Endeavour Silver Provides 2023 Guidance; Production expected at 5.7 – 6.3 Million oz Silver and 36,000 – 40,000 oz Gold for 8.6 – 9.5 Million oz Silver Equivalent ¹
Endeavour Silver Provides 2023 Guidance; Production expected at 5.7 – 6.3
Million oz Silver and 36,000 – 40,000 oz Gold for 8.6 – 9.5 Million oz Silver
Equivalent ¹
VANCOUVER, British Columbia, Jan. 12, 2023 -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE:
EXK; TSX: EDR) is pleased to announce its consolidated production and cost guidance and its capital and exploration
budgets for 2023. All dollar amounts are in US dollars (US$).
2023 Production and Cost Guidance Highlights
In 2023, silver production is expected to range from 5.7 to 6.3 million ounces (oz) and gold production is expected to be
between 36,000 oz and 40,000 oz. Silver equivalent production is forecasted to total between 8.6 million and 9.5 million oz at
an 80:1 silver:gold ratio.
Consolidated cash costs 2 and all-in sustaining costs 2 (“AISC”) in 2023 are estimated to be $10.00-$11.00 per oz silver and
$19.00-20.00 per oz silver, respectively, net of gold by-product credits. Consolidated cash costs on a per ounce basis are
expected to be similar to 2022 and AISC slightly lower as comparable sustaining capital, exploration and general and
administrative costs will be allocated over increased production.
“Our 2023 guidance marks our fourth consecutive year of production growth and a 25% increase from the mid-point of last
year’s original forecast. Our ongoing operational success is a product of culture and values promoted throughout the Company
for safe and sustainable operations, together with improved mineral quality at Guanaceví,” stated Dan Dickson, Endeavour’s
CEO. “The combination of higher consolidated throughput and produced ounces allows for similar projected unit costs, amidst
an inflationary-challenged landscape. While we continue to see cost pressures in explosives, energy prices and steel, we have
also identified efficiencies to mitigate costs.”
Mr. Dickson added, “As we look to the year ahead, our commitment to creating shareholder value will continue by way of
organic growth and continued strong operating performance. We are in an enviable position with one development project and
multiple advanced exploration projects that provide considerable upside for value creation both near and long term. A
development decision on Terronera is expected soon and will redefine our cost profile when production commences. The
planned advancement of the Pitarrilla and Parral assets will provide further similar opportunities for growth and value.”
2023 Guidance Summary
Guanaceví Bolañitos Consolidated
Tonnes per day tpd 1,150 - 1,250 1,150 - 1,250 2,300 - 2,500
Silver production M oz 5.2 – 5.7 0.5 - 0.6 5.7 – 6.3
Gold production k oz 15.0 - 17.0 21.0 - 23.0 36.0 - 40.0
Silver Eq production1 M oz 6.4 – 7.0 2.2 - 2.4 8.6 – 9.5
Cash costs, net of gold by-product credits 2 $/oz $10.00 - $11.00
AISC, net of gold by-product credits2 $/oz $19.00 - $20.00
Sustaining capital2 budget $M $34.7
Development budget $M $25.7
Exploration budget $M $9.3
Operating Mines
At Guanaceví, 2023 plant throughput will range from 1,150 tonnes per day (tpd) to 1,250 tpd and average 1,200 tpd sourcing
from Milache, SCS and El Curso. A significant portion of production will be mined from the Porvenir Cuatro extension on the El
Curso concessions. The El Curso concessions were leased from a third party with no upfront costs, but with significant royalty
payments on production. Compared to 2022, mine grades are expected to remain elevated and recoveries are anticipated to be
similar in 2023. Cash costs per ounce and direct costs 2 on a per tonne basis are expected to be similar to 2022, with an
increase in costs offset by both increased processed tonnes and increased production.
In 2023, plant throughput at Bolañitos is expected to range from 1,150 tpd to 1,250 tpd and average 1,200 tpd sourcing from
the Plateros-La Luz, Lucero-Karina and Bolañitos-San Miguel vein systems. Mine grades and recoveries are expected to be
similar to 2022. Direct costs on a per tonne basis are expected to decrease slightly due to both a reduction in indirect costs
and an increase in processed tonnes. Cash costs per ounce are expected to be slightly lower than 2022 due to an increase in
gold ounces produced.
