-
News Releases
<< Back to all newsAugust 8, 2023
Endeavour Silver Announces Q2 2023 Financial Results; Earnings Call at 10AM PDT (1PM EDT) Today
VANCOUVER, British Columbia, Aug. 08, 2023 (GLOBE NEWSWIRE) -- 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 190,867,192 176,291,929 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 moc.revlisrde@regelemg.
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: moc.revlisrde@regelemg
Website: www.edrsilver.comFollow 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 R atios
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 Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce Expressed in thousands US dollars Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Gross silver sales $ 31,543 $ 13,698 $ 70,163 $ 55,582 Silver ounces sold 1,299,672 602,894 2,967,080 2,320,662 Realized silver price per ounces $ 24.27 $ 22.72 $ 23.65 $ 23.95 Expressed in thousands US dollars Three Months Ended June 30 Six Months Ended June 30 2023 2022 2023 2022 Gross gold sales $ 19,322 $ 18,021 $ 36,819 $ 34,531 Gold ounces sold 9,883 9,792 19,009 18,173 Realized gold price per ounces $ 1,955 $ 1,840 $ 1,937 $ 1,900 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 Project progress and timeline and the timing and results of various activities. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, production levels, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited to the completion of Societe Generale’s and ING Bank N.V.’s due diligence requirements in connection with the Terronera Project financing; the final terms of the financing and the Company’s ability to successfully drawdown funds thereunder; the ongoing effects of inflation and supply chain issues on Project economics; national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development; risks in obtaining necessary licenses and permits; and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the ability of the Company to successfully secure a debt facility, the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, the Project’s forecasted economics as of 2023, mining operations will operate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
Appendix
ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited – prepared by management)
(expressed in thousands of US dollars, except for shares and per share amounts)Three months ended Six months ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 Revenue $ 50,071 $ 30,782 $ 105,532 $ 88,522 Cost of sales: Direct production costs 25,478 19,828 51,994 46,549 Royalties 5,749 2,194 12,284 6,511 Share-based payments (294 ) 113 (162 ) 240 Depreciation, depletion and amortization 6,596 4,175 12,849 10,481 37,529 26,310 76,965 63,781 Mine operating earnings 12,542 4,472 28,567 24,741 Expenses: Exploration and evaluation 4,359 3,784 8,523 7,000 General and administrative 2,358 1,348 7,275 5,645 Care and maintenance costs - 189 - 379 Write off of mineral properties 435 500 435 500 7,152 5,821 16,233 13,524 Operating earnings (loss) 5,390 (1,349 ) 12,334 11,217 Finance costs 374 336 774 634 Other income (expense): Foreign exchange gain (loss) 1,855 (289 ) 3,744 522 Gain on asset disposal 5 - 67 - Investment and other (2,722 ) (6,872 ) 1,360 (1,052 ) (862 ) (7,161 ) 5,171 (530 ) Earnings (loss) before income taxes 4,154 (8,846 ) 16,731 10,053 Income tax expense: Current income tax expense 4,442 1,325 8,887 2,340 Deferred income tax expense 766 1,752 2,442 7,974 5,208 3,077 11,329 10,314 Net earnings (loss) and comprehensive earnings for the period $ (1,054 ) $ (11,923 ) $ 5,402 $ (261 ) Basic earnings (loss) per share based on net earnings $ (0.01 ) $ (0.07 ) $ 0.03 (0.00 ) Diluted earnings (loss) per share based on net earnings $ (0.01 ) $ (0.07 ) $ 0.03 (0.00 ) Basic weighted average number of shares outstanding 191,446,597 180,974,609 190,867,192 176,291,929 Diluted weighted average number of shares outstanding 191,446,597 184,569,970 192,811,731 179,018,499 ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(unaudited – prepared by management)
