|
Post by Entendance on Apr 13, 2017 17:33:18 GMT -5
"Why did Endeavour’s share price fall 25% in just one day in early March?" ***Endeavour Silver CEO Bradford Cooke comments on share price
Below is a very interesting article (in case you have not seen it) on how the GDXJ is now running into problems due to the size of the companies in the index. According to the story, Van Eck, which runs both GDX and GDXJ, is now funneling money into GDX when money comes into GDXJ because GDXJ is now an 18% holder of several index members. Seems like this is the classic "index tracking" issue you have been talking about. With 35% of GDX comprised of Barrick, Newmont, Goldcorp and Newcrest, it appears the GDXJ has gotten away from a proxy for the junior sector. ***How An ETF Gets Too Big For Its Index
Ok so I have 1 observation and 1 question: Observation: I find it incredible that the GDXJ is having problems with only $3.3 billion of inflows since 1/1/2016 that it is has had to put 25% of its assets in 5 holdings that fall outside of its mandate. (I am assuming this means GDX and 4 intermediate to senior gold stocks.) Question: What do think are Van Eck's options? Since it is very unlikely to close it off to new money, do you think it will do more of the same or will it open a slightly different new fund? Thanks Fleck: There isn't any real market cap in this sector... When it finally gets really popular, the fireworks will be huge. It will be difficult to stay aboard the train, I suspect.. I dislike both GDX and GDXJ, an Eck will do whatever makes IT the most money. I concur with you.
"...The Deep State looters are mono-maniacally focused on regularly smashing precious metals prices for two primary reasons: 1) It provides them with a vast, recurring, no-lose, totally-illegal-but-never-prosecuted profit source; and, 2) it is an extremely effective way for them to scare everyday citizens away from metals, which is a key DS objective.
If the people ever figure out, en masse, that they would greatly benefit by transferring their money into physical precious metals, as opposed to keeping it in digital bank accounts that can be seized at any time and under any pretext, the Deep State’s looting opportunity will be reduced. The Deep State works 60x60x24x365, or every second of every day to prevent the people from having that “Aha Moment” of personal financial clarity and sanity.
If the people fully understood how resilient precious metals prices have been despite the constant, multi-year, 24 hour per day, criminal, full-spectrum Deep State manipulation campaign, they would gain a new-found respect for precious metals as assets. Greed-fueled frauds always collapse in time, and when the precious metals price manipulation fraud fails, gold, silver and platinum’s reflexive revaluation will almost certainly be historic.
The Deep State agenda is to eliminate cash as soon as possible and force the people’s money to become nothing but electrons housed in digital currency prisons euphemistically called banks. Next, they will deactivate the precious metals dealers’ bank accounts, making it extremely difficult for citizens who have not already done so to acquire precious metals. This action will be taken under the totally dishonest pretext of combating drugs, crime, terrorism and other fake, so-called dreaded threats. When people get wind that this is coming, a precious metals buying stampede will break out, much the same way that the ammunition buying frenzy developed when rumors spread that Obama was going to sharply control, turbo-tax or even prohibit bullet sales. Time and time again throughout history, people have exhibited a passionate desire to buy the things they expect will be taken away from them. When the precious metals buying stampede is triggered, people throughout the west will learn in a hurry that the quantity of physical precious metals actually available to them is extremely limited and quickly vanishing. Supplies will completely disappear in a day or two, if not before, just as ammunition disappeared from the shelves, nationwide, during that buying explosion..." More here
|
|
|
Post by Entendance on May 8, 2017 8:31:06 GMT -5
Apr. 26, 2017 12:22 PM ET EXK Endeavour Silver - Silver Producer With Near-Term Growth Potential
Endeavour Silver beats by $0.04, beats on revenue May 3, 2017
EXK Endeavour Silver Reports First Quarter, 2017 Financial ResultsEndeavour Silver Corp (NYSE:EXK)
Q1 2017 Results Conference Call May 03, 2017 12:00 PM ET Executives Meg Brown - Investor Relations Brad Cooke - CEO Godfrey Wilson - President & COO Dan Dickson - CFO
Analysts Justin Stevens - Raymond James
Meg Brown Good morning everyone and welcome to the Endeavour Silver Q1 Earnings Conference Call. On the call today, we have the company's CEO Brad Cooke as well as our President and COO Godfrey Wilson, and our CFO Dan Dickson. Before we get started, I'm required to remind you that certain statements on this call will contain forward-looking information within the meaning of applicable Securities Laws. These may include statements regarding Endeavour's anticipated performance in 2017 and future years, including revenue and cost forecasts, silver and gold production, grades and recoveries, and the timing and expenditures required to develop new mines in mineralized zones. 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. With that, I'll turn the call over to our CEO Brad Cooke. Brad Cooke Great thanks Meg, and welcome everybody to this Q1 conference call on our financial results. Our financial performance in the first quarter was actually sharply improved compared to the first quarter of last year and even though revenue and cost of sales were down due to lower production our earnings were up as a result of the higher precious metal prices, foreign exchange gains and tax recoveries. That earnings actually increased 230% to $6 million on the quarter. EBITDA was up 4% to $9 million, cash flow from operations increased 19% to $8.9 million and revenues decreased 12% to $36.4 million. Our sales actually averaged between 2 and 5% above average spot prices for silver and gold respectively. And our cash cost relatively flat up only 2% at $7.81 per ounce of silver payable metal to growth credit. All in sustaining cost however were up 64% to $18.24 per ounce reflecting our willingness to reinvest our free cash flow to extend mine lives and grow resources. Cash was relatively flat though only 2.5% to $17.5 million on the quarter and working capital is flat at $81.9 million. Generally looking at the individual operations we enjoyed strong free cash flow at Bolanitos. We had a modest profit Cubo and a modest loss at Guanacevi. Guanacevi is actually the only mine underperforming it’s plan, it’s still very much a work in progress, recovering from some operating issues that we had last year and there's still clearly work to do to get Guanacevi back to good health. We are however seeing rise in our Bolanitos tonnage and slow rise in our Cubo grades coming into the second quarter. So we are hopeful that those two mines will outperform their plans this year. Q1 was also a very busy time for us on a development projects. We released preliminary economic assessment for the El Compos mine which is scheduled to become our fourth mine. We hope to receive the exposes covered by the end of the quarter, break ground and see initial production by year end. That preliminary economic assessment report should be filed and available on SEDAR by May 11th. We're also very busy on our Teranera project which we hope will become mine number five. Production decisions still to be taken there as we wait for and work on the environmental permits, debt financing to help facilitate the construction of Teranera and related issues and opportunities. That report the pre-feasibility report on Teranera should actually be filed on or before May 18th. So I think operator that's the highlights for the quarter. Why don't we open this up for Q&A? Justin Stevens Morning guys, just a few questions from me. In terms of grade the Bolanitos there are sort of lower silver higher gold than what we were anticipating. Is the Q1 grades sort of what we're going to be looking at going forward here from that one. Brad Cooke Sorry, grades going forward Justin, this is Godfrey. Justin Stevens Yes, Bolanitos. Brad Cooke At Bolanitos. We were a little bit slower getting into Pateros which is why the grades were lower than we anticipated as well but we've come through some operational delicate areas and we should be back into Pateros in full steam this quarter and so you should see the grades coming up back to what they were scheduled to be. Justin Stevens Sounds good, and just also on the cost side, patented things very well I think but are these cost per ton sort of what we're expecting going forward here. Dan Dickson Justin this is Dan, those costs per ton are relatively in line with what we expect in line with our budget for the year, I'd said Guanacevi because the lower production had higher cost per ton, so if we can improve the production tonnage throughout the year we should see those cost per ton come down. Justin Stevens Sounds good, and just on the sort of M&A front or at least land acquisition side, are you guys looking at all to sort of pick up or consolidate new line packages, I mean if you've got a bit of extra cash to throw around. Brad Cooke Hi Justin, it's Brad again. We're always active on the M&A front, you know from time to time we pull the trigger on acquisitions last year we did two El Compos and Paral. Within the districts of the existing three mines we're always looking to acquire properties and expand our land positions in these districts and I think there's certainly an opportunity to do more of that this year, particularly at Guanacevi and Bolanitos and to a lesser extent at Cubo. And you know for the development projects we've also been active on expanding our footprint. So news on that later this year. Justin Stevens That was good, that's it from me, thanks guys. Brad Cooke Thanks Justin. Brad Cooke Well you guys are letting us off easy this quarter must have been good news. Thank you operator, and thanks to everybody for listening in. let’s have a quick look ahead to Q2, obviously we're still very active on the exploration front with I think currently five or six drills working and we're taking a break on some of the drills just to collate results. It is reasonable however to expect some news from Paral this quarter perhaps another news release on Teranera. We've got some land acquisitions I think might be ready in the [indiscernible] district and as the operations continue to improve we're obviously hoping that Q2 will look better than Q1. So I think we're on track for another decent quarter and we look forward to chatting in early July on our operating results. Thanks all for joining us and we'll turn this back over to the operator.
May 4, 2017 EXK Endeavour Silver Announces 2017 Annual General Meeting Results
|
|
|
Post by Entendance on May 10, 2017 8:31:04 GMT -5
Simon Black: <His remarks started off like dozens of presentations that I had heard so many times before. . . “Without silver,” began the speaker, “our entire society would go back to the Stone Age.” The speaker was the CEO of one of the largest silver mining companies in the world, and he was a special keynote at the annual closed-door meeting of the Atlas 400. CEOs of mining companies almost always start their presentations talking about how important their mineral is. “If we didn’t have cobalt we would all be cave men again. . .” or “Without molybdenum our modern technology would cease to exist.” It sounds impressive, but the same story applies to just about every industrial commodity in the world, from copper to lumber to recycled steel. It’s hardly an original argument and doesn’t impress me enough to be bullish on their mineral.
The real investment thesis about silver is that it’s a precious metal that has industrial qualities and a long-standing tradition of value. Like gold, silver was an ancient form of money. And for good reason. Out of the 118 known elements that exist on the periodic table, gold and silver share certain chemical properties that made them ideal as a medium of exchange to our ancestors. Gold and silver are solid at normal temperatures (as opposed to Helium). They’re not radioactive (like Plutonium). They’re not explosive when they come into contact with water (like Cesium), nor do they rust when they get wet (like Iron). Most importantly, gold and silver are rare enough to be valuable, but not so rare that it would be almost impossible to mine more. Between the two, gold is obviously more rare… hence the higher price. There’s an old estimate from the US Geological Survey from the late 1960s suggesting that the ratio of silver to gold in the earth’s crust is about 21:1. (So assuming that’s true, the theoretical price ratio between the two should be around 21:1) And in ancient times the price ratio between the two metals was frequently in the range of about 15:1, i.e. one ounce of gold was worth 15 ounces of silver. Today the ratio is about 75, based on a gold price of about $1230 per ounce, and a silver price of $16.35. This is fairly high even by modern standards as the long-term average over the past several decades is about 50.
This would suggest that silver should in increase in price relative to gold in order for the ratio to return to its historic average. (A ratio of 50:1 would imply a silver price of $24.60 based on a gold price of $1230.)
Now, all of this is an argument that many of us have heard before. But I did learn something over the weekend from the mining CEO; he told us that the current mining production ratio between the two metals is about 9:1. This means that 9 ounces of silver are mined for every 1 ounce of gold that’s mined. This is very interesting from a supply/demand perspective. According to the Silver Institute, demand for silver hit an all-time high in 2016. But the price of silver, at least relative to gold, is hovering near a multi-year low at 75:1. (Again, the historic average is around 50:1). Moreover, even though the price is 75:1, the new supply of silver is only 9:1. In theory if the new metal supply is 9:1, then the price should be 9:1 (which would be a silver price of $136.67). Obviously that’s a purely academic postulate; reality rarely conforms to theory. And the mining CEO wasn’t projecting a $136+ silver price. But it seemed clear to him that there’s an unsustainably wide gulf between the gold/silver price ratio versus the gold/silver supply ratio, especially when silver demand is at an all-time high. Commodity prices tend to move dramatically when the market realizes there’s a serious supply/demand mismatch. That seems to be the case with silver right now.
And while it would be silly to expect $100+ silver, there are certainly credible reasons why the ratio should close the gap and move MUCH lower.>
|
|
|
Post by Entendance on May 18, 2017 7:01:03 GMT -5
|
|
|
Post by Entendance on May 19, 2017 11:58:04 GMT -5
|
|
|
Post by Entendance on Jun 6, 2017 6:04:12 GMT -5
June 6, 2017 EXK Endeavour Silver Acquires Additional Properties in Zacatecas, Mexico Vancouver, Canada – June 6, 2017 - Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) announces it has acquired 100% interests in two small but prospective mineral property groups, Calicanto and Veta Grande, located in the historic silver mining district of Zacatecas in Zacatecas state, Mexico. For map click here. All of the properties host old mines and/or known silver-gold veins that were underexplored by modern methods and are being acquired for their near-term mine exploration and development potential, given their proximity to Endeavour’s El Compas Mine and La Plata plant, also located in the Zacatecas district.
Bradford Cooke, Endeavour CEO and Director, stated: “We are very happy to add these new properties to our exploration portfolio in Zacatecas. The two transactions confirm there are good opportunities to consolidate a larger mineral land position in Zacatecas, one of the largest historic silver mining districts in Mexico. Drilling is now underway at the Calicanto properties and we expect to permit and drill the Veta Grande properties later this year.” Note that all technical data reported in this news release are historical in nature and Endeavour Silver has not independently verified them; therefore, these data should not be relied upon.
Calicanto Properties The Calicanto properties were purchased from Arian Silver Corporation for US$400,000. They cover 75 hectares over five known, silver-gold-lead-zinc veins – Calicanto, Vicochea, Nevada, Misie and Buenaventura – within an area of 1.2 by 1.2 kilometres (km). The veins were discovered around 1600, and supported small scale, high-grade production of silver off and on for about 350 years. The mines were historically developed down to approximately 150 metres (m) depth by seven old shallow shafts, and they were closed in the mid 1950s. The upper mine workings are still open but the lower mine workings are now flooded. In the past 10 years, Arian drove two short ramps into the Calicanto and Buenaventura veins, drilled 16 core holes totaling 3,149 m with encouraging results. Highlights of the properties are as follows: Calicanto Highlights •100% interest subject to a 3% NSR royalty •Well located and readily accessible adjacent to both the city of Zacatecas and the access road to Endeavour’s recently leased La Plata 500 tonne per day (tpd) government plant •Excellent infrastructure including grid power, water, labour, and services, with a land access agreement already in place for exploration and exploitation •Five veins each with histories of small scale production, each traceable for over one km, averaging 1-3 m thick containing mineralized zones grading 100-300 grams per tonne (gpt) silver, 1-3 gpt gold, 1-3% lead-zinc •Historic resources previously estimated in the Calicanto vein from underground sampling by SGM, the government geological survey •Positive drill results by Arian included intercepts grading 8.54 gpt gold and 97 gpt silver over 4.50 m true width in the Calicanto vein, 7.17 gpt gold and 1,055 gpt silver over 4.70 m at Misie, and 0.9 gpt gold and 409 gpt silver over 1.60 m at Vicochea •Potential to add new, shallow, small scale but high-grade resources in four veins by additional drilling along strike and down dip and develop near term production close to our plant in a stable, attractive jurisdiction with great infrastructure and no known social or security issues •Positive synergies with Endeavour’s El Compas mine development project in Zacatecas
Veta Grande Properties The Veta Grande properties were purchased from IMPACT Silver Corp. for US$500,000 by issuing 154,321 Endeavour common shares at US$3.24 per share. They cover 152 hectares over six known, silver-gold-lead-zinc veins plus 14 hectares of surface lands covering the dormant Santa Gabriela 200 tpd processing plant and tailings facility. The properties are located in the vicinity of one of the largest veins in the Zacatecas district, the Veta Grande vein, and cover the Nueva Granada splays to the Veta Grande vein and several other subparallel veins. The properties saw historic, small scale, high-grade production as shown by old mine workings and dumps. Access to the old workings is limited and many are now flooded, but historic sampling of dumps and trenches returned values up to 1,070 gpt silver with significant lead and zinc values. The Santa Gabriela processing plant is located adjacent to Endeavour’s La Plata plant five km north of the city of Zacatecas and it last operated between 2006 and 2009 as a 200 tpd flotation toll mill. The plant has been dormant since that time and none of the concessions have seen modern exploration. Veta Grande Highlights •100% interest with no underlying royalty •Well located and readily accessible adjacent to both the City of Zacatecas and the access road to Endeavour’s recently leased La Plata 500 tpd government plant •Excellent infrastructure including existing tailings storage facility, grid power, water, labour, and services •Several vein systems each with histories of small scale production, each traceable for over one km, averaging 1-3 m thick containing high grade mineralized zones ◦The Nueva Granada concession covers the main San Jose and Armado splay veins off Veta Grande. Historic samples from the San Jose vein returned values ranging to a high of 444 gpt Ag over 1.10 m (true width) in channel samples (average 239 gpt Ag over 0.74 m true width) and up to 1,070 gpt Ag in old mine dumps (average 407 gpt Ag). The Armado vein trends 100 m west and runs parallel to the San Jose vein. Historic channel samples collected from the surface exposures of the Armado vein assayed 237 gpt Ag over 1.92 m (true width) and 1,320 gpt Ag over 0.30 m (true width). Sulphide bearing samples from old mine dumps assayed up to 358 gpt Ag. In addition, several other splay veins branch off Armado providing additional exploration targets. ◦The Anaconda Group of concessions cover portions of historic veins that trend parallel to the main Veta Grande vein, many of which have seen historic, small scale production. Historic samples from surface dumps returned 310 gpt Ag, 24.2% Pb and 8% Zn from a high-grade stockpile. ◦The San Pascual concession is the site of the historic San Pascual Mine which last saw small scale production over 20 years ago. The shaft is flooded, however historic sampling of mine dumps adjacent to the shaft returned 875 gpt Ag. Samples from other dumps assayed 525 gpt Ag. ◦The Alianza vein lies on the Alianza concession where historic production was reported to grade 4 gpt Au, 400 gpt Ag, 3% Pb and 2% Zn. ◦The Cancer concession hosts the Providencia vein. A large adit exposes a 1.25 m wide vein with silicified breccias where historic samples from dumps and vein material returned up to 649 gpt Ag. ◦The contiguous Milagro and Leo concessions lies approximately 500 m north of the Cantera Vein system, one of the three principle veins in the Zacatecas silver district; the others being Mala Noche and Veta Grande. Samples from surface exposure of veins and old mine workings returned values averaging 158 gpt Ag. •Potential to add new, shallow, high-grade resources from numerous veins by drilling along strike and down dip and develop near term production close to the La Plata plant in a stable, attractive jurisdiction with great infrastructure and no known social or security issues •Positive synergies with Endeavour’s El Compas mine development project in Zacatecas
Mr. Dale Mah, B.Sc., P.Geo., is the Qualified Person who reviewed and approved the technical disclosure in this news release.
About Endeavour
Endeavour Silver is a mid-tier precious metals mining company that owns three high grade, underground, silver-gold mines in Mexico. Since start-up in 2004, Endeavour has grown its mining operations organically to produce 9.7 million ounces of silver and equivalents in 2016. We find, build and operate quality silver mines in a sustainable way to create real value for all stakeholders. Endeavour Silver’s shares trade on the TSX (EDR) and the NYSE (EXK).
Contact Information - For more information, please contact: Meghan Brown, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: mbrown@edrsilver.com Website: www.edrsilver.com
EXK Endeavour Silver Corp mentioned in the new In Gold We Trust 2017 Report! Extended & Compact Version (Vollständige & Kürzere Version) here
|
|
|
Post by Entendance on Jul 12, 2017 6:14:11 GMT -5
EXK Endeavour Silver Produces 1,143,788 oz Silver and 13,058 oz Gold (2.1 Million oz Silver Equivalents) in the Second Quarter, 2017
Endeavour Silver Corp. (TSX: EDR) (NYSE: EXK) reports its production results for the Second Quarter, 2017 from the Company's three silver-gold mines in Mexico: the Guanaceví mine in Durango State and the Bolañitos and El Cubo mines in Guanajuato State. Silver production in the Second Quarter, 2017 was 1,143,788 ounces (oz) and gold production was 13,057 oz resulting in silver equivalent production of 2.1 million oz using a 70:1 silver gold ratio.
