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Post by Entendance on Feb 25, 2019 19:02:09 GMT -5
March 15, 2019 Silver’s rally has yet to come, but the white metal is sitting on solid fundamentals right now said Bradford Cooke, CEO of Endeavour Silver. Video here
Endeavour Silver Corp. 2018 Q4 - Results- Earnings Call Slides
Endeavour Silver Corp (EXK) CEO Bradford Cooke on Q4 2018 Results Bradford Cooke - CEO & Director Galina Meleger - Director, IR Daniel Dickson - CFO Godfrey Walton - President, COO & Director
Heiko Ihle - H.C. Wainwright & Co. Joseph Reagor - Roth Capital Partners Chris Thompson - PI Financial Corp.
Galina Meleger Good morning, everyone, and welcome to the Endeavour Silver Corp. 2018 Year-end 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 year, 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. So with that and on behalf of Endeavour Silver, I'd like to thank you again for joining our call today. And I will now turn it over to our CEO, Bradford Cooke.
Bradford Cooke Thanks, Galina, and welcome everybody to this year-end conference call on our 2018 financial results. I'd like to start with some of our financial and operating highlights and then a brief discussion and then we'll open it up for Q&A. So in 2018, the company recorded a headline loss of $12.5 million compared to about $10 million of earnings last year. I should point out right after those, virtually all of that loss was a noncash item related to depreciation and depletion of the reserves at our Guanaceví operating unit. And we did actually have a very successful year in the resource conversion last year, so that the reserve tonnes at Guanaceví were actually up 150% and equivalent ounces were up 200%, meaning that we shouldn't have to face this depletion issue next year in 2019. EBITDA was down 14% year-on-year to $22 million. Cash flow from operations before working capital changes were down 6% to $22 million. Our mine operating cash flow was down a little bit 3% to $44 million and revenue was relatively flat at $150 million based on 5.5 million ounces of silver sold and 51,000 ounces of gold sold. Our cash costs were flat on the year at about $8 per ounce of silver payable, net of the gold credit. And our all-in sustaining costs actually decreased 9% to about $15.5 per payable silver ounce last year. We finished off the year with working capital of about $54.5 million, $33 million of which was cash and no debt. So those financial metrics were really driven by slightly higher production and slightly lower metal prices. Our consolidated production costs drifted a bit higher last year, due to -- primarily to operational challenges at one mine, Guanaceví, and it was offset partially by improved operating costs at El Cubo. So Guanaceví issues last year were primarily trying to segue out of the deep narrower and lower grade portions of our two original discoveries that we have been operating since 2005 and into the development of two new shallower and higher grade orebodies at Milache and Santa Cruz Sur. I can't give you an update on that. We penetrated the ore zone at the Milache development in the fourth quarter of last year, and we have for some weeks now been shipping development ore to the mill. I think we're running about 200 tonnes per day of Milache ore to the mill at this time, and we expect that to reach the capacity of about 300 to 400 tonnes per day over the next quarter or so. Our other development asset at Guanaceví is Santa Cruz Sur ore body, and we did commence development in the fourth quarter. We do expect to contact ore in the second quarter and see that one in full production in the second half of the year. So Guanaceví, we believe, is in the middle of a turnaround. We took some operating losses there last year, a drag down the consolidated performance of the company. And to the development of these two new orebodies at Guanaceví, we do believe we can return Guanaceví to good financial health. The El Cubo and Bolañitos mines continue to generate positive free cash flows in 2018, and we took most of those free cash flows and reinvested them partly at Guanaceví for the development of the two new ore bodies, partly at El Compas to develop our fourth mine. We also had a $12 million exploration spend last year, primarily at Terronera and secondarily at Parral, both of these projects are in the development pipeline. Terronera will be up next and Parral, we hope, will follow Terronera in 2021. So some operating metrics. We had 12% increase in silver production last year to 5.5 million ounces. Gold production was relatively flat year-on-year at 53,000 ounces. Our equivalent production was about 9.5 million ounces. And some of the milestones for the year, Guanaceví achieved 1 million hours work without lost time accident. First time it's done that. Bolañitos drilling returned multiple high-grade intersections from a new area, we call San Miguel vein. We did update the prefeasibility study for the Terronera project late August last year and subsequently increased the Terronera mineral reserve substantially. So we are looking at yet another update of the prefeasibility study going forward. Parral was, I think, our biggest exploration project last year with very successful drilling and a significant bump in resources at Parral, primarily from the San Patricio high-grade vein area in that district. El Compas, which we had originally scheduled for commissioning last year, ran into a number of startup issues, and we are through them now, thankfully. The mill is back up and running a couple of weeks ago, and we have built a very healthy stockpile from the mine, which continue to work, while the plant had to sort out its operating issues. And we now are forecasting that we should achieve commercial production at El Compas by the end of this quarter. We have two major appointments in our senior management group last year with Nick Shakesby joining us as VP of Operations and Manuel Echevarria appointed as our VP of New Projects. So all in all this year, it was really very much a transitional year for Endeavour as we move away from the older mines and into new mines. And so where I'd like to finish this presentation is just a high-level overview of where we're going with the company. We've enjoyed 15 years, believe it or not, of operations starting with Guanaceví in early 2005. We had a very similar business model for our first four mines: Guanaceví, Bolañitos, El Cubo and El Compas were all basically small high-grade mines in historic districts that were closed or about to close for lack of ore or financial issues. And in each case, we recognized opportunities to restart those operations, restart the exploration, make new discoveries, fast-track the development of new mines, but ultimately grow those mines organically. That, we could consider to be our first phase of organic growth. The next phase of organic growth basically came about because the opportunity to pick low-hanging fruit in Mexico became more and more challenging as time went on. So we just decided that if we couldn't buy, we'd have to find. And the fifth mine, Terronera, is a result of this change of strategy to go to again historic districts, but without the built-out infrastructure and look for virgin orebodies, build mines from scratch and effectively evolve our growth strategy. So we are in the final stages of commissioning mine number four at El Compas. We hope within weeks, we'll be seeking a development decision on mine number five at Terronera. And Parral, which is still in the advanced exploration stage, will go to its first economic assessment this year with a view to following Terronera in our development pipeline. So I do believe because of those three projects, Endeavour actually has the most compelling organic growth profile in the silver mining sector. We also announced in February of this year a large portfolio of drill ready projects in Chile and that represents again the next phase of our organic growth profile as we move away from near high-grade mining and into what we hope will be new larger open-pit discoveries in Chile. So that's my summary of the year-end performance for Endeavour. And I think what we'd like to do now is open up the call for questions.
Heiko Ihle, H.C. Wainwright So on El Compas, you mentioned in the release and also in the presentation that Galina sent around earlier today that the El Compas commissioning has been delayed for a number of reasons. Just going through them one by one, can you just give some detail on the excess clay in the cost to recovery issue on the plant and the cash impact from this? I mean, it sounds like the metallurgical study is ongoing, and how much of a solution do we have? And what are the longer-term impacts, please?
Bradford Cooke Heiko, I'll just give you a brief overview and then Godfrey can fill in the details. In a nutshell, we discovered more clay in the ore when we started the feeding the ore to the plant. And so it actually hung up each successive circuit. Initially, it was crushing issues then it was causing recovery problems in the flotation cells. We managed get through both of those and pushed the clay out into the tailings only to have the clay block the drains in the tailings facility and that caused us to shut down actually in August and actually effectively completely clean out the tailings facility and expand it, so we can handle not only the clay, but more material. The other issue that we had recently was some breakages in the mill. And I guess, for that -- for those two things, I'd like to turn over to Godfrey, maybe he can fill in on some details.
Godfrey Walton Heiko, this is Godfrey. Yes, we do have those clay issues to the plant and it ends up in the tailings pond, and that was combined with very high rainfall. And so we actually filled the tailings pond pretty quickly. And as Brad mentioned, we did shut it down and we got it organized now so that we can handle: A, the water if we get that much rain again; and B, the clay, we got clay out of tailings. So we have to recast that and that is now up and running. It's just been running for about 10 days now. So we expect to be able to continue with the mill. And as Brad mentioned, we kept going and getting commercial production by the end of this quarter. Recovery wise, the clay did affect the recovery. We are working on a number of ways to increase that recovery, and I think we will have a solution here in the near future.
Heiko Ihle Very helpful. On that same talk, now this might be a Godfrey question as well. Can you provide some color on the cost for the water issue in the tailings facilities? I mean, it sounds like it has been resolved, but -- and also the cost impact from the three months shut out of the ball mill? Godfrey Walton Yes, we stockpile. I think, we have somewhere around 15,000 tonnes or maybe as high as 20,000 tonnes beginning in front of a plant. The cost was about $400,000 to work on the tailings pond where we did a lot of work on that and prepared a lot for the future there. So it wasn't just looking at the clay, it was just looking at potential issues down the road. I think that's answered your question.
Daniel Dickson Yes, the last part -- Heiko, it's Dan here. The last part is just the trunnion and to recast that trunnion. Some additional costs of having staff in Mexico if we cannot do layoff, it doesn't make financial sense unless we're going to be down for more than three months. So we'll be carrying some cost at the operation. Other than that, there is no significant capital requirement, like Godfrey said, it's about $400,000 to $500,000 on the tailings and then the ball mill effectively, which is small, but we didn't have that part. Now we have that third part as well.
Heiko Ihle Got it. And just sort of a slight clarification. At Guanaceví, and I'm not sure if you're willing to answer this scientifically, but maybe just guide us in the right direction. You had silver equivalent grade of 269 grams per tonne in 2018. In the presentation, you mentioned that grades will rise this year and you're probably not going to tell me the exact amount, but can you just sort of tell us where January and February, which is essentially overcame in please. Just doing the math at the 1,100 tonnes per day and doing the same recovery and everything else, I mean, it looks like 280, 285 grams per tonne. Is that about in line with what you're thinking?
Daniel Dickson Heiko, it's Dan again. It's -- that -- your number there is a little bit higher than what's in our plan. Brad touched on. Milache is going to bring up grades this year. Milache is a higher-grade zone, but we're not fully pulling from there. We're not getting -- when we're at 300 to 400, you should see that grades come up into that area, but in Q1, we're going to be more in the 250, 240 range.
Heiko Ihle
Oh, no, I mean, the 280 was for the full year. Is that in line with what you're expecting?
Daniel Dickson No, still a little bit high for full year.
Joseph Reagor, Roth Capital Partners Heiko hit on some smaller items already. So I'll try to take the other approach, a big picture. What you guys are thinking on the M&A front right now? I know there is a few companies that have announced that are putting some Mexican assets up for sale both on the silver and gold side? And then there is, obviously, some larger mergers going on in the gold space, and could that create some opportunities for you guys as well? What do you think there?
Bradford Cooke Thanks for your question, Joe. We are active on M&A, have been for many years. And if you look back, we've actually pulled the trigger on six asset acquisitions in the last 15 years. So we are active in the space. We haven't yet done a corporate transaction, but that's really for valuation reasons. We're pretty tough on -- a pretty disciplined choice, say, on our valuations to acquisitions and our ability to add value post-acquisition. So what are we looking for and would any other current assets up there would be of interest? Yes, we're looking at a couple of things. We typically would like to go up the ladder in terms of size and quality and anything that we look at has to compete with what's already in our pipeline. So 5,200 million ounces per year of silver equivalent reserve resource with ability to grow 5 to 10 million ounce per year production profile with ability to grow. Perhaps one of the most important things is that for the first four mines that we bought in Mexico all basically had zero reserve life when we started, and we've now been operating Guanaceví for 15 years and we're still running a one year reserve life there as well as 2 or 3 years of resources. So building Terronera with initially a 10-year-plus mine life is very important for us. And anything we acquire, we don't want to be -- we'd like to see our material mine life as well. So that's kind of our shopping list, and it is hard to find all the projects in the silver space, as you know. So you just have to have cash a very broad net and look at everything. We've kissed a lot of frogs in the last few years.
Joseph Reagor Fair enough. And then kind of another big picture item. Can you walk us through what the corporate plan is for financing Terronera given that you're hoping to be in a position to make that construction decision soon?
Bradford Cooke Yes. Joe, I think, there's actually two answers there because we published prefeas in August of last year with a $76 million Phase I CapEx in our public guidance and in our presentations was that we'd like to do $50 million of debt and about $30 million of equity and there is $30 million cash in the kitty right now. And we have about $30 million left in our ATM facility. So one could argue that once the debts are in place then we're good to go. We are, because of the success in drilling last year, updating and optimizing the prefeasibility study. We do think there's a bigger and better project there. So the CapEx number will probably move. And conceptually, if you included the Phase II from last year's PFS, we're looking at $100 million in total CapEx. So conceptually, we would like to see half of that is debt and the balance is cash and equity.
Joseph Reagor Okay. And do you think it would be done all upfront or kind of as you go so you can see how much cash flow you can generate along the way?
Daniel Dickson Well, it's been as we go so far because we don't yet have our final permit. But as soon as we have the final permit, then we can go to the board and get our development decision and then I think we would like to see either all or the larger part of the financing package in place. We hope to have a debt announcement shortly, and we'd also hope to have permitting and decision announcement shortly, certainly looking for that this quarter and the financing will flow from that. Chris Thompson, PI Financial
A couple of quick questions. A number of my questions have been asked. But just looking at the assets here, starting off with Bolañitos, you guys said about looking at great here 82 gram per tonne silver and 1.77 gram per tonne gold in the fourth quarter. What should we be looking at for this year by way of grade?
