ENDEAVOUR MINING

MANAGEMENT REPORT

For the three and six months ended 30 June 2022 and 2021

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

MANAGEMENT REPORT

BUSINESS OVERVIEW ... 3
1.1. OPERATIONS DESCRIPTION ... 3
HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2022 ... 4
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ... 5
3.1. HEALTH AND SAFETY ... 5
3.2. ESG UPDATES AND PERFORMANCE ... 5
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-MASSAWA GOLD MINE ... 17
4.7. WAHGNION GOLD MINE ... 19
4.8. DISCONTINUED OPERATIONS - KARMA MINE ... 21
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
NON-GAAP MEASURES ... 29
6.1. EBITDA AND ADJUSTED EBITDA ... 29
6.2. CASH AND ALL-IN SUSTAINING 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
QUARTERLY AND ANNUAL FINANCIAL AND OPERATING RESULTS ... 34
PRINCIPAL RISKS AND UNCERTAINTIES ... 36
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 six months ended 30 June 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.

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 2 August 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 (Lafigue 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.

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 2 August 2022

2. HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2022

Table 1: Consolidated Highlights

(Sm)	Unit	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating data from continuing operations
Gold produced	oz	345,104	383,935	702,193	696,624
Gold sold	oz	343,688	395,146	702,782	736,268
Realised gold price1	$/oz	1,832	1,795	1,872	1,779
All-in sustaining costs ("AISC") per ounce sold2	$/oz	954	839	900	838
Cash flow data from continuing operations
Operating cash flows before working capital	$	252.5	269.0	622.1	502.3
Operating cash flows before working capital per share2	$/share	1.02	1.07	2.50	2.18
Operating cash flows	$	253.2	284.1	552.6	488.0
Operating cash flows per share2	$/share	1.02	1.13	2.22	2.12
Earnings data from continuing operations
Revenue1	$	629.6	709.1	1,315.8	1,310.1
Earnings from mine operations	$	200.5	266.5	476.2	457.4
Net comprehensive earnings attributable to shareholders	$	189.4	125.8	132.7	209.8
Basic earnings per share attributable to shareholders	$/share	0.76	0.50	0.53	0.91
EBITDA2,3	$	417.3	344.3	635.2	646.4
Adjusted EBITDA2,3	$	328.5	403.2	726.2	728.3
Adjusted net earnings attributable to shareholders2	$	111.3	174.5	244.9	281.5
Adjusted net earnings per share attributable to shareholders2	$/share	0.45	0.69	0.99	1.22
Balance sheet data
Cash	$	1,096.8	832.9	1,096.8	832.9
(Net cash)/Net debt2	$	(216.8)	77.1	(216.8)	77.1
(Net cash)/Net debt/Adjusted EBITDA (LTM) ratio2,3	:	(0.14)	0.07	(0.14)	0.07

1 Revenue and realised gold price are inclusive of the Sabodala-Massawa stream.
2 This is a non-GAAP measure. Refer to the non-GAAP measure section of this Management Report.
3 EBITDA is defined as earnings before interest, taxes, depreciation and depletion; LTM is defined as last twelve months.

3. ENVIRONMENT, SOCIAL AND GOVERNANCE

Endeavour is committed to being a responsible gold miner, creating long-term value and sharing the benefits of its operations with all its stakeholders, including employees, host communities and shareholders. As the largest gold miner in West Africa and a trusted partner, Endeavour's operations have the potential to provide a significant positive impact on the socio-economic development of its local communities and host countries, while minimising their impact on the environment.

Environment, social and governance ("ESG") policies, systems and practices are embedded throughout the business and the Company reports annually on its ESG performance via its Annual and Sustainability Reports. A dedicated sustainability governance structure has been established with an ESG Committee at board level, and an Executive Management ESG Steering Committee that it reports into.

Endeavour's ESG strategy is centered around the three pillars of ESG, with a number of priority areas identified, which are linked to clear, measurable ESG-related executive compensation targets, which are published in the Company's annual reporting suite, including the Annual Report and the Sustainability Report.

To maximise Endeavour's socio-economic impact, it has identified a number of priority areas for its social investment, these are health, education, economic development and access to water and energy.

Endeavour's environmental priorities seek to address issues of both global and local concern; addressing climate change, water stewardship, protecting biodiversity, and tackling the scourge of plastic waste, which is prevalent and problematic for its local communities.

These are supported by the third pillar, a strong governance foundation. This includes respect for human rights, zero harm, support for employee well-being, diversity and inclusion, responsible sourcing, and rigorous reporting utilising the following ESG frameworks: the Task Force on Climate-related Financial Disclosures ("TCFD"), Global Reporting Initiative ("GRI"), the World Gold Council's Responsible Gold Mining Principles ("RGMPs"), the Sustainability Accounting Standards Board ("SASB") and the Local Procurement Reporting Mechanism ("LPRM"). Endeavour is also a participant of the United Nations Global Compact and a signatory of the Women's Empowerment Principles.

3.1. HEALTH AND SAFETY

Endeavour puts the highest priority on safe work practices and systems. The Company's ultimate aim is to achieve "zero harm" performance. The following table shows the safety statistics for the trailing twelve months ended 30 June 2022. The Group's lost time injury frequency rate ("LTIFR") continues to be well below the industry benchmark.

Table 2: LTIFR ${}^{1}$ and TRIFR ${}^{2}$ Statistics for the Trailing Twelve Months ended 30 June 2022

	Fatality	Lost Time Injury	Total People Hours	Incident Category
				LTIFR1	TRIFR1
Boungou	—	—	3,255,770	—	1.23
Houndé	—	1	5,286,498	0.19	0.76
Ity	—	—	6,860,770	—	0.44
Mana	—	—	4,729,944	—	1.48
Non Operations3	—	—	5,508,250	—	0.73
Sabodala-Massawa	—	3	7,355,542	0.41	1.77
Wahgnion	—	1	6,417,306	0.16	1.09
Total	—	5	39,414,080	0.13	1.07

$^{1}$ LTIFR = Number of LTIs in the Period x 1,000,000 / Total people hours worked for the period.
2Total Recordable Injury Frequency Rate ("TRIFR") = Number of (LTI + Fatalities + Restricted Work Injury + Medical Treated Injury + First Aid Injury) in the period x 1,000,000 / Total people hours worked for the period.
3 "Non Operations" includes Corporate, Kalana, Lafigué and Exploration.

3.2. ESG UPDATES AND PERFORMANCE

2021 Sustainability Report

On 25 May 2022, Endeavour published its fifth annual Sustainability Report, in accordance with the GRI, TCFD, SASB and LPRM reporting frameworks, which is available here: www.endeavourmining.com/esg/esg-reporting. Key ESG data was also externally assured for the second year in a row.

2021 was a strong year for Endeavour's ESG activities with important milestones achieved across the Company's operations and in its engagement with host communities and countries. In addition, the Company announced an ambitious ESG strategy, upgraded and implemented a number of Group policies, standards and performance management systems, continued the implementation of the World Gold Council's RGMPs, and achieved the majority of the Group's ESG 2021 targets.

Key highlights include:

Significant measurable benefits to Endeavour’s host countries:
Total economic contribution to host countries doubled over the prior year to $2.0 billion
80% of total procurement in-country, supporting 1,700 national and local businesses
95% of workforce and nearly 50% of senior operational management are nationals
Continued focus on being a responsible gold miner:
Industry-leading safety performance with LTIFR of 0.20 incidents per million hours worked
Joined the United Nations Global Compact and the Women’s Empowerment Principles to reinforce commitment to the United Nations Sustainable Development Goals
Industry-low CO2 emission intensity with 0.54 tCO2-e/oz produced in 2021; Targeting Net Zero by 2050 and a 30% reduction in emissions intensity by 2030
Water withdrawal per ounce was reduced by 17% over the previous year to 6.4kl/oz produced
Endeavour Foundation launched in June 2021 to compliment efforts of ECODEV (the Group’s impact investing fund)
2022 ESG targets (focused on health and safety, local procurement, climate change, and tailings management) represent respectively 30% and 15% of executive short-term and long-term incentive targets. The 2022 baseline emissions target, which had been fixed at 570 kgCO2 e/oz, was based upon the June 2021 life of mine plan, which has since become out of date with the approval of the 2022 life of mine plan. Having regard to the changes between the two plans, improved data accuracy contained in the updated plan, and a more refined understanding of the Company’s emissions measurement criteria, the original 2022 provisional baseline emissions target of 570 kgCO2 e/oz has been recalibrated and the Remuneration Committee has resolved to amend the 2022 baseline emissions target to 670 kgCO2 e/oz.

Endeavour seeks to continue the momentum of the strong ESG performance demonstrated in 2021 by continuing to implement its ESG strategy, with clear targets identified for 2022, as outlined on pages 6-7 of the 2021 Sustainability Report.

The Report details the Company’s enhanced ESG strategy and sets out a number of ambitions, including 2022 objectives, across environmental stewardship, social engagement and ethical business practices, which are aligned to robust and transparent disclosure practices and tied to executive and group compensation plans.

ESG Ratings Agency Update

On 24 June 2022, Endeavour received an updated AA rating from the MSCI Ratings Agency. This places Endeavour in the top quartile for the MSCI ACWI Index constituents, Metals and Mining - Precious Metals.

Update on the Endeavour Foundation

The Endeavour Foundation has launched a number of initiatives this year, to support Endeavour’s ESG strategy, in the areas of health, education and protecting the environment. These include:

‘One village without malaria’ which was launched in April 2022 in Burkina Faso with the Burkinabe Ministry of Health. A village of approximately 1,000 inhabitants has been selected close to our Mana mine for this pilot programme, and the goal is to eliminate malaria cases for a whole community by the end of 2023.
A partnership with the Senegalese Agency for Reforestation and the Great Green Wall of Senegal to support reforestation across Africa, with an annual target of more than 100 hectares in the department of Bakel in Senegal. The pan-African Green Wall project aims to slow down the advance of the desert in Africa through the construction of a green belt from Dakar to Djibouti. The initiative aims to support the fight against climate change, as well as to bolster economic and social development.
A three-year partnership with the five top Burkinabe universities to kick-start the careers of young graduates in the mining sector. Under this partnership, 60 students a year will benefit from placements at Endeavour’s mines in Burkina Faso. The partnership aligns with Endeavour’s mission to support the development of human capital in our host countries and communities for current and future generations.
A training and literary project in partnership with the Ivorian Ministry of Education, Vocational Training and Technical Apprenticeships to improve the rate of employment for young people in the Hambol region where the Lafigué development project is located. 150 young people will be trained in key vocational skills, including electrics, plumbing, masonry, welding, boiler making and carpentry. In addition, adult literary courses will be provided to 500 adults to increase literacy levels, in partnership with the Ivorian Ministry of Education and Alphabetisation.

The Responsible Gold Mining Principles

The RGMPs were launched by the World Gold Council, the industry body responsible for stimulating and sustaining demand for gold, to reflect the commitment of the world’s leading gold producers to responsible mining. The RGMPs provide a comprehensive ESG reporting framework that sets out clear expectations as to what constitutes responsible gold mining to help provide confidence to investors, supply chain participants and ultimately, consumers.

The RGMPs consist of ten umbrella principles and fifty-one detailed principles that cover key ESG themes. During FY-2021, Endeavour continued to progress implementation of the RGMPs, working towards full conformance at both corporate and site-

level by September 2022 for its legacy assets, the Ity and Houndé mines, as per the World Gold Council’s three-year timeframe. For the acquired SEMAFO and Teranga mines, Endeavour has three years to conform from the date of acquisition.

In FY-2020, Endeavour received external assurance on seven RGMPs, the details of which are included in the Company’s 2020 Sustainability Report, available at www.endeavourmining.com.

In Q2-2022, Endeavour published its first externally assured Conflict Free Gold Report, fulfilling the requirement of RGMP 5.4. This report is available on the Company’s website at: www.endeavourmining.com/esg/esg-reporting.

In Q3-2022, the Company plans to conduct an external review with an independent assurance provider on all the outstanding RGMPs at both corporate level and at Endeavour’s legacy assets Ity and Houndé, with a view to achieving conformance on all the RGMPs.

Incident at Houndé

On 17 May 2022, a group of artisanal miners (“ASM”) illegally entered the Houndé mine, for a brief period of time, in protest of being removed by government authorities from a nearby illegal ASM site. There were no serious injuries sustained by either Endeavour employees, contractors, or the ASM and limited property damage and disruption to operations. Following the incident, various activities have been initiated and more are planned for H2-2022 to bolster community and stakeholder engagement.

4. OPERATIONS REVIEW

The following tables summarises operating results for the three and six months ended 30 June 2022 and 30 June 2021.

4.1. Operational Review Summary

Q2-2022 production from continuing operations amounted to 345,104 ounces, a decrease of 38,831 ounces or 10% compared to Q2-2021, due to the lower average grades at Sabodala-Massawa, Boungou, Ity and Wahgnion.
AISC from continuing operations increased by $115 per ounce to $954 per ounce compared to Q2-2021, mainly due to the decrease in gold sold volumes associated with lower production and underlying unit cost increases primarily associated to fuel and explosive prices. These factors were partially offset by foreign exchange benefits as the euro continued to decline against the dollar.
H1-2022 production from continuing operations increased by 5,569 ounces or 1%, due to the full half-year inclusion of Sabodala-Massawa and Wahgnion mines which were acquired on 10 February 2021. AISC from continuing operations increased by $62 per ounce or 7% to $900 per ounce in H1-2022 due to an increase in AISC at Wahgnion and Boungou mines.

Table 3: Group Production

(All amounts in oz, on a 100% basis)	THREE MONTHS ENDED		SIX MONTHS ENDED
	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Boungou	27,005	38,802	60,846	98,549
Houndé	87,008	79,632	160,073	145,686
Ity	76,871	79,487	149,272	150,369
Mana	54,768	49,167	107,335	101,566
Sabodala-Massawa^{1}	72,904	95,856	169,230	134,804
Wahgnion^{1}	26,548	40,991	55,437	65,650
PRODUCTION FROM CONTINUING OPERATIONS	345,104	383,935	702,193	696,624
Karma^{2}	—	25,057	10,246	46,630
Agbaou^{3}	—	—	—	12,575
GROUP PRODUCTION	345,104	408,992	712,439	755,829

1 Included for the post acquisition period commencing 10 February 2021.
2 Divested on 10 March 2022.
3 Divested on 1 March 2021.

