profitable production, compelling · 1/1/2021 · exploration mexico chile mexico city lourdes...
TRANSCRIPT
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TSX: EDR | NYSE: EXK January 28, 2021
Profitable Production, Compelling Growth
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Cautionary Note
This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include, but are not limited to,
statements regarding Endeavour’s anticipated performance in 2021 and future years, including revenue, cash flow, operating and capital cost forecasts, silver and gold
production, timing and expenditures to explore and develop new silver mines and mineralized zones, silver and gold grades and recoveries, cash and all-in sustaining
costs per ounce, initial and sustaining capital expenditures, and the use of the Company’s working capital. The Company does not intend to, and does not assume any
obligation to update such forward-looking statements or information, other than as required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include,
among others: fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and U.S. dollar);
fluctuations in the price of consumed commodities, changes in national and local governments, legislation, taxation, controls, regulations and political or economic
developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral
exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological conditions, pressures, cave-ins and
flooding); inadequate insurance, or inability to obtain insurance; availability of and costs associated with mining inputs and labour; the speculative nature of mineral
exploration and development, reliability of calculation of mineral reserves and resources and precious metal recoveries, diminishing quantities or grades of mineral
reserves as properties are mined; risks in obtaining necessary licenses and permits, global market events and conditions and challenges to the Company’s title to
properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C.
and Canadian securities regulatory authorities
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company’s
mining operations, no material adverse change in the market price of commodities, mining operations will operate and the mining products will be completed in
accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements
or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be
no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those
anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
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Investor Highlights
MID-TIER PRODUCER
ORGANIC GROWTH
DISCOVERING NEW OREBODIES
ACQUIRING KEY ASSETS
BEST SILVER LEVERAGE
OPTIMIZING OPERATIONS
Three high grade, underground silver gold mines in Mexico
Reducing operating costs, boosting free cash flow
Best organic growth profile in silver mining sector
Track record of virgin discoveries to expand resources
Opportunistic mergers and acquisitions
Pure precious metals producer with sector leading beta to silver
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Core Assets
OPERATIONS
DEVELOPMENT
EXPLORATION
MEXICO CHILE
M exi co C i t y
Lo u r d es
G u a d a lup e y C a l v o ( 2)
L EO NO F F I C E
S A N T I A G OO F F I C E
M E X I C O
G U A N A C EV I M I N E
E L C O M P A S M I N E
EL C U B O ( 1)
B O L A N I T O S M I N ET ER R O N ER A
P A R RA L
B O L I V I A
C H I L EA I D A
P A L O M A
C E R R O M A R Q U EZ
2,200 employees and contractors
▸ 3 operations▸ 1 development project▸ 6 exploration projects
1. See EDR news release dated December 18, 2020 regarding signing a binding letter agreement to sell the El Cubo Mine to VanGold Mining Corp. for US $15 million in cash and share payments plus additional contingent payments.
2. Option Guadalupe y Calvo
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Recent Highlights
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Strongest Quarterly Production in 2 Years, 1.1 million oz
silver and 12,568 oz Au for 2.1 million oz AgEq(1) (21% increase q-o-q)
Achieved 2020 Production Guidance (2) of 6.5 million oz Ag Eq,
despite 2 month Gov. mandated suspension due to pandemic
Agreed to Sell El Cubo Assets to VanGold Mining for $15
million in cash and share payments plus additional
contingent payments; anticipated closing in Q1, 2021
Significantly Improved Financial Performance Y-o-Y
Q3, 2020 cash cost down 68% to $3.69 per oz Ag and AISC
down 19% to $17.48 per oz Ag
Q3 operating cash flow increased 397% to $10.3 million
Q3, 2020 cash at $45 million; working capital of $53.8 million
Drilled More High Grade Mineralization in the Santa Cruz
vein (Guanacevi), Melladito & San Bernabe veins
(Bolanitos), Calicanto & Misie veins (El Compas)
Expanded Land Position at Terronera to 20,000 hectares,
acquired 2 concessions with multiple vein structures
50% Au21,669
oz Au sold
50% Ag2.0 millionoz Ag sold
YTD Q3, 2020 Revenue of $77.7 million
2020 AgEq (1) Production 6.5 million oz
1. Silver equivalent at an 80:1 gold: silver ratio2. The Company withdrew its 2020 production guidance in early April due to the COVID-19 pandemic and the temporary shutdown mandated by the Mexican
government and chose not to issue revised guidance when production was resumed at the end of May due to continued uncertainty caused by COVID-19
Guanacevi
56%Bolanitos
33%
El Compas
11%
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2021 Outlook
Guanacevi Bolanitos El Compas Consolidated
Tonnes/ Day (TPD) 1,000 – 1,200 1,000 - 1,200 200 – 250 2,400 – 2,650
Silver Production (M oz) 3.1 – 3.7 0.4 – 0.5 0.1 - 0.1 3.6 – 4.3
Gold Production (K oz) 8.0 – 10.0 21.0 – 23.0 2.0 – 2.5 31.0 – 35.5
Silver Eq Production (M oz) (1) 3.7 – 4.5 2.1 – 2.3 0.2 – 0.2 6.1 – 7.1
Cash Costs, net of gold by-product credits (US$/oz) (2), (3) $7.00 - $8.00
AISC, net of gold by-product credits (US$/ oz) (2), (3) $19.00 - $20.00
Sustaining Capital Budget (US$M) $30.8
Development Budget (US$M) $9.0
Exploration Budget (US$M) $10.2
1. Gold ounces converted to silver equivalent ounces on a 80:1 ratio 2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP” measures found on the company website. 3. See EDR News Release dated January 28, 2021 for full disclosure on 2020 Guidance; Costs forecasts reflect an 20:1 Mexican Peso per US Dollar exchange rate, $22.00/ oz Ag & $1,760/ oz Au price assumption.
