Endeavour Mining : Annual Report 2023

Endeavour Mining is one of the world's leading gold producers and the largest in West Africa.

We are committed to responsible mining and delivering sustainable value to our employees, stakeholders and the communities in which we operate.

Overview

Governance

Financial statements

• 01 2023 in review

  • 110 Chair's introduction to Governance

    176 Independent auditors' report

• 02 Our purpose

  • 114 Our Board

    185 Consolidated financial statements

• 03 Our values in action

  • 116 Our Executive Management Team

• 04 At a glance

• 118 Our Governance framework

  189 Notes to the consolidated financial statements

  Strategic report

• 121 Board leadership and Company purpose

  243 Company financial statements

  245 Notes to the financial statements

• 124 Stakeholder engagement

  06 Chair's statement

• 126 Division of responsibilities

  Additional information

  • 10 Chief Executive's statement

  • 14 Our business model

• 128 Corporate Governance and Nominating Committee report

  248 Detailed reserves and resources

  • 16 Market overview

• 134 Audit Committee report

  • 20 Strategic progress

  • 26 Key performance indicators

• 149 Technical, Health and Safety committee

  254 Cautionary note on forward-looking statements

  255 Glossary

  • 30 Our sustainability approach

  • 38 How we make decisions

• 150 Environmental, Social and Governance committee

  256 Definitions

  • 43 S172 statement

• 151 Directors' Remuneration report

  • 46 Chief Operating Officer's statement

• 156 Remuneration at a glance

  • 50 Operating review

• 158 Annual report on remuneration

  • 60 Chief Financial Officer's statement

• 168 Directors' report

  • 62 Financial review

• 174 Directors' responsibility statement

• 72 Risk management and principal risks

• 86 Task Force on Climate-related

• Financial Disclosures Report 2023

• 104 Viability statement

• 106 Non-financial information statement

endeavourmining.comEndeavour Mining

@endeavourmining Endeavour Mining

Chief Executive's statement

Our business model

Operating review

2023 in review

The year we delivered a strong production performance from our core assets, while making excellent progress at our two organic growth projects Lafigué and Sabodala-Massawa BIOX®, promising resource updates at Tanda-Iguela and continued ESG excellence highlighted by our top-ranked gold producer status in the Sustainalytics rankings.

$967

AISC/oz

First quartile industry leader.

$266

Shareholder returns, $m

$200 million in dividends and $66 million in share buybacks returned to shareholders.

4.5

Indicated resource at Tanda-Iguela, Moz

Marks a 303% increase over the maiden Indicated resource estimate published in late 2022.

$2.3

Economic contribution, $b

$267 million in direct taxes, $134 million in royalties and $74 million other taxes paid.

$448

Growth spend incurred, $m

Underlining significant progress at Lafigué and Sabodala-Massawa.

Our purpose

Our purpose is to produce gold that provides lasting value to society. As one of the largest producers of the metal, our starting point is protecting and promoting the people and places where our gold comes from.

Our work is a partnership, helping to create resilient and self-sustaining communities, where people are equipped with the skills, knowledge and expertise needed to prosper.

We are trusted to unlock the full benefits of the material we mine from discovery to production for all our stakeholders.

Our values in action

Partners

Guided by shared goals, we build strong, respectful relationships with all stakeholders, including contractors, suppliers, local communities, and host governments. We believe in open communication and mutual transparency as the foundation for achieving positive outcomes together.

Performers

We are passionate performers dedicated to consistently delivering results. Through continuous improvement and unwavering commitment, we strive to exceed expectations and deliver on our promises to all stakeholders.

Pioneers

At Endeavour, we foster a culture of cross-team collaboration and knowledge sharing, allowing our teams to think outside the box to drive business growth. We empower our teams to constantly seek improvement, innovate, and develop pioneering solutions to propel our business forward.

Proactive

We believe in individual initiative and collective ownership. Everyone at Endeavour is empowered to contribute their expertise, and drive our shared success.

Promoting the ethical sourcing of gold

See pages 8-9

Making a top discovery in West Africa

See pages 12-13

Investing in Solar energy in West Africa

See pages 50-51

Preparing our new Lafigué mine for early start

See page 58-59

Mines

Development Projects

Advanced Exploration

Birimiam Greenstone Belt

At a glance

Endeavour has an unmatched competitive advantage as the leading gold producer in West Africa, the world's largest gold producing region.

Endeavour is listed on the London and Toronto Stock Exchanges, under the symbol EDV.

Endeavour has strategically positioned itself as a leading global gold producer having built a high-quality portfolio of low-cost, long-life assets while maintaining a strong social licence to operate, which underpins an attractive shareholder returns programme.

As a member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering sustainable value to its employees, host countries and host community stakeholders where it operates.

Endeavour has a diversified portfolio across West Africa, with operating assets located in Senegal, Côte d'Ivoire and Burkina Faso, and a strong portfolio of advanced development projects and exploration assets on the highly prospective Birimian Greenstone Belt.

