OPERATIONAL AND FINANCIAL HIGHLIGHTS

Q3-2021 production of 382koz at an AISC of $904/oz; YTD production of 1,138koz at an AISC of $875/oz
Group is well positioned to beat FY-2021 production guidance of 1,365-1,495koz at AISC within $850-900/oz guidance
Adjusted Net Earnings of $153m or $0.61/share in Q3-2021; $429m or $1.81/share year to date
Operating Cash Flow before working capital of $326m or $1.30/share in Q3-2021; $875m or $3.69/share year to date
Healthy balance sheet at quarter-end with Net Debt of $70m, despite having returned $105m to shareholders, and Net Debt to adjusted EBITDA leverage ratio of 0.05x
SHAREHOLDER RETURNS PROGRAMME


Payment of H1-2021 interim dividend of $70m on 28 September 2021; well positioned to deliver more than the minimum committed dividend of $125m for the full year
Share buybacks continue to supplement shareholder returns with a total of $94m of shares repurchased since April 2021, $35m of which were repurchased in Q3-2021
ORGANIC GROWTH

Construction of Sabodala-Massawa Phase 1 expansion on schedule for completion by year-end; DFS underway for Sabodala-Massawa Phase 2 expansion, Fetekro and Kalana projects
Group on track to discover over 2.5Moz of Indicated resources in 2021 with resource updates expected to be published in in Q4-2021; Group is targeting to discover 15-20Moz of Indicated resources over next 5 years
London, 11 November 2021– Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) ('Endeavour' or the 'Group' or the 'Company') is pleased to announce its operating and financial results for Q3-2021, with highlights provided in Table 1 below. Management will host a conference call and webcast on Thursday 11 November, at 8:30 am ET / 1:30 pm GMT. For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release.

Table 1: Consolidated Highlights1

All amounts in US$ million, unless otherwise stated THREE MONTHS ENDED NINE MONTHS ENDED
30 September 2021 30 June 2021 30 September 2020 30 September 2021 30 September 2020 ? YTD-2021 vs. YTD-2020

OPERATING DATA
Gold Production, koz 382 409 244 1,138 565 +101%
All-in Sustaining Cost2, $/oz 904 853 906 875 911 (4)%
Realised Gold Price, $/oz 1,763 1,791 1,841 1,769 1,714 +3%
CASH FLOW FROM CONTINUING OPERATIONS3
Operating Cash Flow before Changes in WC 326 286 195 875 366 +139%
Operating Cash Flow before Changes in WC2, $/sh 1.30 1.13 1.20 3.69 2.85 +29%
Operating Cash Flow 312 300 182 819 335 +144%
Operating Cash Flow2, $/sh 1.25 1.19 1.12 3.46 2.61 +33%
PROFITABILITY FROM CONTINUING OPERATIONS3
Net Earnings Attributable to Shareholders2 114 127 52 327 30 +990%
Net Earnings per Share, $/sh 0.45 0.50 0.32 1.38 0.24 +475%
Adjusted Net Earnings Attributable to Shareholders2 153 183 81 429 154 +179%
Adjusted Net Earnings per Share2, $/sh 0.61 0.73 0.49 1.81 1.20 +51%
EBITDA2 344 363 203 1,041 327 +218%
Adjusted EBITDA2 370 400 225 1,076 432 +149%
SHAREHOLDER RETURNS
Shareholder dividends paid 70 — — 130 — n.a.
Share buyback (commenced in Q2-2021) 35 59 — 94 — n.a.
FINANCIAL POSITION HIGHLIGHTS
Net Debt/(
Net Cash)2 70 77 175 70 175 (60)%
Net (Cash)/Debt / Adjusted EBITDA (LTM) ratio2,4 0.05 0.07 0.29 0.05 0.29 (83)%
1All amounts include Teranga assets from 10 February 2021 and SEMAFO assets from 1 July 2020. 2This is a non-GAAP measure. Refer to the non-GAAP measure section of the Management Report. 3From Continuing Operations excludes the Agbaou mine which was divested on 1 March 2021. 4LTM means last twelve months.
Sebastien de Montessus, President and CEO, commented: “Following a strong third quarter performance, we are on track to achieve a record year. We are now well positioned to beat the top end of our 1.5Moz full year production guidance at an AISC within the guided range.
Given this strong performance we expect to generate well in excess of $1 billion in operating cash flow for the full year, which has already significantly improved our balance sheet strength and bolstered our ability to reward shareholders.