Table 4: Group AISC

(All amounts in US$/oz)	THREE MONTHS ENDED		SIX MONTHS ENDED
	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Boungou	1,062	950	971	793
Houndé	807	741	791	787
Ity	895	806	813	796
Mana	905	1,016	953	982
Sabodala-Massawa^{2}	779	637	666	675
Wahgnion^{2}	1,788	980	1,558	903
Corporate G&A	20	27	30	30
AISC^{1} FROM CONTINUING OPERATIONS	954	839	900	838
Karma^{3}	—	1,074	1,504	1,120
Agbaou^{4}	—	—	—	1,131
GROUP AISC^{1}	954	853	909	860

1 This is a non-GAAP measure. Refer to non-GAAP Measures section for further details.
2 Included for the post acquisition period commencing 10 February 2021.
3 Divested on 10 March 2022.
4 Divested on 1 March 2021.

4.2. Boungou Gold Mine, Burkina Faso

Table 5: Boungou Key Performance Indicators

	Unit	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating data
Tonnes ore mined	kt	272	350	524	596
Tonnes of waste mined	kt	4,843	7,996	10,925	14,422
Tonnes of ore milled	kt	366	336	715	651
Average gold grade milled	g/t	2.47	3.84	2.76	4.65
Recovery rate	%	93	95	94	95
Gold produced	oz	27,005	38,802	60,846	98,549
Gold sold	oz	27,305	37,974	63,143	95,833
Realised gold price	$/oz	1,831	1,801	1,881	1,782
Financial data
Revenue	$m	50.0	68.4	118.8	170.8
Operating expenses	$m	(24.1)	(23.6)	(50.5)	(56.9)
Royalties	$m	(3.1)	(4.1)	(7.1)	(10.3)
Non-cash operating expenses1	$m	—	0.6	—	4.3
Total cash cost2	$m	(27.2)	(27.1)	(57.6)	(62.9)
Sustaining capital2	$m	(1.8)	(9.0)	(3.7)	(13.1)
Total AISC2	$m	(29.0)	(36.1)	(61.3)	(76.0)
Non-sustaining capital2	$m	(8.3)	(3.9)	(17.5)	(8.4)
Total all-in costs2	$m	(37.3)	(40.0)	(78.8)	(84.4)
Cash cost per ounce sold2	$/oz	996	714	912	657
Mine AISC per ounce sold2	$/oz	1,062	950	971	793

1 Non-cash operating expenses relates to the reversal of the fair value adjustment of inventory on hand at the acquisition date.
2 Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

Q2-2022 vs Q2-2021 insights

Production decreased from 38,802 ounces in Q2-2021 to 27,005 ounces in Q2-2022 due to lower average grade processed and lower recoveries, partially offset by increased tonnes milled.
Total tonnes mined decreased due to contractor mining fleet availability and utilisation compared to Q2-2021 where there was greater availability at higher depths. Tonnes ore mined decreased due to the equipment availability and focus on waste stripping at the West pit in Q2-2022.
Tonnes milled increased due to higher throughput rates driven by the continued effective fragmentation and processing of crushed ore stockpiles allowing for a more stable ore feed.
Processed grade significantly decreased as ore was mined in the lower grade East pit with no ore supply from the West pit in Q2-2022, and more low grade stockpiles were utilised compared to Q2-2021 with greater access to higher grade areas within West pit phase 2.
Recovery rates decreased slightly due to the expected lower recovery rates of ore sourced from the East pit.
AISC per ounce increased from $950 per ounce in Q2-2021 to $1,062 per ounce in Q2-2022 due to the significant decrease in gold sold volumes and an increase in unit mining costs due to increased fuel and consumable costs in Q2-2022 compared to Q2-2021, partially offset by lower sustaining capital and lower total mining volumes which have decreased mining costs.
Sustaining capital expenditure amounted to $1.8 million in Q2-2022 compared to $9.0 million in Q2-2021, with the capital spend primarily relating to mining infrastructure, capitalised drilling along the strike of the East pit and capital spares.
Non-sustaining capital expenditure amounted to $8.3 million in Q2-2022, an increase from $ 3.9 million in Q2-2021, related primarily to pre-stripping activity at the West pit phase 3.

H1-2022 vs H1-2021 Insights

Production decreased from 98,549 ounces in H1-2021 to 60,846 ounces in H1-2022 primarily due to lower processed grades in H1-2022 compared to H1-2021, when higher grade stockpiles supplemented higher grade ore sourced from the West pit. There have been no interruptions in production as management continues to focus on security enhancements and the facilitation of supply procurement.

AISC increased from $793 per ounce in H1-2021 to $971 per ounce in H1-2022 as a result of the decrease in gold sold volumes and higher unit mining costs driven in part by the expected increases in fuel and explosive costs, partially offset by lower sustaining capital.

2022 Outlook

Given the slight delay in progressing the pre-stripping activity at the West pit, Boungou is expected to achieve the low-end of its FY-2022 production guidance of 130—140koz with AISC expected to achieve the guided $900—1,000 per ounce range in FY-2022.
In H2-2022, waste extraction is expected to continue in the West, East and West Flank pits, while ore is expected to be sourced mainly from the West pit following completion of pre-stripping activities in H1-2022. Mill throughput is expected to increase over the upcoming quarters, while grades are expected to remain flat as the higher grade ore from the West pit is expected to be blended with lower grade stockpile feed.
The sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the initial guidance of $15.0 million, of which $3.7 million has been incurred in H1-2022. In H2-2022, sustaining capital expenditure is expected to mainly relate to infrastructure and capitalised waste stripping activity at the West pit.
The non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the initial guidance of $19.0 million, of which $17.5 million has been incurred in H1-2022. In H2-2022, non-sustaining capital expenditure is expected to mainly relate to the East pit phase 1 cut back.

Exploration

An exploration programme of $4.0 million is planned for FY-2022, of which $1.7 million has been spent in H1-2022 $1.0 million spent in Q2-2022 consisting of 6,435 meters of drilling across 587 drill holes. The exploration programme has been focused on identifying new targets close to the Boungou mine, testing the continuity of the Boungou deposit mineralisation further north and follow-up on the mineral potential of the Osaanpalo target.
During Q2-2022, drilling to the north of Boungou has continued to delineate mineralised extensions along the Boungou Shear Zone that exhibit Boungou style geology with intense biotite-sericite-silica alteration. This trend continues over 6.5 kilometers to the north-northeast towards the Tawori target. Drilling at Osaanpalo confirmed the potential for high grade mineralisation, with geology that is similar to the Boungou mine geology. Drilling at Boungou East was designed to follow up on Induced Polarisation ("IP") anomalies and returned encouraging intercepts.
During the remainder of the year, following the detailed interpretation of drilling results from the first half of the year, the exploration programme will continue to delineate the Osaanpalo, Tiwori and Boungou East targets. In addition, a large drilling programme is planned at Boungou North, to expand the resources and extend mineralisation to the northwest.

4.3. Houndé Gold Mine, Burkina Faso

Table 6: Houndé Key Performance Indicators

	Unit	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating data
Tonnes ore mined	kt	1,330	1,399	2,668	3,024
Tonnes of waste mined	kt	9,395	10,319	20,743	22,630
Tonnes milled	kt	1,217	1,108	2,450	2,254
Average gold grade milled	g/t	2.42	2.47	2.18	2.17
Recovery rate	%	94	92	94	92
Gold produced	oz	87,008	79,632	160,073	145,686
Gold sold	oz	85,979	76,827	158,475	143,858
Realised gold price	$/oz	1,845	1,790	1,880	1,780
Financial data
Revenue	$m	158.6	137.5	298.0	256.1
Operating expenses	$m	(49.0)	(41.6)	(90.3)	(82.1)
Royalties	$m	(11.1)	(6.8)	(20.3)	(17.8)
Total cash cost1	$m	(60.1)	(48.4)	(110.6)	(99.9)
Sustaining capital1	$m	(9.3)	(8.6)	(14.7)	(13.3)
Total AISC1	$m	(69.4)	(57.0)	(125.3)	(113.2)
Non-sustaining capital1	$m	(3.4)	(3.0)	(7.2)	(9.7)
Total all-in costs1	$m	(72.8)	(59.9)	(132.5)	(122.9)
Cash cost per ounce sold1	$/oz	699	629	698	694
Mine AISC per ounce sold1	$/oz	807	741	791	787

1 Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

Q2-2022 vs Q2-2021 Insights

Production increased from 79,632 ounces in Q2-2021 to 87,008 ounces in Q2-2022 due to the higher throughput and recoveries while grade milled remained comparable relative to Q2-2021.
Mining in the quarter was focussed on the oxide material from the Kari Pump deposit which contributed approximately 50% of the ore tonnes and over 60% of the gold mined, with the Vindaloo Main pit and the Kari West pit broadly evenly contributing the remainder.
Tonnes milled increased due to increased proportion of softer oxide and transitional ore from the Kari West pit combined with direct crushed ore stockpile oxide feed and continued benefit of the pebble crusher optimisation.
Average gold grade milled remained relatively consistent compared to Q2-2021 with the Kari Pump pit continuing to provide a strong contribution of higher grade ore to blend with lower average grades from Vindaloo Main pit and Kari West pit.
Recovery rates improved due to the higher ore feed from the Kari Pump pit with high gravity recoverable gold combined with finer grinding and good graphite feed plan which offset any losses due to the higher throughput.
AISC per ounce increased from $741 per ounce in Q2-2021 to $807 per ounce in Q2-2022 primarily due to higher operating costs from higher blasting volumes and explosive cost in addition to longer average haulage distances in Q2-2022 which is exaggerated by the higher fuel price. This is partially offset by higher gold sales in the period.
Sustaining capital amounted to $9.3 million, broadly in line with the prior year, mainly related to waste capitalisation at the Vindaloo Main pit and mining fleet re-builds.
Non-sustaining capital amounted to $3.4 million, broadly in line with the prior year, primarily related to the stage 6/7 tailings storage facility ("TSF") raise, and infrastructure around the Kari area.

H1-2022 vs H1-2021 Insights

Production increased from 145,686 ounces in H1-2021 to 160,073 ounces in H1-2022 as a result of increased mill throughput and recoveries due to increased mining flexibility and availability of a higher proportion of soft oxide material from the Kari West pit. Average grade in the mill feed remained consistent, largely due to the continued contributions from the high grade Kari Pump pit.
AISC was in-line with the prior period at $791 per ounce in H1-2022 as the greater volume of ounces sold was offset by higher sustaining capital.

2022 Outlook

H1-2022 performance was stronger than scheduled due to the benefit of high-grade oxide ore from the Kari Pump pit. As such, Houndé is expected to continue to trend above its FY-2022 production guidance of 260—275koz, with AISC expected to achieve the guided $875—925 per ounce range.
In H2-2022, ore is expected to be mainly sourced from the Vindaloo Main and Kari West pits, while stripping activities are conducted at the Kari Pump pit. Slightly lower ore tonnes mined, ore processed, processed grades and recovery rates are expected in the upcoming quarters primarily due to the reduction in high grade oxide ore from the Kari Pump pit.
The sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $44.0 million, of which $14.7 million has been incurred in H1-2022. In H2-2022, sustaining capital is expected to mainly relate to spare parts and fleet re-builds as well as waste capitalisation at the Vindaloo Main pits.
The non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $18.0 million, of which $7.2 million has been incurred in H1-2022. In H2-2022, non-sustaining capital expenditure is expected to mainly relate to pre-stripping activities at the Kari Pump stage 3 pit, resettlement and associated mine infrastructure in the Kari area and completion of a TSF wall raise.

Exploration

An exploration programme of $14.0 million is planned for FY-2022, of which $5.6 million has been spent in H1-2022 with $3.5 million spent in Q2-2022 consisting of over 13,201 meters of drilling across 132 drill holes. The exploration programme has been focussed on following up on positive drilling results at Sianikoui, Dohoun, and Mambo, extending the mineralised trend at Vindaloo South, and testing new targets including Hondjo.
During Q2-2022, drilling at Vindaloo South, which is located less than 1 kilometers south of the Vindaloo Main pit, was focused on identifying and characterising mineralised extensions along strike to the south west and at depth. Drilling also continued at the Sianikoui target where the mineralised footprint has been expanded to the south west and south east and remains open.
During the remainder of the year, drilling will continue at Vindaloo South, focused on further extending mineralisation towards the southwest and at depth. In addition, drilling is expected to commence at Koho, Baraki, Banana, Tioro Sud and Hondjo targets to delineate these prospects. At the Mambo deposit, step-out drilling will focus on extending the mineralised trend to the northeast to fully evaluate the potential size of the Mambo deposit.

