Endeavour Silver Announces Q1 2023 Financial Results; Earnings Call at 10AM PDT (1PM EDT) Today
Endeavour Silver Announces Q1 2023 Financial Results; Earnings Call at 10AM
PDT (1PM EDT) Today
VANCOUVER, British Columbia, May 10, 2023 -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE:
EXK; TSX: EDR) is pleased to announce its financial and operating results for the three months ended March 31, 2023. All
dollar amounts are in US dollars (US$).
“We are pleased to report a solid start this year with consolidated production expected to meet full year guidance,” stated Dan
Dickson, CEO of Endeavour Silver. “Guanacevi continues to perform well, generating strong operating cash flow which we are
reinvesting in the business. Industry-wide inflation pressures continue to persist, which combined with a strengthening
Mexican Peso, are increasing our operating costs. We are working to manage our inputs in order to offset these cost
pressures as we pursue productivity and efficiency initiatives.
Added Mr. Dickson, “On April 18, 2023, we reached a key milestone with the announcement of the project financing
commitment of $120 million and a subsequent formal construction decision at Terronera. The successful execution of this
underground mine development and mill is integral to achieving our growth goal to nearly double our production by 2025 and
transform our cost profile. With a seasoned team of development personnel, we are moving forward confidently and look
forward to establishing an exciting future for our stakeholders.”
Q1 2023 Highlights
• Production Tracking Towards Upper Range of Guidance: 1,623,545 ounces (oz) of silver and 9,342 oz of gold for
2.4 million oz silver equivalent (AgEq)(1).
• Revenue : $55.5 million from the sale of 1,667,408 oz of silver and 9,126 oz of gold at average realized prices of $23.16
per oz silver and $1,917 per oz gold.
• Reduced Earnings Due to Lower Realized Prices : $6.5 million, or $0.03 per share, down 45% from Q1 2022.
Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (2) of $19.4 million, a decrease of 24% from Q1
2022.
• Cash Flow : $12.5 million in operating cash flow before working capital changes (2), a decrease of 39% from Q1 2022.
Mine operating cash flow before taxes(2) also decreased to $22.4 million.
• Higher Costs Due to Strengthened Peso and Industry-Wide Inflation: Cash costs (2) of $11.12 per oz payable silver
and all-in sustaining costs (2) of $20.16 per oz payable silver, net of gold credits. Cash costs (2) were slightly above
guidance due to a strengthening of the Mexican Peso and increased labour, power and consumables costs.
Management continues to work diligently to reduce costs and improve efficiencies where possible.
• Healthy Balance Sheet: Cash position of $61.6 million and working capital (2) of $92.8 million. Cash decreased as
funds were spent on development activities at Terronera.
Subsequent to Q1 2023
• Company Secures Project Financing and Updates Development Plans for Terronera : Societe Generale and ING
Bank N.V. have entered into a commitment letter for a Senior Secured Debt Facility of $120 million. The Company has
optimized the project’s operating flexibility from the NI 43-101 Feasibility Study of the Terronera Project filed in 2021.
The Revised scenario approves the construction of a 2,000 tpd process plant with an initial capital expenditure of $230
million (see news release dated April 18, 2023).
• Terronera De-risked with over $58 million Invested to date into Development : The Board of Directors has
approved the construction of an underground mine and mill at Terronera. The Company has made significant progress
on development activities, with long-lead item procurement well advanced and a seasoned team of development
personnel established on the ground (see news release dated April 20, 2023).
