Endeavour Silver Announces Q2 2023 Financial Results; Earnings Call at 10AM PDT (1PM EDT) Today
Endeavour Silver Announces Q2 2023 Financial Results; Earnings Call at 10AM
PDT (1PM EDT) Today
VANCOUVER, British Columbia, Aug. 08, 2023 -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE:
EXK; TSX: EDR) is pleased to announce its financial and operating results for the three and six months ended June 30, 2023.
All dollar amounts are in US dollars (US$).
“While we have been successful at managing the inflation trend over the last two years, costs are now outpacing our mitigation
efforts. The Mexican Peso has strengthened to a seven year high against the US dollar, which is impacting costs across our
operations,” stated Dan Dickson, Chief Executive Officer. “Originally, our 2023 guidance had assumed a 20:1 Mexican Peso
per US dollar exchange rate; however the current rate is just under 17:1; representing a 14% increase. Our bottom line has
been impacted two-fold, through both inflation and foreign exchange. Cost control will continue to be a key focus for the
operations group as cost pressures are expected to continue for the remainder of the year.”
Q2 2023 Highlights
• Production Tracking In-Line with Guidance: 1,494,000 ounces (oz) of silver and 9,819 oz of gold for 2.3 million oz
silver equivalent (AgEq)(1) totalling 4.7 million oz AgEq for the first half of the year.
• Revenue : $50.0 million from the sale of 1,299,672 oz of silver and 9,883 oz of gold at average realized prices of $24.13
per oz silver and $1,976 per oz gold.
• Cash Flow : $11.1 million in operating cash flow before working capital changes (2) and $18.8 million in Mine operating
cash flow before taxes(2) .
• Negative Earnings due to Non-Cash Item : Net loss of $1.1 million, or $0.01 per share. Adjusted earnings of $2.1
million(2) after adjusting for a $3.2 million change in the fair value of investments.
• Higher Costs Due to Strengthened Peso and Industry-Wide Inflation: Cash costs (2) of $13.52 per oz payable silver
and all-in sustaining costs (2) of $22.15 per oz payable silver, net of gold credits. Costs were impacted by both
inflationary pressures and a strengthened Mexican Peso. During the year, the Mexican Peso has appreciated by 14%.
Cash cost and all-in-sustaining costs metrics were also impacted by lower silver grades at Guanacevi due to changes
in mine sequencing. It is expected that grades will return to plan in Q3.
• Management Continues to Monitor Macroeconomic Conditions Closely: Management anticipates these macro
trends will continue for the near term and therefore expects actual cost metrics to be higher than cost metrics
previously provided in the Company’s 2023 guidance. Management anticipates costs to align to similar levels with H1
2023 actual cost metrics of $12.27 per oz for cash cost and $21.11 per oz for AISC.
• Healthy Balance Sheet: Cash position of $43.5 million and working capital (2) of $78.2 million. Cash decreased as
funds were spent on development activities at Terronera.
• Metal Inventory : Finished goods totaled 637,439 oz silver and 1,519 oz gold bullion inventory.
• Construction and Development Update at Terronera : The Company has made significant progress on development
activities, with overall construction progress 30% complete. The project remains on schedule for initial production in Q4
2024. (see news release dated July 20, 2023)
• Terronera Debt Financing: Completion of the definitive loan documentation for the $120 million senior secured debt
facility remains on track for execution in Q3 (see news release dated April 18, 2023).