4.4. Ity Gold Mine, Côte d'Ivoire

Table 7: Ity CIL Key Performance Indicators

	Unit	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating data
Tonnes ore mined	kt	1,668	1,877	4,202	3,982
Tonnes of waste mined	kt	4,359	4,057	8,776	8,768
Tonnes milled	kt	1,597	1,544	3,266	3,094
Average gold grade milled	g/t	1.77	1.96	1.73	1.86
Recovery rate	%	86	81	83	80
Gold produced	oz	76,871	79,487	149,272	150,369
Gold sold	oz	75,753	83,377	148,423	157,860
Realised gold price	$/oz	1,834	1,803	1,878	1,790
Financial data
Revenue	$m	138.9	150.3	278.8	282.5
Operating expenses	$m	(53.9)	(51.8)	(97.4)	(97.8)
Royalties	$m	(7.0)	(8.3)	(14.9)	(15.5)
Total cash cost^{1}	$m	(60.9)	(60.1)	(112.3)	(113.3)
Sustaining capital^{1}	$m	(6.9)	(7.1)	(8.4)	(12.3)
Total AISC^{1}	$m	(67.8)	(67.2)	(120.7)	(125.7)
Non-sustaining capital^{1}	$m	(5.6)	(8.4)	(10.7)	(20.4)
Total all-in costs^{1}	$m	(73.4)	(75.5)	(131.4)	(146.1)
Cash cost per ounce sold^{1}	$/oz	804	720	757	718
Mine AISC per ounce sold^{1}	$/oz	895	806	813	796

1 Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

Q2-2022 vs Q2-2021 insights

Production slightly decreased from 79,487 ounces in Q2-2021 to 76,871 ounces in Q2-2022, as higher throughput and improved recovery rates were offset by lower average grade milled.
Ore tonnes mined decreased compared to Q2-2021 following the completion of the Daapleu pit stage 2 and no contribution from the Verse Ouest dump, which enabled a greater proportion of waste mined at the Bakatouo and Le Plaque pits while ore was primarily sourced from the Ity, Bakatouo, Walter and Le Plaque pits in the quarter.
Tonnes milled increased and continued to perform above nameplate due to continued use of the surge bin for supplemental feed and SAG mill feed control optimisation improving utilisation.
Average grade milled decreased as scheduled due to the change in the ore blend and the reduced proportion of higher grade ore from the Daapleu pit in Q2-2022.
Recovery rates increased compared to Q2-2021 due to the lower proportion of fresh, semi-refractory material from the Daapleu pit in the feed.
AISC per ounce increased from $806 per ounce in Q2-2021 to $895 per ounce in Q2-2022 with lower ounces sold and higher unit mining and unit processing costs due the expected increase in fuel and explosive costs, which was partially offset by lower sustaining capital spend.
Sustaining capital expenditure amounted to $6.9 million, a decrease compared to Q2-2021, and is mainly related to major critical and strategic spares, cost of dewatering boreholes infrastructure and waste capitalisation at the Walter Pit.
Non-sustaining capital expenditure amounted to $5.6 million, a decrease compared to the $8.4 million incurred in Q2-2021, and is mainly related to detailed engineering and early works for the recyanidation circuit, in addition to the TSF stage 4 lift, compensation for the TSF 2 land and completion of the pre-leach tank and spargers.

H1-2022 vs H1-2021 Insights

Production was in-line with the prior period at 149,272 ounces in H1-2022. Tonnes milled and recoveries increased due to the increased use of the surge bin feeder and a lower proportion of ore processed from the Daapleu pit, which has lower associated recoveries. This was offset by lower average grade processed due to less high grade ore from the Daapleu pit.
AISC increased from $796 per ounce in H1-2021 to $813 per ounce in H1-2022 due to lower ounces sold and higher mining and processing unit costs which were driven by the expected increases in fuel and explosive costs, partially offset by lower sustaining capital in the period.

2022 Outlook

Ity is on track to produce near the top end of the guided 255—270koz in FY-2022 at an AISC of between $850—900 per ounce.
Over the remainder of the year, mill feed is expected to continue to be sourced from the Le Plaque, Ity, Bakatouo and Walter pits and supplemented by historic stockpiles. Following the completion of mining at the current stage of the Daapleu pit in H1-2022, recovery rates are expected to improve in H2-2022 while the average grade is expected to be slightly lower. Throughput is expected to be lower in H2-2022 as a result of the wet season impacting mill feed rate and mill utilisation.
Sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $20.0 million, of which $8.4 million has been incurred in H1-2022. In H2-2022, sustaining capital expenditure is expected to mainly relate to waste stripping activities primarily at the Bakatouo pit, dewatering and borehole drilling and plant maintenance.
Non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the previously provided guidance of $60.0 million, of which $10.7 million has been incurred in H1-2022. In H2-2022, non-sustaining capital is expected to mainly relate to the recyanidation circuit construction which is ramping up following completion of detailed engineering with tendering and ordering of long lead items expected early in Q3-2022.

Exploration

An exploration programme of $10.0 million is planned for FY-2022, of which $4.5 million has been spent in H1-2022 with $2.6 million spent in Q2-2022 consisting of 27,802 meters of drilling across 190 drill holes. The exploration programme has been focused on extending resources at Walter-Bakatouo, West Flotouo, Le Plaque and Yopleu-Legaleu deposits, delineating resources at Colline Sud and assessing the potential of new targets including Gbampleu, Bakatouo-Zia NE and Delta South East.
During Q2-2022, drilling at West Flotouo extended mineralisation to the northeast over an additional 300 meter strike length, with promising results supporting an additional phase of drilling later in the year. At the Walter-Bakatouo junction, drilling continues to extend the depth of mineralisation, which remains open. At Collin Sud, drilling results confirmed the presence of gold mineralisation associated with alteration and deformation, and sheared volcano sediment with a resource update expected in Q3-2022. Drilling at the Le Plaque deposit and its satellite, Yopleau-Legaleu, continued during the quarter with the aim of extending the mineralisation at both deposits. At Le Plaque, drilling tested the down dip continuity of the Delta Extensions and confirmed the presence of mineralised lenses outside the 2021 pit shell, the programme at Yopleu-Legaleu is ongoing. The Gbampleu target, located 22 kilometers south of Ity, achieved promising results from drilling will be followed up later in the year.
During the remainder of the year, the exploration programme will aim to continue growing resources at Le Plaque and West Flotouo, Walter Bakatouo, Collin Sud and Yopleu-Legaleu where we expect to update resources later in the year.

4.5. Mana Gold Mine, Burkina Faso

Table 8: Mana Key Performance Indicators

	Unit	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating data
Tonnes ore mined - open pit	kt	376	549	846	904
Tonnes of waste mined - open pit	kt	461	6,638	1,636	14,816
Tonnes ore mined - underground	kt	196	214	395	459
Tonnes of waste mined - underground	kt	154	82	304	165
Tonnes of ore milled	kt	652	670	1,274	1,275
Average gold grade milled	g/t	2.83	2.49	2.88	2.68
Recovery rate	%	90	92	91	91
Gold produced	oz	54,768	49,167	107,335	101,566
Gold sold	oz	54,232	49,769	108,427	110,323
Realised gold price	$/oz	1,837	1,804	1,881	1,789
Financial data
Revenue	$m	99.6	89.8	204.0	197.4
Operating expenses	$m	(41.6)	(40.8)	(86.9)	(87.6)
Royalties	$m	(6.1)	(4.9)	(12.2)	(13.0)
Non-cash operating expenses	$m	—	0.4	—	0.4
Total cash cost1	$m	(47.7)	(45.3)	(99.1)	(100.3)
Sustaining capital1	$m	(1.4)	(5.2)	(4.2)	(8.0)
Total AISC1	$m	(49.1)	(50.6)	(103.3)	(108.3)
Non-sustaining capital1	$m	(15.1)	(21.1)	(25.5)	(45.2)
Total all-in costs1	$m	(64.2)	(71.7)	(128.8)	(153.5)
Cash cost per ounce sold1	$/oz	880	911	914	909
Mine AISC per ounce sold1	$/oz	905	1,016	953	982

1 Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

Q2-2022 vs Q2-2021 insights

Production increased from 49,167 ounces in Q2-2021 to 54,768 ounces in Q2-2022 as a result of higher processed grades which was partially offset by lower recoveries and tonnes milled.
Open pit tonnes of ore mined decreased as the Wona open pit reached the end of its life and mining productivities reduced.
Total underground ore tonnes mined decreased due to a greater focus on waste development at the Wona underground.
Tonnes milled decreased due to slightly lower mill utilisation during the period.
Recovery rates decreased due to the Wona open pit material being less amenable to leaching as expected.
AISC per ounce decreased from $1,016 per ounce in Q2-2021 to $905 per ounce in Q2-2022 due to greater volumes of gold sold and lower sustaining capital, partially offset by higher mining costs associated to the greater haulage distances from the Wona South pit stage 3.
Sustaining capital amounted to $1.4 million, a decreased compared to the $5.2 million incurred in Q2-2021, and was mainly related to slope radar and geotechnical equipment.
Non-sustaining capital expenditure amounted to $15.1 million, a decrease compared to $21.1 million incurred in Q2-2021, and was mainly related to underground development of the Wona underground portals and the TSF raise.

H1-2022 vs H1-2021 Insights

Production increased from 101,566 ounces in H1-2021 to 107,335 ounces in H1-2022 driven by higher grade material available from the Siou underground deposit whilst the plant performance remained consistently strong.
AISC decreased from $982 per ounce in H1-2021 to $953 per ounce in H1-2022 primarily as a result of lower sustaining capital in the period, which was slightly offset by marginally higher mining costs in the final stages of mining at the Wona open pit.

2022 Outlook

Mana is on track to achieve a production near the top end of its FY-2022 production guidance of 170—190koz with AISC expected to achieve the guided $1,000—1,100 per ounce.
Open pit mining activities at the Wona open pit concluded in H1-2022 and the Maoula satellite pit is expected to commence in late H2-2022. Underground mining activities continue to progress as planned, with ongoing stope production at Siou underground and the Wona underground development advancing well with first stope production scheduled for later in the year. In the upcoming quarters, mill throughput is expected to be fairly consistent, recoveries are expected to be slightly lower due to the ore blend, while processed grades are expected to be slightly lower due the commencement of mining and processing activities from the Maoula open pit.
The sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $7.0 million, of which $4.2 was million incurred in H1-2022. In H2-2022, sustaining capital is expected to mainly relate to plant maintenance and equipment re-builds.
The non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $40.0 million, of which $25.5 million has been incurred in H1-2022. In H2-2022, non-sustaining capital is expected to mainly relate to the Wona underground development and associated infrastructure, Maoula infrastructure, and a TSF wall raise.

Exploration

An exploration programme of $6.0 million is planned for FY-2022, of which $5.4 million has been spent as of H1-2022 with $3.6 million spent in Q2-2022 consisting of 21,117 meters of drilling across 204 drill holes focused on increasing the size of the resources at Maoula Est, Fofina and Nyafe, delineating near mine exploration targets and testing new greenfield targets.
During Q2-2022, the exploration programme continued to focus on upgrading Inferred resources at the Maoula Est deposit. At the Fofina deposits drilling has identified high grade mineralised extensions along strike of the existing mineralisation and down dip below the existing pit. At the Nyafe Sud zone, drilling delineated sub-horizontal westward dipping mineralised trends that have now been identified over a strike length of 200 meters. In addition, several greenfield targets including Zina Nord, Sodien, Kokoï Sud and Doumakele Est were tested during the quarter with results expected later in the year.
During the remainder of the year, the exploration programme will continue to test the mineralised extensions at Fofina. The greenfield targets identified in the first half of the year will be further evaluated in the second half of the year, focused on targets that have similar structural settings as the existing deposits, located on 1st and 2nd order structures. In addition several new targets have been generated through the use of the innovative CGI Prospectivity Analysis, which employs AI algorithms to analyse 48 layers of geological, geochemical, and geophysical data to identify and rank exploration targets.

4.6. Sabodala-Massawa Gold Mine, Senegal

Table 9: Sabodala-Massawa Key Performance Indicators

	Unit	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating data
Tonnes ore mined	kt	1,717	2,111	3,425	3,167
Tonnes of waste mined	kt	11,060	8,687	21,428	13,462
Tonnes milled	kt	1,048	1,067	2,102	1,617
Average gold grade milled	g/t	2.38	3.20	2.74	2.97
Recovery rate	%	89	89	89	90
Gold produced	oz	72,904	95,856	169,230	134,804
Gold sold	oz	73,523	99,467	167,521	151,016
Realised gold price2	$/oz	1,805	1,779	1,847	1,752
Financial data
Revenue2	$m	132.7	177.0	309.4	264.5
Operating expenses	$m	(45.7)	(61.0)	(78.6)	(119.9)
Royalties	$m	(7.4)	(9.9)	(17.3)	(14.9)
Non-cash operating expenses3	$m	3.9	16.4	4.6	51.2
Total cash cost4	$m	(49.2)	(54.5)	(91.3)	(83.5)
Sustaining capital4	$m	(8.1)	(8.9)	(20.3)	(18.4)
Total AISC4	$m	(57.3)	(63.4)	(111.6)	(102.0)
Non-sustaining capital4	$m	(11.8)	(5.2)	(21.1)	(9.7)
Total all-in costs4	$m	(69.1)	(68.6)	(132.7)	(111.7)
Cash cost per ounce sold4	$/oz	669	548	545	553
Mine AISC per ounce sold4	$/oz	779	637	666	675

Analysis of operations is only for the period after its acquisition by Endeavour on 10 February 2021.
2 Revenue and realised gold price are inclusive of the Sabodala-Massawa stream.
Non-cash operating expenses relates to the reversal in the period of the fair value adjustment of inventory on hand at the acquisition date.
4 Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

Q2-2022 vs Q2-2021 insights

Production decreased from 95,856 ounces in Q2-2021 to 72,904 ounces in Q2-2022, in line with the guided trend, as a result of lower grade areas mined given the greater focus on waste extraction associated with the commencement of mining at the Massawa North Zone pit, while tonnes processed slightly decreased and recovery rates remained flat.
Mining activities commenced at the Massawa North Zone pit during the quarter with predominantly surface waste extraction whilst ore tonnes ramped up from the Massawa Central Zone pit which commenced in Q1-2021. Mining activities at the Sofia North pit continued in Q2-2022 with mining at the Sofia Main pit winding down. In line with the mine schedule, waste extraction activities continued at the Sabodala pit.
Ore tonnes mined decreased due to the higher strip ratios at the Massawa pits and at phase 4 of the Sabodala pit.
Tonnes milled decreased slightly due to lower throughput rates while overall availability and utilisation remained high. Ore tonnes milled comprised mainly fresh ore however the oxide proportion in the feed has increased with the depletion of the Sofia Main fresh material in the quarter.
Average processed grades decreased, as guided, due to the increased quantities of lower grade oxide material processed given the greater focus on waste extraction ahead of the rainy season.
AISC increased from $637 per ounce in Q2-2021 to$ 779 per ounce in Q2-2022 due to lower volumes of ounces sold given the lower grade processed, and higher processing costs mainly driven by the increased fuel costs, which were partially offset by lower mining unit costs due to savings from re-negotiated haulage contracts for Massawa and Sofia ore and improved condition monitoring of mining equipment.
Sustaining capital expenditure of $8.1 million slightly decreased compared to the$ 8.9 million incurred in Q2-2021, was mainly related to waste capitalisation at Sabodala, Massawa Central Zone and Massawa North Zone pits in addition to TSF 1 raise completion and some plant upgrades including replacement of the cyanide mixing facility and certain infrastructure capex.
Non-sustaining capital expenditure of $11.8 million increased compared to the$ 5.2 million incurred in Q2-2021, and was mainly related to the New Sabodala village construction, which is expected to be completed in H2-2022, in addition to Massawa mining area development and initial preparations at the Bambaraya satellite deposit.

