Connect with us

Financing News

Retransmission – Endeavour Silver Announces Q2 2022 Financial Results; Raises 2022 Production Guidance

VANCOUVER, British Columbia, Aug. 09, 2022 (GLOBE NEWSWIRE) — This news release has been amended to reflect the correct estimate for the Company’s…

Share this article:

Published

on

VANCOUVER, British Columbia, Aug. 09, 2022 (GLOBE NEWSWIRE) — This news release has been amended to reflect the correct estimate for the Company’s 2022 All-in Sustaining Cost estimate of $20- $21 per ounce in the 2022 Revision to Guidance Section. Complete corrected text follows:

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, 2022. As a result of the Company’s strong operating performance, Management has raised its 2022 production guidance. All dollar amounts are in US dollars (US$).  

“We have continued to outperform our mine plans, by delivering an exceptional Q2 with production 15% above plan, stated Dan Dickson, CEO of Endeavour Silver. “This has prompted management to raise our production outlook for 2022 to 7.6 – 8.0 million silver equivalent ounces. The additional production has allowed us to maintain our cost guidance on per ounce metrics, but industry-wide inflation continues to be a challenge. We are seeing the largest inflationary impacts on energy costs, plant reagents and steel prices which are affecting both operating and development costs. Cost control will continue to be a key focus as cost pressures are expected to continue for the remainder of the year.”  

Added Mr. Dickson, “During the 2nd quarter, again we made the decision to withhold from sale a meaningful amount of silver, due to the drop in silver price. We are holding over 1.6 million silver equivalent ounces in finished goods inventory for future sale. Short term, the increased inventory has negatively impacted our quarterly financial metrics such as revenue, earnings, cash flow and our cash balance. Longer term, we anticipate selling the inventory at higher metal prices.”

Q2 2022 Highlights

  • Higher Production: 1,359,207 ounces (oz) of silver and 9,289 oz of gold for 2.1 million oz silver equivalent (AgEq)(1) reinforces delivery of improved consolidated production for the year.
  • Lower Revenue Due to Withholding Metal Sales: Revenue of $30.8 million from the sale of 602,894 oz of silver and 9,792 oz of gold at average realized prices of $22.72 per oz silver and $1,840 per oz gold.
  • Negative Earnings and Lower Cash Flow Due to Lower Revenue and Non-Cash Items: Net loss of $11.9 million, or $0.07 per share. Adjusted net loss of $4.3 million(2) after adjusting for a $7.6 million change in the fair value of investments. $3.6 million in operating cash flow before working capital changes(2) and Mine operating cash flow before taxes(2) of $8.8 million.
  • Operating Costs per Ounce In-Line with Guidance, Despite Industry-Wide Inflation: Cash costs(2) of $10.08 per oz payable silver and all-in sustaining costs(2) of $19.56 per oz payable silver, net of gold credits.
  • Healthy Balance Sheet: Cash position of $116.2 million and working capital(2) of $149.7 million.
  • Guanacevi Continued to Outperform: Production exceeded plan driven by higher grades.
  • Bolañitos Remained Steady: Strong silver production from higher silver grades and increased throughput were offset by lower gold production and lower gold grades.
  • Withheld Significant Metal Inventories: Metal inventory at quarter end totaled 1,399,356 oz silver and 2,580 oz gold of bullion inventory and 12,408 oz silver and 587 oz gold in concentrate inventory. The market value of finished goods at June 30, 2022 was $34.5 million.
  • Advancing the Terronera Project: Work continued on the early works program initiated last year including engineering, critical contracts, procurement of long-lead items and extensive due diligence on the project financing. 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. $18 million has been spent as of June 30th 2022, with an additional budget of $23 million expected to be spent through to the end of October to continue the advancement of the project.

Subsequent to Quarter End

  • Closed the Acquisition of the Pitarrilla Project: The addition of the Pitarrilla project enhances the company’s growth profile while maintaining a silver focus.

Revision to Full Year 2022 Guidance

The following table summarizes the updated 2022 Production Guidance for Endeavour Silver:

    Guanacevi Bolanitos Consolidated
Tonnes per day tpd 1,100 – 1,200 1,000 – 1,200 2,100 – 2,400
Silver production M oz 4.3 – 4.5 0.6 – 0.6 4.9 – 5.1
Gold production k oz 13.0 – 14.0 21.0 – 22.0 34.0 – 36.0
Silver Eq production1 US$/oz 5.3 – 5.6 2.3 – 2.4 7.6 – 8.0
Cash costs, net of gold by-product credits2 US$/oz     $9.00 – $10.00
AISC, net of gold by-product credits2 US$/oz     $20.00 – $21.00
  • Consolidated Silver Equivalent(1) Production has increased to 7.6 – 8.0 million oz from 6.7 – 7.6 million oz. The increase to consolidated production is primarily driven by higher than planned ore-grades along the El Curso orebody at Guanacevi. Production at Bolanitos has been slightly revised upwards to meet the upper end of its previous guidance.
  • Operating Costs Guidance is expected to remain unchanged with cash costs expected to average $9.00 – $10.00 per oz and AISC are expected to average $20.00 – $21.00 per oz. Management notes that the Company is tracking to meet the upper end of the guidance range, given persisting global inflationary pressures. Increases in prices of raw materials such as reagents, explosives, steel, diesel and power are driving continued cost escalation across the industry. The company has identified efficiencies to mitigate pressure on costs and cost metrics in the second half of the year, including enhanced monitoring and tracking at the mines, improved blasting in development, the gradual increase of tonnes milled and reduced waste handling at Guanacevi.

