ENDEAVOUR REPORTS RECORD FY-2021 RESULTS Production of 1.54Moz at AISC of $885/oz Operating cash flow of $1.2 billion FY-2021 total shareholder return of $278m OPERATIONAL AND FINANCIAL HIGHLIGHTS
1
NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR REPORTS RECORD FY-2021 RESULTS
Production of 1.54Moz at AISC of $885/oz Operating cash flow of $1.2 billion FY-2021 total shareholder return of $278m
OPERATIONAL AND FINANCIAL HIGHLIGHTS
• Q4-2021 production of 398koz, up 4% over Q3-2021, while AISC increased by $11/oz to $915/oz
• Record FY-2021 production of 1,536koz, a 69% increase over FY-2020, while AISC remained stable at $885/oz
• Ninth consecutive year of achieving or beating annual production and AISC guidance
• Adjusted Net Earnings of $145m or $0.58/sh in Q4-2021; FY-2021 up $254m over FY-2020 to $577m (up 79% to $2.40/sh)
• Net loss attributable to shareholders of $103m or $0.41/sh in Q4-2021; which includes the impairment of $259m; FY-
2021 Net Earnings of $221m or $0.92/sh, up $0.22/sh compared to FY-2020
• Operating Cash Flow of $356m or $1.43/sh in Q4-2021; FY-2021 up $464m over FY-2020 to $1,175m (up 65% to $4.89/sh)
• Healthy balance sheet at year -end with Net Cash position of $76m achieved, after absorbing circa $330m of Teranga net
debt and paying strong shareholder returns during the year
SHAREHOLDER RETURNS PROGRAMME
• FY-2021 dividend of $140m, representing $15m more than the minimum committed dividend of $125m for the year; FY-
2022 minimum committed dividend set at $150m with strong potential for supplemental shareholder returns
• Share buybacks continue to supplement shareholder returns with a total of $138m worth of shares repurchased in FY-
2021, $44m of which were repurchased in Q4-2021
ORGANIC GROWTH
• Sabodala-Massawa Phase 1 expansion complete; robust organic growth pipeline with DFS underway for Sabodala-
Massawa Phase 2, Lafigué and Kalana projects
• Group M&I resources (excluding the divested Karma mine) increased by 1.0Moz year-on-year to 27.5Moz while P&P
reserves remained flat at 17.8Moz as new discoveries are in the process of being converted to reserves
• Group on track to discover 15-20Moz of Indicated resources over 2021-2025 period
London, 17 March 2022 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the
“Company”) is pleased to announce its operating and financial results for FY-2021, with highlights provided in Table 1 below.
Table 1: Consolidated Highlights
All amounts in US$ million, unless otherwise stated
THREE MONTHS ENDED YEAR ENDED 31 December
2021
30 September
2021
31 December
2020
31 December
2021
31 December
2020
Δ FY-2021 vs.
FY-2020
OPERATING DATA FROM ALL OPERATIONS
Gold Production, koz 398 382 344 1,536 908 +69%
All-in Sustaining Cost1, $/oz 915 904 803 885 873 +1%
Realised Gold Price, $/oz 1,787 1,763 1,841 1,773 1,760 +1%
CASH FLOW FROM CONTINUING OPERATIONS2
Operating Cash Flow before Changes in WC 316 327 289 1,167 629 +86%
Operating Cash Flow before Changes in WC1, $/sh 1.27 1.31 1.77 4.86 4.59 +6%
Operating Cash Flow 356 312 375 1,175 711 +65%
Operating Cash Flow1, $/sh 1.43 1.25 2.30 4.89 5.18 (6)%
PROFITABILITY FROM CONTINUING OPERATIONS2
Net (Loss)/Earnings Attributable to Shareholders (103) 117 65 221 96 +130%
Net (Loss)/Earnings per Share, $/sh (0.41) 0.47 0.40 0.92 0.70 +31%
Adjusted Net Earnings Attributable to Shareholders1 145 152 154 577 323 +79%
Adjusted Net Earnings per Share1, $/sh 0.58 0.61 0.95 2.40 2.36 +2%
EBITDA1 123 344 227 1,139 530 +115%
Adjusted EBITDA1 371 381 329 1,506 771 +95%
SHAREHOLDER RETURNS
Shareholder dividends paid — 70 — 130 — n.a.