Bradford Cooke Godfrey?
Godfrey Walton Chris, thanks for the question. We're looking at very similar grades as we did in the fourth quarter. So it should be the same.
Chris Thompson And at about 1,200 tonne a day?
Godfrey Walton At around 1,200 tonnes a day, yes, that's correct.
Chris Thompson Perfect. All right. Just moving on to El Cubo. Obviously, you guys are guiding that you're going to reducing the, I guess, the throughput output to 750 tonne a day. What should we be sort of modeling by way of stepping down to that as far as timelines?
Bradford Cooke So Chris, thanks again for your question. And our announcement that we're going to have the plant capacities intended primarily to buy more time for the exploration group to replace this year's reserves. But for modeling purposes, one year at 750 tonnes per day will have to do for now.
Chris Thompson All right. And just wanted to be -- looking -- if I get this right, I mean, you're basically -- you're pulling it over from Milache, you've got Santa Cruz as well. Is Porvenir also supplementing the production from the asset, Porvenir Norte?
Bradford Cooke Yes. Dan probably has the better breakdown on that.
Daniel Dickson Yes, no problem, I don't have the answer to that question in front of me, but I do have it. We get -- we're -- Santa Cruz and Porvenir Norte are a big chunk of it right now, probably 800 tonnes, 200 tonnes coming from the Milache. Porvenir Norte in itself is about 250 tonnes per day and the remainder coming from Santa Cruz. And then when Santa Cruz Sur comes online, that will be about another 200 tonnes to 300.
Chris Thompson Perfect. Great. Final question, actually final 1 or 2. You got stockpiles obviously at El Compas, can you give us a sense of grade on this?
Bradford Cooke Godfrey?
Godfrey Walton Yes, thanks, Chris. It's -- the grade is sitting somewhere in the order of 3 to 4.5 grams per tonne gold.
Chris Thompson Okay, great. All right. Final question, obviously. Just looking, I guess, you guys are sort of neutral on the cash flow from operations before working capital adjustments in the fourth quarter. At current metal prices, do you see that being the case for much of this year?
Bradford Cooke At today's prices, no. We should see an improvement for most of the year and really it's going to stem from Guanaceví, making sure we can hit our production tonnes at Guanaceví. With Milache and Santa Cruz Sur coming online, that should help them. Obviously, prices of gold in Sur have increased since the Q4 averages. So we should get a little bit of a pickup there as well. And I think I just want to say that it was a challenging year last year in the silver mining business for all operators. We came through at reasonably well, and we are looking at a much better year in 2019. Operationally, it's critical that we do 3 or 4 things well this year, finish off the development to turn off Milache and Santa Cruz Sur to turn around to Guanaceví operation. Finish off the commissioning. So we have a commercial operation at El Compas. Getting our final permits and financing in place, so we can start building Terronera. And obviously, filing more reserves at Bolañitos and El Cubo. I think that we've got a good start to the year and don't be surprised if we do find something on the M&A side. So with that, I'd like to close the call. Thank you.
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Post by Entendance on Apr 15, 2019 7:39:09 GMT -5
"...So, as we can see, silver production fell across the board at all of the company’s mines. Surprisingly, another primary silver producer also reported a substantial decline in production. Endeavour Silver saw its production fall a stunning 21% in the first quarter..."
More here
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Post by Entendance on May 6, 2019 15:52:54 GMT -5
Company Participants Galina Meleger - IR Bradford Cooke - CEO Godfrey Walton - President and COO Dan Dickson - CFO
Conference Call Participants Joseph Reagor - Roth Capital Partners Chris Thompson - PI Financial Mark Reichman - Noble Capital Markets
Galina Meleger Good morning, everyone, and welcome to the Endeavour Silver Corp 2019 First 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 2019 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'd like to thank you again for joining our call today. And I will now turn it over to our CEO, Bradford Cooke.
Bradford Cooke Thanks, Galina and welcome everyone to this first quarter financial results conference call on Endeavour Silver. As you have already seen, we had a pretty tough quarter in Q1 2019. We got a very slow start to the year in our operations and that has really impacted our financial performance in Q1. Bolañitos and El Cubo, two of our mines continued to be profitable in the quarter, but Guanaceví, our first mine continued to struggle and incurred almost half of the net loss incurred during the quarter. We have initiated additional detailed reviews of the mine plan alternatives for Guanaceví, including ways to improve the viability of mining the main Santa Cruz ore body and accelerating the development of the two ore bodies at Milache and Santa Cruz. So, but clearly, we need to do more than that. So management has actually implemented multiple measures to improve our operating in financial performance. We've basically initiated cost cuts across the entire range of the company's activities. I'm confident that we'll get through it. So, the highlights from the first quarter financially were a significant drop in net earnings to a $13 million loss. Cash flow from operations dropped to around $2 million and operating cash flow was around $4.5 million. Revenue decreased to $29 million. That was on the back of lower silver, gold and silver equivalent production respectively 1.07 million ounces of silver, 10,000 ounces of gold for 1.9 million ounces of silver equivalents. With regard to what we're doing about the core performance in the first quarter, we are focused clearly on accelerating the development at each mine site, so we can gain access to more reserves and accelerate our production rates to get back on plan as soon as possible. In addition to that, we're evaluating how to mine higher grades and reduce dilution and also are doing various studies to improve metal recoveries. Management changes have already been implemented at Guanaceví and Bolañitos to address some systemic issues. And we expect to improve supervision of the day-to-day operations going forward in order to achieve our planned development and production targets. In order to boost mine development, we need better equipment utilization and better contractor performance. So some mining equipment has already been relocated from low priority areas to high priority areas. Some mining equipment, new mining equipment has already been delivered at one of the sites. And we've already made changes to some mining contractors and are considering other changes. Really, the longer term solution on equipment though is to order a new fleet and we're going to our board meeting tomorrow with a proposal to lease a fleet of equipment for delivery in the second half, but we should significantly reduce maintenance costs, dramatically improve availabilities, and therefore enhance productivity. We have hired a new senior mine planning engineer to review and reduce certain mine plans and there is a new senior mine and geological consultant who's with us now reviewing and improving grid control moving from mine to mine. We've already done some reductions in terms of employees and contractors in Q1 and additional reductions are underway in Q2. We just felt we had too many people not doing enough work and one of the ways to reduce costs and boost productivity was to keep the best performers and reduce our workforce accordingly. Exploration has pretty much ceased its brownfields and greenfields explorations now working on assisting our mine exploration group with mine site infill drilling to again boost areas of reserves for better production this year. Senior management has taken a leadership position at all of this, having already taken voluntary reductions in pay. Our Vancouver administrative staff have followed in the same way and we've reduced and are continuing to reduce all discretionary spending short term. Last but not least, the study is underway to evaluate Guanaceví, which is by far the most important factor in our loss in Q1. We should have those studies done by month end so we expect to make additional changes in June. Notwithstanding all that, we continue our priority on safety performance. And, in general, we had a good safety performance in Q1 and management is also clearly focused on our next mine at Terronera. I know that El Compas has declared commercial production in Q1. We're focused on arranging the financing and optimizing the pre-feasibility study, while we await receipt of the final government permit, which we believe to be day to day, and board approval to commence construction. Last but not least, our Parral project represents the potential to become mine number six, and preliminary economic assessment is already underway based on last year's resources. And mine permitting is underway, given that Parral was historically a mine up until 1990. And there's minimal disturbance needed to recommence production at the Colorado mine. So, in summary, we recognize that we underperformed in Q1 and every big problem can be broken down into multiple small problems. We've identified all the small problems, we've been tackling the small problems. And we are already starting to tick off accomplishments as we move to resolve our operating and financial performance in Q1. So with that, I'd like to open the call up for questions.
Question-and-Answer Session
Joseph Reagor, Roth Capital Partners Couple of things. I guess quick off the top, on the G&A front with the reductions in Vancouver and thinking about that over the remainder of the year, what should we expect for G&A, and should there be any like one-time items like there was the 1.1 million in Q1, which we expect anything like that in Q2?
Dan Dickson Thanks, Joseph. Dan Dickson, CFO. Yeah, the reductions that we're seeing out of Vancouver and management, which is effectively our G&A costs, the voluntary take -- pay cuts across the executive level, that amounts to just under $500,000 in a year, obviously not huge impact, but at the same time, it sends the message that we're in this with the rest of our employees. Secondly, discretionary spending, Investor Relations, travel for the group, et cetera, et cetera. That will all reduce, exact number is still, again, probably under $500,000 on an annualized basis, at the same ...that we send. With regards to severance, you're correct. We have $1.1 million of severance flow through that relates to El Cubo where we reduced our staff from about 160 employees, we actually have a reduction of staff going through at Guanaceví here in Q2, it's an expected costs, about $0.8 million in the second quarter that will flow through. At that point, we should be done for a little bit of -- unless we announce something later in the year, but at this point, there would be no changes at this time. So right now from a G&A standpoint, for the end of the year, total amount, we expect to be about $6 million cash outflow. So anywhere between 5.5 to 6, Q1 was almost upwards of 3, inside that G&A was stock based compensation. We granted options in March, typically in the past, we've done that in May.
Joseph Reagor Okay. Thanks for the color there. Shifting gears a little bit to the exploration front, the press release seems to suggest that like some of your brownfields exploration and greenfield exploration in Peru may be going away, or at least being delayed. But then the guidance on exploration, the total number spend for the year didn't change. How should we look at that, like, are you saying that it hasn't changed yet and it may go down or is it more of that is to be back half weighted?
Bradford Cooke It’s Brad. So obviously, we needed to cut exploration, we spent over 2 million bucks on exploration in Q1 and it's the easiest cut to make. It's also discretionary. We can bring it back on when we feel more comfortable with the cash flows. So what do we cut, obviously mine site infill drilling was not cut without basically critical for defining and gaining access to reserves this -- to boost this year's production, but brownfields and greenfields exploration around Guanaceví, around Bolañitos, El Compas and El Cubo, these are all candidates for reductions immediately. Those reductions have been made. ... is not scheduled for exploration until last quarter. Sorry, the drilling in Chile was scheduled for the last quarter and we’ll obviously be making a decision about that later on in the summertime. So, the main hit on exploration is just the greenfields and brown fields in Mexico at this time.
Joseph Reagor Okay. And then one final one, does the Q1 results impact any of your planned financing for Terronera, to me gets the permit and approved by the Board, has it made any changes or are you guys using the same plan that you were a quarter ago?
Bradford Cooke No, I think it’s steady as she goes. As you know, our focus is mainly on the debt side. And we're reasonably confident we can finish off those financing arrangements here in the not too distant future.
Chris Thompson, PI Financial Just a quick question I guess on Guanaceví, my understanding is that you're producing from Milache right now, but you're wrapping up there, you want to position I guess Santa Cruz for production second half of this year. And then obviously you want to dial back the mine plan, which is exploiting resources from existing other areas. I'm trying to understand exactly what is happening at Guanaceví. Are we having problems with executing that plan? Or is this -- are these issues concerning exploitation of in north and Santa Cruz?
Godfrey Walton Hi, Chris. It’s Godfrey. Thanks for the question. It really comes down to not having a development go at the speed that it was planned. And so the areas that we were meant to be mining today are not the areas that we ended up finding and therefore the grades were lower than expected. So we've, over the last, I’d say, a month, we've been pushing on development and it is increasing. As Brad mentioned, we required a couple of pieces of equipment and they were actually two jumbos that arrived in April, and they are making a difference to our development. So the development is taking out, it'll get us back on track as to where we should be mining. And that will increase the production from Milache. We're evaluating what's happening at the bottom of Santa Cruz to see how far we should continue with that. And then, we're pushing development of Santa Cruz Sur, which should have been producing by now, but it is getting behind on development. And so by the end of the year, I think they will be a lot better positioned to produce as planned.
Chris Thompson I mean, obviously you guys are reviewing your plans at the moment. I mean, at what point, would you consider suspending production from Guanaceví -- just to give you a little bit of a breathing room, I guess, to fully sort of adjust the operating plan before executing on it, is that something you would consider?
Godfrey Walton All things are being considered at this point. And as Brad mentioned, we expect to have those studies completed by the end of this month and then we'll be making further decisions on actions at Guanaceví.
Chris Thompson Okay. And then the final question, I just flip it in Compas right now, is that free cash flow positive at the moment.
Dan Dickson We've seen grades come up there, Chris. We've changed out the contractor at the end of it. At the end of the quarter, actually mid-March and we've seen grades come up above 4 grams and in the plan, it's about 6 grams, gold per ton. We've seen that come up in the 4, 4.5 range and if we can stay at that 4, we should be at least cash flow neutral in Q2, and expect that to go cash flow positive in the second half of the year.
Bradford Cooke And Chris, this is Brad, just to put that in context, Compas is the only mine where we plan to use contractors, only contractors for the ... on dilution. Almost 100% dilution. So with the new contractor, with new supervisors, with the consulting or control geologist, we are already seeing improvement in grades and reduction of dilution. There's more coming. But I think that what we're seeing week to week right now is sufficient to be breakeven and we obviously want to do better.
