Endeavour Mining : Quarterly Reporting Document

Q1

INTEGRATED MANAGEMENT REPORT AND FINANCIAL

STATEMENTS

For the three and nine months ended 30 September 2022 and 2021

(Expressed in Millions of United States Dollars) (Unaudited)

SECTION 1

MANAGEMENT REPORT

Table of Contents
MANAGEMENT REPORT
1. BUSINESS OVERVIEW...............................................................................................................................................	3
1.1. OPERATIONS DESCRIPTION..........................................................................................................................	3
2. HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2022 ...................................................	4
3. ENVIRONMENTAL, SOCIAL AND GOVERNANCE ......................................................................................................	5
3.1. HEALTH AND SAFETY....................................................................................................................................	5
3.2. ESG UPDATES AND PERFORMANCE.............................................................................................................	5
4. OPERATIONS REVIEW ..............................................................................................................................................	8
4.1. OPERATIONAL REVIEW SUMMARY..............................................................................................................	8
4.2. BOUNGOU GOLD MINE................................................................................................................................	9
4.3. HOUNDÉ GOLD MINE...................................................................................................................................	11
4.4. ITY GOLD MINE ............................................................................................................................................	13
4.5. MANA GOLD MINE.......................................................................................................................................	15
4.6. SABODALA-MASSAWAGOLD MINE.............................................................................................................	17
4.7. WAHGNION GOLD MINE..............................................................................................................................	19
4.8. DISCONTINUED OPERATIONS - KARMA MINE .............................................................................................	21
5. FINANCIAL REVIEW ..................................................................................................................................................	22
5.1. STATEMENT OF COMPREHENSIVE EARNINGS.............................................................................................	22
5.2. CASH FLOWS ................................................................................................................................................	24
5.3. SUMMARISED STATEMENT OF FINANCIAL POSITION .................................................................................	26
5.4. LIQUIDITY AND FINANCIAL CONDITION.......................................................................................................	27
5.5. RELATED PARTY TRANSACTIONS .................................................................................................................	28
5.6. ACCOUNTING POLICIES AND CRITICAL JUDGEMENTS.................................................................................	28
6. NON-GAAPMEASURES ............................................................................................................................................	29
6.1. EBITDA AND ADJUSTED EBITDA...................................................................................................................	29
6.2. CASH AND ALL-INSUSTAINING COST PER OUNCE OF GOLD SOLD .............................................................	30
6.3. ADJUSTED NET EARNINGS AND ADJUSTED NET EARNINGS PER SHARE .....................................................	32
6.4. OPERATING CASH FLOW PER SHARE ...........................................................................................................	32
6.5. NET CASH/ADJUSTED EBITDA RATIO ...........................................................................................................	33
6.6. RETURN ON CAPITAL EMPLOYED.................................................................................................................	33
7. QUARTERLY AND ANNUAL FINANCIAL AND OPERATING RESULTS.........................................................................	34
8. PRINCIPAL RISKS AND UNCERTAINTIES ...................................................................................................................	35
9. CONTROLS AND PROCEDURES ................................................................................................................................	38
9.1. DISCLOSURE CONTROLS AND PROCEDURES................................................................................................	38
9.2. INTERNAL CONTROLS OVER FINANCIAL REPORTING ..................................................................................	38
9.3. LIMITATIONS OF CONTROLS AND PROCEDURES .........................................................................................	38

This Management Report should be read in conjunction with Endeavour Mining plc's ("Endeavour", the "Company", or the "Group") condensed interim consolidated financial statements for the three and nine months ended 30 September 2022 and 2021 and Endeavour Mining plc's audited consolidated financial statements for the years ended 31 December 2021 and 2020 and notes thereto. The condensed interim consolidated financial statements have been prepared in accordance with UK adopted international accounting standards and International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") or ("GAAP"), and are in compliance with the requirements of the Companies Act 2006 and are also in accordance with the requirements of the Disclosure Guidance and Transparency Rules in the United Kingdom as applicable to interim financial reporting. Endeavour Mining plc's audited consolidated financial statements for the years ended 31 December 2021 and 2020 and notes thereto has been prepared in accordance with IFRS. This Management Report is prepared as an equivalence to the Company's Management Discussions & Analysis ("MD&A") which is the Canadian filing requirement in accordance with National Instrument 51-102,Continuous Disclosure Obligations ("NI 51-102"), and includes all of the disclosures as required by NI 51-102.