Financial Overview (see appendix for consolidated financial statements)
Q1 2023 Highlights Three Months Ended March 31
2023 2022 % Change
Production
Silver ounces produced 1,623,545 1,314,955 23%
Gold ounces produced 9,342 8,695 7%
Payable silver ounces produced 1,608,212 1,303,540 23%
Payable gold ounces produced 9,184 8,549 7%
Silver equivalent ounces produced(1) 2,370,905 2,010,555 18%
Cash costs per silver ounce(2)(3) 11.12 10.21 9%
Total production costs per ounce(2)(4) 15.43 15.13 2%
All-in sustaining costs per ounce (2)(5) 20.16 20.90 (4%)
Processed tonnes 211,073 206,147 2%
Direct operating costs per tonne(2)(6) 132.11 122.86 8%
Direct costs per tonne (2)(6) 169.49 148.53 14%
Silver co-product cash costs (7) 14.93 15.18 (2%)
Gold co-product cash costs (7) 1,236 1,226 1%
Financial
Revenue ($ millions) 55.5 57.7 (4%)
Silver ounces sold 1,667,408 1,717,768 (3%)
Gold ounces sold 9,126 8,381 9%
Realized silver price per ounce 23.16 24.38 (5%)
Realized gold price per ounce 1,917 1,970 (3%)
Net earnings (loss) ($ millions) 6.5 11.7 (45%)
Adjusted net earnings (loss)(11)($ millions) 9.6 17.0 44%
Mine operating earnings ($ millions) 16.0 20.3 (21%)
Mine operating cash flow before taxes ($ millions)(8) 22.4 26.7 (16%)
Operating cash flow before working capital changes(9) 12.5 20.6 (39%)
EBITDA(10)($ millions) 19.4 25.6 (24%)
Working capital(12)($ millions) 92.8 168.4 (45%)
Shareholders
Earnings (loss) per share – basic ($) 0.03 0.07 (57%)
Adjusted earnings (loss) per share – basic ($)(11) 0.05 0.10 49%
Operating cash flow before working capital changes per share(9) 0.07 0.12 (45%)
Weighted average shares outstanding 190,274,768 171,557,220 11%
(1) Silver equivalent (AgEq) is calculated using an 80:1 silver:gold ratio.
(2) These are non-IFRS financial measures and ratios. Further details on these non-IFRS financial measures and ratios are
provided at the end of this press release and in the MD&A accompanying the Company’s financial statements, which can be
viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
For the three months ended March 31, 2023, revenue, net of $0.6 million of smelting and refining costs, decreased by 4% to
$55.5 million (Q1 2022: $57.7 million).
Gross sales of $56.1 million in Q1 2023 represented a 4% decrease over the $58.4 million in Q1 2022. Silver oz sold
decreased by 3%, due to a decrease in finished goods silver ounces available for sale as at December 31, 2022 compared to
December 31, 2021, offset by increased silver production. There was a 5% decrease in the realized silver price, resulting in
an 8% decrease in proceeds from silver sales. Gold oz sold increased by 9% with a 3% decrease in the realized gold price,
resulting in a 6% increase in proceeds from gold sales. During the period, the Company sold 1,667,408 oz silver and 9,126 oz
gold for realized prices of $23.16 and $1,917 per oz, respectively, compared to Q1 2022 sales of 1,717,768 oz silver and 8,381
oz gold for realized prices of $24.38 and $1,970 per oz, respectively. In Q1 2023, London spot prices for silver and gold
averaged $22.55 and $1,890, respectively.
The Company slightly decreased its finished goods silver inventory and slightly increased its finished goods gold inventory to
471,069 oz and 1,766 oz, respectively, at March 31, 2023 compared to 530,250 oz silver and 1,707 oz gold at December 31,
2022. The cost allocated to these finished goods was $7.4 million at March 31, 2023 compared to $6.1 million at December
31, 2022. At March 31, 2023, the finished goods inventory fair market value was $14.7 million, compared to $15.8 million at
December 31, 2022.
After cost of sales of $39.54 million (Q1 2022 - $37.4 million), an increase of 6%, mine operating earnings were $16.0 million
(Q1 2022 - $20.3 million). The cost of sales in Q1, 2023 was impacted by a strengthened Mexican peso, higher labour, power
and consumables costs as the Company, as well as the industry, has experienced significant inflationary pressures. The
Company also recognized increased royalty costs during Q1, 2023 compared to the prior period as a higher percentage of the
production at Guanacevi has come from the El Curso and El Porvenir concessions, which are subject to royalties.
The Company had operating earnings of $6.9 million (Q1 2022: $12.6 million) after exploration and evaluation costs of $4.2
million (Q1 2022: $3.2 million) and general and administrative costs of $4.9 million (Q1 2022: $4.3 million. Exploration and
evaluation costs increased primarily to additional spending on the recently acquired Pitarrilla project and general and
administrative costs increased primarily due to investment in a new ERP system.
