MANAGEMENT REPORT

For the three and nine months ended 30 September 2022 and 2024

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

MANAGEMENT REPORT

BUSINESS OVERVIEW ... 3
1.1. OPERATIONS DESCRIPTION ... 3
HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER 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 ... 35
CONTROLS AND PROCEDURES ... 38
9.1. DISCLOSURE CONTROLS AND PROCEDURES ... 38
9.2. INTERNAL CONTROLS OVER FINANCIAL REPORTING ... 38
9.3. LIMITATIONS OF CONTROLS AND PROCEDURES ... 38

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

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

1. BUSINESS OVERVIEW

1.1. OPERATIONS DESCRIPTION

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

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

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

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

Table 1: Consolidated Highlights

(£m)	Unit	THREE MONTHS ENDED		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating data from continuing operations
Gold produced	oz	342,743	361,706	1,044,936	1,058,330
Gold sold	oz	338,054	371,739	1,040,836	1,108,007
Realised gold price¹	$/oz	1,679	1,768	1,810	1,776
All-in sustaining costs ("AISC") per ounce sold²	$/oz	960	885	920	854
Cash flow data from continuing operations
Operating cash flows before working capital	$	195.1	317.3	827.9	815.5
Operating cash flows before working capital per share²	$/share	0.79	1.27	3.34	3.44
Operating cash flows	$	153.7	309.3	706.3	797.4
Operating cash flows per share²	$/share	0.62	1.24	2.85	3.37
Earnings data from continuing operations
Revenue¹	$	567.6	657.4	1,883.4	1,967.5
Earnings from mine operations	$	127.5	237.0	603.7	694.4
Net comprehensive earnings attributable to shareholders	$	57.6	121.9	190.3	331.6
Basic earnings per share attributable to shareholders	$/share	0.23	0.49	0.77	1.40
EBITDA²,³	$	302.0	338.8	937.2	985.3
Adjusted EBITDA²,³	$	255.7	369.8	981.9	1,089.9
Adjusted net earnings attributable to shareholders²	$	36.5	168.0	281.2	449.3
Adjusted net earnings per share attributable to shareholders²	$/share	0.15	0.67	1.13	1.90
Balance sheet data
Cash	$	832.5	760.4	832.5	760.4
Net cash/(Net debt)²	$	2.5	(69.6)	2.5	(69.6)
Net cash/(Net debt)/Adjusted EBITDA (LTM) ratio²,³	:	—	(0.05)	—	(0.05)

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 September 2022. The Group's lost time injury frequency rate ("LTIFR") continues to be well below the industry benchmark.

Regrettably, on 27 October 2022, a fatal accident occurred at the Ity mine in Côte d'Ivoire. A contractor passed away as a result of injuries sustained in an incident that occurred during blasting activities. Endeavour is conducting a comprehensive internal investigation into the incident and is working closely with the relevant local authorities.

Table 2: LTIFR¹ and TRIFR² Statistics for the Trailing Twelve Months ended 30 September 2022

	Fatality	Lost Time Injury	Total People Hours	Incident Category
				LTIFR¹	TRIFR²
Boungou	—	—	3,231,333	—	0.62
Houndé	—	1	5,298,190	0.19	1.32
Ity	—	—	7,185,279	—	0.28
Mana	—	—	4,590,030	—	1.74
Non Operations³	—	—	6,230,211	—	0.64
Sabodala-Massawa	—	2	7,285,409	0.27	1.78
Wahgnion	—	—	6,710,847	—	1.04
Total	—	3	40,531,299	0.07	1.06

¹LTIFR = 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

ESG Rating Agency Update

On 5 October 2022, Endeavour received an updated rating from the Sustainalytics Ratings Agency of 23.9, which equates to a 'Medium Risk' rating and places Endeavour in the top 10 percentile in the gold sub-industry.

Tax and Economic Contribution Report

Endeavour will be publishing its first standalone Tax and Economic Contribution Report during Q4-2022, following its listing on the premium segment of the London Stock Exchange in June 2021. This report complements and expands upon the Extractive Sector Transparency Measures Act ("ESTMA") reports that have been filed annually with the Canadian authorities, and which are available on Endeavour's website.

Highlights from the Report include:

$2.35 billion in total economic contribution, which includes the following:
$413 million in total taxes to host governments
$141 million in royalty payments to host governments
$56 million in dividend and other payments to host governments
$1.6 billion in total procurement spend
$164 million in wages and related payments
Total contributions to the countries where we are operating as follows:
$1.45 billion in total economic contribution to Burkina Faso
$325 million in total economic contribution to Côte d'Ivoire
$434 million in total economic contribution to Senegal
$143 million in total economic contribution to other West African countries

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 conducted 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. A statement of assurance is expected to be disclosed in the 2022 Sustainability Report, which is due to be published in Q2-2023.

Gold Industry Declaration of Responsibility and Sustainability Principles

On 18 October 2022, the gold industry came together, convened by World Gold Council and the LBMA, to sign a Declaration of Responsibility and Sustainability Principles (the "Declaration" of "the Principles") which formally expresses a shared commitment to operating in a responsible and sustainable way based on clear set of shared goals. The Declaration was announced at the LBMA/LPPM Global Precious Metals Conference in Lisbon.

The Declaration commits the signatories to ten principles:

Aligning gold industry practices and operations with the relevant responsible sourcing standards.
Supporting the advancement of the UN Sustainable Development Goals ("SDGs") by working with partners in government, industry, and civil society.
Respecting human rights by aligning the gold industry's activities with the United Nations Guiding Principles for Business and Human Rights and the core labour rights of the International Labour Organisation, including an absolute commitment to high safety and health standards.
Promoting diversity, equity, and inclusion in our organisations and across the industry, supporting the representation and participation of people of different genders, ages, races and ethnicities, abilities and disabilities, religions, cultures and sexual orientations.
Considering the impact of the gold industry's activities on Indigenous Peoples and other potentially vulnerable populations.

Improving the gold industry's understanding of its impacts on climate change and to reporting its positions on climate change, aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures ("TCFD").
Working to reduce the gold industry's greenhouse gas emissions, in line with goals of the Paris Agreement.
Exploring opportunities to support responsible Artisanal and Small-Scale Gold Mining ("AGSM") in the formalisation of the sector, to improve its environmental, social and governance performance, and to encourage closer engagement between ASGM actors and the formal gold supply chain.
Encouraging industry-wide participation and collaboration in advancing and implementing these Principles.
Reporting on progress in the implementation of these Principles.

Demonstrating alignment with the Declaration of the Principles

The Declaration is intended as a clear statement of sectoral aspiration and intent. Gold mining companies can demonstrate their alignment with the Declaration through adherence to the World Gold Council's RGMPs.

Changes to Board of Directors

On 15 August 2022, Endeavour announced that David Mimran, Non-Executive Director, was stepping down as a Director of the Company. On 29 September 2022, Endeavour announced the appointment of Sakhila Mirza to the Board as an Independent Non-Executive Director. As such, Endeavour's Board is now comprised of nine members, of which the following five members are considered independent under the UK Corporate Governance Code: Alison Baker, Ian Cockerill (Senior Independent Director), Livia Mahler, Sakhila Mirza, and Tertius Zongo. The Chair, Srinivasan Venkatakrishnan ("Venkat"), was considered independent at the time of his appointment. In addition, James Askew and Naguib Sawiris serve as Non-Executive Directors, alongside Sébastien de Montessus as Executive Director, President and CEO.

Voting Results Update Statement

In accordance with the UK Corporate Governance Code, the Company is providing an update in relation to the results of the 2022 Annual General Meeting ("AGM") vote. Resolution 13 (To Approve Directors' Remuneration Policy), being the binding resolution, received the support of 90.52% of shareholders. Resolution 14 (To Approve Directors' Remuneration Report) being the advisory resolution received the support of 70.14% of shareholders.

Significant changes were made to the Board of Directors at the AGM, including the appointment of Venkat as Chair of the Board and Ian Cockerill as Senior Independent Director. Following the AGM, the Chair proposed to reconstitute the committees of the Board and Ian Cockerill was appointed to the Remuneration Committee ("RemCo") alongside Tertius Zongo and Livia Mahler (RemCo Chair). This brought the Company's approach to the RemCo composition into alignment with the Code, as all members should be independent and the RemCo Chair should not be the Chair of the Board, as had been the case with the Company's prior Chair.

From July to September, the Company contacted and met with a significant number of shareholders to discuss their opinions and to solicit feedback on the nature of the matters which had led to the lower vote for Resolution 14. The Chairman met with shareholders representing over 70% of the register, including the largest shareholders who had voted against Resolution 14. The matters raised by shareholders principally related to the pensionable treatment of STIP awards for the CEO (though consistent with treatment of all other UK employees), the one-off award granted to the CEO linked to the Company's redomiciliation to the UK in anticipation of the LSE listing, and consequently the total quantum of CEO remuneration for 2021. The RemCo will continue to work with Willis Towers Watson, the remuneration adviser to the Board, to determine how the Company can best address these matters ahead of the 2023 AGM. The Chair of RemCo will also undertake follow-up engagement with proxy advisers and shareholders during the early stages of the 2023 AGM season.

4. OPERATIONS REVIEW

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

4.1. Operational Review Summary

Q3-2022 production from continuing operations amounted to 342,743 ounces, a decrease of 18,963 ounces or 5% compared to Q3-2021, due primarily to the lower average grades at Sabodala-Massawa, Boungou, and Wahgnion.
AISC from continuing operations increased by $75 per ounce to $960 per ounce compared to Q3-2021, mainly due to the decrease in amount of gold sold 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.
YTD-2022 production from continuing operations decreased by 13,394 ounces or 1%, due to lower average grades at Boungou and Wahgnion, partially offset by strong production performances at Ity and Hounde, and the full year to date benefit of Sabodala-Massawa and Wahgnion which were acquired in Q1-2021. AISC from continuing operations increased by $66 per ounce or 8% to $920 per ounce in YTD-2022 due to an increase in AISC at the Wahgnion and Boungou mines.