Production was lower in Q2, 2017 compared to Q2, 2016 due to differences in the annual mine plans. Last year (2016), production was highest in Q1 and lowest in Q4 due to the decision at low metal prices in January 2016 to cut spending on exploration and development at all three mines, which reduced mine access to reserves and therefore reduced metal production.
In 2017, production was higher in Q2 compared to Q1 due to improved performance of the Bolañitos and El Cubo mines. This year, consolidated production should rise from Q1 to Q4 with increased access to reserves due to increased spending on exploration and development at all three mines.
Production Highlights for Second Quarter, 2017 (Compared to Second Quarter, 2016) •Silver production decreased 26% to 1,143,788 oz •Gold production decreased 17% to 13,058 oz •Silver equivalent production was 2.1 million oz (at a 70:1 silver: gold ratio) •Silver oz sold down 34% to 988,821 oz •Gold oz sold down 20% to 12,294 oz •Bullion inventory at quarter-end included 226,437 oz silver and 631 oz gold •Concentrate inventory at quarter-end included 50,644 oz silver and 890 oz gold
Endeavour CEO Bradford Cooke commented, "Our second quarter production was an improvement over the first quarter thanks to higher tonnes and/or grades from the Bolañitos and El Cubo mines. Both mines are now performing in line with their operating plans for the year. The Guanaceví mine continues to lag behind plan and an internal review has been initiated in order to identify additional actions needed to improve tonnes and/or grades and production.
"We recently made a decision to develop El Compas as our fourth mine and work is now under way on developing the mine ramp to access the orebodies. We also received notice of approval for our mine and plant permits from SEMARNAT last week to build Terronera into our fifth mine. The SEMARNAT and CONAGUA waste dumps and tailings area permits for Terronera are expected later this year."
At Guanaceví, slower mine development due to narrower vein widths than in the resource model resulted in lower mine output than planned, while excess dilution of the ore resulted in lower than planned grades. Management has initiated an internal review of the Guanaceví mine plan and reserve estimate to better understand the variance in production compared to plan in recent months. Over the past year, management has implemented operational changes and made investments to improve the pumping, ventilation and electrical systems at Guanaceví to remediate the operational challenges encountered in the second half of 2016 and first half of 2017.
At Bolañitos, silver grades improved but remained below plan due to grade variations in the LL-Asunción vein. The lower silver grades were offset by higher throughput than planned. Gold production exceeded plan due to higher throughput and gold grades.
At El Cubo, both silver and gold grades were higher than plan, and throughput was slightly below plan. During the quarter, management made changes to both mining methods and ore control processes to reduce the dilution and provide higher-grade material to the plant. Grades are expected to stabilize and throughput should regain plan through year-end.
Production Tables for Second Quarter, 2017 HERE Production Tables for Six Months Ended June 30, 2017 HERE
Release of Second Quarter, 2017 Financial Results and Conference Call The Second Quarter, 2017 financial results will be released before market on Thursday, August 3, 2017 and a telephone conference call will be held the same day at 10:00am PDT (1:00pm EDT). To participate in the conference call, please dial the numbers below. No pass-code is necessary. Toll-free in Canada and the US: 1-800-319-4610 Local Vancouver: 604-638-5340 Outside of Canada and the US: +604-638-5340
|
|
|
Post by Entendance on Aug 5, 2017 2:10:00 GMT -5
EXK Q2 2017 Earnings Conference Call August 3, 2017 1:00 PM ET Executives Meghan Brown - Director Investor Relations Bradford Cooke - Chief Executive Officer Godfrey Walton - President and Chief Operating Officer Dan Dickson - Chief Financial Officer Analysts Heiko Ihle - Rodman & Renshaw Malcolm Gissen - First Republic Bruce Zipper - Dakota Securities International
Bradford Cooke Welcome, everybody, to this Q2 financial results call. As you saw from our news today, our second quarter financial performance was impacted by lower metal prices, lower production and increased exploration and development spending. I guess, the good news is that, the production increased incrementally from Q1 to Q2, and we expect that to continue from the first-half to the second-half, as we increase access to reserves at all 3 mines. The result of slightly higher production in Q2 compared to Q1 was thanks to improving performance at the Bolañitos and El Cubo mines, but Guanaceví continues to lag behind plan and has been struggling with a number of issues, not the same old issues, but new ones that keep popping up. So let’s look at the financial performance, first of all. On an net earnings base, we basically broken even in the quarter. EBITDA was down to $3.7 million, and cash flow down to $4.4 million, revenue down to $32.7 million, all thanks to the combination of slightly lower production and lower metal prices. Cash costs were up to $8.36 per ounce of silver, net of the gold credit, that’s due to the operating issues at Guanaceví. And all-in sustaining costs were up to $20.46 per ounce of silver, again, a combination of operating issues at Guanaceví plus our increased spending to extend mine life at all three mines. Interestingly, enough compared to the end of the year and even with paying down debt, our working capital has only decreased by about 8%. We are currently sitting on $75 million in working capital. So let’s talk about Guanaceví. Last year, we had a number of issues related to breaking into effectively a hot water spring underground, which caused power outages, pump failures and some flooding. We had just recovered from that when we encountered similar problems this year. In fact, even in July for a third time, we had a repeat of our electrical issues and pump failures and flooding of some of the deeper workings. So it’s one thing after another at Guanaceví. We have recently completed yet another repair of the electrical and ventilation systems. There is completion now of construction of a new underground pump station and all those things should help smooth our production coming into the second-half of the year at Guanaceví. It’s pretty clear though, given the setbacks we’ve had since the start of the year that we are not going to meet our planned guidance at Guanaceví. And so we’ve accordingly reduced our consolidated production guidance and raised our consolidated cost guidance. Let’s talk briefly about the development projects. At El Compas, work has begin on installing the project infrastructure, collaring the mine access ramp and refurbishing the plant. There’s ongoing refinements to the project engineering, optimization studies are underway on various mining methods and crushing and grinding alternatives. We have, however, postponed not for very much time, but we’ve had to delay the anticipated commissioning of our mining plant in the first quarter, specifically due to delays in our explosives permit. And that’s government-wide permitting slowdown that we’ve seen at all of our permitting applications in Mexico, so that applies to Terronera as well. Speaking of which work is currently focused on refining our project engineering and optimization studies at Terronera, looking at different mining methods, crushing and grinding alternatives and power options, and like El Compas, mine and plant commissioning has been delayed into 2019. So our revised guidance is now somewhere around 5 million ounces of silver production, 50,000 ounces of gold production, 8.7 million ounces of silver equivalent production for the year, plus or minus. Heiko Ihle of Rodman Listen, you had in there, excuse me, that there was slower than planned mine development due to narrow vein biz at Guanaceví. Has this – is this continuing? Is this accord from the ore body, sort of walk in on geologists through how this happened? Bradford Cooke Well, apparently at every year-end, we do resource modeling and that’s how we reestimate reserves and resources. What we are finding in the deepest levels of the Santa Cruz mine at Guanaceví, and this is something that’s come up just in the last quarter is that, we couldn’t reconcile the model with what we are seeing underground. And we’ve – since then both in internal reconciliation and we asked the independent consultants, Hardrock, to come back and reassess their model. And then the conclusion is that, there was an overestimation of width and to a lesser extent grade in the deeper levels of Santa Cruz. So it – strictly speaking, obviously impacts what we were expecting to see in reserves for 2017. I guess, the only ray of light is that, we’ve been drilling and expanding that area in terms of reserve for placement and resource expansion. So the net-net effect may be neutral based on exploration successes. But it’s one of the factors that really held back our production this year, narrow width there. Heiko Ihle With the flooding at Guanaceví, can you just sort of walk us through how many meters got flooded, the pumping capacity at the site, just so to quantify it a little bit? Bradford Cooke Well, it’s not that the capacity has changed, it’s – the system – we had dozen small pumps and pump stations to lift the water, effectively 600 meters vertical to surface. And with the completion of a new and much larger pump station, we are now looking at only two lifts from the deepest levels to surface. And so that’s a significant increase in productivity and decrease in cost, decrease in power consumption, et cetera. So that pump station is just coming on this week. Heiko Ihle But quantify the pumping capacity? Bradford Cooke Godfrey, do you have the amount out of water we’re pumping? Godfrey Walton I don’t actually have the actual amount of water. But we are about 400 meters below the water table, that have been like for several years. So it’s been the – over time, we’ve added a pump as each level goes down, and that’s why the efficiencies and all the electrical issues that we’ve had. Typically, when we have a power issue, we will end up with two or three levels to get flooded. And then it takes us about a week to take – to dry up those two or three levels each time. So – and in June, we had a lightning strike on one of our power lines and that knocked out the electrical system in the mine. Although, we do have backup generators, it will only cover part of the total electrical need for the mine. Heiko Ihle Yes. Godfrey Walton So, everything else is – with the refinements and the electrical capacity and the pumping, it should be far more efficient. Heiko Ihle Got it. Okay. Moving on to Bolañitos, it seems like gold grades came in quite a bit higher than expected. You expect this to continue for the rest of the year? Is there something where we should, maybe amend our models a bit, or was this a Q2 phenomenon and its probably going to come to an end? Godfrey Walton Gold grades are definitely higher at Bolañitos. We’ve actually intersected some sections in the Plateros vein that are coming – averaging 5 to 6 grams gold. And so those have been very welcome. But we will find that the silver grades will start coming back to the 100 grams, as we stop mining higher up in the Plateros. Heiko Ihle Excellent. Well, thank you, guys, so much for the heads up there. I appreciate it. Godfrey Walton Okay. Bradford Cooke Yes, thanks, Heiko, just finishing off on Guanaceví, we’ve obviously been wrestling with this mine for a year now. But it’s not – it’s different issues that keep coming up and we keep fixing them. And I think, we are through this latest round of electrical pump and flooding issues. There’s no guarantees that we won’t get hit by lightning again. But we are optimistic that the operations are going to start regularizing themselves and we’ve overcome a number of setbacks. And I think, even though, it’s not going to meet guidance this year, there’s still a very healthy future for the mine. I mentioned in the news release that the longer-term outlook actually depends on the development of two new ore bodies that were found in recent years, but have yet to be developed. Development is now underway on the Milache ore body, and we are timing the future development of Santa Cruz Sur to match that, so both come into production midyear next year. And then the Guanaceví will actually look like a very different mine than it does today, both from a production profile and from the cost profile. Let’s move on to... Malcolm Gissen of First Republic Hi, Brad. The news has not been terrific and the market undid. What can you do – and you alluded toward a little bit in the comments you made at the end of the last question. What can you do to restore confidence in the market in the management team and your operations after these recurring setbacks? Bradford Cooke What we are segueing at Guanaceví from the deep high-cost bottoms of the Santa Cruz and Porvenir Norte mines to the shallower higher-grade tops of the Milache and Santa Cruz Sur mines. And that’s the transition, that will take us another year. But that alone completely remakes the mine. And it could well become one of our more profitable operations within a year. So we are obviously still thinking, we can help turn the quarter on the existing deep mines, but there’s still a lot of life in the old grill, and like I said, it will look like a very different mine within the next year. We always look to other mines to try and outperform when one mine is struggling. As you recall, we struggled with Cubo for 3.5 years and had some outperformance from Bolañitos the Guanaceví during that time. So we can’t comment on that now. But both Bolañitos and Cubo are certainly on plan, and we’re constantly looking out for ways to be planned and help our production and our costs. Bruce Zipper of Dakota Securities International Can you guys discuss with the guidance that you gave today for the rest of 2017? How that correlates into profitability or lack thereof, give us a little color in that area based on the numbers you think you can do? Bradford Cooke Well, you’ve seen our all-in costs guidance jump from around 15-ish to 16.5. Bruce Zipper Yes. Bradford Cooke So that’s the impact on profitability is that, we are expecting a slightly less cash flow because of the slightly higher all-in sustaining costs, really halfway through the year though. So, as I mentioned earlier, we are going to continue to look for opportunities to outperform at the other mines and that will help. Dan Dickson If I can add that, Bruce, it’s Dan, the CFO. We front-end loaded a lot of our sustaining capital to the first-half of the year. So a lot of that’s come through. A lot of the improvements that we’ve done at Guanaceví is going through our capital investments that impacts all-in sustaining costs. And I know the markets are quite fixated on all-in sustaining costs. But some of those capital items are going to benefit us for the next three or four years, it’s just that certain metric that the market looks to, it impacts today. And I think it’s important to realize that it’s not just today’s capital, but that capital is going to benefit us hopefully for the next three or four years that we are putting into the ground. So I think, we need to look at both cash costs and all-in sustaining costs and recognize that we are putting investments back into these mines today, because basically over 2015 and 2016, we reduced our investments to make sure we can get through some of the trough periods in the prices. And hopefully, now we are coming back into a period, where silver price is going to gain, and we are going to try to keep these costs where they are. Bradford Cooke And I think, what Dan saying is that the all-in sustaining costs peaked in the second quarter, and we do expect them to decline because the bulk of our all-in sustaining capital has been invested in the first-half. So we are not looking for massive changes in our costs forecast. But if you just do the math on our revised all-in sustaining costs forecast versus the second quarter, obviously costs have to come down to meet our forecast. Bruce Zipper Right. Okay. But as far as declines that I have in your company’s stock, can you discuss your balance sheet, your cash in the bank, so on and so forth? How is that continuing to look? Dan Dickson Yes, Bruce, we touched on it early on. We have $53 million of cash in the bank and that’s come down from December 31, 2016, as we invested into the long-term future of the company. But our working capital has only come down by $8 million. Today, we sit on $75 million of working capital. At the end of the quarter, we had $4 million in debt, $2.5 million and that’s going to be paid by September 30. So really on a net cash basis, we have $48 million. We are healthy, but we want to take some of that working capital and put into the long-term benefit of the company. Bruce Zipper Yes. Well, that’s one of the pluses that we think you’ve got is that balance sheet. One last question, would a healthy balance sheet – I know, things have been rough in the first half, but if there’s an opportunity, you have your eyes on any other prize or potential mines or other companies that might fit into your situation, or is that off the table until things get better? Bradford Cooke Well, Bruce, let’s look at three different timeframes. Short-term, I think, the most important things we can do on M&A is actually related to the three operating mines. And I’m working with Dale on additional strategic acquisitions in and around Guanaceví, Bolañitos and El Cubo. And what those acquisitions do is help to extend the mine lives. So that’s very much in the forefront of our thinking for short-term growth and sustainability. In terms of medium-term growth, you are well aware of our growth profile. We had acquired some projects last year plus our discovery of Terronera, they are all slated for future development. Two of them, El Compas and Terronera, are already in development. And so we do have, I think, one of the more aggressive growth profiles medium-term in the silver sector. Long-term, we are acting to look for even bigger and better projects to put into the development pipeline. We have to ask ourselves, what happens when Terronera is up and running? It has the potential to become our largest and certainly one of our lowest-cost mines by 2019. But what about after that? So Dale and I have been looking at a number of opportunities. It’s a process, obviously. We’ve turned over a lot of stones and kissed a lot of frogs, but none of them have turned into princesses yet. The process continues. Bruce Zipper Okay. Well, that’s interesting and I appreciate that comment. And all the best you guys. Stephen Epstein, a private investor I just wanted to ask what your thoughts might be on, whatever the changes might be in the metals market going forward up or down, whether it’s significant or trending up or down. How much does that impact your decision to sell your reserves or process them and restore concentrates or sell? Are you able to – or do you want to even deal with that kind of issue, or is that something that you are not even affected by as much, you had process it to go forward with the cash flow? Does that make sense? Bradford Cooke First on the metal prices, clearly, we are looking at the bear market of the last 5.5 years, 6 years in the rearview mirror. I think it’s also clear, based on last year’s balance that we are looking at a bull market out the front window. But it hasn’t arrived full bore yet. So we are kind of in an in-between period, a consolidation period, in the precious metal prices. We certainly are bulls. We think that the precious metals only have one way to go over the long-term and that’s upwards. In terms of how that affects our strategy and our cash flows, well, obviously with low metal prices, our revenues and cash flows and profits are lower than when metal prices are higher. And we, as a strategy every year develop our spending models based on our cash flow models. So we try to cover all of our spending by our cash flow. That is the sustainability spending, so that only growth spending comes out of cash. And if you recall, we did raise some cash last year that was specifically to fund our growth going forward. And El Compas is fully funded, Terronera is partly funded. But we are not yet breaking ground there and we fully expect to put a small debt facility in place, effectively a bank line of credit to talk up the Terronera financing for full production. So we typically manage our spending based on our anticipated cash flows and we expect those cash flows to rise. Certainly, next year, we are looking at a bump in production, and we certainly hope there will be a bump in metal prices. And maybe I’ll ask Dan Dickson, our CFO to say something. Dan Dickson Thanks, Brad. Yes, I think, the general sense on the call has been obviously, the Guanaceví and some of the operational issues that we’ve had at Guanaceví, and we hope that we are coming out of that here in the second-half of the year and 2018 will get back to guidance. I think one of the key things that Brad touched on, on one of the caller’s questions was on restoring confidence in the market. I think one of the important things that we’ve got to realize is, over the last five years, we typically met our guidance. And in this case with Guanaceví having these operational issues is probably the first time in the last five years that we’ve actually had to come out and revise our guidance downwards. In 2016, we revised upwards. And we recognize that it’s not a great thing for the company to have to come out and revise guidance downwards. But I think it’s good for us to come out to the market and be honest for where we are with our production, and hopefully we can be there in the second-half of the year. So thanks a lot for, everyone, attending the call, and look forward to putting out news in the second-half of the year that will simulate the stock to move higher.
If you like this beach, then you can help your friends locate it by letting them know about Fred & EntendanceInvestors Beach. Let's all make this place a thriving sheltered Club for excellence, education and information!
|
|
|
Post by Entendance on Aug 10, 2017 6:12:13 GMT -5
EXK August 10, 2017 Endeavour Silver Appoints New Vice President, Engineering to Lead New Technical Services and Mine Development Group
Vancouver, Canada – August 10, 2017 - Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) announces the appointment of Andrew Sharp as its new Vice President, Engineering to lead the Company’s new Technical Services and Mine Development Group.
Mr. Sharp, B.Eng., FAusIMM., is a professional engineer with 30 years of experience in the mining industry, is fluent in Spanish and has worked many years in Mexico. He brings to Endeavour a wealth of experience in executive and mine management, mine planning and operations, mine startups and turnarounds, mine evaluations and feasibility studies, mine permitting and government relations.
Bradford Cooke, CEO and Director, commented, “I am thrilled to welcome Andrew to the Endeavour management team. His skills and experience are a nice fit with our senior group, and his depth and breadth of knowledge in the mining sector will enhance our ability to become bigger and better going forward as we optimize our three current mines and develop new mines to fuel our future growth.”
Mr. Sharp started his mining career in 1982 working part time as an underground labourer at various mines in Western Australia while studying to earn his Bachelor of Engineering degree. After graduation in 1987, Andrew worked for 10 years as a mining engineer for Newmont and others at gold mines in Australia and Malaysia. From 1997 to 2005, he ran his own consulting practice in Australia, was Chief Mining Engineer at a gold mine in Ghana, and became Manager of Mine Planning Services for Ok Tedi Mining in Papua New Guinea. Over the past 12 years, Andrew took on a number of more senior roles, including Manager of Planning, Mine Manager, General Manager, Vice President of Technical Services and Executive Vice President of Mining Operations for companies such as Pan American Silver, Silver Standard and others. Andrew’s primary responsibilities at Endeavour will include leading the Company’s new Technical Services and Mine Development Group, ensuring engineering excellence throughout the organization, overseeing the design, permitting and construction of development projects to production, supporting mine operations and acquisitions, completing optimization studies, introducing technological advances, and helping improve operational performance. Endeavour’s new Technical Services and Mine Development Group will include the existing construction and metallurgical managers, and will be joined by new managers of mining, geology and permitting, as well as project leaders for each of the two development projects, El Compas and Terronera.