Production slightly higher now that operational turnaround is complete at Guanacevi and Bolanitos
Cash flow significantly higher due to higher metal pricesCosts slightly higher due to higher royalties and mining duties,
primarily at GuanaceviTerronera feasibility study expected mid-year, should facilitate
development decision Parral drill program focused on expanding resourcesChile drill program has strong discovery potential
Guanacevi
63%Bolanitos
34%
El Compas
3%
Breakdown by Mine
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Guanacevi MineDurango
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Guanacevi – Operational Turnaround Complete
1,004
tpd
1,024
tpd
684
tpd911
tpd
1,157
tpd
312 g/t
Ag Eq
350 g/t
Ag Eq
412 g/t
Ag Eq412 g/t
Ag Eq
412 g/t
Ag Eq
200
250
300
350
400
450
Q4, 2019 Q1, 2020 Q2, 2020 Q3, 2020 Q4, 2020
REDUCTION IN CASH COSTS Y-O-Y
INCREASE IN PRODUCTIVITYtonnes / employee / day
IMPROVED WORK CULTURE
New supervisors and management
Y-o-Y silver equivalent (1) production up 49%, grades up 32%, and throughput up 15%
Operational turn-around now complete, operating close to capacity
1. Silver equivalents have been calculated using an 80:1 gold: silver ratio2. Due to mandated government shut downs related to global pandemic
Abbreviated quarter (2)
Rising Quarterly Production (Ag Eq oz) (1)
835,555
939,240
675,146
994,245
1,247,537
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Q4, 2019 Q1, 2020 Q2, 2020 Q3, 2020 Q4, 2020
Abbreviated quarter
9
1. Silver equivalents are converted using a 80:1 silver: gold ratio 2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP”
measures found on the company website. Costs are presented in US $, net of by-product credits. 3. All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site exploration, share-based compensation,
reclamation, and sustaining capital net of gold credits.
Guanacevi - Continued to Outperform
Cash Costs, by Product Basis (2,3)
2020 Production of 3.9 million AgEq (1) oz
20% Au 9,814 oz
80% Ag3,071,075 oz
► Mining the new, higher grade El Curso, Milache and SCS
orebodies has led to significantly improved grades and
tonnes (Q4, 2020 tpd of 1,142 was the highest since 2015)
► Delivered free cash flow - $1.5 million in Q3, $4.3 million YTD
► Company pays a sliding scale royalty on El Curso Property,
based on realized silver prices
Q4, 2020 Q4, 2019 Change (%)
Tonnes Produced (tpd) 1,157 1,004 15%
Ag Grade (gpt) 331 252 31%
Au Grade (gpt) 1.01 0.75 35%
AgEq (1) Production (oz) 1,247,537 835,559 49%
Cash Costs (2) n/a $13.54 n/a
All-in Sustaining Costs (2,3) n/a $19.48 n/a
$12.83 $13.54
$9.01 $8.48 $9.64
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16 .00
Q3, 2019 Q4, 2019 Q1, 2020 Q2, 2020 Q3, 2020
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Bolanitos MineGuanajuato
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Bolanitos – Operational Turnaround Complete
Y-o-Y silver equivalent production up 46%, throughput up
31%, highest gold grades and recoveries in 3 years
Operational turnaround is now complete, operating close to
capacity at the highest levels since 2018
Added resources in the higher grade Melladito and San
Bernabe veins
Monthly Grade Profile (Ag Eq gpt) (1)
Rising Quarterly Production (Ag Eq oz) (1)
436,998 399,887
256,324
574,414
639,737
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Q4, 2019 Q1, 2020 Q2, 2020 Q3, 2020 Q4, 2020
1. Silver equivalents are converted using a 80:1 silver: gold ratio2. Due to mandated government shut downs related to global pandemic
Abbreviated quarter (2)
196 g/t
177 g/t
215 g/t
204 g/t
212 g/t
Q4, 2019 Q1, 2020 Q2, 2020 Q3, 2020 Q4, 2020
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Bolanitos – Continued to Improve
81% Au 18,963 oz Au19% Ag
353,318 oz Ag
2020 Production of 1.9 million AgEq (1) oz
Q4, 2020 Q4, 2019 Change (%)
Tonnes Produced (tpd) 1,167 893 31%
Ag Grade (gpt) 34 51 33%
Au Grade (gpt) 2.22 1.81 23%
AgEq (1) Production (oz) 639,737 437,003 46%
Cash Costs (2) n/a $4.81 n/a
All-in Sustaining Costs (2,3) n/a $38.38 n/a
Expanding production from San Miguel to 300 tpd
Developing new Melladito orebody for access in Q1, 2021
Investing sustaining capital to develop new high-grade areas
Delivered free cash flow - $2.3 million in Q3, $0.7 million YTD
1. Silver equivalents are converted using a 80:1 silver: gold ratio 2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP”
measures found on the company website. Costs are presented in US $, net of by-product credits. 3. All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site exploration, share-based compensation,
reclamation, and sustaining capital net of gold credits.
Improved Cash Costs, by Product Basis (2,3)
$8.13 $4.81 ($7.32)
($30.21)($40.89)
($50.00)
($40.00)
($30.00)
($20.00)
($10.00)
$0.00
$10.00
$20.00
Q3, 2019 Q4, 2019 Q1, 2020 Q2, 2020 Q3, 2020
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El Compas MineZacatecas
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El Compas – Steady State Operation
Y-o-Y production up 9%, throughput up 3%, gold grades and
recoveries up, silver grades and recoveries down
The current resource is sufficient to support mining until mid-
2021, however management is reviewing alternative
plans to ensure free cash flow in 2021
Production (Silver Equivalent Ounces)
Quarterly Production (Ag Eq oz) (1)
217,375196,573
130,476
194,420
236,895
0
50,000
100,000
150,000
200,000
250,000
Q4, 2019 Q1, 2020 Q2, 2020 Q3, 2020 Q4, 2020
1. Silver equivalents are converted using a 80:1 silver: gold ratio2. Due to mandated government shut downs related to global pandemic
Abbreviated quarter (2)
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El Compas – Achieved Mine Plan
88% Au 8 oz Au12% Ag
89,374 Ag
2020 Production of 758,334 AgEq (1) oz
Q4, 2020 Q4, 2019 Change (%)
Tonnes Produced (tpd) 257 248 4%
Ag Grade (gpt) 50 65 23%
Au Grade (gpt) 4.41 4.33 2%
AgEq (1) Production (oz) 236,895 217,358 9%
Cash Costs (2) n/a $8.13 n/a
All-in Sustaining Costs (2,3) n/a $3.46 n/a
Mining upper El Compas vein to access higher grades
Calicanto property has returned encouraging drill results
Delivered free cash flow - $0.2 million in Q3, $0.2 million YTD
1. Silver equivalents are converted using a 80:1 silver: gold ratio 2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP”
measures found on the company website. Costs are presented in US $, net of by-product credits. 3. All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site exploration, share-based compensation,
reclamation, and sustaining capital net of gold credits.