Earnings before income taxes were $12.5 million (Q1 2022: $18.9 million) after finance costs of $0.4 million (Q1 2022: $0.3
million), a foreign exchange gain of $1.9 million (Q1 2022: $0.8 million), and investment and other income of $4.0 million (Q1
2022: $5.8 million). The increase in the foreign exchange gain is due to the strengthening of the Mexican peso which
increases the value of peso denominated working capital items. The investment and other income during Q1 2023 primarily
resulted from an unrealized gain on marketable securities and warrants of $3.1 million (Q1 2022: $5.4 million).
The Company realized net earnings for the period of $6.5 million (Q1 2022: $11.7 million) after an income tax expense of $6.1
million (Q1 2022: $7.2 million). Current income tax expense increased to $4.4 million (Q1 2022 - $1.0 million) and deferred
income taxes decreased to $1.7 million (Q1, 2022: $6.2 million).During 2022, the changes in current and deferred taxes were
driven primarily by the utilization of loss carryforwards at Guanacevi and during 2023 there were no further loss carryforwards
available to offset against current income tax and changes in deferred income taxes was primarily derived from changes in
temporary timing differences between deductions for accounting versus deductions for tax.
Direct operating costs (2) on a per tonne basis increased to $132.11, up 8% compared with Q1 2022 due to both a
strengthening of the Mexican peso and higher operating costs at both Guanaceví and Bolanitos from increased inflationary
pressure during 2022 and Q1 2023. As the Mexican peso strengthens, the Company’s Mexican peso denominated costs are
increased in US dollar terms. Guanaceví and Bolañitos have seen increased labour, power and consumable costs.
Consolidated cash costs per oz, net of by-product credits, increased to $11.12 primarily due to the higher direct costs per
tonne slightly offset by a higher gold credit driven by higher gold production compared to Q1 2022. AISC decreased by 4% on
a per oz basis compared to Q1 2022 as a result of costs being allocated over increased ounces produced which offset the
increased costs.
The complete financial statements and management’s discussion & analysis can be viewed on the Company’s website, on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All shareholders can receive a hard copy of the Company’s
complete audited financial statements free of charge upon request. To receive this material in hard copy, please contact
Galina Meleger, VP of Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or by email at [email protected]
Conference Call
A conference call to discuss the Company’s Q1 2023 financial results will be held today at 10:00 a.m. PT / 1:00 p.m. ET. To
participate in the conference call, please dial the numbers below.
Date & Time: Wednesday, May 10, 2023 at 10:00 a.m. PT / 1:00 p.m. ET
Telephone: Toll-free in Canada and the US +1-800-319-4610
Local or International +1-604-638-5340
Please allow up to 10 minutes to be connected to the conference call.
Replay: A replay of the conference call will be available by dialing (toll-free)
+1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US.
The replay passcode is 0037#. The replay will also be available on the Company’s website at
www.edrsilver.com.
About Endeavour Silver – Endeavour is a mid-tier precious metals mining company that operates two high-grade
underground silver-gold mines in Mexico. Endeavour is currently advancing construction of the Terronera project and exploring
its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a
premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information
Galina Meleger,
Vice President of Investor Relations
Tel: (877) 685 - 9775
Email: [email protected]
Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn
Endnotes
1 Silver equivalent (AgEq)
AgEq is calculated using an 80:1 silver:gold ratio.
2 Non-IFRS and Other Financial Measures and Ratios
Certain non-IFRS and other non-financial measures and ratios are included in this press release, including cash costs per
silver ounce, total production costs per ounce, all-in costs per ounce, all-in sustaining cost (“AISC”) per ounce, direct operating
costs per tonne, direct costs per tonne, silver co-product cash costs, gold co-product cash costs, realized silver price per
ounce, realized gold price per ounce, adjusted net earnings (loss) adjusted net earnings (loss) per share, mine operating cash
flow before taxes, working capital, operating cash flow before working capital adjustments, operating cash flow before working
capital changes per share, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA per
share and sustaining and growth capital.