About Endeavour Silver – Endeavour Silver is a mid-tier precious metals mining company that owns three high grade, underground, silver-gold mines in Mexico. Since start?up in 2004, Endeavour has grown its mining operations organically to produce 9.7 million ounces of silver and equivalents in 2016. We find, build and operate quality silver mines in a sustainable way to create real value for all stakeholders. Endeavour Silver’s shares trade on the TSX (EDR) and the NYSE (EXK).
|
|
|
Post by Entendance on Aug 30, 2017 6:05:39 GMT -5
Endeavour Silver announces that exploration drilling at the Guanacev mine in Durango State, Mexico has extended high grade silver-gold mineralization along strike within the Santa Cruz vein and discovered new ore grade mineralization within a shallow, parallel splay of the Santa Cruz vein known as the La Negra vein 6:56 AM ET 8/30/17 | Briefing.com These holes extend the boundaries of the current resource area (dated December 31, 2016). Drilling highlights include 786 grams per tonne (gpt) silver and 0.71 gpt gold (836 gpt AgEq) over 3.4 m true width (24.4 opT AgEq over 11.2 feet (ft)), with an internal interval assaying 2,260 gpt silver and 1.73 gpt gold (2,381 gpt AgEq) over 0.3 m true width (69.4 opT AgEq over 1.0 ft)
EXK Endeavour Silver Drilling Extends High Grade Silver-Gold Mineralization in Santa Cruz Vein at the Guanaceví Mine in Durango, Mexico
Vancouver, Canada – August 30, 2017 – Endeavour Silver Corp. (NYSE: EXK, TSX: EDR) announces that exploration drilling at the Guanaceví mine in Durango State, Mexico has extended high grade silver-gold mineralization along strike within the Santa Cruz vein and discovered new ore grade mineralization within a shallow, parallel splay of the Santa Cruz vein known as the La Negra vein. These holes extend the boundaries of the current resource area (dated December 31, 2016). Drilling highlights include 786 grams per tonne (gpt) silver and 0.71 gpt gold (836 gpt AgEq) over 3.4 m true width (24.4 opT AgEq over 11.2 feet (ft)), with an internal interval assaying 2,260 gpt silver and 1.73 gpt gold (2,381 gpt AgEq) over 0.3 m true width (69.4 opT AgEq over 1.0 ft) (view long sections here).
Results for nine new drill holes are summarized in the table below Click Here Silver equivalents are calculated at a ratio of 70:1 silver:gold.
Bradford Cooke, CEO of Endeavour Silver, commented, “These encouraging drill results continue to extend the resource envelope in the Santa Cruz vein at Guanaceví along strike from our current reserves and operating production areas. Another 15 drill holes have been completed and are in the lab for assaying. The 2017 drill program will wrap up this month below budget and ahead of schedule. We will then commence the process of the year-end resource and reserve estimation.”
Godfrey Walton, M.Sc., P.Geo., Endeavour’s President and COO, is the Qualified Person who reviewed and approved this news release and supervised the drilling programs in Mexico. A Quality Control sampling program of reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish.
|
|
|
Post by Entendance on Sept 11, 2017 6:12:07 GMT -5
6:56 AM ET 9/11/17 | Briefing.com
EXK Endeavour Silver acquires the right to explore and mine for precious metals above the elevation of 2,000 metres above sea level on the 181-hectare Toro del Cobre concessions owned by Capstone Mining. In return, Endeavour has granted Capstone the right to explore and mine for base metals below the elevation of 2,000 masl on the Endeavour's Calicanto concessions. For the purpose of this agreement, precious metal mineralization is defined as having greater than 60% net smelter revenue (NSR) value in gold and silver, and base metal mineralization is defined as having greater than 60% NSR value in copper, lead and zinc. Capstone has granted Endeavour a 1% NSR on all Capstone base metal production on Endeavour property, and Endeavour has granted Capstone a 1% NSR on all Endeavour precious metal production on Capstone property.
EXK Endeavour Silver and Capstone Mining Exchange Mineral Rights on Adjacent Properties in Zacatecas, Mexico
VANCOUVER, BC--(Marketwired - September 11, 2017) - Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) announces it has acquired the right to explore and mine for precious metals above the elevation of 2,000 metres above sea level (masl) on the 181-hectare Toro del Cobre concessions owned by Capstone Mining. Capstone's concessions are adjacent to the 75-hectare Calicanto concessions held by Endeavour in Zacatecas, Mexico. In return, Endeavour has granted Capstone the right to explore and mine for base metals below the elevation of 2,000 masl on the Endeavour's Calicanto concessions. Click here for a map. The unique agreement is based on the observation that vein mineralization locally in the Zacatecas mining district is typically zoned vertically, with precious metal-rich vein mineralization historically found and mined above 2,000 masl, and base metal-rich vein mineralization historically found and mined below 2,000 masl. Both the Toro del Cobre and Endeavour concessions were historically mined for precious metals above 2,000 masl, but they lie adjacent to Capstone's Cozamin mine, which is currently mining base metals below 2,000 masl.
The Calicanto, Nevada and El Misie veins on Endeavour's Calicanto concessions all trend northwest onto the Toro del Cobre concessions. Endeavour is interested in tracing the precious metal mineralization from its own property onto Capstone's property. In the same way, Capstone is interested in exploring the deeper portions of these and other veins for base metals on Endeavour's property.
For the purpose of this agreement, precious metal mineralization is defined as having greater than 60% net smelter revenue (NSR) value in gold and silver, and base metal mineralization is defined as having greater than 60% NSR value in copper, lead and zinc. Capstone has granted Endeavour a 1% NSR on all Capstone base metal production on Endeavour property, and Endeavour has granted Capstone a 1% NSR on all Endeavour precious metal production on Capstone property.
Should Endeavour's exploration efforts on the Toro del Cobre concessions indicate a continuation of precious metals mineralization below 2,000 masl elevation, Endeavour will be entitled to conduct exploration and mining of >60% precious metal ores below 2,000 masl. In the same way, should Capstone's exploration on the Calicanto concessions indicate a continuation of base metals mineralization above 2,000 masl elevation, Capstone will be entitled to conduct exploration and mining of >60% base metal ores above 2,000 masl.
About Endeavour Silver -- Endeavour Silver is a mid-tier precious metals mining company that owns three high grade, underground, silver-gold mines in Mexico. Since start-up in 2004, Endeavour has grown its mining operations organically to produce 9.7 million ounces of silver and equivalents in 2016. We find, build and operate quality silver mines in a sustainable way to create real value for all stakeholders. Endeavour Silver's shares trade on the TSX (EDR) and the NYSE (EXK).
***Major Gold-Stock Breakouts
|
|
|
Post by Entendance on Oct 24, 2017 6:04:04 GMT -5
Endeavour Silver announces that exploration drilling on the Parral property in Chihuahua State, Mexico has verified high grade silver mineralization within the Argentina-Remedios area of the Veta Colorada 6:56 AM ET 10/24/17 | Briefing.com Drilling highlights include 457 gpt silver over a 9.3 m true width (13.3 opT Ag over 30.5 feet (ft)) in hole CV26.5-1. Another high grade intercept assayed 4,641 gpt silver over a 2.3 m true width (135.3 opT Ag over 7.5 ft) in hole CV27-2.
EXK Endeavour Silver Drilling Verifies High Grade Silver Mineralization in the Veta Colorada on the Parral Project, Chihuahua, Mexico VANCOUVER, British Columbia, Oct. 24, 2017 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE:EXK) (TSX:EDR) announces that exploration drilling on the Parral property in Chihuahua State, Mexico has verified high grade silver mineralization within the Argentina-Remedios area of the Veta Colorada, which was drilled but never mined by a previous owner, IMMSA. Industrial Minera Mexico, S.A. de C.V. (IMMSA) operated a high grade silver mine on the Veta Colorada until 1990 and on closing left behind a 32.1 million oz historical silver resource contained in 4.0 million tonnes (t) grading 248.5 grams per tonne (gpt). A qualified person has not done sufficient work to classify this historical estimate as a current mineral resource, Endeavour has not verified the historical resource and is not relying on it as a current mineral resource. Twenty-one drill holes totaling 6,928 metres (m) of core were drilled to test the portion of the historic resource located within the Argentina-Remedios area of the Veta Colorada. (View long section here). The drill holes were spaced at approximately 100 m centres over an area 400 m long by 400 m deep. Drilling highlights include 457 gpt silver over a 9.3 m true width (13.3 opT Ag over 30.5 feet (ft)) in hole CV26.5-1. Another high grade intercept assayed 4,641 gpt silver over a 2.3 m true width (135.3 opT Ag over 7.5 ft) in hole CV27-2.
Results for 12 high grade drill intercepts are summarized in the table HERE. Luis Castro, Vice President, Exploration for Endeavour Silver, commented, “These encouraging drill results help to verify the portion of the historic resource within the Argentina-Remedios area of the Veta Colorada. A new resource estimate will be prepared at year-end for release in the 1st quarter of 2018.
“Drilling is ongoing at other areas of the Parral property such as Palmilla and San Patricio, where there was a history of high grade mining but very little drilling and no previous resources, to test for new silver resources. We plan to release additional drill results during the 4th quarter of 2017.”
Godfrey Walton, M.Sc., P.Geo., Endeavour’s President and COO, is the Qualified Person who reviewed and approved this news release and supervised the drilling programs in Mexico. A Quality Control sampling program of reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish.
About Endeavour Silver – Endeavour Silver is a mid-tier precious metals mining company that owns three high grade, underground, silver-gold mines in Mexico. Since start‑up in 2004, Endeavour has grown its mining operations organically to produce 9.7 million ounces of silver and equivalents in 2016. We find, build and operate quality silver mines in a sustainable way to create real value for all stakeholders. Endeavour Silver’s shares trade on the TSX (EDR) and the NYSE (EXK).
Contact Information - For more information, please contact: Bradford Cooke, Chief Executive Officer Toll free: (877) 685-9775 Main: (604) 685-9775 Fax: (604) 685-9744 Website: www.edrsilver.com
|
|
|
Post by Entendance on Nov 2, 2017 5:59:41 GMT -5
EXK Endeavour Silver Reports Financial Results for Third Quarter, 2017 VANCOUVER, British Columbia, Nov. 02, 2017 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE:EXK) (TSX:EDR) released today its financial results for the third quarter ended September 30, 2017. Endeavour owns and operates three underground silver-gold mines in Mexico: the Guanaceví mine in Durango state, and the Bolañitos and El Cubo mines in Guanajuato state. The Company's financial performance in the Third Quarter, 2017 was down compared to the Third Quarter, 2016 due to lower production, higher operating costs and increased exploration and development expenditures. Production was slightly lower in Q3, 2017 compared to Q3, 2016 primarily due to operating issues at the Guanacevi mine, now partly resolved, and revised annual mine plans which led to lower throughput for the nine months ended September 30, 2017. However, production was higher in Q3, 2017 compared to Q2, 2017 primarily due to improved performance at all three mines. As a result, the Company's financial performance in the Third Quarter, 2017 was up compared to the Second Quarter, 2017, with higher revenues, cash flow and earnings and lower cash and all-in sustaining costs.
Highlights of Third Quarter 2017 (Compared to Third Quarter 2016)
Financial •Net earnings of $1.0 million(1) ($0.01 per share) compared to net earnings of $5.6 million ($0.04 per share) •EBITDA(2) decreased 39% to $6.1 million •Cash flow from operations before working capital changes decreased 31% to $5.7 million •Mine operating cash flow before taxes(1) decreased 33% to $11.9 million •Revenue decreased 5% to $39.8 million •Realized silver price decreased 10% to $17.20 per ounce (oz) sold •Realized gold price decreased 3% to $1,299 per oz sold •Cash costs(2) increased 54% to $8.11 per oz silver payable (net of gold credits) •All-in sustaining costs (AISC)(2) increased 53% to $17.53 per oz silver payable (net of gold credits) •Working capital decreased 6% to $70.3 million from Q2, 2017
Operations •Silver production decreased 2% to 1,262,064 oz •Gold production decreased 5% to 13,648 oz •Silver equivalent production was 2.2 million oz (at a 70:1 silver: gold ratio) •Silver oz sold increased 6% to 1,275,922 oz •Gold oz sold down 3% to 13,759 oz •Bullion inventory at quarter-end included 196,092 oz silver and 466 oz gold •Concentrate inventory at quarter-end included 37,043 oz silver and 633 oz gold
Exploration and Development •Made production decision and commenced development of El Compas mine in Zacatecas •Acquired additional prospective exploration properties near El Compas in Zacatecas •Released high grade drill results for Santa Cruz orebody in Guanacevi •Commenced development of mine ramp to access Milache orebody at Guanacevi by mid-2018 •Released high grade drill results for Terronera and La Luz mineralized zones at Terronera •Received mine and plant permits for Terronera •Appointed Vice President, Engineering to oversee technical services and development projects 1.The Consolidated Interim Financial Statements and Management’s Discussion & Analysis can be viewed on the Company’s website at www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov. All amounts are reported in US$ 2.Mine operating cash flow, EBITDA, cash costs and all-in sustaining costs are non-IFRS measures. Please refer to the definitions in the Company’s Management Discussion & Analysis Endeavour CEO Bradford Cooke commented, “Our Third Quarter earnings, cash flow and revenues were down from Q3, 2016 but improved significantly compared to the Q2, 2017. Given that Guanacevi had to deal with new electrical and pump issues due to a lightning strike in July, now partly resolved, we anticipate continued improvement of our operating and financial performance in the Fourth Quarter 2017.
“Returning Guanaceví to long-term profitability relies in part on developing two new orebodies, Milache and Santa Cruz Sur. Underground ramp access is already underway towards Milache with initial production expected in the second half of 2018. Mine development at Santa Cruz Sur is scheduled to commence this quarter with initial production to coincide with production from Milache.
“Development of the El Compas mine and refurbishment of the La Plata plant are now well underway, with initial production scheduled to commence by the end of the First Quarter, 2018. We also received the mine and plant permits for Terronera and continue to conduct engineering trade-off studies while we await receipt of the dumps and tailings permits.
“We appointed Andrew Sharp as our new VP, Engineering to oversee our technical services and development projects. Over the past three months, he has built a core engineering team including managers of mining, metallurgy, construction, permitting and resource estimation to significantly expand our internal capabilities.
Third Quarter Financial Results For the third quarter ended September 30, 2017, the Company generated revenue totaling $39.8 million (2016 - $42.1 million). During the quarter, the Company sold 1,275,922 silver oz and 13,759 gold oz at realized prices of $17.20 and $1,299 per oz respectively, compared to sales of 1,200,467 silver oz and 14,228 gold oz at realized prices of $19.16 and $1,340 per oz respectively in Q3, 2016.
After cost of sales of $32.5 million (2016 - $26.9 million), mine operating earnings amounted to $7.3 million (2016 –$15.2 million). Excluding depreciation and depletion of $4.4 million (2016 - $2.8 million), and share-based compensation of $0.1 million (2016- $0.2 million), mine operating cash flow before taxes was $11.9 million (2016 – $17.8 million) in Q3, 2017. Net earnings were $1.0 million (2016 –$5.6 million) after exploration expenses of $3.4 million (2016 – $2.4 million) and corporate general and administrative costs of $1.6 million (2016 – $2.8 million).
Direct production costs per tonne in Q3, 2017 increased 19% compared with Q3, 2016. Reduced production at Guancevi was the key driver behind the higher costs. Cash costs rose 54% on a consolidated basis due to the higher costs per tonne offset by slight improvement in grades and recoveries. All?in sustaining costs rose as a result of management significantly increasing capital investments for the long-term benefit of Guanaceví and El Cubo after a two?year period of reduced capital investment to maximize cash flow and ensure the viability of its operations during low silver and gold prices. Working capital was $70.3 million, down 14% and 6%, respectively from December 31, 2016 and June 30, 2017. The working capital on-hand is determined to be sufficient for the Company to meet its short and medium term goals.
Conference Call A conference call to discuss the results will be held today, Thursday, November 2nd at 10am PDT (1pm EDT). To participate in the conference call, please dial the following:
Toll-free in Canada and the US: 1-800-319-4610 Local Vancouver: 604-638-5340 Outside of Canada and the US: 1-604-638-5340
No pass-code is necessary to participate in the conference call.
A replay of the conference call will be available by dialing 1-800-319-6413 in Canada and the US (toll-free) or 1-604-638-9010 outside of Canada and the US. The required pass-code is 1722 followed by the # sign. The audio replay and a written transcript will also be made available on the Company’s website at www.edrsilver.com
|
|
|
Post by Entendance on Nov 7, 2017 13:27:15 GMT -5
banksters Cartel International
"...Financial services industry employees are trained to talk customers out of buying gold. They do this by pointing out its price volatility and riskiness. (The public has no idea that the gold price is manipulated, and fake.) If the customer still wants to buy it, then the broker steers them into electronic gold, such as bullion bank-controlled ETFs and major mining company equities. This sterilizes the investor’s funds, and prevents them from being used to buy physical precious metals, which would interfere with the price rigging crime by increasing physical demand for and the price of gold, given its consistently tight supplies. It would also lessen capital flows onto the Gold Looting Field, the exact opposite of the Deep State manipulators’ agenda...
...The larger purpose behind the Deep State’s electronic gold products, beyond current profits, is to concentrate investment gold in a select number of locations that will be easy to control and raid when the time comes... ...For investors, electronic gold is nothing but modern day Fools’ gold. For the Deep State, it is a free ride, on investors’ backs, to the most massive physical gold theft of all times. Taken together, we believe these factors present a compelling argument why investors should exit all of the electronic gold products specified at the beginning of this article, and convert the proceeds into physical gold and/or non-Deep State-controlled equities of companies in which they have full confidence that managements are working for them, not the bullion banks. The fact is that the Deep State manipulation of the gold price is never going to end until people stop buying electronic gold and providing the liquidity the Deep State needs to continue perpetrating the gold price rigging crime..." ***Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom
|
|
|
Post by Entendance on Apr 9, 2018 5:50:14 GMT -5
Endeavour Silver reports Q1 production results 6:10 AM ET 4/9/18 | Briefing.com Silver production in the First Quarter, 2018 increased 25% to 1,350,840 ounces (oz) compared to 1,076,974 oz silver in Q1, 2017 and gold production rose 13% to 13,208 oz compared to 11,724 oz gold in Q1, 2017, resulting in silver equivalent production of 2.3 million oz using a 75:1 silver-gold ratio.Silver production was higher in Q1, 2018 compared to Q1, 2017 due to higher mine output and ore grades at El Cubo and Bolaitos, partly offset by lower mine output at Guanacevi as the mine continues to recover from some operating issues last year. Gold production in Q1, 2018 compared to Q1, 2017 was higher at El Cubo and Guanacevi and lower at Bolaitos due to variations in gold grades at each mine.The El Compas mine development project remains on schedule for mine and plant commissioning to commence in April and commercial production to be achieved by the end of July.
At the Entendance Beach we continue to like Endeavour Silver in 2018
April 09, 2018 ***Endeavour Silver Produces 1,350,840 oz Silver and 13,208 oz Gold (2.3 Million oz Silver Equivalents) in the First Quarter, 2018; Provides Update of the El Compas Mine Development Project VANCOUVER, British Columbia, April 09, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (TSX:EDR) (NYSE:EXK) reports its production results for the First Quarter, 2018 from the Company’s three silver-gold mines in Mexico: the Guanaceví mine in Durango state and the Bolañitos and El Cubo mines in Guanajuato state. Silver production in the First Quarter, 2018 increased 25% to 1,350,840 ounces (oz) compared to 1,076,974 oz silver in Q1, 2017 and gold production rose 13% to 13,208 oz compared to 11,724 oz gold in Q1, 2017, resulting in silver equivalent production of 2.3 million oz using a 75:1 silver-gold ratio. Silver production was higher in Q1, 2018 compared to Q1, 2017 due to higher mine output and ore grades at El Cubo and Bolañitos, partly offset by lower mine output at Guanacevi as the mine continues to recover from some operating issues last year. Gold production in Q1, 2018 compared to Q1, 2017 was higher at El Cubo and Guanacevi and lower at Bolañitos due to variations in gold grades at each mine.