Cash Costs, by Product Basis (2,3)
($25.37)$10.96 $22.08
($96.75)
$0.42
($120.00)
($100.00)
($80.00)
($60.00)
($40.00)
($20.00)
$0.00
$20.00
$40.00
Q3, 2019 Q4, 2019 Q1, 2020 Q2, 2020 Q3, 2020
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Terronera Project Jalisco
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Terronera – Large, Low Cost Mine Potential
1. silver equivalents are converted using a 88:1 gold: silver ratio , using the base case pricing assumption in the 2020 PFS
2. As at December 31, 2019. For full details refer to table in the appendix
Quick Facts
Annual Silver/Gold Production (oz) 3 million Ag / 33,000 Au
Annual AgEq (1) Production (oz) 5.9 million
2 Defined Ore Bodies Terronera and La Luz, 66m oz Ag Eq in Reserves (2)
and 14m oz AgEq in Resources, 12 year mine life
AgEq (1) Grade (gpt) & Vein Widths Approx. 400 – 1,000 gpt AgEq; 1-30 m thick
Next Core Asset
Almost doubles consolidated production
Significantly decreases consolidated costs
District Scale Opportunity
Endeavour controls +26 concessions, totalling 20,128 hectares
Covers the entire district of San Sebastian, +50 old mines on
+50 known veins, 50 km NE of Puerto Vallarta
Drilling underway on newly acquired concessions
Final PFS Delivered Robust Economics
Feasibility study underway to further de-risk project
$60 million ATM in place
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Mining Costs ,
$44.64
Processing
Costs , $19.27
G&A, $6.16
Royalty ,
$3.99
Positive Project Economics Based on Updated 2020 PFS (AFTER-TAX)
NPV
@5% (US$)
$137 M
IRR
30%
PAYBACK
(years)
2.7
Terronera - Robust Project Economics
Operating & Financial Metrics 2020 PFS (1)
LOM tonnes processed (thousands) 5,563
Life of Mine (Years) 10
Average silver grade (g/t) 201
Average gold grade (g/t) 2.29
Silver equivalent grade (g/t) Base Prices 405
Avg annual Ag ounces produced (millions) 3.0
Avg annual Au ounces produced (thousands) 33
Avg annual Ag Eq ounces produced (millions) 5.9
LOM Revenue ($, millions) 942.7
LOM EBITDA ($, millions) 476.4
LOM Free cash flow, after tax ($, millions) 217.4
Total Cost $83.82
Direct Costs per Tonne
Cash Costs(2) AISC (2)
$0 / Ag oz$2.10/ Ag oz
Projected Low Total Cash Costs & AISC (3)
1. See Appendix for full base case assumptions in the updated 2020 PFS. Silver and gold price assumptions were $15.97/ oz Ag and $1,419 / oz Au. Average Recoveries for silver and gold are 84.9% and 82.3% respectively. The implied silver equivalent ratio is 89:1
2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP” measures found on the company website. Costs are presented in US $, net of by-product credits
3. Projected cash costs & AISC are based on Updated PFS filed in 2020.
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2020 PFS Base, Spot & Current Case Highlights
PFS BASE CASE
PFS SPOT CASE
CURRENT
Silver price $15.97/oz $18.49 $26.00/ oz
Gold price $1,419/oz $1,812 $1,950/ oz
Gold: silver ratio 89:1 98:1 75:1
NPV (5% after-tax) $137 million $229 million $350 million
IRR (after-tax) 30% 45.7% 64.50%
Payback Period 2.7 1.7 1.1
LOM cash cost, net of gold by-product credit
$0.00/ oz ($4.15)/oz ($5.44)/oz
LOM AISC, net of gold by-product credit
$2.10/ oz ($2.06)/oz ($3.35)/oz
Average annual after tax free cash flow once in production
$31 million $43 million $57 million
After tax cumulative undiscounted free cash flow
$217 million $342 million $506 million
• Base case prices for the PFS are calculated on a 2 year trailing average• Spot case scenario for the PFS is closing metal prices as of July 8, 2020 • Current price scenario for the PFS using a 75:1 gold: silver ratio and implied prices of $26.00/ oz silver and $1950/ oz gold as of early January 2021
3 million oz silver and 33,000 oz goldLOM Annual Production
10 year mine life with 5.9 million oz of Ag Eq at 405 gpt(89:1 ratio)
$100 million initial capital expenditure And $62.4 million LOM sustaining capital
$83.82 totalDirect production cost per tonne
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Production and Grade Profile
480492
381401
390 385 384378
362
345
250
300
350
400
450
500
550
--
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Silver Production (oz)
Gold Production (oz)
Ag Eq Grade
K o
z A
g E
q
• Silver equivalents are calculated at a 89:1 ratio, using base case prices of $15.97/oz Ag, $1409/ oz Au
Terronera Vein
La Luz Vein
Years 1-4: Average Ag Eq annual production of 6.5 million oz ; elevated grade profile (average Ag Eq grade of 440 gpt)
La Luz is almost entirely very high grade and will be mined early
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Expand Property Size - new concessions acquired covering 5,000
hectares, adjacent mineralized areas
Expand Resources & Reserves – additional drilling underway to
test other veins and expand resources
Expand Plant Capacity – evaluate potential to expand up to 2,000
tpd subject to expanding reserves
Optimize Mining Methods – with more geotechnical analysis,
additional longhole mining may be possible
Optimize Ore Transport – evaluate truck haulage and ventilation
requirements
Optimize Mining Equipment – evaluate electric equipment instead
of diesel
Optimize Recoveries – evaluate mass pull, concentrate grade, grind
size vs. flotation stages
Tailings Transport – evaluate belt conveyors vs. haul trucks
Power Capacity – re-evaluate power needs and rates once
alternatives are optimized
Upside Opportunities
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Complete EPCM process –contractor bidding and selection
Build project team
Extend Government permits – amend mine access ramp, construction camp
Secure project financing
Obtain board approval for development
Next Steps
Order long lead items – mine and plant procurement
Evaluate upside opportunities –exploration drilling underway
Complete feasibility study by mid 2021
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Parral ProjectChihuahua
24
Parral – Potential Sixth Mine
Historic Silver District
Palmilla was highest grade silver mine in Mexico in 1800s,
provided silver to the Mexican mint
Veta Colorada mine produced 4 million oz Ag per year prior to
closing in 1990 due to low silver price
Historic IMMSA resource at Veta Colorada; small toll mill in the
district could facilitate early production in 2020
IMMSA’s Santa Barbara and Frisco’s San Francisco mines to SW,
Discovery’s Cordero project to NE, Kootenay’s Cigarra project to W
Potential Core Asset
Was 4 million Ag oz per year mine until 1990
Indicated Resource(1) 3.7 million oz Ag; Inferred Resource(1)
36.8 million oz Ag, 21,800 oz Au
District Scale Opportunity
Endeavour concessions total 3,450 hectares
Controls the Parral district, 4 old mines and multiple veins
Potential Resource Expansion
Drilling resumes in 2021 ($2 million budget)
