Fetekro property.
An exploration programme of $2.0 million is planned for FY-2023, focussed on reconnaissance drilling on identified targets on the Fetekro property with the goal of discovering a satellite deposit in proximity to the Lafigué deposit.

Greenfield exploration

A greenfield exploration programme of $21.5 million was undertaken in FY-2022 of which $5.5 million spent in Q4-2022.
The 2022 greenfield exploration programme mainly focused on the Tanda-Iguela project in Cote d’Ivoire, where activities outlined a maiden Indicated resource of 14.9Mt at 2.33 g/t Au containing 1,114koz and a maiden Inferred resource of 32.9Mt at 1.80 g/t Au containing 1,903koz, as detailed in Appendix A. In 2023, a 70,000 meter drill program is planned with 50,000m allocated to the Assafou deposit to convert existing Inferred resources to Indicated status, and to extend the resource along strike along the identified mineralised trend and down dip. A further 20,000 meters will focus on reconnaissance drilling of nearby targets, where similar structural settings have been identified. An updated resource for the Assafou deposit is expected in H2-2023.
The 2022 greenfield exploration programme also focussed on drilling and modelling the Bantou resource in Burkina Faso, where a portion of the Inferred resource was converted to Indicated status at the Bantou North deposit. A maiden Indicated resource of 18.1Mt at 1.22 g/t Au containing 707koz was outlined, while the Inferred resource was reduced from 51.1Mt at 1.37 g/t Au containing 2,245koz to 16.2Mt at 2.24 g/t Au containing 1,167koz, as detailed in Appendix A. In 2023, the exploration programme will continue at Bantou, focussed on infill drilling the existing resource to convert Inferred resources at the Bantou Main deposit to Indicated status, and incorporating historic drill results into resources, that define additional zones of mineralisation. Furthermore, at the Tiebi East target adjacent to Bantou, further drilling planned for 2023 will aim to confirm high grade mineralised intercepts and extend the strike length of the existing mineralisation.
In Q4-2022, results from follow up drilling on the Siguiri exploration property, in Guinea, were evaluated. In 2023, the Siguiri exploration programme will focus on priority targets identified in 2022 from drilling and based on previous termite mound geochemical sampling, IP survey results and reconnaissance drilling results.
The 2022 greenfield exploration programme focussed on completing a regional soil survey in Senegal, which identified several new targets for follow up on the near mine Branson and Kanoumba exploration permits. In 2023, a structural study, mapping and limited drilling will commence on the Tinkoto and KB targets.

GROUP RESERVES AND RESOURCES

Proven and Probable (“P&P”) reserves amounted to 16.8Moz at year-end 2022, a decrease of 1.0Moz compared to the previous year as discoveries and resource conversion at Ity, Houndé and Lafigué did not fully offset depletion at Boungou, Mana, Sabodala-Massawa and Wahgnion.
Measured and Indicated (“M&I”) resources amounted to 27.3Moz at year-end 2022, remained flat compared to the previous year, as discoveries at Ity (+0.7Moz), Bantou (+0.7Moz), Assafou (+1.1Moz), and Lafigué (+0.1Moz) offset depletion at Boungou, Wahgnion, Houndé, Sabodala-Massawa, and Mana.

Table 17: Reserve and Resource Evolution¹

In Moz on a 100% basis	31 December 2022²	31 December 2021³	Δ 2022 vs 2021
P&P Reserves	16.8	17.8	(1.0)	(6)%
M&I Resources (inclusive of Reserves)	27.3	27.4	(0.1)	—%
Inferred Resources	7.9	8.4	(0.5)	(6)%

¹Excludes Resources from the Afema property, which is in the process of being divested. ²Notes available in Appendix A for the 2022 Mineral Reserves and Resources. ³For 2021 Reserves and Resource notes, please read the press release dated 17 March 2022 available on the Company’s website.

