Exploring the true potential of the Karelian Gold Line Endomines AB (publ) AGM 20th April 2017
Disclaimer Exploring the true potential of the Karelian Gold Line Statements in this presentation which are not purely historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance are -looking. Investors are advised that by their nature as visual aids, presentations provide information in a summary form and are prepared as a aid and support - not a standalone document. Please note that such forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in Finland, and lack of appropriate funding, all of which could among other things, prevent any of the forward looking statements in this presentation from coming to fruition or lead to a delay in the development of mining operations. 2
Endomines AB in a nutshell Exploring the true potential of the Karelian Gold Line Quoted on NASDAQ OMX Stockholm and OMX Helsinki Focus on gold production and exploration along the Karelian Gold Line - 40 km of gold prospective greenstone belt Production target 2017: 300-350 kg gold/year Long term development plans implemented Strong Social License to operate Finland Gold Industrial mineral Ilmenite Gold Pampalo Karelian Gold Line Helsinki 3
Pampalo in the Centre of the Karelian Gold Line Discovered in 1990 and explored by Finnish Geological Survey Developed by Outokumpu 1995-1999 as an open pit and decline operation down to 280m underground Historical production 115,000 tons of ore 15.3 g/ton strong indication of high grade deposits in the area Efficient production plant: The initial design capacity of 230,000 tpa in 2011 was successfully upgraded in 2013 to > max 450,000 tpa High utilization rate 93% Personnel Significant local employer 70 % locals 45 own staff and 30 contractors Strong social license and local support for operations Company applies Zero Harm-policy in all operations Good safety performance No environmental issues 4 Exploring the true potential of the Karelian Gold Line
Pampalo Gold Mine Mucking Ventilation raise drifting 14 Apr 2010 5 25-Apr-17
Pampalo mining principle Longitudinal projection Drifting Raise Long hole drilling Ore Backfilling Cable bolt holes for ground support Blasting rings Charging RC loading Unconsolidated backfill CRF Diamond drill holes with assays Horisontal pillar 20 m Cross section
Pampalo processing 4 th Sept 2012 Trucking Flotation Mine Drainage Water Crusher Feeder Fines Classification Coarse fraction Screen Tailings Storage Facility Crushed ore stockpile Grinding mills Gravimetric circuit No cyanide or excess strong acids used No harmful materials in tailings No Acid Mine Drainage (AMD) expected ~100 % water recirculation Gravimetric concentrate 20-50 % Au Flotation concentrate ~4-6 000 t/a; 100-200 g/t Au 7