1. As at December 31, 2019. For full details refer to table in the appendix.
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Chile Projects
26
Chile – World Class Exploration Targets
Cerro Marquez – Bulk Tonnage Porphyry Copper (Au-Mo)
Geologically similar to other large porphyry copper mines in Chile
Massive porphyry alteration zone in Miocene Volcanic Caldera
Drilled in Q4, 2019 – results geologically encouraging
Paloma – High Sulfidation Epithermal Gold (Ag)
Geologically similar to 4 million oz Solares Norte discovery
Massive acid-sulfate alteration zone in Miocene Volcanic Caldera
Initiated drilling in Q3, 2019 and planned drilling in 2021
Aida – Low Sulfidation Epithermal Silver (Pb-Zn)
Geologically similar to 2 billion oz Cerro Potosi mine
Massive epithermal alteration zone Miocene Volcanic rocks
Cerro Marquez
Paloma
Aida
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Exploring to extend
mine lives
Developing to
expand production
Advancing to development
High impact discovery potential
OPERATING MINES
Guanacevi – Mining new higher grade orebodies
Bolanitos – Developing new higher grade orebodies
El Compas – Drilling new high grade veins
DEVELOPMENT PROJECTS
CHILE ASSETS
Aida – Bulk tonnage low sulfidation epithermal silver
Cerro Marquez – Bulk tonnage porphyry copper
Paloma – Bulk tonnage high sulfidation epithermal gold
Terronera Jalisco
Awarded feasibility study to Wood Plc
Considering upside opportunities and debt financing
Restarted drilling to expand resources
Parral, Chihuahua
Restart drilling in 2021 to expand resources
Sector Leading Organic Growth Strategy
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Shareholder Information
Capital Structure
Issued/ Outstanding 157.4 million
Fully Diluted 165.7 million
Recent Price (Jan 20, 2021) US$4.69
Market cap (Jan 20, 2021) US$738 million
52-Week High/Low US$5.85/$1.00
60-Day Avg Daily Volume (shares) ~5.0 million
Key Data
Exchange Listings NYSE:EXK, TSX:EDR, FSE:EJD
Working Capital (Sep 30/20) US$53.8 million
Cash Position (Sep 30/20) US$44.9 million
Major Shareholder Van Eck (GDXJ) 6.0%
Strategic Shareholder Fresnillo 2%
Mining Analysts 10
~ presented as at September 30, 2020 unless noted otherwise
Sector Leading Beta to Silver(1)
Analysts Coverage
B Riley FBR Lucas Pipes
BMO Capital Markets Ryan Thompson
CIBC World Markets Cosmos Chiu
Global Alliance Jake Sekelsky
GMP Securities Ian Parkinson
Noble Capital Markets Mark Reichman
PI Financial Chris Thompson
Roth Capital Partners Joseph Reagor
H.C. Wainwright Heiko Ihle
TD Securities Craig Hutchison
1.201.30 1.24
1.37 1.311.39
1.56
Hecla Mining Fortuna Silver Pan American Coeur Mining Great Panther First Majestic Endeavour Silver
Expressed as a weekly frequency as compared to the GSCI Silver index
1. Source: 5 year beta as provided by Capital IQ software – as of January 5, 2021.
29
2021 Catalysts
Extend Mine Lives
Reduce Operating Costs
OptimizeTerronera
Make New Discoveries
29
Grow Through M&A
Improve productivity at each mine, focus on free cash flow
Continue exploration drilling, replace reserves and grow resources
Published final PFS with robust economics, initiated feasibility study
Drill world class Paloma high sulfidation gold –silver prospect in Chile
Acquire new mines that are accretive to NAV and cash flow with organic growth potential
30
Why Invest?
Mid-Tier Silver Producer
Three high-grade silver-gold mines in Mexico
Compelling Organic Growth
Building new mines to increase production and reduce costs
Experienced Management Team
Proven track record with exploration, development and
operational expertise
Strong Balance Sheet
$53.8 million working capital, no LTD debt
(as at 9/30/2020)
Pure Silver/ Gold Leverage
No base metals, no hedging & strong beta to silver price
Our mission is to create value for our shareholders
and become a premier silver producer in the silver
mining industry.
31
Appendix
Compelling Value Proposition
An attractive investment opportunity with an industry leading growth profile & silver leverage
32
ELECTRONICS
SILVERWARE
BATTERIES
SOLAR PANELS
BARS & COINS
WATER TREATMENT
MEDICAL
JEWELRY
Why Silver?
SILVER is playing an increasingly important role in industrial applications that contribute to a sustainable future:
100%
50%
0%
DENARIUS % SILVER
64-68 161-168 DidiusJulianus
193
Elagabalus219-222
Puplenus & Balbinus
238
Philip 244 Valerian255-60
Best natural conductor of electricity and heat: used in electronics, batteries, solar panels, alloys & coatings, LED & RFID chips, semi-conductors, photography, anti-bacterials, preservatives, medicines
Silver is a precious metal: like gold, silver is money and its role as a store of value and a hedge against monetary inflation is growing
Currency debasement is not new: governments throughout history have “printed” money; eg. falling silver % in the Roman Denarius coin
POPULAR APPLICATIONS: NON-COMMERCIAL USES:
SILVER SEMI-CONDUCTOR FILM
SILVER NANO PARTICLES
HIGH VALUE CHEMICALS
HYDROGREN FOR FUEL CELLS, ELECTRICITY
33
Ore Grades (g/t) Recovered Ounces Recoveries (%) Cost Analysis
Period
Plant throughput
(tonnes)Silver Gold Silver Gold Silver Gold
Cash costs ($/oz Ag)
AISC ($/oz Ag)
Direct costs($/tonne)