Heiko Ihle of H.C. Wainwright Unidentified Analyst Hey, this is Tyler calling in for Heiko. Just wanted to first say that we appreciate the cohesive nature in which everyone in the organization from the top on down seems to cope with the voluntary pay cuts together. But you state in your release that you guys are working on debt financing for Terronera. What sort of terms are you seeing there? And can you provide some color if original plans to fund the mind remain intact or has anything in regards to timing or funding sources changed?
Dan Dickson Yeah, thanks, Tyler. Yeah, we're still looking at, I won't get into the details in terms of -- it's not fair to the counterparties that we're working with. But the terms are fair, it's just how much we can get to fund for Terronera and we've been out there publicly and said basically, we're looking kind of, if it's $100 million dollar bill, it’s a 60-40 split or almost a 50-50 split and there is funds available for that. It just depends on how much we secure, need to secure. And obviously the terms of that and we've seen everything from 6% up to the predatory pricing of 20%. So obviously, we're not going to move with some of that predatory pricing in the debt world, and that's fine, but we think we can get it done at a reasonable rate. It's just taking a little bit more time. And the key thing for that is that permit. Obviously, guys from a credit standpoint aren't going to be able to lend until we have that permit in hand. And that makes sense, but we're fully confident we can get that done here in the next couple of months.
Unidentified Analyst Perfect. Thank you. And I think you may have touched on this briefly, but just for clarification, you mentioned severance costs as one of the reasons for the higher all-in sustaining costs, though in the financials, it appears to just be 1.1 million. So are we missing something there? Or is that the full figure and can you estimate incremental expenses during the remainder of the year?
Dan Dickson Yeah, the $1.1 million severance cost at El Cubo actually is not in our all-in sustaining costs. We don't put it in our production costs, because it was a reduction of our operations. So Cubo went from 1500 tons down to just over 1000 tons per day in Q1. And our plan was to get down to 750 tons per day. So that's the reason why that 1.1 hasn't gone into our cost profile. We see it more as an administration expense. Secondly, going forward, we do have layoffs happening here at Guanaceví as Brad touched on, that's going to be another $0.8 million that we’ll see flow through in Q2, and other incremental costs going forward with reductions until we announced larger layoffs, which isn't expected. But again, we're looking at one of Guanaceví’s -- all the alternatives at Guanaceví. That could add things, but there's nothing more to add at this time.
Bradford Cooke And it's Brad here. Dan can you also comment on the impact of inventories on our Q1 financials, because we really didn't focus on that in the news release.
Dan Dickson Yeah, we had breakdowns, we had NRBs, inventories that flew through our financial statements. So we built stockpiles at Compas during our pre-commercial production stage. And we had about $1 million flow through of NRBs related to Compas. So we were, if everybody recalls, we were down for six weeks due to a failure at the plant and we were effectively ready to go for pre-commercial production. Those costs which is -- amounts to about $0.4 million is also running through our operating expenditures as well. Other than that in all-in sustaining costs, to answer Tyler's question, Guanaceví, just an inability to get up through the tons is actually driving that sustaining costs. G&A was a little bit higher again because we had stock based comp in Q1 compared to the previous year. All in all though, with the NRBs, through the inventories that would be a small impact, a million and a bit going through.
Mark Reichman, Noble Capital Markets Just three areas I wanted to just focus on. The first would be Bolañitos and the arsenic concentration. And, addressing kind of your confidence in moving to a mine plan that accesses the lower arsenic or because as I understood in the first quarter, you are basically having to blend with lower arsenic in order to be able to market. So that's one area, and I guess that's probably Godfrey’s question. The second would be if Dan could just kind of step back and provide kind of a high level view of the company's liquidity against anticipated cash flow generation and the funding of capital expenditures. And then the third area would be for Brad. And that's just to address the government permitting process for Terronera?
Godfrey Walton This is Godfrey. To look at the arsenic, yes, we did have a issue in Q1 and it’s flowed a bit into Q2. And so we have been blending the arsenic concentrate from Bolañitos with Cubo, which has helped significantly to bring the average arsenic content down below 1%, which is what our buyers are interested in having it below 1%. We've also been working on using depressors, we've actually identified that the arsenics coming from us, and so we're about halfway through a test to use depressors to depress the arsenic pyrite and it's working quite effectively. We expect that to be a solution to the arsenic problem. We're also doing a lot of drilling to identify where the levels of arsenic are high and low and so that we can continue blending internally within Bolañitos and not requiring the concentrate from Cubo. So we expect to have that solved in Q2. And I think we're actually quite close. We are going to try a number of other depressor for the arsenic pyrite which may be more effective. And so that'll be ongoing in Q2 here.
Dan Dickson Mark, on your second question, kind of high level impact on liquidity of some of these plants going forward and it clearly, we went to take and pay reductions if we didn't see cash go from $33 million down to $22 million in three months, and part of that $11 million decrease was $4.5 million of working capital changes. So basically, payables going out the door, receivables building and part of the arsenic issue impacted the level of inventories that we held at the end of the quarter and timing of payments on some of our receivables, it boosted our receivables again, impacting cash, but if you even separate that, just losing $7 million or $6 million of cash in the quarter, clearly made management jump and move and cutting back exploration for the year. We think we will be in a decent position to stay liquid, obviously, we have $22 million cash, no debt on the balance sheet. We have room to maneuver, but we didn't want to wait too long. Some of the things that we're looking at comes down to Guanaceví and the alternative plans that we’ll get at the end of the end of the month and into June. Clearly, we can't sustain $5 million of negative free cash flow from Guanaceví and we’d think we have a plan, getting into Milache and getting into Santa Cruz Sur. Milache has got significant better grades and Santa Cruz Sur has significantly wider veins. If we can do that and execute that plan here over the next three to six months, we will be fine. Exploration taking a step back, obviously is a way to preserve cash. There are some projects that we would love to spend exploration dollars on that we think are exciting projects. So that could be the future Endeavor, but it's just timing of both cash flows and we'll manage our balance sheet on that timing of the cash flows here over the next six to eight months. And hopefully, we get some -- a little bit more positive news in the silver price, but clearly silver's been fairly stagnant and if not a little bit depressed here, sitting under $15, and it's something that we get paid to manage. It's our job to manage that when it comes to buying more equipment to improve productivity at Guanaceví and Bolañitos. We're doing that through a leasing structure. So it's not cash going out the door immediately, it's going to be cash over time, we think the maintenance costs that we can save at Guanaceví and Bolañitos for some of these new equipment will be, if we offset the lease payments is what we're showing. So hopefully that's a positive going forward and we don't have to make more changes.
Bradford Cooke Okay, and Mark, thanks for your question. So with regard to Terronera permits, if everybody recalls, we've been several years now in the permitting process. We did receive the environmental impact study approval well over a year ago, we waited much of last year to get the water authorities approval to use certain creek for the storage of our tailings. We got that around Christmas time. And since that time, we've been waiting for the main environmental authority to give us the green light for using that creek for the storage of our tailings. How does that occur? What is the process there? We're waiting day to day for the receipt of a notice of request for payment for that permit to use the creek for tailings and we believe that is very short term. After that, it's about a two or three week process for us to actually make a payment and have it notarized so that it's accepted by the environmental authority and permit, so we still believe we're going to have this permit this quarter. And that will give us everything we need from the permitting point of view. Well, thank you, operator and thanks all for listening in today. I talked about breaking a big problem down into a number of small problems and then slowly but surely resolving them. I just like to highlight that in the last month, we were in the middle of ticking off great improvements at El Compas. We're in the middle of ticking off the arsenic issue at Bolañitos. We've ticked off contractor underperformance at Compas and we're in the process of doing it at Guanaceví, layoffs obviously, across the board where possible. So there's a lot of actions have already been taken. And I think we're also very fortunate that we're one of the very few silver mining companies to have a portfolio of projects that we are proposing to build into new mines and drive organic growth. This transition from optimizing old mines to building new mines is bad timing this year, given the state of the silver price, and so that's really what Dan was talking about with regard to cash flows. We just have to make sure that we manage our balance sheet appropriately, as we make this transition from optimizing old mines to building new mines. So we're cautiously encouraged by the changes that are underway. And I think if we just keep our heads down and do what we've done before, we'll get through this tough period. Thanks a lot for listening.
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Post by Entendance on May 7, 2019 6:03:00 GMT -5
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Post by Entendance on May 20, 2019 10:39:01 GMT -5
"According to the poor financial results in the first quarter of the year, the top primary silver miners are now likely paying the market $2 an ounce to take their silver. And, the financial situation for these silver producing companies may even worsen in the second-quarter if the oil price continues to increase while the silver price remains weak. I have to say; it is a real shame that the few companies in the world that are producing REAL WEALTH are not being paid a decent price for their product..." Top Primary Miners Now Paying The Market $2 To Take Their Silver??
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Post by Entendance on May 22, 2019 6:24:59 GMT -5
Endeavour Silver Reports High Grade Silver-Gold Drill Intersections from 2019 Exploration Program at the Bolanitos Mine, Guanajuato, Mexico VANCOUVER, British Columbia, May 22, 2019 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) reports multiple high-grade silver-gold intersections in the Plateros and San Miguel veins from the 2019 drill program at the Bolanitos mine in Guanajuato, Mexico. A total of 19 holes were drilled to mid-April, of which 12 holes intersected high grades over mineable widths and an additional 4 holes intersected old mine workings (view longitudinal sections for Plateros and San Miguel here. Drilling highlights in the San Miguel vein just north of the Bolanitos plant include 58 grams per tonne (gpt) silver and 22.1 gpt gold for 1827 gpt silver equivalent (Ag Eq calculated at an 80:1 Au:Ag ratio) over a 3.5 metre (m) true width (53.3 oz per short ton (opT) AgEq over 11.5 feet (ft) in hole MG-10). New high-grade vein mineralization has now been delineated over a 250 m length by 130 m depth below and northwest of the old San Miguel mine workings, still open to the northwest.
Drilling highlights in the Plateros vein just west of the Bolanitos plant include 108 gpt silver and 4.25 gpt gold for 448 gpt Ag Eq over a 2.3 m true width (13.1 opT AgEq over 7.5 feet (ft) in hole PLU-20). New high-grade vein mineralization has now been delineated over a 250 m length by 120 m depth below the Plateros mine workings where Endeavour is currently mining, still open at depth and to the southeast.
Bradford Cooke, Endeavour Director and CEO, commented, “We continue to be encouraged by our positive exploration results at Bolanitos. Recent drilling has extended high grade silver-gold mineralization in both the Plateros and San Miguel veins, which should help to replace reserves, increase resources and extend the mine life at Bolanitos.”
“Our operations group are nearing resolutions to the elevated arsenic in certain ores and reduced equipment availabilities, both of which put mine development and production behind schedule in Q1 2019. We plan to provide a full operational review for shareholders late this month.”
Drilling highlights are summarized in the following table of drill results here Silver equivalents are calculated at a ratio of 80:1 silver: gold. All widths are estimated true widths.
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Post by Entendance on Jun 5, 2019 6:29:43 GMT -5
Endeavour Silver Reports High Grade Silver-Gold Drill Intersections at the Guanacevi Mine, Durango, Mexico VANCOUVER, British Columbia, June 05, 2019 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) reports several high-grade silver-gold intersections in the Porvenir Centro, Porvenir Norte and Santa Cruz orebodies along the Santa Cruz vein drilled in late 2018-early 2019 at the Guanacevi mine in Durango, Mexico. A total of 17 underground drill holes were completed of which 7 holes intersected high grades over mineable widths to extend the three orebodies outside of the current mine plans (view longitudinal section here).
Drilling highlights in the Porvenir Norte orebody include 251 grams per tonne (gpt) silver and 0.93 gpt gold for 325 gpt silver equivalent (Ag Eq calculated at an 80:1 Au:Ag ratio) over a 3.0 metre (m) true width (9.5 oz per short ton (opT) AgEq over 9.8 feet (ft) in hole UG-61).
Drilling highlights in the Santa Cruz orebody include two intersections in parallel veins, 2,175 gpt silver and 2.93 gpt gold for 2,409 gpt Ag Eq over a 1.0 m true width (70.2 opT AgEq over 3.3 feet (ft)); and 579 gpt silver and 0.78 gpt gold for 642 gpt AgEq over 3.9 m (18.7 opT over 12.8 ft) in hole UG-75. Bradford Cooke, Endeavour director and CEO, commented, “We continue to be encouraged by our positive exploration results at Guanacevi. Recent drilling has extended high grade silver-gold mineralization to depth at all three of our original orebodies, which should help to increase resources at Guanacevi.” “Our operations group recently adjusted the 2019 Guanacevi mine plan to halt new development and mine accessible reserves in the original orebodies and accelerate the development and production of our two new orebodies, Milache and SCS, which are higher grade than the current reserves in the original orebodies. These actions are helping to boost metal production and reduce operating costs so the mine can return to positive free cash flow at current metal prices.”
Drilling highlights are summarized in the following table here
Corporate Update CEO Bradford Cooke has been elected Vice President of the Silver Institute for a two-year term. The Silver Institute is a nonprofit international industry association headquartered in Washington, D.C. Established in 1971, the Institute’s members include leading silver producers, prominent silver refiners, manufacturers, and dealers. The Institute serves as the industry’s voice in increasing public understanding of the value and many uses of silver, including many “green” applications, and creates programs to raise awareness of the white metal.