Financial Overview (see appendix for consolidated financial statements)

Three Months Ended June 30 Q2 2022 Highlights

Six Months Ended June 30
2022   2021 % Change 2022   2021   % Change
      Production      
1,359,207   1,073,724 27%   Silver ounces produced 2,674,162   2,121,824   26%  
9,289   11,166 (17%)   Gold ounces produced 17,984   22,275   (19%)  
1,346,276   1,062,267 27%   Payable silver ounces produced 2,649,816   2,098,977   26%  
9,117   10,955 (17%)   Payable gold ounces produced 17,666   21,849   (19%)  
2,102,327   1,967,004 7%   Silver equivalent ounces produced(1) 4,112,882   3,903,824   5%  
10.08   13.03 (23%)   Cash costs per silver ounce(2) 10.14   10.48   (3%)  
14.26   19.55 (27%)   Total production costs per ounce(2) 14.69   17.51   (16%)  
19.56   25.39 (23%)   All-in sustaining costs per ounce (2) 20.22   22.69   (11%)  
201,361   242,018 (17%)   Processed tonnes 407,508   451,471   (10%)  
132.63   119.94 11%   Direct operating costs per tonne(2) 127.69   116.43   10%  
148.11   141.61 5%   Direct costs per tonne(2) 148.32   134.48   10%  
14.12   18.52 (24%)   Silver co-product cash costs(2) 14.74   16.89   (13%)  
1,144   1,289 (11%)   Gold co-product cash costs(2) 1,169   1,116   5%  
      Financial      
30.8   47.7 (35%)   Revenue ($ millions) 88.5   82.2   8%  
602,894   1,120,266 (46%)   Silver ounces sold 2,320,662   1,743,645   33%  
9,792   9,810 (0%)   Gold ounces sold 18,173   20,473   (11%)  
22.72   26.82 (15%)   Realized silver price per ounce 23.95   26.95   (11%)  
1,840   1,866 (1%)   Realized gold price per ounce 1,900   1,781   7%  
(11.9)   6.7 (279%)   Net earnings (loss) ($ millions) (0.3)   18.9   (101%)  
(4.3)   2.4 (280%)   Adjusted net earnings (loss) (2) ($ millions) 2.0   (3.7)   155%  
4.5   10.2 56%   Mine operating earnings ($ millions) 24.7   15.9   56%  
8.8   17.2 (49%)   Mine operating cash flow before taxes ($ millions)(2) 35.5   30.5   16%  
3.6   8.7 (58%)   Operating cash flow before working capital changes(2) 24.2   13.9   74%  
(4.3)   15.9 (127%)   EBITDA(2) ($ millions) 21.3   39.8   (47%)  
149.7   146.8 2%   Working capital (2) ($ millions) 149.7   146.8   2%  
      Shareholders      
(0.07)   0.04 (275%)   Earnings (loss) per share – basic ($) 0.00   0.12   (100%)  
0.02   0.05 (61%)   Operating cash flow before working capital changes per share(2) 0.14   0.08   62%  
180,974,609   168,383,755 7%   Weighted average shares outstanding 176,291,929   164,051,368   7%  

(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, 2022, net revenue, decreased by 35% to $30.8 million (Q2 2021: $47.7 million).

Gross sales of $31.7 million in Q2 2022 represented a 34% decrease over the $48.3 million in Q2 2021. Silver oz sold decreased by 46%, due to the buildup of the larger finished goods inventory held at June 30, 2022. There was a 15% decrease in the realized silver price, resulting in a 54% decrease in proceeds from silver sales. Gold oz sold were flat with a 1% decrease in the realized gold price, resulting in a 1% decrease in proceeds from gold sales. During the period, the Company sold 602,894 oz silver and 9,792 oz gold for realized prices of $22.72 and $1,840 per oz, respectively, compared to Q2 2021 sales of 1,120,266 oz silver and 9,810 oz gold for realized prices of $26.82 and $1,866 per oz, respectively. In Q2 2022, London spot prices for silver and gold averaged $22.60 and $1,877, respectively.