Q1 - 16 408,553 137 1.50 1,510,065 15,960 83.7 81.0 7.63 11.12 74.26
Q2 - 16 377,198 148 1.58 1,551,851 15,649 86.2 81.9 5.37 10.53 73.01
Q3 - 16 355,611 133 1.55 1,284,646 14,364 84.3 80.8 5.27 11.47 71.18
Q4 - 16 317,555 123 1.35 1,088.845 11,402 87.0 83.0 9.39 20.11 70.72
Total 2016 1,458,917 136 1.50 5,435,407 57,375 85.3 81.7 6.78 12.43 72.42
Q1 - 17 303,222 126 1.41 1,076,974 11,724 87.4 85.2 7.81 18.24 75.77
Q2 - 17 303,943 135 1.58 1,143,788 13,058 86.6 84.6 8.36 20.46 84.01
Q3 - 17 319,038 144 1.53 1,262,064 13,648 84.5 87 8.10 18.71 81.60
Q4 - 17 349,924 152 1.56 1,436,962 14,577 84.1 83.3 7.97 12.70 84.38
Total 2017 1,279,873 140 1.54 4,919,788 53,007 85.4 83.9 8.06 16.96 82.36
Q1 - 18 325,669 148 1.47 1,314,648 12,832 84.6 83.6 6.50 14.18 79.38
Q2 - 18 314,305 156 1.60 1,355,895 13,674 86.2 84.5 7.05 15.73 83.75
Q3 - 18 317,821 160 1.50 1,428,828 12,968 87.5 84.8 8.86 16.14 86.33
Q4 - 18 309,036 157 1.55 1,386,505 13,117 88.8 85.4 9.22 14.20 93.52
Total 2018 1,266,831 156 1.53 5,522,068 52,967 86.9 84.9 8.06 15.45 86.32
Q1 - 19 246,519 154 1.45 1,071,355 10,055 87.7 87.4 12.55 19.37 105.84
Q2 - 19 237,640 157 1.51 1,059,322 9,558 88.5 83.0 13.67 20.90 114.40
Q3 - 19 234,196 144 1.49 948,547 9,716 87.6 86.7 11.51 21.53 106.76
Q4 - 19 236,531 140 1.53 939,511 9,578 88.3 82.2 13.63 23.20 113.47
Total 2019 954,886 149 1.50 4,018,735 38,907 88.0 84.7 12.85 21.19 110.09
Q1 - 20 199,327 155 1.57 857,659 8,476 86.1 84.4 7.85 18.38 101.63
Q2 - 20 114,120 188 1.84 596,545 5,817 86.3 86.3 2.78 14.91 109.74
Q3 - 20 206,324 162 1.82 942,274 10,260 87.6 85.0 3.69 17.48 112.37
Q4 - 20 237,389 169 1.90 1,117,289 12,586 86.8 87.0 n/a n/a n/a
Total 2020 757,160 167 1.78 3,513,767 37,139 86.5 85.9 n/a n/a n/a
Consolidated Mine Operations Table
34
Guanaceví Mine Operations Table
Ore Grades (g/t) Recovered Ounces Recoveries (%) Cost Analysis
Period
Plant throughput
(tonnes)Silver Gold Silver Gold Silver Gold
Cash costs ($/oz Ag)
AISC ($/oz Ag)
Direct costs($/tonne)
Q1 - 16 98,776 249 0.56 651,731 1,568 82.4 88.5 8.09 12.95 71.92
Q2 - 16 98,756 232 0.49 629,221 1,365 85.4 87.7 10.82 20.11 83.38
Q3 - 16 82,059 235 0.51 542,385 1,163 87.5 86.4 11.12 21.53 93.24
Q4 - 16 87,850 211 0.49 540,708 1,232 90.7 89.0 12.66 26.74 93.60
Total 2016 367,441 232 0.51 2,364,045 5,328 86.3 88.4 10.56 19.07 84.94
Q1 - 17 87,599 213 0.49 530,683 1,192 88.5 86.4 12.85 23.78 94.99
Q2 - 17 74,894 219 0.50 468,741 1,079 88.8 89.5 14.94 27.40 111.42
Q3 - 17 74,649 249 0.57 522,907 1,224 87.5 89.5 13.68 23.47 117.15
Q4 - 17 83,881 241 0.54 544,117 1,245 83.7 85.5 12.39 17.57 99.39
Total 2017 321,113 230 0.53 2,066,448 4,740 87.0 86.6 13.41 22.87 105.13
Q1 - 18 78,971 224 0.63 489,163 1,443 86.0 90.2 15.31 22.62 120.63
Q2 - 18 71,275 225 0.67 464,929 1,423 90.2 92.7 17.46 29.24 139.24
Q3 - 18 81,268 218 0.48 518,318 1,114 91.0 88.8 18.14 28.75 131.75
Q4 - 18 75,528 222 0.58 484,197 1,240 89.8 88.0 19.38 27.49 144.57
Total 2018 307,042 222 0.59 1,963,773 5,224 89.6 89.7 17.57 27.01 133.78
Q1 – 19 76,557 206 0.52 458,144 1,138 90.4 88.9 21.06 27.56 145.37
Q2 – 19 75,591 242 0.62 536,966 1,367 91.3 90.7 17.37 24.94 148.84
Q3 – 19 78,517 232 0.67 533,923 1,557 91.2 92.1 12.83 20.99 116.20
Q4 – 19 92,323 252 0.75 673,559 2,025 90.0 91.0 13.54 19.48 131.56
Total 2019 322,988 234 0.65 2,202,592 6,087 90.6 90.2 15.87 22.86 135.14
Q1 – 20 94,207 280 0.87 745,114 2,427 87.9 92.1 9.01 14.61 111.89
Q2 – 20 62,231 304 1.05 527,347 1,847 86.7 87.9 8.48 15.00 126.13
Q3 – 20 83,816 336 0.95 806,917 2,342 89.1 91.5 9.64 17.76 146.26
Q4 – 20 106,425 331 1.01 991,697 3,198 87.6 92.5 n/a n/a n/a
Total 2020 346,679 314 0.96 3,071,075 9,814 87.7 91.7 n/a n/a n/a
35
Ore Grades (g/t) Recovered Ounces Recoveries (%) Cost Analysis
Period
Plant throughput
(tonnes)Silver Gold Silver Gold Silver Gold
Cash costs ($/oz Ag)
AISC ($/oz Ag)
Direct costs($/tonne)
Q1 - 16 137,128 94 2.33 334,569 8,449 80.7 82.2 (6.20) (3.55) 60.03
Q2 - 16 136,322 80 2.38 276,885 8,470 79.0 81.2 (7.08) (4.25) 63.94
Q3 - 16 132,686 76 2.30 255,350 7,875 78.7 80.3 (15.17) (11.16) 49.03
Q4 - 16 101,568 71 2.22 185,813 5,926 80.1 81.7 (4.87) 1.02 54.35
Total 2016 507,704 81 2.31 1,052,617 30,720 79.6 81.5 (8.37) (4.77) 57.07
Q1 - 17 94,351 66 2.40 168,723 6,218 84.3 85.4 (10.28) (3.82) 65.18
Q2 - 17 113,875 78 2.27 231,106 6,965 80.9 83.8 (4.78) 3.61 66.60
Q3 - 17 114,526 83 2.09 257,972 6,663 84.4 86.6 (0.52) 3.96 71.52
Q4 - 17 124,172 86 2.18 280,712 7,204 81.8 82.8 (2.73) 1.01 67.04
Total 2017 446,924 80 2.24 934,238 26,910 81.3 83.6 (4.00) 1.62 67.68
Q1 - 18 115,014 82 1.83 238,012 5,578 78.5 82.4 (2.77) 4.20 60.87
Q2 - 18 108,495 91 1.82 248,591 5,222 78.3 82.3 2.87 12.84 65.74
Q3 - 18 109,728 84 1.67 236,197 4,832 79.7 82.0 6.22 14.00 64.00
Q4 - 18 105,768 82 1.77 235,326 5,166 84.4 85.8 2.59 5.12 66.43
Total 2018 439,005 86 1.79 975,555 21,127 80.4 83.6 2.14 9.00 64.20
Q1 – 19 86,634 86 1.82 196,010 4,430 81.8 87.4 2.43 16.36 70.87
Q2 – 19 76,386 78 1.49 171,891 3,035 89.7 82.9 11.56 22.64 79.90
Q3 – 19 71,541 77 1.62 147,078 3,226 86.6 83.0 8.13 29.90 81.03
Q4 – 19 82,147 51 1.81 109,963 4,088 81.6 85.5 4.82 38.83 80.66
Total 2019 316,708 73 1.69 624,942 14,779 84.1 85.9 6.72 25.11 77.88
