Endeavour Silver Announces Q1 2024 Financial Results; Earnings Call at 10AM PDT (1PM EDT) Today
Endeavour Silver Announces Q1 2024 Financial Results; Earnings Call at 10AM
PDT (1PM EDT) Today
VANCOUVER, British Columbia, May 09, 2024 -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE:
EXK; TSX: EDR) announces its financial and operating results for the three months ended March 31, 2024. All dollar amounts
are in US dollars ($).
“We are pleased to report a solid start to the year with consolidated production and operating costs meeting expectations,”
stated Dan Dickson, CEO of Endeavour Silver. “Guanacevi continues to perform well, generating operating cash flow which we
are reinvesting in the business. The higher precious metal prices will further enhance our cash flow, as we advance Terronera
towards commissioning in late 2024.”
Q1 2024 Highlights
• Production Tracking Towards Upper Range of Guidance: 1,460,006 ounces (oz) of silver and 10,133 oz of gold for
2.3 million oz silver equivalent (AgEq)(1).
• Strong Revenue from Higher Realized Prices : $63.7 million from the sale of 1,756,094 oz of silver and 10,880 oz of
gold at average realized prices of $23.47 per oz silver and $2,114 per oz gold.
• Cash Flow: $10.2 million in operating cash flow before working capital changes(2), a decrease of 18% from Q1 2023.
• Operating Costs: Cash costs (2) of $13.19 per oz payable silver and all-in sustaining costs(2) of $21.44 per oz payable
silver, net of gold credits. Cash costs (2) and all-in sustaining costs were below guidance mostly due to a higher gold by-
product credit.
• Balance Sheet: Cash position of $34.9 million and working capital(2) of $56.4 million. Cash decreased as funds were
spent on development activities at Terronera. The Company raised gross proceeds of $38.9 million through issuances,
primarily to fund the activities at Terronera.
• Drawdown on Terronera Senior Secured Debt Facility: Subsequent to quarter end, the company announced the
first drawdown of $60 million of the $120 million senior secured debt facility and executed hedge contract terms (see
news release dated April 10, 2024).
• Construction Continues on Schedule at the Terronera Mine: Overall project progress reached 53% and the project
remains on track for commissioning in Q4 2024. Construction activities are advancing with a focus on mechanical and
vertical installation (see news release dated April 23, 2024).
Financial Overview
Q1 2024 Highlights Three Months Ended March 31
2024 2023 % Change
Production
Silver ounces produced 1,460,006 1,623,545 (10%)
Gold ounces produced 10,133 9,342 8%
Payable silver ounces produced 1,450,308 1,608,212 (10%)
Payable gold ounces produced 9,948 9,184 8%
Silver equivalent ounces produced(1) 2,270,677 2,370,905 (4%)
Cash costs per silver ounce(2) 13.19 11.12 19%
Total production costs per ounce(2)) 18.90 15.43 23%
All-in sustaining costs per ounce (2) 21.44 20.16 6%
Processed tonnes 221,794 211,073 5%
Direct operating costs per tonne(2) 145.75 132.11 10%
Direct costs per tonne (2) 181.77 169.49 7%
Financial
Revenue ($ millions) 63.7 55.5 15%
Silver ounces sold 1,756,094 1,667,408 5%
Gold ounces sold 10,880 9,126 19%
Realized silver price per ounce 23.47 23.16 1%
Realized gold price per ounce 2,114 1,917 10%
Net earnings (loss) ($ millions) (1.2) 6.5 (118%)
Adjusted net earnings (loss) ($ millions) (2) (0.2) 4.5 (104%)
Mine operating earnings ($ millions) 11.7 16.0 (27%)
Mine operating cash flow before taxes ($ millions)(2) 20.6 22.4 (8%)
Operating cash flow before working capital changes(2) 10.2 12.5 (18%)
EBITDA ($ millions)(2) 13.5 19.4 (30%)
Working capital ($ millions) (2) 56.4 92.8 (39%)
Shareholders
Earnings (loss) per share – basic ($) (0.01) 0.03 (133%)
Adjusted earnings (loss) per share – basic ($)(2) (0.00) 0.02 (100%)
Operating cash flow before working capital changes per share(2) 0.04 0.07 (43%)
Weighted average shares outstanding 227,503,581 190,274,768 20%
(1)
Silver equivalent (AgEq) is calculated using an 80:1 Ag:Au 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.sedarplus.com and on EDGAR at
www.sec.gov .
