Market Newsdesk

SPRINGDALE, Ark., Nov. 12, 2020 (GLOBE NEWSWIRE) — Tyson Foods, Inc. (NYSE: TSN) today announced a Forest Protection Standard focused on reducing deforestation risk in its global supply chain of four commodities – cattle and beef; soy; palm oil; and pulp, paper and packaging.

Earlier this year, Tyson Foods partnered with Proforest to conduct a deforestation risk assessment. The assessment concluded that nearly 94 percent of the company’s land footprint is at no to low risk of being associated with deforestation. To proactively address the remaining six percent that was found to be at risk, the Forest Protection Standard was developed to ensure the company is continuing to target the reduction of deforestation risk throughout the global supply chain.

“As one of the world’s largest food companies and a recognized leader in protein, we have an important role in protecting forests and other natural ecosystems,” said Dean Banks, Tyson Foods president and CEO. “We are asserting our ambition to make protein more sustainable and look forward to working with our supply chain partners, customers and other stakeholders to do our part on this important issue.”

To support the Forest Protection Standard, specific Commodity Action Plans are being developed to outline the work required in each commodity area to support deforestation free sourcing. Progress towards meeting the goals of the Forest Protection Standard will be outlined in the company’s annual Sustainability Report.

Tyson Foods is a member of the United Nations Global Compact and supports the United Nations Sustainable Development Goals (UNSDG) and its 2030 agenda for sustainable development. Tyson Foods Forest Protection Standard aligns with three SDGs including Goal 12 – Responsible Consumption and Production; Goal 13 – Climate Action; and Goal 15 – Life on Land. For more information on sustainability at Tyson Foods, visit www.tysonsustainability.com.

About Tyson Foods

Tyson Foods, Inc. (NYSE: TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company has 141,000 team members. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.

Contact:
Kelsie Gibbs, 405-919-9597, [email protected] 

Category: IR, Newsroom

BROOKFIELD, NEWS, Nov. 12, 2020 (GLOBE NEWSWIRE) — Brookfield Asset Management Inc. (NYSE: BAM, TSX: BAM.A) today announced financial results for the quarter ended September 30, 2020. 

Bruce Flatt, CEO of Brookfield, stated, “Our third quarter results reflect the strength of both our operating businesses and our asset management franchise. We generated record operating FFO in the quarter, and over the last twelve months earned a record $2.8 billion of cash available for distribution and/or reinvestment, underlining the stability and continued growth of our cash flows. With over $75 billion of capital for deployment, our business is stronger than it has ever been.”

Operating Results

Unaudited For the periods ended September 30 (US$ millions, except per share amounts)	Three Months Ended							Last Twelve Months Ended
	2020			2019				2020					2019
Net income attributable to shareholders1	$	172		$	947			$	69				$	3,845
Per Brookfield share1,2	0.10			0.61				(0.02		)			2.48
Funds from operations1,3	$	1,039		$	826			$	4,288				$	4,341
Per Brookfield share1,2,3	0.65			0.54				2.70					2.86
Net income4	$	542		$	1,756			$	530				$	6,744

1.     Excludes amounts attributable to non-controlling interests.
2.     2019 per share amounts have been updated to reflect BAM’s three-for-two stock split effective April 1, 2020.
3.     See Basis of Presentation on page 9 and a reconciliation of net (loss) income to FFO on page 6.
4.     Consolidated basis – includes amounts attributable to non-controlling interests.

Funds from operations (FFO) were $1.0 billion for the quarter and $4.3 billion over the last twelve months. Fee-related earnings were $372 million for the quarter and $1.4 billion over the last twelve months, representing increases of 22% and 36% from the prior periods, respectively. This reflects record fundraising and deployment across our long-term and perpetual private funds, growth in our listed affiliates, and a full year’s contribution of fee-related earnings from our credit business. FFO from invested capital increased 34% from the prior year quarter and was driven by positive results in several of our private equity businesses and financial assets which reversed losses from the second quarter. We also recorded $162 million of disposition gains in FFO. All of this led to overall net income in the quarter of $542 million. Net income attributable to shareholders was $172 million, or $0.10 per share.

Regular Dividend Declaration

The Board declared a quarterly dividend of US$0.12 per share, payable on December 31, 2020 to shareholders of record as at the close of business on November 30, 2020. The Board also declared the regular monthly and quarterly dividends on its preferred shares.

Operating Highlights

We raised $18 billion of private fund capital during the quarter, and approximately $40 billion over the last twelve months. Growth in fee-bearing capital over the last twelve months led to a 36% increase in fee-related earnings over the same period.

Fundraising included $12 billion of previously announced commitments to our latest distressed debt fund and $6 billion of commitments raised across our perpetual core strategies, private credit funds and other co-investments and separately managed accounts. We launched our European core-plus real estate fund during the quarter raising over €1 billion and exceeding its initial target, and our second vintage private infrastructure debt fund has raised over $1.8 billion to date, compared with its predecessor fund of approximately $875 million. Most of our credit funds and perpetual fund strategies earn fees on invested capital, as such the capital raised in the period will become fee-earning as it is invested.

Fee-bearing capital increased $12 billion during the quarter to $290 billion as at September 30, 2020. Growth in fee-bearing capital includes $10 billion of growth across our listed affiliates, as well as $4 billion of capital invested across our credit and perpetual private funds. This growth was partially offset by distributions and the end of the investment period of our third flagship infrastructure fund. We currently also have approximately $30 billion of committed capital across our strategies that will earn $300 million of fees annually once deployed.

We generated $703 million of carried interest during the quarter, and our accumulated unrealized carried interest now stands at $4.0 billion.

We recorded $482 million of realized carried interest into income over the last twelve months, including $42 million during the quarter related to distributions received from the sale of shares in one of our private equity businesses. Real asset transactions slowed meaningfully over the last six months as a result of the economic shutdown, but we have seen the pipeline of deal activity for both private and public market transactions begin to pick up again, and we expect to realize an increasing amount of carried interest as we complete monetizations within our mature vintage flagship funds.

Annualized fee revenues and target carried interest now stand at a run-rate of $6.1 billion.

Growth in fee-bearing capital generated a commensurate increase in annualized fee revenues and target carried interest. Annualized fee revenues and annualized fee-related earnings are now $3.0 billion and $1.4 billion, respectively, and gross target carried interest stands at $3.1 billion, or $1.7 billion net of costs, at our share.

We generated a record $2.8 billion of cash available for distribution and/or reinvestment (CAFDR) over the last twelve months. As at September 30, 2020, we had $76 billion of capital available to deploy into new investments.

Excluding realized carried interest, CAFDR increased 27% over the last twelve month period. The increase is due to the growth in our asset management franchise, and continues to be very resilient due to the contracted and predictable nature of both our fee-related earnings and distributions from listed affiliates.

Deployable capital of $76 billion includes $16 billion of cash, financial assets and undrawn lines of credit in BAM and our affiliates and $60 billion of uncalled fund commitments available for new transactions. Liquidity remains very strong for high credit-worthy counterparties such as ourselves, and during the quarter we completed $1 billion of corporate financings across BAM and the listed affiliates. Subsequent to quarter-end, we also issued at a corporate level, $400 million of green subordinated notes with the proceeds to be deployed into eligible green projects.

We invested $14 billion during the current quarter, and $48 billion over the last twelve months.

During the quarter we invested $9 billion of private fund capital, along with $3 billion of co-investment capital, bringing our latest vintage of flagships to approximately 60% committed. We expect to be in the market with our next round of flagship funds shortly, starting with our next flagship real estate fund in early 2021. We funded BPY’s purchase of close to $1 billion of its units/shares through substantial and normal-course issuer bids, and repurchased approximately $100 million of BAM shares since quarter end. We will remain active with repurchases as long as the shares continue to trade at meaningful discounts to our view of their underlying value. We also continued to increase the public floats of Brookfield Infrastructure Corporation (BIPC) and Brookfield Renewable Corporation (BEPC) by selling approximately $500 million of shares in those two securities into the markets.