H1-2022 vs H1-2021 Insights

Production increased from 134,804 ounces in H1-2021 to 169,230 ounces in H1-2022 as a result of the full period of consolidation following the acquisition of Sabodala in Q1-2021.
AISC decreased from $675 per ounce in H1-2021 to $666 per ounce in H1-2022 as a result of greater volumes of gold sold and lower mining costs due to improved haulage contractor terms.

2022 Outlook

Sabodala-Massawa is on track to achieve its FY-2022 production guidance of 360—375koz with AISC expected to achieve the guided $675—725 per ounce.
Mining activities commenced at both the Massawa Central Zone and Massawa North Zone pits in H1-2022 and are expected to continue for the rest of the year, with supplemental mining expected from the Sofia North and Sabodala pits, while mining at the Sofia Main pit concluded at the end of H1-2022. The Bambaraya satellite pit is being accelerated to provide an additional ore source in the latter part of H2-2022. A greater focus on waste extraction at the Massawa Central and North Zones pits is expected to occur in the latter portion of the year. Mined and processed grades are expected to increase while mill throughput and recovery rates are expected to remain fairly consistent in the upcoming quarters.
The sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $63.0 million, of which $20.3 million has been incurred in H1-2022, which mainly relates to waste stripping activities at Sabodala, Massawa Central Zone and Massawa North Zone and continued investment in new mining equipment.
The non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $34.0 million, of which $21.1 million has been incurred in H1-2021. In H2-2022, non-sustaining capital is expected to mainly relate to the new Sabodala village construction, associated relocation costs and infrastructure and establishment works for the Massawa pits.

Plant Expansion

The Sabodala-Massawa DFS, as published on 4 April 2022, defined a robust expansion project adding a 1.2Mtpa BIOX® plant, designed to process the high-grade refractory ore from the Massawa deposits.
Construction of the expansion project was launched in April 2022 and remains on budget and on schedule for completion in H1-2024. Growth capital expenditure for the expansion project is expected to be approximately $115.0 million in FY-2022, of which $24.4 million was spent in H1-2022 mainly related to detailed engineering and design, earthworks and long lead items including the mills. To date, a total of $108.0 million has been committed, representing 37% of the total $290 million capital expenditure for the expansion project with pricing in line with expectations.
During H1-2022, Endeavour continued to successfully leverage the operating team at Sabodala-Massawa to optimise self-perform opportunities and project support. In early H2-2022, a number of major contracts were finalised, including the full Engineering, Procurement and Construction Management ("EPCM") contract and the power house contract for the 18MW expansion to the existing powerhouse were awarded and the civil package was awarded to a local Senegalese contractor.
Over the upcoming months, construction activities are expected to continue to ramp up, notably on civil works, power plant and BIOX® plant construction and associated infrastructure.

Exploration

An exploration programme of $15.0 million is planned for FY-2022, of which $9.1 million has been spent in H1-2022 with $5.3 million spent in Q2-2022 consisting of 29,344 meters of drilling across 270 drill holes. The exploration programme is focussed on increasing non-refractory resources at targets within the Massawa area including Makana, Delya South, and Kaviar in addition to developing new targets.
During Q2-2022, drilling at Makana aimed to extend the length of the mineralised system which remains open to the North. At Delya South, drilling continued to extend the high grade mineralisation to over 900 meters along strike towards the southwest and the Samina deposit. Drilling at Kaviar extended the existing resource along strike and uncovered similar mineralised structures to the southwest for follow up later this year. At Kiesta, a recently completed scout drilling programme has returned encouraging results that will be followed up later this year.
During the remainder of the year, the exploration programme will be focussed on defining maiden resources at Makana, Delya South, Kaviar and Tiwana, as well as follow up drilling on other Massawa project area targets, including Kiesta.

4.7. Wahgnion Gold Mine, Burkina Faso

Table 10: Wahgnion Key Performance Indicators

	Unit	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating data
Tonnes ore mined	kt	805	1,187	1,905	1,836
Tonnes of waste mined	kt	8,632	6,428	17,705	10,230
Tonnes milled	kt	997	1,016	1,971	1,554
Average gold grade milled	g/t	0.90	1.31	0.95	1.32
Recovery rate	%	92	95	91	95
Gold produced	oz	26,548	40,991	55,437	65,650
Gold sold	oz	26,896	47,732	56,793	77,378
Realised gold price	$/oz	1,852	1,805	1,881	1,794
Financial data
Revenue	$m	49.8	86.1	106.8	138.8
Operating expenses	$m	(36.7)	(38.9)	(64.8)	(65.8)
Royalties	$m	(3.4)	(6.0)	(7.3)	(9.6)
Non-cash operating expenses2	$m	2.2	0.6	0.3	9.0
Total cash cost3	$m	(37.9)	(44.3)	(71.8)	(66.4)
Sustaining capital3	$m	(10.2)	(2.5)	(16.7)	(3.4)
Total AISC3	$m	(48.1)	(46.8)	(88.5)	(69.9)
Non-sustaining capital3	$m	(7.9)	(9.0)	(11.4)	(12.8)
Total all-in costs3	$m	(56.0)	(55.8)	(99.9)	(82.6)
Cash cost per ounce sold3	$/oz	1,409	928	1,264	858
Mine AISC per ounce sold3	$/oz	1,788	980	1,558	903

Analysis of operations is only for the period after its acquisition by Endeavour on 10 February 2021.
2 Non-cash operating expenses relates to the reversal in the period of the fair value adjustment of inventory on hand at the acquisition date.
3 Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

Q2-2022 vs Q2-2021 insights

Production decreased from 40,991 ounces in Q2-2021 to 26,548 ounces in Q2-2022 as a result of the lower processed grades and tonnage, in addition to lower gold recoveries.
Tonnes of ore mined decreased as a result of the higher average strip ratios in the Nogbele North and South pits where there is a higher volume of fresh ore at greater depths.
Tonnes milled decreased as a result of the higher proportion of harder fresh rock milled in line with the mining plan.
Average grade milled decreased due to the scheduled mine sequencing of lower grade ore sourced from the Nogbele North and Nogbele South pits.
Recovery rates decreased due to the higher fresh content in the blend.
AISC increased from $980 per ounce in Q2-2021 to$ 1,788 per ounce in Q2-2022 primarily due to the lower grade fresh material mined and milled resulting in lower a volume of ounces sold, higher mining volumes driven by higher strip ratio, in addition an increase in unit mining costs due to the expected increase in fuel and some consumable costs, and the timing of sustaining capital spend.
Sustaining capital expenditure of $10.2 million, an increase from the$ 2.5 million incurred in Q2-2021, related to waste capitalisation and mining fleet re-builds.
Non-sustaining capital expenditure of $7.9 million, a decrease from the$ 9.0 million incurred in Q2-2021, related mainly to the TSF cell 2 raise, land compensation and resettlement in addition to the construction of the Samavogo haul road which has been accelerated.

H1-2022 vs H1-2021 Insights

Production decreased from 65,650 ounces in H1-2021 to 55,437 ounces in H1-2022 despite the full period of ownership in H1-2022 as a result of lower mill head grades from the mining of lower grade areas, and lower recovery due to the higher proportion of fresh ore milled.
AISC increased from $903 per ounce in H1-2021 to $1,558 per ounce in H1-2022 as a result of the lower volumes of gold sold and higher strip ratio, in addition to the unit mining cost increases related to the expected increase in fuel and explosive costs.

2022 Outlook

Wahgnion is expected to continue to trend below its FY-2022 production guidance of 140—150koz and above its AISC guidance of $1,050—1,150 per ounce for the remainder of the year. Its performance is expected to significantly improve in late 2022 once the higher grade Samavogo pit is commissioned and sustaining capital expenditure is reduced.
In H2-2022, ore is expected to be mainly sourced from the Nogbele North and Nogbele South pits with a decrease in contributions from the Fourkoura pits ahead of the Samavogo pit commissioning. Mill throughput is expected to decrease in Q3-2022 due to the rainy season and recovery rates are expected to increase later in the year due to higher oxide material from the Samavogo pit.
The sustaining capital expenditure for FY-2022 is expected to be slightly above the guidance of $20.0 million, of which $16.7 million has been incurred in H1-2022. In H2-2022, sustaining capital is expected to mainly relate to increased waste volumes and an increase in the heavy mining equipment maintenance requirements.
The non-sustaining capital expenditure outlook for FY-2022 remains unchanged compared to the guidance of $23.0 million, of which $11.4 million has been incurred in H1-2022. In H2-2022, non-sustaining capital is expected to mainly relate to infrastructure required to expand site operations at Samavogo, including land compensation, housing resettlement, haul road construction, and the TSF cell 2 wall raise.

Exploration

An exploration programme of $9.0 million is planned for FY-2022, of which $4.9 million has been spent in H1-2022 with $3.3 million spent in Q2-2022 consisting of 18,693 meters of drilling across 196 drill holes. The programme was focussed on advancing the Ouahiri South and Bozogo targets within close proximity to the Wahgnion mill, as well as evaluating the Nogbele deposit pits for in pit backfilling.
During Q2-2022, drilling at Ouahiri South tested a large soil geochemical anomaly with a systematic drill programme identifying quartz-vein hosted mineralisation associated with a quartz monzodiorite intrusive, with additional results expected later in the year. At the Bozogo target, a soil geochemical anomaly associated with a regional scale fold structure was drilled, with results expected later this year. In addition, drilling at Nogbele pit was primarily focused on identifying the extent of existing mineralised structures while simultaneously assessing the potential of the Nogbele pits for in pit backfilling.
During the remainder of the year, the exploration programme will continue to focus on drilling prospective targets within close proximity to the Wahgnion mill, including additional drilling at Ouahiri South and Bozogo in addition to a new programme at Kasseguera. Kasseguera is a greenfield target located 8 kilometers away from the Wahgnion mill, with a large North-Northeast-trending soil anomaly that has received minimal previous exploration work.

4.8. DISCONTINUED OPERATIONS - KARMA MINE

Table 11: Karma Key Performance Indicators¹

	Unit	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating data
Tonnes ore mined	kt	—	1,253	709	2,496
Tonnes of waste mined	kt	—	4,959	3,038	8,862
Tonnes of ore stacked	kt	—	1,267	768	2,647
Average gold grade stacked	g/t	—	0.91	0.57	0.81
Recovery rate	%	—	68	67	67
Gold produced	oz	—	25,057	10,246	46,630
Gold sold	oz	—	25,615	10,107	48,011
Realised gold price²	$/oz	—	1,729	1,702	1,647
Financial data
Revenue³	$m	—	44.3	17.2	79.1
Operating expenses	$m	—	(23.3)	(13.5)	(46.2)
Royalties	$m	—	(3.9)	(1.7)	(7.2)
Total cash cost³	$m	—	(27.2)	(15.2)	(53.3)
Sustaining capital³	$m	—	(0.3)	—	(0.5)
Total AISC³	$m	—	(27.5)	(15.2)	(53.8)
Non-sustaining capital³	$m	—	(2.1)	(0.5)	(2.9)
Total all-in costs³	$m	—	(29.6)	(15.7)	(56.7)
Cash cost per ounce sold³	$/oz	—	1,062	1,504	1,110
Mine AISC per ounce sold³	$/oz	—	1,074	1,504	1,120

¹Analysis of operations is only for the period up to its disposal by Endeavour on 10 March 2022.
²Revenue and realised gold price are inclusive of the Karma stream.
³Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

On 10 March 2022, the Group completed the sale of its 90% interest in the Karma mine CGU to Néré Mining SA ("Néré"). The consideration upon sale of the Karma mine included (i) a deferred cash payment of $5.0 million to be paid six months after closing of the transaction; (ii) a contingent payment of up to $10.0 million payable twelve months after closing, based on a sliding scale, linked to the average gold price; and (iii) a 2.5% net smelter royalty ("NSR") on all ounces produced by the Karma mine in excess of 160koz of recovered gold from 1 January 2022.

H1-2022 vs H1-2021 Insights

Ore mined for the period was primarily sourced from the GG1 pit with additional contributions from Kao North and Rambo West.
Sustaining capital expenditure was negligible during H1-2022.
Non-sustaining capital expenditure was $0.5 million, which was related to construction of new heap leach cells.

5. FINANCIAL REVIEW

5.1. STATEMENT OF COMPREHENSIVE EARNINGS

Table 12: Statement of Comprehensive Earnings

($m)	Notes	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Revenue	[1]	629.6	709.1	1,315.8	1,310.1
Operating expenses	[2]	(251.2)	(257.7)	(468.7)	(510.1)
Depreciation and depletion	[3]	(139.8)	(144.9)	(291.8)	(261.5)
Royalties	[4]	(38.1)	(40.0)	(79.1)	(81.1)
Earnings from mine operations		200.5	266.5	476.2	457.4
Corporate costs	[5]	(6.8)	(15.9)	(20.8)	(30.2)
Acquisition and restructuring costs	[6]	(1.3)	(14.5)	(1.5)	(26.7)
Share-based compensation	[7]	(3.1)	(9.8)	(10.8)	(17.8)
Other expense	[8]	(10.6)	(7.7)	(12.6)	(11.0)
Exploration costs	[9]	(8.0)	(5.9)	(15.1)	(15.7)
Earnings from operations		170.7	212.7	415.4	356.0
Gain/(loss) on financial instruments	[10]	106.8	(13.3)	(72.0)	28.9
Finance costs, net	[11]	(16.5)	(13.6)	(31.7)	(25.8)
Earnings before taxes		261.0	185.8	311.7	359.1
Current income tax expense	[12]	(64.7)	(44.4)	(139.4)	(116.3)
Deferred income tax recovery/(expense)	[12]	8.2	6.6	(3.0)	13.4
Net earnings/(loss) from discontinued operations	[13]	—	2.9	14.8	(7.3)
Net comprehensive earnings		204.5	150.9	184.1	248.9

Review of results for the three and six months ended 30 June 2022:

Revenue for Q2-2022 decreased by $11\%$ to $\$629.6$ million compared to $\$709.1$ million for Q2-2021. Lower revenues in Q2-2022 was due to lower sales volumes compared to Q2-2021 of 51,458 ounces, an impact of $\$92.3$ million, following lower production volumes, primarily at Boungou and Wahgnion and Q1-2021 gold on hand ounces sold in Q2-2021. This was in part offset by a higher realised gold price that increased from $\$1,795$ per ounce in Q2-2021 to $\$1,832$ per ounce in Q2-2022, a $\$12.8$ million impact.