Consolidated Operating Costs
2023 cash costs, net of gold by-product credits, are expected to be $10.00-$11.00 per oz of silver produced. Consolidated
cash costs on a co-product basis 2 are anticipated to be $13.00-$14.00 per oz silver and $1,100-$1,200 per oz gold.
All-in sustaining costs, net of gold by-product credits, in accordance with the World Gold Council standard, are estimated to
be $19.00-$20.00 per oz of silver produced. Excluding non-cash items, AISC are forecast to be in the $18.00-$19.00 range.
Direct operating costs 2 per tonne are estimated to be $115-$120 with inflationary pressures expected to continue in 2023.
Direct costs 2, which include royalties and special mining duties, are estimated to be in the range of $140-$145 per tonne.
Management made the following assumptions in calculating its 2023 cost forecasts: $21 per oz silver price, $1,680 per oz gold
price, 20:1 Mexican peso per US dollar exchange rate and a 5% US annual inflation rate.
2023 Capital Budget
Sustaining Mine
Development
Sustaining Other
Capital
Total Sustaining
Capital
Growth
Capital
Total
Capital
Guanaceví $14.0 million $8.9 million $22.9 million - $22.9 million
Bolañitos $8.2 million $3.6 million $11.8 million - $11.8 million
Terronera - - - $25.7 million $25.7 million
Corporate and
Exploration $2.1 million $2.1 million
Total $22.2 million $12.5 million $34.7 million $27.8 million $62.5 million
Sustaining Capital Investments
In 2023, Endeavour plans to invest $34.7 million in sustaining capital at its two operating mines. At current metal prices, the
sustaining capital investments are expected to be paid out of operating cash flow.
At Guanaceví, $22.9 million will be invested in capital projects, the largest of which is 4.5 kilometres of mine development at
Milache, SCS and El Curso for an estimated $14.0 million. The additional $8.9 million will go towards improving plant
infrastructure, upgrading the mining fleet, and supporting surface site infrastructure.
At Bolañitos, $11.8 million will be invested in capital projects, including $8.2 million for 3.8 kilometres of mine development to
access resources in the Plateros-La Luz, Lucero-Karina, and Bolañitos-San Miguel areas. The additional $3.6 million will go to
upgrade the mining fleet, plant improvements which include an elevation raise to the tailings dam, and to support site
infrastructure.
At Terronera, a $25.7 million development budget has been allocated for the first quarter of 2023 to continue with pre-
construction activities. The approval is based on utilizing existing cash on hand and cash flow from operations, ahead of
formalized project financing as the Company continues to advance the project. With the ramp up of the procurement phase
well underway, the funds will be used for final detailed engineering, assembly of initial project infrastructure, further earthworks
pertaining to site clearing, road upgrades and underground mine access development. The Company intends to make a formal
construction decision, subject to completion of a financing package and receipt of amended permits, in the coming months, at
which time the budget for the remainder of 2023 for the project will be determined.
The Company also plans to spend $2.1 million to maintain exploration concessions, acquire mobile exploration equipment and
cover corporate infrastructure.
2023 Exploration Budget
Project 2023 Activity Drill Metres Expenditures
Guanaceví Drilling 7,000 $1.1 million
Bolañitos Drilling 6,000 $0.9 million
Terronera Drilling 4,000 $0.7 million
Pitarrilla Drilling/Evaluation 5,000 $3.1 million
Parral Drilling/Economic Study 6,000 $1.5 million
Chile - Aida Drilling 2,000 $0.8 million
Chile - Other Evaluation - $1.0 million
Bruner Evaluation - $0.2 million
Total 30,000 $9.3 million
In 2023, the Company plans to spend $9.3 million drilling 30,000 metres across its properties.
At the Guanaceví and Bolañitos mines, 13,000 metres of drilling are planned at a cost of $2.0 million to replace reserves and
expand resources.
At the Terronera development project, 4,000 metres of drilling are planned to test multiple regional targets identified in 2022 to
expand resources within the district.