Mine reserve and resource estimates were updated to factor in mine depletion, exploration success and updated unit costs, recovery rates, geological and geotechnical assumptions. Gold price assumptions are summarised in Table 18.

Table 18: Reserve and Resource Gold Prices for Mines

Au price $/oz	BOUNGOU	HOUNDÉ	ITY	MANA	SABODALA-MASSAWA	WAHGNION
2022 Reserves	1,500	1,300	1,300	1,300	1,300	1,500
2021 Reserves	1,300	1,300	1,300	UG at 1,300 OP at 1,300	1,300	1,300

2022 Resources	1,500	1,500 1,800¹	1,500	UG at 1,500 OP at 1,500	1,500	1,500
2021 Resources	1,500	1,500 1,800¹	1,500	UG at 1,500 OP at 1,500	1,500	1,500

¹Resources at the Golden Hill deposit were calculated at $1,800/oz

Detailed year-over-year reserve and resource variances are available in Appendix A, with further insights below:
- For Boungou, P&P reserves decreased from 9.9Mt at 3.51 g/t containing 1.11Moz to 8.9Mt at 2.91 g/t containing 0.83Moz primarily due to mined depletion, remodelling of the resource pit shell based on additional drilling results and higher input costs, as well as updated geological interpretations, which was partially offset by an increase in the reserve gold price assumption from $1,300/oz to $1,500/oz. M&I resources decreased from 11.1Mt at 3.85g/t containing 1.38Moz to 8.6Mt at 3.59 g/t containing 0.99Moz due to mine depletion and remodelling of the resource pit shell incorporating higher cost assumptions as well as updated geological interpretations.
- For Houndé, P&P reserves increased from 47.0Mt at 1.66 g/t containing 2.51Moz to 54.0Mt at 1.57 g/t containing 2.73Moz mainly due to the addition of the Mambo and Kari South deposits into reserves, and a change in the block size in the updated block model at the Kari Centre deposit to better reflect the mining block size. M&I resources decreased from 103.9Mt at 1.55 g/t containing 5.17Moz to 93.4Mt at 1.56 g/t containing 4.68Moz mainly due to mine depletion and an updated resource pit shell at Kari Center-Gap-South incorporating higher cost assumptions, which were slightly offset by the addition of new resources at Vindaloo South East.
- For Ity, P&P reserves increased from 63.0Mt at 1.47 g/t containing 2.98Moz to 57.9Mt at 1.62 g/t containing 3.02Moz, primarily due to the addition of the new discoveries that demonstrated the continuity of the mineralised system at Ity and led to a model update and re-optimisation of the pit shell design, in addition to the inclusion of maiden reserves at Verse-Est, Bakatouo Northwest and Yopleau, which was partially offset by mined depletion during the year. M&I resources increased from 89.5Mt at 1.56 g/t containing 4.48Moz to 96.9Mt at 1.59 g/t containing 4.97Moz due to the addition of the recently discovered resources at Verse East and Bakatouo Northwest, and updated resources based on additional drilling at Mount Ity, Walter, West Floutouo and Yopleau, which was partially offset by mine depletion.
- For Mana, P&P reserves decreased from 11.5Mt at 3.14 g/t containing 1.16Moz to 8.3Mt at 3.19 g/t containing 0.85Moz, mainly due to mine depletion as well as updates to the underground mine model, which reflect changes to the underground mining method at Wona and Siou underground. M&I resources decreased from 37.6Mt at 1.89 g/t containing 2.29Moz to 34.0Mt at 1.99 g/t containing 2.18Moz due to mining depletion, which was partially offset by the addition of resources at the Maoula East deposit.
- For Sabodala-Massawa, P&P reserves decreased from 66.4Mt at 2.08 g/t containing 4.44Moz to 62.8Mt at 2.02 g/t containing 4.09Moz largely due to depletion and a slight increase in cut-off grades to reflect higher costs, which was partially offset by the addition of the Bambarya and Sofia North deposits into the reserve model. M&I resources decreased from 110.1Mt at 1.94 g/t containing 6.88Moz to 106.1Mt at 1.86 g/t containing 6.33Moz due to mine depletion.
- For Wahgnion, P&P reserves decreased from 21.6Mt at 1.52 g/t containing 1.06Moz to 14.0Mt at 1.59 g/t containing 0.72Moz due to depletion and remodelling of the Nogbele and Fourkoura pits incorporating additional grade control drilling, more representative dilution factors and higher cost assumptions, which was partially offset by an increase in the reserve gold price assumption from $1,300/oz to $1,500/oz. M&I resources decreased from 40.7Mt at 1.48g/t containing 1.94Moz to 18.4Mt at 1.70 g/t containing 1.00Moz due to mining depletion and updated resource pit shells at Nogbele and Fourkoura, incorporating additional drilling and higher cost assumptions.