Qualified Person and QA/ QC 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, over-limits by fire assay and gravimetric finish.
About Endeavour ‑ Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates four high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision 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. 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
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Post by Entendance on Jun 11, 2019 5:48:06 GMT -5
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Post by Entendance on Jun 18, 2019 6:36:20 GMT -5
Endeavour Silver Receives Final Tailings Permit for the Terronera Mine Project in Jalisco State, Mexico
VANCOUVER, British Columbia, June 18, 2019 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) announces that it has received the final tailings permit for the Terronera silver-gold mine project located in Jalisco state, Mexico.
The ETJ permit, or “Authorization to Change Soil Use on Forest Land”, was issued by SEMARNAT, the Mexican Ministry of Environment. It gives Endeavour Silver the right to store tailings from the proposed Terronera high grade, underground, silver-gold mine in a secure, filtered dry stack tailings facility adjacent to the proposed plant site. Filtered dry stack tailings are considered to represent best practice in the mining sector because the tailings are filtered to recycle the water back to the plant prior to stacking them behind a storage dam. Dry stack tailings facilities cost more to build and operate than conventional wet tailings facilities but they are safer and “greener” and represent the future of tailings storage. Now that the Terronera mine project is fully permitted, Endeavour Silver plans to complete a final improved prefeasibility study in the 3rd quarter and arrange appropriate financing to build Endeavour’s next core asset. Following an estimated eighteen month construction period, the Terronera mine is expected to produce more than 5 million oz silver equivalents (at an 80:1 silver:gold ratio) over a minimum 12 year mine life, at an all-in sustaining cost per oz of silver produced in the lowest quartile of industry peers.
About Endeavour ‑ Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates four high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision 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
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Post by Entendance on Aug 31, 2019 17:44:12 GMT -5
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Post by Entendance on Nov 19, 2019 5:49:19 GMT -5
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Post by Entendance on Jan 18, 2020 7:49:43 GMT -5
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Post by Entendance on Jan 30, 2020 6:35:01 GMT -5
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Post by Entendance on Jan 31, 2020 7:11:15 GMT -5
Endeavour Silver Provides 2020 Production and Cost Guidance, Forecasting 3.0-3.5 Million oz Silver and 38,000-44,000 oz Gold, or 6.0-7.0 Million oz Silver Equivalent
VANCOUVER, British Columbia, Jan. 31, 2020 -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) released today the 2020 production and cost guidance for its three silver-gold mines in Mexico, the Guanacevi mine in Durango state, the Bolanitos mine in Guanajuato state and the El Compas mine in Zacatecas state. The Company also provides its 2020 capital and exploration budgets for the three mines and several exploration and development projects.
2020 Production and Cost Guidance Highlights In 2020, silver production is expected to range from 3.0 to 3.5 million ounces (oz) and gold production is anticipated be in the 38,000 to 44,000 oz range. Silver equivalent production is forecasted to total 6.0-7.0 million oz using a 80:1 silver:gold ratio. Consolidated cash cost and all-in sustaining cost in 2020 are both estimated to be significantly lower than 2019, at around $6.00-7.00 per oz silver and $17.00-18.00 per oz silver, net of gold by-product credits respectively. Metal price assumptions for 2020 are $17 per oz silver and $1450 per oz gold. Bradford Cooke, Endeavour CEO, commented, “We are forecasting better performance from our operating mines in 2020, with a slight decrease in consolidated production due to the suspension of mining at El Cubo complimented by lower operating costs at Guanacevi, Bolanitos and El Compas, which should decline through the year as productivity improves. “The Guanacevi mine will be our largest producer this year as the newly developed Milache, SCS and P4E orebodies continue to scale up to fill the 1,200 tonne per day (tpd) plant to capacity by the end of Q1 2020. Bolanitos production is still recovering from a lack of ore access due to the arsenic issue last year, but the development of new areas in the Plateros, Lucero and San Miguel orebodies is expected to fill the 1,250 tpd plant to capacity in H2, 2020. El Compas is now a steady state operation running at close to the current plant capacity of 250 tpd and will post its first full year of production in 2020.”
Operating Mines At Guanacevi, multiple changes were initiated to resolve operational challenges in 2019 and as a result, production in Q4, 2019 improved considerably compared to the first three quarters. From Q1 to Q4, 2019, silver equivalent grade increased 26% and plant throughput rose 21%. The original Porvenir Norte and Santa Cruz orebodies which had become too deep, narrow and low grade to be economic are now closed. The 2020 production will rise from 1000 tpd to 1200 tpd and average 1100 tpd from the new, shallower, wider, higher grade Milache, SCS and P4E orebodies. Management expects operating costs will decrease in 2020 compared to 2019.
At Bolanitos, the mine and plant also experienced operating issues in 2019 and management made several changes to resolve the problems. The recovery to normal operations, rising production and falling costs will take another two quarters but a significant improvement is anticipated in 2020. Production will rise from 1000 tpd to 1250 tpd and average 1,150 tpd from the Plateros-La Luz, Lucero-Karina and Bolanitos-San Miguel vein systems. Gold grades are expected to increase, while silver grades will decrease compared to 2019.
At El Compas, production is forecast to be steady state around 225 tpd for 2020, with ore grades similar to 2019. The Company is replacing the mining contractor to reduce operating costs in 2020 compared to 2019.
Operating Costs Cash costs, net of gold by-product credits, are expected to be $6.00-7.00 per oz of silver produced in 2020. Consolidated cash costs on a co-product basis are anticipated to be $12.00-$13.00 per oz silver and $900-$1,000 per oz gold. All-in sustaining costs, net of gold by-product credits, in accordance with the World Gold Council standard, are estimated to be $17.00-$18.00 per oz of silver produced. When non-cash items such as stock-based compensation are excluded, AISC are forecast to be in the $16.50-$17.50 range. Direct operating costs are estimated to be in the range of $85-$90 per tonne. Management has assumed a $17 per oz silver price, $1,450 per oz gold price, and 20:1 Mexican peso per US dollar exchange rate for its 2020 cost forecasts.
Capital Investments In 2020, Endeavour plans to invest $32.6 million on capital projects primarily as sustaining capital at the three operating mines, and $1.8 million in growth capital to maintain the exploration concessions and cover corporate infrastructure. At current metal prices, the sustaining capital investments will be covered by operating cash flow and current cash.
At Guanacevi, $15.8 million will be invested on capital projects, the largest of which is the development of 8.4 kilometres (km) of mine access at the Milache, SCS and the P4E orebodies. At Bolanitos, $13.6 million will be invested, including $7.8 million for 8.6 km of mine development to access reserves and resources in the Plateros-La Luz, Lucero-Karina and Bolanitos-San Miguel vein systems. The additional $5.8 million will go to upgrade the mining fleet, support site infrastructure, and raise the tailings dam. At El Compas, $1.4 million will be invested on mine development and tailings expansion.
Regarding Terronera, a final update to the pre-feasibility study is currently being prepared which will include the results of additional engineering studies and revised cost estimates. Management continues to evaluate its debt financing alternatives, but no commitments have been received as yet. The Company may also consider whether or not to proceed to a full feasibility study in order to reduce the cost of capital for the project. Following the completion of the updated pre-feasibility study and board approval, management will release a revised program and budget for the project.
Exploration Budget In 2020, the Company plans to spend $5.4 million drilling 18,500 metres of core on brownfields projects, greenfields exploration and development engineering across its portfolio of mines and properties. At the three operating mines, 10,500 metres of core drilling are planned at a cost of $2.0 million to replace reserves and expand resources. On the exploration and development projects, expenditures of $3.4 million are planned to fund 8,000 metres of core drilling, advance engineering studies at Terronera and Parral, and drill the Paloma gold project in Chile, where initial exploration results were very encouraging. A live webinar is planned in Q1 2020 to review the Company’s growth strategy and exploration and development plans.
Release of 2019 Financial Results and Conference Call The 2019 Fourth Quarter and year-end consolidated financial results will be released before market on Monday, February 24, 2020 and a telephone conference call will be held the same day 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 4069#. The audio replay and a written transcript will also be made 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 owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision 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 Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: gmeleger@edrsilver.com
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Post by Entendance on Feb 13, 2020 7:20:36 GMT -5
Endeavour Silver Appoints Director, Project Development VANCOUVER, British Columbia, Feb. 13, 2020 ( GLOBE NEWSWIRE) -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) announces the appointment of Ernesto Lima, P.Eng., MBA, D.M., as the Director, Project Development to oversee the development of the Terronera and Parral mine projects in Mexico. Mr. Lima is a professional civil engineer with 26 years of experience in the mining industry, he is fluent in English, Spanish and Portuguese, and has worked throughout Latin America for most his career. Ernesto brings to Endeavour a wealth of experience in engineering, construction, management and consulting roles, having planned and executed several large precious metal mine projects. Bradford Cooke, Endeavour CEO, commented, “I am pleased to welcome Ernesto to our Endeavour management team. His skills and experience are a great fit with our senior group and his depth and breadth of knowledge in building new mines will help fuel our future growth.”Ernesto Lima graduated with a B.ASc. degree from the University of the Republic, Montevideo, Uruguay in 1993 and worked in both civil and mine construction in Uruguay and Chile until 2000, when he returned to University to obtain an MBA degree in 2002 from ORT University, also in Montevideo. Mr. Lima was subsequently awarded a Doctorate degree in Management and Organizational Leadership from Phoenix University in 2010. Since 2003, Mr. Lima has worked as Engineering and Construction Manager on a $300 million gold mine project in Venezuela, Director of Project Development on a $450 million silver mine project in Argentina, EPCM Project Manager for an engineering firm on a large gold mine project in Brazil, General Manager of Business Development for another large gold mine project in Brazil and most recently, he was the COO of Valor Resources on a large silver-copper mine project in Peru that was sold last year to Rio Tinto. Ernesto’s expertise includes leading all stages of project development, including conceptual and detailed operational and economic studies, mine engineering, procurement, construction and commissioning. His strengths include project evaluation, safety performance, strategic analysis, team building, business management and community engagement. Endeavour also announces the departure of Manuel Echevarria as the Vice President, New Projects. The Company wishes Mr. Echevarria well in his future endeavors. About Endeavour Silver – 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 advancing the Terronera mine project towards a development decision 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 Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email: gmeleger@edrsilver.com
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Post by Entendance on Feb 24, 2020 6:58:26 GMT -5
Earnings Conference Call at 10am PST (1pm EST) Today VANCOUVER, British Columbia, Feb. 24, 2020 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) released its financial results today for the fourth quarter and year ended December 31, 2019. The Company operates three silver-gold mines in Mexico: the Guanaceví mine in Durango state, the Bolañitos mine in Guanajuato state and the El Compas mine in Zacatecas state. Bradford Cooke, Endeavour CEO, commented, “The Company’s financial performance last year was negatively impacted by significant operating issues and higher costs at each of our mines. We made sweeping changes to the mining operations in Q2 and Q3 and as a result, we are finally seeing production rising and costs falling, led by Guanacevi. Endeavour expects higher production and lower costs at each of its three mines in 2020.” “Our headline net loss includes several extraordinary items in addition to underperformance of our mines, such as increased general administrative costs, higher exploration costs, significant depreciation and depletion due to short mine lives, elevated contractor mobilization costs, employee severance, expensing capital development due to exhaustion of remaining reserves, and the suspension of operations at El Cubo.” “While 2019 was operationally the most challenging in our 15 year history, we did enjoy some success including achieving commercial production at our new El Compas mine, turning around the Guanacevi mine, making the required changes at Bolanitos to turn it around, receiving the final government permits to develop Terronera and delivering positive exploration drill results at Guanacevi, Bolanitos and Parral.”
2019 Fourth Quarter and Full Year Highlights Gross Revenue: Q4 revenue of $34.6 million and full year revenue of $121.7 million from the sale of 4.1 million oz of silver and 39,151 oz gold at average realized prices of $16.29 per oz silver and $1,422 per oz gold. Cash Flow: Q4 cash flow from operations before working capital changes of negative $7.9 million and full year operating cash flow of negative $8.9 million. Full year mine operating cash flow before taxes(1) was $14.9 million. Net Income: Q4 net loss of $17.9 million ($0.13 per share) and full year net loss of $48.1 million ($0.36 per share), due mainly to higher operating costs, increased general administrative and exploration costs and significant depreciation and depletion due to short mine lives. Full year EBITDA(1) was negative $11.1 million.
Balance Sheet: Cash balance of $23.4 million and working capital position of $38.4 million. Only loan liabilities are equipment loans of $8.9 million to upgrade mobile fleet and reduce future operating costs. Raised net $22.8 million in proceeds from the ATM equity offering. Metal Production: Q4 production of 939,511 oz silver and 9,578 oz gold for 1.7 million oz silver equivalent (AgEq). Full year production of 4,018,735 oz silver and 38,907 oz gold for 7.1 million oz AgEq using an 80:1 silver:gold ratio. Operating Costs: Q4 cash cost(1) of $13.63 and full year cash cost of $12.85 per oz silver payable net of gold credits. Q4 all-in sustaining cost (AISC)(1) of $23.20 and full year AISC of $21.19 per oz silver payable net of gold credits. Higher production costs due mainly to underperformance of our mines, increases in power rates, contractor mobilization costs, employee severance, the expensing of capital development due to exhaustion of remaining reserve life at El Cubo and the higher initial operating cost of the El Compas mine
El Compas Achieved Commercial Production: Mine is performing on target and management is focused on reducing costs and improving recoveries. Guanacevi Showed Operational Improvement: Operating costs declined and productivity improved quarter on quarter with rising production, tonnes and grades. Production at Guanacevi improved each quarter and peaked in Q4 to return to positive mine operating earnings and break-even free cash flow. Terronera De-risked and Permitted: Acquired final government permits and continued to advance economic studies. Now considering a full feasibility study to reduce the cost of capital and increase project certainty. Continued Exploration Success: Released positive exploration drill results for Guanacevi, Bolanitos and Parral and commenced drilling on two prospective properties in Chile. (1) 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.
