Yahoo Finanza Endeavour Silver Announces Q3 Financial Results; Earnings Conference Call at 10am PST (1pm EST) Today
VANCOUVER, British Columbia, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce its unaudited financial and operating results for the three and nine months ended September 30, 2022. All amounts reported are in United States (US) dollars.
Dan Dickson, CEO, commented, “This quarter is a continuation of our strong operational performance. With production guidance reaffirmed, and a strong fourth quarter expected, we are feeling confident about our 2022 production results. Like the rest of the industry, profit margins are under pressure. The strength of the USD is weighing on commodity prices, and inflation is increasing direct costs. We are fortunate that the elevated grade profile at Guanacevi and strong operational performance has allowed us to stay within or near our guided cost ranges on a per ounce basis.”
“We continue to focus on business improvement and cost management initiatives, while being mindful of the future. Continuing to advance the Terronera project in a deliberate and disciplined manner towards a construction decision and the completion of the Pitarrilla acquisition, are both significant developments towards the future of the Company.”
Q3 2022 Highlights
Continued Strong Production: 1,458,448 ounces (oz) of silver and 9,194 oz of gold for 2.2 million oz silver equivalent (AgEq) (1) at an 80:1 silver:gold ratio, totaling 6.3 million AgEq oz for the 9 months ended September 30, 2022. Strong year to date production reinforces delivery of 2022 guidance.
Revenue Impacted by Withholding Metal Sales & Lower Realized Prices: Generated $40.4 million from the sale of 1,327,325 oz silver and 8,852 oz gold at average realized prices of $19.24 per oz silver and $1,678 per oz gold. Management continued to carry higher metal inventory totaling 1,527,549 oz silver and 3,210 oz gold of bullion inventory and 2,770 oz silver and 143 oz gold in concentrate inventory, with a market value of approximately $35 million at September 30, 2022.
Operating Costs per Ounce In-Line with Guidance, Despite Industry-Wide Inflation: Cash costs(2) of $10.32 per oz payable silver and all-in sustaining costs (AISC)(2) of $20.27 per oz payable silver, net of gold credits.
Negative Earnings and Lower Cash Flow Due to Impacted Revenue: Net loss of $1.5 million or $0.01 loss per share. $7.3 million in cash flow from operations before working capital changes(2) and mine operating cash flow before taxes(2) of $12.3 million. The Company continued to hold significant finished goods held at costs on the balance sheet at quarter end.
Healthy Balance Sheet: Cash position of $69.2 million and $101.6 million in working capital(2). Cash decreased in the quarter, as funds were spent to complete the acquisition of the Pitarrilla Project with a $35 million cash payment and early works expenditures to advance the Terronera project.
Strong Liquidity Remains: While the cash balance decreased during the quarter, the realized sale of finished goods inventory, with a market value of approximately $35 million at quarter end, would imply a cash balance closer to $100 million.
Advancing the Terronera Project: Work continued on predevelopment activities initiated last year including detailed engineering, critical contracts, procurement of long-lead items and road and camp construction. The Company intends to make a formal construction decision subject to completion of a financing package and receipt of additional amended permits in the coming months. Budgeted development expenditures for 2022 are estimated to be $41.0 million.
Completed the Acquisition of the Pitarrilla Project: The world’s largest undeveloped silver project that will form the cornerstone of the Company’s growth profile, together with Terronera and Parral (see News Release dated July 6, 2022).
Divested the El Compas Property to Grupo ROSGO: Completed the sale of the property and the plant for US$5 million over five years (see News Release dated September 12, 2022).