Table 3: Group Production

(All amounts in oz, on a 100% basis)	THREE MONTHS ENDED		NINE MONTHS ENDED
	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Boungou	29,275	40,844	90,121	139,393
Houndé	72,302	70,209	232,375	215,895
Ity	80,897	61,494	230,169	211,863
Mana	41,667	49,101	149,002	150,667
Sabodala-Massawa^{1}	86,293	105,913	255,523	240,717
Wahgnion^{1}	32,309	34,145	87,746	99,795
PRODUCTION FROM CONTINUING OPERATIONS	342,743	361,706	1,044,936	1,058,330
Karma^{2}	—	20,567	10,246	67,197
Agbaou^{3}	—	—	—	12,575
GROUP PRODUCTION	342,743	382,273	1,055,182	1,138,102

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		NINE MONTHS ENDED
	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Boungou	1,219	800	1,051	795
Houndé	716	921	767	833
Ity	773	915	799	830
Mana	1,098	1,029	993	996
Sabodala-Massawa^{2}	779	655	703	667
Wahgnion^{2}	1,647	1,097	1,590	964
Corporate G&A	37	24	32	28
AISC^{1} FROM CONTINUING OPERATIONS	960	885	920	854
Karma^{3}	—	1,256	1,504	1,162
Agbaou^{4}	—	—	—	1,131
GROUP AISC^{1}	960	904	925	875

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		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating data
Tonnes ore mined	kt	210	539	734	1,136
Tonnes of waste mined	kt	3,349	6,587	14,274	21,009
Tonnes of ore milled	kt	338	349	1,053	1,000
Average gold grade milled	g/t	2.84	3.76	2.78	4.34
Recovery rate	%	94	95	94	95
Gold produced	oz	29,275	40,844	90,121	139,393
Gold sold	oz	30,199	41,286	93,342	137,119
Realised gold price	$/oz	1,685	1,774	1,818	1,780
Financial data
Revenue	$m	50.9	73.2	169.7	244.1
Operating expenses	$m	(32.4)	(25.2)	(82.9)	(82.2)
Royalties	$m	(3.0)	(4.4)	(10.1)	(14.7)
Non-cash operating expenses1	$m	—	—	—	4.3
Total cash cost2	$m	(35.4)	(29.6)	(93.0)	(92.5)
Sustaining capital2	$m	(1.4)	(3.4)	(5.1)	(16.5)
Total AISC2	$m	(36.8)	(33.0)	(98.1)	(109.0)
Non-sustaining capital2	$m	(4.0)	(5.4)	(21.5)	(13.9)
Total all-in costs2	$m	(40.8)	(38.5)	(119.6)	(122.9)
Cash cost per ounce sold2	$/oz	1,172	717	996	675
Mine AISC per ounce sold2	$/oz	1,219	800	1,051	795

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.

Q3-2022 vs Q3-2021 Insights

Production decreased from 40,844 ounces in Q3-2021 to 29,275 ounces in Q3-2022 due to lower average grades processed and slightly lower tonnes milled.
Total tonnes mined and tonnes of ore mined decreased as mining activities were reduced in order to manage production through supply chain delays. Ore tonnes mined during the quarter were sourced from the West pit phase 3 with waste development focussed on the West pit flank.
Tonnes milled decreased due to slightly lower mill availability and utilisation.
Processed grade decreased as Q3-2021 benefited from mining the higher grade West pit stage 2 while low grade stockpiles supplemented the ore feed from West pit stage 3 in Q3-2021 given lower volumes of ore mined.
AISC increased from $800 per ounce in Q3-2021 to$ 1,219 per ounce in Q3-2022 due to the significant decrease in the volume of gold sold and an increase in unit mining costs due to increased fuel and consumable costs in Q3-2022 compared to Q3-2021, which were partially offset by lower sustaining capital spend.
Sustaining capital expenditure amounted to $1.4 million in Q3-2022 a decrease from$ 3.4 million in Q3-2021, with the capital spend primarily relating to mining infrastructure and capital spares.
Non-sustaining capital expenditure amounted to $4.0 million in Q3-2022, a decrease from$ 5.4 million in Q3-2021, with the capital spend primarily relating to pre-stripping activity at the West pit flank.

YTD-2022 vs YTD-2021 Insights

Production decreased from 139,393 ounces YTD-2021 to 90,121 ounces YTD-2022 primarily due to lower processed grades and supply chain delays in YTD-2022, while higher grade stockpiles were used to supplement the higher grade ore sourced from the West pit in 2021.
AISC increased from $795 per ounce YTD-2021 to$ 1,051 per ounce YTD-2022 as a result of the decrease in gold volumes sold, higher unit mining costs and use of lower grade stockpiles, which were partially offset by lower sustaining capital spend.

2022 Outlook

Boungou's FY-2022 production is expected to be below the guided 130—140koz range and its FY-2022 AISC is expected to be above its $900 - $1,000 per ounce range, given supply chain delays which are limiting mining activities and causing production interruptions.
In Q4-2022, waste extraction is expected to continue in the West pit and West pit flank, while ore is expected to continue to be sourced mainly from the West pit. Mill throughput is expected to be significantly lower during the quarter as a result of supply chain delays which has resulted in several plant downtimes during the quarter to date, while grades are expected to remain flat as the higher grade ore from the West pit is expected to be blended with lower grade stockpiles.
The sustaining capital expenditure for FY-2022 is expected to be below the guidance of $15.0 million, of which $5.1 million has been incurred YTD-2022 as a result of lower than planned waste tonnes mined from the East pit in H1-2022 resulting in lower capitalised waste. In Q4-2022, sustaining capital expenditure is expected to mainly relate to borehole installations and processing infrastructure.
The non-sustaining capital expenditure for FY-2022 will amount to more than the guidance of $19.0 million, with $21.5 million already incurred YTD-2022, as more capital was dedicated to the West pit stage 3 push back in H1-2022 and West pit flank pre-strip in H2-2022. In Q4-2022, non-sustaining capital expenditure is expected to mainly relate to the West pit flank pre-stripping activity.

Exploration

An exploration programme of $4.0 million is planned for FY-2022, of which $1.9 million has been spent YTD-2022 with $0.3 million spent in Q3-2022. 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 and Tiwori targets.
During Q3-2022, exploration activities focussed on re-logging historic drill core to update geological models and improve the geological interpretation of the Boungou deposit, helping to inform geological interpretations of Boungou North, Osaanpalo and other near mine targets. Limited drilling activity was completed during the quarter.
During the remainder of the year the exploration programme will focus on delineating high grade mineralised opportunities on the mining permit, including the areas around the West pit flank and the East pit as well as at Boungou North. Geological modelling of Boungou North, Tiwori and Osaanpalo will continue during the quarter and additional target generation will ramp-up, focussing on near-mine opportunities.

4.3. Houndé Gold Mine, Burkina Faso

Table 6: Houndé Key Performance Indicators

	Unit	THREE MONTHS ENDED		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating data
Tonnes ore mined	kt	1,174	596	3,842	3,620
Tonnes of waste mined	kt	8,004	11,370	28,747	34,000
Tonnes milled	kt	1,234	1,142	3,684	3,396
Average gold grade milled	g/t	1.83	2.11	2.06	2.15
Recovery rate	%	92	92	93	92
Gold produced	oz	72,302	70,209	232,375	215,895
Gold sold	oz	75,248	75,381	233,723	219,239
Realised gold price	$/oz	1,672	1,783	1,813	1,781
Financial data
Revenue	$m	125.8	134.4	423.8	390.5
Operating expenses	$m	(38.6)	(39.2)	(128.9)	(121.2)
Royalties	$m	(8.9)	(8.4)	(29.2)	(26.2)
Total cash cost1	$m	(47.5)	(47.5)	(158.1)	(147.4)
Sustaining capital1	$m	(6.4)	(21.9)	(21.1)	(35.2)
Total AISC1	$m	(53.9)	(69.4)	(179.2)	(182.6)
Non-sustaining capital1	$m	(18.4)	(0.6)	(25.6)	(10.3)
Total all-in costs1	$m	(72.3)	(70.0)	(204.8)	(192.9)
Cash cost per ounce sold1	$/oz	631	631	676	672
Mine AISC per ounce sold1	$/oz	716	921	767	833

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

Q3-2022 vs Q3-2021 Insights

Production increased from 70,209 ounces in Q3-2021 to 72,302 ounces in Q3-2022 due to the higher throughput, partially offset by lower grades milled.
Ore tonnes mined increased significantly due to the lower strip ratio areas of Vindaloo and Kari Pump being mined, in addition to Kari West being available. Ore tonnes continued to be sourced from Kari Pump, Kari West and Vindaloo Main with waste stripping at Kari Pump stage 3 accelerated during the quarter.
Tonnes milled increased due to higher proportion of softer oxide and transitional ore from the Kari West and Kari Pump pits in the feed.
Average gold grade milled decreased compared due a higher proportion of ore sourced from lower grade areas of the Kari Pump pit and lower grade stockpiles supplementing the mill feed.
AISC per ounce decreased from $921 per ounce in Q3-2021 to $716 per ounce in Q3-2022 primarily due to lower sustaining capital expenditures, partially offset by higher operating costs associated with longer average haulage distances.
Sustaining capital expenditure amounted to $6.4 million, a significant decrease compared to $21.9 million in Q3-2021 due to the waste development at Kari Pump and Vindaloo pits, whereas Q3-2022 spend mainly related to waste capitalisation at the Vindaloo Main pit as well as mining fleet re-builds.
Non-sustaining capital expenditure amounted to $18.4 million, an increase from $0.6 million in Q3-2021, due to an acceleration of the pre-stripping of stage 3 of the Kari Pump pit and capital related to the stage 6 and 7 tailings storage facility ("TSF") raise and infrastructure around the Kari area.

YTD-2022 vs YTD-2021 Insights

Production increased from 215,895 ounces YTD-2021 to 232,375 ounces YTD-2022 as a result of increased mill throughput and recoveries due to increased mining flexibility and availability of a higher proportion of soft oxide ore from the Kari West pit. The average grade in the mill feed decreased slightly, due to lower grade areas mined at the Kari Pump pit and the use of lower grade stockpiles.
AISC decreased from $833 per ounce YTD-2021 to $767 per ounce YTD-2022 due to the greater volume of ounces sold and lower sustaining capital, which was partially offset by higher operating costs.

2022 Outlook

Houndé is expected to beat its FY-2022 production guidance of 260—275koz and also beat its AISC guidance of $875—925 per ounce as YTD-2022 performance was stronger than forecast due to the benefit of high-grade oxide ore from the Kari Pump pit.
In Q4-2022, ore is expected to be mainly sourced from the Vindaloo Main and Kari West pits, while stripping activities continue at the Kari Pump pit stage 3. Slightly lower ore tonnes mined, ore tonnes processed, processed grades and recovery rates are expected in Q4-2022 due to the increased focus on stripping activity and lower quantities of high grade oxide ore available from the Kari Pump pit.
The sustaining capital expenditure for FY-2022 is expected to be below the guidance of $44.0 million, of which $21.1 million has been incurred YTD-2022, primarily due to timing of Vindaloo waste development. In Q4-2022, sustaining capital is expected to relate to spare parts and fleet re-builds as well as waste capitalisation at the Vindaloo Main pit.
The non-sustaining capital expenditure for FY-2022 will amount to more than the guidance of $18.0 million, with $25.6 million already incurred YTD-2022, primarily due to the acceleration of pre-stripping activity at the Kari Pump stage 3 pit, in support of the strong YTD-2022 production outperformance. In Q4-2022, non-sustaining capital expenditure is expected to relate to pre-stripping activities at the Kari Pump stage 3 pit, resettlement, mine infrastructure in the Kari West area and completion of a TSF wall raise.

