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Endeavour Silver Announces Q1 2023 Financial Results; Earnings Call at 10AM PDT (1PM EDT) Today

Endeavour Silver Corporation
Endeavour Silver Corporation

VANCOUVER, British Columbia, May 10, 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 months ended March 31, 2023. All dollar amounts are in US dollars (US$).

“We are pleased to report a solid start this year with consolidated production expected to meet full year guidance,” stated Dan Dickson, CEO of Endeavour Silver. “Guanacevi continues to perform well, generating strong operating cash flow which we are reinvesting in the business. Industry-wide inflation pressures continue to persist, which combined with a strengthening Mexican Peso, are increasing our operating costs. We are working to manage our inputs in order to offset these cost pressures as we pursue productivity and efficiency initiatives.

Added Mr. Dickson, “On April 18, 2023, we reached a key milestone with the announcement of the project financing commitment of $120 million and a subsequent formal construction decision at Terronera. The successful execution of this underground mine development and mill is integral to achieving our growth goal to nearly double our production by 2025 and transform our cost profile. With a seasoned team of development personnel, we are moving forward confidently and look forward to establishing an exciting future for our stakeholders.”

ANNUNCIO PUBBLICITARIO

Q1 2023 Highlights

  • Production Tracking Towards Upper Range of Guidance: 1,623,545 ounces (oz) of silver and 9,342 oz of gold for 2.4 million oz silver equivalent (AgEq)(1).

  • Revenue: $55.5 million from the sale of 1,667,408 oz of silver and 9,126 oz of gold at average realized prices of $23.16 per oz silver and $1,917 per oz gold.

  • Reduced Earnings Due to Lower Realized Prices: $6.5 million, or $0.03 per share, down 45% from Q1 2022. Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)(2) of $19.4 million, a decrease of 24% from Q1 2022.

  • Cash Flow: $12.5 million in operating cash flow before working capital changes(2), a decrease of 39% from Q1 2022. Mine operating cash flow before taxes(2) also decreased to $22.4 million.

  • Higher Costs Due to Strengthened Peso and Industry-Wide Inflation: Cash costs(2) of $11.12 per oz payable silver and all-in sustaining costs(2) of $20.16 per oz payable silver, net of gold credits. Cash costs(2) were slightly above guidance due to a strengthening of the Mexican Peso and increased labour, power and consumables costs. Management continues to work diligently to reduce costs and improve efficiencies where possible.

  • Healthy Balance Sheet: Cash position of $61.6 million and working capital(2) of $92.8 million. Cash decreased as funds were spent on development activities at Terronera.

Subsequent to Q1 2023

  • Company Secures Project Financing and Updates Development Plans for Terronera: Societe Generale and ING Bank N.V. have entered into a commitment letter for a Senior Secured Debt Facility of $120 million. The Company has optimized the project’s operating flexibility from the NI 43-101 Feasibility Study of the Terronera Project filed in 2021. The Revised scenario approves the construction of a 2,000 tpd process plant with an initial capital expenditure of $230 million (see news release dated April 18, 2023).

  • Terronera De-risked with over $58 million Invested to date into Development: The Board of Directors has approved the construction of an underground mine and mill at Terronera. The Company has made significant progress on development activities, with long-lead item procurement well advanced and a seasoned team of development personnel established on the ground (see news release dated April 20, 2023).