Share buyback (commenced in Q2-2021) 44 35 — 138 — n.a.
FINANCIAL POSITION HIGHLIGHTS
(Net Cash), Net Debt1 (76) 70 (75) (76) (75) +1%
Net Debt / Adjusted EBITDA (LTM) ratio1 (0.05) 0.05 (0.09) (0.05) (0.09) (44)%
1This is a non -GAAP measure. Refer to the non -GAAP measure section of the Management Report. 2From Continuing Operations excludes the Agbaou mine
which was divested on 1 March 2021.
2
Management will host a conference call and webcast, today, on Thursday 17 March at 9:30 am EST / 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.
Sebastien de Mo ntessus, President and CEO, commented: “2021 was a very successful year for Endeavour during which we
delivered against all our objectives. Our focus was on executing our capital allocation priorities to fully deliver our shareholder
returns programme, while supporting our operations, continuing to strengthen our balance sheet and investing in exploration.
Operationally, after the rapid and successful integration of the Teranga and SEMAFO assets, we were able to achieve a record
year with production in excess of 1.5Moz, ensuring we have now met or exceeded guidance for the ninth consecutive year.
Our strong operating performance generated $1.2 billion in operating cash flow whi ch has allowed us to deliver robust
shareholder returns while improving our net cash position. Since commencing our shareholder returns programme, marked by
the first dividend payment in early 2021, we have already returned $338 million by way of dividends and buybacks. On the
balance sheet front, we have re-established a strong net cash position after absorbing circa $330 million of net debt following the
Teranga acquisition.
We are also pleased to have recently completed the sale of our non- core Karma mine which will allow us to focus management
efforts on our high margin, long-life and low cost core assets.
We have entered 2022 with considerable momentum and we expect to deliver another strong year for the Group. We will remain
focussed on prudent balanc e sheet management, cash flow generation and shareholder returns while we continue to drive long-
term value for shareholders through our key growth projects and our focus on exploration."
UPCOMING CATALYSTS
The key upcoming expected catalysts are summarised in the table below.
Table 2: Key Upcoming Catalysts
TIMING CATALYST
Q1-2022 Sabodala-Massawa Completion of Definitive Feasibility Study for Phase 2
Q2-2022 Sabodala-Massawa Launch of Phase 2 construction
Q2-2022 Lafigue deposit - Fetekro property Completion of Definitive Feasibility Study
Q3-2022 Shareholder returns Payment of H1-2022 dividend
Q3-2022 Mana Wona Underground first stope production
2021 FULL YEAR PERFORMANCE AND 2022 GUIDANCE
• FY-2021 production from all operations amounted to 1,536koz, beating the top end of the guided 1,365 -1,495koz range, due
to out -performance at the Houndé, Ity, Sabodala -Massawa and Mana mines. FY -2021 all -in sustaining costs ("AISC")
amounted to $885/oz, achieving the guided $850-900/oz range in spite of inflationary pressures. Further details are provided
in the below “Operations Review” section.
Table 3: FY-2021 Performance vs. FY-2021 Guidance1
FY-2021 2021 FULL YEAR GUIDANCE
Production, koz 1,536 1,365 — 1,495
AISC, $/oz 885 850 — 900
1Production and AISC from all operations includes Agbaou until 1 march 2021 and the Teranga assets from 10 February 2021
• Following the divestment of the non -core Karma mine that was announced on 11 March 2022, Endeavour has updated its
production and AISC guidance for its continuing operations to account for the removal of Karma’s guided production, with
guidance for the other operations remaining unchanged. As a result, the Group’s updated 2022 guidance for continuing
operations amounts to 1,315-1,400koz at an AISC of $880-930/oz.
Table 4: Group Production and AISC FY-2022 Guidance
PREVIOUS FY-2022 GUIDANCE UPDATED FY-2022 GUIDANCE1 VARIANCE
Gold Production, koz 1,400 — 1,500 1,315 — 1,400 (85) — (100)
All-in Sustaining Cost2, $/oz 890 — 940 880 — 930 (10) — (10)
1Updated FY-2022 guidance excludes production from the Karma mine, which was divested on 10 March 2022.