For the three months ended March 31, 2024, revenue, net of $0.5 million of smelting and refining costs, increased by 15% to
$63.7 million (Q1 2023: $55.5 million).
Gross sales of $64.2 million in Q1 2024 represented a 14% increase over the $56.1 million in Q1 2023. Silver oz sold
increased by 5%, driven by a net decrease in finished goods silver ounces available for sale as at March 31, 2024, compared
to December 31, 2023, offset by lower silver production. There was a 1% increase in the realized silver price, together with the
higher silver oz sold resulting in an 7% increase in gross silver revenue. Gold oz sold increased by 19% with a 10% increase
in the realized gold price, resulting in a 31% increase in gross gold revenue. During the period, the Company sold 1,756,094
oz silver and 10,880 oz gold for average realized prices of $23.47 and $2,114 per oz, respectively, compared to Q1 2023 sales
of 1,667,408 oz silver and 9,126 oz gold for average realized prices of $23.16 and $1,917 per oz, respectively. In Q1 2024,
London spot prices for silver and gold averaged $23.36 and $2,072, respectively.
After cost of sales of $52.1 million (Q1 2023 - $39.5 million), an increase of 32%, mine operating earnings were $11.7 million
(Q1 2023 - $16.0 million). The cost of sales in Q1 2024 was impacted by higher labour, power and consumables costs as the
Company continued to experience inflationary pressures. . Additionally direct costs were impacted by lower grades in
Guanaceví compared to Q1 2023, and higher depreciation costs.
The Company had operating earnings of $3.3 million (Q1 2023: $6.9 million) after exploration and evaluation costs of $4.3
million (Q1 2023: $4.2 million) and general and administrative costs of $4.0 million (Q1 2023: $4.9 million). Exploration and
evaluation costs were consistent with the same period in 2023, and related primarily to costs for Terronera that are not eligible
for capitalization as a cost of building the project, such as social, environmental and management oversight. Exploration costs
were also incurred at the Pitarrilla project and, to a lesser extent, brownfields exploration at Bolanitos and desktop evaluation
work at Guanacevi. General and administrative costs decreased primarily due to investment in a new ERP system during
2023.
Earnings before income taxes were $4.2 million (Q1 2023: $12.5 million) after finance costs of $0.3 million (Q1 2023: $0.4
million), a foreign exchange gain of $1.2 million (Q1 2023: $1.9 million), and investment and other income of $0.0 million (Q1
2023: $4.0 million). The decrease in earnings before income taxes was driven by the unrealized gain on marketable securities
and warrants of $3.1 million recorded in the 2023 comparative period compared to $0.9 million unrealized gain in Q1 2024.
The Company realized net loss for the period of $1.2 million (Q1 2023: net earnings $6.5 million) after an income tax expense
of $5.4 million (Q1 2023: $6.1 million). Current income tax expense increased to $5.6 million (Q1 2023 - $4.4 million) and
deferred income tax recovery of $0.2 million (Q1 2023: deferred tax expense of $1.7 million). Taxable profits are incurred at
Guanacevi and changes in deferred income taxes are 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 $145.75, up 10% compared with Q1 2023 due to higher operating
costs at Guanaceví from ongoing ventilation and water management challenges affecting productivity, as well as ongoing
inflationary pressure on costs.
Consolidated cash costs per oz, net of by-product credits, increased to $13.19 primarily due to the higher direct costs per
tonne, lower grade achieved at Guanaceví offset by a higher gold credit driven by higher gold production and gold sale price
compared to Q1 2023. AISC increased by 6% on a per oz basis compared to Q1 2023 as a result of costs being allocated
over fewer ounces produced, offset in part by lower sustaining capex.
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
Management will host a conference call to discuss the Company’s Q1 2024 financial results today at 1:00pm Eastern time
(EDT).