Exploration

An exploration programme of $14.0 million is planned for FY-2022, of which $10.9 million has been spent YTD-2022 with $5.3 million spent in Q3-2022 consisting of 8,000 meters of drilling across 76 drill holes. The exploration programme has been focussed on extending the resources at Vindaloo South, and testing new targets including Sianikui and Koho.
During Q3-2022, resource definition drilling was completed at the Koho deposit, which is located less than 1 kilometre east of the Vindaloo Main pit, within the mine permit, where drilling focussed on identifying and characterising mineralised extensions to the Vindaloo Main ore body towards the east. Reconnaissance drilling was also completed at several geochemical targets within 15 kilometres of the Vindaloo Main pit, with encouraging results from Sianikui.
During the remainder of the year, exploration will focus on geological modelling of new drill results from Vindaloo South and Koho with the aim of upgrading mineral resources ahead of the year end. At Vindaloo Main, deep, high-grade mineralisation has been identified with up to three kilometers of cumulative strike across several ore bodies, further work will focus on identifying the potential for a deeper mineral resource. In addition, exploration drilling is expected to continue at the Koho and Sianikui targets to delineate these prospects and define new resources.

4.4. Ity Gold Mine, Côte d'Ivoire

Table 7: Ity CIL Key Performance Indicators

	Unit	THREE MONTHS ENDED		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating data
Tonnes ore mined	kt	1,180	1,690	5,382	5,672
Tonnes of waste mined	kt	3,745	3,886	12,521	12,654
Tonnes milled	kt	1,375	1,530	4,641	4,624
Average gold grade milled	g/t	2.04	1.50	1.82	1.74
Recovery rate	%	87	83	84	81
Gold produced	oz	80,897	61,494	230,169	211,863
Gold sold	oz	78,387	63,403	226,810	221,263
Realised gold price	$/oz	1,693	1,778	1,814	1,786
Financial data
Revenue	$m	132.7	112.7	411.5	395.2
Operating expenses	$m	(50.3)	(46.3)	(147.7)	(144.2)
Royalties	$m	(7.8)	(6.2)	(22.7)	(21.7)
Total cash cost^{1}	$m	(58.1)	(52.5)	(170.4)	(165.8)
Sustaining capital^{1}	$m	(2.5)	(5.5)	(10.9)	(17.9)
Total AISC^{1}	$m	(60.6)	(58.0)	(181.3)	(183.7)
Non-sustaining capital^{1}	$m	(15.4)	(3.9)	(26.1)	(24.4)
Total all-in costs^{1}	$m	(76.0)	(62.0)	(207.4)	(208.1)
Cash cost per ounce sold^{1}	$/oz	741	828	751	749
Mine AISC per ounce sold^{1}	$/oz	773	915	799	830

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

Q3-2022 vs Q3-2021 Insights

Production increased from 61,494 ounces in Q3-2021 to 80,897 ounces in Q3-2022, as higher gold grades milled and recovery rates were offset by a slight reduction in tonnes milled.
Ore tonnes mined decreased following the completion of the Daapleu pit stage 2 in early 2022 and no contribution from the Verse Ouest dump in Q3-2022, as a greater proportion of waste mining at the Bakatouo and Le Plaque pits took place while ore was primarily sourced from the Ity, Bakatouo, Walter and Le Plaque pits.
Tonnes milled decreased due to lower mill availability, although throughput continued to perform above nameplate capacity with continued use of the surge bin adding supplemental oxide feed and SAG mill feed control optimisation improving utilisation.
Average grade milled increased due to higher grade ore from the Le Plaque and Bakatouo pits on the feed, compared to lower grade ore from the Daapleu pit in the prior period.
Recovery rates increased due to the lower proportion of fresh ore from the Daapleu pit in the feed and benefit of the pre-leach tanks which came online in Q3-2022.
AISC decreased from $915 per ounce in Q3-2021 to $773 per ounce in Q3-2022 due to higher ounces sold and lower sustaining capital, which was partially offset by higher unit mining and processing costs due to the increase in fuel and consumable costs.
Sustaining capital expenditure amounted to $2.5 million, a decrease compared to $5.5 million in Q3-2021, and is mainly related to spare parts and dewatering boreholes.
Non-sustaining capital expenditure amounted to $15.4 million, an increase compared to the $3.9 million incurred in Q3-2021, and is related to the ramp up of the Recyanidation project, the TSF lift and compensation and pre-stripping capitalisation associated with the Ity pit cut back.
The Recyanidation project remains on track to be commissioned in mid-2023, with approximately 30% of the project completed to date. Detailed design and engineering has been completed and procurement is now 50% complete. Early works, including bulk earthworks and civil works are underway and 52% of the capital has now been committed. The circuit aims to optimise costs by reducing leaching and detox reagent consumption, improving the quality of the discharge water, and increasing production through higher recovery rates. The project is expected to result in 87koz of additional gold production and $63 million in cost savings over Ity's current reserve life for an upfront capital cost of $41 million, of which $31 million is expected to be incurred in FY-2022.

YTD-2022 vs YTD-2021 Insights

Production increased from 211,863 ounces YTD-2021 to 230,169 ounces YTD-2022 due to an increase in average grade milled and recoveries due to increased contributions from higher grade areas of the Le Plaque pit and a lower proportion of ore processed from the Daapleu pit, which has lower associated recoveries. Mill throughput remained consistent with the prior period.
AISC decreased from $830 per ounce YTD-2021 to $799 per ounce YTD-2022 due to an increase in gold ounces sold and a decrease in sustaining capital, which was partially offset by higher mining and processing unit costs.

2022 Outlook

Ity is expected to beat its FY-2022 production guidance of 255—270koz and also beat its AISC guidance of $850—900 per ounce due to the benefit of processing more high grade oxide ore from the Le Plaque pit and less fresh ore from the Dapleau pit, compared to forecast.
In Q4-2022, the mill feed is expected to be sourced primarily from the Le Plaque, Ity and Walter pits and supplemented by historic stockpiles. Recovery rates are expected to remain stable, while the average grade is expected to be slightly lower as feed from lower grade historical heaps is increasingly blended into the mill feed.
The sustaining capital expenditure for FY-2022 is expected to be below the guidance of $20.0 million, of which $10.9 million has been incurred YTD-2022, due to lower than planned capitalised waste mining at Ity and Bakatouo pits in the year. In Q4-2022, sustaining capital expenditure is expected to mainly relate to mining and processing infrastructure.
The non-sustaining capital expenditure for FY-2022 is expected to be below the guidance of $60.0 million, of which $26.1 million has been incurred YTD-2022, primarily due to lower pre-stripping capitalisation and timing of the Recyanidation project. In Q4-2022, non-sustaining capital is expected to mainly relate to the Recyanidation circuit construction, in addition to compensation for the TSF stage 2.

Exploration

An exploration programme of $10.0 million is planned for FY-2022, of which $8.0 million has been spent in YTD-2022 with $3.5 million spent in Q3-2022 consisting of 13,500 meters of drilling across 72 drill holes. The exploration programme has been focused on extending resources at several near mine deposits including Walter-Bakatouo, West Flotouo, Le Plaque and Yopleu-Legaleu, Delta Extension, delineating resources at Colline Sud and assessing the potential of new greenfield targets including Gbampleu, Bakatouo-Zia Northeast and Delta South East.
During Q3-2022, drilling at West Flotouo extended the northeast-southwest mineralised trend down dip, confirming its continuity at depth and bringing the overall mineralised footprint to over 1,000 x 300 meters, and it remain open along strike and at depth. At Yopleu-Legaleu drilling during the quarter extended the mineralised trend along strike in both directions. At Daapleu, some new mineralised lenses were discovered during a sterilisation program in the quarter, highlighting the continuity of mineralisation around the Ity mine. At Colline Sud mineralisation was extended a further 300 meters to the northeast. At Walter-Bakatouo and Delta Southeast, new mineralised zones have been identified that will be investigated further in Q4-2022 and through 2023.
During the remainder of the year, the exploration programme will focus on drilling at near mine deposits as well as follow up works at the four greenfield targets highlighted above, including follow up work on the mineralisation discovered at Gbampleau, located 22 kilometers south of the Ity mine, where reconnaissance drilling conducted during the quarter identified significant mineralisation intercepts. Following exploration success during the year at the near mine deposits, a resource update for the Ity mine is expected in Q4-2022.

4.5. Mana Gold Mine, Burkina Faso

Table 8: Mana Key Performance Indicators

	Unit	THREE MONTHS ENDED		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating data
Tonnes ore mined - open pit	kt	76	592	922	1,496
Tonnes of waste mined - open pit	kt	—	4,522	1,636	19,338
Tonnes ore mined - underground	kt	250	199	645	658
Tonnes of waste mined - underground	kt	113	47	417	212
Tonnes of ore milled	kt	691	667	1,964	1,942
Average gold grade milled	g/t	1.90	2.50	2.54	2.62
Recovery rate	%	92	91	91	91
Gold produced	oz	41,667	49,101	149,002	150,667
Gold sold	oz	41,453	48,762	149,880	159,085
Realised gold price	$/oz	1,693	1,780	1,829	1,786
Financial data
Revenue	$m	70.2	86.8	274.2	284.2
Operating expenses	$m	(38.1)	(42.3)	(125.0)	(129.9)
Royalties	$m	(4.3)	(5.7)	(16.5)	(18.8)
Non-cash operating expenses	$m	—	—	—	0.4
Total cash cost1	$m	(42.4)	(48.1)	(141.5)	(148.3)
Sustaining capital1	$m	(3.1)	(2.1)	(7.3)	(10.2)
Total AISC1	$m	(45.5)	(50.2)	(148.8)	(158.5)
Non-sustaining capital1	$m	(19.2)	(11.2)	(44.7)	(56.4)
Total all-in costs1	$m	(64.7)	(61.4)	(193.5)	(214.9)
Cash cost per ounce sold1	$/oz	1,023	986	944	932
Mine AISC per ounce sold1	$/oz	1,098	1,029	993	996

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

Q3-2022 vs Q3-2021 insights

Production decreased from 49,101 ounces in Q3-2021 to 41,667 ounces in Q3-2022 as a result of lower processed grades, which was partially offset by higher recoveries and higher tonnes milled.
Total open pit tonnes mined decreased significantly as no open pit mining was completed during the quarter, following the completion of mining at the Wona open pit during Q2-2022.
Total underground tonnes of ore mined increased due to increased stope production at Siou underground and increased development ore tonnes from Wona underground, with 733 meters of development completed across the two declines during Q3-2022.
Tonnes milled increased due to higher mill availability and improved milling performance associated with a lower proportion of ore from the Wona open pit in the blend.
Average grades processed decreased as lower grade stockpiles were used to blend with ore sourced from the Siou underground mine and the Wona underground development, following the cessation of open pit mining activities.
Recovery rates increased due to the reduced Wona open pit ore in the mill feed, which had lower associated recoveries.
AISC increased from $1,029 per ounce in Q3-2021 to$ 1,098 per ounce in Q3-2022 due to lower volumes of gold sold and higher sustaining capital.
Sustaining capital expenditure amounted to $3.1 million, an increase compared to the $2.1 million incurred in Q3-2021, related to site infrastructure and mining equipment costs.
Non-sustaining capital expenditure amounted to $19.2 million, an increase compared to $11.2 million incurred in Q3-2021, related to underground development and infrastructure for the two Wona underground declines, Maoula open pit establishment and the TSF raise.