Financial Overview (see appendix for consolidated financial statements)

Q1 2023 Highlights

Three Months Ended March 31

 

 

2023

2022

% Change

 

Production

 

 

 

 

Silver ounces produced

1,623,545

1,314,955

23

%

 

Gold ounces produced

9,342

8,695

7

%

 

Payable silver ounces produced

1,608,212

1,303,540

23

%

 

Payable gold ounces produced

9,184

8,549

7

%

 

Silver equivalent ounces produced(1)

2,370,905

2,010,555

18

%

 

Cash costs per silver ounce(2)(3)

11.12

10.21

9

%

 

Total production costs per ounce(2)(4)

15.43

15.13

2

%

 

All-in sustaining costs per ounce(2)(5)

20.16

20.90

(4

%)

 

Processed tonnes

211,073

206,147

2

%

 

Direct operating costs per tonne(2)(6)

132.11

122.86

8

%

 

Direct costs per tonne(2)(6)

169.49

148.53

14

%

 

Silver co-product cash costs(7)

14.93

15.18

(2

%)

 

Gold co-product cash costs(7)

1,236

1,226

1

%

 

Financial

 

 

 

 

Revenue ($ millions)

55.5

57.7

(4

%)

 

Silver ounces sold

1,667,408

1,717,768

(3

%)

 

Gold ounces sold

9,126

8,381

9

%

 

Realized silver price per ounce

23.16

24.38

(5

%)

 

Realized gold price per ounce

1,917

1,970

(3

%)

 

Net earnings (loss) ($ millions)

6.5

11.7

(45

%)

 

Adjusted net earnings (loss)(11)($ millions)

9.6

17.0

44

%

 

Mine operating earnings ($ millions)

16.0

20.3

(21

%)

 

Mine operating cash flow before taxes ($ millions)(8)

22.4

26.7

(16

%)

 

Operating cash flow before working capital changes(9)

12.5

20.6

(39

%)

 

EBITDA(10)($ millions)

19.4

25.6

(24

%)

 

Working capital(12)($ millions)

92.8

168.4

(45

%)

 

Shareholders

 

 

 

 

Earnings (loss) per share – basic ($)

0.03

0.07

(57

%)

 

Adjusted earnings (loss) per share – basic ($)(11)

0.05

0.10

49

%

 

Operating cash flow before working capital changes per share(9)

0.07

0.12

(45

%)

 

Weighted average shares outstanding

190,274,768

171,557,220

11

%

 

 

 

 

 

 

(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 March 31, 2023, revenue, net of $0.6 million of smelting and refining costs, decreased by 4% to $55.5 million (Q1 2022: $57.7 million).

Gross sales of $56.1 million in Q1 2023 represented a 4% decrease over the $58.4 million in Q1 2022. Silver oz sold decreased by 3%, due to a decrease in finished goods silver ounces available for sale as at December 31, 2022 compared to December 31, 2021, offset by increased silver production.   There was a 5% decrease in the realized silver price, resulting in an 8% decrease in proceeds from silver sales. Gold oz sold increased by 9% with a 3% decrease in the realized gold price, resulting in a 6% increase in proceeds from gold sales. During the period, the Company sold 1,667,408 oz silver and 9,126 oz gold for realized prices of $23.16 and $1,917 per oz, respectively, compared to Q1 2022 sales of 1,717,768 oz silver and 8,381 oz gold for realized prices of $24.38 and $1,970 per oz, respectively. In Q1 2023, London spot prices for silver and gold averaged $22.55 and $1,890, respectively.

The Company slightly decreased its finished goods silver inventory and slightly increased its finished goods gold inventory to 471,069 oz and 1,766 oz, respectively, at March 31, 2023 compared to 530,250 oz silver and 1,707 oz gold at December 31, 2022. The cost allocated to these finished goods was $7.4 million at March 31, 2023 compared to $6.1 million at December 31, 2022. At March 31, 2023, the finished goods inventory fair market value was $14.7 million, compared to $15.8 million at December 31, 2022.

After cost of sales of $39.54 million (Q1 2022 - $37.4 million), an increase of 6%, mine operating earnings were $16.0 million (Q1 2022 - $20.3 million). The cost of sales in Q1, 2023 was impacted by a strengthened Mexican peso, higher labour, power and consumables costs as the Company, as well as the industry, has experienced significant inflationary pressures. The Company also recognized increased royalty costs during Q1, 2023 compared to the prior period as a higher percentage of the production at Guanacevi has come from the El Curso and El Porvenir concessions, which are subject to royalties.

