Endeavour Silver Announces Q3 Financial Results; Earnings Conference Call at 10am PST (1pm EST) Today
Endeavour Silver Announces Q3 Financial Results; Earnings Conference Call
at 10am PST (1pm EST) Today
VANCOUVER, British Columbia, Nov. 08, 2022 -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE:
EXK; TSX: EDR) is pleased to announce its unaudited financial and operating results for the three and nine months ended
September 30, 2022. All amounts reported are in United States (US) dollars.
Dan Dickson, CEO, commented, “This quarter is a continuation of our strong operational performance. With production
guidance reaffirmed, and a strong fourth quarter expected, we are feeling confident about our 2022 production results. Like the
rest of the industry, profit margins are under pressure. The strength of the USD is weighing on commodity prices, and inflation
is increasing direct costs. We are fortunate that the elevated grade profile at Guanacevi and strong operational performance
has allowed us to stay within or near our guided cost ranges on a per ounce basis.”
“We continue to focus on business improvement and cost management initiatives, while being mindful of the future. Continuing
to advance the Terronera project in a deliberate and disciplined manner towards a construction decision and the completion of
the Pitarrilla acquisition, are both significant developments towards the future of the Company.”
Q3 2022 Highlights
• Continued Strong Production: 1,458,448 ounces (oz) of silver and 9,194 oz of gold for 2.2 million oz silver equivalent
(AgEq) (1) at an 80:1 silver:gold ratio, totaling 6.3 million AgEq oz for the 9 months ended September 30, 2022. Strong
year to date production reinforces delivery of 2022 guidance.
• Revenue Impacted by Withholding Metal Sales & Lower Realized Prices: Generated $40.4 million from the sale
of 1,327,325 oz silver and 8,852 oz gold at average realized prices of $19.24 per oz silver and $1,678 per oz gold.
Management continued to carry higher metal inventory totaling 1,527,549 oz silver and 3,210 oz gold of bullion inventory
and 2,770 oz silver and 143 oz gold in concentrate inventory, with a market value of approximately $35 million at
September 30, 2022.
• Operating Costs per Ounce In-Line with Guidance, Despite Industry-Wide Inflation: Cash costs (2) of $10.32 per
oz payable silver and all-in sustaining costs (AISC)(2) of $20.27 per oz payable silver, net of gold credits.
• Negative Earnings and Lower Cash Flow Due to Impacted Revenue: Net loss of $1.5 million or $0.01 loss per
share. $7.3 million in cash flow from operations before working capital changes (2) and mine operating cash flow before
taxes(2) of $12.3 million. The Company continued to hold significant finished goods held at costs on the balance sheet
at quarter end.
• Healthy Balance Sheet: Cash position of $69.2 million and $101.6 million in working capital (2). Cash decreased in the
quarter, as funds were spent to complete the acquisition of the Pitarrilla Project with a $35 million cash payment and
early works expenditures to advance the Terronera project.
• Strong Liquidity Remains: While the cash balance decreased during the quarter, the realized sale of finished goods
inventory, with a market value of approximately $35 million at quarter end, would imply a cash balance closer to $100
million.
• Advancing the Terronera Project: Work continued on predevelopment activities initiated last year including detailed
engineering, critical contracts, procurement of long-lead items and road and camp construction. The Company intends
to make a formal construction decision subject to completion of a financing package and receipt of additional amended
permits in the coming months. Budgeted development expenditures for 2022 are estimated to be $41.0 million.
• Completed the Acquisition of the Pitarrilla Project: The world’s largest undeveloped silver project that will form the
cornerstone of the Company’s growth profile, together with Terronera and Parral (see News Release dated July 6,
2022).
• Divested the El Compas Property to Grupo ROSGO: Completed the sale of the property and the plant for US$5
million over five years (see News Release dated September 12, 2022).