Production Highlights for First Quarter, 2018 (Compared to First Quarter, 2017) •Silver production increased 25% to 1,350,840 oz •Gold production increased 13% to 13,208 oz •Silver equivalent production was 2.3 million oz (at a 75:1 silver:gold ratio) •Silver oz sold increased 14% to 1,406,143 oz •Gold oz sold increased 12% to 12,674 oz •Bullion inventory at quarter-end included 85,675 oz silver and 302 oz gold •Concentrate inventory at quarter-end included 74,359 oz silver and 1,195 oz gold
Bradford Cooke, Endeavour CEO, commented, “Our First Quarter production was much improved over last year. As a result, we are on track to deliver higher production and lower costs in 2018 thanks to improved operating performance at each of the three existing mines and the development of our fourth mine at El Compas into commercial production by the end of July. “Our quarterly production profile should continue to improve this year as Guanacevi benefits from the productivity optimization program now underway and Bolañitos and El Cubo continue mining higher silver grades as per their 2018 mine plans. Metal recoveries were a bit lower than planned in Q1, 2018 but are expected to improve during the year.”
Operations Summary for First Quarter, 2018
At Guanacevi, mine output was lower due to mine development falling behind schedule in 2017 and the reallocation of mine personnel to implement a productivity optimization program. Silver and gold grades were both higher due to better dilution control, so that silver equivalent production in Q1, 2018 was only slightly lower than Q1, 2017. Mine output, development and productivity should improve in Q2, 2018. At Bolañitos, mine output and silver grades were higher but gold grades were lower due to variations within the LL-Asunción vein. Silver equivalent production in Q1, 2018 was significantly higher than Q1, 2017. Grades are expected to return to plan during the year. At El Cubo, mine output, silver grades and gold grades were all higher in Q1, 2018 compared to Q1, 2017, which resulted in a sharp increase in production in Q1, 2018.
El Compas Mine Development Project Update The El Compas mine development project remains on schedule for mine and plant commissioning to commence in April and commercial production to be achieved by the end of July. El Compas finally received its explosives permit in March, which allowed the mine to accelerate the development of the main access ramp. The main ramp was at 355 metres as of March 31. The San Juan vein was intersected and 28 metres were developed along the vein. Mining should commence on the main El Compas vein later this month. The last plant component, a mobile crushing circuit, arrived on site in March and is currently being installed. The rest of the plant, tailings dam and surface infrastructure construction projects are essentially complete. A small stockpile of low grade ore has been started. To view the March 31, 2018 photographic update for the El Compas Project, click HERE or visit our website under the Mining Assets section.
Production Tables for First Quarter, 2018
Release of First Quarter, 2018 Financial Results and Conference Call The 2018 First Quarter Financial Results will be released before market on Thursday, May 3, 2018 and a telephone conference call will be held the same day at 9:00am PT (12:00pm ET). To participate in the conference call, please dial the numbers below. No pass-code is necessary.
Toll-free in Canada and the US: 1-800-319-4610 Local Vancouver: 604-638-5340 Outside of Canada and the US: +604-638-5340 A replay of the conference call will be available by dialing 1-800-319-6413 in Canada and the US (toll-free) or +604-638-9010 outside of Canada and the US. The required pass-code is 2164#. The audio replay and a written transcript will be available on the Company's website at www.edrsilver.com under the Investor Relations, Events section.
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three high-grade, underground, silver-gold mines in Mexico. The Company is forecasting 20% production growth to 10.2-11.2 million oz silver equivalent in 2018. Endeavour is currently developing its fourth high-grade, underground, silver‑gold mine in Mexico and has a compelling pipeline of exploration and development projects 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 - For more information, please contact: Galina Meleger, Director, Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: gmeleger@edrsilver.com Website: www.edrsilver.com
Sound and Honest Money: ***Fred & Entendance Gold & Silver Beach
***Fred & EntendanceInvestors Beach Wealth Preservation Principles
"We now have the most bullish setup for silver that we have ever seen. After trading sideways / down for over 20 months now, investors have completely lost interest in it, which is of course the perfect breeding ground for a huge rally that seems to come out of nowhere. As we will proceed to see both COTs and the silver to gold ratio are at record extremes that point to a major bullmarket in silver starting imminently..." ***THE STUNNING SILVER SETUP...
Meanwhile... ***Global Silver Scrap Supply Falls To 26-Year Low
E. on twitter
|
|
|
Post by Entendance on Apr 17, 2018 3:23:51 GMT -5
EXK April 18, 2018 Interview with Bradford Cooke, Endeavour Silver CEO at Commodity TV in Munich
EXK Mexico Management Appointments and Departure VANCOUVER, British Columbia, April 18, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE:EXK) (TSX:EDR) announces several key management appointments in Mexico to augment the Operations group, including Marco Meneses as General Manager for the Guanajuato District and the El Cubo and Bolanitos mines, Jorge Coss as the General Manager for the Zacatecas District and the new El Compas mine, and Jose Luis Nevarez as the Project Leader for the Terronera mine development project. Endeavour has completed its search for a new Vice President, Project Development and expects to make an announcement in May.
The Company also announces that Tomas Iturriaga, Vice President of Operations, has resigned from his position for personal reasons. Godfrey Walton, COO, will assume Mr. Iturriaga’s responsibilities until a new appointment is made. Endeavour board and management thank Tomas for his contributions and wish him well in his future endeavours.
***Dynamics Are Converging And Forming A Financial Storm But Shelter Can Be Found In Silver
***GOLD SHOULD BE $16,450 & SILVER $761
|
|
|
Post by Entendance on May 3, 2018 6:13:14 GMT -5
***May 03, 2018
Endeavour Silver Reports First Quarter, 2018 Financial Results; Conference Call at 9am PDT (12pm EDT) Today
VANCOUVER, British Columbia, May 03, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE:EXK) (TSX:EDR) released today its financial results for the period ended March 31, 2018. The Company owns and operates three underground silver-gold mines in Mexico, the Guanaceví mine in Durango state, and the Bolañitos and El Cubo mines in Guanajuato state. Endeavour is also developing the El Compas mine project in Zacatecas state to production and advancing the Terronera mine project in Jalisco state to a development decision.
The Company’s net earnings in the First Quarter, 2018 were lower than in the First Quarter, 2017, primarily due to higher depreciation and depletion charges. Revenue was up 11% due to higher production, mine operating cash flow before taxes(1) increased 16% to $13.8 million, cash flow from operations before working capital charges increased 30% to $11.6 million and EBITDA rose 24% to $11.1 million.
Highlights of First Quarter 2018 (Compared to First Quarter 2017) Financial •Net earnings decreased 61% to $2.3 million ($0.02 per share) •EBITDA(1) increased 24% to $11.1 million •Cash flow from operations before working capital changes increased 30% to $11.6 million •Mine operating cash flow before taxes(1) increased 16% to $13.8 million •Revenue increased 11% to $40.3 million •Realized silver price decreased 6% to $16.70 per ounce (oz) sold •Realized gold price increased 4% to $1,330 per oz sold •Cash costs(1) fell 17% to $6.50 per oz silver payable (net of gold credits) •All-in sustaining costs(1) fell 22% to $14.18 per oz silver payable (net of gold credits) •Cash and cash equivalents dipped 7% to $36.6 million •Working capital was flat at $66.6 million compared to $66.2 million at year end
Operations •Silver production increased 25% to 1,350,840 oz •Gold production increased 13% to 13,208 oz •Silver equivalent production was 2.3 million oz (at a 75:1 silver: gold ratio) •Silver oz sold increased 14% to 1,406,143 oz •Gold oz sold increased 12% to 12,674 oz •Bullion inventory at quarter-end included 85,675 oz silver and 302 oz gold •Concentrate inventory at quarter-end included 74,359 oz silver and 1,195 oz gold •El Compas mine development on track for commercial production by July 31, 2018 •Terronera engineering trade-off studies on track for optimized pre-feasibility study in Q2, 2018 •Announced a Preliminary Mineral Resource for the Parral properties in northern Mexico 1.EBITDA, mine operating cash flow, cash costs and all-in sustaining costs are non-IFRS measures. Please refer to the definitions in the Company’s Management Discussion & Analysis.
Bradford Cooke, Endeavour CEO, commented, “Our First Quarter 2018 financial performance was better than last year, with revenue, cash flow and EBITDA all up year-on-year, but net earnings down due to higher depreciation and depletion. With our production rising and cash and all-in sustaining costs falling, the First Quarter was a good start on meeting our guidance for the year.
“Guanacevi continues to be our highest cost mine but we saw incremental month-to-month improvement during the quarter as the productivity optimization program launched in January started to gain traction. El Cubo contributed lower costs thanks to higher production and grades and Bolanitos continues to be our lowest cost mine notwithstanding lower grades in Q1, 2018.”
Financial Results For the first quarter ended March 31, 2018, the Company generated revenue totaling $40.3 million (2017 - $36.4 million). During the quarter, the Company sold 1,406,143 silver ounces and 12,674 gold ounces at realized prices of $16.70 and $1,330 per ounce respectively, compared to sales of 1,235,594 silver ounces and 11,290 gold ounces at realized prices of $17.79 and $1,280 per ounce respectively in Q1 2017. After cost of sales of $37.0 million (2017 - $28.6 million), mine operating earnings amounted to $3.3 million (2017 - $7.8 million) from mining and milling operations in Mexico. The 29% increase in cost of sales was primarily due to increased depreciation and depletion. Excluding depreciation and depletion of $9.8 million (2017 - $4.1 million), share-based payments of $37,000 and inventory write down of $0.8 million, mine operating cash flow before taxes was $13.8 million (2017 – $12.0 million) in Q1, 2018.
Net earnings were $2.3 million (2017 –$6.0 million) after exploration, general and administrative, foreign exchange, other income and taxes.
Direct production costs per tonne in Q1, 2018 increased 5% compared with Q1, 2017. The higher production costs per tonne were the result of Guanaceví’s lower mine output due to mine development falling behind schedule in 2017. A productivity optimization program designed and overseen by a third party launched in January at Guanacevi aims to review and improve every aspect of operations, from employee culture to people and equipment availability to planning, execution, supervision and reporting. This seven month program is intended to return Guanacevi to normal operations in Q3, 2018. The higher costs at Guanaceví were offset by lower costs at Bolañitos and increased proportion of production from the El Cubo operation.
The higher costs per tonne were offset by higher grades primarily at El Cubo. The improved grades resulted in 17% lower cash costs per oz, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute). Similarly, all-in sustaining costs (also a non-IFRS measure) which, compared to Q1, 2017, decreased 22% to $14.18 per oz in Q1, 2018. This decrease in all‑in sustaining costs was a result of the lower operating costs per oz and the lower capital expenditures in Q1, 2018 compared to Q1, 2017.
The Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis can be viewed on the Company’s website at www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov. All amounts are reported in US$.
Conference Call A conference call to discuss the results will be held today, Thursday, May 3, 2018 at 9am PDT (12pm EDT). To participate in the conference call, please dial the numbers below. No pass-code is necessary.
Toll-free in Canada and the US: 1-800-319-4610 Local Vancouver: 604-638-5340 Outside of Canada and the US: + 604-638-5340
A replay of the conference call will be available until May 17, 2018 by dialing 1-800-319-6413 in Canada and the US (toll-free) or + 604-638-9010 outside of Canada and the US. The required pass-code is 1087#. The replay will also be available on the Company’s website at www.edrsilver.com About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three high-grade, underground, silver-gold mines in Mexico. The Company is forecasting 20% production growth to 10.2-11.2 million oz silver equivalent in 2018. Endeavour is currently developing its fourth high-grade, underground, silver‑gold mine in Mexico and has a compelling pipeline of exploration and development projects 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 - For more information, please contact: Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: gmeleger@edrsilver.com
Website: www.edrsilver.com
|
|
|
Post by Entendance on May 5, 2018 2:02:12 GMT -5
Executives Galina Meleger - Director, IR Bradford Cooke - CEO Godfrey Walton - President and COO Dan Dickson - CFO
Analysts Mark Reichman - NOBLE Financial Heiko Ihle - H.C. Wainwright Ryan Thompson - BMO Capital Markets Dalton Baretto - Cannacord Genuity Mark Reichman - NOBLE Financial
Q1 2018 Results Conference Call May 4, 2018 12:00 PM ET
Bradford Cooke Welcome, everybody, to our Q1 financial results call. I'd like to start, as usual, with a brief overview of the results released this morning. And then we can open it up for Q&A. So our first quarter this year, I think was certainly better than last year with revenue and cash flow and EBITDA all up year-on-year. Earnings did dip however due to higher depreciation and depletion, still positive, but lower than last year, Q1. We did prerelease our production. And obviously, we had a good quarter, a good start to the year in terms of rising production. So silver on Q1 was up 25% to 1.35 million ounces. Gold production was up 13% to 13,200 ounces. And silver equivalent production was up about 20% to 2.3 million ounces. With that did was drive slightly higher revenues, up 11% to $40.3 million. Mine operating cash flow, up 16% to $13.8 million. Cash flow from operations, up 30% to $11.6 million. EBITDA, up 24% to $11.1 million, and that resulted in a net earnings decrease of 61% to $2.3 million. On a per mine basis, Guanaceví continues to be our highest cost mine but we did see incremental improvement month-on-month during the quarter. We are expecting a similar quarter at Guanaceví in Q2 as we're in the middle of productivity optimization program launched in January. But we are obviously still optimistic that Guanaceví will come out of that program in Q3 and Q4 with significantly better performance. El Cubo contributed to our lower costs, thanks primarily to its higher production and higher grades. And Bolañitos continues to be our lowest cost line, notwithstanding slightly lower grades in Q1. In fact, on a per mine basis, Bolañitos and Cubo were obviously -- silver production was up year-on-year. The only holdback was Guanaceví's slightly lower in the first quarter this year compared to the first quarter last year. On the gold production side, again Guanaceví and Cubo were the outperformers and it was actually Bolañitos due to lower grades, lower gold grades that slightly underperformed the first quarter of last year. How that drove revenue? We saw Guanaceví revenues slightly down year-on-year. But Bolañitos and Cubo revenues were both up sharply. And how that translated into our costs? We saw a slight increase in Guanaceví cash cost but a dip in Guanaceví all-in sustaining costs. Whereas both Bolañitos and Cubo on both a cash basis and an all-in sustaining basis were significantly lower cost in Q1 2018 compared to Q1 '17.
Mark Reichman, NOBLE Financial First on Guanaceví, beyond the improvement in plant throughput to 1,050 tons per day in Q4, I think you've said an average of 1,000 tons per day in 2018 and then access to the new orebodies in Q4. What specific enhancements are being made there? And I think you've said second quarter, kind of expect the same performance as Q1. But what can we expect over the next several quarters in terms of grades, recoveries and just overall improved financial performance?
Bradford Cooke Well, I'll give a general answer and Godfrey can give you some specifics. Basically, there's two initiatives to turn the quarter at Guanaceví. One is this productivity optimization program which isn't really retraining people how to do their jobs, it's retraining them on how to understand the management systems that make their jobs better and easier. So maintenance schedules and equipment availability schedules, personnel availability schedules, supervision, all these types of management systems are what's getting a full scrutiny at this time. The other main driver, to return Guanaceví to profitability is the development of two new orebodies previously discovered and now under development. Milache will the first to come on later this year. We've already extended the mine access ramp out above the orebody and we're now ramping down towards the orebody at Milache. So developing two new orebodies really refreshes the outlook at Guanaceví for several years because typically in these epithermal vein systems, the tops of the orebodies are obviously shallower. But also typically higher grade whereas the bottoms are deeper and lower grade, and so obviously, you drive lower cost at the tops of the ore bodies and higher costs at the bottom. The current operations at Guanaceví are literally at the bottoms of the Porvenir Norte and Santa Cruz orebodies. So opening up two new orebodies does refresh the operations for years to come.
Godfrey Walton The expectation is that we will be driving into Milache on four different levels starting in August. We're in the process of just finishing off the water on the plateau for any potential water that we're going to hit in the mine. We are also finishing off the ventilation. So that's having four accesses open into Milache will provide the extra tons that we need to fill the plant and allow us to actually drop our cost quite a bit more. We are already cutting our costs with some of these efficiencies that we are doing, in both in the mine and in the maintenance area. And so we expect Guanaceví to do actually quite well. And then we will be starting on Santa Cruz Sur within the next month or so and that will also bring us a lot more mineral and a lot higher grade than we're currently processing.
Mark Reichman And then just second on Terronera, could you just walk us through the expected permit and Board approvals and the tranches of expected financings. I mean, is the Board expected to approve a production decision at its May meeting pending permit approvals or will a separate call be arranged once the permits are on hand?
Bradford Cooke We already had this discussion at the Board level at our March meeting. And what they've asked us to do is go and finish the optimization of the prefis, get the final two permits from the government, arrange the first tranche of financing and come back to the Board for a production decision. So we are still expecting all of that to happen this quarter. So quite a to-do list at Terronera, we always luck will break ground by the end of the quarter. But I can't actually forecast which months, for instance, the government's going to give us the permits. They've indicated that they're getting close and we'll take them at their word for that. So we are hoping this quarter to finish all that off and get going on Terronera.
Heiko Ihle, H.C. Wainwright So you ended the quarter with $36.6 million. It's not a little bit from year-end 2017 and essentially offset by lower accounts payable and other current liabilities, right? So just sort of walk me through your cash plans for the rest of the year. I mean, obviously, you have some expenses in Mexico coming up with El Compas. And maybe if you just sort of walk us through quarter by quarter, if that's possible?
Dan Dickson Hey, Heiko. Dan, hopeful as well. I don't have the quarter by quarter breakdown. We actually don't release that in our guidance. But I can tell you for Compas, I mean, the specific question on that. We had a projected capital expenditure of $7 million for the year. We spent $3 million of that in Q1. Right now with Terronera, we're waiting on permits and waiting on Board approval to move ahead with that and timing. That's going to greatly affect our cash flows and obviously we need financing to help move that forward.
So until we have that Terronera finalized, I would be a little bit wary talking about each specific quarter in such manner. But we -- you know that Bolañitos added $3 million of cash to our balance sheet. Cubo added $3.5 million to our balance sheet and Guanaceví was actually negative free cash flow in the quarter. We expect that to continue and we expect Guanaceví to actually start to contribute to the cash balance.
So it really comes down to the capital expenditures planned for the year with our exploration expenditures. We spend about $2 million in Q1 on the exploration. We had the plan of $11.1 million for the year. So effectively, what we saw in this quarter is going to be continued through the year, but then you've got the curveball coming in of Terronera. And then with Compas coming off line, we are done spending that here at the end of April. It should improve and we should hover where we are.
Bradford Cooke Heiko, I was just going to say that, with regard to our capital spending program and cash balance, we clearly intended to use our cash to build El Compas and we're through the bulk of that spend now. There's still some sustaining CapEx, sorry, to spend through the rest of this year. But all of the development CapEx has pretty much been spent. And we are in commissioning now. So we think that Compas is going to be significantly accretive to our production in the second half. The other part of the production growth formula for us was getting Guanaceví back on track. And again, we're forecasting a significantly better second half for Guanaceví compared to the first half, so that will also help our cash balance. With regard to the capital spend at Terronera, we are diligently working on our first phase of debt financing which we hope to have in place this quarter. And that will completely fund this year's Terronera CapEx and actually spill into next year's CapEx. We would need -- we will need a second debt tranche later this year to fund the bigger budget next year. So in terms of the overall financing package to build Terronera, we're looking at about $25 million Phase I debt, $25 million Phase II debt and about $20 million of cash, cash flow and or equity if the stock is better. So that's how we're financing Terronera.