The Company significantly increased its finished goods silver inventory and slightly decreased its finished goods gold inventory to 1,411,764 oz and 3,167 oz, respectively, at June 30, 2022 compared to 668,382 oz silver and 3,841 oz gold at March 31, 2022. The cost allocated to these finished goods was $20.8 million at June 30, 2022 compared to $13.5 million at March 31, 2022. At June 30, 2022, the finished goods inventory fair market value was $34.5 million, compared to $24.1 million at March 31, 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 Q2 2022.

After cost of sales of $26.3 million (Q2 2021 – $37.5 million), a decrease of 30%, mine operating earnings were $4.5 million (Q2 2021 – $10.2 million). The decrease in cost of sales was impacted by the decrease in the quantity of silver ounces sold during the period offset by increased labour, power and consumables costs with lower royalty costs. Royalties decreased 49% to $2.2 million primarily due to the decrease in silver ounces sold during the period.

The Company had an operating loss of $1.3 million (Q2 2021: operating earnings of $0.8 million) after exploration and evaluation costs of $3.8 million (Q2 2021: $5.0 million), general and administrative costs of $1.3 million (Q2 2021: $4.3 million) a write off of exploration properties of $0.5 million (Q2, 2021 – $Nil), and care and maintenance cost of $0.2 million (Q2 2021: $0.1 million).

The loss before income taxes was $8.8 million (Q2 2021: earnings before taxes of $8.9 million) after finance costs of $0.3 million (Q2 2021: $0.2 million), a foreign exchange loss of $0.3 million (Q2 2021: gain of $0.7 million), and investment and other expense of $6.9 million (Q2 2021: investment and other income of $1.8 million). The investment and other expenses during Q2 2022 primarily resulted from an unrealized loss on marketable securities and warrants of $7.6 million (Q2 2021: $1.5 million).

The Company realized a net loss for the period of $11.9 million (Q2 2021: net earnings of $6.7 million) after an income tax expense of $3.1 million (Q2 2021: $2.2 million).   Current income tax expense increased to $1.3 million (Q2 2021 – $1.1 million) due to increased profitability impacting the income tax and special mining duty, while deferred income tax expense of $1.8 million is primarily due to the estimated use of loss carryforwards to reduce taxable income generated at both Guanacevi and Bolanitos (Q2 2021 – $1.1 million).

Direct operating costs(2) on a per tonne basis increased to $132.63, up 11% compared with Q2 2021 due to higher operating costs at Guanaceví and Bolañitos. 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, decreased to $10.08 driven by increased silver grades, reduced royalty costs and increased by-product gold sales, offset by increased direct operating costs per tonne(2)    AISC(2) decreased by 23% on a per oz basis compared to Q2 2021 as a result of a 27% increase in ounces produced driven by a 51% increase in silver grade, decreased allocated general and administrative costs and a decrease in mine site exploration offset by increased 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 Q2 2022 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 9, 2022 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 9151#. The replay will also be available on the Company’s website at www.edrsilver.com.

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 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 June 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 June 30, 2022 MD&A available on SEDAR at www.sedar.com.

Reconciliation of Working Capital 

Expressed in thousands US dollars As at June 30, 2022 As at December 31, 2021
         
Current assets   $ 186,454     $ 161,762  
Current liabilities     36,733       40,554  
Working capital   $ 149,721     $ 121,208  
         
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)   2022     2021     2022     2021  
Net earnings (loss) for the period per financial statements ($ 11,923 ) $ 6,656   ($ 261 ) $ 18,905  
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 )       (5,807 )
Change in fair value of investments   7,626     1,539     2,269     9  
Adjusted net earnings (loss) ($ 4,297 ) $ 2,388   $ 2,008   ($ 3,684 )
Basic weighted average share outstanding   180,974,609     168,383,755     176,291,929     164,051,368  
Adjusted net earnings (loss) per share ($ 0.02 ) $ 0.01   $ 0.01   ($ 0.02 )
         
Reconciliation of Mine Operating Cash Flow Before Taxes
     
Expressed in thousands US dollars Three Months Ended June 30 Six Months Ended June 30
    2022     2021     2022     2021  
Mine operating earnings per financial statements $ 4,472   $ 10,205   $ 24,741   $ 15,869  
Share-based compensation   113     111     240     229  
Amortization and depletion   4,175     6,624     10,481     14,120  
Write down of inventory to net realizable value       272         272  
Mine operating cash flow before taxes $ 8,760   $ 17,212   $ 35,462   $ 30,490  
         
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)   2022     2021     2022     2021  
Cash from (used in) operating activities per financial statements ($ 18,548 ) $ 9,467   $ 3,185   $ 5,544  
Net changes in non-cash working capital per financial statements   (22,160 )   806     (21,046 )   (8,360 )
Operating cash flow before working capital changes $ 3,612   $ 8,661   $ 24,231   $ 13,904  
Basic weighted average shares outstanding   180,974,609     168,383,755     176,291,929     164,051,368  
Operating cash flow before working capital changes per share $ 0.02   $ 0.05   $ 0.14   $ 0.08  
         