BAM Reinsurance

We intend to distribute, in the first half of 2021, a special dividend in the form of a newly created “paired” entity, Brookfield Asset Management Reinsurance Partners (“BAM Reinsurance”). We expect this special dividend to be approximately $500 million, or approximately 33 cents per share of BAM. BAM Reinsurance is the entity through which Brookfield will conduct its reinsurance and other related activities for the benefit of all shareholders of both entities.

BAM Reinsurance will be a paired share to Brookfield Asset Management Inc. and will aim to replicate the success of the structure used by us to create Brookfield Renewable Corporation and Brookfield Infrastructure Corporation. BAM Reinsurance will allow us to grow our reinsurance business in the most efficient fashion, and also provide flexibility to Brookfield’s shareholders in how they can own their interests in Brookfield. The attributes of these shares should be more attractive to some groups of shareholders.

As with our other paired entities, the Class A shares of BAM Reinsurance will be structured with the intention of being economically equivalent to the Class A shares of BAM. Each share of BAM Reinsurance will have the same dividend as a BAM share and shares of BAM Reinsurance will be exchangeable into shares of Brookfield at the shareholder’s option. Our infrastructure, renewable, and property partnerships successfully implemented this type of structure, pairing entities with shares having economic equivalency with their associated publicly traded units. In a similar manner, BAM Reinsurance will offer Brookfield shareholders an alternative security through which to hold their interests in the business and are expected to trade substantially at the same price as shares of Brookfield.

In order to launch BAM Reinsurance, Brookfield intends to pay a special dividend in the form of a fraction of a share of BAM Reinsurance for a given number of Class A shares of Brookfield. Details will be provided at the time of the declaration of the dividend, but from a corporate perspective, the transaction will be analogous to a stock split as it will not result in any underlying change to aggregate cash flows or net asset value, except for the adjustment for the number of shares outstanding and owned by all shareholders.

“BAM Reinsurance is intended to provide our shareholders with a choice of holding either shares of Brookfield or the new shares of BAM Reinsurance, depending on what is most attractive to them based on their own circumstances,” stated Nick Goodman, Chief Financial Officer of Brookfield. “The very positive market reception, including in the case of the most recent listing of Brookfield Renewable Corporation, has encouraged us to offer a similar structure for our own shareholders, enhancing shareholders’ ability to meet their own financial planning objectives, while also facilitating the growth of our overall organization.”

The special dividend will require the filing of a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission and a preliminary prospectus with the Canadian securities regulatory authorities. BAM Reinsurance also intends to apply to list its class A shares in the United States on the NYSE and in Canada on the TSX. Subject to the receipt of all regulatory approvals, Brookfield anticipates completing the special distribution in the first half of 2021.

CONSOLIDATED BALANCE SHEETS

Unaudited (US$ millions)		September 30								December 31
						2020								2019
Assets
Cash and cash equivalents					$	8,723							$	6,778
Other financial assets						15,997								12,468
Accounts receivable and other						22,015								21,971
Inventory						10,374								10,272
Equity accounted investments						40,911								40,698
Investment properties						96,495								96,686
Property, plant and equipment						89,895								89,264
Intangible assets						25,245								27,710
Goodwill						13,872								14,550
Deferred income tax assets						3,556								3,572
Total Assets					$	327,083							$	323,969
Liabilities and Equity
Corporate borrowings					$	8,587							$	7,083
Accounts payable and other						46,656								44,767
Non-recourse borrowings in entities that we manage						140,230								136,292
Subsidiary equity obligations						3,989								4,132
Deferred income tax liabilities						14,314								14,849
Equity
Preferred equity	$	4,145							$	4,145
Non-controlling interests in net assets		80,156								81,833
Common equity		29,006				113,307				30,868				116,846
Total Liabilities and Equity					$	327,083							$	323,969

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited For the periods ended September 30 (US$ millions, except per share amounts)	Three Months Ended								Nine Months Ended
	2020				2019				2020				2019
Revenues	$	16,249			$	17,875			$	45,664			$	50,007
Direct costs	(12,372		)		(13,910		)		(34,527		)		(38,880		)
Other income and gains	34				51				304				972
Equity accounted income (loss)	139				414				(704		)		1,761
Expenses
Interest	(1,757		)		(1,926		)		(5,324		)		(5,375		)
Corporate costs	(25		)		(23		)		(74		)		(72		)
Fair value changes	(31		)		394				(1,598		)		(835		)
Depreciation and amortization	(1,470		)		(1,299		)		(4,255		)		(3,567		)
Income tax	(225		)		180				(594		)		(295		)
Net income (loss)	$	542			$	1,756			$	(1,108	)		$	3,716
Net income (loss) attributable to:
Brookfield shareholders	$	172			$	947			$	(777	)		$	1,961
Non-controlling interests	370				809				(331		)		1,755
	$	542			$	1,756			$	(1,108	)		$	3,716
Net income (loss) per share1
Diluted	$	0.10			$	0.61			$	(0.53	)		$	1.24
Basic	0.10				0.62				(0.53		)		1.26

1. Adjusted to reflect the three-for-two stock split effective April 1, 2020.

SUMMARIZED FINANCIAL RESULTS

RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS

Unaudited For the periods ended September 30 (US$ millions)	Three Months Ended								Last Twelve Months Ended
	2020				2019				2020				2019
Net income	$	542			$	1,756			$	530			$	6,744
Financial statement components not included in FFO
Equity accounted fair value changes and other non-FFO items	602				180				2,884				274
Fair value changes	31				(394		)		1,594				578
Depreciation and amortization	1,470				1,299				5,564				4,494
Deferred income taxes	21				(464		)		26				(1,671		)
Realized disposition gains in fair value changes or prior periods	161				190				915				972
Non-controlling interests	(1,788		)		(1,741		)		(7,225		)		(7,050		)
Funds from operations1,2	$	1,039			$	826			$	4,288			$	4,341

SEGMENT FUNDS FROM OPERATIONS

Unaudited For the periods ended September 30 (US$ millions, except per share amounts)	Three Months Ended								Last Twelve Months Ended
	2020				2019				2020				2019
Asset management	$	399			$	345			$	1,663			$	1,461
Real estate	90				271				746				1,514
Renewable power	64				44				762				381
Infrastructure	244				103				570				454
Private equity	249				154				740				867
Residential	37				42				104				90
Corporate	(44		)		(133		)		(297		)		(426		)
Funds from operations1,2	$	1,039			$	826			$	4,288			$	4,341
Per share3,4	$	0.65			$	0.54			$	2.70			$	2.86

1. Non-IFRS measure – see Basis of Presentation on page 9.
2. Excludes amounts attributable to non-controlling interests.
3. Adjusted to reflect the three-for-two stock split effective April 1, 2020.
4. Per share amounts are inclusive of dilutive effect of mandatorily redeemable preferred shares held in a consolidated subsidiary.

EARNINGS PER SHARE

Unaudited For the periods ended September 30 (US$ millions, except per share amounts)	Three Months Ended								Last Twelve Months Ended
	2020				2019				2020				2019
Net income	$	542			$	1,756			$	530			$	6,744
Non-controlling interests	(370		)		(809		)		(461		)		(2,899		)
Net income attributable to shareholders	172				947				69				3,845
Preferred share dividends	(34		)		(38		)		(144		)		(150		)
Dilutive effect of conversion of subsidiary preferred shares	9				(17		)		38				(53		)
Net income (loss) available to common shareholders	$	147			$	892			$	(37	)		$	3,642
Weighted average shares1	1,511.7				1,434.1				1,505.7				1,434.3
Dilutive effect of the conversion of options and escrowed shares using treasury stock method1,2	24.7				36.1				—				32.0
Shares and share equivalents1	1,536.4				1,470.2				1,505.7				1,466.3
Diluted earnings per share1,3	$	0.10			$	0.61			$	(0.02	)		$	2.48

1. Adjusted to reflect the three-for-two stock split effective April 1, 2020.
2. Includes management share option plan and escrowed stock plan.
3. Per share amounts are inclusive of dilutive effect of mandatorily redeemable preferred shares held in a consolidated subsidiary.