3
SHAREHOLDER RETURNS PROGRAMME
• In FY-2021, Endeavour implemented a shareholder returns programme that is composed of a minimum progressive dividend
of $125.0 million, $150.0 million and $175.0 million for FY -2021, FY -2022, and FY -2023 respectively, that may be
supplemented with additional dividends and buybacks, provided that the prevailing gold pric e remains above $1,500/oz and
that Endeavour’s leverage remains below 0.5x Net Debt / adjusted EBITDA.
• Endeavour’s FY-2021 declared dividends amounted to $140.0 million or $0.56 per share, which represents $15.0 million more
than the minimum dividend commitment, reiterating Endeavour's strong focus on paying supplemental shareholder returns.
• Shareholder returns are being supplemented through the Company’s share buyback programme . A total of $137.9 million, or
6.0 million shares have been repurchased from the start of the buyback programme on 9 April 2021 until year -end 2021, of
which 1.9 million shares were repurchased in Q4-2021 for $43.9 million.
• As shown in the table below, s ince the launch of the Company’s shareholder returns programme in early 2021, a cumulative
$338.0 million has been delivered to shareholders in the form of dividends and share buybacks.
Table 5: Cumulative Shareholder Returns Delivered
TOTAL SHAREHOLDER
RETURNS, $m
FY-2020 dividend (paid in Q1-2021) 60
H1-2021 dividend (paid in Q3-2021) 70
H2-2021 dividend (paid in Q1-2022) 70
TOTAL DIVIDENDS 200
Share buyback (bought in FY-2021) 138
TOTAL SHAREHOLDER RETURNS 338
• Endeavour has received approval from the Toronto Stock Exchange (“TSX”) to renew its Normal Course Issuer Bid (“NCIB”) for
its share repurchase programme, in order to continue to supplement its minimum progressive dividend and maximize value
for its shareholders. Under the NCIB, Endeavour is entitled to repurchase up to 5% of its total issued and outstanding shares
as of 14 March 2022, or 12,458,989 shares, during the 12 month period of the NCIB, and up to 25% of the average daily
trading volume (“ADTV”) for the six months ended 28 February 2022, calculated in accordance with the rules of the TSX for
purposes of the NCIB or 195,081 shares during each trading day, excluding purchases made in accordance with the block
purchase exemptions under applicable TSX policies. All ordinary shares repurchased under the share repurchase programme
will be cancelled.
• The renewed NCIB will commence on 22 March 2022 and end on 21 March 2023, or such earlier date as Endeavour may
complete its purchases pursuant to the notice of intention filed with the TSX.
• Under Endeavour’s prior NCIB, that commenced on 22 March 2021 and ends on 21 March 2022, Endeavour had obtained
approval to purchase up to 12,172,871 ordinary shares, and purchased a total of 7, 136,656 ordinary shares at a weighted
average price of approximately CAD 29.32 per share.
• Endeavour’s previously announced automatic share purchase agreement with Stifel Nicolaus Europe Limited (“Stifel”) will
continue to allow for the purchase of ordinary shares, subject to certain trading parameters, at times when Endeavour would
not be active in the market due to regulatory close periods, its own internal trading black -out periods, insider trading rules or
otherwise. Outside of these periods, ordinary shares may be repurcha sed in accordance with management’s discretion and in
compliance with applicable law.
• Share purchases will be made by Stifel (or through its agent, Stifel Nicolaus Canada, Inc.) on the TSX and the London Stock
Exchange, as well as through other designated exchanges and alternative trading systems in accordance with applicable
regulatory requirements. The price paid for repurchased ordinary shares will be the market price of such ordinary shares at
the time of acquisition or such other price as may be permit ted in accordance with applicable regulatory requirements and
Endeavour’s existing shareholder authority to conduct share repurchases. Endeavour intends to ask shareholders to renew
that authority at its 2022 AGM.
4
CASH FLOW AND LIQUIDITY SUMMARY
The table below presents the cash flow and Net Debt position for Endeavour for the three and twelve month period ending 31
December 2021, with accompanying notes below.