Having already returned $224 million in dividends and share buybacks this year, and considering our near zero Net Debt to adjusted EBITDA leverage ratio, we expect to continue to supplement our shareholder return programme with further share buybacks and deliver more than the guided minimum dividend of $125 million for the full year.

Our growth pipeline continues to develop with the Sabodala-Massawa phase 1 expansion on track for completion in Q4-2021. Additionally, our Definitive Feasibility Studies are progressing well for the Sabodala-Massawa Phase 2 expansion, the Fetekro and Kalana projects.

We continue to demonstrate exploration success, with the Group on track to delineate over 2.5 million ounces of Indicated resources in 2021, significantly more than the expected annual depletion. Looking forward, we expect to unlock significant additional value by delivering on our recently published 5-year exploration strategy targeting the discovery of 15 to 20 million ounces of Indicated resources.

Following our successful listing on the premium-segment of the London Stock Exchange in June, we were pleased to enter the FTSE indexes in September which positions us well to attract a wider investor pool.

There is strong momentum across our business and we look forward to continuing to drive our strategy forward.”

ON TRACK TO BEAT FY-2021 PRODUCTION GUIDANCE

Strong year to date production of 1,138koz at an AISC of $875/oz positions the Group well to beat the top end of its FY-2021 production guidance of 1,365-1,495koz at an AISC within its guidance of $850-900/oz.
Group outperformance is led by the Houndé, Ity, Sabodala-Massawa and Mana mines where full year production is expected to be near or above the top end of their respective guidances, while the other mines are tracking within guidance. In addition, the Company is benefiting from the successful rapid integration of the Teranga Gold assets and associated synergies.
Table 2: YTD-2021 Performance vs. FY-2021 Guidance

YTD-2021 2021 FULL YEAR GUIDANCE
Production, koz 1,138 1,365 — 1,495
AISC, $/oz 875 850 — 900
UPCOMING CATALYSTS

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

Table 3: Key Upcoming Catalysts

TIMING CATALYST
Q4-2021 Exploration Resource updates at Sabodala-Massawa, Houndé, Ity and Fetekro
Q4-2021 Sabodala-Massawa Completion of Phase 1 plant upgrades
Q1-2022 Sabodala-Massawa Completion of Definitive Feasibility Study for Phase 2
Q1-2022 Fetekro Completion of Definitive Feasibility Study
Q1-2022 Shareholder Returns H2-2021 dividend
Q1-2022 Kalana Completion of Definitive Feasibility Study
SHAREHOLDER RETURNS PROGRAMME

As disclosed on 7 June 2021, Endeavour has implemented a shareholder returns programme that is composed of a minimum progressive dividend that may be supplemented with additional dividends and buybacks, provided the prevailing gold price remains above $1,500/oz and that Endeavour’s leverage remains below 0.5x Net Debt / adjusted EBITDA.
Endeavour paid its previously announced H1-2021 interim dividend of $70 million on 28 September 2021, highlighting its strong commitment to paying supplemental shareholder returns.
Shareholder returns have also been supplemented through the Company’s share buyback programme. A total of $94 million or 4.15 million of shares have been repurchased since the start of the buyback programme on 9 April 2021, of which $35 million or 1.48 million shares were repurchased in Q3-2021.
FTSE RUSSELL INDEXATION

Following the completion of Endeavour’s premium listing on the London Stock Exchange (“LSE”) on 14 June 2021, positioning the Company as the largest pure-play gold producer listed on the premium segment of the LSE, Endeavour was assigned UK nationality status on 9 August 2021 by the FTSE Russell group for indexation purposes.
Subsequent to the successful nationality and liquidity review period, Endeavour was included in the FTSE All Share, FTSE 250, FTSE 350 and FTSE 350 Lower Yield indexes as part of the FTSE Q3-2021 rebalancing, which became effective on 20 September 2021.
CASH FLOW AND LIQUIDITY SUMMARY

The table below presents the cash flow and Net Debt position for Endeavour for the three and nine month period ending 30 September 2021, with accompanying notes below.