CASH AVAILABLE FOR DISTRIBUTION AND/OR REINVESTMENT

Unaudited For the periods ended September 30 (US$ millions)	Three Months Ended								Last Twelve Months Ended
	2020				2019				2020				2019
Fee-related earnings1, excluding performance fees	$	323			$	306			$	1,250			$	1,034
Our share of Oaktree’s distributable earnings	41				—				196				—
Distributions from investments	459				333				1,706				1,539
Other wholly owned investments	46				1				(3		)		(14		)
Corporate interest expense	(98		)		(87		)		(370		)		(342		)
Corporate costs and taxes	(37		)		(9		)		(166		)		(139		)
Preferred share dividends	(34		)		(38		)		(144		)		(150		)
Add back: equity-based compensation	23				20				93				84
Cash available for distribution and/or reinvestment before carried interest	723				526				2,562				2,012
Realized carried interest, net, excluding Oaktree1,2	24				39				188				427
Cash available for distribution and/or reinvestment	$	747			$	565			$	2,750			$	2,439

1.     Excludes our share of Oaktree’s fee-related earnings and carried interest.
2.     Non-IFRS measure – see Basis of Presentation on page 9.

Additional Information

The Letter to Shareholders and the company’s Supplemental Information for the three months ended September 30, 2020, contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website.

The statements contained herein are based primarily on information that has been extracted from our financial statements for the quarter ended September 30, 2020, which have been prepared using IFRS, as issued by the IASB. The amounts have not been audited by Brookfield’s external auditor.

Brookfield’s Board of Directors have reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

Information on our dividends can be found on our website under Stock & Distributions/Distribution History.

Quarterly Earnings Call Details

Investors, analysts and other interested parties can access Brookfield Asset Management’s 2020 Third Quarter Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield’s website under the Reports & Filings section at www.brookfield.com.

To participate in the Conference Call today, please dial 1-866-688-9425 toll free in North America, or for overseas calls please dial 1-409-216-0815 (Conference ID: 2235277) at approximately 10:50 a.m. EST. The Conference Call will also be Webcast live at https://edge.media-server.com/mmc/go/bamQ3-2020. For those unable to participate in the Conference Call, the telephone replay will be archived and available until midnight November 19, 2020. To access this rebroadcast, please call 1-855-859-2056 or 1-404-537-3406 (Conference ID: 2235277). 

Brookfield Asset Management Inc. is a leading global alternative asset manager with approximately $575 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit. Brookfield owns and operates long-life assets and businesses, many of which form the backbone of the global economy. Utilizing its global reach, access to large-scale capital and operational expertise, Brookfield offers a range of alternative investment products to investors around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. Brookfield Asset Management is listed on the New York and Toronto stock exchanges under the symbol BAM and BAM.A respectively.

Please note that Brookfield’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

For more information, please visit our website at www.brookfield.com or contact:

Communications & Media: Claire Holland Tel: (416) 369-8236 Email: [email protected]

Investor Relations:  Linda Northwood Tel: (416) 359-8647 Email: [email protected]

Basis of Presentation

This news release and accompanying financial statements are based on International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), unless otherwise noted.

We make reference to Funds from Operations (“FFO”). We define FFO as net income attributable to shareholders prior to fair value changes, depreciation and amortization, and deferred income taxes, and include realized disposition gains that are not recorded in net income as determined under IFRS. FFO also includes the company’s share of equity accounted investments’ FFO on a fully diluted basis. FFO consists of the following components:

• FFO from Operating Activities represents the company’s share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from operating activities recorded by equity accounted investments on a fully diluted basis. We present this measure as we believe it assists in describing our results and variances within FFO.
   
• Realized Carried Interest represents our contractual share of investment gains generated within a private fund after considering our clients minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance.
   
• Realized Disposition Gains are included in FFO because we consider the purchase and sale of assets to be a normal part of the company’s business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period FFO.

We use FFO to assess our operating results and the value of Brookfield’s business and believe that many shareholders and analysts also find this measure of value to them.

We note that FFO, its components, and its per share equivalent are non-IFRS measures which do not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers and entities.

We make reference to Invested Capital. Invested Capital is defined as the amount of common equity in our segments and underlying businesses within the segments.

We make reference to Cash available for distribution and/or reinvestment, which is referring to the sum of our Asset Management segment FFO and distributions received from our ownership of investments, net of Corporate Activities FFO, equity-based compensation and preferred share dividends. This provides insight into earnings received by the corporation that are available for distribution to common shareholders or to be reinvested into the business.

We provide additional information on key terms and non-IFRS measures in our filings available at www.brookfield.com.

Notice to Readers

Brookfield is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, and, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements which reflect management’s expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” In particular, the forward-looking statements contained in this News Release include statements referring to the future state of the economy and markets; the expected future deployment of capital, including to repurchase shares; dispositions and the associated realized carried interest; as well as statements regarding the results of future fundraising efforts. In addition, forward-looking statements contained in this News Release include statements regarding the formation, business, and performance of BAM Reinsurance, as well as the expected trading price of its shares.

Where this news release refers to “target carried interest” it is based on an assumption that existing funds meet their target gross returns. Target gross returns are typically ~20% for opportunistic funds; 10% to 15% for value add, credit and core funds. Fee terms vary by investment strategy and may change over time. 

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, including the ongoing and developing COVID-19 pandemic and the global economic shutdown, which may cause the actual results, performance or achievements of Brookfield to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) investment returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business including as a result of COVID-19 and the related global economic shutdown; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including our real estate, renewable power, infrastructure, private equity, and residential development activities; and (xxiv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect its results. Investors and other readers are urged to consider the foregoing risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Except as required by law, the corporation undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to the historic investments discussed herein (because of economic conditions, the availability of investment opportunities or otherwise), that targeted returns, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved.

Target returns set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield in relation to the investment strategies being pursued by the funds, any of which may prove to be incorrect. There can be no assurance that targeted returns will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield’s control, the actual performance of the funds and the business could differ materially from the target returns set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns. No assurance, representation or warranty is made by any person that the target returns will be achieved, and undue reliance should not be put on them. Prior performance is not indicative of future results and there can be no guarantee that the funds will achieve the target returns or be able to avoid losses.

Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While Brookfield believes that such information is accurate as of the date it was produced and that the sources from which such information has been obtained are reliable, Brookfield makes no representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of any of the information or the assumptions on which such information is based, contained herein, including but not limited to, information obtained from third parties.

ELMSFORD, N.Y., Nov. 12, 2020 (GLOBE NEWSWIRE) — Party City Holdco Inc. (NYSE: PRTY) today announced that the Company is scheduled to present at the Stephens Annual Investment Conference on Thursday, November 19, 2020 at 12:00 pm Eastern Time.

A link to the live webcast will be available via the Company’s web site, investor.partycity.com. Participants should log in approximately 10 minutes prior to the start of the event. An online replay will also be available following the event.

About Party City

Party City Holdco Inc. is the leading party goods company by revenue in North America and, we believe, the largest vertically integrated supplier of decorated party goods globally by revenue. The Company is a popular one-stop shopping destination for party supplies, balloons, and costumes. In addition to being a great retail brand, the Company is a global, world-class organization that combines state-of-the-art manufacturing and sourcing operations, and sophisticated wholesale operations complemented by a multi-channel retailing strategy and e-commerce retail operations. The Company is the leading player in its category, vertically integrated and unique in its breadth and depth. The Company designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Company’s retail operations include approximately 830 specialty retail party supply stores (including franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com.