Revenue for H1-2022 increased by $5.7 million to$ 1,315.8 million compared to $1,310.1 million in H1-2021. The realised gold price increased from $1,779 per ounce in H1-2021 to $1,872 per ounce in H1-2022 which accounted for an increase in revenue of approximately $65.3 million. This was in part offset by 33,486 less ounces sold in H1-2022 compared to H1-2021 driven primarily by the timing of ounces on hand at Teranga acquisition date and sold in H1-2021 which had an impact on H1-2021 revenue of $59.6 million.

Operating expenses for Q2-2022 were $251.2 million compared to$ 257.7 million in Q2-2021. The decrease in operating expenses is primarily due to a decrease in reversals of fair value adjustments to inventory recognised upon acquisition of Teranga in February 2021 and expensed in Q2-2021 relating to Wahgnion and Sabodala-Massawa. This was in part offset by increased processing costs due to higher throughput volumes at Ity and Houndé, and increased energy costs as a result of higher fuel prices.

Operating expenses for H1-2022 were $468.7 million compared to$ 510.1 million in H1-2021. The decrease in operating expenses is primarily attributable to a decrease in the reversal of fair value adjustments to inventory at Sabodala-Massawa that was expensed in H1-2021 and the expense related to the change in inventory associated with gold sold in excess of gold produced in H1-2021 following the Teranga acquisition. This is in part offset by increased operating costs at Sabodala-Massawa and Wahgnion mines due to the comparable cost base for H1-2021 including costs from mid-February 2021 only, increased processing costs at Ity and Houndé due to higher throughput volumes and increased energy costs across operating sites.

Depreciation and depletion in Q2-2022 was $139.8 million compared to$ 144.9 million in Q2-2021 with the decrease mainly attributable to decreased depreciation at the Boungou, Ity and Wahgnion mines as a result of lower contained ounces mined in Q2-2022 compared to Q2-2021.

Depreciation and depletion increased to $291.8 million in H1-2022 compared to$ 261.5 million in H1-2021 with the increase mainly attributable to increased depreciation at the Mana and Sabodala-Massawa mines. The increase in Mana's depreciation is due to higher capitalised amounts being depreciated, while the Sabodala-Massawa depreciation is higher due

to the depreciation for the full six months in 2022 rather than from the date of acquisition in 2021. These are partially offset by lower depreciation at Boungou due to the lower carrying value being depleted as well as lower contained ounces mined in the period.

Royalties remained fairly stable at $38.1 million for Q2-2022, compared to $40.0 million in Q2-2021, and $79.1 million in H1-2022 compared to $81.1 million in H1-2021. The underlying royalty rates based on the sliding scale were 5% for both Burkina Faso, and Côte d'Ivoire while the gold royalty rate in Senegal is a flat 5%.
Corporate costs decreased from $6.8 million in Q2-2022 compared to $15.9 million in Q2-2021, and $20.8 million in H1-2022 compared to $30.2 million in H1-2021. The decrease in corporate costs is primarily due to the LSE listing related costs incurred in 2021 amounting to $5.4 million in Q2-2022 and $8.2 million in H1-2022 respectively.
Acquisition and restructuring costs decreased to $1.3 million in Q2-2022 compared to $14.5 million in Q2-2021, and $1.5 million in H1-2022 compared to $26.7 million in H1-2021. The decrease is primarily due to the costs associated to the acquisition of Teranga incurred in Q2-2021 and H1-2021.
Share-based compensation was $3.1 million in Q2-2022 compared to $9.8 million for Q2-2021, and $10.8 million in H1-2022 compared to $17.8 million in H1-2021. The decrease is mainly due to the timing and lower expense related to performance share units ("PSUs") granted.
Other expenses amounted to $10.6 million for Q2-2022 compared to $7.7 million in Q2-2021, and $12.6 million in H1-2022 compared to $11.0 million in H1-2021. Other expenses relate primarily to non-recurring and unusual expenditures and Q2-2022 consisted primarily of costs relating to the write-off of inventory consumables at Houndé following an incident with a group of ASM in May as described in section 3.2 and the write-down of long outstanding receivables.
Exploration costs in Q2-2022 were $8.0 million compared to $5.9 million in Q2-2021, and $15.1 million in H1-2022 compared to $15.7 million in H1-2021. The increase in Q2-2022 exploration cost is a result of the timing of planned exploration activities.
The gain on financial instruments of $106.8 million in Q2-2022 compared to a loss of $13.3 million in Q2-2021. The gain in Q2-2022 is primarily due to the net impact of an unrealised gain on the gold collar of $33.5 million, an unrealised gain on forward contracts of $72.8 million, and an unrealised gain on revaluation of the conversion option on the convertible senior notes (the "Convertible Notes") of $31.7 million due to the impacts of lower gold spot prices on gold hedge positions and the lower share price assumption per the bond valuation model. The gain was partly offset by foreign exchange losses of $38.5 million, primarily on outstanding cash balances, driven by the weakening of the West African CFA franc against the US dollar.

In H1-2022, the loss on financial instruments of $72.0 million compared to a gain in H1-2021 of $28.9 million. The loss in H1-2022 is primarily due to the net impact of foreign exchange losses of $58.0 million, an unrealised loss on forward contracts of $6.4 million, an unrealised loss on the gold collar of $10.3 million, a realised loss on the settlement of forward contracts of $5.6 million driven predominantly by changes in the gold prices and the West African CFA franc against the US dollar exchange rate. The loss was primarily offset by an unrealised gain on the conversion option on the Convertible Notes of $13.7 million driven by assumption changes per the bond valuation model since the start of the year.

As at the date of this Management Report, forward contracts for approximately 94,600 ounces are expected to be settled in Q3-2022, and forward contracts for approximately 90,000 ounces are expected to be settled in Q4-2022.

Finance costs amounted to $16.5 million for Q2-2022 compared to $13.6 million in Q2-2021, and $31.7 million in H1-2022 compared to $25.8 million in H1-2021. Finance costs are primarily associated with interest expense on the revolving credit facility ("RCF"), Convertible Notes, fixed rate senior notes ("Senior Notes"), and lease liabilities and the increase has been primarily driven by higher debt position following the refinancing completed in Q4-2021.
Current income tax expense was $64.7 million in Q2-2022 compared to $44.4 million in Q2-2021, and $139.4 million in H1-2022 compared to $116.3 million in H1-2021. Current income tax expense for Q2-2022 and H1-2022 increased in comparison to the comparative prior periods primarily due to an increased tax expense at Sabodala-Massawa as a result of the start-up of mining at the Massawa pits and due to an increase in income tax expense at Ity as a result of taxable earnings from production at Société des mines d'Floleu ("Floleu"), a subsidiary company included in the Ity segment, compared to Floleu having a tax loss in the prior year. These are offset by a decrease in tax expense at Boungou associated with lower production levels and revenue generated.

The Group had a deferred tax recovery of $8.2 million and an expense of $3.0 million in the three and six months ended 30 June 2022, respectively, compared to deferred tax recoveries of $6.6 million and $13.4 million in the three and six months ended 30 June 2021, respectively. The deferred tax recovery for the quarter is consistent with prior year. In H1-2021, the Group benefitted from deferred tax recoveries at Sabodala-Massawa associated to the unwinding of the fair value adjustment to inventory. The absence of these recoveries in H1-2022 also contributed to the decreased deferred tax tax expense for H1-2022.

Net comprehensive earnings for H1-2022 included earnings of $14.8 million from discontinued operations related to earnings from the Karma mine which was sold in March 2022.

5.2. CASH FLOWS

Table 13: Summarised Cash Flows

($m)	Note	THREE MONTHS ENDED		SIX MONTHS ENDED
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating cash flows before changes in working capital	[1]	252.5	269.0	622.1	502.3
Changes in working capital	[2]	0.7	15.1	(69.5)	(14.3)
Cash generated from discontinued operations		—	16.4	4.9	10.3
Cash generated from operating activities	[3]	253.2	300.5	557.5	498.3
Cash used in investing activities	[4]	(144.6)	(137.3)	(238.4)	(242.5)
Cash used in financing activities	[5]	(25.9)	(191.7)	(76.0)	(127.0)
Effect of exchange rate changes on cash		(32.5)	(6.7)	(52.5)	(10.5)
Increase/(decrease) in cash and cash equivalents		50.2	(35.2)	190.6	118.3

Operating cash flows before changes in working capital for Q2-2022 was $252.5 million compared to $269.0 million in Q2-2021, and $622.1 million in H1-2022 compared to $502.3 million in H1-2021. The decrease in Q2-2022 compared to Q2-2021 is attributable to decreased revenue resulting from less ounces of gold sold as discussed in section 5.1, while the increase in H1-2022 is due to an increase in revenue as a result of an increased realised gold price as well as less taxes paid.
Income taxes paid by continuing operations amounted to $64.2 million in Q2-2022 compared to$ 104.7 million in Q2-2021, and $92.9 million in H1-2022 compared to $128.3 million in H1-2021. Taxes paid in the three and six months ended 30 June 2022 were lower compared to the comparative periods due to lower final tax instalments paid at Boungou in respect of prior year taxes while less taxes paid associated to a customs audit at Ity also contributed to the decrease in H1-2022 compared to H1-2021. Taxes paid for the three and six months ended 30 June 2022 and 30 June 2021 for each of the Group's mine sites are summarised in the table below:

Table 14: Tax Payments

	THREE MONTHS ENDED		SIX MONTHS ENDED
($m)	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Boungou	2.9	32.4	11.5	33.8
Houndé	17.8	23.0	26.6	26.5
Ity	20.0	21.1	20.2	27.6
Mana	4.4	5.0	7.2	5.0
Sabodala-Massawa	10.8	13.6	16.8	19.4
Wahgnion	5.8	7.9	7.7	7.9
Other1	2.5	1.7	2.9	8.1
Taxes paid by continuing operations	64.2	104.7	92.9	128.3
Karma	—	1.8	—	1.8
Agbaou	—	—	—	19.9
Total taxes paid	64.2	106.5	92.9	150.0

Included in the "Other" category is taxes paid by corporate and exploration entities.

In Q2-2022 and H1-2022 changes in working capital is an inflow of $0.7 million and an outflow of$ 69.5 million respectively, which is broken down as follows:
Trade and other receivables reflected an inflow of $0.4 million for Q2-2022 and an outflow of$ 11.5 million for H1-2022. The inflow in Q2-2022 is mainly due to a decrease in advance royalty payments at Houndé, a decrease in supplier advances and prepayments which were received and/or consumed at Ity, and a decrease in VAT receivables at Mana and Boungou during the quarter, offset by an increase in VAT receivable at Sabodala-Massawa following the expiry of its VAT exemption status in May 2022, as well as an increase in receivables from gold sales at the Sabodala-Massawa mine.

The outflow in H1-2022 is mainly due to an increase in trade receivables at Sabodala-Massawa as VAT receivable increased following the expiry of its VAT exemption status in May 2022 and the was an increase in receivables for gold sales, offset slightly by a decrease in receivables at Mana and Boungou as a result of VAT received during H1-2022.

Inventories was an outflow of $7.2 million for Q2-2022 and an outflow of $41.8 million in H1-2022. The outflow in Q2-2022 was caused primarily by an increase in stockpiles at the Ity mine and an increase in consumables at the Mana, Boungou and Wahgnion mines offset slightly by a decrease in consumables at Houndé and a decrease in stockpiles at the Mana, Boungou and Sabodala Massawa mines.

The H1-2022 outflow was mainly due to an increase in stockpiles at the Ity, Wahgnion and Sabodala-Massawa mines offset slightly by a decrease in stockpiles at Boungou.

Prepaid expenses and other was an inflow of $5.8 million for Q2-2022 and an outflow of $2.2 million for H1-2022. The inflow in Q2-2022 was mainly due to a decrease in prepayments at the Ity, Mana and Wahgnion offset by an increase in prepayments at the Sabodala-Massawa mine. The outflow in H1-2022 was mainly due to an increase in prepayments at the Sabodala-Massawa, Boungou and Wahgnion mines offset slightly by a decrease in prepayments at the Houndé mine.
Trade and other payables reflected an inflow of $1.7 million in Q2-2022 and an outflow of $14.0 million in H1-2022. The inflow in Q2-2022 is mainly a result of an increase in payables at Ity, as well as payables of approximately $32.9 million related to dividends to be paid to the non-controlling shareholders which were declared in Q2-2022 and which will be paid in Q3-2022. The outflow in H1-2022 was mainly related to a decrease in trade payables at corporate and Mana, offset by an increase in trade payables at the Wahgnion, Ity and Boungou mines due to the timing of payments.
Operating cash flows after changes in working capital in Q2-2022 and H1-2022 were $253.2 million and $557.5 million respectively compared to $300.5 million and $498.3 million in Q2-2021 and H1-2021 respectively. Q2-2022 decreased by $47.3 million compared to Q2-2021 mainly due to decreased production levels and gold ounces sold. H1-2022 increased by $59.2 million compared to $498.3 million in H1-2021 due to increased revenues, a decrease in taxes paid and decreased corporate and transaction costs incurred in H1-2021.
Cash flows used by investing activities were $144.6 million and $238.4 million in Q2-2022 and H1-2022 respectively compared to outflows of $137.3 million and $242.5 million in Q2-2021 and H1-2021 respectively. The Q2-2022 amount was higher compared to 2021 mainly due to increased expenditure on mining interests at Sabodala-Massawa following the approval of the plant expansion project while lower capital expenditure at Ity and Mana contributed to the decrease in H1-2022 compared to H1-2021.
Cash flows used in financing activities were $25.9 million and $76.0 million in Q2-2022 and H1-2022 respectively compared to $191.7 million and $127.0 million in Q2-2021 and H1-2021 respectively. The outflows in Q2-2022 consist of acquisition of the Company's own shares of $6.7 million net of payable as part of the share buyback programme, payments of financing and other related costs of $14.0 million and payments of lease liabilities of $5.2 million. The outflow in H1-2022 was due to payments for the acquisition of the Company's own shares of $37.8 million net of payable, the dividend payment of $69.3 million, repayments of lease liabilities of $9.5 million, payment of financing and other fees of $20.1 million, payments for the settlement of shares of $13.4 million in part offset by proceeds from the settlement of warrants of $13.9 million and proceeds from long-term debt of $50.0 million.