Financial Overview (see appendix for consolidated financial statements)
Three Months Ended September 30 | Q3 2022 Highlights | Nine Months Ended September 30 |
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2022 | 2021 | % Change | 2022 | 2021 | % Change |
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| Production |
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1,458,448 | 1,305,399 | 12% | Silver ounces produced | 4,132,610 | 3,427,223 | 21% |
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9,194 | 10,541 | (13%) | Gold ounces produced | 27,178 | 32,816 | (17%) |
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1,445,880 | 1,295,126 | 12% | Payable silver ounces produced | 4,095,696 | 3,394,103 | 21% |
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9,039 | 10,328 | (12%) | Payable gold ounces produced | 26,705 | 32,177 | (17%) |
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2,193,968 | 2,148,679 | 2% | Silver equivalent ounces produced(1) | 6,306,850 | 6,052,503 | 4% |
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10.32 | 8.16 | 27% | Cash costs per silver ounce(2)(3) | 10.21 | 9.59 | 6% |
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14.31 | 13.14 | 9% | Total production costs per ounce(2)(4) | 14.56 | 15.84 | (8%) |
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20.27 | 17.46 | 16% | All-in sustaining costs per ounce (2)(5) | 20.24 | 20.70 | (2%) |
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202,745 | 222,461 | (9%) | Processed tonnes | 610,253 | 673,932 | (9%) |
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131.61 | 115.57 | 14% | Direct operating costs per tonne(2)(6) | 128.99 | 116.14 | 11% |
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146.30 | 130.38 | 12% | Direct costs per tonne(2)(6) | 147.65 | 133.12 | 11% |
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13.12 | 13.98 | (6%) | Silver co-product cash costs(7) | 14.15 | 15.86 | (11%) |
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1,144 | 1,020 | 12% | Gold co-product cash costs(7) | 1,163 | 1,078 | 8% |
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| Financial |
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39.7 | 34.6 | 15% | Revenue ($ millions) | 128.2 | 116.8 | 10% |
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1,327,325 | 699,539 | 90% | Silver ounces sold | 3,647,987 | 2,443,184 | 49% |
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8,852 | 9,925 | (11%) | Gold ounces sold | 27,025 | 30,398 | (11%) |
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19.24 | 24.56 | (22%) | Realized silver price per ounce | 22.24 | 26.26 | (15%) |
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1,678 | 1,791 | (6%) | Realized gold price per ounce | 1,827 | 1,784 | 2% |
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(1.5) | (4.5) | (67%) | Net earnings (loss) ($ millions) | (1.8) | 14.4 | (112%) |
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(3.1) | (1.5) | 106% | Adjusted net earnings (loss) (11) ($ millions) | (1.1) | (5.2) | 78% |
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5.1 | 8.3 | (38%) | Mine operating earnings ($ millions) | 29.9 | 24.1 | 24% |
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12.3 | 13.2 | (7%) | Mine operating cash flow before taxes ($ millions)(8) | 47.8 | 43.7 | 9% |
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7.3 | 7.7 | (4%) | Operating cash flow before working capital changes(9) | 31.6 | 21.6 | 46% |
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7.9 | 4.4 | 81% | EBITDA(10) ($ millions) | 29.2 | 44.2 | (34%) |
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101.6 | 128.7 | (21%) | Working capital (12) ($ millions) | 101.6 | 128.7 | (21%) |
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| Shareholders |
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(0.01) | (0.03) | (67%) | Earnings (loss) per share – basic ($) | (0.01) | 0.09 | (111%) |
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0.04 | 0.04 | (14%) | Operating cash flow before working capital changes per share(9) | 0.17 | 0.13 | 35% |
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189,241,367 | 170,432,326 | 11% | Weighted average shares outstanding | 180,655,842 | 166,201,727 | 9% |
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(1) Silver equivalent (AgEq) is calculated using an 80:1 silver:gold ratio.
(2) These are non-IFRS financial measures and ratios. Further details on these non-IFRS financial measures and ratios are provided at the end of this press release and in the MD&A accompanying the Company’s financial statements, which can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
For the three months ended September 30, 2022, net revenue, increased by 15% to $39.7 million (Q3 2021: $34.6 million).