The Company had operating earnings of $6.9 million (Q1 2022: $12.6 million) after exploration and evaluation costs of $4.2 million (Q1 2022: $3.2 million) and general and administrative costs of $4.9 million (Q1 2022: $4.3 million. Exploration and evaluation costs increased primarily to additional spending on the recently acquired Pitarrilla project and general and administrative costs increased primarily due to investment in a new ERP system.

Earnings before income taxes were $12.5 million (Q1 2022: $18.9 million) after finance costs of $0.4 million (Q1 2022: $0.3 million), a foreign exchange gain of $1.9 million (Q1 2022: $0.8 million), and investment and other income of $4.0 million (Q1 2022: $5.8 million). The increase in the foreign exchange gain is due to the strengthening of the Mexican peso which increases the value of peso denominated working capital items. The investment and other income during Q1 2023 primarily resulted from an unrealized gain on marketable securities and warrants of $3.1 million (Q1 2022: $5.4 million).

The Company realized net earnings for the period of $6.5 million (Q1 2022: $11.7 million) after an income tax expense of $6.1 million (Q1 2022: $7.2 million).   Current income tax expense increased to $4.4 million (Q1 2022 - $1.0 million) and deferred income taxes decreased to $1.7 million (Q1, 2022: $6.2 million).During 2022, the changes in current and deferred taxes were driven primarily by the utilization of loss carryforwards at Guanacevi and during 2023 there were no further loss carryforwards available to offset against current income tax and changes in deferred income taxes was primarily derived from changes in temporary timing differences between deductions for accounting versus deductions for tax.

Direct operating costs(2) on a per tonne basis increased to $132.11, up 8% compared with Q1 2022 due to both a strengthening of the Mexican peso and higher operating costs at both Guanaceví and Bolanitos from increased inflationary pressure during 2022 and Q1 2023. As the Mexican peso strengthens, the Company’s Mexican peso denominated costs are increased in US dollar terms. Guanaceví and Bolañitos have seen increased labour, power and consumable costs.

Consolidated cash costs per oz, net of by-product credits, increased to $11.12 primarily due to the higher direct costs per tonne slightly offset by a higher gold credit driven by higher gold production compared to Q1 2022. AISC decreased by 4% on a per oz basis compared to Q1 2022 as a result of costs being allocated over increased ounces produced which offset the increased costs.

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 Galina Meleger, VP of Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or by email at gmeleger@edrsilver.com

Conference Call

A conference call to discuss the Company’s Q1 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:

Wednesday, May 10, 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 0037#. The replay will also be available on the Company’s website at www.edrsilver.com.

About Endeavour Silver – Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing construction of the Terronera project 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: (877) 685 - 9775
Email: gmeleger@edrsilver.com
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 March 31, 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 March 31, 2023 MD&A available on SEDAR at www.sedar.com.

Reconciliation of Working Capital

Expressed in thousands US dollars

As at March 31, 2023

As at December 31, 2022

 

 

 

 

 

 

 

Current assets

 

$138,862

 

$146,333

 

Current liabilities

 

46,049

 

52,749

 

Working capital

 

$92,813

 

$93,584

 

 

 

 

 

 

 

Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share

Expressed in thousands US dollars

Three Months Ended March 31

(except for share numbers and per share amounts)

2023

 

2022

Net earnings (loss) for the period per financial statements

$6,456

 

$11,662

Change in fair value of investments

3,097

 

5,357

Adjusted net earnings (loss)

$9,553

 

$17,019

Basic weighted average share outstanding

190,274,768

 

171,557,220

Adjusted net earnings (loss) per share

$0.05

 

$0.10

 

 

 

Reconciliation of Mine Operating Cash Flow Before Taxes

 

Expressed in thousands US dollars

Three Months Ended March 31

 

2023

 

2022

Mine operating earnings per financial statements

$16,025

 