Please see the March 31, 2023 MD&A for explanations and discussion of these non-IFRS and other non-financial measures
and ratios. The Company believes that these measures and ratios, in addition to conventional measures and ratios prepared in
accordance with International Financial Reporting Standards (“IFRS”), provide management and investors an improved ability to
evaluate the underlying performance of the Company. The non-IFRS and other non-financial measures and ratios are intended
to provide additional information and should not be considered in isolation or as a substitute for measures or ratios of
performance prepared in accordance with IFRS. These measures and ratios do not have any standardized meaning prescribed
under IFRS, and therefore may not be comparable to other issuers. Certain additional disclosures for these non-IFRS
measures have been incorporated by reference and can be found in the section “Non-IFRS Measures” in the March 31, 2023
MD&A available on SEDAR at www.sedar.com.
Reconciliation of Working Capital
Expressed in thousands US dollars As at March 31, 2023 As at December 31, 2022
Current assets $138,862 $146,333
Current liabilities 46,049 52,749
Working capital $92,813 $93,584
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands US dollars Three Months Ended March 31
(except for share numbers and per share amounts) 2023 2022
Net earnings (loss) for the period per financial statements $6,456 $11,662
Change in fair value of investments 3,097 5,357
Adjusted net earnings (loss) $9,553 $17,019
Basic weighted average share outstanding 190,274,768 171,557,220
Adjusted net earnings (loss) per share $0.05 $0.10
Reconciliation of Mine Operating Cash Flow Before Taxes
Expressed in thousands US dollars Three Months Ended March 31
2023 2022
Mine operating earnings per financial statements $16,025 $20,269
Share-based compensation 132 127
Amortization and depletion 6,253 6,306
Mine operating cash flow before taxes $22,410 $26,702
Reconciliation of Operating Cash Flow Before Working Capital Changes and Operating
Cash Flow Before Working Capital Changes Per Share
Expressed in thousands US dollars Three Months Ended March 31
(except for per share amounts) 2023 2022
Cash from (used in) operating activities per financial statements ($401) $21,733
Net changes in non-cash working capital per financial statements (12,902) 1,114
Operating cash flow before working capital changes $12,501 $20,619
Basic weighted average shares outstanding 190,274,768 171,557,220
Operating cash flow before working capital changes per share $0.07 $0.12
Reconciliation of EBITDA and Adjusted EBITDA
Expressed in thousands US dollars Three Months Ended March 31
2023 2022
Net earnings (loss) for the period per financial statements $6,456 $11,662
Depreciation and depletion – cost of sales 6,253 6,306
Depreciation and depletion – exploration 278 107
Depreciation and depletion – general & administration 62 48
Depreciation and depletion – care & maintenance - 30
Finance costs 259 177
Current income tax expense 4,445 1,015
Deferred income tax expense 1,676 6,222
EBITDA $19,429 $25,567
Share based compensation 1,625 1,527
Change in fair value of investments 3,097 5,357
Adjusted EBITDA $24,151 $32,451
Basic weighted average shares outstanding 190,274,768 171,557,220
Adjusted EBITDA per share $0.13 $0.19
Reconciliation of Cash Cost Per Silver Ounce, Total Production Costs Per Ounce, Direct Operating Costs Per Tonne, Direct
Costs Per Tonne
Expressed in thousands US dollars
Three Months Ended March 31,
2023
Three Months Ended March 31,
2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Direct production costs per financial
statements 18,145 8,371 26,516 17,884 8,837 26,721
Smelting and refining costs included in net
revenue - 656 656 - 654 654
Opening finished goods (4,953) (245) (5,198) (10,093) (2,857) (12,950)
Closing finished goods 4,848 1,063 5,911 7,908 2,995 10,903
Direct operating costs 18,040 9,845 27,885 15,699 9,629 25,328
Royalties 6,471 64 6,535 4,234 83 4,317
Special mining duty (1) 1,270 85 1,355 731 244 975
Direct costs 25,781 9,994 35,775 20,664 9,956 30,620
By-product gold sales (8,433) (9,064) (17,497) (5,022) (11,488) (16,510)
Opening gold inventory fair market value 2,740 354 3,094 1,900 4,784 6,684
Closing gold inventory fair market value (2,500) (995) (3,495) (3,724) (3,763) (7,487)
Cash costs net of by-product 17,588 289 17,877 13,818 (511) 13,307
Amortization and depletion 3,474 2,779 6,253 3,910 2,396 6,306
Share-based compensation 66 66 132 63 64 127