Financial Overview (see appendix for consolidated financial statements)
Three Months Ended September
30 Q3 2022 Highlights Nine Months Ended September 30
2022 2021 % Change 2022 2021 % Change
Production
1,458,448 1,305,399 12% Silver ounces produced 4,132,610 3,427,223 21%
9,194 10,541 (13%) Gold ounces produced 27,178 32,816 (17%)
1,445,880 1,295,126 12% Payable silver ounces produced 4,095,696 3,394,103 21%
9,039 10,328 (12%) Payable gold ounces produced 26,705 32,177 (17%)
2,193,968 2,148,679 2% Silver equivalent ounces produced(1) 6,306,850 6,052,503 4%
10.32 8.16 27% Cash costs per silver ounce(2)(3) 10.21 9.59 6%
14.31 13.14 9% Total production costs per ounce(2)(4) 14.56 15.84 (8%)
20.27 17.46 16% All-in sustaining costs per ounce (2)(5) 20.24 20.70 (2%)
202,745 222,461 (9%) Processed tonnes 610,253 673,932 (9%)
131.61 115.57 14% Direct operating costs per tonne(2)(6) 128.99 116.14 11%
146.30 130.38 12% Direct costs per tonne (2)(6) 147.65 133.12 11%
13.12 13.98 (6%) Silver co-product cash costs (7) 14.15 15.86 (11%)
1,144 1,020 12% Gold co-product cash costs (7) 1,163 1,078 8%
Financial
39.7 34.6 15% Revenue ($ millions) 128.2 116.8 10%
1,327,325 699,539 90% Silver ounces sold 3,647,987 2,443,184 49%
8,852 9,925 (11%) Gold ounces sold 27,025 30,398 (11%)
19.24 24.56 (22%) Realized silver price per ounce 22.24 26.26 (15%)
1,678 1,791 (6%) Realized gold price per ounce 1,827 1,784 2%
(1.5) (4.5) (67%) Net earnings (loss) ($ millions) (1.8) 14.4 (112%)
(3.1) (1.5) 106% Adjusted net earnings (loss) (11) ($ millions) (1.1) (5.2) 78%
5.1 8.3 (38%) Mine operating earnings ($ millions) 29.9 24.1 24%
12.3 13.2 (7%) Mine operating cash flow before taxes ($
millions)(8) 47.8 43.7 9%
7.3 7.7 (4%) Operating cash flow before working capital
changes(9) 31.6 21.6 46%
7.9 4.4 81% EBITDA(10) ($ millions) 29.2 44.2 (34%)
101.6 128.7 (21%) Working capital (12) ($ millions) 101.6 128.7 (21%)
Shareholders
(0.01) (0.03) (67%) Earnings (loss) per share – basic ($) (0.01) 0.09 (111%)
0.04 0.04 (14%) Operating cash flow before working capital
changes per share(9) 0.17 0.13 35%
189,241,367170,432,326 11% Weighted average shares outstanding 180,655,842166,201,727 9%
(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 September 30, 2022, net revenue, increased by 15% to $39.7 million (Q3 2021: $34.6 million).
Gross sales of $40.4 million in Q3 2022 represented a 15% increase over the $35.0 million in Q3 2021. Silver oz sold
increased by 90%, due to both a 12% increase in silver production and a significantly smaller buildup of finished goods
inventory during Q3, 2022 compared to Q3, 2021. There was a 22% decrease in the realized silver price resulting in a 48%
increase to silver sales. Gold oz sold decreased 11% with a 6% decrease in realized gold prices resulting in a 16% decrease
in gold sales. The decrease in gold sales is primarily driven by the decreased gold grades at the Bolañitos mine and the
suspension of production from the El Compas mine. During the period, the Company sold 1,327,325 oz silver and 8,852 oz
gold, for realized prices of $19.24 and $1,678 per oz, respectively, compared to sales of 699,539 oz silver and 9,925 oz gold,
for realized prices of $24.56 and $1,791 per oz, respectively, in the same period of 2021. For the three months ended
September 30, 2022, the realized prices of silver and gold were within 3% of the London spot prices. Silver and gold London
spot prices averaged $19.23 and $1,729, respectively, during the three months ended September 30, 2022
The Company increased its finished goods silver and finished goods gold inventory to 1,530,319 oz silver and 3,353 oz gold, at
September 30, 2022 compared to 1,411,764 oz silver and 3,167 oz gold at June 30, 2022. The cost allocated to these finished
goods was $22.1 million at September 30, 2022, compared to $20.8 million at June 30, 2022 and $18.3 million at September
30, 2021. At September 30, 2022, the finished goods inventory fair market value was $34.7 million, compared to $34.5 million
at June 30, 2022. Earnings and other financial metrics, including mine operating cash flow (2), operating cash flow (2) and
EBITDA(2) were impacted by the withholding of sales during Q3 2022.