YTD-2022 vs YTD-2021 Insights

Production decreased slightly from 150,667 ounces YTD-2021 to 149,002 ounces YTD-2022 due to a higher proportion of lower grade material from stockpiles being blended with ore from Siou underground, which was partially offset by increased mill throughput due to strong plant performance.
AISC remained stable with $996 per ounce recorded for YTD-2021 and $993 per ounce for YTD-2022 due to lower sustaining capital in the period being offset by lower volumes of gold sold.

2022 Outlook

Mana is on track to achieve production near the top end of its FY-2022 production guidance of 170—190koz with AISC within the guided $1,000—1,100 per ounce range.
In Q4-2022, ore tonnes are expected to be sourced from Siou underground with higher grades expected. Additional ore tonnes are expected to be sourced from Wona underground, as development continues to ramp up with the first stope production expected during the quarter, and from the Maoula satellite pit where mining activities are expected to commence during the quarter. Mill throughput is expected to decrease slightly due to planned maintenance. Processed grades are expected to increase due to higher grades from Siou underground and supplementary ore from Wona underground and the Maoula pit, which are expected to reduce the need to blend with lower grade stockpiles. Recovery rates are expected to remain stable.
The sustaining capital expenditure for FY-2022 is expected to be above the guidance of $7.0 million, with $7.3 million already incurred YTD-2022, due to additional infrastructure and mining equipment costs in the year. In Q4-2022, sustaining capital is expected to primarily relate to site infrastructure.
The non-sustaining capital expenditure for FY-2022 will be above the guidance of $40.0 million, with $44.7 million already incurred YTD-2022, primarily due to the acceleration of development at both Wona underground and the Maoula open pit, to support the strong production outlook which is on track to achieve near the top end of the guided range. In Q4-2022, non-sustaining capital is expected to primarily relate to the continued Wona underground development and associated infrastructure, Maoula establishment and infrastructure, and a TSF wall raise.

Exploration

An exploration programme of $6.0 million is planned for FY-2022, of which $5.6 million has been spent year to date with $0.3 million spent in Q3-2022 consisting of 21,100 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 Q3-2022, limited drilling was completed as the exploration programme was focussed on reviewing drilling results from Nyafe and Fofina, where deep refractory ore mineralisation was being targeted, and from Kokoi and Doumakele Est, where reconnaissance drilling was focussed on identifying mineralisation. In addition exploration work continued to focus on upgrading inferred resources at the Maoula Est deposit.
During the remainder of the year, the exploration programme will focus on relogging and geological modelling of historical drilling results from the Yaho, Yama, Fobiri and Fofina Sud targets. In addition several new targets have been generated through the use of the innovative predictive targeting analysis, which employs machine learning to analyse 48 layers of geological, geochemical, and geophysical data to identify and rank exploration targets. Field reconnaissance of 78 high priority targets identified, will continue for the reminder of the year.

4.6. Sabodala-Massawa Gold Mine, Senegal

Table 9: Sabodala-Massawa Key Performance Indicators

	Unit	THREE MONTHS ENDED		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating data
Tonnes ore mined	kt	1,297	1,717	4,722	4,884
Tonnes of waste mined	kt	10,464	9,798	31,892	23,260
Tonnes milled	kt	1,034	1,079	3,136	2,696
Average gold grade milled	g/t	2.84	3.32	2.78	3.11
Recovery rate	%	88	90	89	90
Gold produced	oz	86,293	105,913	255,523	240,717
Gold sold	oz	81,988	107,547	249,509	258,563
Realised gold price2	$/oz	1,658	1,748	1,785	1,750
Financial data
Revenue2	$m	135.9	188.0	445.3	452.5
Operating expenses	$m	(46.4)	(49.7)	(125.0)	(169.8)
Royalties	$m	(7.6)	(10.5)	(24.9)	(25.4)
Non-cash operating expenses3	$m	(0.5)	7.3	4.1	58.7
Total cash cost4	$m	(54.5)	(52.9)	(145.8)	(136.5)
Sustaining capital4	$m	(9.4)	(17.5)	(29.7)	(36.0)
Total AISC4	$m	(63.9)	(70.4)	(175.5)	(172.4)
Non-sustaining capital4	$m	(12.1)	(10.1)	(33.2)	(19.9)
Total all-in costs4	$m	(76.0)	(80.6)	(208.7)	(192.3)
Cash cost per ounce sold4	$/oz	665	492	584	528
Mine AISC per ounce sold4	$/oz	779	655	703	667

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.

Q3-2022 vs Q3-2021 Insights

Production decreased from 105,913 ounces in Q3-2021 to 86,293 ounces in Q3-2022, as a result of lower processed grades, recovery rates and throughput, mainly due to the guided trends and pit sequencing, while also slightly impacted by above average rainfall.
Tonnes mined remained in line with the prior quarter as mining activities commenced at Bambaraya during the quarter focussing primarily on pre-stripping while waste development continued in the Sabodala pit.
Ore tonnes mined decreased due to the higher strip ratios at the Massawa and Sabodala pits and due to the completion of the current phase of mining at the Sofia Main pit, which contributed to the higher grades in the prior period, while also slightly impacted by the above average rainfall. This was partially offset by increased ore tonnes mined at the Massawa North Zone pit and continued mining at the Massawa Central Zone and Sofia North pits.
Tonnes milled decreased slightly due to the impact of the above average rainfall, which decreased throughput rates as increasing volumes of oxide ore from the Massawa North and Massawa Central zones reduced the availability of the feed chutes and the crushing circuit.
Average processed grades decreased, as guided, due to lower grade transitional and fresh material processed which was partially offset by higher grade oxide ore due to the completion of the higher grade Sofia Main pit in early Q3-2022.
AISC increased from $655 per ounce in Q3-2021 to$ 779 per ounce in Q3-2022 due to lower ounces of gold sold, given the lower grade processed, and higher processing costs, which were partially offset by lower sustaining capital expenditures and lower mining unit costs due to savings from re-negotiated haulage contracts for Massawa and Sofia ore and improved condition monitoring and maintenance of mining equipment.
Sustaining capital expenditure amounted to $9.4 million, a decrease compared to the$ 17.5 million incurred in Q3-2021, and was related to waste capitalisation at the Sabodala pit, in addition to mining equipment upgrades, dewatering projects and plant and infrastructure upgrades.
Non-sustaining capital expenditure amounted to $12.1 million, an increase compared to the$ 10.1 million incurred in Q3-2021, and was related to the new Sabodala village construction, in addition to the Massawa mining area development and mining establishment costs at the Bambaraya satellite deposit.

YTD-2022 vs YTD-2021 Insights

Production increased from 240,717 ounces YTD-2021 to 255,523 ounces YTD-2022 as a result of the full period of consolidation following the acquisition of Sabodala in Q1-2021, partially offset by a decrease in the average grade processed as less high grade Sofia Main ore was available in YTD-2022.
AISC increased from $667 per ounce YTD-2021 to $703 per ounce YTD-2022 as a result of the increased use of lower grade stockpiles and increased unit operating costs.

2022 Outlook

Sabodala-Massawa is on track to achieve its FY-2022 production guidance of 360—375koz and its AISC guidance of $675—725 per ounce.
During Q4-2022, ore extraction at both the Massawa Central Zone and Massawa North Zone pits is expected to continue, with supplemental ore expected to be sourced from the Sofia North, Sabodala and Bambaraya pits. A continued focus on waste extraction is expected at the Massawa Central and North Zones pits. Mined and processed grades are expected to increase due to increased contributions from the high grade Massawa North Zone pit, while mill throughput rates are also expected to increase following the end of the rainy season.
The sustaining capital expenditure for FY-2022 is expected to be below the guidance of $63.0 million, of which $29.7 million has been incurred YTD-2022, due to improvements in fleet maintenance condition monitoring effectively reducing mining equipment capital and the deferral of waste stripping. In Q4-2022, sustaining capital is expected to mainly relate to waste stripping activities at Sabodala, Massawa Central Zone and Massawa North Zone and continued mining equipment upgrades.
The non-sustaining capital expenditure for FY-2022 will be above the guidance of $34.0 million, with $33.2 million already incurred for YTD-2021, due to the acceleration of mining at the Bambaraya open pit and associated infrastructure. In Q4-2022, non-sustaining capital is expected to relate to the Sabodala village construction and the associated infrastructure costs, as well as infrastructure near the Massawa mining areas.

Plant Expansion

Construction of the Sabodala-Massawa expansion project was launched in April 2022 and remains on budget and on schedule for completion in H1-2024. The project will add a 1.2Mtpa BIOX® plant, designed to process the high-grade refractory ore from the Massawa deposits. The project is expected to yield incremental production of 1.35Moz at a low AISC of $576 per ounce over its initial life, lifting Sabodala-Massawa to top tier status.
Growth capital expenditure for the expansion project is approximately $290 million, of which $115.0 million is expected to be incurred in FY-2022. Approximately $40 million of growth capital has been spent and 46% has been committed with pricing inline with expectations, mainly related to detailed engineering and design, earthworks and long lead items including the mills. Bulk earthworks are 90% complete, all the procurement for the 18MW power station expansion has been completed, and civil works have started.
During the remainder of the year, construction activities are expected to continue to ramp up with civil works and construction activities at both the power plant and the BIOX® plant in addition to associated infrastructure.