Table 4: Cash Flow and Net Debt Position
THREE MONTHS ENDED NINE MONTHS ENDED
In US$ million unless otherwise specified 30 September 2021 30 June,
2021 30 September 2020 30 September 2021 30 September 2020
Net cash from (used in), as per cash flow statement:
Operating cash flows before changes in working capital from continuing operations 326 286 195 875 366
Changes in working capital (14) 15 (13) (56) (30)
Cash generated from/(used by) discontinued operations — — 19 (9) 49
Cash generated from operating activities [1] 312 300 201 810 385
Cash (used in)/generated from investing activities [2] (137) (137) 42 (379) (64)
Cash (used in)/generated from financing activities [3] (233) (192) (74) (360) 10
Effect of exchange rate changes on cash (15) (7) 3 (25) 3
(DECREASE)/INCREASE IN CASH (73) (35) 172 46 333
Cash position at beginning of period 833 868 352 715 190
CASH POSITION AT END OF PERIOD [4] 760 833 523 760 523
Equipment financing — — (58) — (58)
Convertible senior bond (330) (330) (330) (330) (330)
Drawn portion of corporate loan facility [5] (500) (580) (310) (500) (310)
NET DEBT POSITION [6] 70 77 175 70 175
Net Debt / Adjusted EBITDA (LTM) ratio1 [7] 0.05 x 0.07 x 0.29 x 0.05 x 0.29 x
1Net Debt and Adjusted EBITDA are Non-GAAP measures. Refer to the non-GAAP measure section of the Management Report.

NOTES:

1) Operating cash flows increased by $11.4 million from $300.5 million (or $1.19 per share) in Q2-2021 to $311.9 million (or $1.25 per share) in Q3-2021 mainly due to less income taxes paid and less foreign exchange losses incurred, which was offset slightly by lower gold sales at a lower realised gold price and a decrease in working capital. Operating cash flow before working capital increased by $40.2 million from $285.7 million (or $1.13 per share) in Q2-2021 to $325.9 million (or $1.30 per share) in Q3-2021. Notable variances are summarised below:

Income taxes paid decreased by $51.0 million over Q2-2021 to $55.5 million in Q3-2021, as higher income taxes paid in Q2-2021 were reflective of the timing of provisional payments for 2021 based on full year 2020 earnings and the tax payments upon filing of the 2020 tax returns.
Gold sales decreased by 28koz over Q2-2021 to 392koz in Q3-2021 due to lower ounces produced and sold at the Ity, Wahgnion and Karma mines. The realised gold price for Q3-2021 was $1,763/oz compared to $1,791/oz for Q2-2021. Total cash cost per ounce increased from $729/oz in Q2-2021 to $743/oz in Q3-2021 due to higher costs at the Ity, Mana, Wahgnion and Karma mines.
Working capital decreased by $14.0 million in Q3-2021 mainly due to a decrease in accounts payable at Boungou, Ity and Mana, which was partially offset by a decrease in inventories resulting from the unwinding of the fair value adjustment to stockpiles at the Sabodala-Massawa and Wahgnion mines recognised upon acquisition. There was also a decrease in inventory stockpiles and finished good balances at Houndé, Ity, Sabodala-Massawa and Wahgnion.
Acquisition and restructuring costs decreased by $12.7 million to $1.8 million in Q3-2021 from $14.5 million in Q2-2021, related to the Teranga acquisition and integration as well as restructuring costs
2) Cash flows used by investing activities of $136.8 million in Q3-2021 remained consistent with the prior quarter. Sustaining and growth capital expenditures increased while non-sustaining capital expenditure decreased slightly, as described below:

Sustaining capital from continuing operations increased by $13.0 million from $41.5 million in Q2-2021 to $54.5 million in Q3-2021 due to higher sustaining capital at Houndé, Sabodala-Massawa and Wahgnion primarily due to planned waste capitalisation.
Non-sustaining capital from continuing operations decreased from $58.3 million in Q2-2021 to $41.5 million in Q3-2021, due to decreases at Houndé, Ity, Karma, Mana and Wahgnion mainly due to a reduction in TSF raise construction and reduced pre-stripping activities, which were partially offset by increases at Boungou due to pre-stripping and at Sabodala-Massawa due to relocation activities and infrastructure developments.
Growth capital spend decreased by $1.7 million from Q2-2021 to $10.9 million in Q3-2021 and primarily relates to the Sabodala-Massawa Phase 1 expansion with the remainder for ongoing Definitive Feasibility Studies (“DFS”) studies
3) Cash flows used by financing activities increased by $41.1 million from $191.8 million in Q2-2021 to $232.9 million in Q3-2021, mainly due to minority and shareholder dividends paid of $99.8 million, and higher interest payments of $12.6 million, offset by a lower net repayment of long-term debt of $80.0 million than the previous quarter and a lower amount paid towards the buyback of the Company’s own shares of $34.6 million for the quarter.