Cost of sales for Q3, 2022 was $34.5 million, an increase of 31% over the cost of sales of $26.3 million for Q3, 2021. The cost
of sales in Q3, 2022 was impacted by increased input costs and slightly impacted by the delay in recognition of costs
associated with the increase in the quantity of silver ounces in finished goods at the end of the period. Overall costs for Q3,
2022 were impacted by higher labour, power and consumables costs as the Company is experiencing significant inflationary
pressures. During Q3, 2022, the Company also recorded an allowance on the valuation of warehouse inventory of $1.3 million
(Q3, 2021 – Nil).
In Q3, 2022, the Company had an operating loss of $1.3 million (Q3, 2021 – operating earnings of $3.0 million) after
exploration and evaluations costs of $4.0 million (Q3, 2021 – $4.7 million), general and administrative expense of $2.2 million
(Q3, 2021 – expense recovery $0.5 million), and care and maintenance expense of $0.2 million (Q3, 2021 – $0.4 million). In
the three months ended September 30, 2021 operating earnings included $0.7 million in severance costs related to the
suspension of the operations at the El Compas mine.
The earnings before taxes for Q3, 2022 was $1.7 million (Q3, 2021 – loss $0.8 million) after finance costs of $0.3 million (Q3,
2021 – $0.2 million), a foreign exchange gain of $0.8 million (Q3, 2021 –foreign exchange loss of $1.2 million), gain on assets
disposal of $2.8 million (Q3, 2021 -$Nil) and investment and other expense of $0.3 million (Q3, 2021 –$2.4 million).
The Company realized a net loss for the period of $1.5 million (Q3, 2021 –$4.5 million) after an income tax expense of $3.2
million (Q3, 2021 – $3.7 million). In Q3, 2022 earnings were impacted by a $1.1 million mark-to-market adjustment resulting in
an unrealized loss on investments included in investment and other expense (Q3, 2021 - $3.0 million).
Current income tax expense increased to $1.2 million (Q3 2021 - $0.7 million) due to increased profitability impacting the
income tax and special mining duty, while deferred income tax expense of $2.0 million is primarily due to the estimated use of
loss carryforwards to reduce taxable income generated at both Guanaceví and Bolañitos (Q3 2021 – $3.0 million).
Direct operating costs (2) on a per tonne basis increased to $131.61, up 14% compared with Q3 2021 due to higher operating
costs at Guanaceví and Bolañitos and a reduction in ore tonnes processed. Guanaceví and Bolañitos have seen increased
labour, power and consumables costs and at Guanaceví, increased third party ore purchased and operating development have
increased compared to the prior year.
Consolidated cash costs per oz (2), net of by-product credits increased 27% to $10.32 driven by increased direct costs per
tonne(2) and a reduction in by-product gold sales, offset by increased ore grades. AISC (2) increased by 16% on a per oz basis
compared to Q3, 2021 as a result of the increased cash costs (2) and increased allocated general and administrative costs
offset by a slight reduction in sustaining capital expenditures
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 Q3 2022 financial results will be held today at 10:00 a.m. PST / 1:00 p.m. EST.
To participate in the conference call, please dial the numbers below.
Date & Time: Tuesday, November 8, 2022 at 10:00 a.m. PST / 1:00 p.m. EST
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 9479#. 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 the Terronera project towards a development
decision, pending financing and final permits 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: (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 September 30, 2022 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 September
30, 2022 MD&A available on SEDAR at www.sedar.com.