In Q2-2022, as part of the annual statutory reporting process at each of the Group's operating entities, certain of the Group's subsidiaries declared dividends to its shareholders, of which a portion will be paid to the non-controlling shareholders. The dividends are generally paid in Q3 of the same year. At 30 June 2022, approximately $32.9 million was payable to the non-controlling interests for dividends declared in Q2-2022, and an additional approximately $31.0 million was declared and approved subsequent to 30 June 2022. The payments of these dividends to the non-controlling interests will be included in the Company's cash flows from financing activities in Q3-2022.

5.3. SUMMARISED STATEMENT OF FINANCIAL POSITION

Table 15: Summarised Statement of Financial Position

($m)	Note	As at 30 June 2022	As at 31 December 2021
ASSETS
Cash and cash equivalents		1,096.8	906.2
Other current assets	[1]	482.0	459.8
Total current assets		1,578.8	1,366.0
Mining interests		4,882.3	4,980.2
Deferred income taxes		—	10.0
Other long term assets	[2]	434.0	414.7
TOTAL ASSETS		6,895.1	6,770.9
LIABILITIES
Other current liabilities	[3]	465.1	397.8
Current portion long-term debt	[4]	347.8	—
Income taxes payable	[5]	204.6	169.3
Total current liabilities		1,017.5	567.1
Long-term debt	[6]	537.3	841.9
Environmental rehabilitation provision	[7]	147.2	162.9
Other long-term liabilities	[8]	52.3	141.0
Deferred income taxes		675.3	672.3
TOTAL LIABILITIES		2,429.6	2,385.2
TOTAL EQUITY		4,465.5	4,385.7
TOTAL EQUITY AND LIABILITIES		6,895.1	6,770.9

Other current assets as at 30 June 2022 consists of $109.5 million of trade and other receivables, $322.7 million of inventories, $12.4 million of other financial assets and $37.4 million of prepaid expenses and other.
Trade and other receivables increased by $4.7 million compared to 31 December 2021 mainly due to an increase in VAT and gold sales receivable at Sabodala Massawa and an increase in amounts receivable from Néré Mining SA for the sale of the Karma mine, offset by a decrease in VAT receivables at Mana and Boungou as well as a decrease in receivables at the Karma mine which were disposed of in March 2022. VAT received during the period ended 30 June 2022 was $53.0 million consisting of proceeds from the Group's mines in Burkina Faso.
Inventories increased by $11.4 million primarily due to increased stockpiles at Houndé, Ity, Sabodala-Massawa and Wahgnion offset by a decrease in finished goods, gold in circuit and stockpiles at Boungou and a decrease in inventories at Karma due to the sale of Karma in March 2022.
Prepaid expenses and other increased by $2.3 million primarily due to an increase in prepayments at the Boungou, Sabodala-Massawa and Wahgnion mines.
Other financial assets of $12.4 million includes contingent consideration of$ 5.0 million receivable for the sale of the Karma mine, and the current portion of the net smelter royalty ("NSR") receivable for the sale of the Agbaou mine of $2.7 million and the current portion of financial assets associated to forward contracts and the gold collar of $1.1 million and $3.6 million, respectively.
Other long-term assets comprise primarily of $134.4 million of goodwill related to the Semafo and Teranga acquisitions,$ 209.5 million of long-term stockpiles not expected to be processed in the next twelve months at the Houndé, Ity and Sabodala-Massawa mines, NSRs of $13.5 million received as consideration upon the sale of the Agbaou and Karma mines,$ 40.0 million related to shares of Allied Gold received as consideration upon the sale of Agbaou, $2.3 million related to the gold collar derivative and $33.9 million of restricted cash relating to reclamation bonds. Other long-term assets increased by $19.3 million at 30 June 2022 relative to the prior year mainly due to an increase in long term stockpiles as well as an increase in amounts receivable for the sale of the Karma mine in March 2022, offset by a decrease in the fair value of derivative financial assets.
Other current liabilities are made up of $361.4 million of trade and other payables,$ 18.8 million of lease liabilities and $84.9 million of other financial liabilities consisting mainly of PSU liabilities, repurchased shares and contingent consideration payable. Trade and other payables increased by $10.4 million mainly due to an increase in payables

associated to dividends to non-controlling interests, offset by a decrease in payroll and social charges payable. Other financial liabilities increased due to the classification of contingent consideration of $47.6 million from non-current financial liabilities to current financial liabilities as it is due in March 2023.

Current portion of long-term debt is made up of the Convertible Notes and the associated conversion option maturing in February 2023.
Income taxes payable increased by $35.3 million compared to the prior year and is due to increased income tax expenses at Ity and Sabodala-Massawa as a result of Massawa being subject to tax in the 2022 period whereas Massawa benefitted from a tax holiday in the 2021 period, and due to taxable profit at Floleu where it had no taxable profit in the comparative periods.
Long-term debt decreased by $304.6 million compared to the prior year due to the reclassification of the Convertible Notes due in Q1-2023 to current liabilities, offset by an increase in the RCF following a$ 50.0 million drawdown in Q1-2022.
The environmental rehabilitation provision decreased by $15.7 million to$ 147.2 million at the end of Q2-2022 mainly due to the sale of the Karma mine.
Other long-term liabilities decreased by $88.7 million to$ 52.3 million mainly due to the redemption of all outstanding warrants during Q1-2022 and due to the reclassification of contingent consideration from long-term liabilities to current liabilities.

5.4. LIQUIDITY AND FINANCIAL CONDITION

Net cash position

The following table summarises the Company's net cash position as at 30 June 2022 and 31 December 2021.

Table 16: Net Cash Position

($m)	30 June 2022	31 December 2021
Cash and cash equivalents	1,096.8	906.2
Less: Principal amount of Senior Notes	(500.0)	(500.0)
Less: Principal amount of Convertible Notes	(330.0)	(330.0)
Less: Drawn portion of corporate loan facilities1	(50.0)	—
Net cash	216.8	76.2
Net cash / adjusted EBITDA LTM ratio2	(0.14)	(0.05)

Corporate loan facilities are presented at face value.
2 Adjusted EBITDA is per table 18 and is calculated using the trailing twelve months adjusted EBITDA.

Equity and capital

On 24 January 2022, the Board of Directors of the Company declared a dividend of $0.28 per share totalling$ 70.0 million. The dividend was paid on 16 March 2022 to shareholders on record on the close of business on 11 February 2022 and resulted in dividends paid of $69.3 million.

Table 17: Outstanding Shares

	30 June 2022	31 December 2021
Shares issued and outstanding
Ordinary voting shares	248,448,061	248,038,422
Stock options	1,144,133	1,573,110

As at 1 August 2022, the Company had 248,448,061 shares issued and outstanding, and 1,144,133 outstanding stock options.

As part of the Company's share buyback programme, subsequent to 30 June 2022 and up to 1 August 2022, the Company has repurchased a total of 144,100 shares at an average price of $19.43 for total cash outflows of$ 2.8 million.

Going concern

The Board of Directors have performed an assessment of whether the Company and Group would be able to continue as a going concern until at least September 2023. In their assessment, the Group has taken into account its financial position, expected

future trading performance, its debt and other available credit facilities, future debt servicing requirements, its working capital and capital expenditure commitments and forecasts.

At 30 June 2022, the Group's net cash position was $216.8 million, calculated as the difference between the current and non-current portion of long-term debt with a principal outstanding of $880.0 million and cash of $1,096.8 million. At 30 June 2022, the Group had undrawn credit facilities of $450.0 million. The Group had current assets of $1,578.8 million and current liabilities of $1,017.5 million representing a total working capital balance (current assets less current liabilities) of $561.3 million as at 30 June 2022 which includes the convertible senior notes due in February 2023. Cash flows from operating activities for the three and six months ended 30 June 2022 were inflows of $253.2 million and $557.5 million respectively.

Based on a detailed cash flow forecast prepared by management, in which it included any reasonable possible change in the key assumptions on which the cash flow forecast is based, the Board of Directors have a reasonable expectation that the Group will have adequate resources to continue in operational existence until at least September 2023 and that at this point in time there are no material uncertainties regarding going concern. Key assumptions underpinning this forecast include consensus analyst gold prices and production volumes in line with annual guidance.

The Board of Directors is satisfied that the going concern basis of accounting is an appropriate assumption to adopt in the preparation of the interim financial statements as at and for the period ended 30 June 2022.

5.5. RELATED PARTY TRANSACTIONS

A related party is considered to include shareholders, affiliates, associates and entities under common control with the Company and members of key management personnel.

Key management compensation

During the six months ended 30 June 2022, an amount of $1.0 million was paid to key management personnel upon termination of their services which is included in acquisition and restructuring costs for the period.

During the year ended 31 December 2021, an amount of $10.8 million was granted to key and senior management personnel as incentive awards for the completion of the Teranga acquisition and the successful listing on the LSE.

Other related party transactions

During the year ended 31 December 2021, the Company entered into a transaction with La Mancha Holding S.àr.l. ("La Mancha") when La Mancha exercised its anti-dilution right to maintain its interest in the Company and completed a $200.0 million private placement for 8,910,592 shares of Endeavour. La Mancha's future anti-dilution rights have now been extinguished and La Mancha's ownership interest in Endeavour was 19.4% at 30 June 2022 (31 December 2021 - 19.5%).

Prior to the Company listing on the LSE, the Group established an Employee Benefits Trust (the "EBT") in connection with the Group's employee share incentive plans, which may hold the Company's own shares in trust to settle future employee share incentive obligations. During the year ended 31 December 2021, the EBT acquired 0.6 million outstanding common shares from certain employees of the Group which remain held in the EBT at 30 June 2022.

In exchange for the shares, a subsidiary of the Company is obligated to repay the employees cash for the fair value of the underlying shares of the Company now held in the EBT ("EGC tracker shares"). Subsequently, additional EGC tracker shares have been issued to certain employees of the Group upon vesting of their PSUs. At 30 June 2022, there were 0.7 million EGC tracker shares outstanding with a fair value of $13.6 million and is included in current other financial liabilities.

5.6. ACCOUNTING POLICIES AND CRITICAL JUDGEMENTS

Critical judgements and key sources of estimation uncertainty

The Company's management has made critical judgments and estimates in the process of applying the Company's accounting policies to the consolidated financial statements that have significant effects on the amounts recognised in the Company's consolidated financial statements. These judgements and estimations include determination of economic viability, capitalisation and depreciation of waste stripping, indicators of impairment, assets held for sale and discontinued operations, fair value of assets acquired and liabilities assumed, recoverability of value added tax, other financial assets, impairment of mining interests and goodwill, estimated recoverable ounces, mineral reserves, environmental rehabilitation costs, inventories, and current income taxes. The judgements applied in the period ended 30 June 2022 are consistent with those in the consolidated financial statements for the year ended 31 December 2021.

6. NON-GAAP MEASURES

This Management Report as well as the Company's other disclosures contain multiple non-GAAP measures, which the Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use to assess the performance of the Company. These do not have a standard meaning and are intended to provide additional information which are not necessarily comparable with similar measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The definitions of these measures, and the reconciliation to the amounts presented in the condensed interim consolidated financial statements, and the reasons for these measures are included below. The non-GAAP measures are consistent with those presented previously and there have been no changes to the bases of calculation.

6.1. EBITDA AND ADJUSTED EBITDA

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use the earnings before interest, tax, depreciation and amortisation ("EBITDA") and the adjusted earnings before interest, tax, depreciation and amortisation ("adjusted EBITDA") to evaluate the Company's performance and ability to generate cash flows and service debt. The following tables provide the illustration of the calculation of this margin, for the three and six months ended 30 June 2022 and 30 June 2021.

Table 18: EBITDA and Adjusted EBITDA

($m)	THREE MONTHS ENDED		SIX MONTHS ENDED
	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Earnings before taxes	261.0	185.8	311.7	359.1
Add back: Depreciation and depletion	139.8	144.9	291.8	261.5
Add back: Finance costs, net	16.5	13.6	31.7	25.8
EBITDA from continuing operations	417.3	344.3	635.2	646.4
Add back: Acquisition and restructuring costs	1.3	14.5	1.5	26.7
Add back: (Gain)/loss on financial instruments	(106.8)	13.3	72.0	(28.9)
Add back: Other expense	10.6	7.7	12.6	11.0
Add back: Non-cash and other adjustments¹	6.1	23.4	4.9	73.1
Adjusted EBITDA from continuing operations	328.5	403.2	726.2	728.3

¹ Non-cash and other adjustments mainly relate to non-cash fair value adjustments to inventory associated with the purchase price allocation of SEMAFO and Teranga. Non-cash and other adjustment have been included in the adjusted EBITDA as they are non-recurring items which are not reflective of the Company's on-going operations, as well as to be consistent with calculation of adjusted earnings.

6.2. CASH AND ALL-IN SUSTAINING COST PER OUNCE OF GOLD SOLD

The Company reports cash costs and all-in sustaining costs based on ounces of gold sold. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors may find this information useful to evaluate the costs of production per ounce. The following table provides a reconciliation of cash costs per ounce of gold sold, for the three and six months ended 30 June 2022 and 30 June 2021.