Sabodala-Massawa:

The Sabodala-Massawa mine, acquired in February 2021, is one of Endeavour's cornerstone assets.

The mine is currently undergoing an expansion to add a BIOX®circuit to process the large refractory ore resource on site. Once complete, the mine will be positioned to target more than 400koz/year production at an industry-leading All In Sustaining Cost ("AISC"), elevating it to top-tier status.

Ity:

The Ity mine, acquired in 2015 and now one of Endeavour's cornerstone assets, has produced more than 3.1Moz since first gold production in 1991. The mine is able to sustain production above 250koz/year over a +10-year life of mine ("LoM") at an industry-leading AISC.

Several optimisation initiatives are underway, including the Mineral Sizer project, while near-mine exploration continues to delineate high-grade resources to further extend mine life.

Ownership 90% Endeavour 10% Govt of Senegal

1,243 Employees

48% Nationals

47% Locals 9% Women

$2.2 million

Total Social InvestmentOwnership

85% Endeavour, 10% Govt of Côte d'Ivoire, 5% SODEMI

743 Employees

53% Nationals

42% Locals 13% Women

$3.6 million

Total Social Investment

Houndé:

The Houndé mine was built by Endeavour and is one of Endeavour's cornerstone assets. The mine is targetting production above 250koz/year over a +10-year LoM at an industry-leading AISC.

Endeavour is focused on delineating additional high-grade resources through near-mine exploration both at the surface and underground, and expanding satellite resources at deposits such as Golden Hill and Mambo to continue to extend mine life.

Mana:

Mana was acquired by Endeavour in July 2020 and has produced more than 2.3Moz of gold since first gold pour. 2023 was a transition year for the mine as mining operations began to focus predominantly on the underground resource across Wona and Siou. The focus since acquisition has been on increasing the mine life beyond 10 years, through the expansion of the underground deposits and evaluation of satellite open pit targets.

Ownership 90% Endeavour

10% Govt of Burkina Faso

1,271 Employees

68% Nationals

29% Locals 10% Women

$6.1 million

Total Social Investment

Ownership 90% Endeavour

10% Govt of Burkina Faso

529 Employees

63% Nationals

32% Locals 6% Women

$2.9 million

Total Social Investment

Chair's statement

Dear Shareholders,

It is my privilege to address you once again as we reflect on another impactful year at Endeavour. First,

I would like to thank all of our employees and partners for their unwavering dedication, efforts and support during a successful year in which the Company delivered against all of its key objectives. I look forward to the remainder of 2024 and beyond, with Ian Cockerill as our new CEO, building on Endeavour's operational momentum to drive us forward.

It has been pleasing to see the strength and depth of management as they successfully navigate simultaneous growth projects, with the Sabodala-Massawa expansion project on schedule and on budget and the Lafigué development project on budget, and ahead of schedule, with first gold now expected in Q2-2024.

Before I go into the positive developments at Endeavour Mining in 2023, I want to address upfront the leadership change that occurred in the first week of 2024. The termination of the contract of our President and Chief Executive Officer, Sébastien de Montessus, for serious misconduct, was a difficult but absolutely necessary decision for the Board to have taken. Integrity serves as the cornerstone of our corporate governance, fostering trust among stakeholders and ensuring sustainable success in the long-term.

I am proud to report that, in dealing with these developments, our Board of Directors has demonstrated unwavering integrity in every decision and action taken. Their leadership sets the tone for the entire Company and will serve as the basis for trust and reliability.

The immediate appointment of Ian Cockerill, a highly experienced mining leader and operator, as permanent CEOserves to demonstrate the effectiveness of our succession planning. Under Ian's leadership, we will improve on the operational momentum that has seen us perform so well in recent years.

The Audit Committee report on page 134 contains further details of the investigation that led to the former CEO's contract being terminated. In the days following Sébastien's departure, during our engagement with key stakeholders, we indicated that we would move swiftly, yet robustly, to conclude the investigation. This has happened and I am pleased to report that no adjustments to our historic financial information have been required and BDO has provided an unmodified opinion on the 2023 financial statements.

The Audit Committee Chair and I plan to undertake further engagement ahead of our AGM with key stakeholders, to

assure them and respond to any questions they may have. With renewed confidence and catalysts for the upside, we look forward to continued strong operational performance in 2024.

Robust operational performance underpins ongoing commitment to shareholder returns

On the operational front, strong performance has ensured we met production guidance for the 11th consecutive year, while the Company also preserved its status as one of the lowest-cost gold producers in the sector.

While investments into our high-return organic growth projects accelerated, we were pleased to continue to offer attractive shareholder returns, delivering $266 million to shareholders in the form of dividends and share buybacks, in a year that was impacted by a challenging macro-environment.

In November 2023, the Board visited Endeavour's Lafigué project in Côte d'Ivoire which is set to become the Company's next cornerstone asset due to pour gold this year. Our tour of the site gave a deeper understanding of the project's potential, the effort involved, and the considerable progress already made as the project advances towards completion, ahead of schedule, with costs in line with expectations. This comprehensive visit not only showcased the hard work and dedication of the Lafigué project team but also reinforced the Board's understanding of the

The Board remains focused on supporting further returns to shareholders in 2024, while maintaining a disciplined approach to capital allocation, governed by the metrics that have been set for management.