Exploration

An exploration programme of $15.0 million is planned for FY-2022, of which $12.5 million has been spent year to date with $3.4 million spent in Q3-2022 consisting of 25,000 meters of drilling across 295 drill holes. The exploration programme is focussed on identifying and defining non-refractory resources at targets within the Massawa area including Bambaraya, Makana, Tiwana, Delya South, and Kaviar, delineating a new discovery called Kiesta, in addition to developing new targets along the Main Transcurrent Shearzone and Sabodala-Sofia Zone first order structures.
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 area targets, including Kiesta.
The Bambaraya deposit is located in the northwest corner of the Massawa mining license, approximately 13 kilometers south of the Sabodala-Massawa processing plant. Following successful exploration work during H1-2022, an updated mineral resource was defined for the Bambaraya deposit with Indicated mineral resources of 2.2Mt at 1.77g/t for 126koz of gold and Inferred mineral resources of 0.16Mt at 1.56g/t for 8koz of gold, with an effective date 10 March 2022, based on a 0.5g/t gold cut off grade and a $1,500 per ounce pit shell. The updated resource is an increase of 126koz of Indicated resources compared to the previous mineral resource, with an effective date of 31 December 2021, which contained Inferred resources of 0.57Mt at 2.09g/t for 39koz. As a result of the positive updated mineral resource, mining activities at Bambaraya began during the quarter. Mineralisation has been recognised within a northeast trending splay of the first order Sabodala Shear Zone over a 2,000 meter strike length with an average width of 250 meters, hosted by a brecciated contact zone between pillowed basalts and andesite units.
During Q3-2022, follow up drilling at the Kiesta prospect discovered in Q2-2022, extended mineralisation over 1,000 meters along strike with three zones of mineralisation identified and open along strike and at depth, for which a maiden resource is expected to be estimated by year-end. At Delya South, drilling continued to extend the high grade mineralization to over 1,200 meters along strike connecting to Delya Main to the northeast and towards Samina to the southwest. Drilling at Kaviar focussed on delineating the envelop of the identified mineralisation along strike and further testing similar mineralized structures to the south-west

4.7. Wahgnion Gold Mine, Burkina Faso

Table 10: Wahgnion Key Performance Indicators

	Unit	THREE MONTHS ENDED		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating data
Tonnes ore mined	kt	841	917	2,746	2,753
Tonnes of waste mined	kt	7,408	5,237	25,113	15,467
Tonnes milled	kt	939	809	2,910	2,363
Average gold grade milled	g/t	1.13	1.40	1.00	1.35
Recovery rate	%	92	93	92	94
Gold produced	oz	32,309	34,145	87,746	99,795
Gold sold	oz	30,779	35,360	87,572	112,738
Realised gold price	$/oz	1,693	1,760	1,815	1,783
Financial data
Revenue	$m	52.1	62.2	158.9	201.0
Operating expenses	$m	(47.6)	(31.2)	(112.4)	(96.7)
Royalties	$m	(3.7)	(4.2)	(11.0)	(13.7)
Non-cash operating expenses2	$m	5.9	0.6	6.2	9.3
Total cash cost3	$m	(45.4)	(34.8)	(117.2)	(101.2)
Sustaining capital3	$m	(5.3)	(4.1)	(22.0)	(7.5)
Total AISC3	$m	(50.7)	(38.8)	(139.2)	(108.7)
Non-sustaining capital3	$m	(9.9)	(7.5)	(21.3)	(20.3)
Total all-in costs3	$m	(60.6)	(46.3)	(160.5)	(129.0)
Cash cost per ounce sold3	$/oz	1,475	983	1,338	897
Mine AISC per ounce sold3	$/oz	1,647	1,097	1,590	964

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.

Q3-2022 vs Q3-2021 Insights

Production decreased from 34,145 ounces in Q3-2021 to 32,309 ounces in Q3-2022 as a result of the lower processed grades and recoveries, which were partially offset by an increase in tonnes milled.
Total tonnes mined increased as mining activities were largely completed at the Fourkoura pit in Q3-2022 and commenced in the Samavogo satellite pit. Tonnes of ore mined decreased as a result of the higher average strip ratio in the Nogbele North pits.
Tonnes milled increased as a result of a higher proportion of softer oxide ore milled in line with the mining plan compared to Q3-2021 where material was primarily sourced from the Nogbele North pit.
Average grade milled decreased due to the scheduled mine sequencing of lower grade ore sourced from the Nogbele North and Nogbele South pits, partially offset by higher grade material available from the Fourkoura pit and the newly started Samavogo pit. Low grade stockpile ore was used to supplement the mined ore feed and maximise plant capacity.
AISC increased from $1,097 per ounce in Q3-2021 to$ 1,647 per ounce in Q3-2022, primarily due to the lower volume of ounces sold as a results of lower grade fresh ore mined and milled, mining in higher strip ratio zones and an increase in unit mining costs due to the increased haulage distance from the Samavogo pit and higher fuel and explosive costs.
Sustaining capital expenditure amounted to $5.3 million, an increase from the$ 4.1 million incurred in Q3-2021, mainly related to waste capitalisation and mining fleet re-builds.
Non-sustaining capital expenditure amounted of $9.9 million, an increase from the$ 7.5 million incurred in Q3-2021, mainly related to capitalised drilling, mining infrastructure and establishment costs at the Samavogo deposit including the completion of the haul road, and construction of the TSF cell 2 stage 4.

YTD-2022 vs YTD-2021 Insights

Production decreased from 99,795 ounces YTD-2021 to 87,746 ounces YTD-2022 despite the full period of consolidation in YTD-2022 following the acquisition of Wahgnion in Q1-2021, due to lower grades milled as mining focussed on lower grade areas of the Nogbele North and Nogbele South pits, and lower recoveries due to the higher proportion of fresh ore milled.
AISC increased from $964 per ounce YTD-2021 to $1,590 per ounce YTD-2022 as a result of the lower volumes of gold sold and higher strip ratio mining, in addition to higher unit mining costs.

2022 Outlook

Wahgnion's performance is expected to improve in Q4-2022 due to the benefit of a full quarter of production from the higher grade Samavogo pit. Due however to its year to date performance, Wahgnion's FY-2022 production is expected to be below the guided 140—150koz range and its FY-2022 AISC is expected to be above its $1,050—1,150 per ounce range.
In Q4-2022, ore is expected to be sourced from the Nogbele North, Nogbele South and Samavogo pits with a decrease in contributions from the Fourkoura pits, where the current phase of mining was completed during Q3-2022. Mill throughput is expected to increase in Q4-2022 following the end of the rainy season with grades improving due to the inclusion of greater volumes of ore from Samavogo in the mill feed.
The sustaining capital expenditure for FY-2022 will be above the guidance of $20.0 million, with $22.0 million already incurred during YTD-2022 due to increased mining volumes at higher than anticipated strip ratios resulting in increased capitalised waste. In Q4-2022, sustaining capital is expected to mainly relate to increased volumes of capitalised waste mining and heavy mining equipment maintenance.
The non-sustaining capital expenditure for FY-2022 is expected to be slightly above the guidance of $23.0 million, with $21.3 million already incurred during YTD-2022 due to the capitalised drilling programme that commenced in H2-2022 and acceleration of Samavogo mining activities. In Q4-2022, non-sustaining capital is expected to mainly relate to ongoing infrastructure at the Samavogo satellite pit, capitalised drilling and the TSF cell 2 wall raise.

Exploration

An exploration programme of $9.0 million is planned for FY-2022, of which $7.0 million has been spent YTD-2022 with $2.2 million spent in Q3-2022 consisting of 9,800 meters of drilling across 90 drill holes. The programme was focussed on advancing the Ouahiri South, Bozogo, Nongbele and Nangolo targets within close proximity to the Wahgnion mill, as well as evaluating the Kassera and Samavogo Nord satellite targets.
During Q3-2022, drilling at Ouahiri South continued to test the large soil geochemical anomaly with a systematic drill programme identifying high grade quartz-vein hosted mineralisation. At the Nongbele and Nangolo targets, located immediately adjacent to the Nogbele pits, mineralisation has been identified and drilling will continue to test the mineralised potential along strike and at depth. Infill drilling at the Kassera satellite deposit has identified mineralisation over a 500 meter strike length, with further drilling required to delineate resources. In addition, drilling at the Samavogo Nord deposit was focused on extending the existing mineralisation at Samavogo to the northwest.
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 Kassera in addition to further drilling at the Samavogo Nord target, focussed on extending mineralisation further north from the Samavogo deposit.

4.8. DISCONTINUED OPERATIONS - KARMA MINE

Table 11: Karma Key Performance Indicators¹

	Unit	THREE MONTHS ENDED		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating data
Tonnes ore mined	kt	—	1,393	709	3,889
Tonnes of waste mined	kt	—	3,579	3,038	12,441
Tonnes of ore stacked	kt	—	1,264	768	3,911
Average gold grade stacked	g/t	—	0.70	0.57	0.77
Recovery rate	%	—	64	67	66
Gold produced	oz	—	20,567	10,246	67,197
Gold sold	oz	—	20,693	10,107	68,704
Realised gold price²	$/oz	—	1,658	1,702	1,651
Financial data
Revenue³	$m	—	34.3	17.2	113.4
Operating expenses	$m	—	(22.9)	(13.5)	(69.0)
Royalties	$m	—	(3.1)	(1.7)	(10.3)
Total cash cost³	$m	—	(26.0)	(15.2)	(79.3)
Sustaining capital³	$m	—	—	—	(0.5)
Total AISC³	$m	—	(26.0)	(15.2)	(79.8)
Non-sustaining capital³	$m	—	(0.2)	(0.5)	(3.1)
Total all-in costs³	$m	—	(26.2)	(15.7)	(83.0)
Cash cost per ounce sold³	$/oz	—	1,256	1,504	1,155
Mine AISC per ounce sold³	$/oz	—	1,256	1,504	1,162

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 subject to certain buyer conditions being met; (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.