$20,269

Share-based compensation

132

 

127

Amortization and depletion

6,253

 

6,306

Mine operating cash flow before taxes

$22,410

 

$26,702

 

 

 

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 March 31

(except for per share amounts)

2023

 

2022

Cash from (used in) operating activities per financial statements

($401)

 

$21,733

Net changes in non-cash working capital per financial statements

(12,902)

 

1,114

Operating cash flow before working capital changes

$12,501

 

$20,619

Basic weighted average shares outstanding

190,274,768

 

171,557,220

Operating cash flow before working capital changes per share

$0.07

 

$0.12

 

 

 

Reconciliation of EBITDA and Adjusted EBITDA

 

 

Expressed in thousands US dollars

Three Months Ended March 31

 

2023

 

2022

Net earnings (loss) for the period per financial statements

$6,456

 

$11,662

Depreciation and depletion – cost of sales

6,253

 

6,306

Depreciation and depletion – exploration

278

 

107

Depreciation and depletion – general & administration

62

 

48

Depreciation and depletion – care & maintenance

-

 

30

Finance costs

259

 

177

Current income tax expense

4,445

 

1,015

Deferred income tax expense

1,676

 

6,222

EBITDA

$19,429

 

$25,567

Share based compensation

1,625

 

1,527

Change in fair value of investments

3,097

 

5,357

Adjusted EBITDA

$24,151

 

$32,451

Basic weighted average shares outstanding

190,274,768

 

171,557,220

Adjusted EBITDA per share

$0.13

 

$0.19

 

 

 

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 March 31, 2023

Three Months Ended March 31, 2022

Guanaceví

Bolañitos

Total

Guanaceví

Bolañitos

Total

Direct production costs per financial statements

 

18,145

 

 

8,371

 

 

26,516

 

 

17,884

 

 

8,837

 

 

26,721

 

Smelting and refining costs included in net revenue

 

-

 

 

656

 

 

656

 

 

-

 

 

654

 

 

654

 

Opening finished goods

 

(4,953)

 

 

(245)

 

 

(5,198)

 

 

(10,093)

 

 

(2,857)

 

 

(12,950)

 

Closing finished goods

 

4,848

 

 

1,063

 

 

5,911

 

 

7,908

 

 

2,995

 

 

10,903

 

Direct operating costs

 

18,040

 

 

9,845

 

 

27,885

 

 

15,699

 

 

9,629

 

 

25,328

 

Royalties

 

6,471

 

 

64

 

 

6,535

 

 

4,234

 

 

83

 

 

4,317

 

Special mining duty (1)

 

1,270

 

 

85

 

 

1,355

 

 

731

 

 

244

 

 

975

 

Direct costs

 

25,781

 

 

9,994

 

 

35,775

 

 

20,664

 

 

9,956

 

 

30,620

 

By-product gold sales

 

(8,433)

 

 

(9,064)

 

 

(17,497)

 

 

(5,022)

 

 

(11,488)

 

 

(16,510)

 

Opening gold inventory fair market value

 

2,740

 

 

354

 

 

3,094

 

 

1,900

 

 

4,784

 

 

6,684

 

Closing gold inventory fair market value

 

(2,500)

 

 

(995)

 

 

(3,495)

 

 

(3,724)

 

 

(3,763)

 

 

(7,487)

 

Cash costs net of by-product

 

17,588

 

 

289

 

 

17,877

 

 

13,818

 

 

(511)

 

 

13,307

 

Amortization and depletion

 

3,474

 

 

2,779

 

 

6,253

 

 

3,910

 

 

2,396

 

 

6,306

 

Share-based compensation

 

66

 

 

66

 

 

132

 

 

63

 

 

64

 

 

127

 

Opening finished goods depreciation and depletion

 

(862)

 

 

(60)

 

 

(922)

 

 

(1,965)

 

 

(635)

 

 

(2,600)

 

Closing finished goods depreciation and depletion

 