At the Pitarrilla project, management plans to invest $3.1 million on maintenance of the office and camp, underground drilling
and evaluation programs, and 500 metres of underground development. The largest portion of the expenditure at Pitarrilla in
2023 relates to ramp fortification costs to continue advancement of a 1 kilometre long tunnel that will be used as a drill
platform. The Company plans to drill 5,000 metres to test the high-grade zone (“underground manto”) at various angles from
the newly extended and improved ramp.
At the Parral project in Chihuahua state, 6,000 metres of drilling are planned at a cost of $1.5 million to delineate existing
resources, expand resources and test new targets. In the second half of the year, the Company expects to initiate a
preliminary economic assessment.
In Chile, management intends to invest $0.8 million to drill 2,000 metres to test a manto target with significant silver-
manganese-lead-zinc anomalies at surface. Additionally, the Company plans to conduct mapping, sampling and surface
exploration on several other exploration projects, estimated to cost $0.7 million including administration costs in the country.
At the Bruner project in Nevada management plans to invest $0.2 million to map and sample new targets.
Technical Disclosure
The scientific and technical information contained in this news release has been reviewed and approved by Dale Mah, P.Geo.,
Vice President Corporate Development of Endeavour, a Qualified Person under NI43-101.
About Endeavour Silver – Endeavour Silver Corp. 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 mine 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, VP of Investor Relations
Tel: (604)640-4804
Email: [email protected]
Website: www.edrsilver.com
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Endnotes
1 Silver equivalent is calculated using an 80:1 silver:gold ratio.
2 Non-IFRS Financial Measures
The Company has included certain performance measures that are not defined under International Financial Reporting
Standards (“IFRS”). The Company believes that these measures, in addition to conventional measures prepared in accordance
with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS
measures are intended to provide additional information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS as an indicator of performance. These measures do not have any
standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers with similar descriptions.
Cash costs and cash costs per ounce
Cash costs per ounce is a non-IFRS measure. In the silver mining industry, this metric is a common performance measure
that does not have a standardized meaning under IFRS. Cash costs include direct costs (including smelting, refining,
transportation and selling costs), royalties and special mining duty and changes in finished goods inventory net of gold credits.
Cash costs per ounce is based on ounces of silver produced and is calculated by dividing cash costs by the number of ounces
of silver produced.
Cash costs on a co-product and cash costs on a co-product per ounce
Silver co-product cash costs and gold co-product cash costs include mining, processing (including smelting, refining,
transportation and selling costs), and direct overhead costs allocated on pro-rated basis of realized metal value. Cash costs on
a co-product per ounce is based on the number of either silver or gold ounces produced.
Direct operating costs and direct costs
Direct operating costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and
direct overhead at the operation sites. Direct costs per tonne include all direct operating costs, royalties and special mining
duty.
All-in sustaining costs (“AISC”) and AISC per ounce
This measure is intended to assist readers in evaluating the total cost of producing silver from operations. While there is no
standardized meaning across the industry for AISC measures, the Company’s definition conforms to the definition of AISC as
set out by the World Gold Council and used as a standard of the Silver Institute. The Company defines AISC as the cash
costs (as defined above), plus reclamation cost accretion, mine site expensed exploration, corporate general and
administration costs and sustaining capital expenditures. AISC per ounce is based on ounces of silver produced and is
calculated by dividing AISC by the number of ounces of silver produced.
Sustaining capital
Sustaining capital is defined as the capital required to maintain operations at existing levels. This measurement is used by
management to assess the effectiveness of an investment program.
For further information on reconciliations of Non-GAAP measures, refer to the Non-IFRS Measures section of the Company’s
Management’s Discussion & Analysis for the three and nine months ending September 30, 2022, beginning on page 18.
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 Endeavour’s anticipated
performance in 2023 including changes in mining operations and forecasts of production levels, anticipated production costs
and all-in sustaining costs, the timing and results of various activities including exploration and development, and the impact
of the COVID 19 pandemic on operations. 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
ultimate impact of the COVID 19 pandemic on operations and results, changes in production and costs guidance, 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 available at www.sedar.com.
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,
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.