Reconciliation of Working Capital
Expressed in thousands US dollars As at September 30, 2022 As at December 31, 2021
Current assets $139,925 $161,762
Current liabilities 38,307 40,554
Working capital $101,618 $121,208
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands US dollars Three Months Ended
September 30
Nine Months Ended
September 30
(except for share numbers and per share amounts) 2022 2021 2022 2021
Net earnings (loss) for the period per financial statements ($1,499) ($4,479) ($1,760) $14,426
Impairment (reversal) of non-current assets, net of tax - - - (16,791)
Gain on disposal of El Cubo mine and equipment, net of tax - - - (5,807)
Gain on disposal of El Compas mine and equipment, net of
tax (2,733) - (2,733) -
Change in fair value of investments 1,097 2,959 3,366 2,968
Adjusted net earnings (loss) ($3,135) ($1,520) ($1,127) ($5,204)
Basic weighted average share outstanding 189,241,367 170,432,326 180,655,842 166,201,727
Adjusted net earnings (loss) per share ($0.02) ($0.01) ($0.01) ($0.03)
Reconciliation of Mine Operating Cash Flow Before Taxes
Expressed in thousands US dollars Three Months Ended
September 30
Nine Months Ended
September 30
2022 2021 2022 2021
Mine operating earnings per financial statements $5,129 $8,277 $29,870 $24,146
Share-based compensation 113 105 353 334
Amortization and depletion 5,753 4,843 16,234 18,963
Write down of inventory to net realizable value $1,323 - 1,323 272
Mine operating cash flow before taxes $12,318 $13,225 $47,780 $43,715
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
September 30
Nine Months Ended
September 30
(except for per share amounts) 2022 2021 2022 2021
Cash from (used in) operating activities per financial
statements $7,417 ($153) $10,602 $5,391
Net changes in non-cash working capital per financial
statements 85 (7,808) (20,957) (16,168)
Operating cash flow before working capital changes $7,332 $7,655 $31,559 $21,559
Basic weighted average shares outstanding 189,241,367 170,432,326 180,655,842 166,201,727
Operating cash flow before working capital changes per
share $0.04 $0.04 $0.17 $0.13
Reconciliation of EBITDA and Adjusted EBITDA
Expressed in thousands US dollars Three Months Ended
September 30
Nine Months Ended
September 30
2022 2021 2022 2021
Net earnings (loss) for the period per financial statements ($1,499) ($4,479) ($1,760) $14,426
Depreciation and depletion – cost of sales 5,753 4,843 16,234 18,963
Depreciation and depletion – exploration 143 87 348 238
Depreciation and depletion – general & administration 57 30 156 102
Depreciation and depletion – care & maintenance 10 21 70 25
Depreciation and depletion – inventory write down - - - 6
Finance costs 194 195 583 702
Current income tax expense 1,186 659 3,526 2,476
Deferred income tax expense 2,053 3,017 10,027 7,260
EBITDA $7,897 $4,373 $29,184 $44,198
Share based compensation 760 725 3,259 2,918
Impairment (reversal) of non-current assets, net of tax - - - (16,791)
Gain on disposal of El Cubo mine and equipment, net of tax - - - (5,807)
Gain on disposal of El Compas mine and equipment, net of
tax (2,733) - (2,733) -
Change in fair value of investments 1,097 2,959 3,366 2,968
Adjusted EBITDA $7,021 $8,057 $33,076 $27,486
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
September 30, 2022
Three Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Direct production costs per financial
statements $15,156 $9,354 $24,510 $9,299 $6,692 $2,648 $18,639
Smelting and refining costs included in net
revenue - 744 744 - 350 42 392
Opening finished goods (16,164) (681) (16,845) (6,985) (408) (1,145) (8,538)
Finished goods NRV adjustment - - - - - - -
Closing finished goods 18,080 195 18,275 12,910 2,306 - 15,216
Direct operating costs 17,072 9,612 26,684 15,224 8,940 1,545 25,709
Royalties 2,762 59 2,821 2,595 48 55 2,698
Special mining duty (1) 241 (85) 156 801 (203) - 598
Direct costs 20,075 9,586 29,661 18,620 8,785 1,600 29,005
By-product gold sales (5,237) (9,615) (14,852) (7,673) (7,827) (2,274) (17,774)
Opening gold inventory fair market value 4,662 1,061 5,723 3,349 633 1,038 5,020
Closing gold inventory fair market value (5,368) (240) (5,608) (2,127) (3,560) - (5,687)
Cash costs net of by-product 14,132 792 14,924 12,169 (1,969) 364 10,564