(expressed in thousands of US dollars)June 30, December 31, 2023 2022 ASSETS Current assets Cash and cash equivalents $ 43,504 $ 83,391 Other investments 8,136 8,647 Accounts and other receivables 17,567 13,136 Income tax receivable 166 4,024 Inventories 30,531 19,184 Prepaid expenses 25,524 16,951 Loans receivable 1,250 1,000 Total current assets 126,678 146,333 Non-current deposits 660 565 Non-current income tax receivable 3,570 3,570 Non-current other investments - 1,388 Non-current IVA receivable 14,695 10,154 Non-current loans receivable 2,186 2,729 Right-of-use leased assets 914 806 Mineral properties, plant and equipment 256,307 233,892 Total assets $ 405,010 $ 399,437 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 35,719 $ 39,831 Income taxes payable 7,289 6,616 Loans payable 5,000 6,041 Lease liabilities 431 261 Total current liabilities 48,439 52,749 Loans payable 6,361 8,469 Lease liabilities 810 812 Provision for reclamation and rehabilitation 9,574 7,601 Deferred income tax liability 15,386 12,944 Other non-current liabilities 1,063 968 Total liabilities 81,633 83,543 Shareholders' equity Common shares, unlimited shares authorized, no par value, issued, issuable and outstanding 191,505,299 shares (Dec 31, 2022 - 189,995,563 shares) 662,029 657,866 Contributed surplus 3,793 6,115 Retained earnings (deficit) (342,445 ) (348,087 ) Total shareholders' equity 323,377 315,894 Total liabilities and shareholders' equity $ 405,010 $ 399,437 ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(unaudited – prepared by management)
(expressed in thousands of US dollars)Three months ended Six months ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 Operating activities Net earnings (loss) for the period $ (1,054 ) $ (11,923 ) $ 5,402 $ (261 ) Items not affecting cash: Share-based compensation 415 972 2,040 2,499 Depreciation, depletion and amortization 6,973 4,324 13,592 10,786 Writte off of exploration properties 435 500 435 500 Deferred income tax expense 766 1,752 2,442 7,974 Unrealized foreign exchange loss (gain) 519 - (84 ) 1,614 - (220 ) Finance costs 374 336 774 634 Accretion of loans receivable (114 ) - (207 ) - Loss (gain) on asset disposal (5 ) 105 (67 ) 46 Loss on other investments 3,150 7,626 53 2,269 Performance and deferred share units settled in cash - - (2,118 ) - Net changes in non-cash working capital (6,606 ) (22,156 ) (19,508 ) (21,042 ) Cash from (used in) operating activities 4,853 (18,548 ) 4,452 3,185 Investing activities Proceeds on disposal of property, plant and equipment - 48 - 82 Mineral properties, plant and equipment (23,864 ) (15,451 ) (44,581 ) (28,448 ) Purchase of other investments - (748 ) - (2,119 ) Proceeds from disposal of other investments 1,846 - 1,846 - Redemption of (investment in) non-current deposits (163 ) 2 (95 ) 4 Cash used in investing activities (22,181 ) (16,149 ) (42,830 ) (30,481 ) Financing activities Repayment of loans payable (1,575 ) (1,214 ) (3,149 ) (2,297 ) Repayment of lease liabilities (86 ) (54 ) (149 ) (106 ) Interest paid (214 ) (204 ) (453 ) (381 ) Public equity offerings - - - 46,001 Exercise of options 641 1,448 2,453 1,578 Proceeds from loans receivable 400 - 500 - Share issuance costs - (15 ) (2,812 ) Performance and deferred share units witholding tax settlement - (6 ) (294 ) (1,903 ) Cash from (used in) financing activities (834 ) (45 ) (1,092 ) 40,080 Effect of exchange rate change on cash and cash equivalents 16 (46 ) (417 ) 139 Increase (decrease) in cash and cash equivalents (18,162 ) (34,742 ) (39,470 ) 12,784 Cash and cash equivalents, beginning of the period 61,650 151,014 83,391 103,303 Cash and cash equivalents, end of the period $ 43,504 $ 116,226 $ 43,504 $ 116,226
Cookies are used to make this website work and to enhance your experience. To learn more about the types of cookies this website uses, see our Cookie Policy. You can provide consent by clicking the "I Consent" button or by canceling this cookie notice.
Cookies are used to make this website work and to enhance your experience. To learn more about the types of cookies this website uses, see our Cookie Policy. We need your consent to use marketing cookies. Marketing cookies are used to track visitors across websites. The intention is to display ads (via third party services) that are relevant and engaging for individual users. Please select the checkbox below to indicate your consent.