Table 6: Cash Flow and Net Cash/(Net Debt) Position
THREE MONTHS ENDED YEAR ENDED
In US$ million unless otherwise specified 31 December
2021
30 September
2021
31 December
2020
31 December
2021
31 December
2020
Net cash from (used in), as per cash flow statement:
Operating cash flows before changes in working capital
from continuing operations 316 327 289 1,167 629
Changes in working capital 40 (15) 87 8 82
Cash (used by)/generated from discontinued operations — — (11) (9) 38
Cash generated from operating activities [1] 356 313 364 1,166 749
Cash used in investing activities [2] (132) (137) (97) (512) (160)
Cash used in financing activities [3] (71) (233) (80) (431) (71)
Effect of exchange rate changes on cash (7) (15) 4 (32) 7
INCREASE/(DECREASE) IN CASH 146 (73) 191 192 525
Cash position at beginning of period 760 833 523 715 190
CASH POSITION AT END OF PERIOD [4] 906 760 715 906 645
Cash included in assets held for sale — — — — 70
Corporate bond (500) — — (500) —
Convertible senior bond (330) (330) (330) (330) (330)
Drawn portion of corporate loan facility [5] — (500) (310) — (310)
NET CASH/(NET DEBT) POSITION [6] 76 (70) 75 76 75
Net debt/Adjusted EBITDA (LTM) ratio1 [7] (0.05) x 0.05 x (0.09) x (0.05) x (0.09) x
1Net cash / 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 $43.4 million from $312.5 million (or $1.25 per share) in Q3- 2021 to $355.9 million (or
$1.43 per share) in Q4 -2021 mainly due to an increase in working capital, a higher realised gold price and lower income
taxes paid, while gold sales remained flat. Operating cash flow before working capital decreased by $10.8 million from
$327.2 million (or $1.31 per share) in Q3- 2021 to $316.4 million (or $1.27 per share) in Q4- 2021. Op erating cash flows
increased by $417.2 million from $748.9 million (or $5.46 per share) in FY -2020 to $1,166.1 million (or $4.86 per share) in
FY-2021 due to the addition of the acquired Wahgnion and Sabodala -Massawa mines on 10 February 2021 and the inclu sion
of the Boungou and Mana mines for the full year in 2021. The reduced operating cash flow per share in FY -2021 compared
to FY-2020 is due to the reduction in working capital inflows and the increase in income taxes paid. Notable variances are
summarised below:
• Working capital was an inflow of $39.5 million in Q4 -2021, an increase of $54.2 million over Q3- 2021 mainly due to
decreases in receivables, decreases in prepaid expenses and increases in trade and other payables, which was slightly
offset by a reduction i n inventories. Trade and other payables was an inflow of $27.4 million which mainly relates to an
increase in payables at corporate, Ity, Houndé and Mana, which was slightly offset by a decrease in payables at Karma.
Receivables were an inflow of $7.8 mill ion mainly due to a decrease in receivables at Ity related to amounts received
from a local contractor, Societe de Forage et des Travaux Publics (“SFTP”). Prepaid expenses were an inflow of $12.4
million mainly due to a decrease in prepayments at Wahgnion, Houndé and Boungou. Inventories were an outflow of
$8.1 million for Q4-2021 due primarily to an increase in the value of long-term stockpiles at Ity.
• Gold sales decreased slightly from 392koz in Q3- 2021 to 390koz in Q4- 2021. The realised gold price for Q 4-2021 was
$1,787/oz compared to $1,763/oz for Q3-2021 and was $1,773/oz for FY-2021 compared to $1,761/oz for FY-2020. Total
cash cost per ounce increased from $743/oz in Q3- 2021 to $756/oz in Q4- 2021 due to lower costs at the Ity, Sabodala-
Massawa and Wahgnion mines.
• Income taxes paid decreased by $13.3 million compared to Q3- 2021 to $42.1 million in Q4- 2021, due to lower taxes
paid at Ity as a result of less ounces sold. Taxes paid in Q4 -2021 included a payment of $12.1 million related to the
settlement of a tax assessment related to the Massawa project.
2) Cash flows used by investing activities remained consistent with the prior quarter, amounting to $132.3 million in Q4- 2021 as
sustaining capital expenditures decreased while non-sustaining capital expenditure increased, as described below:
5
• Sustaining capital from continuing operations decreased by $11.3 million from $54.5 million in Q3- 2021 to $43.2 million
in Q4-2021 due to lower sustaining capital at Houndé, Sabodala -Massawa and Boungou primarily due to less planned
waste capitalisation.