Heiko Ihle Okay. $25 million debt, $25 million debt, $20 million debt equity cash flow, we will see?
Bradford Cooke Right. And we still are optimizing the prefis. So the CapEx is not set in concrete yet. It may go up a bit, it may go down a bit. We're still working on that. And we hope to have that definitive optimized prefeasibility study out this quarter.
Heiko Ihle Okay, fair enough. You've got some pretty meaningful inventories there, in both gold bullion and in concentrates. I mean, I calculated earlier today, it was 2.7 million in silver, then about 2 million in gold. At what price -- and the answer might be never, would you ever consider hedging some of that?
Dan Dickson Hey, Heiko. Yes, that's just our quarter end typical inventory balance that we have. So we ship out almost on a weekly basis. We don't -- the payback time on when we sell that inventory, we'd sell it shortly after quarter end or month ends and we get paid within a month. We typically wouldn't think about hedging our inventories. At that point, we could do off-take agreements if we felt prices are going to fall and sell it all. But we see that just being consistent and no point putting a hedge on that.
Ryan Thompson, BMO Capital Markets Most of my questions have already been asked. But I just have a few sort of housekeeping things for my model. First of all, could you just address the higher depreciation expense and how we should think about that going forward?
Dan Dickson Yes, thanks, Ryan. At Guanaceví, we had a big jump in depreciation and depletion. That's just a function of -- we put $18 million of development into Guanaceví last year. We didn't have a significant bump in reserves, partly with the challenges that we had experienced in the beginning of the year and partly because we went with a more conservative reserve calculation last year. And a lot of people probably on this call is familiar with, that we have very conservative reserve parameters that are within 10 meters of a working phase for proven and 25 more meters from that on probable ounces. So with Guanaceví, we'll effectively be depleting most of that mine development that we put in last year in 2018. That's the biggest driver. If you'd recall, in 2015 and 2016, we put very little capital when prices were low into those mines and we've depleted all that stuff, which were a lot smaller numerators than what we're dealing with now. So we'll expect that to come through in Q2 and Q3 to be very similar at Guanaceví for a depreciation rate.
Dan Dickson And just to augment that, obviously developing two new orebodies means that we'll be moving significant resources into reserves this year. So that formula should change.
Ryan Thompson And Cubo? Cubo, should we expect similar run rates as well?
Dan Dickson Yes, I'd expect similar run rates into Q2 and Q3, from Q1.
Ryan Thompson Okay, that's helpful. And then just another one, I noticed that the royalty payment at Bolañitos sort of ticked up a bit. Is that just a one-time event or is there higher royalty going forward?
Dan Dickson There's two things that flow through royalties in -- under cost sales for Bolañitos. That's the Special Mining Duty that's paid to government and then the 0.5% royalty for the government. In Q1, the tick up was just Special Mining Duty, just -- I would say similar -- you would expect similar for Q2 and Q3, Q4. Compared to last year, it was just at the beginning of last year, we had an adjustment for taxes paid in Q1.
Godfrey Walton So just to be clear, that's all government taxation.
Dan Dickson Yes.
Ryan Thompson And that's the 7.5% EBITDA tax or is that ...?
Godfrey Walton Exactly.
Dan Dickson Exactly.
Dalton Baretto, Cannacord Genuity Brad, I'd like to circle back to this efficiency program that you have going at Guanaceví. What's the intent there? Is it higher production, is it lower cost or is it both?
Bradford Cooke It's both. And so again coming back to the theme of analyzing and improving our systems, we hired an international consulting firm called Jameson and they've embedded four senior mining people into our workforce. So that during the seven months productivity program, they will actually meet and discuss with every single employee and contractor, the purpose of the program and how to achieve the goals of the program, we call the program, or they call the program enfoque 2018, focus 2018. And it's a way to revive the -- not only the efficiency of the workforce but the attitude of the workforce. We recognized last year we had an operating problem there. So which system? I, we're obviously, equipment maintenance, personnel maintenance, supervision techniques, leadership techniques. Godfrey, anything you want to add?
Godfrey Walton Yes, I mean, we're looking -- the program is looking at -- give it time for dilution, mining methods and so it's a complete revamp of how we approach the mine maintenance and getting the guys -- aimed down at getting the guys in and out of a mine. Just making everything far more efficient so that during a shift, instead of taking one hour to get to the phase there, they're at the phase in 30 minutes, and so those kind of efficiencies -- how you'd -- them to spend more time actually mining what they need to mine. And making sure the equipment, we used to bring all our equipment out on surface for maintenance at the end of each shift. Now that's all done at the phase underground. And again, you're getting far more better utilization of equipment, better utilization of people in the operation.
Bradford Cooke And so what's next in the program -- let me just finish on this one. Q1 was basically focused on equipment and personnel availability. So Q2 is focused primarily on pushing the waste development. That is the access to more stopes, because that's the key to increasing the production and driving cost down.
Dalton Baretto Yes, I guess, what I'm trying to understand though is, how this actually impacts your financials. So you talked about personnel utilization, equipment utilization. Does that mean you're going to have less people, like is there labor savings there? Are you going to have less equipment, is there an equipment savings there? That's the part I'm trying to understand.
Godfrey Walton Well, I'm looking at the equipment. For example, before we started this, I got the request, well we need three new scoops. And I said, okay, are you sure? And this doesn't sound quite right. Having gone through the process, we recognize that we've got extra scoops. And so, A, we don't need three new scoops. And, B, we actually have more scoops than we need. And so that's part of the efficiency. That's -- we've already seen costs coming down on a cost per ton basis. By having people spend more time with them phase, they can actually mine more. So our tons are going to go up in the production side. The focus on where we are going to be mining waste and where we're going to be accessing new zones is all getting reorganized. And so that -- costs are coming down, tons are going up.
Dan Dickson And Dalton, this is Dan Dickson here. And you're looking at it probably from a modeling standpoint. If you look back at the history of Guanaceví, I mean we historically run our cost per ton in the low 90s, high 80s some quarters. And right now and then last year, we were at $110 per tonne, $112 per ton in this quarter, $120 per tonne, and that's a function of the lower throughput that's going through. I mean, Guanaceví used to run at 1,200 tons per day and now we've obviously dipped into the high 800s, and low 900s, some quarters. With the increase in tons, obviously we're going to drive down our cost per tonne. But also with the efficiencies, we're going to drive out some of the costs through that. So I would expect that we can get back into the low 90s when we get those tons back up and that's the plan going forward. In that $120 cost per tonne, some of the external consultants right now, that $6 of the $120. So when Jameson's off-site, that $6 should come out, then obviously gaining the efficiencies from a labor standpoint, less diesel going through, et cetera, et cetera, that will help. But the biggest driver to our cost per ton is getting those tons from 800, 900 tons per day up to the 1,100, 1,200 tons per day that we know this mine's historically done.
Dalton Baretto Okay. And you think you'll get there by Q3 this year?
Godfrey Walton That is what we are expecting, yes.
Dalton Baretto Okay, perfect. And then just maybe, just switching gears to Terronera a little bit. You've put out new guidance on kind of what you're thinking in terms of a production rate. And I know that you have feasibilities coming up this quarter. Can you give us some early guidance in terms of what you're thinking directionally on CapEx and OpEx, as a trade-off to that lower production rate?
Bradford Cooke Yes, so we were at 2,000 tons per day in the initial prefis one year ago. We're now targeting 1,500 tons per day in the soon to be published optimized prefis. And we did a, quite an extensive analysis based on the existing reserve base of what the optimal throughput would be. And 1,500 tons was the answer. So we've already got two mines at that rate, Bolañitos and Cubo. And these orebodies are all very similar. I guess what's different about Terronera is that we modeled a seven year mine life last year. But through infill drilling of the inferred resource this year, we can get, I think much close to a 10 year life with -- not for release in June, but certainly by year-end when we finish the drilling program. And that obviously helps the economics of Terronera as well. It also naturally breaks into two phases, that's why we broke the CapEx into two phases. During the first year of operations of Terronera, we're -- it's totally focused on underground development and opening up new areas for stoping. And so the average for the first year was only going to be 750 tons per day anyway. So we targeted a two-phase CapEx program, 750 tons followed by another 750 tons. And that's why we are able to break our debt facility into two pieces as well.
Dalton Baretto Okay, great. And just maybe one last one, back on Guanaceví. I noticed that the sustaining CapEx this quarter was, it was only about 10% to 12% of the overall guidance for the year. So is it heavily back half weighted?
Dan Dickson Not heavily back half weighted. We should see that pickup in Q2. As Brad said, part of the Jameson program here is going to be driving mine development and waste development specifically, so we can open up more stopes. So I'd expect more of that to pick up in Q2 and Q3.
Mark Reichman, NOBLE Financial Just a quick clarification. I think the last time we spoke you had expected kind of on the financing of Terronera, the debt financing was going to be $20 million to $25 million during the second quarter, kind of followed by $30 million of debt, then $20 million of equity and that could be cash from cash flow. And so the numbers you've just provided aren't too far off the mark, but I was just curious is if that last piece, you had mentioned debt. So do you think that last portion, that $20 million, that a portion of that could be debt or is your expectation still equity?
Bradford Cooke No. It's still a formula of $25 million debt, $25 million debt, and $20 million of cash, cash flow and/or equity. But instead of having to split the equity here, in terms of putting up the equity, we're pretty sure we can put first debt tranche in place this quarter and that funds all of this year's expenditures. So really, the need for cash, cash flow and equity comes at year-end to fund next year's completion of the CapEx program. We will take a decision on whether we use our cash or cash flow or equity later in the year. Where there's obviously, that second debt tranche to be put in place by the fourth quarter. So I'm not -- our thinking hasn't changed. We're still -- we'll hang our definitive thinking on the optimized prefis. But I think $70 million is pretty close to what we expect in terms of CapEx.
Mark Reichman Okay. And then lastly, with respect to exploration, kind of where are you seeing the most promise and could you kind of provide an update on how your kind of thinking about Parral?
Bradford Cooke Well, I think that, at the three operating mine sites, the low hanging fruit was obviously picked some time ago. So we're just adding incremental ounces at Guanaceví, extending existing stopes. We've had a very good track record of replacing reserves at Bolañitos and we fully expect to do that again this year. Cubo, we've got some brownfields targets we're testing this year. Moving on to Compas, we haven't said much this year about the exploration upside, but we did finish last year with a couple of discoveries on the Calicanto property and we've got numerous other targets, both at Calicanto and El Compas to drill this year. So across the board, you're going to see kind of incremental ounces added to the three operations. And then hopefully some significant growth of resources at El Compas and possibly even Terronera. We are drilling Parral, it's actually our biggest drill program again this year and it's the area that we think has perhaps the fastest resource growth potential.
Mark Reichman Okay. And then I guess, that was really the penultimate question. The last question is, on a prior conference call, you got a question regarding the M&A environment. And I was just wondering if you could update, Dan, your thoughts on the M&A environment and then, Endeavour's criteria for acquisitions, whether it be minimum resource and reserve requirements, annual production profile, geographic preference or even return requirement?
Dan Dickson Well, I think, in any environment it's fantastic and the reason is that asset prices are still seriously depressed. So just a quick reflection, we are able to use the bear market to acquire El Compas and Parral and to put them to our pipeline and we're still at it. We're still working hard on trying to flesh it --
Mark Reichman But the last call, you weren't as enthusiastic. You had mentioned that
Dan Dickson Well, let me say that in terms of opportunities, there's few and far between. So you just have to have a scorched earth policy in looking at everything. So that hasn't changed. It's really -- there's not a whole lot of good quality projects out there. But assets, the prices are depressed. So we're still optimistic that we'll be adding to our pipeline this year.
Mark Reichman But you say, okay, lack of good quality projects. I mean, one man's trash is another man's treasure. So could you kind of define kind of your criteria in terms of what would meet your criteria? Because I think on the last call, you did say you were kind of redoubling your internal efforts to try to build internally identify and source acquisition candidates.
Bradford Cooke Yes, well our philosophy is, if you can't buy it, you had to find it. So the best example of that is Terronera. And our other philosophy is that anything we buy, we had to have, as a basic principle, the ability to make it bigger and better. If you can't add value to it, there's not a whole lot of interest in doing M&A. So that's why Endeavour has this track record of getting into small mines of historic districts that were unloved and for sale, and it is our ability to recognize and unfold potential of each of the four mines that we have now that has been our secret sauce. There may be some more of that. But again, the low-hanging fruit was picked years ago, so you really have to look wide and -- far and wide to find more opportunities like that. And beyond that, I -- we love discoveries and you'll hear later this year, our Chilean portfolio is coming right along. We haven't talked about it. It's not on the website. But we're hoping that we'll have something to talk about in terms of homerun projects later this year.
Mark Reichman But I mean, are you seeing more opportunities in one country versus another? And in terms of when you're looking at potential acquisitions, does it not have to be in production already? I mean, you're looking at it from the standpoint, if you feel like you can invest the capital and beef up the resources and reserves. Just specifically, I'm just trying to get specifically, kind of what your criteria is, I mean, is there a minimum in terms of the size, in terms of being able to make a meaningful impact on your portfolio and production profile? Anything would be helpful in that regard.
Dan Dickson Sure. So just in terms of our M&A strategy, principle #1, we're focused primarily on silver, gold, or silver plus anything. Principle #2, we'll look anywhere in the Americas with the exception of certain no-go countries like Venezuela, Bolivia, et cetera. Principle #3, we are looking across the spectrum of projects, from production to preproduction to advanced exploration to early exploration. That's what I mean by scorched earth. We'll look at almost anything, because it's really the ability to form a unique opinion on what you can do with at an asset that is the difference maker. Everybody's looking at everything. So it's really your ability to recognize potential and how to unfold it. So to get more specific on, in terms of where we're going with our M&A strategy, we'd like to grow the business by double over the next five years. That is, double our production and reduce our costs to the lowest quartile over the next five years. And a combination of M&A plus organic growth will get us there. Our current pipeline gets us halfway there. So there's still a need to continue adding projects to the pipeline. If, for instance, we were to acquire a producer, where could we add value? Well, maybe they have some resources that are not in the mine plan and just investing the money to move the resources into the mine plan gives you a much more robust project. If it's a preproduction or development stage project, then we have the diversified management group, the skill sets to build and operate. So get plants permitted, built and commissioned. And of course, our exploration group has a great track record. So we love the exploration side as well. Thank you for your question, Mark. And actually, everybody. I think that's it.
Bradford Cooke Thank you, all, for attending today's call. A good start to the year. I think you'll see a somewhat similar second quarter and then the production growth that we've guided for the year will show up primarily in Q3 and Q4. So thanks for attending, and stay tuned.
Bill Murphy: Silver Will Go To $100 Faster Than ANYONE Can Imagine & The Moves Will Look Like Bitcoin
Don't miss that: "...The transfer of wealth in coming years will be of a magnitude that few can realise today..."
|
|
|
Post by Entendance on May 14, 2018 6:24:03 GMT -5
WORLD SILVER SURVEY 2018 PDF & Everything you need to know about silver! PDF
Endeavour Silver Corp, a mid-tier precious metals miner that operates three high-grade, underground, silver-gold mines in Mexico, is forecasting a 20% increase in its production during 2018, targeting 10.2m to 11.2m ounces of silver equivalent. Over the next three years, Endeavour’s goal is to boost production by 50% to 15m ounces of silver equivalent annually, supporting the company ambition to become a premier senior producer.
***Endeavour Silver forecasts 20% production growth in 2018
May 14, 2018 Endeavour Silver Drilling Intersects High Grade Silver-Gold-Lead-Zinc Mineralization in the San Patricio Vein System on the Parral Property; Provides Positive Results for Metallurgical Testing at Parral Properties VANCOUVER, British Columbia, May 14, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE:EXK) (TSX:EDR) announces that exploration drilling on the Parral property in Chihuahua State, Mexico has intersected high grade silver-gold-lead-zinc mineralization assaying up to 1,660 grams per tonne (gpt) silver, 0.72 gpt gold, 6.52% lead and 14.45% zinc over 2.3 metres (m) true width within the San Patricio vein system (see Parral map).
San Patricio Drill Results Twenty-one drill holes totalling 8,846 m of core have been drilled to test the San Patricio vein below small historic mine workings over a 1400 m strike length. Three mineralized areas were intersected, of which the largest and central zone now measures 600 m long by 250 m vertical (starting 150 m deep) by 1-3 m true thickness, still open to the south and at depth (see San Patricio longitudinal section).
Drill hole SPT-20, at the bottom south end of the central mineralized zone is the best hole drilled to date, intersecting three parallel veins, all of which carry strong polymetallic mineralization. Drilling highlights include the aforementioned 1,660 gpt silver, 0.72 gpt gold, 6.52% lead and 14.45% zinc over 2.3 m true width (50.0 oz per ton (opT) AgEq (silver and gold only, excluding base metals) over 7.5 feet (ft)).
Luis Castro, Vice President, Exploration for Endeavour Silver, commented, “We are very encouraged to discover these new zones of high grade polymetallic mineralization within the San Patricio vein system. Hole 20 suggests the vein system blossoms into three parallel veins of higher grades moving to the south and at depth where the central mineralized zone is wide open for expansion.
“Last year on the Parral property, we conducted verification drilling within the Remedios-Argentina zone, one of three historic resource areas in the Veta Colorada vein system, as well as step out drilling to discover new high grade resources within the Palmilla vein system. That allowed us to release a maiden resource for the Parral property in February this year (see Endeavour News Release date February 7, 2018).
“We continue to drill the San Patricio vein system where another 10 holes totalling 5,000 mare planned. Another 3,500 m will be drilled to test the Orión vein located 850 m west of San Patricio and the south extension of Veta Colorada in the San Joaquin area. At Veta Colorada, underground drilling in the Sierra Plata and El Verde areas will test the extent of mineralization to depth.”
Results for the first 11 material drill holes at San Patricio are summarized in the table here
Veta Colorada-Palmilla Metallurgical Results Endeavour also announces that metallurgical testing of drill core samples from the Veta Colorada (Sierra Plata, El Verde and Remedios-Argentina zones), Palmilla and Cometa veins on the Parral property indicates excellent metal recoveries by flotation and leaching. Cometa is the only vein with significant lead and zinc best suited for flotation, the other veins contain primarily silver and minor gold best suited to leaching. Silver recoveries achieved up to 91% recovery by whole rock leaching of Remedios-Argentina core, up to 91% recovery by flotation of Cometa core and up to 98% recovery by flotation and leaching of the float tails of El Verde core. (Tables here)
Only the Sierra Plata oxide zone core returned subpar silver recoveries and additional mineralogical studies are needed to understand why the recoveries are less than 50%. Testing for gold returned 93% recovery by flotation and leaching of float tails on Palmilla core and 86% by flotation of Cometa core. The optimal grind size for all ore types is 80% passing 76 um, and recoveries decline at finer grinds. In summary, metallurgical testing confirms that all mineralized zones except Sierra Plata return excellent metal recoveries by either leaching, or flotation, or flotation followed by leaching of the float tails. Godfrey Walton, M.Sc., P.Geo., Endeavour’s President and COO, is the Qualified Person who reviewed and approved this news release and supervised the drilling programs in Mexico. A Quality Control sampling program of reference standards, blanks and duplicates is used to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold is determined by fire assay with an atomic absorption (AA) finish and silver by aqua regia digestion and ICP finish, overlimits by fire assay and gravimetric finish.
|
|
|
Post by Entendance on Jun 9, 2018 1:24:08 GMT -5
June 11, 2018 Q: Why is the ratio of gold and silver prices (Au: Ag Ratio) useful? Find out what our CEO Bradford Cooke has to say about it here
Midas Touch – The Newest Analyses: ***Silver
|
|
|
Post by Entendance on Jun 14, 2018 4:34:57 GMT -5
EXK Endeavour Silver Corp 2018 Outlook: ***Higher Production, Lower Costs
12:08 PM ET 6/15/18 | Dow Jones Endeavour Silver Corp Price Target Raised to C$4.25/Share From C$3.50 by BMO Capital Markets
Endeavour Silver (NYSE:EXK) (TSX:EDR) entered into at-the-market offering of up to US$35.7 mln
June 13, 2018 Endeavour Silver Announces At-The-Market Offering of up to US$35.7 Million VANCOUVER, British Columbia, June 13, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE:EXK) (TSX:EDR) (the “Company” or “Endeavour”) is pleased to announce it has entered into a sales agreement dated June 13, 2018 (the “Sales Agreement”) with BMO Capital Markets (the lead agent), CIBC Capital Markets, H.C. Wainwright & Co., HSBC and TD Securities Inc. (together, the “Agents”) pursuant to which the Company may, at its discretion and from time-to-time during the term of the Sales Agreement, sell, through the Agents, such number of common shares of the Company (“Common Shares”) as would result in aggregate gross proceeds to the Company of up to US$35.7 million (the “Offering”). Sales of Common Shares will be made through “at‑the‑market distributions” as defined in the Canadian Securities Administrators’ National Instrument 44‑102‑Shelf Distributions, including sales made directly on the New York Stock Exchange (the “NYSE”), or any other recognized marketplace upon which the Common Shares are listed or quoted or where the Common Shares are traded in the United States. The Common Shares will be distributed at the market prices prevailing at the time of each sale and, as a result, prices may vary as between purchasers and during the period of distribution. No offers or sales of Common Shares will be made in Canada on the Toronto Stock Exchange (the “TSX”) or other trading markets in Canada.