Opening finished goods depreciation and
depletion (862) (60) (922) (1,965) (635) (2,600)
Closing finished goods depreciation and
depletion 1,115 355 1,470 1,689 897 2,586
Total production costs $21,381 $3,429 $24,810 $17,515 $2,211 $19,726
Three Months Ended March 31,
2023
Three Months Ended March 31,
2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Throughput tonnes 102,375 108,698 211,073 101,253 104,894 206,147
Payable silver ounces 1,435,604 172,608 1,608,212 1,130,448 173,092 1,303,540
Cash costs per silver ounce $12.25 $1.67 $11.12 $12.22 ($2.95) $10.21
Total production costs per ounce $14.89 $19.87 $15.43 $15.49 $12.77 $15.13
Direct operating costs per tonne $176.21 $90.57 $132.11 $155.05 $91.80 $122.86
Direct costs per tonne $251.83 $91.94 $169.49 $204.08 $94.91 $148.53
Expressed in thousands US dollars March 31, 2023 March 31, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Closing finished goods 4,848 1,063 5,911 7,908 2,995 10,903
Closing finished goods depletion 1,115 355 1,470 1,689 897 2,586
Finished goods inventory $5,963 $1,418 $7,381 $9,597 $3,892 $13,489
Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars Three Months Ended March 31, 2023 Three Months Ended March 31, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Cash costs net of by-product $17,588 $289 $17,877 $13,818 ($511) $13,307
Operations share-based compensation 66 66 132 63 64 127
Corporate general and administrative 2,616 878 3,494 2,067 876 2,943
Corporate share-based compensation 1,019 342 1,361 917 389 1,306
Reclamation - amortization/accretion 79 62 141 65 53 118
Mine site expensed exploration 379 313 692 352 250 602
Intangible payments - - - 29 12 41
Equipment loan payments 245 487 732 245 489 734
Capital expenditures sustaining 5,690 2,301 7,991 5,646 2,426 8,072
All-In-Sustaining Costs $27,682 $4,738 $32,420 $23,202 $4,048 $27,250
Growth exploration and evaluation 3,063 2,413
Growth capital expenditures 12,726 4,925
All-In-Costs $48,209 $34,588
Three Months Ended March 31, 2023 Three Months Ended March 31, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Throughput tonnes 102,375 108,698 211,073 101,253 104,894 206,147
Payable silver ounces 1,435,604 172,608 1,608,212 1,130,448 173,092 1,303,540
Silver equivalent production (ounces) 1,774,964 595,941 2,370,905 1,412,010 598,545 2,010,555
Sustaining cost per ounce $19.28 $27.45 $20.16 $20.52 $23.39 $20.90
All-In-costs per ounce $29.98 $26.53
Expressed in thousands US dollars Three Months Ended March 31
2023 2022
Mine site expensed exploration $692 $602
Growth exploration and evaluation 3,063 2,413
Total exploration and evaluation 3,755 3,015
Exploration depreciation and depletion 278 107
Exploration share-based compensation 131 94
Exploration and evaluation expense $4,164 $3,216
Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands US dollars Three Months Ended March 31
2023 2022
Capital expenditures sustaining $7,991 $8,072
Growth capital expenditures 12,726 4,925
Property, plant and equipment expenditures per Consolidated Statement of Cash Flows $20,717 $12,997
Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
Expressed in thousands US dollars Three Months Ended March 31,
2023
Three Months Ended March 31,
2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Direct production costs per financial
statements $18,145 $8,371 $26,516 $17,884 $8,837 $26,721
Smelting and refining costs included in net
revenue - 656 656 - 654 654
Royalties 6,471 64 6,535 4,234 83 4,317
Special mining duty (1) 1,270 85 1,355 731 244 975
Opening finished goods (4,953) (245) (5,198) (10,093) (2,857) (12,950)
Closing finished goods 4,848 1,063 5,911 7,908 2,995 10,903
Direct costs $25,781 $9,994 $35,775 $20,664 $9,956 $30,620
Three Months Ended March 31,
2023
Three Months Ended March 31,
2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Silver production (ounces) 1,439,924 183,621 1,623,545 1,133,850 181,105 1,314,955
Average realized silver price ($) 23.16 23.16 23.16 24.38 24.38 24.38
Silver value ($) 33,351,084 4,252,974 37,604,058 27,643,263 4,415,340 32,058,603
Gold production (ounces) 4,188 5,154 9,342 3,477 5,218 8,695
Average realized gold price ($) 1,917 1,917 1,917 1,970 1,970 1,970
Gold value ($) 8,029,524 9,881,606 17,911,130 6,849,690 10,279,460 17,129,150
Total metal value ($) 41,380,608 14,134,580 55,515,189 34,492,953 14,694,800 49,187,753
Pro-rated silver costs (%) 81% 30% 68% 80% 30% 65%
Pro-rated gold costs (%) 19% 70% 32% 20% 70% 35%
Pro-rated silver costs ($) 20,778 3,007 24,233 16,560 2,991 19,957