Reconciliation of EBITDA and Adjusted EBITDA    
         
Expressed in thousands US dollars Three Months Ended June 30 Six Months Ended June 30
    2022     2021     2022     2021  
Net income for the period per financial statements ($ 11,923 ) $ 6,656   ($ 261 ) $ 18,905  
Depreciation and depletion – cost of sales   4,175     6,624     10,481     14,120  
Depreciation and depletion – exploration   98     72     205     151  
Depreciation and depletion – general & administration   51     38     99     72  
Depreciation and depletion – care & maintenance   30     (11 )   60     4  
Depreciation and depletion – inventory write down       6         6  
Finance costs   212     216     389     507  
Current income tax expense   1,325     1,146     2,340     1,817  
Deferred income tax expense   1,752     1,116     7,974     4,243  
EBITDA ($ 4,280 ) $ 15,863   $ 21,287   $ 39,825  
Share based compensation   972     1,028     2,499     2,193  
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 )       (5,807 )
Change in fair value of investments   7,626     1,539     2,269     9  
Adjusted EBITDA $ 4,318   $ 12,623   $ 26,055   $ 19,429  
Basic weighted average shares outstanding   180,974,609     168,383,755     176,291,929     164,051,368  
Adjusted EBITDA per share $ 0.02   $ 0.07   $ 0.15   $ 0.12  

 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, 2022 Three Months Ended June 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Direct production costs per financial statements $ 7,797   $ 12,031   $ 19,828   $ 15,713   $ 7,770   $ 2,740   $ 26,223  
Smelting and refining costs included in net revenue       937     937         514     68     582  
Opening finished goods   (7,908 )   (2,995 )   (10,903 )   (5,935 )   (204 )   (442 )   (6,581 )
Finished goods NRV adjustment                       266     266  
Closing finished goods   16,164     681     16,845     6,985     408     1,145     8,538  
Direct operating costs   16,053     10,654     26,707     16,763     8,488     3,777     29,028  
Royalties   2,128     66     2,194     4,158     70     112     4,340  
Special mining duty (1)   795     127     922     684     257     (38 )   903  
Direct costs   18,976     10,847     29,823     21,605     8,815     3,851     34,271  
By-product gold sales   (5,719 )   (12,302 )   (18,021 )   (4,209 )   (11,909 )   (2,187 )   (18,305 )
Opening gold inventory fair market value   3,724     3,763     7,487     1,925     309     662     2,896  
Closing gold inventory fair market value   (4,662 )   (1,061 )   (5,723 )   (3,349 )   (633 )   (1,038 )   (5,020 )
Cash costs net of by-product   12,319     1,247     13,566     15,972     (3,418 )   1,288     13,842  
Amortization and depletion   940     3,235     4,175     2,487     3,800     337     6,624  
Share-based compensation   57     56     113     54     51     6     111  
Opening finished goods depreciation and depletion   (1,689 )   (897 )   (2,586 )   (1,137 )   (118 )   (133 )   (1,388 )
NRV depreciation cost adjustment                       6      
Closing finished goods depreciation and depletion   3,733     199     3,932     1,333     220     30     1,583  
Total production costs $ 15,360   $ 3,840   $ 19,200   $ 18,709   $ 535   $ 1,534   $ 20,772  
               
 

Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Throughput tonnes   94,017     107,344     201,361     111,893     107,912     22,213     242,018  
Payable silver ounces   1,190,568     155,708     1,346,276     936,424     112,456     13,387     1,062,267  
               
Cash costs per silver ounce $ 10.35   $ 8.01   $ 10.08   $ 17.06   ($ 30.39 ) $ 96.21   $ 13.03  
Total production costs per ounce $ 12.90   $ 24.66   $ 14.26   $ 19.98   $ 4.76   $ 114.59   $ 19.55  
Direct operating costs per tonne $ 170.75   $ 99.25   $ 132.63   $ 149.81   $ 78.66   $ 170.04   $ 119.94  
Direct costs per tonne $ 201.84   $ 101.05   $ 148.11   $ 193.09   $ 81.69   $ 173.37   $ 141.61  
               
