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Endeavour Silver Announces Q3 Financial Results; Earnings Conference Call at 10am PST (1pm EST) Today

Endeavour Silver Corporation
Endeavour Silver Corporation

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

 

2022

2021

% Change

2022

2021

% Change

 

 

 

 

Production

 

 

 

 

1,458,448

1,305,399

12%

Silver ounces produced

4,132,610

3,427,223

21%

 

9,194

10,541

(13%)

Gold ounces produced

27,178

32,816

(17%)

 

1,445,880

1,295,126

12%

Payable silver ounces produced

4,095,696

3,394,103

21%

 

9,039

10,328

(12%)

Payable gold ounces produced

26,705

32,177

(17%)

 

2,193,968

2,148,679

2%

Silver equivalent ounces produced(1)

6,306,850

6,052,503

4%

 

10.32

8.16

27%

Cash costs per silver ounce(2)(3)

10.21

9.59

6%

 

14.31

13.14

9%

Total production costs per ounce(2)(4)

14.56

15.84

(8%)

 

20.27

17.46

16%

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

20.24

20.70

(2%)

 

202,745

222,461

(9%)

Processed tonnes

610,253

673,932

(9%)

 

131.61

115.57

14%

Direct operating costs per tonne(2)(6)

128.99

116.14

11%

 

146.30

130.38

12%

Direct costs per tonne(2)(6)

147.65

133.12

11%

 

13.12

13.98

(6%)

Silver co-product cash costs(7)

14.15

15.86

(11%)

 

1,144

1,020

12%

Gold co-product cash costs(7)

1,163

1,078

8%

 

 

 

 

Financial

 

 

 

 

39.7

34.6

15%

Revenue ($ millions)

128.2

116.8

10%

 

1,327,325

699,539

90%

Silver ounces sold

3,647,987

2,443,184

49%

 

8,852

9,925

(11%)

Gold ounces sold

27,025

30,398

(11%)

 

19.24

24.56

(22%)

Realized silver price per ounce

22.24

26.26

(15%)

 

1,678

1,791

(6%)

Realized gold price per ounce

1,827

1,784

2%

 

(1.5)

(4.5)

(67%)

Net earnings (loss) ($ millions)

(1.8)

14.4

(112%)

 

(3.1)

(1.5)

106%

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

(1.1)

(5.2)

78%

 

5.1

8.3

(38%)

Mine operating earnings ($ millions)

29.9

24.1

24%

 

12.3

13.2

(7%)

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

47.8

43.7

9%

 

7.3

7.7

(4%)

Operating cash flow before working capital changes(9)

31.6

21.6

46%

 

7.9

4.4

81%

EBITDA(10) ($ millions)

29.2

44.2

(34%)

 

101.6

128.7

(21%)

Working capital (12) ($ millions)

101.6

128.7

(21%)

 

 

 

 

Shareholders

 

 

 

 

(0.01)

(0.03)

(67%)

Earnings (loss) per share – basic ($)

(0.01)

0.09

(111%)

 

0.04

0.04

(14%)

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

0.17

0.13

35%

 

189,241,367

170,432,326

11%

Weighted average shares outstanding

180,655,842

166,201,727

9%

 

 

 

 

 

 

 

 

 

(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

 

 

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 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

 

 

$161,762

 

Current liabilities

 

38,307

 

 

40,554

 

Working capital

 

$101,618

 

 

$121,208

 

 

 

 

 

 

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)

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

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