1,115

 

 

355

 

 

1,470

 

 

1,689

 

 

897

 

 

2,586

 

Total production costs

$21,381

 

$3,429

 

$24,810

 

$17,515

 

$2,211

 

$19,726

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

Three Months Ended March 31, 2022

Guanaceví

Bolañitos

Total

Guanaceví

Bolañitos

Total

Throughput tonnes

 

102,375

 

 

108,698

 

 

211,073

 

 

101,253

 

 

104,894

 

 

206,147

 

Payable silver ounces

 

1,435,604

 

 

172,608

 

 

1,608,212

 

 

1,130,448

 

 

173,092

 

 

1,303,540

 

 

 

 

 

 

 

 

Cash costs per silver ounce

 

$12.25

 

 

$1.67

 

 

$11.12

 

 

$12.22

 

 

($2.95)

 

 

$10.21

 

Total production costs per ounce

 

$14.89

 

 

$19.87

 

 

$15.43

 

 

$15.49

 

 

$12.77

 

 

$15.13

 

Direct operating costs per tonne

 

$176.21

 

 

$90.57

 

 

$132.11

 

 

$155.05

 

 

$91.80

 

 

$122.86

 

Direct costs per tonne

 

$251.83

 

 

$91.94

 

 

$169.49

 

 

$204.08

 

 

$94.91

 

 

$148.53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expressed in thousands US dollars

March 31, 2023

March 31, 2022

Guanaceví

Bolañitos

Total

Guanaceví

Bolañitos

Total

Closing finished goods

 

4,848

 

 

1,063

 

 

5,911

 

 

7,908

 

 

2,995

 

 

10,903

 

Closing finished goods depletion

 

1,115

 

 

355

 

 

1,470

 

 

1,689

 

 

897

 

 

2,586

 

Finished goods inventory

$5,963

 

$1,418

 

$7,381

 

$9,597

 

$3,892

 

$13,489

 

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

Expressed in thousands US dollars

Three Months Ended March 31, 2023

Three Months Ended March 31, 2022

 

Guanaceví

Bolañitos

Total

Guanaceví

Bolañitos

Total

Cash costs net of by-product

$17,588

$289

$17,877

$13,818

 

($511)

 

$13,307

Operations share-based compensation

 

66

 

66

 

132

 

63

 

64

 

 

127

Corporate general and administrative

 

2,616

 

878

 

3,494

 

2,067

 

876

 

 

2,943

Corporate share-based compensation

 

1,019

 

342

 

1,361

 

917

 

389

 

 

1,306

Reclamation - amortization/accretion

 

79

 

62

 

141

 

65

 

53

 

 

118

Mine site expensed exploration

 

379

 

313

 

692

 

352

 

250

 

 

602

Intangible payments

 

-

 

-

 

-

 

29

 

12

 

 

41

Equipment loan payments

 

245

 

487

 

732

 

245

 

489

 

 

734

Capital expenditures sustaining

 

5,690

 

2,301

 

7,991

 

5,646

 

2,426

 

 

8,072

All-In-Sustaining Costs

$27,682

$4,738

$32,420

$23,202

$4,048

 

$27,250

Growth exploration and evaluation

 

 

 

3,063

 

 

 

2,413

Growth capital expenditures

 

 

 

12,726

 

 

 

4,925

All-In-Costs

 

 

$48,209

 

 

$34,588

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

Three Months Ended March 31, 2022

 

Guanaceví

Bolañitos

Total

Guanaceví

Bolañitos

Total

Throughput tonnes

 

102,375

 

108,698

 

211,073

 

101,253

 

104,894

 

 

206,147

Payable silver ounces

 

1,435,604

 

172,608

 

1,608,212

 

1,130,448

 

173,092

 

 

1,303,540

Silver equivalent production (ounces)

 

1,774,964

 

595,941

 

2,370,905

 

1,412,010

 

598,545

 

 

2,010,555

 

 

 