• Filed At-The-Market Prospectus Supplement for up to US$60 million : Proceeds to be used for funding
development of the Terronera mine, and other growth initiatives including the Pitarrilla and Parral properties as well as
prospective acquisitions and general working capital purposes (see news release dated June 27, 2023)
Financial Overview (see appendix for consolidated financial statements)
Three Months Ended June 30
Q2 2023 Highlights
Six Months Ended June 30
2023 2022
%
Change 2023 2022
%
Change
Production
1,494,000 1,359,207 10% Silver ounces produced 3,117,545 2,674,162 17%
9,819 9,289 6% Gold ounces produced 19,161 17,984 7%
1,482,255 1,346,276 10% Payable silver ounces produced 3,090,467 2,649,816 17%
9,636 9,117 6% Payable gold ounces produced 18,820 17,666 7%
2,279,520 2,102,327 8% Silver equivalent ounces produced(1) 4,650,425 4,112,882 13%
13.52 10.08 34% Cash costs per silver ounce(2)(3) 12.27 10.14 21%
18.54 14.26 30% Total production costs per ounce(2)(4) 16.92 14.69 15%
22.15 19.56 13% All-in sustaining costs per ounce (2)(5) 21.11 20.22 4%
228,575 201,361 14% Processed tonnes 439,648 407,508 8%
138.16 132.63 4% Direct operating costs per tonne(2)(6) 135.26 127.69 6%
169.59 148.11 15% Direct costs per tonne (2)(6) 169.54 148.32 14%
16.96 14.12 20% Silver co-product cash costs (7) 15.90 14.74 8%
1,367 1,144 19% Gold co-product cash costs (7) 1,303 1,169 11%
Financial
50.0 30.8 62% Revenue ($ millions) 105.5 88.5 19%
1,299,672 602,894 116% Silver ounces sold 2,967,080 2,320,662 28%
9,883 9,792 1% Gold ounces sold 19,009 18,173 5%
24.27 22.72 7% Realized silver price per ounce 23.65 23.95 (1%)
1,955 1,840 6% Realized gold price per ounce 1,937 1,900 2%
(1.1) (11.9) 91% Net earnings (loss) ($ millions) 5.4 (0.3) 2170%
2.1 (4.3) 149% Adjusted net earnings (loss) (11) ($ millions) 5.5 2.0 172%
12.5 4.5 180% Mine operating earnings ($ millions) 28.6 24.7 15%
18.8 8.8 115%
Mine operating cash flow before taxes ($ millions)
(8) 41.3 35.5 16%
11.5 3.6 207%
Operating cash flow before working capital
changes(9) 23.6 24.2 (3%)
11.4 (4.3) 365% EBITDA(10) ($ millions) 30.8 21.3 45%
78.2 149.7 (48%) Working capital (12) ($ millions) 78.2 149.7 (48%)
Shareholders
(0.01) (0.07) 86% Earnings (loss) per share – basic ($) 0.03 0.00 100%
0.01 (0.02) 146% Adjusted earnings (loss) per share – basic ($)(11) 0.03 0.01 151%
0.06 0.02 190%
Operating cash flow before working capital
changes per share(9) 0.12 0.14 (10%)
191,446,597 180,974,609 6% Weighted average shares outstanding 190,867,192176,291,929 8%
(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 June 30, 2023, revenue, increased by 62% to $50.0 million (Q2 2022: $30.8 million).
Gross sales of $50.9 million in Q2 2023 represented a 61% increase over the $31.7 million in Q2 2022. Silver oz sold
increased 116% due to both increased production and the impact of withholding of a significant amount of silver finished goods
inventory during Q2, 2022. There was a 7% increase in the realized silver price resulting in a 131% increase in proceeds from
silver sales. Gold oz sold increased 1% with a 6% increase in realized gold prices resulting in a 7% increase in proceeds from
gold sales. During Q2, 2023 the Company sold 1,299,672 oz silver and 9,883 oz gold, for realized prices of $24.27 and $1,955
per oz, respectively, compared to sales of 602,894 oz silver and 9,792 oz gold, for realized prices of $22.72 and $1,840 per oz,
respectively, in the same period of 2022. In Q2, 2023, London spot prices averaged $24.13 and $1,976, respectively
The Company increased its finished goods to 637,439 oz silver and slightly decreased its finished goods gold inventory to
1,519 oz gold at June 30, 2023 compared to 530,250 oz silver and 1,707 oz gold at December 31, 2022. The cost allocated to
these finished goods was $13.8 million as at June 30, 2023, compared to $7.4 million at March 31, 2023. At June 30, 2023,
the finished goods inventory fair market value was $17.6 million, compared to $14.7 million at March 31, 2023.
After cost of sales of $37.5 million (Q2 2022 - $26.3 million), an increase of 43%, mine operating earnings were $12.5 million
(Q2 2022 - $4.5 million). The increase in the cost of sales compared to the prior period was driven by significantly higher silver
ounces sold in the current period, a strengthened Mexican peso and higher labour, power and consumables costs as the
Company, as well as the industry, has experienced significant inflationary pressures. Additionally, the Company incurred
increased royalty costs during Q2, 2023 compared to the prior period,
The Company had operating earnings of $5.4 million (Q2 2022: operating loss of $1.3 million) after exploration and evaluation
costs of $4.3 million (Q2 2022: $3.8 million), general and administrative costs of $2.4 million (Q2 2022: $1.3 million) and a
write off of exploration properties of $0.4 million (Q2, 2022 - $0.5 million).