Gross sales of $40.4 million in Q3 2022 represented a 15% increase over the $35.0 million in Q3 2021. Silver oz sold increased by 90%, due to both a 12% increase in silver production and a significantly smaller buildup of finished goods inventory during Q3, 2022 compared to Q3, 2021. There was a 22% decrease in the realized silver price resulting in a 48% increase to silver sales. Gold oz sold decreased 11% with a 6% decrease in realized gold prices resulting in a 16% decrease in gold sales. The decrease in gold sales is primarily driven by the decreased gold grades at the Bolañitos mine and the suspension of production from the El Compas mine. During the period, the Company sold 1,327,325 oz silver and 8,852 oz gold, for realized prices of $19.24 and $1,678 per oz, respectively, compared to sales of 699,539 oz silver and 9,925 oz gold, for realized prices of $24.56 and $1,791 per oz, respectively, in the same period of 2021. For the three months ended September 30, 2022, the realized prices of silver and gold were within 3% of the London spot prices. Silver and gold London spot prices averaged $19.23 and $1,729, respectively, during the three months ended September 30, 2022
The Company increased its finished goods silver and finished goods gold inventory to 1,530,319 oz silver and 3,353 oz gold, at September 30, 2022 compared to 1,411,764 oz silver and 3,167 oz gold at June 30, 2022. The cost allocated to these finished goods was $22.1 million at September 30, 2022, compared to $20.8 million at June 30, 2022 and $18.3 million at September 30, 2021. At September 30, 2022, the finished goods inventory fair market value was $34.7 million, compared to $34.5 million at June 30, 2022. Earnings and other financial metrics, including mine operating cash flow(2), operating cash flow(2) and EBITDA(2) were impacted by the withholding of sales during Q3 2022.
Cost of sales for Q3, 2022 was $34.5 million, an increase of 31% over the cost of sales of $26.3 million for Q3, 2021. The cost of sales in Q3, 2022 was impacted by increased input costs and slightly impacted by the delay in recognition of costs associated with the increase in the quantity of silver ounces in finished goods at the end of the period. Overall costs for Q3, 2022 were impacted by higher labour, power and consumables costs as the Company is experiencing significant inflationary pressures. During Q3, 2022, the Company also recorded an allowance on the valuation of warehouse inventory of $1.3 million (Q3, 2021 – Nil).
In Q3, 2022, the Company had an operating loss of $1.3 million (Q3, 2021 – operating earnings of $3.0 million) after exploration and evaluations costs of $4.0 million (Q3, 2021 – $4.7 million), general and administrative expense of $2.2 million (Q3, 2021 – expense recovery $0.5 million), and care and maintenance expense of $0.2 million (Q3, 2021 – $0.4 million). In the three months ended September 30, 2021 operating earnings included $0.7 million in severance costs related to the suspension of the operations at the El Compas mine.
The earnings before taxes for Q3, 2022 was $1.7 million (Q3, 2021 – loss $0.8 million) after finance costs of $0.3 million (Q3, 2021 – $0.2 million), a foreign exchange gain of $0.8 million (Q3, 2021 –foreign exchange loss of $1.2 million), gain on assets disposal of $2.8 million (Q3, 2021 -$Nil) and investment and other expense of $0.3 million (Q3, 2021 –$2.4 million).
The Company realized a net loss for the period of $1.5 million (Q3, 2021 –$4.5 million) after an income tax expense of $3.2 million (Q3, 2021 – $3.7 million). In Q3, 2022 earnings were impacted by a $1.1 million mark-to-market adjustment resulting in an unrealized loss on investments included in investment and other expense (Q3, 2021 - $3.0 million).
Current income tax expense increased to $1.2 million (Q3 2021 - $0.7 million) due to increased profitability impacting the income tax and special mining duty, while deferred income tax expense of $2.0 million is primarily due to the estimated use of loss carryforwards to reduce taxable income generated at both Guanaceví and Bolañitos (Q3 2021 – $3.0 million).
Direct operating costs(2) on a per tonne basis increased to $131.61, up 14% compared with Q3 2021 due to higher operating costs at Guanaceví and Bolañitos and a reduction in ore tonnes processed. Guanaceví and Bolañitos have seen increased labour, power and consumables costs and at Guanaceví, increased third party ore purchased and operating development have increased compared to the prior year.
Consolidated cash costs per oz(2), net of by-product credits increased 27% to $10.32 driven by increased direct costs per tonne(2) and a reduction in by-product gold sales, offset by increased ore grades. AISC(2) increased by 16% on a per oz basis compared to Q3, 2021 as a result of the increased cash costs(2) and increased allocated general and administrative costs offset by a slight reduction in sustaining capital expenditures
The complete financial statements and management’s discussion & analysis can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All shareholders can receive a hard copy of the Company’s complete audited financial statements free of charge upon request. To receive this material in hard copy, please contact Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or by email at gmeleger@edrsilver.com.
Conference Call
A conference call to discuss the Company’s Q3 2022 financial results will be held today at 10:00 a.m. PST / 1:00 p.m. EST. To participate in the conference call, please dial the numbers below.