Growth projects support socio-economic development

Company's operations, sustainability initiatives and the collaborative spirit that drives our success.

During our tour, the Board had the opportunity to meet with beneficiaries of the literacy programme which Endeavour launched in partnership with the Ivorian Ministry of Education and Literacy in June 2022. The programme aims to provide vocational training to 150 young people, literacy skills to 500 people as well as build capacity for 50 local companies in the Hambol region of Côte d'Ivoire.

We also provided education and vocational training programmes which provide members of our host communities with a toolbox to fight against unemployment and contribute to the socio-economic development of Côte d'Ivoire and the other countries in which we operate.

In addition, it has been pleasing to see the strength and depth of management as they successfully navigate simultaneous growth projects, with the Sabodala-Massawa expansion project on schedule and on budget and the Lafigué development project on budget, and ahead of schedule, with first gold now expected in Q2-2024, rather than Q3-2024.

Responsible gold mining

One of the most important ways we contribute to the development of the national economies of our host countries is through the transparent payment of our fair share of taxes and royalties, prioritising local employment, in-country and regional procurement, and investing in community development projects.

Chair's statement continued

In 2023 Endeavour's total economic contribution to our host countries was $2.3 billion, of which $659.1 million was paid to host governments in the form taxes, royalties, and dividends, while $228.7 million was paid in employee wages, salaries, and benefits, including payroll taxes.

A further $1.6 billion was spent on in-country procurement and $4.0 million was dedicated to community investments and donations for continuing operations, such as the ongoing literacy programme in the local communities around our Lafigué site.

Endeavour also reached a significant milestone regarding the World Gold Council's ("WGC") Responsible Gold Mining Principles ("RGMPs"). We received external assurance for compliance with the RGMPs for the mines which we acquired from SEMAFO and Teranga, Mana and Sabodala-Massawa respectively.

The RGMP framework outlines clear expectations for consumers, investors and the downstream gold supply chain as to what constitutes responsible gold mining. The Group is now fully RGMP compliant in line with the WGC timelines.

Ethical sourcing

Strengthening our Board

During 2023, the Board made a number of changes to underscore our commitment to pursuing the highest standards of corporate governance, while ensuring we continue to deliver strong operational and financial performance that underpins our obligations to all our stakeholders.

Together, we bring expertise from a range of different areas to ensure we are best positioned to provide support and constructive challenge to the CEO and management, as the Company continues to implement its successful growth strategy.

In 2023, we continued to strengthen our Board with two new appointments, which included the appointment of Patrick Bouisset as a Non-Executive Director who, after retiring as Endeavour's Executive Vice President of Exploration in December 2022, brings over 30 years of exploration experience, as well as a deep knowledge of the Company. His skills and experience will ensure that exploration and organic growth continue to be a positive differentiator for the Company.

Spotlight on responsibly mined gold

In a world first, gold from our Ity mine in Côte d'Ivoire was worn by British-Ghanian actress and screenwriter, Michaela Coel, who co-hosted Vogue's 2023 Met Gala in New York in May.

Coel wore jewellery specially created for this event by Ghanaian-British jeweller Emefa Cole using gold from our Ity mine, which is certified by the Single Mine Origin ("SMO") initiative.

SMO traces every ounce of gold from the accredited mines that produced it through the value chain to the final consumer.

SMO was established to provide confidence to consumers who buy gold products by enabling them to trace the origin of the metal all the way back from the finished product to the mine where it was produced. This initiative provides knowledge that it comes from a responsible source with the highest environmental, social and governance standards.

Using a QR code, consumers can see the provenance of the gold in their jewellery and understand the direct impacts of their purchase on local communities and environments.

We were also pleased to appoint Cathia Lawson-Hall to the Board as an Independent Non-Executive Director. She brings considerable corporate finance and investment banking experience, and strong stakeholder relationships, particularly in relation to the continent where we operate.

Alison Baker was appointed Senior Independent Director in 2023, a role previously fulfilled by Ian Cockerill.

I believe that our Board is composed of Directors who possess strong calibre, extensive experience, and bring a diverse range of skills, expertise and innovative thinking.

I would also like to take this opportunity to recognise Jim Askew, who stepped down from the Board during the year, and to thank him for his contribution.

Following these changes, Endeavour's Board already complies with the Financial Conduct Authority's positive diversity targets for listed companies as currently constituted; 44% of your Board are female and 55% come from ethnic minority backgrounds, strengthening the diversity of perspectives and expertise that the Board can draw on.

Our Ity mine was the first of Endeavour's mines to join the initiative in 2021 and was selected to be an SMO partner due to its industry-leading ESG standards.

We continue to uphold these standards: in 2023, Ity received external assurance for compliance with the World Gold Council's RGMPs and was commended with a national excellence award from the government for its environmental, social and government standards and initiatives.