Earnings before income taxes was $4.2 million (Q2 2022: loss before taxes of $8.8 million) after finance costs of $0.4 million
(Q2 2022: $0.3 million), a foreign exchange gain of $1.9 million (Q2 2022: loss of $0.3 million), and investment and other
expense of $2.7 million (Q2 2022: $6.9 million). The investment and other expenses during Q2 2023 primarily resulted from an
unrealized loss on marketable securities and warrants of $3.2 million (Q2 2022: $7.6 million).
The Company realized a net loss for the period of $1.1 million (Q2 2022: $11.9 million) after an income tax expense of $5.2
million (Q2 2022: $3.1 million). Current income tax expense increased to $4.4 million (Q2 2022 - $1.3 million) due to
increased profitability impacting the income tax and special mining duty, while deferred income tax expense of $0.8 million is
derived from changes in temporary timing differences between deductions for accounting versus deductions for tax (Q2 2022 –
$1.8 million).
Direct operating costs (2) on a per tonne basis increased to $138.16, up 4% compared with Q2 2022 due to both a
strengthening of the Mexican peso and higher operating costs at both Guanacevi and Bolanitos from inflationary pressure
during 2022 and the first half of 2023. As the Mexican peso strengthens, the Company’s Mexican peso denominated costs are
increased in US dollar terms. Guanacevi and Bolanitos have seen increased labour, power and consumables costs.
Consolidated cash costs per oz( 2), net of by-product credits, increased to $13.52 primarily driven by an increase in direct
operating costs, an increase in royalties and special mining duties, partially offset by an increase in by-product gold sales and
increased silver production. AISC(2) decreased by 4% on a per oz basis compared to Q2 2022 due to the increase in cash
costs and an increase in allocated corporate general and administrative expenses partially offset by increased silver production
and slightly lower sustaining capital expenditures.
Management anticipates these macro trends will continue for the near term and therefore expects actual cost metrics to be
higher than cost metrics previously provided in the Company’s 2023 guidance. Management anticipates costs to align to
similar levels with H1 2023 actual cost metrics.
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
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 Q2 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: Tuesday, August 8, 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 0279#. 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 advancing construction of the Terronera Project and exploring its
portfolio of exploration 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: (604)640-4804
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 June 30, 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 June 30, 2023
MD&A available on SEDAR at www.sedar.com.
Reconciliation of Working Capital
Expressed in thousands US dollars As at June 30, 2023 As at December 31, 2022
Current assets $ 126,678 $ 146,333
Current liabilities 48,439 52,749
Working capital $ 78,239 $ 93,584
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands US dollars Three Months Ended June 30 Six Months Ended June 30
(except for share numbers and per share amounts) 2023 2022 2023 2022
Net earnings (loss) for the period per financial
statements $ (1,054) $ (11,923) $ 5,402 $ (261)
Change in fair value of investments 3,150 7,626 53 2,269
Adjusted net earnings (loss) $ 2,096 $ (4,297) $ 5,455 $ 2,008
Basic weighted average share outstanding 191,446,597 180,974,609 190,867,192 176,291,929
Adjusted net earnings (loss) per share $ 0.01 $ (0.02) $ 0.03 $ 0.01
Reconciliation of Mine Operating Cash Flow Before Taxes
Expressed in thousands US dollars Three Months Ended June 30 Six Months Ended June 30
2023 2022 2023 2022
Mine operating earnings per financial statements $ 12,542 $ 4,472 $ 28,567 $ 24,741