Table 19: Cash Costs

	THREE MONTHS ENDED		SIX MONTHS ENDED
($m except ounces sold)	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating expenses from mine operations	(251.2)	(257.7)	(468.7)	(510.1)
Royalties	(38.1)	(40.0)	(79.1)	(81.1)
Non-cash and other adjustments	6.1	18.0	4.9	64.9
Cash costs from continuing operations	(283.2)	(279.7)	(542.9)	(526.3)
Gold ounces sold from continuing operations	343,688	395,146	702,782	736,268
Total cash cost per ounce of gold sold from continuing operations	824	708	773	715
Cash costs from discontinued operations	—	(27.2)	(15.2)	(69.2)
Total cash costs from all operations	(283.2)	(306.9)	(558.1)	(595.5)
Gold ounces sold from all operations	343,688	420,761	712,889	798,324
Total cash cost per ounce of gold sold from all operations	824	729	783	746

The Company is reporting all-in sustaining costs per ounce sold. This non-GAAP measure provides investors with transparency regarding the total cash cost of producing an ounce of gold in each period, including those capital expenditures that are required for sustaining the on-going operation of the mines.

Table 20: All-In Sustaining Costs

	THREE MONTHS ENDED		SIX MONTHS ENDED
($m except ounces sold)	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Total cash costs for ounces sold from continuing operations	(283.2)	(279.7)	(542.9)	(526.3)
Corporate costs1	(6.8)	(10.5)	(20.8)	(22.0)
Sustaining capital	(38.0)	(41.3)	(68.8)	(68.6)
All-in sustaining costs from continuing operations	(328.0)	(331.5)	(632.5)	(616.9)
Gold ounces sold	343,688	395,146	702,782	736,268
All-in sustaining costs per ounce sold from continuing operations	954	839	900	838
Including discontinued operations
All in sustaining costs from discontinued operations	—	(27.5)	(15.2)	(69.7)
All-in sustaining costs from all operations	(328.0)	(359.0)	(647.7)	(686.6)
Gold ounces sold	343,688	420,761	712,889	798,324
All-in sustaining cost per ounce sold from all operations	954	853	909	860

Corporate G&A costs included in the calculation for all-in sustaining costs for the prior year comparative periods has been adjusted to exclude expenses associated to listing on the LSE of $5.4 million for the three months and $8.2 million for the six months ended 30 June 2021.

The Company presents its sustaining capital expenditures in its all-in sustaining costs to reflect the capital expenditures related to producing and selling gold from its on-going mine operations. The distinction between sustaining and non-sustaining capital reflects the definition set out by the World Gold Council. Non-sustaining capital is capital expenditure incurred at new projects and costs related to major projects or expansions at existing operations where these projects will materially benefit the operations. This non-GAAP measure provides investors with transparency regarding the capital costs required to support the ongoing operations at its mines, relative to its total capital expenditures. Readers should be aware that these measures do not have a standardised meaning. It is intended to provide additional information and should not be considered in isolation, or as a substitute for measures of performance prepared in accordance with IFRS.

Table 21: Sustaining and Non-Sustaining Capital

($m)	THREE MONTHS ENDED		SIX MONTHS ENDED
	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Expenditures on mining interests	140.3	139.1	229.5	258.0
Additions to leased assets	(2.9)	—	(4.2)	—
Non-sustaining capital expenditures¹	(53.2)	(58.2)	(95.6)	(115.1)
Non-sustaining exploration	(17.1)	(26.8)	(28.2)	(33.0)
Growth projects	(34.3)	(12.5)	(42.2)	(40.6)
Payments for sustaining leases	5.2	—	9.5	—
Sustaining Capital¹	38.0	41.6	68.8	69.3

¹Non-sustaining and sustaining capital expenditures include amounts incurred at the Agbaou and Karma mines.

Table 22: Consolidated Sustaining Capital

($m)	THREE MONTHS ENDED		SIX MONTHS ENDED
	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Boungou	1.8	9.0	3.7	13.1
Houndé	9.3	8.6	14.7	13.3
Ity	6.9	7.1	8.4	12.3
Mana	1.4	5.2	4.2	8.0
Sabodala-Massawa	8.1	8.9	20.3	18.4
Wahgnion	10.2	2.5	16.7	3.4
Corporate	0.3	—	0.8	—
Sustaining capital from continuing operations	38.0	41.3	68.8	68.5
Karma	—	0.3	—	0.5
Agbaou	—	—	—	0.3
Sustaining capital from all operations	38.0	41.6	68.8	69.3

Table 23: Consolidated Non-Sustaining Capital

($m)	THREE MONTHS ENDED		SIX MONTHS ENDED
	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Boungou	8.3	3.9	17.5	8.4
Houndé	3.4	3.0	7.2	9.7
Ity	5.6	8.4	10.7	20.4
Mana	15.1	21.1	25.5	45.2
Sabodala-Massawa	11.8	5.2	21.1	9.7
Wahgnion	7.9	9.0	11.4	12.8
Non-mining	1.1	5.5	1.7	6.0
Non-sustaining capital from continuing operations	53.2	56.1	95.1	112.2
Karma	—	2.1	0.5	2.9
Non-sustaining capital from all operations	53.2	58.2	95.6	115.1

6.3. ADJUSTED NET EARNINGS AND ADJUSTED NET EARNINGS PER SHARE

Net earnings have been adjusted for items considered exceptional in nature and not related to Endeavour's core operation of mining assets or reflective of current operations. The presentation of adjusted net earnings may assist investors and analysts to understand the underlying operating performance of our core mining business. However, adjusted net earnings and adjusted net earnings per share do not have a standard meaning under IFRS. They should not be considered in isolation, or as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS.

The following table reconciles these non-GAAP measures to the most directly comparable IFRS measure.

Table 24: Adjusted Net Earnings

	THREE MONTHS ENDED		SIX MONTHS ENDED
($m except per share amounts)	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Total net and comprehensive earnings	204.5	150.9	184.1	248.9
Net (earnings)/loss from discontinued operations	—	(2.9)	(14.8)	7.3
Acquisition and restructuring costs	1.3	14.5	1.5	26.7
(Gain)/loss on financial instruments	(106.8)	13.3	72.0	(28.9)
Other expenses	10.6	7.7	12.6	11.0
Non-cash, tax and other adjustments1	24.8	19.4	36.3	80.7
Adjusted net earnings2	134.4	202.9	291.7	345.7
Attributable to non-controlling interests3	23.1	28.4	46.8	64.2
Attributable to shareholders of the Company	111.3	174.5	244.9	281.5
Weighted average number of shares issued and outstanding	248.4	251.8	248.5	230.0
Adjusted net earnings from continuing operations per basic share	0.45	0.69	0.99	1.22

1 Non-cash, tax and other adjustments mainly relate to the impact of the foreign exchange remeasurement of deferred tax balances, non-cash fair value adjustments to inventory associated with the purchase price allocation of SEMAFO and Teranga, and the listing fees associated with listing on the LSE.
2 The adjusted net earnings figure for Q2-2021 and H1-2021 has been restated to exclude the impact of share-based compensation and deferred income taxes, other than with respect to the impact of the foreign exchange remeasurement of deferred tax balances, in the adjusted earnings figure in order to increase consistency of this calculation with peer companies, and ensure consistency of the adjustments with the Company's other adjusted metrics (adjusted EBITDA). These items are not adjusted in adjusted earnings as they are not considered non-recurring to the Group's operations.
3 Adjusted net earnings attributable to non-controlling interests is equal to net earnings from continuing operations attributable to non-controlling interests adjusted, which on average is approximately $11\%$ for the Company's operating mines.

6.4. OPERATING CASH FLOW PER SHARE

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use cash flow per share to assess the Company's ability to generate and manage liquid resources. These terms do not have a standard meaning and are intended to provide additional information. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Table 25: Operating Cash Flow ("OCF") and Operating Cash Flow ("OCF") Per Share

	THREE MONTHS ENDED		SIX MONTHS ENDED
($m except per share amounts)	30 June 2022	30 June 2021	30 June 2022	30 June 2021
Operating cash flow
Cash generated from operating activities by continuing operations	253.2	284.1	552.6	488.0
Changes in working capital from continuing operations	(0.7)	(15.1)	69.5	14.3
Operating cash flows before working capital from continuing operations	252.5	269.0	622.1	502.3
Divided by weighted average number of outstanding shares, in millions	248.4	251.8	248.5	230.0
Operating cash flow per share from continuing operations	1.02	1.13	2.22	2.12
Operating cash flow per share before working capital from continuing operations	$1.02	$1.07	$2.50	$2.18

6.5. NET CASH/ADJUSTED EBITDA RATIO

The Company is reporting net cash and net cash/adjusted EBITDA LTM ratio. This non-GAAP measure provides investors with transparency regarding the liquidity position of the Company. It is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The calculation of net cash is shown in table 16. The following table explains the calculation of net cash/adjusted EBITDA LTM ratio using the last twelve months of adjusted EBITDA.

Table 26: Net Cash/ Adjusted EBITDA LTM Ratio

($m)	30 June 2022	31 December 2021
Net cash	(216.8)	(76.2)
Trailing twelve month adjusted EBITDA1	1,507.3	1,536.6
Net cash / adjusted EBITDA LTM ratio	(0.14)	(0.05)

1 Trailing twelve month adjusted EBITDA is calculated using adjusted EBITDA as reported in prior periods for each quarter prior to Q2-2022 adjusted to exclude results of discontinued operations and for the effects of retrospective PPA adjustments.

6.6. RETURN ON CAPITAL EMPLOYED

The Company uses Return on Capital Employed ("ROCE") as a measure of long-term operating performance to measure how effectively management utilises the capital it has been provided. The calculation of ROCE, expressed as a percentage, is adjusted EBIT (based on adjusted EBITDA as per table 18 adjusted to include adjusted EBITDA from discontinued operations) divided by the average of the opening and closing capital employed for the twelve months preceding the period end. Capital employed is the total assets less current liabilities.

Table 27: Return on Capital Employed

	TRAILING TWELVE MONTHS
($m unless otherwise stated)	30 June 2022	30 June 2021
Adjusted EBITDA1	1,488.7	1,364.6
Depreciation and amortisation	(656.2)	(492.3)
Adjusted EBIT (A)	832.5	872.3
Opening capital employed (B)	6,245.2	1,807.8
Total assets	6,895.1	6,885.8
Current liabilities	(1,017.5)	(640.6)
Closing capital employed (C)	5,877.6	6,245.2
Average capital employed (D)=(B+C)/2	6,061.4	4,026.5
ROCE (A)/(D)	14%	22%

1 Adjusted EBITDA has been calculated to include the adjusted EBITDA from discontinued operations.

The decrease in the ROCE for the trailing twelve months ("LTM") to 30 June 2022 reflects the impact of the increase in the average capital employed due to the acquisition of Teranga in Q1-2021, the higher depletion in the LTM depreciation and amortisation due to the increase in the size of the Group's portfolio over that time as well as due to the impact of a reclassification of the Convertible Notes and the associated conversion option maturing in February 2023 from long-term debt to current liabilities.

7. QUARTERLY AND ANNUAL FINANCIAL AND OPERATING RESULTS

The following tables summarise the Company's financial and operational information for the last eight quarters and three fiscal years.

Table 28: 2022 - 2021 Quarterly Key Performance Indicators ${}^{1}$

FOR THE THREE MONTHS ENDED
($m except ounces sold and per share amounts)	30 June 2022	31 March 2022	31 December 2021	30 September 2021
Gold ounces sold	343,688	359,094	370,284	371,739
Revenue	629.6	686.2	663.4	657.4
Operating cash flows generated from continuing operations	253.2	299.4	344.7	309.3
Earnings from mine operations	200.5	275.7	203.2	237.0
Net comprehensive earnings/(loss)	204.5	(20.4)	(109.4)	136.4
Net comprehensive earnings/(loss) from discontinued operations	—	14.8	(17.0)	(4.5)
Net earnings/(loss) from continuing operations attributable to shareholders	189.4	(56.7)	(86.8)	121.8
Net earnings/(loss) from discontinued operations attributable to shareholders	—	14.5	(16.0)	(4.3)
Basic earnings/(loss) per share from continuing operations	0.76	(0.23)	(0.35)	0.49
Diluted earnings/(loss) per share from continuing operations	0.76	(0.23)	(0.35)	0.49
Basic earnings/(loss) per share from all operations	0.76	(0.17)	(0.41)	0.47
Diluted earnings/(loss) per share from all operations	0.76	(0.17)	(0.41)	0.47

Prior year figures for continuing operations have been restated to exclude results of discontinued operations of Karma and Agbaou, as applicable.

Table 29: 2021 - 2020 Quarterly Key Performance Indicators ${}^{1}$

FOR THE THREE MONTHS ENDED
($m except ounces sold and per share amounts)	30 June 2021	31 March 2021	31 December 2020	30 September 2020
Gold ounces sold	395,146	341,122	273,763	212,968
Revenue	709.1	601.0	510.7	399.0
Operating cash flows generated from continuing operations	284.1	203.8	360.4	177.1
Earnings from mine operations	266.5	190.9	245.0	125.8
Net comprehensive earnings	150.9	98.0	29.3	70.2
Net comprehensive earnings/(loss) from discontinued operations	2.9	(10.1)	(123.5)	(5.1)
Net earnings from continuing operations attributable to shareholders	126.3	84.6	137.5	64.0
Net earnings/(loss) from discontinued operations attributable to shareholders	2.4	(11.5)	(115.3)	(2.6)
Basic earnings per share from continuing operations	0.50	0.41	0.84	0.39
Diluted earnings per share from continuing operations	0.50	0.41	0.84	0.39
Basic earnings per share from all operations	0.51	0.35	0.14	0.38
Diluted earnings per share from all operations	0.51	0.35	0.14	0.38

Prior year figures for continuing operations have been restated to exclude results of discontinued operations of Karma and Agbaou, as applicable.

Table 30: Annual Key Performance Indicators

FOR THE YEAR ENDED

($m except ounces sold and per share amounts)	31 December 2019	31 December 2020	31 December 2019
Gold ounces sold	1,478,291	710,493	415,134
Revenue	2,630.8	1,278.9	583.7
Operating cash flows from continuing operations	1,142.0	677.8	146.7
Operating cash flows from discontinued operations	24.1	71.2	155.2
Earnings from mine operations	501.7	426.9	93.1
Net and comprehensive earnings/(loss) from continuing operations	304.6	217.8	(57.8)
Net and comprehensive loss from discontinued operations	(28.8)	(105.5)	(83.3)
Net earnings/(loss) from continuing operations attributable to shareholders	245.0	174.7	(74.4)
Net earnings/(loss) attributable to shareholders	215.5	73.1	(163.7)
Basic earnings/(loss) per share from continuing operations	1.02	1.28	(0.69)
Diluted earnings/(loss) per share from continuing operations	1.01	1.28	(0.69)
Basic earnings/(loss) per share	0.90	0.53	(1.49)
Diluted earnings/(loss) per share	0.89	0.53	(1.49)
Total assets	6,770.9	3,881.7	1,872.8
Total long term liabilities (excluding deferred taxes)	1,145.8	792.7	738.3
Total attributable shareholders’ equity	3,921.5	2,057.0	717.9
Adjusted net earnings per share	2.57	3.29	0.33

$^{1}$ Prior year figures for continuing operations have been restated to exclude results of discontinued operations of Karma and Agbaou, as applicable.