Amortization and depletion 3,119 2,634 5,753 1,683 3,071 89 4,843
Share-based compensation 56 57 113 44 45 16 105
Opening finished goods depreciation and
depletion (3,733) (199) (3,932) (1,333) (220) (30) (1,583)
NRV depreciation cost adjustment - - - - - - -
Closing finished goods depreciation and
depletion 3,776 60 3,836 1,920 1,171 - 3,091
Total production costs $17,350 $3,344 $20,694 $14,483 $2,098 $439 $17,020
Three Months Ended
September 30, 2022
Three Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Throughput tonnes 97,728 105,017 202,745 105,496 107,752 9,213 222,461
Payable silver ounces 1,328,193 117,687 1,445,880 1,170,645 117,078 7,403 1,295,126
Cash costs per silver ounce $10.64 $6.73 $10.32 $10.40 ($16.82) $49.17 $8.16
Total production costs per ounce $13.06 $28.41 $14.31 $12.37 $17.92 $59.30 $13.14
Direct operating costs per tonne $174.69 $91.53 $131.61 $144.31 $82.97 $167.70 $115.57
Direct costs per tonne $205.42 $91.28 $146.30 $176.50 $81.53 $173.67 $130.38
Expressed in thousands US dollars Nine Months Ended
September 30, 2022
Nine Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Direct production costs per financial
statements $40,837 $30,222 $71,059 $33,072 $21,567 $8,951 $63,590
Smelting and refining costs included in net
revenue - 2,335 2,335 - 1,353 248 1,601
Opening finished goods (10,093) (2,857) (12,950) (1,509) (250) (642) (2,401)
Finished goods NRV adjustment - - - - - 266 266
Closing finished goods 18,080 195 18,275 12,910 2,306 - 15,216
Direct operating costs 48,824 29,895 78,719 44,473 24,976 8,823 78,272
Royalties 9,124 208 9,332 8,966 186 346 9,498
Special mining duty (1) 1,767 286 2,053 1,742 205 - 1,947
Direct costs 59,715 30,389 90,104 55,181 25,367 9,169 89,717
By-product gold sales (15,978) (33,405) (49,383) (15,346) (30,265) (8,626) (54,237)
Opening gold inventory fair market value 1,900 4,784 6,684 735 746 1,283 2,764
Closing gold inventory fair market value (5,368) (240) (5,608) (2,127) (3,560) - (5,687)
Cash costs net of by-product 40,269 1,528 41,797 38,443 (7,712) 1,826 32,557
Amortization and depletion 7,969 8,265 16,234 5,763 10,664 2,536 18,963
Share-based compensation 176 177 353 137 136 61 334
Opening finished goods depreciation and
depletion (1,965) (635) (2,600) (271) (104) (804) (1,179)
NRV depreciation and depletion cost
adjustment - - - - - 6 6
Closing finished goods depreciation and
depletion 3,776 60 3,836 1,920 1,171 - 3,091
Total production costs $50,225 $9,395 $59,620 $45,992 $4,155 $3,625 $53,772
Nine Months Ended
September 30, 2022
Nine Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Throughput tonnes 292,998 317,255 610,253 306,021 313,356 54,555 673,932
Payable silver ounces 3,649,209 446,487 4,095,696 3,022,531 328,522 43,050 3,394,103
Cash costs per silver ounce $11.03 $3.42 $10.21 $12.72 ($23.47) $42.42 $9.59
Total production costs per ounce $13.76 $21.04 $14.56 $15.22 $12.65 $84.20 $15.84
Direct operating costs per tonne $166.64 $94.23 $128.99 $145.33 $79.70 $161.73 $116.14
Direct costs per tonne $203.81 $95.79 $147.65 $180.32 $80.95 $168.07 $133.12
Expressed in thousands US dollars September 30, 2022 September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Closing finished goods 18,080 195 18,275 12,910 2,306 - 15,216
Closing finished goods depletion 3,776 60 3,836 1,920 1,171 - 3,091
Finished goods inventory $21,856 $255 $22,111 $14,830 $3,477 $0 $18,307
Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars Three Months Ended
September 30, 2022
Three Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Cash costs net of by-product $14,132 $792 $14,924 $12,169 ($1,969) $364 $10,564
Operations share-based compensation 56 57 113 44 45 16 105
Corporate general and administrative 1,200 414 1,614 (781) (389) (79) (1,249)
Corporate share-based compensation 405 125 530 436 216 44 697
Reclamation - amortization/accretion 64 52 116 13 11 2 26
Mine site expensed exploration 316 305 621 366 229 3 598
Intangible payments - - - 61 30 6 97
Equipment loan payments 245 489 734 245 501 - 746
Capital expenditures sustaining 7,212 3,439 10,651 6,322 4,706 - 11,028
All-In-Sustaining Costs $23,629 $5,674 $29,303 $18,875 $3,381 $357 $22,612
Growth exploration and evaluation 3,142 4,053
Growth capital expenditures 6,240 2,303