Contact:

ICR
Farah Soi and Rachel Schacter
203-682-8200
[email protected]

ENDEAVOUR EXTENDS MINE LIFE AND INCREASES PRODUCTION OUTLOOK AT ITS ITY AND HOUNDE FLAGSHIP ASSETS

Combined average annual production of ~500koz over next 5 years at low AISC of ~$823/oz

HIGHLIGHTS:
                                                         

• Houndé and Ity mine plans updated to include exploration success achieved over the past few years as Kari Pump, Kari West and Le Plaque discoveries have resulted in 2.0Moz of additional reserves
• Individual mine plans have been developed with a focus on providing long-term cash flow visibility ahead of implementing a dividend policy
• Combined annual production expected to average ~500koz over next 5 years (2021-2025) and ~465koz over next 10 years (2021-2030), up 27% and 58% respectively compared to the outlook provided in the construction decision studies  
• Further maiden reserves expected by year-end for the newly discovered Kari area deposits at Houndé 
• Strong potential to continue to extend mine lives at both operations given the ongoing exploration programs to drill the numerous identified near-mill targets 
• Mining permits have been granted for both the Kari and Le Plaque areas, at Houndé and Ity, respectively

Abidjan, November 12, 2020 – Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce that it has significantly extended the mine lives and increased the production outlook at its flagship assets, the Houndé mine in Burkina Faso and the Ity mine in Côte d’Ivoire, following recent near-mine exploration success.

The mine plans have been developed with a focus on sustaining a 250koz per year production profile to provide long-term cash flow visibility ahead of implementing a dividend policy. Key operational and environmental metrics for the five-year period from 2021 through 2025 have been summarized in Table 1 below.

Table


1


: Average Annual Metrics over next 5 years (2021-2025)

	Production (koz Au)	AISC ($/oz)	GHG Emissions Intensity (t CO2e/oz)	Energy Intensity (GJ/oz)
Houndé	250	865	0.54	5.32
Ity	248	780	0.34	5.63
Combined	498	823	0.44	5.48

The combined annual production of both mines is expected to average approximately 500koz over the next five years (2021-2025) and 465koz over the next 10 years (2021-2030). The Company expects that near-mine exploration will continue to add further ounces and generate the flexibility to bring forward higher grade production while maintaining long mine life visibility. In addition, Endeavour will continue to monitor its impact on the environment and seek to improve its environmental impact metrics to continue to be better than industry average.

Sebastien de Montessus, President and CEO of Endeavour Mining, said:
“Having successfully built and operated the Houndé and Ity mines over the past few years, we are delighted to be able to present updated mine plans which confirm the value unlocked through exploration and which demonstrate the high quality of these assets. Moreover, we have continued to refine the individual mine plans with a focus on providing long-term cash flow visibility ahead of implementing a dividend policy.

With the combined addition of more than 2 million ounces of higher grade reserves from the newly discovered deposits, we have been able to both increase production and extend the mine lives of Houndé and Ity. We are very pleased with the value created as our discovery cost per ounce of reserves has averaged below $25 since 2017, whereas the mine plans show that our combined all in sustaining cost of production over the next five years is below $850/oz, therefore generating significant returns on exploration.

We believe that exploration potential exists at both mines to sustain production at 250kozpa beyond the current life of mine plans. We expect further reserves additions in the coming months with maiden reserves expected at the Kari Center and Kari Gap discoveries. In addition, given the strong value creation potential, we will continue to have a strong focus on exploration at both operations given the numerous identified near-mill targets.”

Compared to the outlook provided in the optimization studies published ahead of commencing construction (Houndé in 2016 and Ity in 2017), Houndé and Ity are expected to produce an incremental 106koz per year on aggregate over the next 5 years (2021-2025) and 170koz per year over next 10 years (2021-2030), up 27% and 58%, respectively, as illustrated in Figure 1 below.

 Figure 1: Combined Houndé and Ity production profile

The main additions to the mine plans were the integration of the newly discovered Kari Pump and Kari West deposits at Houndé and the Le Plaque deposit at Ity, which combined have resulted in the delineation of 2.0Moz of Proven and Probable Reserves (“reserves”) since the discoveries were made, as shown in Table 2 below. The maiden reserve at Kari West and the increase at Le Plaque has resulted in a 0.8Moz increase over the year-end 2019 reserve estimate published in March 2020.

Table 2: Mineral Proven and Probable Reserves for new discoveries (current as at Dec 31, 2019)

	AS PUBLISHED IN MARCH 2020				UPDATED RESERVES			Δ AU CONTENT
	Tonnage	Grade	Content		Tonnage	Grade	Content
On a 100% basis	(Mt)	(Au g/t)	(Au koz)		(Mt)	(Au g/t)	(Au koz)	(Au koz)
Le Plaque (Ity)	5.5	2.34	415		9.0	1.91	556	+141
Kari Pump (Houndé)	7.3	3.00	704		7.3	3.00	704	0
Kari West (Houndé)	–	–	–		15.1	1.43	694	+694
Total	12.8	2.72	1,119		31.4	1.93	1,954	+835

Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Estimates are current as at December 31, 2019 and do not include 2020 mine depletion. Estimates will be revised at year-end to account for 2020 depletion, changes in mining parameters, costs, gold price and other modifying factors. 

The Company does not consider the change in mineral reserves to be a material change to the Company and, as such, no requirement for new technical reports for the Ity and Houndé mines has been triggered. The latest technical reports were filed on SEDAR, under the Company’s profile, on June 15, 2020.  The information within this press release is not to be used as formal guidance as the Company expects to provide formal annual guidance for production, costs and capital based on Board approved budgets in early 2021.

HOUNDÉ MINE

Mine Plan Update

The Houndé mine plan has been updated, since last published in 2016 as part of the Optimization Study, to reflect exploration success by adjusting mine sequencing to include the newly discovered Kari Pump and Kari West deposits. The updated mine plan also reflects the increased plant capacity of more than 4.0Mtpa, outperforming its nameplate 3.0Mtpa capacity, and accounts for mine depletion and recent operating data.

Additional recent discoveries at Kari (Kari Center, Gap, Pump NE and South) have not yet been included in the updated mine plan and are expected to be included within the year-end reserve statement following additional drilling and completion of metallurgical testwork and engineering.

The Houndé mine plan has been developed with a focus on sustaining a 250koz per year production profile. As shown in Table 3 below, the Houndé mine is now expected to produce approximately 2.3 million ounces through 2031, with average production of circa 250koz for the 5-year period starting in 2021 and 202koz for the following 5-year period starting in 2026.

The Company expects that conversion of existing resources into reserves and near-mine exploration will continue to add further ounces and extend the mine life.

Table


3


: Houndé Life of Mine Summary

		FIRST 5 YEARS		NEXT 5 YEARS		LIFE OF MINE
	Unit	(2021-2025)		(2026-2030)		(2021-2031)
PRODUCTION DATA
Strip ratio	W:O	8.66		5.28		7.51
Total tonnes processed	Mt	20.3		20.3		43.7
Average grade processed	Au g/t	2.12		1.69		1.81
Total gold contained processed	Moz	1.4		1.1		2.5
Average recovery rate	%	91%		92%		91%
Total gold production	koz	1,252		1,011		2,326
Average gold production	kozpa	250		202		216
OPERATING COSTS
Cash costs	$/oz	556		694		634
AISC 1	$/oz	865		931		908
ENVIROMENTAL DATA
GHG emissions intensity2	t CO2e/oz	0.54		0.34		0.39
Energy consumption intensity	GJ/oz	5.32		6.59		6.18

¹

Royalties based on a gold price of $1,700/oz.² GHG Emissions Intensity calculated as Scope 1 and 2. 

Compared to the outlook provided in the 2016 Optimization Study, Houndé is expected to produce an incremental 63koz per year over the next 5 years (2021-2025) and 113koz per year over the next 10 years (2021-2030), up 34% and 100%, respectively, as illustrated in Figure 7 below. The updated plan also adds several years to the mine life compared to the previous mine plan.