• Non-sustaining capital from continuing operations increased from $44.8 million in Q3- 2021 to $60.4 million in Q4- 2021,
due to fleet and plant optimisations at Ity, Houndé and Sabodala-Massawa and to pre-stripping activities at Boungou.
• Growth capital spend decreased by $0.9 million from Q3- 2021 to $11.8 million in Q4- 2021 and primarily relates to the
Sabodala-Massawa Phase 1 expansion and ongoing Definitive Feasibility Studies (“DFS”) studies.
3) Cash flows used by financing activities decreased by $161.7 million to $71.2 million in Q4- 2021. During Q4- 2021, the
Company repaid long-term debt of $500.0 million, received proceeds from the issue of Senior Notes of $494.6 million, made
payments towards the Company’s share buyback programme of $39.7 million and payments of financing and other fees of
$19.4 million.
4) At quarter -end, Endeavour’s liquidity remained strong with $906.2 million of cash on hand and the full $500.0 million
quantum undrawn under 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 Q4- 2021, Endeavour restructured its debt replacing its co rporate loan facility with
$500.0 million fixed rate senior notes and a $500.0 million unsecured RCF that remained undrawn at year -end. Endeavour’s
debt restructuring is described in the below “Debt Refinancing” section.
6) Endeavour ended FY-2021 with a net cash financial position of $76.2 million. Net debt decreased by $145.8 million during
Q4-2021 despite completing $39.7 million of shares buybacks. Net cash remained flat compared to the beginning of the year
despite absorbing approximately $332.0 million of Net Debt from Teranga in Q1-2021.
7) Given the net cash position, the net debt / Adjusted EBITDA (LTM) leverage ratio stood at (0.05)x at year -end, down from
0.05x in Q3-2021, 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 leverage ratio
remained stable year-over-year.
DEBT REFINANCING
• 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 revolving
credit facility 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 outstandi ng under the Company's existing loan facilities and to pay fees and expenses in connection
with the offering of the Notes. The New RCF replaced the bridge facility and existing revolving credit facility, which were
cancelled upon completion of the Notes offering.
• The New RCF and Notes extend the maturities of the Company’s existing debt structure, while providing enhanced financial
flexibility and ample liquidity headroom.
6
EARNINGS FROM CONTINUING OPERATIONS
The table below presents the earnings and adjusted earnings for Endeavour for the three and twelve month period ending 31
December 2021, with accompanying notes below.
Table 7: Earnings from Continuing Operations
THREE MONTHS ENDED YEAR ENDED
31 December
2021
30 September
2021
31 December
2020
31 December
2021
31 December
2020
Revenue [8] 697 692 553 2,778 1,424
Operating expenses [9] (250)
(257)
(204)
(1,063)
(575)
Depreciation and depletion [9] (202)
(158)
(93)
(649)
(261)
Royalties [10] (45)
(43)
(38)
(176)
(99)
Earnings from mine operations 201 235 218 891 489
Corporate costs [11] (20)
(12)
(8)
(63)
(24)
Acquisition and restructuring costs [12] (1)
(2)
(14)
(29)
(40)
Impairment charge of mining interests [13] (259)
— (65)
(259)
(65)
Share-based compensation (7)
(7)
(5)
(32)
(19)
Exploration costs (5)
(3)
(1)
(24)
(5)
(Loss)/earnings from mine operations (92) 211 126 483 338
Gain/(loss) on financial instruments [14] 16 (20)
22 23 (79)
Finance costs (25)
(15)
(13)
(66)
(49)
Other (expense)/income (2)
(3)
(14)
(16)
9
(Loss)/earnings before taxes (104) 172 121 424 220
Current income tax expense [15] (39)
(40)
(51)
(196)
(123)
Deferred income tax recovery [16] 34 4 3 52 37
Net comprehensive (loss)/earnings from continuing
operations [17] (109) 136 74 279 134
Add-back adjustments [18] 248 36 102 367 242
Adjusted net earnings from continuing operations [19] 139 172 175 647 376
Portion attributable to non-controlling interests (7)
20 21 70 53
Adjusted net earnings from continuing operations
attributable to shareholders of the Company [19] 145 152 154 577 323
(Loss)/earnings per share from continuing operations (0.41)
0.47 0.40 0.92 0.70
Adjusted net earnings per share from continuing
operations
0.58 0.61 0.95 2.40 2.36
NOTES:
8) Revenue increased by $5.5 million in Q4 -2021 over Q3 -2021 mainly due to the higher realised gold price for Q4 -2021 of
$1,787/oz compared to $1,763/oz for Q3 -2021, which was offset slightly by lower gold sales at the Boungou, Ity and Karma
mines. Revenue for FY-2021 increased by 95% compared to FY -2020 due to the acquired Wahgnion and Sabodala -Massawa
mines, which contributed a total of $926.0 million to revenue and the inclusion of the Boungou and Mana mines for the full
year in 2021, which contributed a total of $682.9 million to revenue for FY -2021. In addition, gold sales at the Company’s
three legacy mines increased by 76koz in FY -2021 compared to FY -2020, favourably impacting revenue by $135.9 million.