 

 

 

 

Sustaining cost per ounce

$19.28

$27.45

$20.16

$20.52

$23.39

 

$20.90

All-In-costs per ounce

 

 

$29.98

 

 

$26.53

 

 

 

 

 

 

 


Expressed in thousands US dollars

Three Months Ended March 31

2023

2022

Mine site expensed exploration

$692

$602

Growth exploration and evaluation

3,063

2,413

Total exploration and evaluation

3,755

3,015

Exploration depreciation and depletion

278

107

Exploration share-based compensation

131

94

Exploration and evaluation expense

$4,164

$3,216


Reconciliation of Sustaining Capital and Growth Capital

Expressed in thousands US dollars

Three Months Ended March 31

2023

2022

Capital expenditures sustaining

$7,991

$8,072

Growth capital expenditures

12,726

4,925

Property, plant and equipment expenditures per Consolidated Statement of Cash Flows

$20,717

$12,997

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

Expressed in thousands US dollars

Three Months Ended March 31, 2023

Three Months Ended March 31, 2022

 

Guanaceví

Bolañitos

Total

Guanaceví

Bolañitos

Total

Direct production costs per financial statements

$18,145

 

$8,371

 

$26,516

 

$17,884

 

$8,837

 

$26,721

 

Smelting and refining costs included in net revenue

-

 

656

 

656

 

-

 

654

 

654

 

Royalties

6,471

 

64

 

6,535

 

4,234

 

83

 

4,317

 

Special mining duty (1)

1,270

 

85

 

1,355

 

731

 

244

 

975

 

Opening finished goods

(4,953)

 

(245)

 

(5,198)

 

(10,093)

 

(2,857)

 

(12,950)

 

Closing finished goods

4,848

 

1,063

 

5,911

 

7,908

 

2,995

 

10,903

 

Direct costs

$25,781

 

$9,994

 

$35,775

 

$20,664

 

$9,956

 

$30,620

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

Three Months Ended March 31, 2022

 

Guanaceví

Bolañitos

Total

Guanaceví

Bolañitos

Total

Silver production (ounces)

1,439,924

 

183,621

 

1,623,545

 

1,133,850

 

181,105

 

1,314,955

 

Average realized silver price ($)

23.16

 

23.16

 

23.16

 

24.38

 

24.38

 

24.38

 

Silver value ($)

33,351,084

 

4,252,974

 

37,604,058

 

27,643,263

 

4,415,340

 

32,058,603

 

 

 

 

 

 

 

 

Gold production (ounces)

4,188

 

5,154

 

9,342

 

3,477

 

5,218

 

8,695

 

Average realized gold price ($)

1,917

 

1,917

 

1,917

 

1,970

 

1,970

 

1,970

 

Gold value ($)

8,029,524

 

9,881,606

 

17,911,130

 

6,849,690

 

10,279,460

 

17,129,150

 

 

 

 

 

 

 

 

Total metal value ($)

41,380,608

 

14,134,580

 

55,515,189

 

34,492,953

 

14,694,800

 

49,187,753

 

Pro-rated silver costs (%)

81%

 

30%

 

68%

 

80%

 

30%

 

65%

 

Pro-rated gold costs (%)

19%

 

70%

 

32%

 

20%

 

70%

 

35%

 

 

 

 

 

 

 

 

Pro-rated silver costs ($)

20,778

 

3,007

 

24,233

 

16,560

 

2,991

 

19,957

 

Pro-rated gold costs ($)

5,003

 

6,987

 

11,542

 

4,104

 

6,965

 

10,663

 

 

 

 

 

 

 

 

Silver co-product cash costs ($)

14.43

 

16.38

 

14.93

 

14.61

 

16.52

 

15.18

 

Gold co-product cash costs ($)

1,194

 

1,356

 

1,236

 

1,180

 

1,335

 

1,226

 


Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce

Expressed in thousands US dollars

Three Months Ended March 31

2023

2022

Gross silver sales

$38,620

$41,884

Silver ounces sold

1,667,408

1,717,768

Realized silver price per ounces

$23.16

$24.38

 

 

 

Expressed in thousands US dollars

Three Months Ended March 31

2023

2022

Gross gold sales

$17,497

$16,510

Gold ounces sold

9,126

8,381

Realized gold price per ounces

$1,917

$1,970

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 terms and timing of the Debt Facility, estimated Project economics, Terronera’s forecasted operations, costs and expenditures, 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’s due diligence requirements; the final terms of the Debt Facility and the Company’s ability to successfully drawdown under the Debt Facility; 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

 

 

March 31,

 

March 31,

 

 

2023

 

2022

 

 

 

 

 

Revenue

 

$ 55,461

 

$ 57,740

 

 

 

 

 

Cost of sales:

 

 

 

 

Direct production costs

 

 

26,516

 

 

26,721

Royalties

 

 

6,535

 

 

4,317

Share-based payments

 

 

132

 

 

127

Depreciation, depletion and amortization

 

 

6,253

 

 

6,306

 

 

 

39,436

 

 

37,471

 

 

 

 

 

Mine operating earnings

 

 

16,025

 

 

20,269

 

 

 

 

 

Expenses:

 

 

 

 

Exploration and evaluation

 

 

4,164

 

 

3,216

General and administrative

 

 

4,917

 

 

4,297

Care and maintenance costs

 

 

-

 

 

190

 

 

 

9,081

 

 

7,703

 

 

 

 

 

Operating earnings

 

 

6,944

 

 

12,566

 

 

 

 

 

Finance costs

 

 

400

 

 

298

 

 

 

 

 

Other income (expense):

 

 

 

 

Foreign exchange gain (loss)

 

 

1,889

 

 

811

Gain on asset disposal

 

 

62

 

 

-

Investment and other

 

 

4,082

 

 

5,820

 

 

 

6,033

 

 

6,631

 

 

 

 

 

Earnings before income taxes

 

 

12,577

 

 

18,899

 

 

 

 

 

Income tax expense:

 

 

 

 

Current income tax expense

 

 

4,445

 

 

1,015

Deferred income tax expense

 

 

1,676

 

 

6,222

 

 

 

6,121

 

 

7,237

 

 

 

 

 

Net earnings and comprehensive earnings for the period

 

$ 6,456

 

$ 11,662

 

 

 

 

 

 

 

 

 

 

Basic earnings per share based on net earnings

 

$ 0.03

 

$ 0.07

Diluted earnings per share based on net earnings

 

$ 0.03

 

$ 0.07

 

 

 

 

 

Basic weighted average number of shares outstanding

 

 

190,274,768

 

 

171,557,220

Diluted weighted average number of shares outstanding

 

 

192,295,971

 

 

174,438,202

 

 

 

 

 

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

 

 

 

 

 

March 31,

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

61,650

 

 

$

83,391

 

Other investments

 

13,132

 

 

 

8,647

 

Accounts and other receivables

 

15,610

 

 

 

13,136

 

Income tax receivable

 

1,861

 

 

 

4,024

 

Inventories

 

23,305

 

 

 

19,184

 

Prepaid expenses

 

22,304

 

 

 

16,951

 

Loans receivable

 

1,000

 

 

 

1,000

 

Total current assets

 

138,862

 

 

 

146,333

 

 

 

 

 

Non-current deposits

 

497

 

 

 

565

 

Non-current income tax receivable

 

3,570

 

 

 

3,570

 

Non-current other investments

 

-

 

 

 

1,388

 

Non-current IVA receivable

 

12,055

 

 

 

10,154

 

Non-current loans receivable

 

2,722

 

 

 

2,729

 

Right-of-use leased assets

 

809

 

 

 

806

 

Mineral properties, plant and equipment

 

243,430

 

 

 

233,892

 

Total assets

$

401,945

 