Date & Time: | Tuesday, November 8, 2022 at 10:00 a.m. PST / 1:00 p.m. EST |
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Telephone: | Toll-free in Canada and the US +1-800-319-4610 |
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Replay: | A replay of the conference call will be available by dialing (toll-free) +1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US. The replay passcode is 9479#. The replay will also be available on the Company’s website at www.edrsilver.com. |
About Endeavour Silver – Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information
Galina Meleger, Vice President of Investor Relations
Tel: (604)640-4804
Email: 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 September 30, 2022 MD&A for explanations and discussion of these non-IFRS and other non-financial measures and ratios. The Company believes that these measures and ratios, in addition to conventional measures and ratios prepared in accordance with International Financial Reporting Standards (“IFRS”), provide management and investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS and other non-financial measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures or ratios of performance prepared in accordance with IFRS. These measures and ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Certain additional disclosures for these non-IFRS measures have been incorporated by reference and can be found in the section “Non-IFRS Measures” in the September 30, 2022 MD&A available on SEDAR at www.sedar.com.
Reconciliation of Working Capital
Expressed in thousands US dollars | As at September 30, 2022 | As at December 31, 2021 | ||||||||
Current assets |
| $139,925 |
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| $161,762 |
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Current liabilities |
| 38,307 |
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| 40,554 |
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Working capital |
| $101,618 |
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| $121,208 |
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Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands US dollars | Three Months Ended September 30 | Nine Months Ended September 30 | ||
(except for share numbers and per share amounts) | 2022 | 2021 | 2022 | 2021 |
Net earnings (loss) for the period per financial statements | ($1,499) | ($4,479) | ($1,760) | $14,426 |
Impairment (reversal) of non-current assets, net of tax | - | - | - | (16,791) |
Gain on disposal of El Cubo mine and equipment, net of tax | - | - | - | (5,807) |
Gain on disposal of El Compas mine and equipment, net of tax | (2,733) | - | (2,733) | - |
Change in fair value of investments | 1,097 | 2,959 | 3,366 | 2,968 |
Adjusted net earnings (loss) | ($3,135) | ($1,520) | ($1,127) | ($5,204) |
Basic weighted average share outstanding | 189,241,367 | 170,432,326 | 180,655,842 | 166,201,727 |
Adjusted net earnings (loss) per share | ($0.02) | ($0.01) | ($0.01) | ($0.03) |
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Reconciliation of Mine Operating Cash Flow Before Taxes
Expressed in thousands US dollars | Three Months Ended September 30 | Nine Months Ended September 30 | ||
2022 | 2021 | 2022 | 2021 | |
Mine operating earnings per financial statements | $5,129 | $8,277 | $29,870 | $24,146 |
Share-based compensation | 113 | 105 | 353 | 334 |
Amortization and depletion | 5,753 | 4,843 | 16,234 | 18,963 |
Write down of inventory to net realizable value | $1,323 | - | 1,323 | 272 |
Mine operating cash flow before taxes | $12,318 | $13,225 | $47,780 | $43,715 |
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Reconciliation of Operating Cash Flow Before Working Capital Changes and Operating Cash Flow Before Working Capital Changes Per Share