Figure


2: Houndé Production Profile

Figure 3 below demonstrates the sequencing of production from the various pits which comprise the whole of the Houndé operation. Tonnes mined, processed and recoveries are expected to vary from year to year depending on the ore blend, as well as the characteristics of the various deposits. 

Figure 3: Houndé Mining Schedule by Deposit (current as at Dec 31, 2019)

 

The summarized mining and processing schedules, along with operating and capital cost estimates have been provided in Appendix A. Key capital projects now underway or planned to commence in 2021 include: Kari West compensation, waste dump sterilisation, advanced grade control programme, fencing and infrastructure, plus some fleet upgrades to cater for the higher mining volumes planned for the next few years as we open up both Kari West and Kari Pump.

A Tailing Storage Facility (“TSF”) with an initial capacity of approximately 25Mt was required to store the tailings generated by the process plant over a period of 8 to 9 years, at a rate of approximately 3Mtpa. Due to the increased reserves, the TSF design was expanded to 38Mt and scheduled to be built in 10 stages. The first 4 stages have been completed and the 5^th stage is planned to be completed by the end of 2020 with a capacity of 19Mt.

Hounde has sufficient mining equipment to execute its current mine plan with a total of eight excavators composed of one PC3000, three PC2000 and four PC1250. In addition, there are 31 Komatsu HD785-7 dump trucks and sufficient ancillary equipment (dozers, graders, water carts and other service trucks). To achieve the increase to >50Mtpa for the next 5 years, an additional excavator and 5 trucks will be brought in.

Reserves and Resources

As shown in Table 4 below, the mine plan is based on a total of 2.9Moz of reserves, inclusive of the Kari Pump and Kari West discoveries which together resulted in the addition of 1.4Moz to reserves.

Table


4


: Houndé Mineral Reserve and Resource Estimate by Deposit (current as at Dec 31, 2019)

Resources shown inclusive of Reserves on a 100% basis	CONVERSION		P &P RESERVES				M&I RESOURCES				INFERRED RESOURCES
	P&P Reserve to M&I Resource		Tonnage	Grade	Content		Tonnage	Grade	Content		Tonnage	Grade	Content
			(Mt)	(Au g/t)	(Au koz)		(Mt)	(Au g/t)	(Au koz)		(Mt)	(Au g/t)	(Au koz)
Kari Pump	71%		7.3	3.00	704		11.6	2.66	996		0.3	2.16	20
Kari West	69%		15.1	1.43	694		20.4	1.53	1,005		2.5	1.41	114
Vindaloo	75%		22.4	1.72	1,242		26.8	1.92	1,654		2.6	2.63	217
Bouere	88%		0.8	4.30	113		0.8	4.94	127		0.2	3.60	18
Dohoun	79%		1.2	1.85	69		1.2	2.35	87		0.1	2.91	6
Kari Center	–		–	–	–		6.6	1.27	269		0.5	1.68	25
Kari Gap	–		–	–	–		3.9	1.40	176		0.1	1.76	8
Kari Pump NE	–		–	–	–		0.3	2.18	21		0.0	1.81	3
Kari South	–		–	–	–		2.1	1.09	75		1.7	1.30	69
Stockpiles	100%		0.9	1.20	37		1.0	1.20	37		–	–	–
Total	64%		47.7	1.86	2,858		74.7	1.85	4,447		7.9	1.90	481

Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Company is not aware of any known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources and reserves. Resources were constrained by MII Pit Shell and based on a cut-off of 0.5 g/t Au. Estimates are current as at December 31, 2019 and do not include 2020 mine depletion. Estimates will be revised at year-end to account for 2020 depletion, changes in mining parameters, costs, gold price and other modifying factors. 

Houndé’s updated reserves and resources are presented in Table 5 below. Updated resources reflect the Kari Area resource additions as published on July 22, 2020. Updated reserves incorporate the maiden reserve at Kari West while Kari Pump was already included in the year-end 2019 reserve statement.

Table


5


: Houndé Mineral Reserve and Resource Evolution (current as at Dec 31, 2019)

Resources shown inclusive of Reserves on a 100% basis	AS PUBLISHED IN MARCH 2020				UPDATED WITH KARI AREA ADDITIONS			Δ AU CONTENT
	Tonnage	Grade	Content		Tonnage	Grade	Content
	(Mt)	(Au g/t)	(Au koz)		(Mt)	(Au g/t)	(Au koz)	(Au koz)
Proven Reserves	1.8	1.57	89		1.8	1.57	89	0
Probable Reserves	30.9	2.09	2,075		45.9	1.87	2,769	+694
P&P Reserves	32.6	2.06	2,164		47.7	1.86	2,858	+694
Measured Resources	1.7	1.75	96		1.7	1.75	96	0
Indicated Resources	58.6	2.01	3,797		72.9	1.86	4,351	+554
M&I Resources	60.4	2.01	3,893		74.7	1.85	4,447	+554
Inferred Resources	6.9	2.07	456		7.9	1.90	481	+24

Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Company is not aware of any known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources and reserves. Resources were constrained by MII Pit Shell and based on a cut-off of 0.5 g/t Au. Estimates are current as at December 31, 2019 and do not include 2020 mine depletion. Estimates will be revised at year-end to account for 2020 depletion, changes in mining parameters, costs, gold price and other modifying factors. 

Permitting 

As announced on July 6, 2020, Endeavour was granted a mining permit extension by the Burkina Faso Government, covering the full Kari area at its Houndé Mine, as shown in Figure 4 below. The Kari area has been permitted as an extension of the main Houndé mining permit thereby allowing the area to benefit from Burkina Faso’s 2003 Mining Code which includes a corporate income tax rate of 17.5%, a 10% free-carried State interest, and a royalty based on a 3% to 5% sliding scale linked to prevailing gold prices.

Figure 4: Houndé Operating Permits

Mine life extension potential

Over 2.6Moz of indicated resources have been discovered since late 2016, yet significant exploration potential remains at the Houndé mine with several near-mine targets identified. To date, the Kari area has been the main exploration focus. Over the coming years, exploration is expected to continue to focus on the remaining unexplored Kari area and on the numerous additional targets that are located within 15km of the plant, as shown in Figure 5 below.

Figure 5: Houndé Exploration Map

ITY MINE

Mine Plan Update

The Ity mine plan has been updated, since last published in September 2017 as part of the Ity CIL Optimization Study, to reflect exploration success by adjusting mine sequencing to include newly discovered deposits. It also reflects the increased plant capacity to above 5.0Mtpa, from 4.0Mtpa at the construction decision, and accounts for mine depletion and recent operating data.

The Ity mine plan has been developed with a focus on sustaining a 250koz per year production level. As shown in Table 6 below, the Ity mine is now expected to produce approximately 2.5 million ounces through 2031, with an average production of 248koz for the 5-year period starting in 2021 and 231koz for the following 5-year period starting in 2026.

The Company expects that near-mine exploration will continue to add further ounces and extend the mine life. 

Table 6: Ity Life of Mine Summary

		FIRST 5 YEARS		NEXT 5 YEARS		LIFE OF MINE
	Unit	(2021-2025)		(2026-2030)		(2021-2031)
PRODUCTION DATA
Strip ratio	W:O	3.88		2.89		3.24
Total tonnes processed	Mt	27.3		28.0		60.6
Average grade processed	Au g/t	1.66		1.58		1.55
Total gold contained processed	Moz	1.5		1.4		3.0
Average recovery rate	%	85%		81%		84%
Total gold production	koz	1,241		1,156		2,522
Average gold production	kozpa	248		231		230
OPERATING COSTS
Cash costs	$/oz	545		590		571
AISC 1	$/oz	780		764		780
ENVIROMENTAL DATA
GHG emissions intensity2	t CO2e/oz	0.34		0.38		0.35
Energy consumption intensity3	GJ/oz	5.63		6.21		6.16

  ¹

Royalties based on a gold price of $1,700/oz.² GHG Emissions Intensity calculated as Scope 1 and 2.