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This Management Report contains "forward-looking statements" that are subject to risk factors set out in a cautionary note contained herein. The reader is cautioned not to place undue reliance on forward-looking statements. All figures are in United States Dollars, unless otherwise indicated. Tabular amounts are in millions of United States Dollars, except per share amounts and where otherwise indicated. This Management Report is prepared as of 9 November 2022. Additional information relating to the Company is available, including the Company's prospectus (on the Company's website at www.endeavourmining.com) and the Company's Annual Information Form (available on SEDAR at www.sedar.com).

1. BUSINESS OVERVIEW

1.1. OPERATIONS DESCRIPTION

Endeavour is a multi-asset gold producer focused on West Africa and dual-listed on the Toronto Stock Exchange ("TSX") and the London Stock Exchange ("LSE") under the symbol EDV on both exchanges and is quoted in the United States on the OTCQX International (symbol EDVMF). The Company has six operating assets consisting of the Boungou, Houndé, Mana and Wahgnion mines in Burkina Faso, the Ity mine in Côte d'Ivoire, the Sabodala-Massawa mine in Senegal, two development projects (Lafigué and Kalana) in Côte d'Ivoire and Mali and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d'Ivoire, Mali, Senegal, and Guinea. On 10 March 2022, the Company completed the sale of its Karma mine in Burkina Faso. On 17 October 2022, the Company launched construction of the Lafigué project after releasing results of the Definitive Feasibility Study ("DFS").

As a leading global gold producer and the largest in West Africa, Endeavour is committed to principles of responsible mining and delivering sustainable value to its employees, stakeholders, and the communities where it operates.

Figure 1: Endeavour's Principal Properties in West Africa as at 9 November 2022

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2. HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2022

Table 1: Consolidated Highlights
		THREE MONTHS ENDED	NINE MONTHS ENDED
		30 September	30 September	30 September	30 September
($m)	Unit	2022	2021	2022	2021
Operating data from continuing operations
Gold produced	oz	342,743	361,706	1,044,936	1,058,330
Gold sold	oz	338,054	371,739	1,040,836	1,108,007
Realised gold price1	$/oz	1,679	1,768	1,810	1,776
All-in sustaining costs ("AISC") per ounce sold 2	$/oz	960	885	920	854
Cash flow data from continuing operations
Operating cash flows before working capital	$	195.1	317.3	827.9	815.5
Operating cash flows before working capital per share2	$/share	0.79	1.27	3.34	3.44
Operating cash flows	$	153.7	309.3	706.3	797.4
Operating cash flows per share2	$/share	0.62	1.24	2.85	3.37
Earnings data from continuing operations
Revenue1	$	567.6	657.4	1,883.4	1,967.5
Earnings from mine operations	$	127.5	237.0	603.7	694.4
Net comprehensive earnings attributable to shareholders	$	57.6	121.9	190.3	331.6
Basic earnings per share attributable to shareholders	$/share	0.23	0.49	0.77	1.40
EBITDA2,3	$	302.0	338.8	937.2	985.3
Adjusted EBITDA2,3	$	255.7	369.8	981.9	1,089.9
Adjusted net earnings attributable to shareholders2	$	36.5	168.0	281.2	449.3
Adjusted net earnings per share attributable to shareholders2	$/share	0.15	0.67	1.13	1.90
Balance sheet data
Cash	$	832.5	760.4	832.5	760.4
Net cash/(Net debt)2	$	2.5	(69.6)	2.5	(69.6)
Net cash/(Net debt)/Adjusted EBITDA (LTM) ratio2,3	:	-	(0.05)	-	(0.05)

• Revenue and realised gold price are inclusive of the Sabodala-Massawa stream.

• This is a non-GAAP measure. Refer to the non-GAAP measure section of this Management Report.

• EBITDA is defined as earnings before interest, taxes, depreciation and depletion; LTM is defined as last twelve months.

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