YTD-2022 vs YTD-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 YTD-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		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Revenue	[1]	567.6	657.4	1,883.4	1,967.5
Operating expenses	[2]	(253.6)	(233.9)	(722.3)	(744.0)
Depreciation and depletion	[3]	(151.2)	(147.1)	(443.0)	(408.6)
Royalties	[4]	(35.3)	(39.4)	(114.4)	(120.5)
Earnings from mine operations		127.5	237.0	603.7	694.4
Corporate costs	[5]	(12.4)	(12.0)	(33.2)	(42.2)
Acquisition and restructuring costs	[6]	(1.0)	(1.8)	(2.5)	(28.5)
Share-based compensation	[7]	(4.2)	(7.3)	(15.0)	(25.1)
Other expense	[8]	(7.4)	(1.8)	(20.0)	(12.8)
Exploration costs	[9]	(11.8)	(2.9)	(26.9)	(18.5)
Earnings from operations		90.7	211.2	506.1	567.3
Gain/(loss) on financial instruments	[10]	60.1	(19.5)	(11.9)	9.4
Finance costs, net	[11]	(18.6)	(14.6)	(50.3)	(40.4)
Earnings before taxes		132.2	177.1	443.9	536.3
Current income tax expense	[12]	(77.0)	(40.6)	(216.4)	(157.0)
Deferred income tax recovery	[12]	11.9	4.3	8.9	17.7
Net (loss)/earnings from discontinued operations	[13]	—	(4.5)	14.8	(11.7)
Net comprehensive earnings		67.1	136.3	251.2	385.3

Review of results for the three and nine months ended 30 September 2022:

Revenue for Q3-2022 decreased by $14\%$ to $\$567.6$ million compared to $\$657.4$ million for Q3-2021. Lower revenues in Q3-2022 was due to lower sales volumes compared to Q3-2021 of 33,685 ounces, an impact of $\$59.6$ million, following lower production volumes, primarily at Boungou, Sabodala-Massawa and Mana. Revenue was also impacted by a lower realised gold price that decreased from $\$1,768$ per ounce in Q3-2021 to $\$1,679$ per ounce in Q3-2022, an impact of $\$30.1$ million.

Revenue for YTD-2022 decreased by $84.1 million to$ 1,883.4 million compared to $1,967.5 million in YTD-2021. The decrease was primarily driven by the lower sales volumes amounting to 67,171 ounces, decreasing revenue by $119.3 million in YTD-2022 compared to YTD-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. This was in part offset by the higher realised gold price that increased from $1,776 per ounce in YTD-2021 to $1,810 per ounce in YTD-2022 and which accounted for an increase in revenue of approximately $35.4 million.

Operating expenses for Q3-2022 were $253.6 million compared to$ 233.9 million in Q3-2021. The increase in operating expenses is primarily a result of the higher costs associated with processing more stockpiles as well as increased mining, processing and general administration costs due to the increased costs of fuel, explosives and consumables in part offset by the foreign exchange benefits associated with the weakening Euro against the Dollar.

Operating expenses for YTD-2022 were $722.3 million which compared favourably to$ 744.0 million in YTD-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 YTD-2021 and the inventory charge associated with gold sold in excess of gold produced in YTD-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 YTD-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 remained fairly consistent year over year with $151.2 million charged in Q3-2022 compared to$ 147.1 million in Q3-2021.

Depreciation and depletion increased to $443.0 million in YTD-2022 compared to$ 408.6 million in YTD-2021 with the increase mainly attributable to increased depreciation at the Houndé, Mana and Sabodala-Massawa mines. The increase is due to an increased capital base being depreciated, while the Sabodala-Massawa depreciation is higher due to the depreciation for the full nine 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 decreased to $35.3 million for Q3-2022, compared to $39.4 million in Q3-2021, and $114.4 million in YTD-2022 compared to $120.5 million in YTD-2021 due to lower revenues. 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 for Q3-2022 remained fairly stable at $12.4 million compared to $12.0 million in Q3-2021, while the YTD-2022 expense decreased to $33.2 million in YTD-2022 compared to $42.2 million in YTD-2021. The decrease in YTD-2022 corporate costs is primarily due to the LSE listing related costs incurred in FY-2021 amounting to $11.2 million.
Acquisition and restructuring costs remained relatively consistent at $1.0 million in Q3-2022 compared to $1.8 million in Q3-2021 and consisted of management and corporate restructuring costs which were incurred in the quarter. The YTD-2022 expense was $2.5 million compared to $28.5 million in YTD-2021 with the decrease primarily due to the costs associated to the acquisition of Teranga incurred in H1-2021.
Share-based compensation was $4.2 million in Q3-2022 compared to $7.3 million for Q3-2021, and $15.0 million in YTD-2022 compared to $25.1 million in YTD-2021. The decrease is mainly due to the lower expense related to performance share units ("PSUs") granted due to the lower number of PSU's granted in the year and a weaker share price performance relative to YTD-2021.
Other expenses amounted to $7.4 million for Q3-2022 compared to $1.8 million in Q3-2021, and $20.0 million in YTD-2022 compared to $12.8 million in YTD-2021. Other expenses relate primarily to non-recurring and unusual expenditures, and in Q3-2022, other expenses consisted primarily of costs relating to the increase in the provision for a legal claim, the change in the value of contingent payments to the minority shareholder of Ity from our acquisition of a portion of their interest in prior years, and the write-off of long outstanding receivables. The YTD-2022 expense also includes costs associated with the write-off of inventory consumables at Houndé following an incident with a group of artisanal miners in May whereby certain inventory consumables were destroyed.
Exploration costs in Q3-2022 were $11.8 million compared to $2.9 million in Q3-2021, and $26.9 million in YTD-2022 compared to $18.5 million in YTD-2021. The increase in Q3-2022 exploration cost is a result of the timing of planned exploration activities in combination with a decision to increase greenfield activities specifically centred around the Bantou area in Burkina Faso, and the Assafou target on the Iguela property in Côte d'Ivoire.
The gain on financial instruments was $60.1 million in Q3-2022 compared to a loss of $19.5 million in Q3-2021. The gain in Q3-2022 is primarily due to the net impact of the realised and unrealised gains on the gold collars and forwards of $19.7 million and $55.8 million respectively, reflecting the lower gold prices in the quarter. In addition, there was an unrealised gain on the revaluation of the conversion option on the convertible senior notes (the "Convertible Notes") of $12.6 million due to the impact of the lower share price assumption per the bond valuation model. Q3-2022 also included a gain of $4.5 million relating to the sale of certain net smelter royalties held by the Group, and a gain of $5.4 million related to the revaluation of other financial assets in the quarter. The gain was partly offset by foreign exchange losses of $31.5 million, primarily on outstanding cash balances, driven by the weakening of the Euro against the Dollar and the realised and unrealised loss on foreign currency contracts of $0.4 million and $6.0 million, respectively.

In YTD-2022, the loss on financial instruments of $11.9 million compared to a gain in YTD-2021 of $9.4 million. The loss in YTD-2022 is primarily due to the net impact of foreign exchange losses of $89.5 million due to the impact of the Euro weakening against the Dollar exchange rate and the realised and unrealised loss on foreign currency contracts of $0.4 million and $6.0 million, respectively. This was in part offset by the realised and unrealised gains on the gold collars and forward contracts of $14.1 million and $39.1 million, respectively, driven by lower gold prices. Also included is an unrealised gain on the conversion option on the Convertible Notes of $26.3 million driven by changes in the assumptions used in the bond valuation model since the start of the year, and a gain on the disposal of certain net smelter royalties of $4.5 million.

Finance costs amounted to $18.6 million for Q3-2022 compared to $14.6 million in Q3-2021, and $50.3 million in YTD-2022 compared to $40.4 million in YTD-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 interest costs associated with the Senior Notes following the debt refinancing completed in Q4-2021 and the RCF commitment fees charged on the undrawn portion.
Current income tax expense was $77.0 million in Q3-2022 compared to $40.6 million in Q3-2021, and $216.4 million in YTD-2022 compared to $157.0 million in YTD-2021. Current income tax expense increased mainly due to the withholding tax expense recognised on the dividend declared by Sabodala-Massawa during the quarter of $27.9 million, while the YTD-2022 expense was also affected by an increased tax expense at Sabodala-Massawa as a result of the start-up of mining at the Massawa pits and an increase in income tax expense at Ity as a result of taxable earnings at Société des mines d'Holeu ("Floleu"), a subsidiary company included in the Ity segment, compared to a taxable 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 $11.9 million and $8.9 million in the three and nine months ended 30 September 2022, respectively, compared to deferred tax recoveries of $4.3 million and $17.7 million in the three and nine months ended 30 September 2021, respectively. The deferred tax recovery for the quarter and year to date is mainly attributable to the reversal of deferred tax liabilities recognised on dividends payable.

Net comprehensive earnings for YTD-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		NINE MONTHS ENDED
		30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating cash flows before changes in working capital	[1]	195.1	317.3	827.9	815.5
Changes in working capital	[2]	(41.4)	(8.0)	(121.6)	(18.1)
Cash generated from discontinued operations		—	2.6	4.9	12.9
Cash generated from operating activities	[3]	153.7	311.9	711.2	810.3
Cash used in investing activities	[4]	(110.8)	(136.8)	(349.2)	(379.4)
Cash used in financing activities	[5]	(255.5)	(232.9)	(331.5)	(360.0)
Effect of exchange rate changes on cash		(51.7)	(14.7)	(104.2)	(25.2)
(Decrease)/increase in cash and cash equivalents		(264.3)	(72.5)	(73.7)	45.7

Operating cash flows before changes in working capital for Q3-2022 was $195.1 million compared to $317.3 million in Q3-2021, and $827.9 million in YTD-2022 compared to $815.5 million in YTD-2021. The decrease is attributable to decreased revenue resulting from less ounces of gold sold as discussed in section 5.1, increased taxes paid primarily relating to withholding taxes paid on dividends from subsidiaries, and increased exploration costs.
Income taxes paid by continuing operations amounted to $81.5 million in Q3-2022 compared to$ 55.5 million in Q3-2021, the increase due primarily to higher withholding tax payments on dividends declared by the mine sites in the current year. Income taxes paid by continuing operations were $174.4 million in YTD-2022 compared to $183.8 million in YTD-2021, the decrease being due to the higher taxes paid at Boungou in YTD-2021 related to the timing of the cash income taxes paid, which is partially offset by the higher withholding taxes paid. Taxes paid for the three and nine months ended 30 September 2022 and 30 September 2021 for each of the Group's mine sites are summarised in the table below:

Table 14: Tax Payments

($m)	THREE MONTHS ENDED		NINE MONTHS ENDED
	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Boungou	6.5	9.8	18.0	43.6
Houndé	10.4	10.7	37.0	37.2
Ity	10.3	9.7	30.5	37.3
Mana	3.1	4.3	10.3	9.3
Sabodala-Massawa	—	—	16.8	19.4
Wahgnion	2.7	2.0	10.4	9.8
Other1	48.5	19.0	51.4	27.2
Taxes paid by continuing operations	81.5	55.5	174.4	183.8
Karma	—	—	—	1.8
Agbaou	—	—	—	19.9
Total taxes paid	81.5	55.5	174.4	205.5

1Included in the "Other" category is income and withholding taxes paid by corporate and exploration entities.