The Offering will be made by way of a prospectus supplement dated June 13, 2018 to the Company’s existing US registration statement on Form F‑10 (the “Registration Statement”) and Canadian short form base shelf prospectus (the “Base Shelf Prospectus”), each dated April 10, 2018. The prospectus supplement relating to the Offering has been filed with the securities commissions in each of the provinces of Canada (other than Québec) and the United States Securities and Exchange Commission. The US prospectus supplement (together with a related Registration Statement) is available on the SEC's website (www.sec.gov) and the Canadian prospectus supplement (together with the related Base Shelf Prospectus) will be available on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com. Alternatively, BMO Capital Markets will provide copies of the US prospectus upon request by contacting BMO Capital Markets (c/o BMO Capital Markets Corp., Attention: Equity Syndicate Department, 3 Times Square, New York, NY 10036, or by telephone at (800) 414-3627, or by email: bmoprospectus@bmo.com).
Net proceeds of the Offering, if any, together with the Company’s current cash resources and free cash flow, will be used to advance its Terronera project and for general corporate purposes. The Company will pay the Agents compensation, or allow a discount, of up to 2.25% of the gross sales price per Common Share sold under the Sales Agreement. Sales under the Sales Agreement remain subject to necessary regulatory approvals, including the approval of the TSX and the NYSE. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Endeavour Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three high‑grade, underground, silver‑gold mines in Mexico. The Company is forecasting 20% production growth to 10.2‑11.2 million oz silver equivalent in 2018. Endeavour is currently developing its fourth high‑grade, underground, silver‑gold mine in Mexico and has a compelling pipeline of exploration and development projects 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, Director, Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: gmeleger@edrsilver.com Website: www.edrsilver.com
***Endeavour Aids Rescue Effort Following Mexican Earthquake
|
|
|
Post by Entendance on Aug 2, 2018 17:42:11 GMT -5
EXK Endeavour Silver Corp Q2 2018 Results - Earnings Conference Call Executives Galina Meleger - Director, Investor Relations Dan Dickson - Chief Financial Officer Godfrey Walton - President and Chief Operating Officer
Analysts Heiko Ihle - H.C. Wainwright & Co. Chris Thompson - PI Financial
Galina Meleger Good morning, everyone, and welcome to the Endeavour Silver Corp. 2018 second quarter financial results conference call. With me on the line today, we have the company’s Chief Financial Officer, Dan Dickson; and our Chief Operating Officer, Godfrey Walton. Our Chief Executive Officer, Bradford Cooke, will not be joining today’s earnings call as he is traveling. However, he is always reachable by e-mail if you have any further questions after the call today. Before we get started, I’m required to remind you that certain statements on this call will contain forward-looking information within the meaning of applicable securities laws. These may include statements regarding Endeavour’s anticipated performance in 2018 and future years, including revenue and cost figures, silver and gold production, grades and recoveries and the timing and expenditures required to develop new silver mines in mineralized zones. We do not intend to and do not assume any obligation to update such forward-looking information, other than as required by applicable law. On behalf of Endeavour Silver, I would like to thank you for joining our call today. And I’ll now turn it over to our CFO, Dan Dickson.
Dan Dickson Thanks very much, Galina, and welcome, everybody, to our Q2 financial results call. I’d like to start with a brief overview of the results released this morning, some updates on our ongoing projects, and then we’ll open it up to Q&A. We did release our production numbers in early July and believe we are in position to attain our production guidance for 2018. For the six months ended June 30, we produced a total of 4.7 million silver equivalent ounces and expect production improvement in the second-half of the year at El Compas achieves commercial production and Guanacevi’s performance improves. On a quarter-over-quarter basis, silver production was up 19% to 1.36 million ounces and coal production was up 5% to 13,674 ounces. Guanacevi has continued to lag management’s expectations, but we’re starting to see incremental improvement. The productivity optimization program that was launched in January is now complete and we’re optimistic that we’ll see benefits of that program in the second-half of 2018. We’ve developed over a kilometer towards that Milache ore body, which will help increase mine output and lower cost on a per unit basis. El Cubo and Bolanitos, both continue to performance as planned or better. Direct production cost per tonne in Q2 increased 3% compared to the same period last year. The higher production cost per tonne were driven mainly by Guanacevi’s performance, but also offset by the improvement at El Cubo. The improved metrics at El Cubo resulted a 9% decrease in consolidated cash cost per ounce falling to $7.61 per ounce. Similarly, all-in sustaining costs decreased 16% to $17.28 compared to Q2 2017. The drop is related to the lower cost on a per ounce basis and lower capital expenditures, offset by higher G&A costs out of the corporate office here in Vancouver. Revenue for the quarter increased 19% to $38.8 million from sales of 1.26 million ounces of silver and 13,800 ounces of gold, averaging $17.16 for silver ounce and $1,270 per gold ounce. On a year-to-date basis, our revenue now totaled $79.1. After quarterly cost of sales of $34.2 million, mine operating earnings amounted to $4.6 million from operations in Mexico. The 26% increase in our cost sales was primarily due to increased depreciation and depletion on Guanacevi operation. If we had to exclude depreciation and depletion of $7.9 million, our share-based payment and our inventory write-downs, mine operating cash flow before taxes was $14.9 million in the second quarter, which represents a 69% increase from the same period last year. For Q2, overall, we reported a net loss of $5.7 million, or $0.04 a share, which was primarily driven by higher depreciation and depletion and a foreign exchange loss due to the depreciation in the Mexican peso. Discussions of tariffs and the uncertainty of the Mexican federal elections drove the Mexican peso to fall against the U.S. dollar at the end of Q2, driving a $3 million foreign exchange loss on our outstanding tax reserved. Since quarter-end, the peso’s reversed that trend and recovered most of that devaluation in the second quarter. As of June 30, working capital totaled $58.9 million, compared to the $66.2 million we had at year-end. The $7.3 million decrease is a result of us investing $23 million into our property, plants and equipment, offset by our cash generated from operations, which included $6 million of expenditures into our exploration assets. At quarter-end, our cash position totaled $31.1 million, compared to $36.6 million at the end of Q1, which represents a $5 million decrease in Q2. The use of cash was for fueling future growth. Specifically, we completed the construction the El Compas mine, we continue to develop at Guanacevin to provide more working stopes, including developing the Milache ore body expected to come online this year. And we increased our exploration expenditure as we’ve seen very encouraging results across our portfolio of assets. As for El Compas, our newest mine, the mine of stockpiling ore, the mine is stockpiling ore with ore grades reconciling to expected projections. The commission of the plant was initiated in Q2 using low-grade ore. As normal course with start-ups, plant circuits are being modified, configured and fine tuned to resolve normal start-up issues. The plan to date has been commissioned with low-grade ore and we will shortly feed planned ore grades from our stockpiles, with the expectation of achieving commercial production in Q3. Total construction costs at El Compas have come in line with our guidance. Total cost was expected to be about $11.3 million, and we’re right there. Other highlights from our exploration and development groups included, we’ve completed trade-off studies at the Terronera Project, and we are currently finalizing our updated PFS with expectations of our publishing in August. We’ve maintained good dialogue with the governing bodies over last two permits, with expectations of obtaining those permits here in the near future. We continue to report positive drill results from our infill drill program at the Terronera and we continue to see strong results since our publishing of our last results. And we reported positive metallurgy and drill results from our Parral exploration property up north.
Heiko Ihle, H.C. Wainwright & Co
Let’s start on Page 22 of the MD&A and that really popped out at me. Your silver recovers at Guanacevi were excellent during the quarter. And, in fact, it was the best quarter – better than any quarter in 2017 and the best since Q4 2016. Is there any fundamental change? And I mean, quarter-over-quarter terms you have 290 basis points, which is, obviously, huge. I guess, this doesn’t make a trend. But is there something we can maybe read into for the rest of the year?
Dan Dickson Just so we’re understanding you clearly, Heiko, it’s Dan here. You’re coming in a little bit crackly. You’re asking about recoveries at Guanacevi quarter-on-quarter?
Heiko Ihle Correct. The recoveries were really good during the quarter.
Dan Dickson Yes.
Heiko Ihle I mean, you are up 290 basis points Q-over-Q. Does that make for a trend for the rest of the year?
Godfrey Walton Hi, Heiko. This is Godfrey. Thanks for the question. The recoveries have been a lot better at Guanacevi. And that is, because we’ve got better residence time in the leach tanks. So as our production – as we stopped filling that plant, we’ll come back down to the projected recoveries that we’ve done faster than beginning of the year. So it’s a function of lower production at the present time.
Heiko Ihle Got it. Okay, fair enough. So don’t read anything into, so to speak, okay.
Godfrey Walton Yes. Heiko Ihle And then I kept going, and I went to the IVA tax refunds part of the MD&A. And it said that you received $4.2 million since June 30. And is your expectation to receive the other $17.5 million and said, adding it all up, it’s $21.7 million minus the $4.2 million, so it’s still $17.5 million due. Is there anything to expect, or should we expect this would just be a continued battle with the government?
Dan Dickson Yes, and it’s very good point, Heiko. At the end of the quarter, we had $24.5 million sitting with the government related to our value-added taxes. And after the quarter, we received $4.2 million. We’ve actually had very positive dialogue to get that $4.2 million. We have expectations that some more will come in August. Unfortunately, the people that we’ve been dealing with have been on vacation last three weeks and we have another meeting with the Hacienda actually next week – late next week to talk about another $4 million to come in. And then we have – we do have expectations that we should see that define and start coming into be able to collect the full $21 million, I think, it’s very optimistic. If we can get that balance from $24 million down to $10 million, I think, we’d been doing very well. And then, of course, you always have a lag of three months basically as what we’d like to see three months kind of outstanding with the government. Cubo has got some IVA that’s outstanding for beyond two years. So we have seen positive movement from the government specifically collecting that $4 million and we do see some more. But like I say, it will – typically it will hold that around $10 million to $12 million is where is likely will be from a balance standpoint
Heiko Ihle Very helpful and greatly appreciate. Thank you, guys. I’ll get back in queue.
Chris Thompson, PI Financial Couple of quick questions here. We’ll start off with Guanacevi. Obviously, we’re anticipating steady improvements towards the back-half of this year. Just looking at the unit operating costs, what should we be modeling, I guess, once Milache and Santa Cruz are in production here?
Dan Dickson Yes. I think, it’s a very fair question, Chris. We’ve modeled coming into the year just over $100 per tonne. And we’ve seen these high cost per tonne over the last two years as our production on a per unit basis has been down. I mean, the plant, historically our capacity at Guanacevi being up 1,200 tonnes per day. We saw a cost per tonne as low as $78. I think the $78 has passed us now. And if we can get up and the key is getting up to capacity of 1,200 tonnes per day, we can see that come back into the 90s. What we have this quarter where we had with inventories, we had a write-down on that, which flowed through our cost per tonne. We had optimization programs that we’re paying that through – flow through cost per tonnes. We had year-end bonuses that got kind of bumped up and union wages and increases kind of flow through Q2 when all that was finalized. So there’s a lot of extraordinary cost that are flowing through Q2 to get to that $139 of cost per tonne. I think, that is very unrealistic. We saw the same thing happen at Cubo four or five years ago, where we had these massive spikes in our cost per tonne that just weren’t reflective of what was going to be happening going forward. And I think we’ve seen that now at Guanacevi basically for the last four to five quarters. We expect that to end and, like I say, the key is getting the tonnes up to the 1,200 tonnes per day, which will drive that. So in the second quarter, we’re around at 800 tonnes per day going through. As you can see on an absolute cost basis, we’re running the same amount of labor at our operations effectively same amount of contractors. The bottleneck has been the amount of working stopes that we’re seeing in Santa Cruz and getting to Milache, which will be able to kind of de-thaw our production abilities. And in July, we started with long haulings. We expect production to start coming up here in Q3, that should drive that down.
Chris Thompson Great, that’s great. And so thanks for that Dan. Just moving on to the other assets quickly, Bolanitos, just trying to get a sense of the great profile we can expect to what’s the back-half of this year maybe after that as far as gold grades. Are we – any chance of getting over the two grand mark here?
Godfrey Walton Hi, Chris, this is Godfrey. We are affirming there’s a lot more zoning in the – particularly at the Plateros area, where we get high gold off of the bottom of the or at the bottom of a zone and higher silver at the top. And it’s just a matter of getting that development, so that we can blend it properly. But I – to be honest, I don’t think we’re going to hit over two grams gold for the balance of this year.
Chris Thompson All right. Okay, that’s good. Thanks, Godfrey. Just quickly similar sort of question, I guess, for EL Cubo, but now it’s over the silver grades. We see nice quarter-on-quarter increase in silver grades. Grades, I guess, that you guys reported in the Q2, are those sustainable? Any chance of an improvement beyond that?
Godfrey Walton I think, they’re sustainable, Chris. But I don’t see them getting higher than what we’ve had for Q2.
Chris Thompson All right. Perfect. And then finally, the ATM. Can you comment on the progress on there to date?
Dan Dickson Yes. We launched that ATM June 13. We worked through with BMO, our agents on that matter. We sold 2.3 million ounce or $2.3 million worth of stock in Q2 to kind of just see how the process works. We had a couple hot days right after we launched. Effectively in Q3, we haven’t been in the market, because we’ve been in blackout period. With today’s share performance, I don’t foresee us being in the market any time soon. It’s – some optionality there for us. If we some movement up in our share price, we’ll have some more exploration results like we’re getting. We might tap into that to be able to increase our expenditures on exploration next year. Obviously, partly, that’s going to be advancing Terronera, which is what we disclosed on that, touched on that. I think, the key stuff for us is waiting for these last few permits, which like I say, it’s going to be in the near-term here. Our infill drill program for the year is fully funded and obviously, we’re having very good progress with that. But I don’t see any additional costs or funds needed for 2018 with regards to Terronera. It will just be getting that as feasibility study finished getting the permits done and going to the Board with a construction decision.
Chris Thompson Great. Thanks again, Dan. Thanks, guys.
Dan Dickson Well, thank you and thank everybody for joining our – the Endeavour’s Q2 financial results call. Again, if you have any questions, we’re always here happy to help. Mr. Cooke is traveling today, but if you have e-mail that you want to pass or questions you want to pass on to Galina, we’ll be happy to get back to you as quickly as possible.
|
|
|
Post by Entendance on Aug 11, 2018 2:43:33 GMT -5
EXK Endeavour Silver Corp: the CEO Corner "...Sustainability for Endeavour Silver is not an addition to our business strategy, it is core to the way we do business, and that is what makes us different ..."
*************** "...CONCLUSIONS: •Fort Knox Bullion Depository may contain 147 million ounces of unencumbered gold bullion. Many doubt that claim. •China and her citizens may have stockpiled over 600 million ounces of gold bullion. Many believe the calculation. •Compared to total debt of the U.S. and annual expenditures for interest, the value of Fort Knox gold is minimal at current prices. •U.S. debt is ever-increasing. Interest rates are rising, so total interest expenditures will rise. Since the U.S. must borrow more dollars to roll-over debt, expect further currency devaluation. •Gold prices will increase along with total debt and interest expenditures. Consumer prices will rise. Take a hint from the Chinese and Russians. Gold should be a substantial portion of net worth to protect from inevitable dollar devaluations that started in 1913 and will continue for the foreseeable future."
"...the best juniors will be great investments, soaring in long, beautiful arcs on the backs of gold and silver or in quick spikes when an industry giant buys them out for a nice premium. To sum up, gold is looking great, silver is better than gold, and the junior miners are potentially life-changing. Assuming anyone is still paying attention." ***Prepare For A Huge Six Months
...the third run to $50 silver and beyond should be at hand. Count on the Silver Price Going Way Higher in the Long Term
|
|
|
Post by Entendance on Aug 29, 2018 5:57:08 GMT -5
Endeavour Silver Reports Company-Wide Initiatives to Reduce Capital, Operating and Other Costs, Temporary Halt of El Compas Plant Operations to Re-Commission the Tailings Facility VANCOUVER, British Columbia, Aug. 29, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK, TSX: EDR) reports a Company-wide initiative to reduce capital, operating and other costs in Canada and Mexico. As a result of the drop in precious metals prices this quarter, management felt it prudent to seek cost savings at head office and temporarily adjust its exploration, development and mining activities to reduce operating, capital and other costs until such time as gold and silver prices rebound.
Bradford Cooke, Endeavour CEO, commented, “Enhanced cost discipline is the prudent course of action for mining companies during times of lower metal prices, especially when investing to develop new mines. This austerity program is our proactive response to the current low metal prices. Once metal prices recover, Endeavour Silver will be in a position to deliver more robust returns thanks to improved operational performance and a strong growth profile.” The reduced expenditures and revised exploration, development and mining plans are expected to boost production and reduce operating and capital costs in the Fourth Quarter, 2018 through several measures. Head office has initiated reductions across all departments to reduce general and administrative costs including investor relations marketing. The exploration group has already achieved most of its goals for the year and will cease all drilling activities at month end. Exploration personnel are now focused on lower cost mapping and sampling programs in Mexico and Chile, preparing new resource estimates and planning for 2019 when drill programs are expected to resume. The development group working on Terronera Project has delayed hiring for certain positions and will not commence already permitted earthworks on the roads and plant site until receipt of final government permits for the mine dumps and plant tailings. However, community planning, environmental work and certain engineering studies will continue to move the project forward. The mine operations group conducted a review of possible short-term improvements to increase revenue and decrease costs at each mine to year-end, as follows: Guanacevi The Guancevi mine plan has been adjusted in several ways to increase production and reduce capital and operating costs, as follows: •First, the main Santa Cruz mine is scheduled to switch certain stopes from cut-and-fill mining to long-hole mining, which will increase the daily ore tonnage and reduce operating costs •Second, the deep Porvenir Norte and Santa Cruz areas where the orebodies are thinner and lower grade are moving from footwall development to in-vein development to reduce capital costs •Third, the upper Santa Cruz area will be developed ahead of plan to open up a new source of high grade ore to take pressure off of the current producing areas •Fourth, the new Milache orebody will also come online at the end of September to provide another new, high grade source of ore •Fifth, development of the high grade SCS area will commence in the Fourth Quarter, 2018 and start production in 2019 •Sixth, some mine development contractors will be replaced by re-assigned employees to improve workforce productivity and reduce capital costs •The goal of these initiatives is to increase the daily production from 850 tonnes per day (tpd) to the 1200 tpd capacity of the Guanacevi plant at lower capital and operating costs
Bolanitos The revised Bolanitos mine plan includes the following: •Moved footwall development to in-vein development in several areas of the mine •Reduced mine development contractors as a result •Reduced non-critical maintenance items •Increasing daily production from 1200 tpd to 1400 tpd
El Cubo El Cubo is well ahead of its planned production for 2018 but has made the following mine plan adjustments: •Moved footwall development to in-vein development in several areas of the mine •Reduced mine development contractors as a result •Reduced non-critical maintenance items •Some recently discovered high grade vein splays in the Villalpando-Asuncion area will be developed ahead of plan to open up a new source of high grade ore
El Compas At El Compas, the mine is operating at its rated capacity and the ore stockpile is growing. The plant commissioning has had to deal with an excess of clay in the ore and higher than normal precipitation during the past two months. Based on an independent engineering review, the plant has temporarily halted operations to allow the tailings area to be dewatered and the clay removed for improved drainage. A second tailings storage area is being excavated within the permitted tailings area for the clayey tailings until the primary tailings facility is ready for re-commissioning in September. Production at El Compas plant has been suspended until that time. Therefore, El Compas will not achieve its production guidance for the year. The Fourth Quarter 2018 adjusted mine plans for the other three mines should help compensate for the short-fall at El Compas.