The realised gold price also increased from $1,761 per ounce in FY-2020 to $1,773 per ounce in FY-2021 which accounted for
an increase in revenue of approximately $30.0 million for the Company’s three legacy continuing operations.
9) Operating expenses decreased by $7.0 million in Q4- 2021 compared to Q3 -2021 due to decreased levels of production at
the Boungou, Ity, Sabodala -Massawa and Karma m ines. Depreciation and depletion increased by $43.7 million in Q4- 2021
mainly due to additional depletion of the mining interests relating to TSFs based on the updated capacity estimates at year -
end. FY-2021 operating expenses and depreciation increased ma inly due to the acquired Wahgnion and Sabodala -Massawa
mines and the inclusion of the Boungou and Mana mines for the full year in 2021.
10) Royalties slightly increased to $44.9 million in Q4-2021 over Q3-2021 due to higher realised gold prices, while the underlying
royalty rate stood at 5% across all assets.
7
11) Corporate costs were $20.3 million for Q4 -2021 compared to $12.0 million for Q3 -2021. The increase in corporate costs are
primarily due to costs associated with corporate integration and listing on the LSE.
12) Acquisition and restructuring costs were $1.0 million in Q4 -2021 compared to $1.8 million in Q3- 2021. Costs decreased in
Q4-2021 compared to the prior period due to the completion of several integration projects earlier in the year, after the
completion of the acquisition of Teranga.
13) Impairment of mining interests and goodwill was $259.4 million in Q4- 2021 and FY-2021. The impairment was mainly due to
the impairment of the Boungou mine of $246.3 million and $11.7 million for the Karma mine. The impairment of the
Boungou mine was driven by a revised life of mine plan which reflects the increased operating costs, lower than expected
production and processed grades, and a decrease in the estimated resource to reserve conversion and explor ation potential
surrounding the Boungou mine. The impairment of the Karma mine is based on the fair value of the total consideration to
be received following disposal of the Karma mine.
14) The gain on financial instruments was $15.6 million in Q4- 2021 compared to a loss of $20.0 million in Q3- 2021. The gain in
Q4-2021 was mainly due to an unrealised gain on revaluation of the conversion option on the convertible notes of $8.7
million, a gain on other financial instruments of $5.8 million, gain on change in fair value of the call rights and warrant
liabilities of $1.6 million and $0.8 million respectively, and a gain on the gold collar of $6.2 million and a realised gain on
forward sale of $3.7 million which are both detailed below. These gains were offset by foreign exchange losses of $8.1
million, a loss on the change in fair value of receivable measured at fair value through profit and loss of $2.3 million. The
Company entered into a revenue protection programme for a portion of its production for 2022 and 2023 in order to protect
against gold price volatility during its upcoming construction phase. The programme is structured as a low premium collar
with a put price of $1,750 per ounce and a call price of $2,100 per ounce for a total of approximately 600,000 ounces. The
premium for the collar of $10.0 million was paid in Q4 -2021. In addition, the Company entered into a forward sales contract
for approximately 540,000 ounces of production at average gold price of approximately $1,830 per ounce.
15) Current income tax expense was $39.4 million in Q4 -2021 compared to $40.4 million in Q3- 2021. Current income tax
expense for Q4-2021 decreased slightly compared to Q3- 2021 due to lower income tax expense at Boungou associated with
lower production levels and revenue generated.
16) Deferred income tax recovery was $34.1 million In Q4- 2021 compared to a recovery of $4.4 million in Q3- 2021. The increase
is due to the timing difference between recognising earnings and taxable earnings related to the impairment s at Boungou
and Karma.