In Q3-2022 and YTD-2022 changes in working capital is an outflow of $41.4 million and an outflow of $121.6 million respectively, which is broken down as follows:
Trade and other receivables reflected an outflow of $8.1 million for Q3-2022 and an outflow of$ 22.4 million for YTD-2022. The outflow in Q3-2022 is mainly due to an increase in VAT receivable at Sabodala-Massawa and Mana, as well as due to an increase in other receivables at Houndé and Boungou associated with advanced royalties, offset by a decrease in VAT receivables at Houndé, as well as a decrease in receivables from gold sales at the Sabodala-Massawa mine.

The outflow in YTD-2022 is mainly due to an increase in VAT receivable at Sabodala-Massawa following the expiry of its VAT exemption status in May 2022 as well as increased advanced royalties at Houndé and Boungou, offset slightly by a decrease in receivables at Houndé and Boungou as a result of VAT received during YTD-2022.

Inventories reflected an inflow of $9.2 million for Q3-2022 and an outflow of $41.2 million in YTD-2022. The inflow in Q3-2022 was primarily driven by a decrease in stockpiles at the Mana, Boungou, Wahgnion and Sabodala-Massawa mines to supplement process feed.

The YTD-2022 outflow was mainly due to an increase in stockpiles at the Houndé, Ity and Wahgnion mines driven by mined volumes in excess of processed throughput, an increase in consumables offset by a decrease in gold-in circuit across the Group.

Prepaid expenses and other showed an outflow of $12.7 million for Q3-2022 and an outflow of $14.9 million for YTD-2022 which mainly related to security prepayments at the Mana and Boungou mines.
Trade and other payables reflected an outflow of $29.8 million in Q3-2022 and an outflow of $43.1 million in YTD-2022. The outflow is mainly due to the timing of social development fund and royalty payments at Ity, Houndé and Mana, as well as due to the general timing of supplier payments.
Operating cash flows after changes in working capital in Q3-2022 and YTD-2022 were $153.7 million and $711.2 million respectively compared to $311.9 million and $810.3 million in Q3-2021 and YTD-2021 respectively. Q3-2022 decreased by $158.2 million compared to Q3-2021 mainly due to decreased revenues, increased taxes paid, increased exploration costs and working capital outflows predominantly driven by timing of payments. YTD-2022 decreased by $99.1 million compared to $810.3 million in YTD-2021 due to decreased revenues and working capital outflows driven by timing of payments, increased stockpile levels and the increase in the VAT receivable in Senegal.
Cash flows used by investing activities were $110.8 million and $349.2 million in Q3-2022 and YTD-2022 respectively compared to outflows of $136.8 million and $379.4 million in Q3-2021 and YTD-2021 respectively. The Q3-2022 outflows were lower primarily due to lower capital expenditures in the period related to sustaining capital at Houndé, Ity and Sabodala-Massawa and lower non-sustaining exploration, partly offset by increased non-sustaining capital. In Q3-2022, the Group also received proceeds for the sale of certain NSR on properties which were sold to Auramet Trading ("Auramet"). The lower YTD-2022 outflow was driven primarily by the timing of growth capital payments.
Cash flows used in financing activities were $255.5 million and $331.5 million in Q3-2022 and YTD-2022 respectively compared to $232.9 million and $360.0 million in Q3-2021 and YTD-2021 respectively. The outflows in Q3-2022 was driven primarily by the acquisition of the Company's own shares of $36.7 million (Q3-2021 - $34.6 million), dividends paid to shareholders of $97.3 million (Q3-2021 - $69.8 million), dividends paid to minority shareholders of $57.2 million (Q3-2021 - $30.0 million), and the repayments of long term debt of $50.0 million (Q3-2021 - $80.0 million). The outflows in YTD-2022 primarily relate to payments for the acquisition of the Company's own shares of $74.5 million (YTD-2021 - $94.1 million), the dividend payments of $166.6 million (YTD-2021 - $129.8 million) and dividends paid to minority shareholders of $57.2 million (YTD-2021 - $30.0 million). The YTD-2021 outflows also included the impact of the refinancing of debt following the Teranga acquisition including the settlement of the offtake liability, offset by the equity proceeds associated with the La Mancha private placement.

5.3. SUMMARISED STATEMENT OF FINANCIAL POSITION

Table 15: Summarised Statement of Financial Position

($m)	Note	As at 30 September 2022	As at 31 December 2021
ASSETS
Cash and cash equivalents		832.5	906.2
Other current assets	[1]	525.0	459.8
Total current assets		1,357.5	1,366.0
Mining interests		4,888.8	4,980.2
Deferred income taxes		—	10.0
Other long term assets	[2]	439.8	414.7
TOTAL ASSETS		6,686.1	6,770.9
LIABILITIES
Other current liabilities	[3]	425.9	397.8
Current portion long-term debt	[4]	335.4	—
Income taxes payable	[5]	191.1	169.3
Total current liabilities		952.4	567.1
Long-term debt	[6]	494.5	841.9
Environmental rehabilitation provision	[7]	147.7	162.9
Other long-term liabilities	[8]	53.3	141.0
Deferred income taxes		663.7	672.3
TOTAL LIABILITIES		2,311.6	2,385.2
TOTAL EQUITY		4,374.5	4,385.7
TOTAL EQUITY AND LIABILITIES		6,686.1	6,770.9

Other current assets as at 30 September 2022 consists of $121.5 million of trade and other receivables,$ 298.4 million of inventories, $56.4 million of other financial assets and $48.7 million of prepaid expenses and other.
Trade and other receivables increased by $16.7 million compared to 31 December 2021 mainly due to an increase in VAT receivable at Sabodala Massawa, an increase in advanced royalty payments and an increase in amounts receivable from Néré Mining SA for the sale of the Karma mine. VAT received during the period ended 30 September 2022 was$ 81.1 million consisting of amounts received related to the Group's mines in Burkina Faso.
Inventories decreased by $12.9 million primarily due to decreased gold-in circuit inventory and finished goods on hand, offset partly by increased supply holdings due to logistical challenges and increased unit prices driven by inflationary pressures.
Prepaid expenses and other increased by $13.6 million primarily due to an increase in security prepayments at the Mana and Boungou mines.
The increase in other financial assets to $56.4 million has been primarily driven by the revaluation of forward contracts and the gold collars of$ 23.2 million and $28.2 million, respectively, driven by lower gold prices, as well as the contingent consideration of $5.0 million for the sale of the Karma mine.
Other long-term assets comprise primarily of $134.4 million of goodwill related to the Semafo and Teranga acquisitions,$ 218.7 million of long-term stockpiles not expected to be processed in the next twelve months at the Houndé, Ity and Sabodala-Massawa mines, a NSR of $6.5 million received as consideration upon the sale of the Karma mine, $40.0 million related to Allied Gold shares received as consideration upon the sale of Agbaou, $6.2 million related to the gold collar derivative, $1.9 million related to forward contracts and $31.8 million of restricted cash relating to reclamation bonds. Other long-term assets increased by $25.1 million at 30 September 2022 compared to 31 December 2021 due primarily 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 $322.7 million of trade and other payables,$ 18.1 million of lease liabilities and $85.1 million of other financial liabilities consisting mainly of PSU liabilities, repurchased shares, foreign currency contracts and contingent consideration payable. Trade and other payables decreased by $28.3 million mainly due to the timing of payments related to royalties, payroll, and social payments. Other financial liabilities increased due to the classification of

contingent consideration of (48.5 million from non-current financial liabilities to current financial liabilities which is due in March 2023.

Current portion of long-term debt is made up of the Convertible Notes and the associated conversion option that are maturing in February 2023 which management expects to settle in cash.
Income taxes payable increased by $21.8 million compared to the prior year and is due primarily to increased income tax expenses at Ity and Sabodala-Massawa. The increase at Sabodala-Massawa in the current year is due to Massawa being subject to tax in 2022, whereas it benefitted from a tax holiday in 2021. At Ity, the increase in taxes payable is due to taxable profit at Floelu where it had no taxable profit in the comparative periods.
Long-term debt decreased by $347.4 million compared to the prior year due to the reclassification of the Convertible Notes due in Q1-2023 and associated embedded derivative related to the conversion feature to current liabilities.
The environmental rehabilitation provision decreased by $15.2 million to$ 147.7 million at the end of Q3-2022 mainly due to the sale of the Karma mine.
Other long-term liabilities decreased by $87.7 million to$ 53.3 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 September 2022 and 31 December 2021.

Table 16: Net Cash Position

($m)	30 September 2022	31 December 2021
Cash and cash equivalents	832.5	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	—	—
Net cash	2.5	76.2
Net cash / adjusted EBITDA LTM ratio2	—	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

During the period ended 30 September 2022, the Board of Directors of the Company declared a dividend of $0.40 per share totalling approximately$ 100.0 million. The dividend was paid on 30 September 2022 to shareholders on record at the close of business on 2 September 2022 and resulted in dividends paid of $97.3 million.

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

Table 17: Outstanding Shares

	30 September 2022	31 December 2021
Shares issued and outstanding
Ordinary voting shares	246,979,882	248,038,422
Stock options	916,133	1,573,110

As at 8 November 2022, the Company had 246,713,648 shares issued and outstanding, and 846,713 outstanding stock options.

As part of the Company's share buyback programme, subsequent to 30 September 2022 and up to 8 November 2022, the Company has repurchased a total of 361.567 shares at an average price of $17.27 for total cash outflows of$ 6.2 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 December 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 September 2022, the Group's net cash position was $2.5 million, calculated as the difference between the current and non-current portion of long-term debt with a principal outstanding of $830.0 million and cash of $832.5 million. At 30 September 2022, the Group had undrawn credit facilities of $500.0 million having repaid the $50.0 million drawn on the RCF in the quarter. The Group had current assets of $1,357.5 million and current liabilities of $952.4 million representing a total working capital balance (current assets less current liabilities) of $405.1 million as at 30 September 2022 which includes the convertible senior notes due in February 2023 expected to be settled in cash. Cash flows from operating activities for the three and nine months ended 30 September 2022 were inflows of $153.7 million and $711.2 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 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 September 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 nine months ended 30 September 2022, an amount of $1.8 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 September 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 September 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 September 2022, there were 0.7 million EGC tracker shares outstanding with a fair value of $12.6 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 September 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 nine months ended 30 September 2022 and 30 September 2021.