Q1 – 20 83,217 40 1.71 86,125 3,922 80.5 85.7 (7.32) 44.17 68.85
Q2 – 20 41,680 47 2.10 55,682 2,508 88.4 89.1 (30.20) 29.79 77.02
Q3 – 20 98,945 42 2.04 112,094 5,779 83.9 89.1 (40.89) 10.51 67.82
Q4 – 20 107,332 34 2.22 99,417 6,754 84.7 88.2 n/a n/a n/a
Total 2020 331,174 40 2.02 353,318 18,963 83.0 88.2 n/a n/a n/a
Bolañitos Mine Operations Table
36
Ore Grades (g/t) Recovered Ounces Recoveries (%) Cost Analysis
Period
Plant throughput
(tonnes)Silver Gold Silver Gold Silver Gold
Cash costs ($/oz Ag)
AISC ($/oz Ag)
Direct costs($/tonne)
Q1 – 19 3,790 61 3.66 3,218 342 43.3 76.8 (5.59) 18.55 110.03
Q2 – 19 21,242 72 4.35 24,007 2,238 48.8 75.3 (1.52) 43.62 138.03
Q3 – 19 21,885 90 4.56 43,634 2,669 68.9 84.1 (25.37) 3.46 137.99
Q4 - 19 22,855 65 4.33 33,5181 2,298 70.2 72.2 10.90 47.68 160.01
Total 2019 69,772 75 4.37 104,377 7,577 62.0 77.3 (7.74) 27.49 143.70
Q1 – 20 21,903 58 4.02 26,420 2,127 64.7 75.1 22.10 45.98 182.81
Q2 – 20 10,209 60 5.55 13,516 1,462 68.6 80.3 (96.83) (48.25) 143.50
Q3 – 20 23,563 48 3.98 23,263 2,139 64.0 70.9 0.44 40.39 178.92
Q4 - 20 23,632 50 4.41 26,175 2,634 68.9 78.6 n/a n/a n/a
Total 2020 55,675 54 4.28 63,199 5,728 65.4 74.8 n/a n/a n/a
El Compas Mine Operations Table
37
Silver-Gold Reserves and Resources
Tonnes Ag g/t Au g/t Ag oz Au oz Ag Eq OzCompared
to 2018
Proven
Guanaceví 155,000 276 0.70 1,374,000 3,500 1,654,000 143%
Bolañitos 39,000 68 2.56 86,000 3,300 350,000 (78%)
El Compas 42,000 64 3.65 87,000 5,000 487,000 (2%)
Total Proven 236,000 203 1.54 1,547,000 11,800 2,491,000 (35%)
Probable
Guanaceví 560,000 240 0.66 4,326,000 11,800 5,270,000 (30%)
Bolañitos 327,000 43 2.44 455,000 25,700 2,511,000 111%
El Compas 53,000 82 4.96 141,000 8,500 821,000 100%
Terronera 5,587,000 208 2.33 37,440,000 419,000 70,960,000 -
Total Probable 6,527,000 202 2.22 42,362,000 465,000 79,562,000 (2%)
Total P+P 6,763,000 202 2.19 43,909,000 476,800 82,053,000 (4%)
Measured
Guanaceví 78,000 377 0.64 947,000 1,600 1,075,000 168%
Bolañitos 33,000 124 1.89 131,000 2,000 291,000 (77%)
El Cubo 19,000 224 1.89 140,000 1,200 236,000 (70%)
El Compas 2,000 123 6.27 9,000 500 49,000 43%
Total Measured 132,000 287 1.23 1,227,000 5,300 1,651,000 (33%)
Indicated
Guanaceví 1,062,000 331 0.85 11,305,000 29,100 13,633,000 22%
Bolañitos 502,000 160 1.95 2,588,000 31,400 5,100,000 (10%)
El Cubo 32,000 209 2.03 214,000 2,100 382,000 (83%)
El Compas 32,000 69 4.79 64,000 6,400 576,000 (49%)
Guadalupe y Calvo 1,861,000 119 2.38 7,120,000 142,400 18,512,000 -
Parral (new) 433,000 271 - 3,771,000 - 3,771,000 1,461%
Total Indicated 3,922,000 199 1.68 25,062,000 211,400 41,974,000 7%
Total M&I 4,054,000 202 1.68 26,289,000 216,700 43,625,000 5%
Inferred
Guanaceví 778,000 406 0.99 10,155,000 24,900 12,147,000 26%
Bolanitos 832,000 113 2.31 3,031,000 61,700 7,967,000 5%
El Cubo 463,000 163 1.89 2,419,000 28,200 4,675,000 (47%)
El Compas 81,000 90 6.77 232,000 17,500 1,632,000 (52%)
Terronera 1,080,000 208 2.26 7,239,000 79,000 13,559,000 -
Guadalupe y Calvo 154,000 94 2.14 465,000 10,600 1,313,000 -
Parral (new) 3,160,000 324 0.21 32,930,000 21,800 34,674,000 9%
Total Inferred 6,548,000 269 1.16 56,471,000 243,700 75,967,000 0%
Silver-Gold-Lead-Zinc Resources
Tonnes Ag g/t Au g/t Ag oz Au oz Pb% Zn% Ag Eq OzCompared to
2018
IndicatedGuanaceví 363,000 208 0.26 2,420,500 3,100 0.78 1.32 2,668,500 -
Parral (Cometa) 180,000 55 1.17 300,000 6,800 3.20 3.30 844,000 (87%)
Total Indicated 543,000 156 0.57 2,720,500 9,900 1.58 1.98 3,512,500 (61%)
InferredGuanaceví 488,000 132 0.16 2,076,000 2,500 1.36 2.54 2,276,000 -
Parral (Cometa) 880,000 74 1.45 2,100,000 41,000 3.27 3.24 5,380,000 (4%)
Total Inferred 1,368,000 95 0.99 4,176,000 43,500 2,59 2.99 7,656,000 (3%)
Reserves and Resources (Dec 31, 2019)
38
Reserves & Resources (Dec 31, 2019)Notes1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the Mineral Resources will be converted into
Mineral Reserves.2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.3. The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.4. Mineral Resources are exclusive of and in addition to Mineral Reserves.5. Guanacevi Mineral Resource and Mineral Reserve cut-off grades are based on a 182 g/t silver equivalent for Santa Cruz Sur of Guanacevi, 340 g/t silver equivalent for the El Curso
concession of Guanacevi and 218 g/t silver equivalent for Santa Cruz, North Porvenir and Milache of Guanaceví; Metallurgical recoveries were 83.3% silver and 84.5% gold for Guanaceví6. Bolañitos, Mineral Resource and Mineral Reserve cut-off grades are based on a 166 g/t silver equivalent for the Lucero ramp, 206 g/t for the La Luz ramp and 168 g/t for San Miguel of
Bolanitos. Metallurgical recoveries were 71.9% silver and 89.0% gold for Bolañitos7. El Cubo Mineral Resource cut-off grades are based on a 196 g/t silver equivalent for Area II (that comprises Dolores Mine) of El Cubo and 238 g/t silver equivalent for Areas I&IV (that
comprise Santa Cecilia and San Nicolas Mines) of El Cubo.8. El Compas Mineral Resource and Mineral Reserve cut-off grades are based on a 3.46 g/t gold equivalent. Metallurgical recoveries were 70.0% silver and 82.5% gold for El Compas9. Mineral Resource cut-off grades for Terronera was 150 g/t silver equivalent and the Mineral Reserve cut-off grades for Terronera and La Luz Deposits were 165 g/t and 222 g/t silver