Date: Thursday, May 9, 2024
Time: 10:00am Pacific (PDT) / 1:00pm Eastern (EDT)
Telephone: Canada & US +1-844-763-8274
International +1-647-484-8814
Replay: Canada & US +1-604-674-8052
International +1-855-669-9658
Passcode is 0771#; audio replay will be available on Company’s website
Outside of Canada and the U.S.A., 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 company with a strong commitment to sustainable and
responsible mining practices. With operations in Mexico and the development of the new cornerstone mine in Jalisco state,
the company aims to contribute positively to the mining industry and the communities in which it operates. In addition,
Endeavour has a portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a
premier senior silver producer.
Contact Information
Galina Meleger, VP of Investor Relations
Tel: (877) 685 - 9775
Email: [email protected]
Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, X, Instagram and LinkedIn
Endnotes
1 Silver equivalent (AgEq)
AgEq is calculated using an 80:1 Ag:Au 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, 2024 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, 2024
MD&A available on SEDAR at www.sedar.com.
Reconciliation of Working Capital
Expressed in thousands US dollars As at March 31, 2024 As at December
31, 2023
Current assets $111,769 $100,773
Current liabilities 55,357 58,244
Working capital $56,412 $42,529
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands of US dollars Three months ended March 31
(except for share numbers and per share amounts) 2024 2023
Net earnings (loss) for the period per financial statements ($1,194) $6,456
Unrealized foreign exchange loss 136 1,095
Change in fair value of investments 861 (3,097)
Adjusted net earnings (loss) ($197) $4,454
Basic weighted average share outstanding 227,503,581 190,274,768
Adjusted net earnings (loss) per share ($0.00) $0.02
Reconciliation of Mine Operating Cash Flow Before Taxes
Expressed in thousands of US dollars Three Months Ended March 31
2024 2023
Mine operating earnings per financial statements $11,656 $16,025
Share-based compensation 79 132
Amortization and depletion 8,877 6,253
Mine operating cash flow before taxes $20,612 $22,410
Reconciliation of Operating Cash Flow Before Working Capital Changes and Operating Cash Flow Before Working Capital
Changes Per Share
Expressed in thousands of US dollars Three Months Ended March 31
(except for per share amounts) 2024 2023
Cash from (used in) operating activities per financial statements $4,583 ($401)
Net changes in non-cash working capital per financial statements (5,651) (12,902)
Operating cash flow before working capital changes $10,234 $12,501
Basic weighted average shares outstanding 227,503,581 190,274,768
Operating cash flow before working capital changes per share $0.04 $0.07
Reconciliation of EBITDA and Adjusted EBITDA
Expressed in thousands of US dollars Three Months Ended March 31
2024 2023
Net earnings (loss) for the period per financial statements $1,194 $6,456
Depreciation – cost of sales 8,877 6,253
Depreciation – exploration 159 278
Depreciation – general & administration 99 62
Finance costs 135 259
Current income tax expense 5,667 4,445
Deferred income tax expense (recovery) (233) 1,676
EBITDA $13,510 $19,429
Share based compensation 1,170 1,625
Unrealized foreign exchange loss 136 1,096
Change in fair value of investments 861 (3,097)
Adjusted EBITDA $15,677 $19,052
Reconciliation of Cash Cost Per Silver Ounce, Total Production Costs Per Ounce, Direct Operating Costs Per Tonne, Direct
Costs Per Tonne
Three Months Ended March 31, 2024 Three Months Ended March 31,
2023
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Direct production costs per financial
statements $26,886 $9,819 $36,705 $18,145 $8,371 $26,516
Smelting and refining costs included in
net revenue - 493 493 - 656 656
Opening finished goods (7,137) (699) (7,836) (4,953) (245) (5,198)
Closing finished goods 2,314 651 2,965 4,848 1,063 5,911
Direct operating costs 22,063 10,264 32,327 18,040 9,845 27,885
Royalties 6,332 76 6,408 6,471 64 6,535
Special mining duty (1) 1,521 60 1,581 1,270 85 1,355
Direct costs 29,916 10,400 40,316 25,781 9,994 35,775
By-product gold sales (10,731) (12,265) (22,996) (8,433) (9,064) (17,497)
Opening gold inventory fair market value 2,909 619 3,528 2,740 354 3,094
Closing gold inventory fair market value (871) (815) (1,722) (2,500) (995) (3,495)
Cash costs net of by-product 21,223 (2,097) 19,126 17,588 289 17,877
Depreciation 5,815 3,062 8,877 3,474 2,779 6,253