Compared to the outlook provided in the September 2017 Optimization Study, Ity is expected to produce an incremental 43koz per year over the next 5 years (2021-2025) and 58koz per year over next 10 years (2021-2030), up 21% and 32%, respectively, as illustrated in Figure 6 below.

Figure 6: Ity Production Profile

Figure 7 below demonstrates the sequencing of production from the various pits which comprise the whole of the Ity operation. Tonnes mined, processed and recoveries are expected to vary from year to year depending on the ore blend, as well as the characteristics of the various deposits. The land compensation and haul road construction for the Le Plaque deposit has commenced, which will enable a first grade control drilling campaign in Q1-2021, ahead of mining which is planned to commence after the wet season in late 2021.

Figure 7: Ity Mining Schedule by Deposit (current as at Dec 31, 2019)

The summarized mining and processing schedules, along with operating and capital cost estimates have been provided in Appendix B. Key capital projects now underway or planned to commence in 2021 include: TSF raise 3, Bakatouo and Colline Sud river diversions, Le Plaque land compensation, waste dump sterilisation, advanced grade control drilling program, haul road and infrastructure, in addition to a number of processing upgrades to improve metallurgical recovery in line with the volumetric upgrade completed in 2019.

The Tailings Storage Facility (“TSF”) for the CIL plant has been designed with total capacity of 57Mt based on an average annual throughput rate of 5Mtpa. The TSF construction is scheduled in 12 stages, with the first and second stages completed in January 2019 and April 2020, respectively. The construction of the remaining stages is scheduled throughout the mine life with the last stage expected to be completed in 2030.

The production plan for Ity was developed based on 6 PC1250 excavators for 2021 to 2024 and 7 excavators in 2025 to 2029 and dropping to 5 in 2030. In the last year of mining in 2031, 3 PC1250 were utilised.

The Ity mine utilizes a fleet composed of Articulated Dump Trucks (ADT) Volvo A40 and Dump Trucks (DT) Komatsu HD785-7. Over the next 10 years, an average of 24 ADTs are expected to be utilized, with flexibility to rent additional equipment if required, and approximately 14 DTs. Endeavour may elect to shift from owner-mining to contract mining should it result in additional savings.

The development of the Le Plaque deposit is being prioritized, for which the pit’s haul road construction is set to commence in late 2020. In addition, land compensation and bush clearing for areas outside the current compensation boundary is underway as Endeavour expects to delineate further resources in the Le Plaque area.

A number of plant optimization initiatives and engineering studies are underway, including a processing plant crusher duplication and the addition of two tanks or a pre-leach tank including tank spargers which are expected to increase Ity’s plant capacity from 5.0Mtpa to 5.6Mtpa within minimal capital spend in 2021.  

Reserves and Resources

As shown in Table 7 below, the mine plan is based on a total of 3.3Moz of reserves, inclusive of the recently discovered Le Plaque deposit which has resulted in the addition of 556koz of reserves.

Table 7: Ity Mineral Reserve and Resource Estimate by Deposit (current as at Dec 31, 2019)

Resources shown inclusive of reserves on a 100% basis	CONVERSION		P &P RESERVES				M&I RESOURCES				INFERRED RESOURCES
	P&P Reserve to M&I Resource		Tonnage	Grade	Content		Tonnage	Grade	Content		Tonnage	Grade	Content
			(Mt)	(Au g/t)	(Au koz)		(Mt)	(Au g/t)	(Au koz)		(Mt)	(Au g/t)	(Au koz)
Mont Ity/Flat/Walter	79%		7.5	1.75	422		9.7	1.71	535		9.7	1.35	418
ZiaNE	94%		6.4	1.09	223		7.2	1.03	238		5.2	1.14	191
Verse Ouest-Teckraie	94%		8.1	1.02	266		8.9	0.99	284		0.8	0.84	21
Daapleu	70%		16.0	1.71	880		26.3	1.49	1,256		0.6	0.90	19
Gbeitouo	88%		2.6	1.29	109		2.9	1.35	124		0.3	1.48	13
Aires Leach Pads	90%		3.9	1.13	141		5.0	0.96	156		0.0	0.00	0
Bakatouo	92%		7.8	2.24	560		8.8	2.15	611		0.6	2.27	41
Colline Sud	36%		0.4	1.64	24		1.0	2.14	66		0.4	2.11	28
Le Plaque	81%		9.0	1.91	556		7.9	2.66	689		0.8	2.10	52
Stockpiles	100%		4.0	0.82	105		4.0	0.83	105		0.0	0.00	0
Total	81%		65.6	1.56	3,285		81.7	1.55	4,064		18.3	1.33	782

Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Company is not aware of any known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources and reserves. Resources were constrained by MII Pit Shell and based on a cut-off of 0.5 g/t Au. Estimates are current as at December 31, 2019 and do not include 2020 mine depletion. Estimates will be revised at year-end to account for 2020 depletion, changes in mining parameters, costs, gold price and other modifying factors. 

Ity’s reserves and resources have been updated to include the increased Le Plaque resources as announced on July 7, 2020 and its subsequent conversion to reserves as summarized in Table 8 below.

Table 8: Ity Mineral Reserve and Resource (current as at December 31, 2019)

Resources shown inclusive of reserves on a 100% basis	AS PUBLISHED IN MARCH 2020				UPDATED TO INCLUDE LE PLAQUE			Δ AU CONTENT
	Tonnage	Grade	Content		Tonnage	Grade	Content
	(Mt)	(Au g/t)	(Au koz)		(Mt)	(Au g/t)	(Au koz)	(Au koz)
Proven Reserves	9.4	1.05	318		9.4	1.05	318	0
Probable Reserves	52.7	1.67	2,825		56.2	1.64	2,966	+141
P&P Reserves	62.1	1.57	3,144		65.6	1.56	3,285	+141
Measured Resources	10.3	1.02	337		10.3	1.02	337	0
Indicated Resources	68.1	1.61	3,514		71.4	1.62	3,727	+213
M&I Resources	78.4	1.53	3,851		81.7	1.55	4,064	+213
Inferred Resources	18.0	1.35	780		18.3	1.33	782	+2

Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Company is not aware of any known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources and reserves. Resources were constrained by MII Pit Shell and based on a cut-off of 0.5 g/t Au. Estimates are current as at December 31, 2019 and do not include 2020 mine depletion. Estimates will be revised at year-end to account for 2020 depletion, changes in mining parameters, costs, gold price and other modifying factors.

Permitting 

The Government of Côte d’Ivoire recently granted Endeavour the Floleu mining permit which covers the entire Le Plaque area as illustrated in Figure 8 below. The Ity mine is now comprised of three mining licenses, each held within separate entities. The initial mining permit, which hosts notably the Bakatouo and Mont Ity deposits in addition to the processing facility, is held by Société des Mines d’Ity (“SMI”) while the Gbeitouo and Daapleu deposits are held by Société des Mines de Daapleu (“SMD”), both of which are 85%-owned by Endeavour. The Floleu mining permit is now held within the newly formed Société des Mines de Floleu (“SMF”) which is 90% owned by Endeavour. The Floleu permit has been granted as part of the 2014 Mining Code which includes a corporate income tax rate of 25%, and a royalty based on a 3% to 5% sliding scale linked to prevailing gold prices.

Figure 8: Ity Operating Permits

Mine life extension potential  

Over 2.3Moz of indicated resources have been discovered since late 2016, yet significant exploration potential remains at the Ity mine with several near-mine targets identified. Over the coming years, exploration is expected to continue to focus on the Le Plaque area targets, as well as other targets where mineralization has already been confirmed. Such targets include Daapleu SW, Walter Deep, Verse Ouest, Le Plaque West, Epsilon Deeps, Falaise, Yopleu, and Delta SE, as shown in Figure 9 below.