Terronera Endeavour management and consultants have been working on optimizing and updating the pre-feasibility study (“PFS”) for the Terronera mine project in Jalisco, Mexico. Management is of the opinion that Terronera has the potential to become Endeavour’s largest and lowest cost mine. The PFS has now been finalized and a summary news release will be released before market open tomorrow, August 30, 2018.
Conference Call and Webinar Presentation A special webcast presentation and conference call to review the revised operating plans and results of the Terronera PFS will be held tomorrow, Thursday, August 30, 2018 at 10:00am PT (1:00pm ET). Participates may listen to the conference call by dialing the numbers below. No pass-code is necessary.
The call will be webcast live at www.edrsilver.com/terronera-webcast
and the presentation will be available on the Company’s website on the homepage and under the Investor Relations, Events section. The webcast will be archived and made available for replay. Toll-free in Canada and the US: 1-800-319-4610 Local Vancouver: 604-638-5340 Outside of Canada and the US: + 604-638-5340 A replay of the audio conference call will be available by dialing 1-800-319-6413 in Canada and the US (toll-free) or +604-638-9010 outside of Canada and the US. The required pass-code is 2574#. The audio replay and a written transcript will be available on the Company's website at www.edrsilver.com under the Investor Relations, Events section.
Qualified Persons Godfrey Walton, M.Sc., P.Geo., Endeavour’s President and COO, is the Qualified Person who reviewed and approved this news release and supervised the engineering work supporting the 2018 PFS.
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three high-grade, underground, silver-gold mines in Mexico. The Company is forecasting production of 10.2-11.2 million oz silver equivalent in 2018. Endeavour is commissioning its fourth mine at El Compas, advancing a possible fifth mine at the Terronera mine project and exploring its portfolio of exploration and development projects in Mexico and Chile 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 - For more information, please contact: Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: gmeleger@edrsilver.com Website: www.edrsilver.com
|
|
|
Post by Entendance on Sept 19, 2018 5:57:28 GMT -5
Endeavour Silver Reports Multiple High Grade Infill Drill Intercepts and Files Prefeasibility Study Technical Report for the Terronera Mine Project, Jalisco, Mexico VANCOUVER, British Columbia, Sept. 19, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK, TSX: EDR) reports that infill drilling within the Terronera vein system on the Terronera property in Jalisco State, Mexico (view Terronera map here) has intersected high grade silver-gold mineralization in an additional 17 drill holes. Drilling highlights include three high grade vein splays, totaling 12.3 metres (m) accumulated thickness, intersected in hole TR11-8, the best of which returned 1,297 grams per tonne (gpt) silver and 0.9 gpt gold over a 6.1 m true width (39.9 oz per short ton (opT) silver equivalent (AgEq) over 20.0 feet (ft) (see Terronera long section here). All 17 drill holes were targeted to fill gaps in the drill pattern, with the goal to upgrade one million tonnes of inferred resources to measured and indicated resources so they can be included in the mine plan for Terronera, and to expand the inferred resources at depth. Mineralization in the Terronera vein has been intersected over 1400 m long by 500 m deep, and it remains open at depth. Drilling highlights are summarized in the following table of drill results here Luis Castro, Vice President, Exploration for Endeavour Silver, commented, “These infill drill results helped us meet our goal this year to increase our measured and indicated resources. The high silver and gold grades, excellent continuity of mineralization and significant exploration upside to expand the resources reinforce our view that Terronera has the potential to become the next key asset for the Company.” The 2018 infill drill program is now complete with 32 holes totaling 18,774 m, more than the 10,000 m originally planned but less than the revised plan of 20,000 m, as the program goals were attained. A revised resource and reserve estimate will now be prepared for release in Q1, 2019 and the mine plan will be modified to accommodate the newly defined resources. These 2018 drill results for Terronera, were not included in the 2018 updated Terronera Preliminary Feasibility Study, additionally see Endeavour Silver News Release dated June 27, 2018.
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three high-grade, underground, silver-gold mines in Mexico. The Company is forecasting 10.2-11.2 million oz silver equivalent production in 2018. Endeavour is currently commissioning its fourth mine at El Compas, advancing a possible fifth mine at the Terronera mine project and exploring its portfolio of exploration and development projects in Mexico and Chile 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 - For more information, please contact: Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: gmeleger@edrsilver.com Website: www.edrsilver.com
|
|
|
Post by Entendance on Oct 31, 2018 6:08:33 GMT -5
October 31, 2018 Endeavour Silver Reports Third Quarter, 2018 Financial Results; Conference Call at 10am PT (1pm ET) Today Highlights of Third Quarter 2018 (Compared to Third Quarter 2017)
Financial •Net loss of $5.5 million (loss of $0.04 per share) compared $1.0 million earnings in 2017 •EBITDA(1) decreased 8% to $5.6 million •Cash flow from operations before working capital changes increased 21% to $6.9 million •Mine operating cash flow before taxes(1) decreased 20% to $9.6 million •Revenue decreased 6% to $37.6 million •Realized silver price decreased 16% to $14.42 per ounce (oz) sold •Realized gold price decreased 8% to $1,189 per oz sold •Cash costs(1) rose 9% to $8.86 per oz silver payable (net of gold credits) •All-in sustaining costs(1) fell 8% to $16.14 per oz silver payable (net of gold credits) •Working capital 13% lower at $57.4 million compared to $66.2 million at year end •Raised $5.6 million through ATM financing
VANCOUVER, British Columbia, Oct. 31, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) released today its financial results for the Third Quarter ended September 30, 2018. The Company operates three silver-gold mines in Mexico, the Guanaceví mine in Durango state, and the Bolañitos and El Cubo mines in Guanajuato state. Endeavour is currently commissioning its fourth mine, El Compas, in Zacatecas state and advancing the Terronera mine project in Jalisco state to a development decision.
The Company reports a net loss of $5.5 million in the Third Quarter, 2018 compared to $1.0 million earnings in the Third Quarter, 2017, primarily due to higher depreciation and depletion charges. Revenue decreased 6% to $37.6 million and mine operating cash flow before taxes(1) decreased 20% to $9.6 million due to lower realized metal prices and higher costs, offset by higher silver production.
Cash flow from operations before working capital changes increased 21% to $6.9 million and EBITDA fell 8% to $5.6 million compared to the same period last year. Cash costs rose 9% to $8.86 per oz silver payable (net of gold credits) and all-in sustaining costs fell 8% to $16.14 per oz silver payable (net of gold credits) as capital expenditures fell compared to Third Quarter, 2017. For the nine months ended September 30, 2018, cash costs and all-in sustaining costs decreased 5% and 15% respectively to $7.68 and $15.87 per oz silver payable (net of gold credits) compared to the nine months ended September 30, 2017.
Highlights of Third Quarter 2018 (Compared to Third Quarter 2017)
Financial •Net loss of $5.5 million (loss of $0.04 per share) compared $1.0 million earnings in 2017 •EBITDA(1) decreased 8% to $5.6 million •Cash flow from operations before working capital changes increased 21% to $6.9 million •Mine operating cash flow before taxes(1) decreased 20% to $9.6 million •Revenue decreased 6% to $37.6 million •Realized silver price decreased 16% to $14.42 per ounce (oz) sold •Realized gold price decreased 8% to $1,189 per oz sold •Cash costs(1) rose 9% to $8.86 per oz silver payable (net of gold credits) •All-in sustaining costs(1) fell 8% to $16.14 per oz silver payable (net of gold credits) •Working capital 13% lower at $57.4 million compared to $66.2 million at year end •Raised $5.6 million through ATM financing
Operations 1.Concentrate inventory at quarter-end included 43,920 oz silver and 603 oz gold 2.Bullion inventory at quarter-end included 58,855 oz silver and 130 oz gold 3.Gold oz sold down 5% to 13,025 oz 4.Silver oz sold increased 20% to 1,532,097 oz 5.Silver equivalent production was 2.4 million oz (at a 75:1 silver: gold ratio) 6.Gold production decreased 5% to 12,968 oz 7.Silver production increased 13% to 1,428,828 oz 8.Completed updated Terronera Pre-Feasibility Study, modelling significantly improved project economics and lowest decile operating costs in the silver mining sector 9.Demonstrated increased mineral reserves and resources across all categories at Terronera 10.Reported positive results from an in-fill drill program at Terronera 11.Reported positive results from an exploration drill program at El Compas 12.Initiated Company-wide cost cutting initiatives to reduce capital expenditures and operating costs during current period of low metal prices 13.Recommenced commissioning of the El Compas Mine after a temporary shutdown to improve the tailings management facility
(1) EBITDA, mine operating cash flow, cash costs and all-in sustaining costs are non-IFRS measures. Please refer to the definitions in the Company’s Management Discussion & Analysis.
Bradford Cooke, Endeavour CEO, commented, “Our financial performance in Q3, 2018 was impacted by lower metal prices and higher depreciation and depletion charges, primarily at Guanacevi where production lagged behind plan. However, El Cubo production continued its strong performance during the quarter and Bolanitos gold grades are now improving after a slight drop in Q3, 2018.
“We completed a large part of our 2018 exploration and development spending during the third quarter and in late August launched a company-wide initiative to reduce exploration, capital, operating and G&A costs. Looking ahead to Q4, 2018, management anticipates improved operating and financial performance due to higher throughput and grades at Guanaceví, stronger gold grades at Bolanitos and initial commercial production from El Compas. We should also begin to realize the full benefit of the short-term cost reduction program in Q4, 2018.”
Financial Results Revenue in the Third Quarter, 2018 totaled $37.6 million (2017 - $39.8 million) on sales of 1,532,097 silver ounces and 13,025 gold ounces at realized prices of $14.42 and $1,189 per ounce respectively, compared to sales of 1,275,922 silver ounces and 13,759 gold ounces at realized prices of $17.20 and $1,299 per ounce respectively in Q3, 2017.
After cost of sales of $42.4 million (2017 - $32.5 million), mine operating earnings amounted to a loss of $4.8 million (2017 – earnings of $7.3 million) from mining and milling operations in Mexico. The 30% increase in cost of sales was primarily due to increased depreciation and depletion. Excluding depreciation and depletion of $13.1 million (2017 - $4.4 million), and an inventory write down of $1.3 million (2017 - $0.2 million), mine operating cash flow before taxes was $9.6 million (2017 – $11.9 million) in Q3, 2018.
Net loss amounts to $5.5 million (2017 – earnings of $1.0 million) after exploration, general and administrative expenses, foreign exchange and tax recovery.
Direct production costs per tonne in Q3, 2018 increased 2% compared with 2017. The higher production costs per tonne were driven mainly by lower Guanaceví mine output due to mine development falling behind schedule in 2017, the costs related to implement a productivity optimization program and higher labour and contractor costs.
Higher direct costs at Guanaceví and lower gold grades processed at Bolanitos resulted in higher consolidated cash costs, net of gold by-product credits (a non-IFRS measure), rising to $8.86 per ounce. Lower costs per ounce at El Cubo due to higher grades partially offset the higher cost per ounce at Guanacevi and Bolanitos. All-in sustaining costs (also a non-IFRS measure) compared to 2017 decreased to $16.14 per oz in Q3, 2018. This decrease in all‑in sustaining costs is attributable to the lower operating costs and the lower capital expenditures in 2018 compared to 2017, partially offset by higher general and administration charges at the corporate level.
For the nine months ended September 30, 2018, direct production costs were $84.00 per tonne compared to the guided range of $80-$85 per tonne. The lower than planned throughput at Guanacevi was partially offset by the cost performance of the El Cubo operation.
Consolidated cash costs, net of gold by-product credits, were guided to be $6.00-$7.00 per oz of silver in 2018 and consolidated cash costs expressed on a co-product basis were guided to be $10.00-$11.00 per oz silver and $750-$800 per oz gold. For the nine months ended September 30, 2018, cash costs, net of gold by-product credits, were $7.68 per oz and cash costs expressed on a co-product basis were $11.00 per oz silver and $877 per gold oz. The lower than planned production resulted in higher than guided costs per ounce. In Q4, 2018, cash costs are expected to be lower than the cash costs for the nine months ended September 30, 2018.
All-in sustaining costs (AISC), net of gold by-product credits, in accordance with the World Gold Council standard, were guided to be $15.00-$16.00 per oz of silver produced in 2018 reflecting new investments in sustaining exploration and development programs. For the nine months ended September 30, 2018 AISC, net of gold by-product credits, is $15.87 as the Company spent less on sustaining capital expenditures than guided. The lower capital expenditures were offset by higher operating costs on a per ounce basis. In Q4, 2018, AISC are expected to be lower than the AISC for the nine months ended September 30, 2018.
Management assumed a $17 per oz silver price, $1,275 per oz gold price, and 19:1 Mexican peso per US dollar exchange rate for its 2018 cost guidance.
For the nine months ended September 30, 2018, silver production totalled 4,135,563 oz and gold production totalled 39,850 oz, resulting in silver equivalent production of 7.1 million oz. Based on the Company’s performance, year to date, management estimates a 5% shortfall to the 2018 consolidated production guidance, due to the delayed commercial production at El Compas, lower gold grades at Bolañitos and lower mine output at Guanaceví. This anticipated production shortfall and lower gold credit will likely also impact the Company’s ability to meet its 2018 cost guidance.
The Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis can be viewed on the Company’s website at www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov. All amounts are reported in US$.
Conference Call
A conference call to discuss the results will be held today, Wednesday, October 31, 2018 at 10:00am PT (1:00pm ET). To participate in the conference call, please dial the numbers below. No pass-code is necessary.
Toll-free in Canada and the US: 1-800-319-4610 Local Vancouver: 604-638-5340 Outside of Canada and the US: + 604-638-5340
A replay of the conference call will be available by dialing 1-800-319-6413 in Canada and the US (toll-free) or +604-638-9010 outside of Canada and the US. The required pass-code is 2625#. The audio replay and a written transcript will be available on the Company's website at www.edrsilver.com under the Investor Relations, Events section.
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently commissioning its fourth mine at El Compas, advancing a possible fifth mine at the Terronera mine project and exploring its portfolio of exploration and development projects in Mexico and Chile 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 - For more information, please contact: Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: gmeleger@edrsilver.com Website: www.edrsilver.com
|
|
|
Post by Entendance on Nov 1, 2018 3:26:00 GMT -5
Executives Galina Meleger - Director, IR Bradford Cooke - CEO Godfrey Walton - President and COO Dan Dickson - CFO
Analysts Heiko Ihle - H.C. Wainwright Chris Thompson - PI Financial
Galina Meleger Good morning, everyone, and welcome to the Endeavour Silver Corp. 2018 third quarter financial results conference call. With me on the line today we have the Company’s CEO, Bradford Cooke, as well as our President and Chief Operating Officer, Godfrey Walton; and our Chief Financial Officer, Dan Dickson. Before we get started, I’m required to remind you that certain statements on this call will contain forward-looking information within the meaning of applicable securities laws. These may include statements regarding Endeavour’s anticipated performance in 2018 and future years, including revenue and cost forecasts, silver and gold production, grades and recoveries, and the timing and expenditures required to develop new silver mines in mineralized zones. We do not intend to and do not assume any obligation to update such forward-looking information, other than as required by applicable law. With that and on behalf of Endeavour Silver, I would like to thank you for joining our call today. And I’ll now turn it over to our CEO, Bradford Cooke.
Bradford Cooke Thanks very much, Galina, and welcome, everybody to this conference call on Endeavour’s third quarter financial results. As I always do, I’d like to start with some highlights and then we’ll open it up for Q&A. So, the headline results released today include a net loss of $5.5 million or about $0.04 a share. But that was off the back of cash flow of $6.9 million, up 21% compared to the same period last year. Revenues for the quarter were down 6%, compared to 2017 Q3 at about $37.6 million. Our cash costs were up slightly, 9% to $8.86 per ounce net of gold credits. But all-in sustaining costs were actually down 8% to $16.14, again net of gold credits. Working cap was a bit lower due to our spending during the third quarter at about $57.4 million. No debt on the book. So, we still have a healthy balance sheet. Production: Silver production increased 13% to 1.4 million ounces; gold production was down a bit, 5% to 13,000 ounces; and silver equivalent production was both flat quarter-on-quarter at 2.4 million ounces, using 75:1 ratio. In general, our financial performance in Q3 was impacted by the lower metal prices. And our earnings performance was particularly impacted by the higher depreciation, depletion charges, primarily at Guanaceví where production continues to lag behind plan. We’ve been working very hard at Guanaceví this year. And we’re still very optimistic that Q4 will show significant improvement at Guanaceví. We were also impacted during the third quarter by a brief shutdown at the new El Compas mine, but it’s back up and running here mid-October, and we are still expecting to prepare commercial production at El Compas this quarter. El Cubo continued to have strong outperformance, carrying on from the first two quarters of the year; Q3 was no different. And Bolañitos, actually suffered from a drop in gold grades in Q3, but we are seeing them coming back up already in October. We did complete a large part of our exploration and development spending during the third quarter. That’s the main reason why our working capital took a dip. And looking ahead to the fourth quarter, we do expect to have both, improved operating and financial performance, largely due to our expectations of higher throughput in grades at Guanaceví, stronger gold grades at Bolañitos, initial commercial production at El Compas. So, we should also I think this quarter realize the full benefit of our short-term cost reduction program that we initiated late in the third quarter. So, lots of things going on, on the operation front. I’ll just briefly touch on our development projects. At Terronera, we released an updated PFS or prefeasibility study, showing a significant improvement in both operating and financial metrics. I think the real headline there was the all-in sustaining costs estimated for Terronera that came in at a very low 1.36 per ounce of silver net of the gold credit. So, I think that is some of my initial comments.
Heiko Ihle, H.C. Wainwright You just mentioned the full impact of the cost reduction program that we’re likely going to see is it in Q4. Can you just sort of quantify it? I went through the release and some articles about it. I mean, it sounds like its ahead of its own that was announced back in August. Do you want to just sort of quantify what you think we’ll see in Q4 and then maybe also Q1 of or even full year 19?
Bradford Cooke Sure. I’ll just give you a brief overview and then I’ll let Godfrey give you some details. The idea behind the cost cutting was that we saw obviously the initial drop in gold and silver prices in the summertime. And having been through this before and knowing that we’re in the middle of a significant spend, not only a Terronera but also Guanaceví where the new Milache and Santa Cruz Sur lines are in development. So, knowing that we were in the middle of a spending phase, a capital spending phase, we felt it was very important not only to focus on how to reduce exploration capital and operating costs but to use the head office as an example. So, maybe over to Godfrey for some details.
Godfrey Walton Sure. So, the operations, the big reductions really have come in development. And so, development is now paying for itself by being focused on the actual things themselves as opposed to out in the waste. But we’ve also done a number of reductions in acquiring a variety of new things for the operations. Now, who would go out and buy extra supplies, extra maintenance things, we’ve cut back that off. And then, we’ve stopped hiring extra people. And so, those are the really the main things that we have reduced.
Bradford Cooke We had some layoffs of contractors at the various operations. Dan, do you want to contribute to that?