Expressed in thousands US dollars Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Direct production costs per financial statements $ 25,681   $ 20,868   $ 46,549   $ 23,773   $ 14,875   $ 6,303   $ 44,951  
Smelting and refining costs included in net revenue       1,591     1,591         1,003     206     1,209  
Opening finished goods   (10,093 )   (2,857 )   (12,950 )   (1,509 )   (250 )   (642 )   (2,401 )
Finished goods NRV adjustment                       266     266  
Closing finished goods   16,164     681     16,845     6,985     408     1,145     8,538  
Direct operating costs   31,752     20,283     52,035     29,249     16,036     7,278     52,563  
Royalties   6,362     149     6,511     6,371     138     291     6,800  
Special mining duty (1)   1,526     371     1,897     941     408         1,349  
Direct costs   39,640     20,803     60,443     36,561     16,582     7,569     60,712  
By-product gold sales   (10,741 )   (23,790 )   (34,531 )   (7,673 )   (22,438 )   (6,352 )   (36,463 )
Opening gold inventory fair market value   1,900     4,784     6,684     735     746     1,283     2,764  
Closing gold inventory fair market value   (4,662 )   (1,061 )   (5,723 )   (3,349 )   (633 )   (1,038 )   (5,020 )
Cash costs net of by-product   26,137     736     26,873     26,274     (5,743 )   1,462     21,993  
Amortization and depletion   4,850     5,631     10,481     4,080     7,593     2,447     14,120  
Share-based compensation   120     120     240     93     91     45     229  
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   3,733     199     3,932     1,333     220     30     1,583  
Total production costs $ 32,875   $ 6,051   $ 38,926   $ 31,509   $ 2,057   $ 3,186   $ 36,752  
               
 

Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Throughput tonnes   195,270     212,238     407,508     200,525     205,604     45,342     451,471  
Payable silver ounces   2,321,016     328,800     2,649,816     1,851,886     211,444     35,647     2,098,977  
               
Cash costs per silver ounce $ 11.26   $ 2.24   $ 10.14   $ 14.19   ($ 27.16 ) $ 41.01   $ 10.48  
Total production costs per ounce $ 14.16   $ 18.40   $ 14.69   $ 17.01   $ 9.73   $ 89.38   $ 17.51  
Direct operating costs per tonne $ 162.61   $ 95.57   $ 127.69   $ 145.86   $ 77.99   $ 160.51   $ 116.43  
Direct costs per tonne $ 203.00   $ 98.02   $ 148.32   $ 182.33   $ 80.65   $ 166.93   $ 134.48  

Expressed in thousands US dollars June 30, 2022 June 30, 2021
Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Closing finished goods   16,164   681   16,845   6,985   408   1,145   8,538
Closing finished goods depletion   3,733   199   3,932   1,333   220   30   1,583
Finished goods inventory $ 19,897 $ 880 $ 20,777 $ 8,318 $ 628 $ 1,175 $ 10,121

Reconciliation of All-In Costs Per Ounce and AISC per ounce

Expressed in thousands US dollars Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
  Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Cash costs net of by-product $ 12,319   $ 1,247 $ 13,566   $ 15,972 ($ 3,418 ) $ 1,288   $ 13,842
Operations share-based compensation   57     56   113     39   40     39     118
Corporate general and administrative   401     155   556     2,013   1,093     277     3,383
Corporate share-based compensation   527     214   741     460   250     64     773
Reclamation – amortization/accretion   69     53   122     13   11     3     27
Mine site expensed exploration   360     308   668     538   305     2     845
Intangible payments   (0 )   0   (0 )   80   29     (16 )   94
Equipment loan payments   246     488   734     300   524         824
Capital expenditures sustaining   7,050     2,788   9,838     3,696   3,366         7,062
All-In-Sustaining Costs $ 21,028   $ 5,310 $ 26,338   $ 23,112 $ 2,200   $ 1,656   $ 26,968
Growth exploration and evaluation       2,901           3,963
Growth capital expenditures       5,613           1,102
All-In-Costs     $ 34,852         $ 32,033
               
  Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
  Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Throughput tonnes   94,017     107,344   201,361     111,893   107,912     22,213     242,018
Payable silver ounces   1,190,568     155,708   1,346,276     936,424   112,456     13,387     1,062,267
Silver equivalent production (ounces)   1,488,550     613,777   2,102,327     1,185,961   660,284     120,759     1,967,004
               
Sustaining cost per ounce $ 17.66   $ 34.10 $ 19.56   $ 24.68 $ 19.56   $ 123.73   $ 25.39
All-In-costs per ounce     $ 25.89         $ 30.16
               
Expressed in thousands US dollars Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
  Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Cash costs net of by-product $ 26,137   $ 736 $ 26,873   $ 26,274 ($ 5,743 ) $ 1,462   $ 21,993
Operations share-based compensation   120     120   240     93   91     45     229
Corporate general and administrative   2,468     1,031   3,499     3,622   1,966     498     6,086
Corporate share-based compensation   1,444     603   2,047     987   536     136     1,658
Reclamation – amortization/accretion   134     106   240     25   22     5     52
Mine site expensed exploration   712     558   1,270     994   539     195     1,728
Intangible payments   29     12   41     111   60     15     187
Equipment loan payments   491     977   1,468     608   1,092         1,700
Capital expenditures sustaining   12,696     5,214   17,910     7,900   6,100         14,000
All-In-Sustaining Costs $ 44,230   $ 9,358 $ 53,588   $ 40,615 $ 4,663   $ 2,355   $ 47,633
Growth exploration and evaluation       5,314           6,970
Growth capital expenditures       10,538           1,434
All-In-Costs     $ 69,440         $ 56,037
               
  Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
  Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Throughput tonnes   195,270     212,238   407,508     200,525   205,604     45,342     451,471
Payable silver ounces   2,321,016     328,800   2,649,816     1,851,886   211,444     35,647     2,098,977
Silver equivalent production (ounces)   2,900,560     1,212,322   4,112,882     2,323,618   1,261,071     319,135     3,903,824
               
Sustaining cost per ounce $ 19.06   $ 28.46 $ 20.22   $ 21.93 $ 22.05   $ 66.07   $ 22.69
All-In-costs per ounce     $ 26.21         $ 26.70

Reconciliation of Sustaining Capital and Growth Capital  

Expressed in thousands US dollars Three Months Ended June 30 Six Months Ended June 30
  2022   2021   2022   2021
Capital expenditures sustaining $ 9,838 $ 7,062 $ 17,910 $ 14,000
Growth capital expenditures   5,613   1,102   10,538   1,434
Property, plant and equipment expenditures per Consolidated Statement of Cash Flows $ 15,451 $ 8,164 $ 28,448 $ 15,434

Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs    

Expressed in thousands US dollars Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
  Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Direct production costs per financial statements $ 7,797   $ 12,031   $ 19,828   $ 15,713   $ 7,770   $ 2,740   $ 26,223  
Smelting and refining costs included in net revenue       937     937         514     68     582  
Royalties   2,128     66     2,194     4,158     70     112     4,340  
Special mining duty (1)   795     127     922     684     257     (38 )   903  
Opening finished goods   (7,908 )   (2,995 )   (10,903 )   (5,935 )   (204 )   (442 )   (6,581 )
Finished goods NRV adjustment                       266     266  
Closing finished goods   16,164     681     16,845     6,985     408     1,145     8,538  
Direct costs $ 18,976   $ 10,847   $ 29,823   $ 21,605   $ 8,815   $ 3,851   $ 34,271  
               
  Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
  Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Silver production (ounces)   1,194,150     165,057     1,359,207     939,241     120,044     14,439     1,073,724  
Average realized silver price ($)   22.72     22.72     22.72     26.82     26.82     26.82     26.82  
Silver value ($)   27,131,580     3,750,163     30,881,743     25,186,472     3,219,073     387,193     28,792,738  
               
Gold production (ounces)   3,680     5,609     9,289     3,084     6,753     1,329     11,166  
Average realized gold price ($)   1,840     1,840     1,840     1,866     1,866     1,866     1,866  
Gold value ($)   6,772,598     10,322,691     17,095,289     5,754,599     12,600,781     2,479,852     20,835,232  
               
Total metal value ($)   33,904,178     14,072,854     47,977,032     30,941,072     15,819,854     2,867,045     49,627,970  
Pro-rated silver costs (%)   80 %   27 %   64 %   81 %   20 %   14 %   58 %
Pro-rated gold costs (%)   20 %   73 %   36 %   19 %   80 %   86 %   42 %
               
Pro-rated silver costs ($)   15,185     2,891     19,196     17,587     1,794     520     19,883  
Pro-rated gold costs ($)   3,791     7,956     10,627     4,018     7,021     3,331     14,388  
               
Silver co-product cash costs ($)   12.72     17.51     14.12     18.72     14.94     36.02     18.52  
Gold co-product cash costs ($)   1,030     1,419     1,144     1,303     1,040     2,506     1,289  
               
Expressed in thousands US dollars Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
  Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Direct production costs per financial statements $ 25,681   $ 20,868   $ 46,549   $ 23,773   $ 14,875   $ 6,303   $ 44,951  
Smelting and refining costs included in net revenue     $ 1,591   $ 1,591         1,003     206     1,209  
Royalties   6,362     149     6,511     6,371     138     291     6,800  
Special mining duty (1)   1,526     371     1,897     941     408         1,349  
Opening finished goods   (10,093 )   (2,857 )   (12,950 )   (1,509 )   (250 )   (642 )   (2,401 )
Finished goods NRV adjustment                       266     266  
Closing finished goods   16,164     681     16,845     6,985     408     1,145     8,538  
Direct costs   39,640     20,803     60,443     36,561     16,582     7,569     60,712  
               
  Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
  Guanaceví Bolañitos Total Guanaceví Bolañitos El Compas Total
Silver production (ounces)   2,328,000     346,162     2,674,162     1,857,458     226,271     38,095     2,121,824  
Average realized silver price ($)   23.95     23.95     23.95     26.95     26.95     26.95     26.95  
Silver value ($)   55,757,752     8,290,900     64,048,652     50,053,984     6,097,454     1,026,568     57,178,006  
               