Financial Overview In 2019, revenue decreased 19% to $121.7 million as a result of 27% lower production year on year, due mainly to the scheduled decrease in production, operational under-performance and the suspension of operations at the El Cubo mine, partly offset by higher metal prices compared to 2018. As a result of the lower production, mine operating cash flows, operating cash flows and EBITDA all decreased compared to 2018. Net earnings decreased to a loss of $48.1 million compared to a loss of $12.4 million in 2018.
Consolidated production costs increased due to operational challenges at the Guanacevi and Bolanitos mines and the suspension of the El Cubo operations due to the exhaustion of reserves. A Company-wide review of the mining operations at the end of Q1, 2019 identified several deficiencies in the operating performance at each mine-site. As a result, management initiated multiple remedial measures at Guanacevi in Q2, 2019 and Bolanitos and El Compas in Q3, 2019, including changes to mine-site management, contractors and supervision, renting used mobile equipment and leasing new mining equipment, revising the 2019 mine plans, and reducing the work force.
The goals of the remedial actions were to reduce operating costs and generate free cash flow at current metal prices. Management notes that these actions started to have a positive impact on mine operating performance in Q4, 2019, but the full benefit of these initiatives is expected to be realized in 2020. The Company incurred significant one-time expenditures (eg. severance payments for down-sizing the work force, down-payments for new mining equipment) which also negatively impacted the Company’s financial performance in 2019.
The complete financial statements and Management’s Discussion & Analysis can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All shareholders can receive a hard copy of the Company’s complete audited financial statements free of charge upon request. All amounts are reported in US$.
Financial Results (Consolidated Statement of Operations Appended Below)
For the year ended December 31, 2019, the Company generated revenue totaling $121.7 million (2018 - $150.5 million). During the year, the Company sold 4,054,652 silver oz sold and 39,151 oz gold at realized prices of $16.29 and $1,422 per oz respectively, compared to sales of 5,461,197 oz silver and 51,318 oz gold at realized prices of $15.65 and $1,267 per oz respectively in 2018.
After cost of sales of $139.1 million (2018 - $147.0 million), mine operating loss amounted to a $17.4 million (2018 – earnings of $3.5 million) from mining and milling operations in Mexico. The 5% decrease in cost of sales is a result of lower consolidated production offset by higher power costs due to higher electrical rates, mobilization costs for contractors, severance and the expensing of development expenditures at El Cubo due to the estimate reserve life.
Excluding depreciation and depletion of $31.5 million (2018 - $38.4 million), stock-based compensation of $0.2 million (2018- $0.1 million recovery) and the inventory write off of $0.6 million (2018- $2.0 million) mine operating cash flow before taxes was $14.9 million in 2019 (2018 – $43.9 million). Operating losses were $44.0 million (2018 – loss of $17.5 million) after exploration expenditures of $12.0 million (2018 – $12.4 million), general and administrative expense of $10.0 million (2018 – $8.6 million) and severance of $4.6 million. Net loss amounted to $48.1 million (loss of $0.36 per share) compared to a net loss of $12.4 million ($0.10 per share) in 2019.
Current income tax expense decreased to $2.7 million (2018 – $4.5 million), while a deferred income tax expense of $1.3 million was recognized due to increased valuation allowance against loss carry forwards (2018 –recovery of $9.7 million).
Direct production costs per tonne in 2019 increased 28% compared to 2018, primarily due to the reduction in mine output. Higher production costs also included higher power costs due to increased electrical rates, mobilization costs for contractors, severance, the expensing of development expenditures due to the estimated remaining reserve life at El Cubo and the addition of the initial higher cost of the El Compas operation which has been in commercial production since March 2019.
For the year ended December 31, 2019, direct production costs were $110.09 per tonne compared to the revised guided range of $90-$100 per tonne. The lower throughput and higher costs than planned at Guanaceví and Bolanitos, the reduced output from El Cubo and increased waste mined at El Compas drove the higher consolidated direct costs per tonne than guided.
Consolidated cash costs per oz, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute) increased to $12.85 primarily due to higher costs per tonne. All-in sustaining costs (also a non-IFRS measure) which, compared to 2018, increased 37% to $21.19 per oz in 2019. This increase in all‑in sustaining costs was a result of higher operating costs, higher general and administrative costs and significant new investment at the Bolanitos operation, offset by lower exploration and capital expenditures at the El Cubo operation and reduced development compared to previous years at Guanacevi.
Consolidated cash costs, net of gold by-product credits, were guided to be $10.00-$11.00 per oz of silver in 2019. For the year ended December 31, 2019, cash costs, net of gold by-product credits, were $12.85 per oz and cash costs expressed on a co-product basis were $14.18 per oz silver and $1,238 per gold oz. The lower than planned throughput resulted in higher than guided costs per tonne and costs per ounce.
Conference Call
A conference call to discuss these results will be held today, Monday, February 24 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 4069#. 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 Silver – 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 advancing the Terronera mine project towards a development decision 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: Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Email: gmeleger@edrsilver.com
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Post by Entendance on Feb 24, 2020 17:15:56 GMT -5
Endeavour Silver Corp. (NYSE:EXK) Q4 2019Results Earnings Conference Call February 24, 2020 Galina Meleger - Director of Investor Relations Brad Cooke - Chief Executive Officer Godfrey Walton - President and Chief Operating Officer Dan Dickson - Chief Financial Officer Joseph Reagor - ROTH Capital Partners Chris Thompson - PI Financial
Galina Meleger, Director of Investor RelationsGood morning, everyone. And welcome to the Endeavour Silver 2019 fourth quarter and year-end financial results conference call. With me on the line today we have the company's Chief Executive Officer, Brad Cooke; our Chief Financial Officer, Dan Dickson and our Chief Operating Officer, Godfrey Walton. Before we get started, I'm required to remind you that certain statements on today's call will contain forward-looking information within the meaning of applicable securities laws. These may include statements regarding Endeavour's anticipated performance in 2020 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. So on behalf of Endeavour Silver, I'd like to thank you again for joining our call. And I'll now turn it over to our CEO, Brad Cooke. Brad Cooke, Chief Executive OfficerThank you, Galina. And welcome everyone to our year-end financials call. A pretty mixed bag 2019, which really was our most challenging in our 15-year history, both operationally and financially. Our financial performance last year was negatively impacted by significant operating issues and higher costs at each of the mine. As a result, our gross revenue declined to $121.7 million on the year based on the sale of 4.1 million ounces of silver and 39,000 ounces of gold. Our cash flow declined to negative $8.9 million and we recorded a net year loss of $48.1 million. The losses were mainly due to the accumulation of higher than historic operating costs, higher general and administrative costs, higher exploration costs and very significant depreciation depletion charges due to our short mine lives. We were able to come out of the year with a relatively clean balance sheet of $23.4 million of cash and $38.4 million of working capital and the only term liabilities are related to loans for equipment. Our metal production was 4 million ounces of silver and 39,000 ounces of gold and our operating costs for the year were on a cash basis $12.85 per ounce of silver net of the gold credits and the all-in sustaining costs were $21.19 per ounce of silver net of the gold credits. So that was a pretty tough year. Our response to a terrible start to the year last year was basically sweeping changes throughout all of our operations. And we literally cleaned house, so we have new site management at each of the operations. We purchased or leased and also rented new equipment so that we could have full equipment availability. We changed the mine plans, which unfortunately put us behind the [eight-wall] in terms of our mine developments compared to the original plans. And so we had a significantly higher capital investment last year due to the change of mine plans, the accelerated mine development to play catch-up and the new equipment. But as a result of all that and we had layoffs, we also closed the mine, El Cubo, on November 30th. So quite an accumulation of bad news last year, but we did all the changes to set up a much, much better year this year. And so now if we turn our attention to looking forward, I think it's safe to say that Guanacevi, which was really our dog last year, should be our shining star this year. The changes have already taken route. We've seen the throughputs in the plant climb quarter-on-quarter for three consecutive quarters and still climbing. We expect to hit the plant capacity by the end of this quarter. And of course, running more tonnes through the plant reduces our unit costs, and we expect to get to profitability this quarter on Guanacevi. The Guanacevi has successfully survived the downturn. The changes are working. The turnaround is nearing completion. Bolanitos we didn't do the clean sweep until the third quarter last year. So it's trailing Guanacevi in terms of its turnaround by about two quarters, and it is still in an accelerated mine development mode here in the first quarter. We're mining lower than planned grade right now, because we don't have access to higher grades until the end of the quarter, early second quarter. But we do expect by the end of the second quarter that Bolanitos II will have finished its turnaround phase and get back to something resembling normal operations, because it was for 10 years our most profitable mine and we expect it to return to a profitable state. El Compass our third mine was only commissioned at the end of March last year and has achieved steady state. So it's not that material to our smallest mine, but at least it's chugging along and doesn't need a whole lot of attention. Turning to our development portfolio. Terronera, we spent most of last year going through continued engineering studies, optimization work, de-risking work. We got fully permitted in June of last year and we've just hired recently a Project Manager to build Terronera. So the only barrier really remaining now is appropriate debt financing needed to push that project forward. We still have to receive the final update on our pre-feasibility study and that's coming later this quarter. We will then ask our Project Manager to do a full internal review and only at that time will we announce our next steps on Terronera. And last but not least, we did enjoy significant exploration results from Guanacevi, Bolanitos and Parral last year, and we actually commenced drilling on our portfolio of world-class prospects in Chile. So all-in-all we did enjoy some success in 2019, notwithstanding the other challenges. We achieved commercial production at our new El Compas mine. We did succeed in turning around Guanacevi. Bolanitos is showing clearly that it's in the middle of its turnaround. Permitting was achieved on Terronera and we're continuing to focus on not only replacing reserves but expanding our resources through our exploration programs. I think our outlook for this year is a lot more positive. We're still only guiding pretty much breakeven operations on an all-in basis. But given that we still have almost two quarters of turnaround yet to come on Bolanitos, I think we're happy with that achievement and we do see Guanacevi and Bolanitos will be our core assets for several years to come as we go forward, generating free cash flow. Our modeling this year was at $17 lower, so the projections I made on breakeven for the year are based on $17 silver and anything above that is obviously gravy. Joseph Reagor, ROTH Capital PartnersI guess first thing, just thinking about the overall process of the turnaround that you guys are in. Is may be feeling of what inning you're in and maybe what steps are left to get you to the finish line with these mines?Brad CookeGiven we started the turnaround at Guanacevi in April I think it's safe to say we're pretty close to the ninth inning on that one. But Godfrey where would you say we're at on Bolanitos?