Expressed in thousands US dollars | Three Months Ended September 30 | Nine Months Ended September 30 | ||
(except for per share amounts) | 2022 | 2021 | 2022 | 2021 |
Cash from (used in) operating activities per financial statements | $7,417 | ($153) | $10,602 | $5,391 |
Net changes in non-cash working capital per financial statements | 85 | (7,808) | (20,957) | (16,168) |
Operating cash flow before working capital changes | $7,332 | $7,655 | $31,559 | $21,559 |
Basic weighted average shares outstanding | 189,241,367 | 170,432,326 | 180,655,842 | 166,201,727 |
Operating cash flow before working capital changes per share | $0.04 | $0.04 | $0.17 | $0.13 |
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Reconciliation of EBITDA and Adjusted EBITDA
Expressed in thousands US dollars | Three Months Ended September 30 | Nine Months Ended September 30 | ||
| 2022 | 2021 | 2022 | 2021 |
Net earnings (loss) for the period per financial statements | ($1,499) | ($4,479) | ($1,760) | $14,426 |
Depreciation and depletion – cost of sales | 5,753 | 4,843 | 16,234 | 18,963 |
Depreciation and depletion – exploration | 143 | 87 | 348 | 238 |
Depreciation and depletion – general & administration | 57 | 30 | 156 | 102 |
Depreciation and depletion – care & maintenance | 10 | 21 | 70 | 25 |
Depreciation and depletion – inventory write down | - | - | - | 6 |
Finance costs | 194 | 195 | 583 | 702 |
Current income tax expense | 1,186 | 659 | 3,526 | 2,476 |
Deferred income tax expense | 2,053 | 3,017 | 10,027 | 7,260 |
EBITDA | $7,897 | $4,373 | $29,184 | $44,198 |
Share based compensation | 760 | 725 | 3,259 | 2,918 |
Impairment (reversal) of non-current assets, net of tax | - | - | - | (16,791) |
Gain on disposal of El Cubo mine and equipment, net of tax | - | - | - | (5,807) |
Gain on disposal of El Compas mine and equipment, net of tax | (2,733) | - | (2,733) | - |
Change in fair value of investments | 1,097 | 2,959 | 3,366 | 2,968 |
Adjusted EBITDA | $7,021 | $8,057 | $33,076 | $27,486 |
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Reconciliation of Cash Cost Per Silver Ounce, Total Production Costs Per Ounce, Direct Operating Costs Per Tonne, Direct Costs Per Tonne
Expressed in thousands US dollars | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total | |
Direct production costs per financial statements | $15,156 | $9,354 | $24,510 | $9,299 | $6,692 | $2,648 | $18,639 |
Smelting and refining costs included in net revenue | - | 744 | 744 | - | 350 | 42 | 392 |
Opening finished goods | (16,164) | (681) | (16,845) | (6,985) | (408) | (1,145) | (8,538) |
Finished goods NRV adjustment | - | - | - | - | - | - | - |
Closing finished goods | 18,080 | 195 | 18,275 | 12,910 | 2,306 | - | 15,216 |
Direct operating costs | 17,072 | 9,612 | 26,684 | 15,224 | 8,940 | 1,545 | 25,709 |
Royalties | 2,762 | 59 | 2,821 | 2,595 | 48 | 55 | 2,698 |
Special mining duty (1) | 241 | (85) | 156 | 801 | (203) | - | 598 |
Direct costs | 20,075 | 9,586 | 29,661 | 18,620 | 8,785 | 1,600 | 29,005 |
By-product gold sales | (5,237) | (9,615) | (14,852) | (7,673) | (7,827) | (2,274) | (17,774) |
Opening gold inventory fair market value | 4,662 | 1,061 | 5,723 | 3,349 | 633 | 1,038 | 5,020 |
Closing gold inventory fair market value | (5,368) | (240) | (5,608) | (2,127) | (3,560) | - | (5,687) |
Cash costs net of by-product | 14,132 | 792 | 14,924 | 12,169 | (1,969) | 364 | 10,564 |
Amortization and depletion | 3,119 | 2,634 | 5,753 | 1,683 | 3,071 | 89 | 4,843 |
Share-based compensation | 56 | 57 | 113 | 44 | 45 | 16 | 105 |
Opening finished goods depreciation and depletion | (3,733) | (199) | (3,932) | (1,333) | (220) | (30) | (1,583) |
NRV depreciation cost adjustment | - | - | - | - | - | - | - |
Closing finished goods depreciation and depletion | 3,776 | 60 | 3,836 | 1,920 | 1,171 | - | 3,091 |
Total production costs | $17,350 | $3,344 | $20,694 | $14,483 | $2,098 | $439 | $17,020 |
| Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total | |
Throughput tonnes | 97,728 | 105,017 | 202,745 | 105,496 | 107,752 | 9,213 | 222,461 |
Payable silver ounces | 1,328,193 | 117,687 | 1,445,880 | 1,170,645 | 117,078 | 7,403 | 1,295,126 |
Cash costs per silver ounce | $10.64 | $6.73 | $10.32 | $10.40 | ($16.82) | $49.17 | $8.16 |
Total production costs per ounce | $13.06 | $28.41 | $14.31 | $12.37 | $17.92 | $59.30 | $13.14 |
Direct operating costs per tonne | $174.69 | $91.53 | $131.61 | $144.31 | $82.97 | $167.70 | $115.57 |
Direct costs per tonne | $205.42 | $91.28 | $146.30 | $176.50 | $81.53 | $173.67 | $130.38 |
Expressed in thousands US dollars | Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total | |
Direct production costs per financial statements | $40,837 | $30,222 | $71,059 | $33,072 | $21,567 | $8,951 | $63,590 |
Smelting and refining costs included in net revenue | - | 2,335 | 2,335 | - | 1,353 | 248 | 1,601 |
Opening finished goods | (10,093) | (2,857) | (12,950) | (1,509) | (250) | (642) | (2,401) |
Finished goods NRV adjustment | - | - | - | - | - | 266 | 266 |
Closing finished goods | 18,080 | 195 | 18,275 | 12,910 | 2,306 | - | 15,216 |
Direct operating costs | 48,824 | 29,895 | 78,719 | 44,473 | 24,976 | 8,823 | 78,272 |
Royalties | 9,124 | 208 | 9,332 | 8,966 | 186 | 346 | 9,498 |
Special mining duty (1) | 1,767 | 286 | 2,053 | 1,742 | 205 | - | 1,947 |
Direct costs | 59,715 | 30,389 | 90,104 | 55,181 | 25,367 | 9,169 | 89,717 |
By-product gold sales | (15,978) | (33,405) | (49,383) | (15,346) | (30,265) | (8,626) | (54,237) |
Opening gold inventory fair market value | 1,900 | 4,784 | 6,684 | 735 | 746 | 1,283 | 2,764 |
Closing gold inventory fair market value | (5,368) | (240) | (5,608) | (2,127) | (3,560) | - | (5,687) |
Cash costs net of by-product | 40,269 | 1,528 | 41,797 | 38,443 | (7,712) | 1,826 | 32,557 |
Amortization and depletion | 7,969 | 8,265 | 16,234 | 5,763 | 10,664 | 2,536 | 18,963 |
Share-based compensation | 176 | 177 | 353 | 137 | 136 | 61 | 334 |
Opening finished goods depreciation and depletion | (1,965) | (635) | (2,600) | (271) | (104) | (804) | (1,179) |
NRV depreciation and depletion cost adjustment | - | - | - | - | - | 6 | 6 |
Closing finished goods depreciation and depletion | 3,776 | 60 | 3,836 | 1,920 | 1,171 | - | 3,091 |
Total production costs | $50,225 | $9,395 | $59,620 | $45,992 | $4,155 | $3,625 | $53,772 |
| Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total | |
Throughput tonnes | 292,998 | 317,255 | 610,253 | 306,021 | 313,356 | 54,555 | 673,932 |
Payable silver ounces | 3,649,209 | 446,487 | 4,095,696 | 3,022,531 | 328,522 | 43,050 | 3,394,103 |
Cash costs per silver ounce | $11.03 | $3.42 | $10.21 | $12.72 | ($23.47) | $42.42 | $9.59 |
Total production costs per ounce | $13.76 | $21.04 | $14.56 | $15.22 | $12.65 | $84.20 | $15.84 |
Direct operating costs per tonne | $166.64 | $94.23 | $128.99 | $145.33 | $79.70 | $161.73 | $116.14 |
Direct costs per tonne | $203.81 | $95.79 | $147.65 | $180.32 | $80.95 | $168.07 | $133.12 |
Expressed in thousands US dollars | September 30, 2022 | September 30, 2021 | |||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total | |
Closing finished goods | 18,080 | 195 | 18,275 | 12,910 | 2,306 | - | 15,216 |
Closing finished goods depletion | 3,776 | 60 | 3,836 | 1,920 | 1,171 | - | 3,091 |
Finished goods inventory | $21,856 | $255 | $22,111 | $14,830 | $3,477 | $0 | $18,307 |
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Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total | |
Cash costs net of by-product | $14,132 | $792 | $14,924 | $12,169 | ($1,969) | $364 | $10,564 |
Operations share-based compensation | 56 | 57 | 113 | 44 | 45 | 16 | 105 |
Corporate general and administrative | 1,200 | 414 | 1,614 | (781) | (389) | (79) | (1,249) |