8. PRINCIPAL RISKS AND UNCERTAINTIES

Readers of this Management Report should consider the information included in the Company's consolidated financial statements and related notes for the three and six months ended 30 June 2022. The nature of the Company's activities and the locations in which it works mean that the Company's business generally is exposed to significant risk factors, many of which are beyond its control. The Company examines the various risks to which it is exposed and assesses any impact and likelihood of those risks. For discussion on all the risk factors that affect the Company's business generally, please refer to the prospectus prepared as part of the admission to the premium listing segment of the Official List and to trading on the Main Market of the London Stock Exchange (the "Prospectus"), and the annual consolidated financial statements of the Group for the year ended 31 December 2021 ("annual report"), both which are available on its website, www.endeavourmining.com and the Company's most recent Annual Information Form filed on SEDAR at www.sedar.com. The risks that affect the consolidated financial statements specifically, and the risks that are reasonably likely to affect them in the future which are incorporated by reference in this Management Report, are set out below.

Principal risks

Security risk

Our people, contractors and suppliers face the risk of terrorism, kidnapping, extortion and harm due to insecurity in some of the jurisdictions in which we operate. We face the risk of restricted access to operations and projects and theft of assets. The influence of terrorist organisations and other criminal elements and general lawlessness in some of the countries in which we operate make working in these areas particularly risky for us. The risk of terrorism could reduce our ability to carry out the exploration activities required to replace depleted resources and extend mine life, reduce our ability to resupply, or increase the cost of resupplying, our mines, and may impact the value of our assets.

Geopolitical risk

We operate and own assets in countries in Western Africa, some of which are categorised as developing, complex or having unstable political or social climates. As a result, we are exposed to a wide range of political, economic, regulatory, social and tax environments. Our operations may also be affected by political and economic instability, including terrorism, civil disturbance, crime, and social disruption. Political and economic conditions could change, with future governments adopting different laws or policies that may affect the cost of our operations or the manner in which we conduct them, as well as exchange rates and our ability to repatriate capital, procure key supplies internationally and export gold. Aggressive interpretation and enforcement of tax codes by local tax authorities has led to more tax audits and in some cases disputes with our host governments. Adverse actions by governments can also result in operational and or project delays or the loss of critical permits.

Geopolitical risk in the countries where we operate could affect our credit rating, which in turn could increase our cost of borrowing and free cash flow and result in lower levels of capital investment and production. The continued operation of our existing assets and future plans depend in part on our ability to secure and maintain key permits. The suspension or loss of key permits could have a material impact on our ability to execute our mine plans and shorten mine life.

Policies and laws in the countries in which we operate may change in a manner that may negatively affect the Group. Failure to be up-to-date with any changes in the government or changes in government policy could result in inability to respond and adapt to political and policy changes and social disruption. All of these factors could, therefore, affect the long-term viability of our business.

Commodity price risk

Our business is heavily dependent on the price of gold. Commodity prices can fluctuate significantly on a daily basis and are affected by numerous factors beyond our control including global supply and demand, the monetary policies employed by central banks, interest rates and investor sentiment. Any decline in our realised prices adversely impacts our revenues, net income and operating cash flows, thereby limiting shareholder returns. Falling gold prices may also trigger impairments, impact our credit rating and halt or delay the development of new projects.

Supply chain macroeconomic risk

Operations may be affected by the Group's potential inability to source and receive critical materials and services. Supply chains are subject to a number of risks not wholly within the Group's control, including: terrorism, political instability leading to the closing of borders, exchange rate fluctuation, inflation and changes in law (including increased environmental standards, international sanctions and local content requirements). Any disruption to supply chains could impact production, may require unplanned expenditure and could negatively impact cash flows. The Group is monitoring the impact of the current Russia-Ukraine conflict on global supply chains and the effect on energy and commodity prices.

Community relations risk

We are cognisant that our activities have both a positive and a negative impact on the local communities in which we work and on society as a whole. A perception that we are not respecting human rights or generating local sustainable benefits could have a negative impact on our "social licence to operate" and our ability to secure new resources and result in production disruptions and an increase in operating costs. The consequences of adverse community relations or allegations of human rights incidents

could also adversely affect the cost, profitability, ability to finance or even the viability of an operation, as well as the safety and security of our workforce and assets. Local events could escalate to disputes with regional or national governments, as well as with other stakeholders, and potentially result in reputational damage and social instability that may affect the perceived and real value of our assets.

Operational performance risk

The Group's projects and existing operations may fail to achieve or maintain planned production levels. Operations are subject to a number of risks not wholly within the Group's control, including: pandemic, extreme weather or other natural phenomena; geological and technological challenges; loss or interruption to key supplies such as electricity and water; damage to or failure of equipment and infrastructure; information technology and cybersecurity risks; and the availability of vital services.

Capital projects risk

The pursuit of advanced project development opportunities is essential to meeting our strategic goals. However, projects may fail to achieve desired economic returns due to: an inability to recover mineral resources; a design or construction inadequacy; a failure to achieve expected operating parameters; capital or operating costs being higher than expected. Failure to manage new projects effectively or a lack of available financing may prevent or delay the completion of projects.

Talent risk

The expertise and skills of our people are key to our success. Failure to select, recruit, retain and engage the people we need could have an impact on our operations or the successful implementation of growth projects, potentially increasing the cost of recruiting adequate people.

Cybersecurity risk

Companies are becoming more vulnerable to cyber threats due to the increasing reliance on computers, networks, programs, digital technology, social media and data globally. A data breach, cyber-attack or failure of Endeavour's IT system could have a negative impact on the business and cause reputational damage and financial and legal exposure for the Group.

Although Endeavour invests heavily to monitor, maintain, and regularly upgrade its systems, there remains a risk that we may be unable to prevent, detect, and respond to cyber-attacks in a timely manner.

Environmental risk

Mining operations are inherently hazardous with the potential to cause environmental damage, illness or injury and disruption to communities. Major hazards include process safety, surface mining and tailings storage. The Group is subject to environmental compliance obligations which are continually developing. Failure to comply could lead to reputational damage, the imposition of financial penalties and the suspension of operating licences. As environmental practices continue to face further scrutiny, this could affect the Group's operations or access to capital.

Regulatory compliance risk

The Group is exposed to various legal and regulatory requirements across all its jurisdictions. Legislation may be subject to change, whilst uncertainty of interpretation, application and enforcement may result in failure to comply with legal requirements. Non-compliance with legislation could result in regulatory challenges, fines, litigation and, ultimately, the loss of operating licences.

As the Group has assets in Western Africa and operates in international markets, we are particularly exposed to the risks of fraud, corruption, sanctions breaches and other unlawful activities both internally and externally.

The Group may also be the subject of legal claims brought by private parties. Any successful claims brought against the Group could result in material damages being awarded against the Group.

Other risks

The Company's activities expose it to a variety of risks that may include credit risk, liquidity risk, currency risk, interest rate risk and other price risks, including equity price risk. The Company examines the various financial instrument risks to which it is exposed and assesses any impact and likelihood of those risks.

Credit risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. Credit risk arises from cash, restricted cash, marketable securities, trade and other receivables, long-term receivable and other assets.

The Company manages the credit risk associated with cash by investing these funds with highly rated financial institutions, and by monitoring its concentration of cash held in any one institution. As such, the Company deems the credit risk on its cash to be low.

The Company closely monitors its financial assets and does not have any significant concentration of credit risk other than receivable balances owed from the governments in the countries the Company operates in. The Company monitors the amounts outstanding from its third parties regularly and does not believe that there is a significant level of credit risk associated with

these receivables given the current nature of the amounts outstanding and the on-going customer/supplier relationships with those companies.

The Corporation sells its gold to large international organisations with strong credit ratings, and the historical level of customer defaults is minimal. As a result, the credit risk associated with gold trade receivables at 30 June 2022 is considered to be negligible. The Company does not rely on ratings issued by credit rating agencies in evaluating counterparties' related credit risk.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities that are settled by delivering cash, physical gold or another financial asset. The Company has a planning and budgeting process in place to help determine the funds required to support the Company's normal operating requirements. The Company ensures that it has sufficient cash and cash equivalents and loan facilities available to meet its short term obligations.

Currency risk

Currency risk relates to the risk that the fair values or future cash flows of the Company's financial instruments will fluctuate because of changes in foreign exchange rates. Exchange rate fluctuations may affect the costs that the Company incurs in its operations. There has been no change in the Company's objectives and policies for managing this risk during the period ended 30 June 2022.

The Company has not hedged its exposure to foreign currency exchange risk.

Interest rate risk

Interest rate risk is the risk that future cash flows from, or the fair values of, the Company's financial instruments will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk primarily on its long-term debt. Since marketable securities and government treasury securities held as loans are short term in nature and are usually held to maturity, there is minimal fair value sensitivity to changes in interest rates. The Company continually monitors its exposure to interest rates and is comfortable with its exposure given the relatively low short-term US interest rates and Secured Overnight Financing Rate ("SOFR").

9. CONTROLS AND PROCEDURES

9.1. DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported on a timely basis to senior management, including the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO). Additionally, these controls and procedures provide reasonable assurance that information required to be disclosed in the Company's annual and interim filings (as such terms are defined under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings) and other reports filed or submitted under Canadian securities law is recorded, processed, summarised and reported within the time periods specified by those laws, and that material information is accumulated and communicated to management including the CEO and CFO as appropriate to allow timely decisions regarding required disclosure.

Management evaluated the design and operating effectiveness of the Company's disclosure controls and procedures as required by Canadian Securities Law. Based on that evaluation, the CEO and CFO concluded that as of 31 December 2021, the disclosure controls and procedures were effective.

9.2. INTERNAL CONTROLS OVER FINANCIAL REPORTING

The Company's management, including the CEO and CFO, is responsible for establishing and maintaining adequate internal controls over financial reporting. Under the supervision of the CFO, the Company's internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

There have been no material changes in the Company's internal controls over financial reporting since the year ended 31 December 2021 that have materially affected or are reasonably likely to materially affect the Company's internal controls over financial reporting.

9.3. LIMITATIONS OF CONTROLS AND PROCEDURES

The Company's management, including the CEO and CFO believe that any disclosure controls and procedures or internal control over financial reporting, can provide only reasonable, but not absolute, assurance that the objectives of the control system are met. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the actions of one individual, by collusion of two or more people, or by unauthorised override of the control. Accordingly, because of the inherent limitations in a control system, misstatements due to error or fraud may occur and not be detected.

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Endeavour Mining PLC — Management Reports 2022

5068_rns_2022-08-03_df5f93f0-5403-4277-a1b0-d2420d1997eb.pdf

ENDEAVOUR MINING

MANAGEMENT REPORT

Table of Contents

MANAGEMENT REPORT

1. BUSINESS OVERVIEW

1.1. OPERATIONS DESCRIPTION

2. HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2022

3. ENVIRONMENT, SOCIAL AND GOVERNANCE

3.1. HEALTH AND SAFETY

3.2. ESG UPDATES AND PERFORMANCE

2021 Sustainability Report

ESG Ratings Agency Update

Update on the Endeavour Foundation

The Responsible Gold Mining Principles

Incident at Houndé

4. OPERATIONS REVIEW

4.1. Operational Review Summary

4.2. Boungou Gold Mine, Burkina Faso

Q2-2022 vs Q2-2021 insights

H1-2022 vs H1-2021 Insights

2022 Outlook

Exploration

Q2-2022 vs Q2-2021 Insights

H1-2022 vs H1-2021 Insights

2022 Outlook

Exploration

Q2-2022 vs Q2-2021 insights

H1-2022 vs H1-2021 Insights

2022 Outlook

Exploration

Q2-2022 vs Q2-2021 insights

H1-2022 vs H1-2021 Insights

2022 Outlook

Exploration

4.6. Sabodala-Massawa Gold Mine, Senegal

Q2-2022 vs Q2-2021 insights

4.7. Wahgnion Gold Mine, Burkina Faso

Q2-2022 vs Q2-2021 insights

H1-2022 vs H1-2021 Insights

5. FINANCIAL REVIEW

5.1. STATEMENT OF COMPREHENSIVE EARNINGS

Review of results for the three and six months ended 30 June 2022:

5.3. SUMMARISED STATEMENT OF FINANCIAL POSITION

5.4. LIQUIDITY AND FINANCIAL CONDITION

Equity and capital

Going concern

5.5. RELATED PARTY TRANSACTIONS

Key management compensation

Other related party transactions

5.6. ACCOUNTING POLICIES AND CRITICAL JUDGEMENTS

Critical judgements and key sources of estimation uncertainty

6. NON-GAAP MEASURES

6.1. EBITDA AND ADJUSTED EBITDA

6.2. CASH AND ALL-IN SUSTAINING COST PER OUNCE OF GOLD SOLD

6.3. ADJUSTED NET EARNINGS AND ADJUSTED NET EARNINGS PER SHARE

6.4. OPERATING CASH FLOW PER SHARE

6.5. NET CASH/ADJUSTED EBITDA RATIO

6.6. RETURN ON CAPITAL EMPLOYED

7. QUARTERLY AND ANNUAL FINANCIAL AND OPERATING RESULTS

8. PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks

Security risk

Geopolitical risk

Commodity price risk

Supply chain macroeconomic risk

Community relations risk

Operational performance risk

Capital projects risk

Talent risk

Cybersecurity risk

Environmental risk

Regulatory compliance risk

Other risks

Credit risk

Liquidity risk

Currency risk

Interest rate risk

Endeavour Mining PLC Management Reports 2022