 

$

399,437

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Current liabilities

 

 

 

Accounts payable and accrued liabilities

$

35,453

 

 

$

39,831

 

Income taxes payable

 

4,677

 

 

 

6,616

 

Loans payable

 

5,607

 

 

 

6,041

 

Lease liabilities

 

312

 

 

 

261

 

Total current liabilities

 

46,049

 

 

 

52,749

 

 

 

 

 

Loans payable

 

7,329

 

 

 

8,469

 

Lease liabilities

 

786

 

 

 

812

 

Provision for reclamation and rehabilitation

 

8,766

 

 

 

7,601

 

Deferred income tax liability

 

14,620

 

 

 

12,944

 

Other non-current liabilities

 

1,020

 

 

 

968

 

Total liabilities

 

78,570

 

 

 

83,543

 

 

 

 

 

Shareholders' equity

 

 

 

Common shares, unlimited shares authorized, no par value, issued, issuable

 

 

 

and outstanding 191,276,399 shares (Dec 31, 2022 - 189,995,563 shares)

 

661,029

 

 

 

657,866

 

Contributed surplus

 

3,973

 

 

 

6,115

 

Retained earnings (deficit)

 

(341,627

)

 

 

(348,087

)

Total shareholders' equity

 

323,375

 

 

 

315,894

 

Total liabilities and shareholders' equity

$

401,945

 

 

$

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

 

March 31,

 

March 31,

 

 

2023

 

 

 

2022

 

 

 

 

 

Operating activities

 

 

 

Net earnings (loss) for the period

$

6,456

 

 

$

11,662

 

 

 

 

 

Items not affecting cash:

 

 

 

Share-based compensation

 

1,625

 

 

 

1,527

 

Depreciation, depletion and amortization

 

6,619

 

 

 

6,462

 

Deferred income tax expense (recovery)

 

1,676

 

 

 

6,222

 

Unrealized foreign exchange loss (gain)

 

1,095

 

-

 

(136

)

Finance costs

 

400

 

 

 

298

 

Accretion of loans receivable

 

(93

)

 

 

-

 

Loss (gain) on asset disposal

 

(62

)

 

 

(59

)

Loss (gain) on other investments

 

(3,097

)

 

 

(5,357

)

Performance and deferred share units settled in cash

 

(2,118

)

 

 

-

 

Net changes in non-cash working capital

 

(12,902

)

 

 

1,114

 

Cash from (used in) operating activities

 

(401

)

 

 

21,733

 

 

 

 

 

Investing activities

 

 

 

Proceeds on disposal of property, plant and equipment

 

-

 

 

 

34

 

Mineral properties, plant and equipment

 

(20,717

)

 

 

(12,997

)

Purchase of other investments

 

-

 

 

 

(1,371

)

Redemption of (investment in) non-current deposits

 

68

 

 

 

2

 

Cash used in investing activities

 

(20,649

)

 

 

(14,332

)

 

 

 

 

Financing activities

 

 

 

Repayment of loans payable

 

(1,574

)

 

 

(1,083

)

Repayment of lease liabilities

 

(63

)

 

 

(52

)

Interest paid

 

(239

)

 

 

(177

)

Public equity offerings

 

-

 

 

 

46,001

 

Exercise of options

 

1,812

 

 

 

130

 

Proceeds from loans receivable

 

100

 

 

 

-

 

Share issuance costs

 

-

 

 

 

(2,797

)

Performance and deferred share units witholding tax settlement

 

(294

)

 

 

(1,897

)

Cash from (used in) financing activities

 

(258

)

 

 

40,125

 

 

 

 

 

Effect of exchange rate change on cash and cash equivalents

 

(433

)

 

 

185

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

(21,308

)

 

 

47,526

 

Cash and cash equivalents, beginning of the period

 

83,391

 

 

 

103,303

 

Cash and cash equivalents, end of the period

$

61,650

 

 

$

151,014