Given the high grade nature of the Le Plaque area, it has been the primary exploration target in the greater Ity area since March 2018 with a strong focus placed on understanding the potential of the wider Le Plaque area. During H1-2020, in addition to the Le Plaque resource definition program, a total of 543 Air Core holes totalling 23,186 meters were drilled on a more regional scale on the northern part of the Floleu license on a 200-meter by 50-meter northwest-southeast oriented grid. This reconnaissance drilling outlined that Le Plaque represents only 30% of the large Northern Floleu anomalous area where at least seven other targets were confirmed, as shown in Figure 10 below. Drilling on these targets is ongoing, with the aim of delineating additional maiden resources in 2021.

Figure 9: Ity Map with Exploration Targets

Figure 10: Le


Plaque


Targets

Intercepts in the figure above are based on a minimum 2-meter length, a 0.5 g/t Au cut-off, and 1.0-meter internal dilution. Please refer to the press release date July 7, 2020, available on the Company’s website, for detailed technical notes. 

TECHNICAL NOTES

Kari West Design Study Parameters

Exhaustive metallurgical testing and geotechnical and mining studies performed since November 2018 have allowed for the present Probable Reserves definition to be performed through Whittle optimization and subsequent mine design and planning by the Endeavour Technical Services team based on the following inputs:

• Gold price of $1,300/oz
• 0.5 g/t Au cut-off grade for oxide and 0.6g/t Au cut-off grade for transitional and fresh material were applied for mine planning
• 5% ore and gold loss factor were applied in addition to the inherent ore dilution through the reblocking process to SMU size blocks (5.0m x 5.0m x 2.5m along Easting, Northing and depth, respectively)
• Average mining and haulage unit cost of $2.13 per total of material tonne mined, average processing unit cost of $13.76/ore tonne, and average G&A unit cost of $5.62/ore tonne
• Gold recovery rates are estimated at 96.4% for oxide ore, 89.2% for transition ore, and 92.7% for fresh ore, averaging 93.3% for the deposit
• Doré freight security and refining rate of $5.50/oz

The Mineral Reserve estimation was also carried out by the Endeavour Technical Services team. The mining method planned for Kari West is conventional selective open pit mining, with the run of mine ore hauled for processing to the Houndé CIL plant. Ore and waste mining are expected to be conducted with owner operator equipment whilst overland ore haulage via a local haulage contractor. Based on the selected pit shell and resultant design stages, the average strip ratio (waste t: ore t) for Kari West is 6:1.

A geotechnical program has been completed to determine parameters for pit optimization and the pit designs. The geotechnical program was initiated in September 2019 and incorporates five geotechnical boreholes to investigate the rock mass for the Kari West project.  The boreholes were sited to cover as much of the various rock types as possible. All geotechnical drill hole collars were surveyed with a differential GPS. Down hole surveys of the holes were carried out to confirm the borehole orientation. 

Endeavour undertook a metallurgical test work program at ALS Global Laboratories in Perth on 650kg of NQ and HQ drill core samples from the Kari West deposit. Samples were selected to represent the various lithologies and weathered rock types across the deposit, both spatially and at depth. Testwork included:

• Eight selected samples from the core delivered to ALS. Each comminution test comprised a suite of SMC tests, a Bond Abrasion Index (Ai) and a Bond Ball Mill Work Index (BBWi) determination
• 36 hydrometallurgical variability tests to compare the gold extraction under the same set of standard cyanidation leach conditions for each of the various lithologies and weathered rock types across the deposit
• A range of ancillary testwork for mineralogical analysis, oxygen uptake rate tests, slurry rheology and thickening, gold carbon loading kinetics and cyanide detoxification, to understand and compare the behaviour and characteristics of ore to key design criteria from the existing Houndé Processing Plant.

The testwork program confirmed similar metallurgical properties to that of ores from the Houndé Deposit, providing confidence that Kari West ore can be processed via the existing Houndé processing plant. Ore recoveries based on this testwork are estimated at 94% for oxide ore, 90% for transition ore, and 82% for fresh ore, averaging 88% for the deposit.

Lycopodium Limited were engaged to review testwork results and determine processing impacts for Kari West ore via the Houndé processing plant and determine process unit operating costs.

Le Plaque Reserves Parameters

Whittle pit optimization and stage design works have been carried out by Snowden.

In estimation of the reserve, a $1,300/oz gold price has been used together with the parameters from the scoping study report from Snowden below:

• 0.4 g/t Au cut-off grade
• 5% grade reduction factor was applied to the Resource model in addition to the inherent ore dilution and recovery incorporated within a reblocked resource model, through the reblocking process to SMU sized blocks (5.0m x 5.0m x 2.5m along Easting, Northing and depth, respectively)
• Average mining and haulage unit cost of $2.79 per total of material tonne mined, average processing unit cost of $12.32/ore tonne, and average G&A unit cost of $2.97/ore tonne
• Gold recovery rates are estimated at 95.4% for oxide ore, 93.7% for transition ore, and 90.7% for fresh ore
• Doré freight, security and refining rate of $9.15/oz

The Mineral Reserve estimation study has been carried out by the Endeavour Technical Services team. The mining method planned for Le Plaque is conventional selective open pit mining, with the run of mine ore hauled for processing to the Ity CIL plant. In the study, ore and waste mining were assumed to be undertaken with owner operator equipment. 

A geotechnical study has been completed to determine parameters for pit shell optimization and the pit designs. The geotechnical study program was initiated in Q4-2019 and incorporates eight geotechnical boreholes to investigate the rock mass for the Le Plaque project. The boreholes were sited to cover as much of the various rock types as possible. All geotechnical drill hole collars were surveyed with a differential GPS. Down hole surveys of the holes were carried out to confirm the borehole orientation. 

Endeavour undertook a metallurgical test work program at ALS Global Laboratories in Perth on drill core samples from the Le Plaque deposit. Samples were selected to represent the various lithologies and weathered rock types across the deposit, both spatially and at depth. Testwork included:

• 23 selected samples from the core were delivered to ALS. Each comminution test comprised a suite of SMC tests, a Bond Abrasion Index (Ai) and a Bond Ball Mill Work Index (BBWi) determination
• 60 hydrometallurgical variability tests were conducted to compare the gold extraction under the same set of standard cyanidation leach conditions for each of the various lithologies and weathered rock types across the Le Plaque deposit

Lycopodium Limited were engaged to review test results and determine processing impacts for Le Plaque ore via the Ity processing plant. Lycopodium also provided an estimate for the process unit operating costs.  

QUALIFIED PERSONS

Salih Ramazan, Vice President Mine Planning for Endeavour Mining – a Fellow Member of the AusIMM, is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and approved the technical information in this news release.

CONTACT INFORMATION

Martino De Ciccio VP – Strategy & Investor Relations +44 203 640 8665 [email protected]

Vincic Advisors in Toronto John Vincic, Principal +1 (647) 402 6375 [email protected]   Brunswick Group LLP in London Carole Cable, Partner +44 7974 982 458 [email protected]

ABOUT ENDEAVOUR MINING CORPORATION

Endeavour Mining is a multi-asset gold producer focused on West Africa, with two mines (Ity and Agbaou) in Côte d’Ivoire, four mines (Houndé, Mana, Karma and Boungou) in Burkina Faso, four potential development projects (Fetekro, Kalana, Bantou and Nabanga) and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d’Ivoire, Mali and Guinea.  

As a leading gold producer, Endeavour Mining is committed to principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is listed on the Toronto Stock Exchange, under the symbol EDV.

For more information, please visit www.endeavourmining.com.

Corporate Office: 5 Young St, Kensington, London W8 5EH, UK   

This news release contains “forward-looking statements” including but not limited to, statements with respect to Endeavour’s plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “forecasts”, and “anticipates”. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour’s most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business. AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in sustaining margin, free cash flow, net free cash flow, free cash flow per share, net debt, and adjusted earnings are non-GAAP financial performance measures with no standard meaning under IFRS, further discussed in the section Non-GAAP Measures in the most recently filed Management Discussion and Analysis.