Corporate share-based compensation | 405 | 125 | 530 | 436 | 216 | 44 | 697 |
Reclamation - amortization/accretion | 64 | 52 | 116 | 13 | 11 | 2 | 26 |
Mine site expensed exploration | 316 | 305 | 621 | 366 | 229 | 3 | 598 |
Intangible payments | - | - | - | 61 | 30 | 6 | 97 |
Equipment loan payments | 245 | 489 | 734 | 245 | 501 | - | 746 |
Capital expenditures sustaining | 7,212 | 3,439 | 10,651 | 6,322 | 4,706 | - | 11,028 |
All-In-Sustaining Costs | $23,629 | $5,674 | $29,303 | $18,875 | $3,381 | $357 | $22,612 |
Growth exploration and evaluation |
|
| 3,142 |
|
|
| 4,053 |
Growth capital expenditures |
|
| 6,240 |
|
|
| 2,303 |
All-In-Costs |
|
| $38,685 |
|
|
| $28,968 |
| Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||
| Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total |
Throughput tonnes | 97,728 | 105,017 | 202,745 | 105,496 | 107,752 | 9,213 | 222,461 |
Payable silver ounces | 1,328,193 | 117,687 | 1,445,880 | 1,170,645 | 117,078 | 7,403 | 1,295,126 |
Silver equivalent production (ounces) | 1,623,550 | 570,418 | 2,193,968 | 1,462,568 | 621,083 | 65,028 | 2,148,679 |
Sustaining cost per ounce | $17.79 | $48.21 | $20.27 | $16.12 | $28.88 | $48.16 | $17.46 |
All-In-costs per ounce |
|
| $26.76 |
|
|
| $22.37 |
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Expressed in thousands US dollars | Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total | |
Cash costs net of by-product | $40,269 | $1,528 | $41,797 | $38,443 | ($7,712) | $1,826 | $32,557 |
Operations share-based compensation | 176 | 177 | 353 | 137 | 136 | 61 | 334 |
Corporate general and administrative | 3,668 | 1,445 | 5,113 | 3,026 | 1,504 | 307 | 4,837 |
Corporate share-based compensation | 1,849 | 728 | 2,577 | 1,473 | 732 | 149 | 2,355 |
Reclamation - amortization/accretion | 198 | 158 | 356 | 38 | 33 | 7 | 78 |
Mine site expensed exploration | 1,028 | 863 | 1,891 | 1,360 | 768 | 198 | 2,326 |
Intangible payments | 29 | 12 | 41 | 178 | 88 | 18 | 284 |
Equipment loan payments | 736 | 1,466 | 2,202 | 853 | 1,593 | - | 2,446 |
Capital expenditures sustaining | 19,908 | 8,653 | 28,561 | 14,222 | 10,806 | - | 25,028 |
All-In-Sustaining Costs | $67,861 | $15,030 | $82,891 | $59,730 | $7,949 | $2,567 | $70,245 |
Growth exploration and evaluation |
|
| 8,456 |
|
|
| 11,023 |
Growth capital expenditures |
|
| 16,778 |
|
|
| 3,737 |
All-In-Costs |
|
| $108,125 |
|
|
| $85,005 |
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| Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||
| Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | El Compas | Total |
Throughput tonnes | 292,998 | 317,255 | 610,253 | 306,021 | 313,356 | 54,555 | 673,932 |
Payable silver ounces | 3,649,209 | 446,487 | 4,095,696 | 3,022,531 | 328,522 | 43,050 | 3,394,103 |
Silver equivalent production (ounces) | 4,524,110 | 1,782,740 | 6,306,850 | 3,786,186 | 1,882,154 | 384,163 | 6,052,503 |
Sustaining cost per ounce | $18.60 | $33.66 | $20.24 | $19.76 | $24.20 | $59.62 | $20.70 |
All-In-costs per ounce |
|
| $26.40 |
|
|
| $25.04 |
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Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands US dollars | Three Months Ended September 30 | Nine Months Ended September 30 | ||
2022 | 2021 | 2022 | 2021 | |
Capital expenditures sustaining | $10,651 | $11,028 | $28,561 | $25,028 |
Growth capital expenditures | 6,240 | 2,303 | 16,778 | 3,737 |
Acquisition capital expenditures | 35,998 | 10,042 | 35,998 | 10,042 |
Property, plant and equipment expenditures per Consolidated Statement of Cash Flows | $52,889 | $23,373 | $81,337 | $38,807 |
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Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
Expressed in thousands US dollars | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||
Guanaceví | Bolañitos | ||||||
