Endeavour has successfully completed two acquisitions within one year. Could you comment on the integration process of the Sabodala-Massawa complex and the expansion work undertaken there?

We are extremely pleased with how smoothly and quickly the Teranga assets were integrated into our West African operating platform. Amongst our portfolio of seven mines across Cote d’Ivoire, Burkina Faso, and Senegal, we believe the Sabodala-Massawa mine in Senegal has the most potential to be a long-life, low-cost, top-tier asset. Earlier this year, we approved the $20 million Phase 1 expansion, which aims to optimize the processing of the higher-grade Massawa ore and increase production by approximately 90,000 ounces per annum. The expansion is progressing well and is on track for completion in Q4-2021. We are also finalizing the feasibility study for the Phase 2 expansion, which will enable us to process the high-grade refractory ore from the Massawa deposit through the addition of a bio-oxidation plant adjacent to the current plant. This expansion is estimated to increase production to above 400,000 ounces per year.

What is the rationale behind listing on the LSE, alongside the TSX, and what is the significance of this milestone for the company?

Our listing on the London Stock Exchange (LSE) was a natural next step for Endeavour given the evolution of our business over the past four years and our new size as one of the world’s largest gold producers. We saw an opportunity to fill a gap in the market on the LSE for investors seeking significant, diversified gold production exposure after the removal of Randgold. By listing on the premium segment of the LSE, we aimed to benefit from index inclusion and were pleased to be included in the FTSE250 index in September 2021, just a few months after listing. Since listing, we have gained access to a new, wider base of globally minded investors and a deeper pool of capital. This has enabled us to attract UK generalist funds, and we are starting to see good daily trading volumes on the LSE.

Endeavour has consistently met yearly production guidelines while operating at an AISC under US$900/oz. What are the key factors underpinning these strong economics?

Over the past four years, we have focused on creating a resilient business centered around our four strategic pillars: operational excellence, project development, unlocking exploration value, and portfolio and balance sheet management. These pillars have been underpinned by our core asset criteria of a mine life of 10 years or more, production of more than 200,000 ounces per year, and an AISC of below $900 per ounce over the life of the mine. Through this disciplined focus, we have successfully delivered on our strategy and transformed the group into one of the top 10 global gold producers and the largest in West Africa. Our ability to produce gold at low cost is further supported by the geological potential of West Africa, which is highly prospective and remains underexplored. We have concentrated on building high-grade, low-cost mines and discovering high-grade resources. Across our business, we are focused on returns, particularly a +20% ROCE target, which underpins our overall business strategy.

Endeavour has developed a very robust organic project pipeline, with recently advanced PFS releases at both Fetekro and Kalana. Could you elaborate on your near-term exploration strategy?

Unlocking exploration value is an integral part of our strategy. We have one of the largest and most promising portfolios on the highly prospective and underexplored Birimian Greenstone Belt in West Africa. This region ranks as the number one globally for discoveries, with nearly 80 million ounces discovered in 10 years, and a total of 5 billion dollars spent, which accounts for approximately 10% of the global exploration budget. Since 2016, we have discovered 8.5 million ounces, at a cost of less than $25 per ounce, and consolidated our position on two world-class belts, the Hounde Belt in Burkina Faso and the Ity Belt in Côte d’Ivoire. With the newly acquired assets in our portfolio, our new 5-year exploration target is to discover 15-20 million ounces of Indicated resources over the next five years at an average cost of less than $25/oz. A key focus area will be on extending the mine lives of Sabodala-Massawa, Wahgnion, Mana, and Boungou to beyond 10 years to ensure their sustained contribution to our portfolio quality.

Endeavour has embedded ESG targets within its compensation schemes. Why do you think it’s important to incorporate ESG measures into management and governance plans? How else is Endeavour driving ESG implementation?

ESG is at the heart of what we do every day as a responsible gold miner and one of the largest private employers in West Africa. Our operations contribute to the revenues of the countries where we operate and are vitally important to the people we employ and the communities that we call home. Our integrated ESG strategy is centered around two key pillars: investing in our host countries and protecting the environment, supported by high standards of ethics and governance. On the social side, our priority areas include health, education, access to water and electricity, and economic development, including ECODEV, our impacting investing fund that invests in industries outside of mining. We have committed to a 30% reduction in emissions by 2030 and an ultimate goal of net zero by 2050 as part of our environmental strategy, which also focuses on water stewardship, biodiversity, and reducing plastic waste. We launched the Endeavour Foundation to implement sustainability projects at regional and national levels. Incorporating quantifiable ESG targets into our compensation schemes reinforces the importance of ESG to our business.

Why do you think gold companies are underrated by the public markets at the moment?

Falling gold prices earlier this summer impacted investor sentiment, despite the recent consolidation, strong dividend payments, and increasing ESG commitments we’ve seen in the industry. We believe that key to a re-rating of the sector is attracting generalist investors by focusing on shareholder returns, maintaining strong production levels and cash flow, maintaining net cash positions, and effectively mitigating risks. Investors today expect their investments to generate attractive returns while being sustainable and responsible. Therefore, showcasing responsible mining practices and strong ESG credentials will remain crucial. It is also important to demonstrate to investors that gold is a valuable asset to hold in their portfolios. Gold plays a vital role in renewable technologies and medical technologies and will continue to be important in our everyday lives, especially as we move towards a post-carbon world. Additionally, gold is often viewed as a “safe haven” asset, particularly in times of uncertainty, as we experienced during the initial months of the pandemic.

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