Table 18: EBITDA and Adjusted EBITDA

	THREE MONTHS ENDED		NINE MONTHS ENDED
($m)	30 September 2021	30 September 2021	30 September 2022	30 September 2021
Earnings before taxes	132.2	177.1	443.9	536.3
Add back: Depreciation and depletion	151.2	147.1	443.0	408.6
Add back: Finance costs, net	18.6	14.6	50.3	40.4
EBITDA from continuing operations	302.0	338.8	937.2	985.3
Add back: Acquisition and restructuring costs	1.0	1.8	2.5	28.5
Add back: (Gain)/loss on financial instruments	(60.1)	19.5	11.9	(9.4)
Add back: Other expense	7.4	1.8	20.0	12.8
Add back: Non-cash and other adjustments¹	5.4	7.9	10.3	72.7
Adjusted EBITDA from continuing operations	255.7	369.8	981.9	1,089.9

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, and net realisable value adjustments. 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 nine months ended 30 September 2022 and 30 September 2021.

Table 19: Cash Costs

	THREE MONTHS ENDED		NINE MONTHS ENDED
($m except ounces sold)	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating expenses from mine operations	(253.6)	(233.9)	(722.3)	(744.0)
Royalties	(35.3)	(39.4)	(114.4)	(120.5)
Non-cash and other adjustments	5.4	7.9	10.3	72.7
Cash costs from continuing operations	(283.5)	(265.4)	(826.4)	(791.8)
Gold ounces sold from continuing operations	338,054	371,739	1,040,836	1,108,007
Total cash cost per ounce of gold sold from continuing operations	839	714	794	715
Cash costs from discontinued operations	—	(26.0)	(15.2)	(95.2)
Total cash costs from all operations	(283.5)	(291.4)	(841.6)	(887.0)
Gold ounces sold from all operations	338,054	392,432	1,050,943	1,190,756
Total cash cost per ounce of gold sold from all operations	839	743	801	745

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		NINE MONTHS ENDED
($m except ounces sold)	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Total cash costs for ounces sold from continuing operations	(283.5)	(265.4)	(826.4)	(791.8)
Corporate costs1	(12.4)	(9.0)	(33.2)	(31.0)
Sustaining capital	(28.8)	(54.5)	(97.6)	(123.1)
All-in sustaining costs from continuing operations	(324.7)	(328.9)	(957.2)	(945.9)
Gold ounces sold	338,054	371,739	1,040,836	1,108,007
All-in sustaining costs per ounce sold from continuing operations	960	885	920	854
Including discontinued operations
All in sustaining costs from discontinued operations	—	(26.0)	(15.2)	(95.7)
All-in sustaining costs from all operations	(324.7)	(354.9)	(972.4)	(1,041.6)
Gold ounces sold	338,054	392,432	1,050,943	1,190,756
All-in sustaining cost per ounce sold from all operations	960	904	925	875

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 $3.0 million for the three months and $11.2 million for the nine months ended 30 September 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. 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. The distinction between sustaining and non-sustaining capital is based on the definition set out by the World Gold Council. 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		NINE MONTHS ENDED
	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Expenditures on mining interests	152.4	132.5	381.9	390.5
Additions to leased assets	(5.5)	—	(9.7)	—
Non-sustaining capital expenditures¹	(79.5)	(41.4)	(175.1)	(156.6)
Non-sustaining exploration	(12.3)	(25.7)	(40.5)	(58.7)
Growth projects	(29.7)	(10.9)	(71.9)	(51.4)
Payments for sustaining leases	3.4	—	12.9	—
Sustaining Capital¹	28.8	54.5	97.6	123.8

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

Table 22: Consolidated Sustaining Capital

($m)	THREE MONTHS ENDED		NINE MONTHS ENDED
	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Boungou	1.4	3.4	5.1	16.5
Houndé	6.4	21.9	21.1	35.2
Ity	2.5	5.5	10.9	17.9
Mana	3.1	2.1	7.3	10.2
Sabodala-Massawa	9.4	17.5	29.7	36.0
Wahgnion	5.3	4.1	22.0	7.5
Corporate	0.7	—	1.5	—
Sustaining capital from continuing operations	28.8	54.5	97.6	123.1
Karma	—	—	—	0.5
Agbaou	—	—	—	0.2
Sustaining capital from all operations	28.8	54.5	97.6	123.8

Table 23: Consolidated Non-Sustaining Capital

($m)	THREE MONTHS ENDED		NINE MONTHS ENDED
	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Boungou	4.0	5.4	21.5	13.9
Houndé	18.4	0.6	25.6	10.3
Ity	15.4	3.9	26.1	24.4
Mana	19.2	11.2	44.7	56.4
Sabodala-Massawa	12.1	10.1	33.2	19.9
Wahgnion	9.9	7.5	21.3	20.3
Non-mining	0.5	2.3	2.2	8.3
Non-sustaining capital from continuing operations	79.5	41.2	174.6	153.5
Karma	—	0.2	0.5	3.1
Non-sustaining capital from all operations	79.5	41.4	175.1	156.6

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 earnings from mine operations, earnings, 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

($m except per share amounts)	THREE MONTHS ENDED		NINE MONTHS ENDED
	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Total net and comprehensive earnings	67.1	136.3	251.2	385.3
Net loss/(earnings) from discontinued operations	—	4.5	(14.8)	11.7
Acquisition and restructuring costs	1.0	1.8	2.5	28.5
(Gain)/loss on financial instruments	(60.1)	19.5	11.9	(9.4)
Other expenses	7.4	1.8	20.0	12.8
Non-cash, tax and other adjustments1	36.9	27.7	73.2	108.3
Adjusted net earnings2	52.3	191.6	344.0	537.2
Attributable to non-controlling interests3	15.8	23.6	62.8	87.9
Attributable to shareholders of the Company	36.5	168.0	281.2	449.3
Weighted average number of shares issued and outstanding	247.8	250.0	248.2	236.9
Adjusted net earnings from continuing operations per basic share	0.15	0.67	1.13	1.90

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 Q3-2021 and YTD-2021 has been restated to include 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 $12\%$ 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		NINE MONTHS ENDED
($m except per share amounts)	30 September 2022	30 September 2021	30 September 2022	30 September 2021
Operating cash flow
Cash generated from operating activities by continuing operations	153.7	309.3	706.3	797.4
Changes in working capital from continuing operations	41.4	8.0	121.6	18.1
Operating cash flows before working capital from continuing operations	195.1	317.3	827.9	815.5
Divided by weighted average number of outstanding shares, in millions	247.8	250.0	248.2	236.9
Operating cash flow per share from continuing operations	$0.62	$1.24	$2.85	$3.37
Operating cash flow per share before working capital from continuing operations	$0.79	$1.27	$3.34	$3.44

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 September 2022	31 December 2021	30 September 2021
Net cash/(net debt)	2.5	76.2	(69.6)
Trailing twelve month adjusted EBITDA1	1,365.3	1,536.6	1,347.3
Net cash/(net debt) / adjusted EBITDA LTM ratio	0.00	0.05	(0.05)

1 Trailing twelve month adjusted EBITDA is calculated using adjusted EBITDA as reported in prior periods for each quarter prior to Q3-2022 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 September 2022	30 September 2021
Adjusted EBITDA1	1,355.0	1,438.7
Depreciation and amortisation	(649.4)	(529.0)
Adjusted EBIT (A)	705.6	909.7
Opening capital employed (B)	6,216.2	3,423.0
Total assets	6,686.1	6,793.7
Current liabilities	(952.4)	(577.5)
Closing capital employed (C)	5,733.7	6,216.2
Average capital employed (D)=(B+C)/2	5,975.0	4,819.6
ROCE (A)/(D)	12%	19%

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 September 2022 reflects the impact of the increase in the average capital employed due to the acquisition of Teranga in Q1-2021, the higher depletion expense in the LTM 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 September 2022	30 June 2022	31 March 2022	31 December 2021
Gold ounces sold	338,054	343,688	359,094	370,284
Revenue	567.6	629.6	686.2	663.4
Operating cash flows generated from continuing operations	153.7	253.2	299.4	344.7
Earnings from mine operations	127.5	200.5	275.7	203.2
Net comprehensive earnings/(loss)	67.1	204.5	(20.4)	(109.4)
Net comprehensive earnings/(loss) from discontinued operations	—	—	14.8	(17.0)
Net earnings/(loss) from continuing operations attributable to shareholders	57.6	189.4	(56.7)	(86.8)
Net earnings/(loss) from discontinued operations attributable to shareholders	—	—	14.5	(16.0)
Basic earnings/(loss) per share from continuing operations	0.23	0.76	(0.23)	(0.35)
Diluted earnings/(loss) per share from continuing operations	0.23	0.76	(0.23)	(0.35)
Basic earnings/(loss) per share from all operations	0.23	0.76	(0.17)	(0.41)
Diluted earnings/(loss) per share from all operations	0.23	0.76	(0.17)	(0.41)

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 September 2021	30 June 2021	31 March 2021	31 December 2020
Gold ounces sold	371,739	395,146	341,122	273,763
Revenue	657.4	709.1	601.0	510.7
Operating cash flows generated from continuing operations	309.3	284.1	203.8	360.4
Earnings from mine operations	237.0	266.5	190.9	245.0
Net comprehensive earnings	136.4	150.9	98.0	29.3
Net comprehensive (loss)/earnings from discontinued operations	(4.5)	2.9	(10.1)	(123.5)
Net earnings from continuing operations attributable to shareholders	121.8	126.3	84.6	137.5
Net (loss)/earnings from discontinued operations attributable to shareholders	(4.3)	2.4	(11.5)	(115.3)
Basic earnings per share from continuing operations	0.49	0.50	0.41	0.84
Diluted earnings per share from continuing operations	0.49	0.50	0.41	0.84
Basic earnings per share from all operations	0.47	0.51	0.35	0.14
Diluted earnings per share from all operations	0.47	0.51	0.35	0.14

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

($m except ounces sold and per share amounts)	FOR THE YEAR ENDED
	31 December 2021	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 nine months ended 30 September 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 September 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 September 2022 except for with respect to currency risk as the Group has entered into foreign exchange contracts for certain Euro and Australian Dollar denominated expenditures related to its significant capital projects at Lafigué and Sabodala-Massawa.

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_2022-11-10_9005a984-8bb6-47a6-876b-5fd7cbbbf58c.pdf

MANAGEMENT REPORT

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