Share-based compensation 62 17 79 66 66 132
Opening finished goods depreciation (1,459) (197) (1,656) (862) (60) (922)
Closing finished goods depreciation 770 219 989 1,115 355 1,470
Total production costs $26,411 $1,004 $27,415 $21,381 $3,429 $24,810
Three Months Ended March 31, 2024 Three Months Ended March 31, 2023
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Throughput tonnes 115,004 106,790 221,794 102,375 108,698 211,073
Payable silver ounces 1,331,735 118,573 1,450,308 1,435,604 172,608 1,608,212
Cash costs per silver ounce $15.94 ($17.69) $13.19 $12.25 $1.67 $11.12
Total production costs per ounce $19.83 $8.47 $18.90 $14,89 $19.87 $15.43
Direct operating costs per tonne $191.85 $96.11 $145.75 $176.21 $90.57 $132.11
Direct costs per tonne $260.13 $97.39 $181.77 $251.83 $91.94 $169.49
Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars Three Months Ended March 31, 2024 Three Months Ended March 31, 2023
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Cash costs net of by-product $21,223 ($2,097) $19,126 $17,588 $289 $17,877
Operations share-based compensation 62 17 79 66 66 132
Corporate general and administrative 2,204 801 3,005 2,616 878 3,494
Corporate share-based compensation 690 250 940 1,019 342 1,361
Reclamation - amortization/accretion 102 77 179 79 62 141
Mine site expensed exploration 122 314 436 379 313 692
Equipment loan payments 128 220 348 245 487 732
Capital expenditures sustaining 4,716 2,266 6,982 5,690 2,301 7,991
All-In-Sustaining Costs $29,247 $1,848 $31,095 $27,682 $4,738 $32,420
Growth exploration and evaluation 3,524 3,063
Growth capital expenditures 37,905 12,726
All-In-Costs $72,524 $48,209
Three Months Ended March 31, 2024 Three Months Ended March 31, 2023
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Throughput tonnes 115,004 106,790 221,794 102,375 108,698 211,073
Payable silver ounces 1,331,735 118,573 1,450,308 1,435,604 172,608 1,608,212
Silver equivalent production (ounces) 1,665,648 605,028 2,270,677 1,774,964 595,941 2,370,905
All-In Sustaining Cost per ounce $21.96 $15.59 $21.44 $19.28 $27.45 $20.16
Expressed in thousands of US dollars Three Months Ended March 31
(except for per share amounts) 2024 2023
Mine site expensed exploration $436 $692
Growth exploration and development 3,524 3,063
Total exploration and development $3,960 $3,755
Exploration and development depreciation 159 278
Exploration and development share-based compensation 151 131
Exploration and development expense $4,270 $4,164
Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands of US dollars Three Months Ended March 31
(except for per share amounts) 2024 2023
Capital expenditures sustaining $6,982 $7,991
Growth capital expenditures 37,905 12,726
Property, plant and equipment per Condensed Consolidated Interim Statement
of Cashflow $44,887 $20,717
Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce
Expressed in thousands of US dollars Three Months Ended March 31
(except for per share amounts) 2024 2023
Gross silver sales $41,222 $38,620
Silver ounces sold 1,756,094 1,667,408
Realized silver price per ounces $23.47 $23.16
Expressed in thousands of US dollars Three Months Ended March 31
(except for per share amounts) 2024 2023
Gross gold sales 22,996 $17,497
Gold ounces sold 10,880 9,126
Realized gold price per ounces $2,114 $1,917
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 timing of the project; the Company’s ability to further drawdown on the
Debt Facility, estimated project economics, Terronera’s forecasted operations, costs and expenditures, and the timing and
results of various related activities, Endeavour’s anticipated performance in 2024 including changes in mining operations and
forecasts of production levels, anticipated production costs and all-in sustaining costs 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 changes in
production and costs guidance; the ongoing effects of inflation and supply chain issues on mine 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; satisfaction of conditions precedent to drawdown under the
Debt Facility; the ongoing effects of inflation and supply chain issues on the Terronera Project economics; fluctuations in the
prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Chilean peso, Canadian dollar
and U.S. dollar); 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 continued operation of the Company’s mining operations, no material adverse change in the market price of commodities,
forecasted mine economics as of 2024, 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.