Environmental Exploring the true potential of the Karelian Gold Line Zero Harm policy: - No accidents - No adverse environmental incidents Solids in the discharge water Nickel in the discharge water 25 1200 20 1000 Ni-content mg/l 15 10 5 Solids Limit μg/l 800 600 400 200 Limit Potable water 0 17.10.2012 17.12.2012 17.2.2013 17.4.2013 17.6.2013 17.8.2013 17.10.2013 17.12.2013 17.2.2014 17.4.2014 17.6.2014 17.8.2014 17.10.2014 17.12.2014 17.2.2015 17.4.2015 17.6.2015 17.8.2015 17.10.2015 17.12.2015 17.2.2016 17.4.2016 17.6.2016 17.8.2016 0 17.10.2012 17.12.2012 17.2.2013 17.4.2013 17.6.2013 17.8.2013 17.10.2013 17.12.2013 17.2.2014 17.4.2014 17.6.2014 17.8.2014 17.10.2014 17.12.2014 17.2.2015 17.4.2015 17.6.2015 17.8.2015 17.10.2015 17.12.2015 17.2.2016 17.4.2016 17.6.2016 17.8.2016 12 10 8 6 4 2 0 Discharge water ph Leväkasvun aiheuttama poikkeama 17.10.2012 17.12.2012 17.2.2013 17.4.2013 17.6.2013 17.8.2013 17.10.2013 17.12.2013 17.2.2014 17.4.2014 17.6.2014 17.8.2014 17.10.2014 17.12.2014 17.2.2015 17.4.2015 17.6.2015 17.8.2015 17.10.2015 17.12.2015 17.2.2016 17.4.2016 17.6.2016 17.8.2016 ph Lower limit Upper limit μg/l 250 200 150 100 50 0 Arsen in the discharge water 17.10.2012 17.12.2012 17.2.2013 17.4.2013 17.6.2013 17.8.2013 17.10.2013 17.12.2013 17.2.2014 17.4.2014 17.6.2014 17.8.2014 17.10.2014 17.12.2014 17.2.2015 17.4.2015 17.6.2015 17.8.2015 17.10.2015 17.12.2015 17.2.2016 17.4.2016 17.6.2016 17.8.2016 As content Limit Potable water 8
LTIFR 1/2017 Pampalo safety statistics - LTIFR 60 50 40 Zero is impossible Zero is a dream Zero Harm policy: - No accidents - No adverse environmental incidents 30 Industry avg. 20 Zero by chance Goal: Zero by choice Endomines Contractors Total 10 0 LTFIR= accident number /1 000 000 working hours 9
PRODUCTION selective mining Full Production Selective mining Key production figures Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1-Q4 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1-Q4 Q1/2017 Milled ore (tonnes) 76 089 85 738 90 143 83 926 335 986 35 317 37 303 36 104 42 193 150 917 38 810 Head grade (Au gram/tonne) 2,1 1,8 2 1,7 1,9 2,1 2,4 2,7 3,1 2,6 2,7 Gold recovery (%) 83,8 84,1 82,7 81,4 83 80,2 82,8 85,3 83,0 82,9 83,4 Hourly utilization (%) 82,8 91,5 93,3 80,2 87 35,3 37,7 34,0 43,5 37,6 41,3 Gold production (kg) 131,3 126,6 153,3 118,5 529,5 58,5 73,7 83,0 109,8 325,0 97,9 3,5 3,0 2,5 2,0 Au g/t 1,5 1,0 0,5 Full production 153,3 131,3 126,6 118,5 2,1 2,0 1,8 1,7 Selective mining 3,1 2,7 2,4 109,8 2,1 83,0 73,7 58,5 97,9 2,7 180 160 140 120 100 Au kg 80 60 40 20 0,0 0 Gold production (kg) Head grade (Au gram/tonne) 10 25-Apr-17
Cash Cost Benchmark to Kittilä Gold mine 100 Benchmark OPEX Eur/milled tonn OPEX / Eur milled tonn 90 80 70 60 50 40 30 75 71 86 79 80 81 75 77 73 66 67 69 71 73 75 70 66 69 59 56 57 57 56 53 50 51 50 46 40 41 39 77 59 75 72 50 50 80 45 72 58 81 71 73 66 83 74 20 10 0 PAMPALO OPEX/ (EUR/tonne milled ore) KITTILÄ GOLD MINE (truck hoisting, Nordic region) OPEX/ (EUR/tonne milled ore) Linear (PAMPALO OPEX/ (EUR/tonne milled ore)) Linear (KITTILÄ GOLD MINE (truck hoisting, Nordic region) OPEX/ (EUR/tonne milled ore)) Pampalo operating cost /tonne is lower when benchmarked against similar (much larger 10x) underground operation in the Nordic Region Pampalo Cash Cost is higher why: Cash Cost = OPEX / sold ounces Head grade is the key factor high grade-more ounces 11 25-Apr-17
Pampalo Ore Reserves and Mineral Resources development (longitudinal projection) Year 2010 Year 2017 +500 +600 +700