equivalent respectively. Metallurgical recoveries were 84.6% silver and 80.4% gold for Terronera10. Mineral Resource cut-off grades are based on a 150 g/t silver equivalent for Guadalupe y Calvo11. Mineral Resource cut-off grades at Parral vary: 130 g/t silver equivalent for most veins, 200 g/t silver for Sierra Plata, and US$55/t NSR for Cometa.12. Mining recoveries of 93% were applied for Guanaceví, Bolañitos and El Compas and 95% for Terronera for Mineral Reserve Estimate calculations. Minimum mining widths were 0.8 metres
for Mineral Reserve Estimate calculations.13. Dilution factors for Mineral Reserve Estimate calculations averaged 35% for Guanaceví, 33.66% for Bolañitos and 36.2% for El Compas and 11% for Terronera. Dilution factors are calculated
based on internal stope dilution calculations and external dilution factors of 24% for cut and fill mining and 40% for long hole mining at Guanaceví and Bolañitos14. Silver equivalent grades and ounces are based on a 80:1 silver:gold ratio and calculated including only silver and gold.15. Probable Mineral Reserves for Terronera includes the Terronera and La Luz Deposits.16. Inferred Mineral Resources for Terronera includes the Terronera, La Luz and Real Alto Area.17. Indicated and Inferred Mineral Resources for "Parral (new)" includes the Colorada, Palmilla, San Patricio, and Sierra Plata areas.18. The La Colorada structure (Parral) does not contain gold on an economic scale.19. Price assumptions for Guanaceví, Bolañitos, El Compas and El Cubo are US$16.34/oz for silver, US$1,279/oz for gold, US$0.82/lb for lead and US$0.90/lb for zinc.20. Price assumptions for Terronera are US$17.50/oz for silver, US$1,275/oz for gold.21. Price assumptions for Parral are US$15/oz for silver, US$1,275/oz for gold.22. Figures in tables are rounded to reflect estimate precision; small differences generated by rounding are not material to the estimates.23. Effective November 31, 2019, Endeavour Silver announced suspension of operations at the El Cubo Mine, while Management evaluates other alternatives including final closure. 2018
Reserve subtotals and totals include El Cubo for comparative purposes.24. See AIF for potential risks that can materially affect the development of the mineral resources or exploitation of reserves.
Godfrey Walton, M.Sc., P.Geo., President and COO of Endeavour, is the Qualified Person who reviewed and approved this technical information contained in these Mineral Reserve and Resource Estimates. A Quality Control sampling program of reference standards, blanks and duplicates has been instituted to monitor th e integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish.
The Mineral Reserve Estimate for Terronera in the technical report titled “Updated Technical Report for the Terronera Project, Jalisco State, Mexico” effective February 12, 2019 and signed April 30, 2019 were undertaken by Independent Qualified Persons Eugene Puritch, P.Eng., FEC, CET, Yungang Wu, P.Geo., David Burga, P.Geo., D. Gregory Robinson, P.Eng., Peter J Smith P. Eng, Eugenio Iasillo P.E., Humberto Preciado P.E., and Benjamin Peacock, P. Eng.
The Parral Mineral Resources disclosed have been estimated by Mr. Jose Texidor Carlsson, P.Geo., an employee of Roscoe Postle Associates (RPA) and independent of Endeavour. By virtue of his education and relevant experience, Mr. Texidor Carlsson is a “Qualified Person” for the purpose of National Instrument 43 -101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014). Mr. Texidor Carlsson, P.Geo. has read and approved the contents as it pertains to the disclosed Parral Mineral Resource estimates.
Terronera Assumptions for 2020 PFS
2020
Silver Price 15.97
Gold Price 1,419
Silver:Gold Ratio 89
Operating Statistics
LOM Tonnes Processed LOM (thousands) 5,563
Life of Mine (Years) 10.0
Average silver grade (g/t) 201
Average gold grade (g/t) 2.29
Silver equivalent grade (g/t) 405
Average silver recovery 84.9%
Average gold recovery 82.3%
LOM payable Ag ounces produced (millions) 29.8
LOM payable Au ounces produced (thousands) 328
LOM payable Ag Eq ounces produced (millions) 59.0
Avg annual payable Ag ounces produced (millions) 3.0
Avg annual payable Au ounces produced (thousands) 33
Avg annual payable Ag Eq ounces produced (millions) 5.9
Capital Expenditure Statistics
Initial Capital Expenditure (millions) 99.1
Process Capacity (tonnes per day) 1,600
LOM Sustaining Capital 62.4
Total LOM Project Capital 161.5
Financial Cost Metrics
LOM Revenue (millions) 942.7
LOM EBITDA (millions) 476.4
After Tax LOM Free Cash Flow (millions) 217.4
After Tax Project Net Present Value (millions)
137.1
After Tax Internal Rate of Return 30.0%
Pay Back Period (years) 2.7
Cash costs by Product (per silver ounce) 0.00
All in sustaining (per silver ounce) 2.10
Cash costs by Silver Equivalent (per silver ounce)
7.90
All in sustaining Silver equivalents (per silver ounce)
8.96
LOM COS (millions) 466.3
Total Direct Production Costs (per Tonne) 83.82
40
Management Team
Dan Dickson, CA, CFO
Luis Castro, Ing., Geo.