Godfrey Walton, President and Chief Operating Officer I would say we're probably around about the fourth to fifth inning in Bolanitos. We still have a lot of work to do ahead of us.Joseph ReagorAnd then further on Bolanitos with obviously your resource grade is quite a bit higher than the production grade expectations? Is this related to more towards mine sequencing, is it related to the issues with the high arsenic ore, and what can be done to kind of bring the average grade up closer to resource grade? Godfrey WaltonLast year, we had a lot of issues with the arsenic and we're looking at the plant and also at the mine is just how we could sequence that properly. I think we've got through that, we found some solutions in the plant and we'll also change where we're actually mining in the mine. So that's changing mine plan, changing the plant processing. At this point, we're a little bit behind where we should be in development. And so once we can get back on track on the development, I think you'll find that the grades will come back and be closer to our reserve resource grades. Brad CookeAnd Joe, specifically it was the arsenic issue that forced us to change the mine plan, because the concentrate off takers once we saw more than 1% arsenic in the cons, they basically said we're not going to take that. So we actually had to stop mining our main stope for 2019 and try and quickly access other stopes which were lower grade and of course falling throughput, falling grades, higher unit costs, we made all of the other changes in Q3. So new management, new equipments, new mine plan and we're only halfway through this new mine plan. We're still starving for high-grade and only mine development, accelerated mine development will get us back on plan. And so that's why I said look to the end of Q2 for Bolañitos to emerge from this process. Joseph ReagorAnd then one final one, if I could, just on the debt financing for Terronera. Can you give us any additional details of what you think that might look like given things keep changing in the overall market? Brad CookeWe were invited to look at the eurobond market last year and we spent a lot of time and money looking at an offering of $100 million bond offering. As it turns out the broker didn't clearly understand what the market was prepared to do for us and so we didn't do that deal. And we're back looking at really two things, either some consortium of secured debt, subordinated debt and/or convertible debt, or the possibility to just go to full feasibility to reduce our cost of capital. We already have an estimate that it could be done this year and for not a big cost. Well that's jumping ahead and we want our Project Manager to really do a full top to bottom review of Terronera and come back to us this quarter with his own personal recommendations. We know we have a GAAP analysis on things that still haven't been optimized. We know that the CapEx seems high compared to what we did at El Cubo seven years ago. So there is still some work to do on final optimization and the feasibility study might be the path to that, but let's wait until we get his recommendations. Chris Thompson, PI FinancialI just want to dig into some details here, just looking at the operations. And just correct me if I'm wrong. But I wanted to, I guess you're currently producing at about a 1,000 tonne a day in the Q4, the intention is to pick that up, so about 1,200 tonne a day. And your costs right now are about $132 per tonne milled. When can we see the turnaround? Can you be a little bit more specific on a quarter?Dan Dickson, Chief Financial OfficerChris, Dan here. We had a direct production costs in 2019 about $135 per tonne. I think we've touched on this previously even with yourself and on previous calls, historically, we've been down in the $95 to $100 range. Never thought we'd get there. Some of the things that went through on Q4 were still $132 despite getting up to 1,000 tonnes per day, just some additional costs and our mobilization. We've had some success at the Porvenir Cuatro extension land that we acquired or concessioned that rates we acquired from a neighbor of ours, Frisco. So we ended up expensing a lot of development into P4E, because we didn't have reserves and resources there. As of December 31st, we ended up having a total resource base of 495,000 tonnes per day. So we'll be able to capitalize those developments going forward. And what we've already guided out in our 2020 guidance is the cash costs and ultimately consolidated direct costs per tonne. And inside that direct cost per tonne kind of back down to the $110 range, which is what we've seen historically. So we expect that to come. Now we do have a royalty on the P4 extension with Frisco that's going to drive up our operating costs a little bit if we end up doing more production out of there, but ultimately the margins out of that area be significantly higher than those additional costs.Chris ThompsonI'm going to ask the same sort of question for Bolanitos, Dan, I think we have discussed this before but just a little -- I mean, where do we stand on the tonnes and where do we stand on the costs there? I know there are little -- I guess, you're a little short on there, is it 1,250 tonnes a day expectation there for this year at some point and then your costs are still a little high here?Dan DicksonYes. No, absolutely, and you'll see at Bolanitos and anyone that's followed us, will see from Q1 to Q4 our costs rose each quarter at Bolanitos and ultimately, we ended up at the $80 mark, which is the highest in the history of Bolanitos. Historically, we've always run in the mid 60s kind of reached into the 70s here and there, but ultimately drove back down into the $65, $68. On an absolute like gross basis we spent actually a little bit less than we budgeted in 2019, but ultimately, again it comes down to how many tonnes are going through the plant and driving that. And we dipped to below 1,000 tonnes per day in 2019. I think in Q3, we were just over 800 in Q4 we are close to 900, but ultimately not at that 1,000 tonne or 1,100 tonne average which we expected last year. Q2 or Q3, we should be hitting the 1,200 tonne, 1,250 tonne, and ultimately we budgeted out about 1,100 tonnes per day over the course of the year and that's going to drive us back down into the low 70s and ultimately hopefully into the high 60s for 2020.Chris ThompsonAnd then just I guess finally on Compas, you seem to be there on the tonnes, correct me if I'm wrong. But I guess 250 tonne per day mark there but costs are -- I mean, what is the current comparable, what do you see as far as steady state sort of operating costs per tonne? Dan DicksonOriginally in our economic study, we are always around $110 range. This year we will be between $110 and $120 is what we expect. I mean our first nine months of production at Compas wasn't as smooth maybe as we hope, we got to that throughput but there's always these little issues that we're working through with any new mine. We did switch out the contractor halfway through the year, their mobilization fees with that. And we are going from a cut and fill method to a semi-long haul method in 2020, ultimately reducing contractors and increasing employee operated from the mine site. We did a lot of still development in 2019 so we'll be moving more to regular like I say, semi-long hauling which should benefit us and just less troubleshooting. We've moved gentlemen out of the plants as well and we think we have a team in place now that we can operate where we expected to operate from our economic studies, going into this operation. Brad CookeThank you, operator and thanks all for tuning in today. We obviously had a challenging year last year. We hope that this is the last of the bad news we have to report. And as we go forward, shifting our marks for this year, we feel is critically important to seeing the stock perform. We have many other drivers of value but clearly, bouncing back from last year's operating underperformance is tops of our list. Secondly, obviously, we have the best organic growth profile in the silver sector and getting Terronera through the next steps and through the debt financing, so we can break ground would be to create value for stockholders, both short and long-term. And then ultimately and the latter half of this year, we hope to get back to drilling in Chile where we have world-class prospects. And the idea in Chile is that instead of finding more relatively small high grade ore bodies as we've done in Mexico, our attempts in Chile are to try and crack open a game changer discovery, if you will, something that would secure long-term mine life for the company. So we are looking optimistically at 2020 and then we certainly have a tailwind in the metal prices. Thank you all for tuning in and that's all from me.
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Post by Entendance on Mar 18, 2020 8:23:49 GMT -5
Endeavour Silver Presentation PDF
March 18, 2020 Endeavour Silver Implements Plans to Minimize COVID-19 Risks; Initiates Internal Review of Terronera Prefeasibility Study VANCOUVER, British Columbia, March 18, 2020
Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) advises that it has implemented plans to minimize the risks of the COVID-19 virus, both to employees and to the business. To date, there have been no known or suspected cases of COVID-19 reported at any of the Company’s work places in Canada, Mexico and Chile. At each site, Endeavour is following government health protocols and is closely monitoring the situation with local health authorities. The Company has posted health advisories to educate employees about the COVID-19 symptoms, best practices to avoid catching the virus, and procedures to follow if symptoms are experienced. Bradford Cooke, Endeavour CEO, commented, “During these turbulent times, we are fully committed to reducing the health risk to our employees and any potential disruptions to our business. We will continue to work proactively to protect the health of our employees, local stakeholders and our communities as we navigate the current situation.” Endeavour has initiated the following health and business precautions: Encouraging social distancing (minimum 2 meters) and minimizing interpersonal contacts where possible Encouraging regular and thorough hand cleansing Cancelled all non-essential travel in favour of video conferencing At the head office, working from home until further notice At the operations, extra cleaning in common and food service areas At the operations, all workers will be screened for temperature on arrival at the gates Any employees experiencing symptoms and or a temperature of +38*C are immediately sent home to self quarantine and report to the health authority Back-up plans have been created for certain key jobs to ensure continuity of work Educating contractors and suppliers similar to employees Back-up plans if a contractor or supplier cannot perform their duties Increasing critical supplies and spare parts inventories to minimum three months There have been no business restrictions to date in Mexico and no disruptions to either metal sales or supply chains for the Company’s operations.
Terronera Prefeasibility Study The Company also announces that it has received an economic summary of the updated pre-feasibility study (PFS) for the Terronera silver-gold mine project in Jalisco, Mexico. Significant changes were made to the operations plan, capital and operating costs compared to the previous PFS and as a result, although still positive, the new PFS returned less robust economics compared to the prior PFS. Endeavour’s new Director of Project Development is conducting a complete review of both studies in order to assess all assumptions and optimize the project design and economics for an internal updated prefeasibility study prior to proceeding to a full independent feasibility study. Endeavour plans to provide a further update of the Terronera Project within the next three months. Bradford Cooke, Endeavour CEO, commented further, “The Terronera Project has the potential to become our largest, lowest cost, and longest life mine. We’re disappointed the latest draft PFS economics differ from the prior PFS economics. As a result, we have decided to reconceptualize the project using our inhouse expertise so that Terronera can become a model for our future mines.” About Endeavour Silver
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 advancing the Terronera mine project towards a development decision 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 Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Email: gmeleger@edrsilver.com
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Post by Entendance on Mar 23, 2020 11:27:50 GMT -5
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Post by Entendance on Apr 7, 2020 5:56:53 GMT -5
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Post by Entendance on Apr 9, 2020 7:18:54 GMT -5
VANCOUVER, British Columbia, April 09, 2020 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) reports production of 857,659 silver ounces (oz) and 8,476 gold oz in Q1, 2020, for silver equivalent (“AgEq”) production of 1.5 million oz at an 80:1 silver:gold ratio (previous) or 1.8 million oz at a 110:1 ratio (current). Subsequent to quarter-end, mine operations were suspended, from April 1 until April 30, as mandated by the Mexican government to halt the spread of the COVID-19 pandemic. Only essential personnel remain at the mine sites to maintain safety, security and equipment. As the ultimate impact of the suspension period is uncertain, Endeavour withdrew its 2020 production and cost guidance until further notice.
2020 First Quarter Highlights Production In Line With Guidance: Consolidated Q1, 2020 silver and gold production were in line with 2020 guidance prior to suspension. The gold price averaged well above plan ($1450 per oz) but silver price averaged well below plan ($17 per oz) during the quarter. Guanacevi Outperformed Plan: Processed tonnes, silver and gold grade and recoveries were all well above plan. The operational turn-around and transition to mining the new, higher grade El Curso, Milache and SCS orebodies neared completion in Q1, 2020. Bolanitos Underperformed Plan: Processed tonnes, silver grade and gold recovery were below plan, partly offset by flat gold grade and higher silver recovery compared to plan. The operational turn-around and transition to mining the new, higher grade San Miguel and Melladito orebodies is well advanced but requires approximately three more months of mine development to complete. El Compas Close to Plan: Processed tonnes were higher than plan but silver and gold grades and recoveries were below plan. Throughput, grades and recoveries each improved in March compared to the first two months of the year. Metal Sales and Inventories: Sold 665,500 oz silver and 7,454 oz gold, held 268,775 oz silver and 754 oz gold of bullion inventory and 10,545 oz silver and 699 oz gold in concentrate inventory. Updated Reserves and Resources: Measured and indicated resources increased at Guanacevi and Parral and inferred resources increased at Guanacevi, Bolanitos and Parral. Proven and probable reserves declined at Guanacevi but increased at Bolanitos and El Compas (see news release dated January 29, 2020). Appointed Director, Project Development: Ernesto Lima, P.Eng., MBA, D.M., was appointed to oversee the development of new mine projects in Mexico. Mr. Lima is a professional civil engineer with 26 years of experience in the mining industry and has planned and executed several large precious metal mine construction projects. Advanced Terronera Prefeasibility Study (PFS): Engineering consultants prepared an economic summary of an updated pre-feasibility study based on significant changes to the prior PFS which resulted in less robust economics. Endeavour is optimizing it for an updated economic study with more robust economics signed off by an independent engineering group. Implemented COVID-19 Plan: Endeavour implemented plans to minimize the health risks of the COVID-19 virus, both to employees and to the business. To date, there have been no confirmed cases of COVID-19 reported at any of the Company’s work places in Canada, Mexico and Chile.
Bradford Cooke, Endeavour CEO, commented, “Even though our foremost concerns at this time are the health of our employees, safely managing the COVID-19 pandemic risk and the care and maintenance of our mining operations, Endeavour delivered solid Q1, 2020 performance at our mining operations. We met production guidance prior to suspension, Guanacevi neared completion of its operational turn-around and Bolanitos and El Compas continued to make good progress.
“We welcomed Ernesto Lima to our management team and continued to optimize and de-risk the Terronera project, which has the potential to be our next core asset and our largest, lowest cost mine. At Parral, a 2,000 tonne bulk sample was mined from the Sierra Plata mine on the Veta Colorada vein and arrangements were made to have it processed by a local toll mill.
“I am confident that we have the experience and ability to navigate these challenging times and emerge a stronger Company from it. We look forward to the time when we can all get back to work.”
Mine Operations Consolidated silver and gold production were both lower in Q1, 2020 compared to Q1, 2019 due to the suspension of mining operations at the El Cubo mine in Q4, 2109. Excluding 2019 El Cubo production, production increased significantly due to improved throughput and ore grades at Guanacevi and commercial production at El Compas, partly offset by lower production at Bolanitos due to lower throughput and grades.
Guanacevi processed tonnes, silver and gold grades and gold recovery were all higher compared to Q1, 2019 and well above plan. Silver recovery was lower than Q1, 2019 but higher than plan. Production was significantly above plan as the operational turn-around and the transition to mining the new, higher grade El Curso, Milache and SCS orebodies neared completion in Q1, 2020. Subsequent to quarter-end, two refurbished cone crushers were installed which should allow the plant to ramp up to its 1200 tpd capacity during H2, 2020.
Bolanitos processed tonnes, silver and gold grades and recoveries were all lower compared to Q1, 2019 and below plan due to lack of access to higher grade areas and excess dilution. Production was significantly below plan due to slow mine development in two new areas. Accelerated mine development improved ore access and better mining practices reduced dilution in March. The operational turn-around and transition to mining the new, higher grade San Miguel and Melladito orebodies is well advanced but requires approximately three more months of mine development after the suspension period ends to complete.
El Compas production in Q1, 2019 was limited to 3,790 tonnes of development ore so not comparable to full production in Q1, 2020. Production was close to plan with higher throughput offset by lower grades. Management started replacing the mining contractor with new mine employees in March and adjusting the mining methods to reduce dilution going forward. Throughput, grades and recoveries each started improving in March compared to the first two months of the year. The transition from cut and fill mining to employee long hole mining should be complete in H2, 2020.