All-In-Costs $38,685 $28,968
Three Months Ended
September 30, 2022
Three Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Throughput tonnes 97,728 105,017 202,745 105,496 107,752 9,213 222,461
Payable silver ounces 1,328,193 117,687 1,445,880 1,170,645 117,078 7,403 1,295,126
Silver equivalent production (ounces) 1,623,550 570,418 2,193,968 1,462,568 621,083 65,028 2,148,679
Sustaining cost per ounce $17.79 $48.21 $20.27 $16.12 $28.88 $48.16 $17.46
All-In-costs per ounce $26.76 $22.37
Expressed in thousands US dollars Nine Months Ended
September 30, 2022
Nine Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Cash costs net of by-product $40,269 $1,528 $41,797 $38,443 ($7,712) $1,826 $32,557
Operations share-based compensation 176 177 353 137 136 61 334
Corporate general and administrative 3,668 1,445 5,113 3,026 1,504 307 4,837
Corporate share-based compensation 1,849 728 2,577 1,473 732 149 2,355
Reclamation - amortization/accretion 198 158 356 38 33 7 78
Mine site expensed exploration 1,028 863 1,891 1,360 768 198 2,326
Intangible payments 29 12 41 178 88 18 284
Equipment loan payments 736 1,466 2,202 853 1,593 - 2,446
Capital expenditures sustaining 19,908 8,653 28,561 14,222 10,806 - 25,028
All-In-Sustaining Costs $67,861 $15,030 $82,891 $59,730 $7,949 $2,567 $70,245
Growth exploration and evaluation 8,456 11,023
Growth capital expenditures 16,778 3,737
All-In-Costs $108,125 $85,005
Nine Months Ended
September 30, 2022
Nine Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Throughput tonnes 292,998 317,255 610,253 306,021 313,356 54,555 673,932
Payable silver ounces 3,649,209 446,487 4,095,696 3,022,531 328,522 43,050 3,394,103
Silver equivalent production (ounces) 4,524,110 1,782,740 6,306,850 3,786,186 1,882,154 384,163 6,052,503
Sustaining cost per ounce $18.60 $33.66 $20.24 $19.76 $24.20 $59.62 $20.70
All-In-costs per ounce $26.40 $25.04
Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands US dollars Three Months Ended
September 30
Nine Months Ended
September 30
2022 2021 2022 2021
Capital expenditures sustaining $10,651 $11,028 $28,561 $25,028
Growth capital expenditures 6,240 2,303 16,778 3,737
Acquisition capital expenditures 35,998 10,042 35,998 10,042
Property, plant and equipment expenditures per
Consolidated Statement of Cash Flows $52,889 $23,373 $81,337 $38,807
Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
Expressed in thousands US dollars Three Months Ended September
30, 2022
Three Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Direct production costs per financial
statements $15,156 $9,354 $24,510 $9,299 $6,692 $2,648 $18,639
Smelting and refining costs included in
net revenue - 744 744 - 350 42 392
Royalties 2,762 59 2,821 2,595 48 55 2,698
Special mining duty (1) 241 (85) 156 801 (203) - 598
Opening finished goods (16,164) (681) (16,845) (6,985) (408) (1,145) (8,538)
Closing finished goods 18,080 195 18,275 12,910 2,306 - 15,216
Direct costs $20,075 $9,586 $29,661 $18,620 $8,785 $1,600 $29,005
Three Months Ended September
30, 2022
Three Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El
Compas
Total
Silver production (ounces) 1,332,190 126,258 1,458,448 1,174,168 123,883 7,348 1,305,399
Average realized silver price ($) 19.24 19.24 19.24 24.56 24.56 24.56 24.56
Silver value ($) 25,634,615 2,429,515 28,064,129 28,837,566 3,042,566 180,467 32,060,599
Gold production (ounces) 3,642 5,552 9,194 3,605 6,215 721 10,541
Average realized gold price ($) 1,678 1,678 1,678 1,791 1,791 1,791 1,791
Gold value ($) 6,110,595 9,315,217 15,425,812 6,456,555 11,131,065 1,291,311 18,878,931
Total metal value ($) 31,745,209 11,744,732 43,489,941 35,294,121 14,173,631 1,471,778 50,939,530
Pro-rated silver costs (%) 81% 21% 65% 82% 21% 12% 63%
Pro-rated gold costs (%) 19% 79% 35% 18% 79% 88% 37%
Pro-rated silver costs ($) 16,211 1,983 19,140 15,214 1,886 196 18,255
Pro-rated gold costs ($) 3,864 7,603 10,521 3,406 6,899 1,404 10,750
Silver co-product cash costs ($) 12.17 15.71 13.12 12.96 15.22 26.70 13.98
Gold co-product cash costs ($) 1,061 1,369 1,144 945 1,110 1,947 1,020
Expressed in thousands US dollars Nine Months Ended September
30, 2022
Nine Months Ended September 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El Total