APPENDIX A: HOUNDÉ MINE PLAN

Item	Unit	Total / Average	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030	2031
Mining Schedule
Total Material Moved	kt	366,806	55,469	54,552	54,377	56,075	54,322	47,134	29,981	7,987	5,358	1,552	0
Total Waste Moved	kt	323,716	49,850	47,681	47,396	52,400	49,028	39,841	25,108	6,421	4,672	1,318	0
Total Ore Mined	kt	43,090	5,619	6,871	6,981	3,675	5,294	7,292	4,872	1,567	686	234	0
Stripping Ratio	w:o	7.51	8.87	6.94	6.79	14.26	9.26	5.46	5.15	4.10	6.81	5.63	–
Au Grade – Ore Mined	g/t	1.82	1.95	1.94	1.71	2.28	1.89	1.70	1.46	1.79	1.41	1.03	0.00
Contained Gold – Ore Mined	oz	2,515,235	352,821	429,250	384,894	268,935	321,932	399,525	228,876	90,144	31,107	7,752	0
Processing Schedule
Total Ore Processed	kt	43,721	4,050	4,051	4,051	4,062	4,051	4,051	4,051	4,062	4,051	4,051	3,193
Au Grade – Ore Processed	g/t	1.81	2.07	2.10	2.10	2.18	2.14	2.09	2.10	1.84	1.51	0.89	0.67
Contained Gold – Ore Processed	oz	2,546,492	269,762	273,547	273,165	284,145	278,931	272,579	273,194	240,418	196,191	115,809	68,753
Au Recovery	%	91.4%	92.9%	91.7%	91.6%	88.1%	89.5%	91.7%	91.5%	92.0%	93.0%	92.7%	92.7%
Recovered Gold	oz	2,326,419	250,502	250,865	250,158	250,268	249,723	250,058	250,032	221,166	182,490	107,392	63,766
Unit Cost
Mining	$/t Mined	1.98	1.92	2.05	1.83	1.82	1.92	2.21	2.29	2.60	1.59	1.49	–
Processing	$/t Ore Processed	14.74	14.56	14.19	14.26	14.84	14.60	14.92	15.05	15.53	15.15	14.47	14.50
G&A	$/t Ore Processed	4.77	5.99	5.94	5.70	5.29	5.10	5.12	4.31	4.13	3.95	3.51	3.09
Cash cost	$/oz Gold Sold	634	552	632	520	489	585	650	660	653	693	962	1,215
AISC	$/oz Gold Sold	908	890	873	827	855	879	950	899	851	913	1,164	1,381
Cost Summary
Mining costs (total tonnes moved)	$m	728	106	112	100	102	104	104	69	21	9	2	0
Less: capitalized waste	$m	(117)	(23)	(2)	(20)	(42)	(21)	0	(3)	(3)	(3)	(0)	0
Processing cost	$m	644	59	57	58	60	59	60	61	63	61	59	46
General & Administrative expenses	$m	209	24	24	23	21	21	21	17	17	16	14	10
Inventory adjustments and other	$m	10	(28)	(33)	(31)	(20)	(17)	(23)	21	46	44	28	21
Total Cash Cost	$m	1,474	138	158	130	122	146	163	165	144	126	103	77
Royalties	$m	316	34	34	34	34	34	34	34	30	25	15	9
Sustaining Capital	$m	321	50	26	43	58	40	41	26	14	15	7	2
All-In-Sustaining Costs	$m	2,111	223	219	207	214	219	237	225	188	166	125	88
Non-sustaining Capital	$m	60	10	2	3	6	6	6	6	7	12	2	0
Total Cost	$m	2,172	233	221	210	220	225	244	231	195	178	127	88

The mine plan and its associated costs are current as at December 31, 2019 and does not include 2020 mine depletion. The Company is not aware of any known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources and reserves. Estimates will be revised at year-end to account for 2020 depletion, changes in mining parameters, costs, gold price and other modifying factors. Reported operating and capital costs may differ due to changes in applicable accounting classification.

APPENDIX B: ITY MINE PLAN

	Unit	Total / Average	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030	2031
Mining Schedule
Total Material Moved	kt	239,216	22,170	22,531	22,317	25,849	23,292	29,725	29,104	26,811	22,812	12,690	1,915
Total Waste Moved	kt	182,839	16,289	18,287	17,546	21,579	18,636	23,476	22,138	19,180	17,940	7,304	463
Total Ore Mined	kt	56,377	5,882	4,244	4,771	4,270	4,656	6,249	6,966	7,631	4,872	5,386	1,453
Stripping Ratio	w:o	3.24	2.77	4.31	3.68	5.05	4.00	3.76	3.18	2.51	3.68	1.36	0.32
Au Grade – Ore Mined	g/t	1.60	1.89	1.78	1.70	1.90	1.80	1.54	1.52	1.50	1.48	1.18	1.23
Contained Gold – Ore Mined	oz	2,905,711	358,235	242,862	261,051	261,376	269,167	308,673	341,307	369,101	232,139	204,308	57,493
Processing Schedule
Total Ore Processed	kt	60,588	5,200	5,251	5,600	5,615	5,600	5,600	5,600	5,615	5,600	5,600	5,307
Au Grade – Ore Processed	g/t	1.55	1.85	1.65	1.60	1.61	1.62	1.65	1.77	1.77	1.52	1.19	0.80
Contained Gold – Ore Processed	oz	3,015,022	309,196	277,876	287,820	291,516	291,064	296,299	317,803	319,260	272,910	215,053	136,224
Au Recovery	%	83.7%	78.3%	88.6%	87.0%	86.0%	86.4%	84.8%	78.7%	78.5%	77.7%	89.4%	92.1%
Recovered Gold	oz	2,522,204	242,026	246,275	250,449	250,751	251,390	251,120	250,032	250,525	212,030	192,159	125,448
Unit Cost
Mining	$/t Mined	2.56	2.44	2.28	2.57	2.68	2.45	2.85	2.82	2.62	2.16	2.73	1.68
Processing	$/t Ore Processed	10.84	11.41	10.71	11.32	11.51	11.03	11.23	11.16	10.57	10.60	10.01	9.67
G&A	$/t Ore Processed	3.33	4.13	4.15	3.93	3.64	3.52	3.54	2.96	2.93	2.83	2.77	2.27
Cash cost	$/oz Gold Sold	571	540	505	555	575	548	608	631	562	564	580	646
AISC	$/oz Gold Sold	780	812	750	771	815	752	799	781	701	764	781	925
Cost Summary
Mining costs (total tonnes moved)	$m	613	54	51	57	69	57	85	82	70	49	35	3
Less: capitalized waste	$m	(76)	(13)	(8)	(8)	(15)	(9)	(9)	(0)	(0)	(12)	(0)	0
Processing cost	$m	657	59	56	63	65	62	63	62	59	59	56	51
General & Administrative expenses	$m	202	21	22	22	20	20	20	17	16	16	16	12
Inventory adjustments and other	$m	41	8	3	5	4	8	(5)	(3)	(5)	7	5	14
Total Cash Cost	$m	1,438	130	124	139	144	138	153	158	141	119	111	81
Royalties	$m	236	23	23	23	23	23	23	23	23	20	18	12
Sustaining Capital	$m	292	43	37	31	37	28	25	14	11	22	21	23
All-In-Sustaining Costs	$m	1,965	196	184	193	204	189	201	195	175	162	150	116
Non-sustaining Capital	$m	162	40	10	6	11	11	12	13	14	15	15	10
Total Cost	$m	2,127	236	194	199	215	200	213	208	189	176	165	126

The mine plan and its associated costs are current as at December 31, 2019 and does not include 2020 mine depletion. The Company is not aware of any known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources and reserves. Estimates will be revised at year-end to account for 2020 depletion, changes in mining parameters, costs, gold price and other modifying factors. Reported operating and capital costs may differ due to changes in applicable accounting classification.

Attachment

• 201112 – NR – LOMPs – VDEF