Development Projects The Company received an economic summary of an updated pre-feasibility study (PFS) for the Terronera silver-gold mine project in Jalisco, Mexico. Significant changes were made to the operations plan, capital and operating costs compared to the previous PFS (see news release dated March 18, 2020) and as a result, although still positive, the economic summary returned less robust economics compared to the prior PFS.
Endeavour is now reconceptualizing the project in-house, working with an independent engineering group, to complete a detailed review in order to assess all assumptions and optimize all aspects of the project design and economics for an updated economic study with more robust economics signed off by the independent engineering group. Management will then consider initiating an independent feasibility study.
At Parral, exploration was temporarily suspended but a 2,000 tonne bulk sample was mined from the Sierra Plata mine on the Veta Colorada vein and arrangements were made to have it processed by a local toll mill.
Exploration Projects Even though all exploration projects were temporarily suspended in March, good progress was made exploring new extensions of high-grade orebodies at Guanacevi and Bolanitos. Drilling at El Curso intersected a possible extension of the Milache orebody and drilling at Ave Maria intersected a possible extension of the Melladito orebody.
Liquidity Update The Company currently has the financial capacity to meet its current obligations and conduct an orderly re-start of operations when the suspension lifts. The Company has no long-term debt other than $8 million in equipment term loans, subject to minimal covenants and secured by the equipment, otherwise all other creditors are unsecured. There are two macro economic factors benefiting the Company at this time. The current gold price significantly exceeds the $1450 per oz gold price used for the 2020 mine plans and the Mexican peso exchange rate has depreciated over 25% since January. The Company estimates it will spend $2.3-$2.8 million on care and maintenance, general and administration and base salaries for the month of April. If the suspension extends beyond April 30th, management will look to reduce costs. The COVID-19 pandemic timeline and related suspension period are still uncertain.
Production Highlights for Q1, 2020 & Production Tables for First Quarter, 2020 by Mine here
Video Webcast and Q&A - Q1, 2020 Corporate Update A video webcast to discuss the Q1, 2020 Results is scheduled for Tuesday April 14, 2020, at 10:00 a.m. Pacific time (1:00pm Eastern time).
Those interested in participating, are invited to join online,
The video update will discuss the actions that Endeavour Silver is taking to preserve and strengthen shareholder value during the COVID-19 crisis.
A Question and Answer period will follow. Participants can submit a question through the webcast webform via “Submit a Question” button. The PowerPoint presentation will also be available on the homepage of the Company’s website and under the Investor Relations, Events section. The webcast will be archived and made available for replay the Company's website, under the Investor Relations, Events section.
Release of First Quarter, 2020 Financial Results and Conference CallThe 2020 First Quarter Financial Results will be released before market on Tuesday, May 12, 2020 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: 1-800-319-4610Local Vancouver: 604-638-5340Outside of Canada and the US: +604-638-5340A 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 4368#. 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 and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision 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.
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Post by Entendance on Apr 14, 2020 7:26:52 GMT -5
Reminder
Video Webcast and Q&A - Q1, 2020 Corporate Update
A video webcast to discuss the Q1, 2020 Results is scheduled for Tuesday April 14, 2020, at 10:00 a.m. Pacific time (1:00pm Eastern time). Those interested in participating, are invited to join online, approximately 5 minutes prior to the start at: services.choruscall.ca/links/edrsilver20200414.html The video update will discuss the actions that Endeavour Silver is taking to preserve and strengthen shareholder value during the COVID-19 crisis.
A Question and Answer period will follow. Participants can submit a question through the webcast webform via “Submit a Question” button. The PowerPoint presentation will also be available on the homepage of the Company’s website and under the Investor Relations, Events section. The webcast will be archived and made available for replay the Company's website, under the Investor Relations, Events section.
Release of First Quarter, 2020 Financial Results and Conference Call
The 2020 First Quarter Financial Results will be released before market on Tuesday, May 12, 2020 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 4368#. 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.
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Post by Entendance on Apr 16, 2020 4:05:34 GMT -5
View the Q1 Corporate Update Video Webcast Replay for those who missed it here
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Post by Entendance on Apr 22, 2020 3:22:09 GMT -5
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Post by Entendance on Apr 30, 2020 3:24:50 GMT -5
VANCOUVER, British Columbia, April 29, 2020 -- Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) announces that the Mexican government has decreed an extension of the suspension of all non-essential activities until May 30, 2020. However, the suspension of activities will cease to be applicable as of May 18, 2020 in municipalities that present low or no known cases or transmission of the SARS-CoV2 virus, subject to criteria to be defined by the Secretariat of Health.
Mining was previously deemed by the Mexican health authority to be a non-essential activity, leading Endeavour to suspend its three mining operations on April 1, 2020. However, the Company’s three mines are located in municipalities with low or no transmission of the SARS-CoV2 virus. Therefore, Endeavour now anticipates reopening its mines around May 18, 2020, pursuant to the government decree. The Company has also filed applications for exemptions to reopen earlier if feasible and permitted.
Bradford Cooke, CEO, commented, “We look forward to bringing our mines back to production in a safe and orderly manner. Naturally, we will continue to apply all aspects of our coronavirus plan to maintain the health of our people and the local communities.”
“We also filed a new shelf prospectus in the USA as our previous one was due to expire. The new shelf prospectus has a two-year life and expedites our access the Canadian and US capital markets for debt and equity financings. For example, it should facilitate the financing we need to construct the high grade Terronera project which has the potential to become our next core asset.”
Base Shelf ProspectusEndeavour also announces the filing of a final short form base shelf prospectus (“Prospectus”) to provide the Company with the flexibility to take advantage of debt, convertible debt, equity and other financing opportunities that may arise during the 25‑month effective period of the Prospectus. The Company’s existing base shelf prospectus dated April 10, 2018 has been withdrawn.
The Prospectus has been filed in each of the provinces and territories of Canada, except Quebec, and a corresponding shelf registration statement on Form F‑10 (“Registration Statement”) was also filed with the United States Securities and Exchange Commission (“SEC”). These filings enable offerings of common shares, warrants, subscription receipts, debt and convertible debt securities or units of up to an aggregate initial offering price of CAD$150 million at any time during the period the Prospectus is effective.
Copies of the Registration Statement and the Prospectus contained therein can be obtained by contacting Endeavour Silver at Suite 1130‑609 Granville Street, Vancouver, British Columbia V7Y 1G5, Attention: Daniel Dickson, Chief Financial Officer. Copies of the Prospectus and the Registration Statement are also available at www.sedar.com and www.sec.gov, respectively. This press release does not constitute an offer to sell any securities 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. If any securities are offered under the Prospectus or Registration Statement the terms of any such securities and the intended use of any net proceeds will be established at the time of any such offering and will be described in a Prospectus supplement filed with the applicable Canadian securities regulatory authorities and the SEC at the time of any such an offering and would be made available by Endeavour at the above address.About Endeavour Silver – 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 advancing the Terronera mine project towards a development decision 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.
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Post by Entendance on May 8, 2020 6:40:28 GMT -5
Endeavour Silver Reports Financial Results for the First Quarter 2020; Earnings Conference Call at 10am PDT (1pm EDT) Today May 8, 2020 VANCOUVER, British Columbia -- Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) released its financial results today for the three months ended March 31, 2020. The Company operates three silver-gold mines in Mexico: the Guanaceví mine in Durango state, the Bolañitos mine in Guanajuato state and the El Compas mine in Zacatecas state. Bradford Cooke, Endeavour CEO, commented, “We are gratified to see that our operational performance improved significantly in the First Quarter, compared to both Q1 and Q4, 2019, in-line with our guidance prior to the government mandated suspension of mining operations. Notably, consolidated cash cost declined 37% year on year, reflecting the success of our operational turn-around and transition to higher grade orebodies at Guanacevi. All-in sustaining cost fell 5%, reflecting the elevated sustaining capex we invested to achieve a similar turn-around at Bolanitos over the next three months.” “Almost half of our net loss was due to the 25% devaluation of the Mexican peso, which devalued our receivables and caused a deferred income tax expense. Other extraordinary items included elevated care and maintenance costs at El Cubo which will decline going forward, and high mine depletion due to short reserve lives. Since the Mexican government has decreed that suspended businesses located in municipalities with low or no COVID-19 cases can start up again May 18, and each of our three mines are located in such municipalities, we are looking forward to putting our mines back into production in May.”
2020 First Quarter Highlights Revenue: Total $21.9 million from the sale of 665,500 oz of silver and 7,454 oz gold at average realized prices of $15.33 per oz silver and $1,633 per oz gold. Cash Flow: Negative $5.0 million cash flow from operations before working capital changes as the Company accumulated finished goods, invested in exploration activities and incurred a significant foreign exchange expense from the depreciation of the Mexican peso. Net Income: Loss $15.9 million ($0.11 per share) due to reduced sales, increased depreciation and depletion related to current short reserve lives and significant foreign exchange expense as the depreciation of the Mexican peso impacts the value of VAT receivables and other working capital accounts. EBITDA(1) was negative $6.7 million. Balance Sheet: Cash position $15.0 million and working capital $27.2 million. Only term liabilities are equipment loans of $11.5 million to upgrade mobile fleet. Metal Production: Produced 857,659 oz silver and 8,476 oz gold, in line with guidance prior to government mandated suspension of mining operations, for 1.5 million oz silver equivalent (AgEq) at an 80:1 silver:gold ratio (January) or 1.8 million oz AgEq at 110:1 ratio (current). Operating Costs: Cash cost(1) $7.85 per oz payable silver and all-in sustaining cost (AISC)(1) $18.38 per oz payable silver, both net of gold credits. Cash cost was substantially lower than Q1, 2019 due to reduced operating costs at Guanacevi, partly offset by increased operating costs at El Compas and the suspension of El Cubo. AISC was slightly lower than Q1, 2019 a result of lower operating costs partly offset by, increased exploration costs and elevated capital expenditures at Guanaceví and Bolanitos. Guanacevi Outperformed Plan: Operating costs declined and productivity improved with rising production, tonnes and grades due to the operational turnaround and transition to mining the new, higher-grade El Curso, Milache and SCS orebodies. Advanced Terronera Project: Conducting a final PFS optimization in-house working with an independent engineering firm to achieve enhanced economics. Continued Exploration Success: Positive exploration drill results at Guanacevi and Bolanitos (1) 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.
Financial Overview In Q1 2020, revenue decreased 22% to $21.9 million as a result of 18% lower silver equivalent production year on year due the suspension of operations at the El Cubo mine and the accumulation of metal inventory partly offset by higher gold prices compared to 2019. As a result of the lower production, mine operating cash flows, operating cash flows and EBITDA all decreased compared to Q1, 2019. The Company recognized a loss of $15.9 million compared to a loss of $13.3 million in Q1, 2019. Cost of sales for Q1, 2020 was $24.8 million, a decrease of 27% over the cost of sales of $33.8 million for the same period of 2019. The 27% decrease was primarily related to the 20% decrease in tonnes processed, carrying larger finished goods inventory and implementing cost cutting and efficiency measures in 2019. The goals of the 2019 remedial actions were to reduce operating costs and generate free cash flow at current metal prices. Management notes that these actions have had a very positive impact on Guanacevi mine operating performance and a similar turn around is underway but not yet finished at Bolanitos. Management continued to invest in long term viability of the mines with additional equipment purchases, accelerated mine development and increased site exploration. The Company recognized a foreign exchange loss of $4.9 million in Q1, 2020 compared to a foreign exchange loss of $0.4 million in Q1, 2019 due to the depreciation of the Mexican Peso which resulted in lower valuations of peso denominated tax receivables and cash balances. The Mexican Peso depreciated more than 25% due to the global COVID crisis.
Financial Results (Consolidated Statement of Operations Appended Below) For the period ended March 31, 2020, the Company generated net revenue totaling $21.9 million (Q1, 2019 - $28.0 million). During the period, the Company sold 665,500 silver oz sold and 7,454 oz gold at realized prices of $15.33 and $1,633 per oz respectively, compared to sales of 1,069,385 oz silver and 9,559 oz gold at realized prices of $15.50 and $1,315 per oz respectively in the same period of 2019. The Company increased its finished goods silver and gold inventory to 279,320 silver oz and 1,452 gold oz, respectively at March 31, 2020 compared to 95,028 oz silver and 587 oz gold held at December 31, 2019. After cost of sales of $24.8 million (Q1, 2019 - $33.8 million), mine operating losses amounted to a $2.9 million (Q1, 2019 – loss of $5.8 million) from mining and milling operations in Mexico. Excluding depreciation and depletion of $6.0 million (Q1, 2019 - $7.1 million), stock-based compensation of $0.1 million (Q1, 2019- $0.1 million) and the inventory write off of $1.1 million (Q1, 2019- $3.2 million) mine operating cash flow before taxes was $4.3 million in Q1, 2020 (Q1, 2019 – $4.6 million). Operating losses were $8.6 million (Q1, 2019 – loss of $12.2 million) after exploration expenditures of $2.4 million (Q1, 2019 – $2.3 million), general and administrative expense of $2.0 million (Q1, 2019 – $3.0 million) and El Cubo care and maintenance costs of $1.3 million. Net loss amounted to $15.9 million (loss of $0.11 per share) compared to a net loss of $13.3 million (loss of $0.10 per share) in Q1, 2019. Current income tax expense decreased to $0.3 million (Q1 2019 – $0.7 million), while a deferred income tax expense of $1.8 million was recognized due to depreciation the Mexican peso against the US dollar reducing the value of recognized loss carry forwards (Q1 2019 – recovery of $0.4 million). Direct production costs per tonne in Q1, 2020 decreased 4% compared with Q1, 2019 due to improved operating cost at Guanacevi, offset by the higher cost of El Compas and the suspension of El Cubo. Consolidated cash costs per oz, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute) decreased to $7.85 primarily due to lower operating costs per tonne, higher gold grade and the higher realized gold price compared to the same period in 2019. All-in sustaining costs (also a non-IFRS measure) compared to Q1, 2019, decreased 5% to $18.38 per oz in Q1, 2020. This decrease in all‑in sustaining costs was a result of lower operating costs partly offset by increased exploration at each operation and increased capital expenditures at Guanaceví and Bolanitos. The Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis can be viewed on the Company’s website at www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov. All amounts are reported in US$.