Dan Dickson Yes. I think from head office standpoint, it’s across the space. So, where we started from is up here in Vancouver, Heiko, where we cut back on our Investor Relations, reduced road shows, conferences, for a lack of better term, grind our advisors in tax, legal, looked to do things in house, looked to delay certain things and ultimately also in exploration, we finished our Terronera drill program for the year, and we reached about $11 million in exploration. Our total budget approved by the Board was up to $14 million, and we basically got two drill rigs going, internal drill rigs that we own going in there and external drilling happening at this point. As far as specific quantities for Q4, the main items end up being from waste development to ore development which should save about $2 million at Guanaceví and $1 million some at Bolañitos. So, all in all, you’ll see it in our all-in sustaining costs, a reduction more so than what we’ve seen in our cash cost in Q4.
Heiko Ihle I think this has been one of the most -- in over decade of doing this, this has been one of the most comprehensive answers that I’ve ever gotten on conference calls as an answer. And for that, I commend you.
Dan Dickson As far as to 2019 question, Heiko, which we actually didn’t answer. We don’t put out guidance in 2019 cost and production until January. The reason being we are going through that process as we speak of looking at mine plans, various levels of mine plans. And obviously at today’s prices, it’s something that we’re trying to figure out what’s the best fit for us going forward. And we just don’t like to comment on that till we’re final.
Chris Thompson, PI Financial A couple of specific questions I guess on the operations here, going to El Cubo, first of all. I know you’re cutting back all-in sustaining CapEx there on Villalpando. Are you compromising the mine life in anyway, doing this? Maybe you can comment on that.
Godfrey Walton Hi, Chris. This is Godfrey. Thanks for the question. Now, we are not comprising the mine life [technical difficulty] development. We’re looking it very carefully and we don’t see any technical difficulty. In fact, I think the extension to that question, Chris, is that, our main access ramp Villalpando-Asuncion has actually reached the bottom of the [technical difficulty]. So, all of the future development is basically being development moving out from the bottom.
Chris Thompson Okay. All right. Thanks for that, guys. Just Bolañitos quickly. I know previously I think you mentioned you’ll be winding up the throughput from 1,200 to 1,400 ton a day. Maybe two questions, I guess on that, is timeline and additional CapEx required to do that?
Bradford Cooke No, it’s not. It’s a matter of just accessing more faces and more levels, and that’s all as part of the plan. So, we always keep [technical difficulty] and where we can access. And so, it’s really just a matter of mining a little bit more.
Godfrey Walton Because it’s adding the number of faces, it is a ramp-up period throughout the quarter.
Chris Thompson Okay. So, we can see -- expect I guess 1,400 exiting the year. Is that right?
Bradford Cooke That’s correct. Yes.
Chris Thompson And then, just finally, or rather Guanaceví, obviously Milache and Santa Cruz, you’re going to be turning those on. Have you got any sense of blend of grade? I mean, what should we be putting in our model from a grade perspective when you -- when those are fully led into your production?
Bradford Cooke Really, Santa Cruz Sur is, so it is not going to show up in production until next year. We’ll hit the vein late this year, but really wanted that production. When we -- Milache will, but it will be slowly increasing the grade, because we are not [technical difficulty] levels, but you’re basically initially just drifting on ore. You’re not developing stopes until probably December. So that’s when you’ll start seeing more grade change.
Godfrey Walton And Chris, if you look through our reserves and resources which I know you do, the Milache resource and the Santa Cruz resource are up in the 340 range, 340 silver equivalent range, and that would be coming through in 2019, which is in our internal mine plans, being higher grades in 2019, 2020, 2021 than what we’re seeing currently. Partly for 2018, our grades are lower than what the plan was for the year, because Milache and Santa Cruz haven’t come on as quickly as originally guided or hoped.
Chris Thompson I know the asset here has a history or you’ve taken, I guess throughput up beyond 1,000 ton a day. I mean, is that realistic for next -- I know you don’t want to give guidance on that. But I mean, what’s your sense about ton per day here?
Godfrey Walton Chris, we’re looking at our mine plans for next year and we’re just looking at what the best throughput will be. But, we are thinking about the 1,200 range. It’s still early days and not actually putting an exact number to that.
Chris Thompson That’s good. That’s what my model has. And then finally, I guess, Terronera, obviously, we’re still waiting for a couple of permits there. A bit of color on that, guys?
Godfrey Walton Terronera, so, we’re waiting patiently for the final permit from the government. Specifically, we got a letter from CONAGUA, the water authority, basically instructing us to go back to SEMARNAT, the environmental authority. And so, what we were waiting for the water authority, we now have that letter. We’ve gone back to SEMARNAT in October, that’s normally a 90-day exercise. We’re trying to move it faster. But as you know, we’re in a transition period for a new government in Mexico. So, while we would love to have all of our permits by December, we certainly can’t guarantee that because of the change in government.
Bradford Cooke I think I’d just like to conclude by saying that in addition to our upbeat expectations for both operations and financial performance in Q4, taking a broader look at the markets, I think that this is a challenging time of year for all equities, and particularly for gold and silvers. But we do, based on our research, think that there will be a turning point with significantly better bids for the precious metals before quarter ends. So, our cost cutting program was not intended to be permanent or long-term, especially on the capital side. We just felt that a short-term response was needed for this short-term dip in the precious metal prices. So, we are a upbeat on the precious metal prices for next year. That’s our comments for our Q3 conference call. And we look forward to talking to you again in the New Year. Thank you.
|
|
|
Post by Entendance on Jan 6, 2019 4:57:29 GMT -5
|
|
|
Post by Entendance on Jan 10, 2019 6:59:09 GMT -5
January 18, 2019 Why I believe silver will outperform gold in the future
Endeavour Silver Produces 5.5 Million oz Silver and 52,967 oz Gold for 9.5 Million oz Silver Equivalents in 2018
VANCOUVER, British Columbia, Jan. 10, 2019 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) reports 2018 consolidated production of 5.5 million ounces (oz) silver and 52,967 oz gold, for silver equivalent production of 9.5 million oz at a 75:1 silver: gold ratio. Silver production in the Fourth Quarter, 2018 was 1,386,505 oz and gold production was 13,117 oz, for silver equivalent production of 2.4 million oz. Endeavour owns and operates three silver mines in Mexico, the Guanaceví mine in Durango state and the Bolañitos and El Cubo mines in Guanajuato state. Last year, the Company developed and is now commissioning a fourth mine, the El Compas mine in Zacatecas state. Production from the three mines was higher in 2018 compared to 2017 but fell short of the Company’s 2018 production guidance.
The 7% improved production performance in 2018 compared to 2017 was due to higher mine output, silver and gold grades and recoveries at the El Cubo mine. The 7% production shortfall in 2018 compared to guidance was due to lower mine output and silver grades at Guanaceví, lower gold grades at Bolañitos and delays in achieving commercial production at El Compas.
Highlights for Fourth Quarter, 2018 (Compared to Fourth Quarter, 2017) •Silver production decreased 4% to 1,386,505 oz •Gold production decreased 10% to 13,117 oz •Silver equivalent production was 2.4 million oz (at a 75:1 silver: gold ratio) •Silver ounces sold totaled 1,264,340 oz •Gold ounces sold totaled 11,819 oz •Bullion inventory at year-end included 101,146 oz silver and 218 oz gold •Concentrate inventory at year-end included 96,614 oz silver and 1,517 oz gold •Nick Shakesby was appointed as new Vice President, Operations •Bolañitos drilling returned multiple high-grade intersections including 1,415 grams per tonne (gpt) silver and 2.25 gpt gold over a 1.1 metre (m) true width in the San Miguel vein •Parral drilling and underground sampling returned multiple high-grade intersections including 934 gpt silver, 0.21 gpt gold, 3.0% lead and 5.9% zinc over 4.2 m true width and excellent metallurgical recoveries by flotation and leaching •El Compas commissioning has been delayed due to several issues including excess clay in ore that caused a recovery issue in the plant (metallurgical studies ongoing), a water issue in the tailings facilities (now resolved), and a ball mill equipment failure in late December (to be rectified by late January) that halted plant operations while the mine continues operating (ore stockpile now exceeds 10,000 tonnes)
Highlights for Fiscal 2018 (Compared to Fiscal 2017) •Silver production increased 12% year-on-year to 5,522,068 oz •Gold production was flat with 52,967 oz •Silver equivalent production was 9.5 million oz (at a 75:1 silver:gold ratio) •Silver ounces sold totaled 5,461,197 oz •Gold ounces sold totaled 51,318 oz •Manuel Echevarria was appointed as Vice President, New Projects •El Cubo mine output, grades, recoveries and production were significantly higher than 2017 •El Compas mine development was completed and plant commissioning is ongoing •Terronera reserves and resources increased and an updated pre-feasibility study was completed
Bradford Cooke, CEO, commented, "All in all, 2018 was quite a transition year for Endeavour Silver. We saw improved performance from El Cubo, but declining performance at Bolañitos, where new mineralized zones were discovered and at Guanaceví, where two new orebodies are being developed. The new El Compas mine completed its initial mine development but plant commissioning issues have delayed production. In October, Nick Shakesby was appointed new VP Operations to help make a positive difference in our mining operations. “We also appointed Manuel Echevarria in May as VP New Projects to oversee the engineering and development of our new mines. The Terronera project advanced to an expanded reserve and resource estimate and a new and improved pre-feasibility study was released in August. At Parral, drilling intersected multiple high-grade intersections in the San Patricio vein and significant silver mineralization was mapped and sampled underground at the Veta Colorada mine. “In 2019, we anticipate improving the performance of the Guanaceví and Bolañitos mines, making the most of our declining reserves at the El Cubo mine, delivering our first year of commercial production at El Compas and upon receiving a positive board decision, commencing the development of our fifth mine at Terronera. Endeavour is fortunate to have a compelling pipeline of development projects to replace old mines and fuel our future growth.” MORE HERE
|
|
|
Post by Entendance on Feb 25, 2019 7:58:20 GMT -5
•Endeavour Silver (NYSE:EXK): Q4 GAAP EPS of -$0.03 beats by $0.03. •Revenue of $33.8M (-18.8% Y/Y) beats by $0.11M.
Endeavour Silver Reports 2018 Financial Results; Conference Call at 10am PST (1pm EST) Today
VANCOUVER, British Columbia, Feb. 25, 2019 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK, TSX: EDR) announces its financial results for the fourth quarter and year ended December 31, 2018. The Company owns and operates three underground silver-gold mines in Mexico; the Guanaceví mine in Durango state and the Bolañitos and El Cubo mines in Guanajuato state. Endeavor is commissioning its fourth mine, El Compas in Zacatecas, advancing the Terronera project in Jalisco to a development decision and exploring the Parral project in Chihuahua to expand resources.
In 2018, revenue was flat year-on-year and mine operating cash flow decreased 3% as a result of lower metal prices, offset by higher production. Consolidated production costs increased due to continued operational challenges at Guanacevi, partially offset by improved costs at El Cubo. Net earnings decreased due to higher depreciation and depletion at Guanacevi compared to the prior year. In 2019, Guanacevi’s proven and probable reserve tonnes increased 150% and reserve silver equivalent oz increased 200%, which should result in significantly lower depletion in 2019.
The El Cubo and Bolanitos mines continued to generate positive free cash flows in 2018, which were reinvested at Guanacevi to develop two new orebodies, and at El Compas to develop the Company’s fourth mine. Additionally, Endeavour spent $12.4 million on exploration, primarily to advance the Terronera project and to explore the Parral properties, where both projects had significant additions to reserves and resources, respectively in 2018.
Notwithstanding the operational challenges faced in 2018, the consolidated mining operations returned flat cash costs and lower all-in sustaining costs net of gold by-product credits.
The complete financial statements and Management’s Discussion & Analysis can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All shareholders can receive a hard copy of the Company’s complete audited financial statements free of charge upon request. All amounts are reported in US$.
Highlights of Fiscal 2018 (Compared to Fiscal 2017)
Financial •Net loss was $12.4 million (loss of $0.10 per share), compared to net earnings of $9.7 million (earnings of $0.08 per share) •EBITDA(1) decreased 14% to $21.9 million •Cash flow from operations before working capital changes decreased 6% to $22.2 million •Mine operating cash flow(1) decreased 3% to $43.9 million •Revenue was flat at $150.5 million on 5,461,197 silver oz sold and 51,318 gold oz sold •Realized silver price decreased 9% to $15.65 per ounce (oz) sold (consistent with the 2018 average spot price) •Realized gold price decreased 1% to $1,267 per oz sold (consistent with the 2018 average spot price) •Cash costs(1) were flat at $8.06 per oz silver payable (net of gold credits) •All-in sustaining costs(1) decreased 9% to $15.45 per oz silver payable (net of gold credits) •Bullion inventory at year-end included 101,146 oz silver and 218 oz gold •Concentrate inventory at year-end included 96,614 oz silver and 1,517 oz gold •Working capital decreased 18% to $54.5 million at year end •Raised net $7.6 million in equity proceeds from the ATM offering •No outstanding debt as of December 31, 2018
Operations •Silver production increased 12% year-on-year to 5,522,068 oz •Gold production was flat with 52,967 oz •Silver equivalent production was 9.5 million oz (at a 75:1 silver: gold ratio) •Guanacevi achieved a million hours worked without a lost time accident •Bolanitos drilling returned multiple high-grade intersections including 1,415 grams per tonne (gpt) silver and 2.25 gpt gold over a 1.1 metre (m) true width in the San Miguel vein •Completed an Updated Pre-feasibility Study at the Terronera project and subsequently increased Terronera Mineral Reserves •Parral drilling and underground sampling returned multiple high-grade intersections including 934 gpt silver, 0.21 gpt gold, 3.0% lead and 5.9% zinc over 4.2 m true width and excellent metallurgical recoveries by flotation and leaching •El Compas commissioning has been delayed due to several issues including excess clay in ore that caused a recovery issue in the plant (metallurgical studies ongoing), a water issue in the tailings facilities (now resolved), and a ball mill equipment failure in late December (rectified in February 2019) that halted plant operations while the mine continues operating •Manuel Echevarria was appointed as Vice President, New Projects •Nick Shakesby was appointed as Vice President, Operations
Highlights of Fourth Quarter 2018 (Compared to Fourth Quarter 2017)
Financial •Net loss of $3.7 million (loss of $0.03 per share) compared to earnings of $2.7 million (earnings of $0.02 per share) •EBITDA(1) fell 68% to $2.2 million •Cash flow from operations before working capital changes fell to $0.1 million •Mine operating cash flow(1) decreased 33% to $8.5 million •Revenue decreased 19% to $33.8 million on 1,264,340 silver oz sold and 11,819 gold oz sold •Realized silver price decreased 12% to $14.88 per oz sold (2% higher than Q4 2018 average spot price) •Realized gold price decreased 1% to $1,270 per oz sold (3% higher than Q4 2018 average spot price) •Cash costs(1) increased 16% to $9.22 per oz silver payable (net of gold credits) •All-in sustaining costs(1) increased 12% to $14.20 per oz silver payable (net of gold credits)
Operations •Silver production decreased 4% to 1,386,505 oz •Gold production decreased 10% to 13,117 oz •Silver equivalent production was 2.4 million oz (at a 75:1 silver: gold ratio)
1.Adjusted earnings, mine operating cash flow, EBITDA, cash costs and AISC are non-IFRS measures. Please refer to the definitions in the Company’s Management Discussion & Analysis.
Bradford Cooke, CEO, commented, "All in all, 2018 was a transition year for Endeavour Silver, from improving the operational performance at our three mines, to developing and commissioning the new El Compas mine and completing an updated PFS for the Terronera project while advancing towards a development decision. The El Cubo and Bolanitos mines performed well but Guanacevi continued to face operational challenges.
“At Guanacevi, two new shallower, higher grade orebodies are being developed to turn around the operating performance by increasing plant throughput and grade. At El Compas, initial mine development was completed but plant commissioning issues delayed production. We built a healthy ore stockpile while sorting out the plant issues and recently re-commenced plant operations in mid-February with a view to achieve commercial production by the end of Q1, 2019.
“At Terronera, an expanded reserve and resource estimate and a new and improved pre-feasibility study were released in August. At Parral, drilling intersected multiple high-grade intersections in the San Patricio vein and significant silver mineralization was mapped and sampled underground at the Veta Colorada mine.
“In 2019, we anticipate improving our performance at Guanacevi and Bolanitos, making the most of our declining reserves at El Cubo, delivering our first year of commercial production at El Compas and upon receiving a positive board decision, commencing the development of our fifth mine at Terronera. Endeavour is fortunate to have a compelling pipeline of development projects to fuel our future growth.”
Financial Results (Consolidated Statement of Operations appended below here) For the year ended December 31, 2018, the Company generated revenue totaling $150.5 million (2017 - $150.5 million). During the year, the Company sold 5,461,197 oz silver and 51,318 oz gold at realized prices of $15.65 and $1,267 per oz respectively, compared to sales of 4,892,855 oz silver and 51,460 oz gold at realized prices of $17.24 and $1,285 per oz respectively in 2017.
After cost of sales of $147.0 million (2017 - $122.0 million), mine operating earnings amounted to $3.5 million (2017 - $28.5 million) from mining and milling operations in Mexico.
Excluding depreciation and depletion of $38.4 million (2017 - $16.6 million), the recovery of stock-based compensation of $0.1 million (2017- $0.2 million expense) and the inventory write of $2.0 million (2017- $0.1 million) mine operating cash flow before taxes was $43.9 million in 2018 (2017 – $45.4 million). Operating losses were $17.5 million (2017 – earnings of $7.7 million) after exploration expenditures of $12.4 million (2017 – $12.9 million) and general and administrative expense of $8.6 million (2017 – $7.9 million).
Net loss amounted to $12.4 million (loss of $0.10 per share) compared to earnings of $9.7 million ($0.08 per share) in 2018. The increased depletion rate at Guanacevi was based on the 2017 Estimated Mineral Reserves and the principal factor in the change in earnings from prior year.
Current income tax expense slightly decreased to $4.4 million (2017 – $4.6 million), while deferred income tax recognized a $9.7 million recovery (2017 – $6.4 million).
For the year ended December 31, 2018, direct production costs were $86.32 per tonne compared to the guided range of $80-$85 per tonne. The lower throughput and higher costs than planned at Guanaceví drove the higher consolidated direct costs per tonne than guided.
Consolidated cash costs, net of gold by-product credits, were guided to be $6.00-$7.00 per oz of silver in 2018 and consolidated cash costs expressed on a co-product basis were guided to be $10.00-$11.00 per oz silver and $750-$800 per oz gold. For the year ended December 31, 2018, cash costs, net of gold by-product credits, were $8.06 per oz and cash costs expressed on a co-product basis were $11.15 per oz silver and $902 per gold oz. The lower than planned throughput resulted in higher than guided costs per tonne and costs per ounce.
All-in sustaining costs (AISC), net of gold by-product credits, in accordance with the World Gold Council standard, were guided to be $15.00-$16.00 per oz of silver produced in 2018 reflecting new investments in sustaining exploration and development programs. For the year ended December 31, 2018 AISC, net of gold by-product credits, was $15.45 as the Company spent less on sustaining capital expenditures than guided. The lower capital expenditures were offset by higher operating costs on a per ounce basis.
Conference Call
A conference call to discuss these results will be held today, Monday, February 25 at 10am PST (1pm EST). To participate in the conference call, please dial the numbers below. No pass-code is necessary.
Toll-free in Canada and the US: 1-800-319-4610 Local Vancouver: 604-638-5340 Outside of Canada and the US: +-604-638-5340
A replay of the conference call will be available by dialing 1-800-319-6413 in Canada and the US (toll-free) or +604-638-9010 outside of Canada and the US. The required pass-code is 2873#. The replay will also be available on the Company’s website at www.edrsilver.com 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, Director Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or email at gmeleger@edrsilver.com
About Endeavour – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently commissioning its fourth mine at El Compas, advancing a possible fifth mine at the Terronera mine project and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
|
|