Share-based compensation (294) 113 (162) 240
Amortization and depletion 6,596 4,175 12,849 10,481
Mine operating cash flow before taxes $ 18,844 $ 8,760 $ 41,254 $ 35,462
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 June 30 Six Months Ended June 30
(except for per share amounts) 2023 2022 2023 2022
Cash from (used in) operating activities per financial
statements $ 4,853 $ (18,548) $ 4,452 $ 3,185
Net changes in non-cash working capital per financial
statements (6,606) (22,160) (19,508) (21,046)
Operating cash flow before working capital changes $ 11,459 $ 3,612 $ 23,960 $ 24,231
Basic weighted average shares outstanding 191,446,597 180,974,609 190,867,192 176,291,929
Operating cash flow before working capital changes per
share $ 0.06 $ 0.02 $ 0.13 $ 0.14
Reconciliation of EBITDA and Adjusted EBITDA
Expressed in thousands US dollars Three Months Ended June 30 Six Months Ended June 30
2023 2022 2023 2022
Net earnings (loss) for the period per financial
statements $ (1,054) $ (11,923) $ 5,402 $ (261)
Depreciation and depletion – cost of sales 6,596 4,175 12,849 10,481
Depreciation and depletion – exploration 317 98 595 205
Depreciation and depletion – general & administration 54 51 116 99
Depreciation and depletion – care & maintenance - 30 - 60
Finance costs 229 212 488 389
Current income tax expense 4,442 1,325 8,887 2,340
Deferred income tax expense 766 1,752 2,442 7,974
EBITDA $ 11,350 $ (4,280) $ 30,779 $ 21,287
Share based compensation 416 972 2,041 2,499
Change in fair value of investments 3,150 7,626 53 2,269
Adjusted EBITDA $ 14,916 $ 4,318 $ 32,873 $ 26,055
Basic weighted average shares outstanding 191,446,597 180,974,609 190,867,192 176,291,929
Adjusted EBITDA per share $ 0.08 $ 0.02 $ 0.17 $ 0.15
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 June 30,
2023
Three Months Ended June 30,
2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Direct production costs per financial statements $ 14,878 $ 10,600 $ 25,478 $ 7,797 $ 12,031 $ 19,828
Smelting and refining costs included in net revenue - 795 795 - 937 937
Opening finished goods (4,848) (1,063) (5,911) (7,908) (2,995) (10,903)
Closing finished goods 10,257 962 11,219 16,164 681 16,845
Direct operating costs 20,287 11,294 31,581 16,053 10,654 26,707
Royalties 5,679 70 5,749 2,128 66 2,194
Special mining duty (1) 1,224 209 1,433 795 127 922
Direct costs 27,190 11,573 38,763 18,976 10,847 29,823
By-product gold sales (8,469) (10,853) (19,322) (5,719) (12,302) (18,021)
Opening gold inventory fair market value 2,500 995 3,495 3,724 3,763 7,487
Closing gold inventory fair market value (1,629) (1,268) (2,897) (4,662) (1,061) (5,723)
Cash costs net of by-product 19,592 447 20,039 12,319 1,247 13,566
Amortization and depletion 3,381 3,215 6,596 940 3,235 4,175
Share-based compensation (147) (147) (294) 57 56 113
Opening finished goods depreciation and depletion (1,115) (355) (1,470) (1,689) (897) (2,586)
Closing finished goods depreciation and depletion 2,318 288 2,606 3,733 199 3,932
Total production costs $ 24,029 $ 3,448 $ 27,477 $ 15,360 $ 3,840 $ 19,200
Three Months Ended June 30,
2023
Three Months Ended June 30,
2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Throughput tonnes 116,908 111,667 228,575 94,017 107,344 201,361
Payable silver ounces 1,348,366 133,889 1,482,255 1,190,568 155,708 1,346,276
Cash costs per silver ounce $ 14.53 $ 3.34 $ 13.52 $ 10.35 $ 8.01 $ 10.08
Total production costs per ounce $ 17.82 $ 25.75 $ 18.54 $ 12.90 $ 24.66 $ 14.26
Direct operating costs per tonne $ 173.53 $ 101.14 $ 138.16 $ 170.75 $ 99.25 $ 132.63
Direct costs per tonne $ 232.58 $ 103.64 $ 169.59 $ 201.84 $ 101.05 $ 148.11
Expressed in thousands US dollars Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Direct production costs per financial statements $ 33,023 $ 18,971 $ 51,994 $ 25,681 $ 20,868 $ 46,549
Smelting and refining costs included in net revenue - 1,451 1,451 - 1,591 1,591