UG Core Drilling (Inflill & Exploration) Areas to be drilled in 2017 North / D-lens Exploration drilling 1000m South Exploration drilling 500m S-lens Definition/Infill drilling 2000m Area 755-855 Exploration drilling 5100m 2017-2018 /Q2 Production area 655-755 Infill drilling 5700m 13 25-Apr-17
Surface Exploration Section 5450, looking North AT/Mafic volc F2 fold hinge target Model Earth East Structure Exploration drilling 1000m (3-4 drill holes) S1A: 43.1m @ 0.22 g/t Au S1 S0 layering Model Earth/Ian Neilson interpretation 14 25-Apr-17
Pampalo Near Mine Exploration Potential Pampalo NW Indicated resource 29 kt @ 2.5 g/t Au Korpivaara Tonalite Pampalonlammit 2016 discovery Inferred resource 103 kt @ 1.8 g/t Au Interpreted target Model Earth Pty Ltd/Australia Pampalo Underground Mine F2 fold hinges Pampalo East / Open Pit Ore reserve: 32 kt @ 1.3 g/t au Indicated resource 199 kt @ 1.8 g/t Au Inferred resource 62 kt @ 1.4 g/t Au 15 25-Apr-17
Finansiella nyckeltal Sammandrag av årets resultat January-december MSEK 2016 2015 +/- EU (flotationskoncentrat) 88,9 122,5-33,6 Norge (gravimetrisk guldkoncentrat) 12,2 28,5-16,4 Intäkter från guldkoncentrat 101,1 151,0-50,0 Effekt av realiserat resultat på guldprissäkring 0,0-38,1 38,1 Summa nettoomsättning 101,1 113,0-11,9 Övriga intäkter 1,0 0,5 0,5 Summa intäkter 102,1 113,5-11,4 Resultat före avskrivningar mm -9,2-62,8 53,6 Avskrivningar och nedskrivningar -95,4-88,9-6,6 Resultat från säkringsinstrument 1,5-5,0 6,4 Rörelseresultat -103,1-156,6 53,5 Resultat efter skatt -125,0-165,0 39,9 16 25-Apr-17
Why Endomines? Great exploration potential along the Karelian Gold Line Solid mining and processing operations Experienced personnel Social License to Operate Zero Harm policy Safety Environmental Stable shareholders with a positive long term view A company open for Merger & Acquisitions Karelian Gold Line compared to Southern Cross belt 17 Data from Mineral Titles Division of the Western Australia Department of Mineral and Petroleum Resources. Exploring the true
Öppet Hus & Aktieägardag Fredagen den 19 maj 2017 Pampalon kultaharkko
Valberedningen föreslår val av Michael Mattson till ny styrelseledamot Michael Mattsson (f. 1973) Utbildning: Dipl. MSc inom finans från Handelshögskolan i Stockholm Övriga uppdrag: Styrelseledamot i Copperstone Resources AB. Innehav i Endomines AB: 2 000 aktier Erfarenhet: Professionell investerare och entreprenör (2013- Svenska Pannkakshuset AB, 2006-2010 Åre Skilodge AB), företagsöverlåtelser (M & A) under 1990-2000-talen på Enskilda Securities/Blackstone Group i New York, Enskilda Securities Corporate Finance i Stockholm samt Kaupthing Fonder, Investment Banking & Affärsutveckling i Stockholm Valberedningen ansett Michael Mattsson som oberoende i förhållande till bolaget och bolagsledningen respektive större aktieägare i bolaget enligt 4.4 och 4.5 i Bolagskoden 19 25-Apr-17
Tillträdande ny verkställande direktör för Endomines AB Saila Miettinen-Lähde (f. 1962) Utbildning: Civilingenjörsexamen från Tampere tekniska universitet Övriga uppdrag: Styrelseledamot i Outokumpu Oyj sedan 2015 Erfarenheter: vice VD och ekonomidirektör för Talvivaara Mining under åren 2005-2015 ekonomidirektör för F-Secure, ett It-företag verksamt inom cybersäkerhet och noterat vid Nasdaq Helsinki Saila tillträder sin nya befattning hos Endomines AB den 1 maj 20 25-Apr-17