CONFERENCE CALL AND LIVE WEBCAST

Management will host a webcast and conference call on Thursday 9 March, at 8:30 am EST / 1:30 pm GMT to discuss the Company's financial results.

The webcast is scheduled at:
5:30am in Vancouver
8:30am in Toronto and New York
1:30pm in London
9:30pm in Hong Kong and Perth

The webcast can be accessed through the following link:
https://edge.media-server.com/mmc/p/gt6dtnw2

Click here to add a webcast reminder to your Outlook Calendar.

Analysts and investors are also invited to participate and ask questions by registering for the conference call dial-in via the following link:
https://register.vevent.com/register/BIa6806651c0cb4b24846906c6a40345b1

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

QUALIFIED PERSONS

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

CONTACT INFORMATION

For Investor Relations enquiries:	For Media enquiries:
Martino De Ciccio	Brunswick Group LLP in London
Deputy CFO & Head of Investor Relations	Carole Cable, Partner
+442030112706	+447974982458
investor@endeavourmining.com	ccable@brunswickgroup.com

ABOUT ENDEAVOUR MINING CORPORATION

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

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

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

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This document contains "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact, are “forward-looking statements”, including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, the success of exploration activities, the expectation that an exploration permit will be received, the anticipated timing for the payment of a shareholder dividend and statements with respect to future dividends payable to the Company’s shareholders, the completion of studies, mine life and any potential extensions, the future price of gold and the share buyback programme. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates", believes”, “plan”, “target”, “opportunities”, “objective”, “assume”, “intention”, “goal”, “continue”, “estimate”, “potential”, “strategy”, “future”, “aim”, “may”, “will”, “can”, “could”, “would” and similar expressions .

Forward-looking statements, while based on management's reasonable estimates, projections and assumptions at the date the statements are made, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions or completion of divestitures; risks related to international operations; risks related to general economic conditions and the impact of credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; Endeavour’s financial results, cash flows and future prospects being consistent with Endeavour expectations in amounts sufficient to permit sustained dividend payments; the completion of studies on the timelines currently expected, and the results of those studies being consistent with Endeavour’s current expectations; actual results of current exploration activities; production and cost of sales forecasts for Endeavour meeting expectations; unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates; increases in market prices of mining consumables; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; extreme weather events, natural disasters, supply disruptions, power disruptions, accidents, pit wall slides, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities; changes in national and local government legislation, regulation of mining operations, tax rules and regulations and changes in the administration of laws, policies and practices in the jurisdictions in which Endeavour operates; disputes, litigation, regulatory proceedings and audits; adverse political and economic developments in countries in which Endeavour operates, including but not limited to acts of war, terrorism, sabotage, civil disturbances, non-renewal of key licenses by government authorities, or the expropriation or nationalisation of any of Endeavour’s property; risks associated with illegal and artisanal mining; environmental hazards; and risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic.

Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour's most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.

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

NON-GAAP MEASURES

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

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

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Endeavour Reports Strong FY-2022 Results