Gold production (ounces)   7,157     10,827     17,984     5,827     12,935     3,513     22,275  
Average realized gold price ($)   1,900     1,900     1,900     1,781     1,781     1,781     1,781  
Gold value ($)   13,599,206     20,572,670     34,171,876     10,378,054     23,037,606     6,256,754     39,672,414  
               
Total metal value ($)   69,356,958     28,863,570     98,220,528     60,432,038     29,135,060     7,283,321     96,850,420  
Pro-rated silver costs (%)   80 %   29 %   65 %   83 %   21 %   14 %   59 %
Pro-rated gold costs (%)   20 %   71 %   35 %   17 %   79 %   86 %   41 %
               
Pro-rated silver costs ($)   31,868     5,976     39,414     30,282     3,470     1,067     35,843  
Pro-rated gold costs ($)   7,772     14,827     21,029     6,279     13,112     6,502     24,869  
               
Silver co-product cash costs ($)   13.69     17.26     14.74     16.30     15.34     28.00     16.89  
Gold co-product cash costs ($)   1,086     1,369     1,169     1,078     1,014     1,851     1,116  

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
  2022   2021   2022   2021
Gross silver sales $ 13,698 $ 30,052 $ 55,582 $ 46,987
Silver ounces sold   602,894   1,120,266   2,320,662   1,743,645
Realized silver price per ounces $ 22.72 $ 26.82 $ 23.95 $ 26.95
         
Expressed in thousands US dollars

Three Months Ended June 30 Six Months Ended June 30
  2022   2021   2022   2021
Gross gold sales $ 18,021 $ 18,305 $ 34,531 $ 36,463
Gold ounces sold   9,792   9,810   18,173   20,473
Realized gold price per ounces $ 1,840 $ 1,866 $ 1,900 $ 1,781

 
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 2022 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 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.

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.

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,
      2022       2021     2022       2021  
                 
Revenue   $ 30,782     $ 47,775   $ 88,522     $ 82,241  
                 
Cost of sales:                
Direct production costs     19,828       26,223     46,549       44,951  
Royalties     2,194       4,340     6,511       6,800  
Share-based payments     113       111     240       229  
Depreciation, depletion and amortization     4,175       6,624     10,481       14,120  
Write down of inventory to net realizable value           272           272  
      26,310       37,570     63,781       66,372  
                 
Mine operating earnings     4,472       10,205     24,741       15,869  
                 
Expenses:                
Exploration and evaluation     3,784       5,025     7,000       9,155  
General and administrative     1,348       4,293     5,645       7,816  
Care and maintenance costs     189       55     379       576  
Impairment (reversal of impairment) of non-current assets, net                     (16,791 )
Write off of exploration properties     500           500        
                 
      5,821       9,373     13,524       756  
                 
Operating earnings (loss)     (1,349 )     832     11,217       15,113  
                 
Finance costs     336       216     634       507  
                 
Other income (expense):                
Foreign exchange     (289 )     659     522       (35 )
Gain on asset disposal           5,841           5,841  
Investment and other     (6,872 )     1,802     (1,052 )     4,553  
      (7,161 )     8,302     (530 )     10,359  
                 
Earnings (loss) before income taxes     (8,846 )     8,918     10,053       24,965  
                 
Income tax expense:                
Current income tax expense     1,325       1,146     2,340       1,817  
Deferred income tax expense     1,752       1,116     7,974       4,243  
      3,077       2,262     10,314       6,060  
                 
Net earnings (loss) and comprehensive earnings (loss) for the period   $ (11,923 )   $ 6,656   $ (261 )   $ 18,905  
                 
                 
Basic earnings (loss) per share based on net earnings $ (0.07 )   $ 0.04   $ (0.00 )   $ 0.12  
Diluted earnings (loss) per share based on net earnings $ (0.07 )   $ 0.04   $ (0.00 )   $ 0.11  
                 
Basic weighted average number of shares outstanding   180,974,609       168,383,755     176,291,929       164,051,368  
Diluted weighted average number of shares outstanding   184,569,970       172,195,942     179,018,499       167,743,113  

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(unaudited – prepared by management)
(expressed in thousands of US dollars)

         
    June 30,   December 31,
      2022       2021  
         
ASSETS        
         
Current assets        
Cash and cash equivalents   $ 116,226     $ 103,303  
Other investments     8,293       11,200  
Accounts and other receivable     13,486       14,462  
Income tax receivable     1,219       177  
Inventories     35,664       27,485  
Prepaid expenses     11,566       5,135  
Total current assets     186,454       161,762  
         
Non-current deposits     595       599  
Non-current income tax receivable     3,570       3,570  
Non-current other investments     2,943        
Non-current IVA receivable     7,528       4,256  
Deferred income tax asset           936  
Intangible assets           40  
Right-of-use leased assets     614       664  
Mineral properties, plant and equipment     141,806       122,197  
Total assets   $ 343,510     $ 294,024  
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
         