17) Net comprehensive loss of $109.4 million was recorded for Q4 -2021 compared to a gain of $136.4 million in Q3- 2021 due to
impairments charges as described in Note 14.
18) For Q4 -2021, adjustments mainly included impairments on mineral interests of $259.4 million, a gain on financial
instruments of $15.6 million, non -cash expense of inventory associated with the fair value adjustment on purchase price
allocation of Teranga of $1.3 million, acquisition and restructuring costs of $1.0 million and other non -recurring expenses of
$2.1 million. Full year adjustments include impairments on mineral interests of $259.4 million, non -cash expense of
inventory associated with the fair value adjustment on purchase price allocation of SEMAFO a nd Teranga of $85.4 million,
acquisition and restructuring costs of $29.5 million, gain on financial instruments of $22.9 million, net loss from
discontinued operations of $3.7 million and other non-recurring expenses of $16.0 million.
19 Adjusted net ear nings attributable to shareholders for continuing operations were $145.3 million (or $0.58 per share) in Q4-
2021 a decrease compared to $152.3 million (or $0.61 per share) in Q3- 2021 due to increased depreciation and depletion,
corporate costs and finance costs, which were slightly offset by an increase in deferred income tax recovery.
8
Q4-2021 & FY-2021 OPERATIONS REVIEW
• Continued strong safety record for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) of 0.20 for the trailing twelve
months ending 31 December 2021.
• FY-2021 production from continuing operations amounted to a record 1,524koz, an increase of 721koz, or 90% over FY -2020
due to the addition of Sabodala- Massawa and Wahgnion in the fi rst quarter of the year, full year production from Boungou
and Mana (which were acquired in 2020), and stronger performances at Houndé and Ity. Over the same period, AISC from
continuing operations amounted to $883/oz, an increase of $30/oz or 4% over FY-2020 due to increases at the Group’s legacy
assets, which were partially offset by the addition of the low cost Sabodala-Massawa mine.
• Q4-2021 production from continuing operations amounted to 398koz, an increase of 16koz or 4% over Q3-2021, as a result of
stronger performance across Houndé, Mana and Wahgnion. AISC from continuing operations increased by $11/oz or 1% to
$915/oz in Q4- 2021 due to higher costs at Boungou, Mana and Karma which were partially offset by lower costs at the
flagship assets Houndé, Ity and Sabodala-Massawa as well as Wahgnion.
Table 8: Consolidated Group Production
THREE MONTHS ENDED YEAR ENDED
(All amounts in koz, on a 100% basis)
31 December
2021
30 September
2021
31 December
2020
31 December
2021
31 December
2020
Boungou1 35 41 64 174 94
Houndé 77 70 101 293 277
Ity 60 61 61 272 213
Karma 20 21 28 88 98
Mana1 54 49 61 205 121
Sabodala-Massawa2 105 106 — 345 —
Wahgnion2 47 34 — 147 —
PRODUCTION FROM CONTINUING OPERATIONS 398 382 315 1,524 803
Agbaou3 — — 28 13 105
GROUP PRODUCTION 398 382 344 1,536 908
1Included for the post acquisition period commencing 1 July 2020.2Included for the post acquisition period commencing 10 February 2021. 3Divested on 1 March
2021.
Table 9: Consolidated All-In Sustaining Costs1
(All amounts in US$/oz)
THREE MONTHS ENDED YEAR ENDED
31 December
2021
30 September
2021
31 December
2020
31 December
2021
31 December
2020
Boungou1 825 800 534 801 609
Houndé 874 921 612 843 837
Ity 854 915 1,055 836 807
Karma 1,300 1,259 1,132 1,193 1,005
Mana1 1,116 1,029 803 1,026 853
Sabodala-Massawa2 592 655 — 645 —
Wahgnion2 1,066 1,097 — 994 —
Corporate G&A 48 23 28 32 29
AISC FROM CONTINUING OPERATIONS 915 904 779 883 853
Agbaou3 — — 1,068 1,132 1,027
GROUP AISC 915 904 803 885 873
1Included for the post acquisition period commencing 1 July 2020.2Included for the post acquisition period commencing 10 February 2021. 3Divested on 1 March
2021.