Opening finished goods (4,953) (245) (5,198) (10,093) (2,857) (12,950)
Closing finished goods 10,257 962 11,219 16,164 681 16,845
Direct operating costs 38,327 21,139 59,466 31,752 20,283 52,035
Royalties 12,150 134 12,284 6,362 149 6,511
Special mining duty (1) 2,494 294 2,788 1,526 371 1,897
Direct costs 52,971 21,567 74,538 39,640 20,803 60,443
By-product gold sales (16,902) (19,917) (36,819) (10,741) (23,790) (34,531)
Opening gold inventory fair market value 2,740 354 3,094 1,900 4,784 6,684
Closing gold inventory fair market value (1,629) (1,268) (2,897) (4,662) (1,061) (5,723)
Cash costs net of by-product 37,180 736 37,916 26,137 736 26,873
Amortization and depletion 6,855 5,994 12,849 4,850 5,631 10,481
Share-based compensation (81) (81) (162) 120 120 240
Opening finished goods depreciation and depletion (862) (60) (922) (1,965) (635) (2,600)
Closing finished goods depreciation and depletion 2,318 288 2,606 3,733 199 3,932
Total production costs $ 45,410 $ 6,877 $ 52,287 $ 32,875 $ 6,051 $ 38,926
Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Throughput tonnes 219,283 220,365 439,648 195,270 212,238 407,508
Payable silver ounces 2,783,970 306,497 3,090,467 2,321,016 328,800 2,649,816
Cash costs per silver ounce $ 13.36 $ 2.40 $ 12.27 $ 11.26 $ 2.24 $ 10.14
Total production costs per ounce $ 16.31 $ 22.44 $ 16.92 $ 14.16 $ 18.40 $ 14.69
Direct operating costs per tonne $ 174.78 $ 95.93 $ 135.26 $ 162.61 $ 95.57 $ 127.69
Direct costs per tonne $ 241.56 $ 97.87 $ 169.54 $ 203.00 $ 98.02 $ 148.32
Expressed in thousands US dollars June 30, 2023 June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Closing finished goods 10,257 962 11,219 16,164 681 16,845
Closing finished goods depletion 2,318 288 2,606 3,733 199 3,932
Finished goods inventory $12,575 $1,250 $13,825 $19,897 $880 $20,777
Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Cash costs net of by-product $ 19,592 $ 447 $ 20,039 $ 12,319 $ 1,247 $ 13,566
Operations share-based compensation (147) (147) (294) 57 56 113
Corporate general and administrative 1,228 477 1,705 401 155 556
Corporate share-based compensation 430 169 599 527 214 741
Reclamation - amortization/accretion 79 66 145 69 53 122
Mine site expensed exploration 327 350 677 360 308 668
Intangible payments - - - - - -
Equipment loan payments 245 489 734 246 488 734
Capital expenditures sustaining 6,300 2,920 9,220 7,050 2,788 9,838
All-In-Sustaining Costs $ 28,054 $ 4,771 $ 32,825 $ 21,028 $ 5,310 $ 26,338
Growth exploration and evaluation 3,253 2,901
Growth capital expenditures 14,644 5,613
All-In-Costs $ 50,722 $ 34,852
Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Throughput tonnes 116,908 111,667 228,575 94,017 107,344 201,361
Payable silver ounces 1,348,366 133,889 1,482,255 1,190,568 155,708 1,346,276
Silver equivalent production (ounces) 1,663,223 616,297 2,279,520 1,488,550 613,777 2,102,327
Sustaining cost per ounce $ 20.81 $ 35.64 $ 22.15 $ 17.66 $ 34.10 $ 19.56
All-In-costs per ounce $ 34.22 $ 25.89
Expressed in thousands US dollars Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Cash costs net of by-product $ 37,180 $ 736 $ 37,916 $ 26,137 $ 736 $ 26,873
Operations share-based compensation (81) (81) (162) 120 120 240
Corporate general and administrative 3,844 1,355 5,199 2,468 1,031 3,499
Corporate share-based compensation 1,449 511 1,960 1,444 603 2,047
Reclamation - amortization/accretion 158 128 286 134 106 240
Mine site expensed exploration 706 663 1,369 712 558 1,270
Intangible payments - - - 29 12 41
Equipment loan payments 490 976 1,466 491 977 1,468
Capital expenditures sustaining 11,990 5,221 17,211 12,696 5,214 17,910
All-In-Sustaining Costs $ 55,736 $ 9,509 $ 65,245 $ 44,230 $ 9,358 $ 53,588
Growth exploration and evaluation 6,316 5,314
Growth capital expenditures 27,370 10,538
All-In-Costs $ 98,931 $ 69,440
Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Throughput tonnes 219,283 220,365 439,648 195,270 212,238 407,508
Payable silver ounces 2,783,970 306,497 3,090,467 2,321,016 328,800 2,649,816
Silver equivalent production (ounces) 3,438,187 1,212,238 4,650,425 2,900,560 1,212,322 4,112,882
Sustaining cost per ounce $ 20.02 $ 31.03 $ 21.11 $ 19.06 $ 28.46 $ 20.22
All-In-costs per ounce $ 32.01 $ 26.21
Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands US dollars
Three Months Ended
June 30
Six Months Ended June
30
2023 2022 2023 2022
Capital expenditures sustaining $ 9,220 $ 9,838 $ 17,211 $ 17,910
Growth capital expenditures 14,644 5,613 27,370 10,538
Property, plant and equipment expenditures per Consolidated
Statement of Cash Flows $ 23,864 $ 15,451 $ 44,581 $ 28,448
Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
Expressed in thousands US
dollars Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Direct production costs per
financial statements $ 14,878 $ 10,600 $ 25,478 $ 7,797 $ 12,031 $ 19,828
Smelting and refining costs
included in net revenue - 795 795 - 937 937
Royalties 5,679 70 5,749 2,128 66 2,194
Special mining duty (1) 1,224 209 1,433 795 127 922
Opening finished goods (4,848) (1,063) (5,911) (7,908) (2,995) (10,903)
Closing finished goods 10,257 962 11,219 16,164 681 16,845
Direct costs $ 27,190 $ 11,573 $ 38,763 $ 18,976 $ 10,847 $ 29,823
Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Silver production (ounces) 1,352,423.00 141,577 1,494,000 1,194,150 165,057 1,359,207
Average realized silver price
($) 24.27 24.27 24.27 22.72 22.72 22.72
Silver value ($) 32,823,265 3,436,069 36,259,335 27,131,088 3,750,095 30,881,183
Gold production (ounces) 3,885 5,934 9,819 3,680 5,609 9,289
Average realized gold price ($) 1,955 1,955 1,955 1,840 1,840 1,840
Gold value ($) 7,595,464 11,601,411 19,196,875 6,771,200 10,320,560 17,091,760
Total metal value ($) 40,418,729 15,037,481 55,456,210 33,902,288 14,070,655 47,972,943
Pro-rated silver costs (%) 81% 23% 65% 80% 27% 64%
Pro-rated gold costs (%) 19% 77% 35% 20% 73% 36%
Pro-rated silver costs ($) 22,080 2,644 25,345 15,186 2,891 19,198
Pro-rated gold costs ($) 5,110 8,929 13,418 3,790 7,956 10,625
Silver co-product cash costs
($) 16.33 18.68 16.96 12.72 17.51 14.12
Gold co-product cash costs
($) 1,315 1,505 1,367 1,030 1,418 1,144
Expressed in thousands US
dollars Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Direct production costs per
financial statements $ 33,023 $ 18,971 $ 51,994 $ 25,681 $ 20,868 $ 46,549
Smelting and refining costs
included in net revenue - $ 1,451 $ 1,451 - 1,591 1,591
Royalties 12,150 134 12,284 6,362 149 6,511
Special mining duty (1) 2,494 294 2,788 1,526 371 1,897
Opening finished goods (4,953) (245) (5,198) (10,093) (2,857) (12,950)
Finished goods NRV
adjustment - - - - - 0
Closing finished goods 10,257 962 11,219 16,164 681 16,845
Direct costs 52,971 21,567 74,538 39,640 20,803 60,443
Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
Guanaceví Bolañitos Total Guanaceví Bolañitos Total
Silver production (ounces) 2,792,347 325,198 3,117,545 2,328,000 346,162 2,674,162
Average realized silver price
($) 23.65 23.65 23.65 23.95 23.95 23.95
Silver value ($) 66,031,062 7,690,007 73,721,069 55,755,600 8,290,580 64,046,180
Gold production (ounces) 8,073 11,088 19,161 7,157 10,827 17,984
Average realized gold price ($) 1,937 1,937 1,937 1,900 1,900 1,900
Gold value ($) 15,636,792 21,476,620 37,113,413 13,598,300 20,571,300 34,169,600
Total metal value ($) 81,667,854 29,166,628 110,834,482 69,353,900 28,861,880 98,215,780
Pro-rated silver costs (%) 81% 26% 67% 80% 29% 65%
Pro-rated gold costs (%) 19% 74% 33% 20% 71% 35%
Pro-rated silver costs ($) 42,829 5,686 49,579 31,868 5,976 39,415
Pro-rated gold costs ($) 10,142 15,881 24,959 7,772 14,827 21,028
Silver co-product cash costs
($) 15.34 17.49 15.90 13.69 17.26 14.74
Gold co-product cash costs
($) 1,256 1,432 1,303 1,086 1,369 1,169