Pro-rated gold costs ($) 5,003 6,987 11,542 4,104 6,965 10,663
Silver co-product cash costs ($) 14.43 16.38 14.93 14.61 16.52 15.18
Gold co-product cash costs ($) 1,194 1,356 1,236 1,180 1,335 1,226
Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce
Expressed in thousands US dollars Three Months Ended March 31
2023 2022
Gross silver sales $38,620 $41,884
Silver ounces sold 1,667,408 1,717,768
Realized silver price per ounces $23.16 $24.38
Expressed in thousands US dollars Three Months Ended March 31
2023 2022
Gross gold sales $17,497 $16,510
Gold ounces sold 9,126 8,381
Realized gold price per ounces $1,917 $1,970
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States private securities litigation
reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such
forward-looking statements and information herein include but are not limited to statements regarding the development and
financing of the Terronera Project, including anticipated terms and timing of the Debt Facility, estimated Project economics,
Terronera’s forecasted operations, costs and expenditures, and the timing and results of various activities. The Company does
not intend to and does not assume any obligation to update such forward-looking statements or information, other than as
required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, production levels, performance or achievements of Endeavour and its operations to be
materially different from those expressed or implied by such statements. Such factors include but are not limited to the
completion of Societe Generale’s and ING’s due diligence requirements; the final terms of the Debt Facility and the
Company’s ability to successfully drawdown under the Debt Facility; the ongoing effects of inflation and supply chain issues
on Project economics; national and local governments, legislation, taxation, controls, regulations and political or economic
developments in Canada and Mexico; financial risks due to precious metals prices; operating or technical difficulties in
mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the
speculative nature of mineral exploration and development; risks in obtaining necessary licenses and permits; and challenges
to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the
Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to:
the ability of the Company to successfully secure a debt facility, the continued operation of the Company’s mining operations,
no material adverse change in the market price of commodities, the Project’s forecasted economics as of 2023, mining
operations will operate and the mining products will be completed in accordance with management’s expectations and achieve
their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has
attempted to identify important factors that could cause actual results to differ materially from those contained in forward-
looking statements or information, there may be other factors that cause results to be materially different from those
anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or
information will prove to be accurate as actual results and future events could differ materially from those anticipated in such
statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
Appendix
ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited – prepared by management)
(expressed in thousands of US dollars, except for shares and per share amounts)
Three months ended
March 31, March 31,
2023 2022
Revenue $ 55,461 $ 57,740
Cost of sales:
Direct production costs 26,516 26,721
Royalties 6,535 4,317
Share-based payments 132 127
Depreciation, depletion and amortization 6,253 6,306
39,436 37,471
Mine operating earnings 16,025 20,269
Expenses:
Exploration and evaluation 4,164 3,216
General and administrative 4,917 4,297
Care and maintenance costs - 190
9,081 7,703
Operating earnings 6,944 12,566
Finance costs 400 298
Other income (expense):
Foreign exchange gain (loss) 1,889 811
Gain on asset disposal 62 -
Investment and other 4,082 5,820
6,033 6,631
Earnings before income taxes 12,577 18,899
Income tax expense:
Current income tax expense 4,445 1,015
Deferred income tax expense 1,676 6,222
6,121 7,237
Net earnings and comprehensive earnings for the period $ 6,456 $ 11,662
Basic earnings per share based on net earnings $ 0.03 $ 0.07
Diluted earnings per share based on net earnings $ 0.03 $ 0.07
Basic weighted average number of shares outstanding 190,274,768 171,557,220
Diluted weighted average number of shares outstanding 192,295,971 174,438,202
ENDEAVOUR SILVER CORP.