4) At quarter-end, Endeavour’s liquidity remained strong with $760.4 million of cash on hand and $300.0 million undrawn of the revolving credit facility.

5) Endeavour's corporate loan facilities were increased from $430.0 million to $800.0 million in Q1-2021 to retire Teranga’s various higher cost debt facilities. In Q3-2021, $80.0 million was repaid on the facility with $500.0 million drawn on the facility at quarter-end. Following the quarter-end, Endeavour restructured its debt, as described in the below “Debt Refinancing Activity” section.

6) Net Debt amounted to $69.6 million at quarter-end, a decrease of $7.5 million during the quarter despite shareholder dividend payments of $70.0 million and $34.6 million of shares repurchased. Net Debt increased by $144.3 million compared to the beginning of the year as approximately $332.0 million of Net Debt was absorbed from Teranga in Q1-2021.

7) The Net Debt / Adjusted EBITDA (LTM) leverage ratio ended the quarter at a healthy 0.05x, down from 0.07x in Q2-2021, and 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. The ratio has improved by 83% from the corresponding period last year when the ratio stood at 0.29x.

DEBT REFINANCING ACTIVITY

On 14 October 2021, the Company completed an offering of $500.0 million fixed rate senior notes (the "Notes") due in 2026 with a 5.00% annual coupon paid semi-annually. The Company also entered into a new $500.0 million unsecured RCF agreement due in 2025 with an interest rate between 2.40 - 3.40% plus LIBOR depending on leverage (the "New RCF") with a syndicate of international banks. The proceeds of the Notes, together with the Group’s available cash, were used to repay all amounts outstanding under the Company's existing loan facilities and to pay fees and expenses in connection with the offering of the Notes. The New RCF will replace the bridge facility and existing RCF, which was cancelled upon completion of the Notes offering.
The New RCF and Notes will extend the maturities of the Company’s existing debt structure, while providing enhanced financial flexibility and ample liquidity headroom.
As part of the bond issuance process, Endeavour received issuer and bond ratings from S&P and Fitch of BB- stable and BB stable, respectively.
EARNINGS FROM CONTINUING OPERATIONS

The table below presents the earnings and adjusted earnings for Endeavour for the three and nine month period ending 30 September 2021, with accompanying notes below.

Table 5: Earnings from Continuing Operations

THREE MONTHS ENDED NINE MONTHS ENDED
30 September
2021 30 June
2021 30 September
2020 30 September
2021 30 September
2020
Revenue [8] 692 753 435 2,081 871
Operating expenses [9] (257) (278) (166) (789) (346)
Depreciation and depletion [9] (157) (158) (115) (447) (194)
Royalties [10] (43) (44) (30) (131) (60)
Earnings from mine operations 235 273 123 715 271
Corporate costs [11] (12) (16) (5) (42) (15)
Acquisition and restructuring costs [12] (2) (15) (19) (29) (26)
Share-based compensation (7) (10) (7) (25) (14)
Exploration costs (3) (6) (1) (19) (4)
Earnings from operations 211 227 91 600 212
(Loss)/gain on financial instruments [13] (20) (15) (26) 7 (101)
Finance costs (15) (14) (12) (41) (36)
Other (expense)/income (3) (7) 23 (14) 23
Earnings before taxes 173 191 75 553 98
Current income tax expense [14] (40) (44) (53) (157) (72)
Deferred income tax (expense)/recovery — 2 41 (4) 34
Net comprehensive earnings/(loss) from continuing operations [15] 133 149 64 392 61
Add-back adjustments [16] 41 59 24 112 120
Adjusted net earnings from continuing operations [17] 174 208 87 505 181
Portion attributable to non-controlling interests 21 25 7 75 27
Adjusted net earnings from continuing operations attributable to shareholders of the Company [17] 153 183 81 429 154
Earnings/(loss) per share from continuing operations 0.45 0.50 0.32 1.38 0.24
Adjusted net earnings per share from continuing operations 0.61 0.73 0.49 1.81 1.20
NOTES:

8) Revenue decreased by $61.7 million in Q3-2021 over Q2-2021 mainly due to lower gold sales at Ity, Karma and Wahgnion, together with a lower realised gold price for Q3-2021 of $1,763/oz compared to $1,791/oz for Q2-2021.