Current liabilities        
Accounts payable and accrued liabilities   $ 26,383     $ 31,991  
Income taxes payable     4,995       4,228  
Loans payable     5,179       4,128  
Lease liabilities     176       207  
Total current liabilities     36,733       40,554  
         
Loans payable     7,392       6,366  
Lease liabilities     755       794  
Provision for reclamation and rehabilitation     7,576       7,397  
Deferred income tax liability     8,545       1,506  
Total liabilities     61,001       56,617  
         
Shareholders’ equity        
Common shares, unlimited shares authorized, no par value, issued        
and outstanding 181,051,354 shares (Dec 31, 2021 – 170,537,307 shares)   631,751       585,406  
Contributed surplus     5,349       6,331  
Retained earnings (deficit)     (354,591 )     (354,330 )
Total shareholders’ equity     282,509       237,407  
Total liabilities and shareholders’ equity   $ 343,510     $ 294,024  
         

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,
        2022       2021       2022       2021  
                   
Operating activities                  
Net earnings (loss) for the period     $ (11,923 )   $ 6,656     $ (261 )   $ 18,905  
                   
Items not affecting cash:                  
Share-based compensation       972       1,028       2,499       2,193  
Depreciation, depletion and amortization       4,324       6,723       10,786       14,347  
Impairment (reversal of impairment) of non-current assets, net                         (16,791 )
Write off of exploration properties       500             500        
Deferred income tax expense       1,752       1,116       7,974       4,243  
Unrealized foreign exchange loss (gain)       (84 )   (143 )     (220 )   (53 )
Finance costs       336       216       634       507  
Write down of inventory to net realizable value             272             272  
Loss (gain) on asset disposal       105       (5,841 )     46       (5,807 )
Loss (gain) on other investments       7,626       (1,366 )     2,269       (3,912 )
Net changes in non-cash working capital       (22,156 )     806       (21,042 )     (8,360 )
Cash from (used in) operating activities       (18,548 )     9,467       3,185       5,544  
                   
                   
Investing activities                  
Proceeds on disposal of property, plant and equipment     48       6,985       82       7,541  
Mineral property, plant and equipment       (15,451 )     (8,164 )     (28,448 )     (15,434 )
Purchase of investments       (748 )           (2,119 )     (832 )
Proceeds from disposal of marketable securities             4,905             9,288  
Redemption of (investment in) non-current deposits     2       19       4       (1 )
Cash from (used) in investing activities       (16,149 )     3,745       (30,481 )     562  
                   
                   
Financing activities                  
Repayment of loans payable       (1,214 )     (918 )     (2,297 )     (1,887 )
Repayment of lease liabilities       (54 )     (43 )     (106 )     (85 )
Interest paid       (204 )     (174 )     (381 )     (367 )
Public equity offerings             29,034       46,001       59,134  
Exercise of options       1,448       785       1,578       4,583  
Share issuance costs       (15 )     (664 )     (2,812 )     (1,266 )
Deferred share unit redemption       (6 )           (6 )      
Performance share unit redemption             (2,174 )     (1,897 )     (2,174 )
Cash from (used) financing activities       (45 )     25,846       40,080       57,938  
                   
Effect of exchange rate change on cash and cash equivalents       (46 )     144       139       64  
                   
Increase (decrease) in cash and cash equivalents     (34,742 )     39,058       12,784       64,044  
Cash and cash equivalents, beginning of the period     151,014       85,989       103,303       61,083  
Cash and cash equivalents, end of the period     $ 116,226     $ 125,191     $ 116,226     $ 125,191  
                   

 

financing
investment
acquisition
tsx-edr
endeavour-silver-corp
endeavour silver corp
press-release

Share this article:

Financing News

Battery Mineral Resources Corp. Announces the Filing of its NI 43-101 Technical Report for the Resource Estimate at its Punitaqui Copper Mine

Vancouver, British Columbia–(Newsfile Corp. – October 3, 2022) – Battery Mineral Resources Corp. (TSXV: BMR) ("BMR" "Battery" or the "Company") is very…

Share this article:

Continue Reading
News Releases

GoviEx Announces $5 Million Bought Deal Private Placement Financing

Vancouver, British Columbia–(Newsfile Corp. – October 3, 2022) – GoviEx Uranium Inc. (TSXV: GXU) (OTCQB: GVXXF) (the "Company"), is pleased to announce…

Share this article:

Continue Reading
News Releases

CANADA CARBON CLOSES PRIVATE PLACEMENT OF FLOW-THROUGH UNITS

NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES Toronto, ON, Canada, Oct. 03, 2022 (GLOBE NEWSWIRE) — Canada Carbon Inc. (the "Company")…

Share this article:

Continue Reading

Trending