VP Exploration
Bradford Cooke, M.Sc., P.Geo.
CEO
Donald Gray, M.Sc., P.Geo.
President and COO
Dale Mah,
B.Sc., P.Geo.VP Corporate Development
Galina Meleger, CIM, CSRPDirector, IR
Christine West,
CPA, CGAVP Controller
Lorena Aguilar,BS, Director, HR
Ernesto Lima,
Ing., MBADirector, Project
Development
Nicholas Shakesby, BBA
VP Operations
41
Board of Directors
Bradford Cooke, M.Sc., P.Geo.
Margaret Beck, B.Sc.
Mario Szotlender, B.IR
Ricardo Campoy, B.Sc.
Comp. Committee Chair
Geoff Handley, B.Sc.Chair; Corp. Gov. &
Nom. Committee Chair
Rex McLennan, B.Sc., MBA, ICD.D
Audit Committee Chair
Ken Pickering, P. Eng.
HSES Committee Chair
42
Van Eck Associates
Renaissance Technologies
Fresnillo
Merian Global Investors
Mirae Asset Global Investments
Credit Suisse Securities
Black Rock
Konwave AG
Stabilitas
Dimensional Fund Advisors
RBC Global Asset Management
Millennium Management
Sprott Asset Management
Sprott Inc
Global X Management
Connor Clark & Lunn
NinePoint Partners
Morgan Stanley
AMG Fondsverwaltung
UBS Financial Services
ETF Managers
Institutional Investors, Analyst Coverage
Ryan Thompson, BMO
Cosmos Chiu, CIBC
Jake Sekelsky, Alliance Global Partners
Ian Parkinson, GMP Securities
Mark Reichman, Noble Capital Markets
Heiko Ihle, H.C. Wainwright
Craig Hutchison, TD
Chris Thompson, PI Financial
Joseph Reagor, Roth Capital Partners
Lucas Pipes, B. Riley FBR
43
44
▸ 2012 – Endeavour started GRI 4.0 reporting of its sustainability activities.
▸ Every year, we go to our stakeholders for feedback on a full range of interests, and every two years, we conduct a materiality review to rank what is most important both internally and externally to adjust our goals and programs.
▸ Our reporting is based on the five pillars listed below, with Governance as the foundation.
2018 Annual Review & Sustainability Report
2019 marks the 8th consecutive year that we’ve reported on our sustainability initiatives
We receive annual awards for the way we do business
45
▸ Because mining is a high risk industry, employee health and safety is our #1 priority, governed by extensive safety policies and practices.
▸ Every employee goes through rigorous safety induction, daily safety procedures, regular refresher courses, job site audits and each mine has award-winning first aid and mine rescue teams.
▸ We provide regular health programs for employees including annual medical checkups, disease and occupational health tests, drug and alcohol tests, lifestyle and fitness counselling.
▸ In the communities, we work with state governments to provide medical, dental, and optical services, and lifestyle and addiction counselling.
Health & Safety
2019 Highlights
70% of all training activities involved safety education, highlighting its importance Guanacevi received the “Casco de Plata” safety award last year, the highest safety recognition provided by the Mining Chamber in Mexico, for their performance in 2018
46
▸ Education and training are important to improving the quality of life in the local communities.
▸ Endeavour sponsors university scholarships in Mexico and Canada, high school scholarships in Mexico, and online courses to complete high school diplomas, technical and self-employment courses.
▸ We run mining skills training programs to teach young people, women and the unemployed career skills like operating dump trucks, scoop trams, jumbo drills followed by job offers.
Our People
2019 Highlights
Provided an average of 47 hours of training for each employeeCompleted the suspension of operations at El Cubo smoothly, and transferred 40% of the professional employees to other job opportunities within the Company
47
▸ We support our local communities in many ways to improve the quality of life, resolve issues and build sustainable capacity.
▸ Endeavour donates our time, funds, food and gifts for cultural and religious celebrations; we sponsor sports teams, kids camps and field trips, and an annual 10 km race to promote fitness; we help upgrade local buildings, schools, churches and roads.
▸ We also train locals and provide equipment for cottage businesses such as pastry making, confections, jewelry, tourist gifts, clothing and mops.
▸ Our goal is to complete at least one legacy project at each community, from fresh water supply, to proper sewage disposal, to new community buildings, to tourist mine.
Community
2019 Highlights
Supported 118 Mexican students with scholarships to further their education Sponsored several events to engage with over 1,000 locals in the communities near TerroneraFully funded a multi-use recreational facility for the El Cubocommunity
48
▸ Protection of our natural environment is paramount for Endeavour.
▸ We monitor dumps, tailings, water and energy consumption and emissions, waste recycling and disposal & biodiversity.
▸ In particular, tailings management has been a hot topic recently but from day one we have made major investments to upgrade our tailings facilities to North American standards – dry stack at Guanaceví, a unique drainage system at Bolañitos, and new facilities at El Cubo.
▸ We typically plant tens of thousands of trees and cacti each year, reclaiming areas disturbed by Endeavour but also historic areas.
Environment
2019 Highlights
Planted 51,000 trees in reforestation projects to reclaim disturbed groundRecycled over 93% of water used
49
▸ Investments are essential to generate economic impact and profits are essential to fulfil community and sustainability objectives.
▸ Our most obvious positive economic impacts have been from investing in:
▸ acquisition of properties, mines and plants ▸ exploration to discover new orebodies in historic mining districts▸ development to open new mines and refurbish and expand old
mines, plants and facilities▸ operations to create over 2,000 employee and contractor jobs▸ direct economic impact on 8,100 people (3:1 ratio)▸ indirect economic impact on another 8,100 people such as
suppliers and services; 99% in Mexico
Economic Value
2019 Highlights
99% of our workforce is Mexican, spent $42 million in employee wages and benefits. Spent $164 million on goods and services, 97% of total procurement is from within Mexico. Paid $5 million in various taxes