9) Operating expenses and depreciation and depletion decreased for Q3-2021 compared to Q2-2021 due to decreased levels of production at the Houndé, Ity, Karma and Wahgnion mines as well as due to a decrease in the value of the depreciation of inventory associated with the fair value adjustment on purchase price allocation of Teranga and Semafo.

10) Royalties remained flat in Q3-2021 at $42.5 million.

11) Corporate costs were $12.0 million for Q3-2021 compared to $15.9 million for Q2-2021. The decrease in corporate costs are primarily due to decreased costs associated with listing on the LSE incurred during Q2-2021.

12) Acquisition and restructuring costs were $1.8 million in Q3-2021 compared to $14.5 million in Q2-2021. Costs decreased in Q3-2021 compared to the prior period due to the completion of several integration projects in Q2-2021, after the acquisition of Teranga on 10 February 2021.

13) The loss on financial instruments was $20.0 million in Q3-2021 compared to a loss of $14.8 million in Q2-2021. The loss in Q3-2021 is mainly due to foreign exchange losses of $23.3 million that were offset slightly by a realized gain on forward contracts of $5.0 million and a gain on other financial instruments of $2.7 million. The loss in Q2-2021 was mainly due to the net impact of a loss on change in fair value of the warrant liabilities and call rights of $5.3 million and $7.0 million respectively, and foreign exchange losses of $7.2 million.

14) Current income tax expense was $40.4 million in Q3-2021 compared to $44.5 million in Q2-2021. Current income tax expense for Q3-2021 decreased slightly compared to Q2-2021 due to lower earnings before taxes as a result of lower ounces sold in Q3-2021 compared to Q2-2021.

14) Net comprehensive earnings were $132.5 million for Q3-2021 compared to $148.9 million in Q2-2021. The decrease in earnings was related to lower earnings from mine operations due lower gold sales at Ity, Karma and Wahgnion, together with a lower realised gold price for Q3-2021 of $1,763/oz compared to $1,791/oz for Q2-2021.

16) For Q3-2021, adjustments mainly included a loss on financial instruments of $20.0 million, share based compensation of $7.3 million, non-cash expense of inventory associated with the fair value adjustment on purchase price allocation of Teranga of $8.6 million, acquisition and restructuring costs of $1.8 million, deferred income tax expense of $0.2 million and other non-recurring expenses of $3.4 million. In Q2-2021, adjustments were primarily made up of a loss on financial instruments of $14.8 million, share based compensation of $9.8 million, non-cash expense of inventory associated with the fair value adjustment on purchase price allocation of SEMAFO and Teranga of $15.3 million, acquisition and restructuring costs of $14.5 million, deferred income tax recoveries of $2.2 million and other non-recurring expenses of $7.1 million.

17) Adjusted net earnings attributable to shareholders for continuing operations were $153.0 million (or $0.61 per share) in Q3-2021 compared to $183.1 million (or $0.73 per share) in Q2-2021.

OPERATIONS REVIEW SUMMARY

Continued strong safety record for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) of 0.21 for the trailing twelve months ending 30 September 2021.
The acquisition of Teranga Gold was completed on 10 February 2021 and the Sabodala-Massawa and Wahgnion assets have been consolidated into the financial statements from this date. The sale of Endeavour's non-core Agbaou mine closed on
1 March 2021, and has been classified as a discontinued operation.
A better than expected performance was achieved in Q3-2021 due to outperformance notably at the Houndé and Sabodala-Massawa mines. Production decreased by 7% in Q3-2021 over Q2-2021 to 382koz mainly due to the rainy season, while AISC increased by $50/oz to $904/oz due to the rainy season and scheduled higher sustaining capital spend.
Production increased by 57% in Q3-2021 over Q3-2020, due to the full benefit of consolidated production from Sabodala-Massawa and Wahgnion and the strong operational performance notably at Ity, Houndé and Boungou, while Group AISC remained fairly flat.

Table 6: Consolidated Group Production. see & read more on
https://www.endeavourmining.com/media/news/endeavour-reports-strong-q3-2021-results-well-positioned-beat-full-year-production