Conference Call A conference call to discuss these results will be held today, Friday, May 8 at 10am PDT (1pm 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 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 4368#. 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 owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision 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: Galina Meleger, Director Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Email: gmeleger@edrsilver.com Website: www.edrsilver.com
Bradford Cooke -- Chief Executive Officer Welcome everybody to this conference call on our first quarter financials. I'd like to start by pointing out that the numbers released today show that we're not out of the woods yet, but we did make great strides during the first quarter, both in operations and in our financial performance. Let me explain. From the operational point of view, we were significantly better compared to both the first quarter and the fourth quarter last year. Our Q1 production was actually in general line with our guidance for the year prior to the government-mandated suspension of our mining operations. One of the key takeaways in our operational performance was the sharp decline in our cash cost, 37% down year-on-year. That reflects primarily the success of our operational turnaround and our transition into higher-grade ore bodies at our largest silver mine, Guanacevi. All-in sustaining costs also fell by only 5%, and that reflects the still elevated sustaining capex that we are investing to achieve a similar turnaround at Bolanitos over the next three months to -- compared to what we achieved already at Guanacevi. I should point out that the significant headline net loss, almost half of that can be attributed to foreign exchange event. Basically, the 25% depreciation of the Mexican peso devalued both our peso receivables and caused a deferred income tax expense. Other extraordinary items that hit our bottom line include the still elevated care and maintenance costs at our now closed El Cubo mine in Q1. Those costs will decline going forward. There's really no more severance to be had at Cubo, and there's a significant reduction in security costs coming. We still report high -- a relatively high mine depletion due to our short reserve lives, and we're working through our exploration group to try and extend those reserve lives. Guanacevi has been a success from that point of view. And even though the government shut us down, April 1st, the government has now declared in Mexico that municipalities with lower no COVID-19 cases can look to start-up again May 18th. And since each of our three mines are located in such municipalities, we're now in advanced planning stages to bring our three mines back to production in May. So moving to the first quarter highlights. Metal production was 857,000 ounces of silver and 8,500 ounces of gold. And on an equivalent basis, that's 1.5 million ounces of silver equivalents at an 80:1 ratio, 1.8 million ounces at the current 110:1 ratio, and that drove about $22 million in revenues. Cash flow and net income, as I pointed out were negative, primarily due to the significant foreign exchange expense. Balance sheet at the end of the quarter was $15 million cash, $27 million working capital, long-term liabilities. We have some term loans on equipment. Operating costs, we basically cleared the quarter with a cash cost of $7.85 per ounce of payable silver and the all-in sustaining costs were $18 and change. Couple more quick highlights from the operations. I've already highlighted that Guanacevi, the turnaround is now complete. We are able to tick that box, and what was our largest money loser last year made a small amount of money on a mine site operating basis in Q1. Moving to the development projects. We do expect in June to release the final optimization of our pre-feasibility study and the economics therein, using our in-house expertise as well as an independent engineering firm. So Terronera is advancing steadily. And on the exploration front, we do have some decent drill news coming from both Guanacevi and Bolanitos. We expect those news releases in the coming months. So those are the highlights of the quarter.
Questions and Answers:
Heiko Ihle -- H.C. Wainwright & Co., LLC -- Analyst Hi guys, thanks for taking my questions.
Bradford Cooke -- Chief Executive Officer Hello, Heiko.
Heiko Ihle -- H.C. Wainwright & Co., LLC -- Analyst Hey there. This question may be a bit out there. But I mean, you're talking about higher maintenance costs at El Cubo. How much of a potential, given all the social distancing issues that we're having in the world, is there a way that you can use the workers from Bolanitos to take care of some of that maintenance work and thereby save some costs in order to then also create some distancing that you're probably required to do?
Dan Dickson -- Chief Financial Officer Hey, Heiko, it's Dan. I hope all is well. The main thing in Q1 at El Cubo was just getting all the fleet effectively maintained, raising the mill in the plant, getting things all cleaned up. We haven't gone to close or anything like that. Just kind of putting everything as it is. We also had about $200,000 of severance costs in what we spent at El Cubo and depreciation of the plant, light vehicles, office and IT equipment. So you'll see that care and maintenance costs of Cubo come down significantly going forward. I think we have a staff of about ten security and ten individuals. So a total of 20, 25 people there. Guanajuato or Bolanitos and El Cubo are about 45 minutes away. So that's real social distancing in that context. So now ultimately, the key for us as Cubo going forward is just maintaining security at the site. And monitoring the tailings facility with the town right there. But you're talking about $200,000 for next quarter compared to what we just spent for $1 million.
Bradford Cooke -- Chief Executive Officer And so that with significant reduction includes a reduction in the security staff as well. And Dan's numbers reflect current numbers, right?
Dan Dickson -- Chief Financial Officer Yeah.
Bradford Cooke -- Chief Executive Officer We are still working diligently to find a way to restart Cubo. It does require us to do some land acquisitions and/or exploration. And it's a work-in-progress. So nothing to say on that yet, but that's the whole purpose of continuing to keep Cubo on care and maintenance.
Heiko Ihle -- H.C. Wainwright & Co., LLC -- Analyst Maybe I'm the eternal optimist, but I have a feeling that mine at some point in time will reopen. I don't want to open Pandora's box too much here, but I'll bring it up since you put it into the third paragraph of your earnings release with almost half the net loss being due to the 25% devaluation of the Mexican pesos. At what point in time, if ever, and the answer might be, never. At what point in time would you ever consider hedging some currencies or something, just to avoid future large-scale impacts and swings that -- maybe get taken a little bit out of context by some folks reading earnings releases?
Bradford Cooke -- Chief Executive Officer Well, the peso devaluation is a good news/bad news. It hits our assets, but it's great for our costs. So we don't mind the lower peso at all. And we would not hedge the peso. It would impact our costs. We think the direction of the peso is more and more depreciation relative to the dollar.
Heiko Ihle -- H.C. Wainwright & Co., LLC -- Analyst Okay. So I understand that. But I mean, you might still, at some point in time, things might go the other way for you. And just because you've won so far, it doesn't mean you're going to come out ahead for good now?
Bradford Cooke -- Chief Executive Officer Well, that's a fair question from a conceptual point of view, but from a practical point of view, we've been in Mexico 16 years, and the peso has gone at one direction, and one direction only, it was 10:1 in 2003. It's 25 -- 24:1 right now.
Heiko Ihle -- H.C. Wainwright & Co., LLC -- Analyst Okay. Fair enough, thank you guys, I'll get back in queue.
Bradford Cooke -- Chief Executive Officer Okay, thanks for your questions.
Joseph Reagor -- Roth Capital Partner -- Analyst Good morning guys, thanks for taking my questions as well. I guess, maybe following on Heiko's questions about currency. What percentage of your total cost you think benefit from the weaker peso going forward?
Dan Dickson -- Chief Financial Officer Yes. Dan. Thanks, Joe, for the question. 30% of our costs are directly tied to labor and our cost of sales. So 25% reduction in our labor costs for the foreseeable future can be built in pretty quickly. And then of the remaining 70% of costs, about half of that comes from sourced out of Mexico and tied to the Mexican peso. Eventually, you'll see those costs adjust a lot quicker than what typically you'd see from a labor standpoint. But we generally, we're expecting about 45% to 50% of our costs to be affected by the depreciation of the peso.
Joseph Reagor -- Roth Capital Partner -- Analyst Okay. So in the sense, by Q3, if we stay at this level, we could be looking at a 10% to 12% reduction in costs?
Dan Dickson -- Chief Financial Officer Yes. That's fair.
Bradford Cooke -- Chief Executive Officer Yeah. And keep in mind that most of the depreciation was in the last two weeks of March. So it hit our assets right away, but it hasn't hit our costs yet. It's just hitting our costs now.
Joseph Reagor -- Roth Capital Partner -- Analyst Okay. Then on the COVID-19 front, what should we expect as far as capital spending in Q2? I mean given you guys spend almost half the quarter with your mines shut down. I would anticipate it's a lower capital spend, in that the guide at the beginning of the year for capital spending has probably been reduced in general as well, right?
Dan Dickson -- Chief Financial Officer Yeah. No. That's fair. For the quarter, I mean, ultimately, we still have all the mine development in the plans that we had. Everything is just going to be delayed by six weeks to seven weeks. So in Q1, we spent or had total additions of about $9 million. In Q2, it'll probably be closer to $5 million, just because of the delay of six, seven weeks.
Joseph Reagor -- Roth Capital Partner -- Analyst Okay. Then shifting gears a bit. Guanacevi royalties as a percent of revenue kind of spiked in Q4 last year, and they stayed elevated in Q1 of this year. Is that a reflection of mining from an area where you guys pay a higher royalty? Is that just some kind of short term issue? Or is there something else at work there?
Bradford Cooke -- Chief Executive Officer No, you're exactly right, Joe. It's Brad here. We have a new properties last year called El Curso, and a new discovery that we developed in Q4 and have been producing since late last year. And that particular property has quite a high royalty on it to a Mexican group. Whereas the other portions of the Guanacevi operating unit have much, much lower royalties. So it's just that. We did put an emphasis in Q1 on mining the El Curso areas simply because it's got phenomenally higher grades. But we do also have in our plan this year to go back to a more reasonable mix of Curso versus other ores. Milache, for instance, so we're just about caught up on the mine development. So it should be able to do more percentage tonnes to the plant going forward and Santa Cruz Sur also is in the advanced stages now of development and should also do a higher contribution going forward. Maybe not in Q2, but because we basically spent seven weeks of standing still, but certainly Q3 and onwards.
Joseph Reagor -- Roth Capital Partner -- Analyst Okay. That's helpful. And then last thing. I know you guys used a little bit of the ATM in Q1, a little more to start Q2. What's left available to you guys on that?
Dan Dickson -- Chief Financial Officer We filed a new base shelf. You would have seen it. April 27, they got finalized. That sterilized the remaining amount on that ATM, which was about $500,000. So that ATM program is now over.
Joseph Reagor -- Roth Capital Partner -- Analyst Okay, that's helpful. Thanks guys.
Bradford Cooke -- Chief Executive Officer You're welcome.
Chris Thompson -- PI Financial -- Analyst Hey, good morning guys. Thanks for taking my questions. Yes, look, tough quarter. Got a couple of maybe tough questions here. Firstly, the standby costs, I guess for the three operating mines, Dan, you said $5 million is for the Q2. Is that what we can anticipate the cost to be?
Dan Dickson -- Chief Financial Officer That's not cost. That was capital expenditures for Q2. So on -- in our original guidance for 2020, total capital spend for 2020 was going to be $32 million in Q1. We spent $9 million. Joe's question, just -- asked how much would our cost of capital -- we're going to spend on capital in Q2. Typically, that $32 million is going to be split pretty evenly through the year. So $8 million to $9 million a quarter. And just because we've been shut down for six, seven weeks this quarter, I don't see that spend being larger than the $5 million just for Q2, but that -- we still need to get to that 32%, and maybe that goes into 2021 a little bit, Chris. But that won't change because of COVID. We still have our mine development programs that we have to get done and get accelerated, so we can maintain these production levels.
Chris Thompson -- PI Financial -- Analyst Okay. Thanks for the clarification on that. Just looking at, I guess, Guanacevi and by the way, congratulations for bringing down those costs. You know, obviously, Santa Cruz Sur, Milache coming on stream. You did mention, I guess, in your text, P4E was behind plan. I'm just trying to understand what component of mill feed is that? Is that minor or major?
Bradford Cooke -- Chief Executive Officer So yeah, we'll need to explain that. We use in-house, the extension of a Porvenir Cuatro orebody onto the El Curso property. We call that orebody P4E, Porvenir Cuatro extension. And maybe in Q4, it was still under development, but I don't think we referred to that one being behind plan. Maybe SCS. Maybe, Santa Cruz Sur.
Dan Dickson -- Chief Financial Officer Santa Cruz Sur, we're slightly behind from development standpoint. And that just reflected that. In March, when we saw silver dip into the 12 handle, we focused on increasing production from El Curso, which has higher gold grades and higher silver grades. And then just kind of moved away from Santa Cruz. So we'll pick up the development that go into Santa Cruz and ultimately, what we're looking for, what we originally were looking for and depending where prices go, is basically a-third of our production coming from Santa Cruz Sur, a third coming from Milache and a-third coming from El Curso. And what we've never had in the past -- or I shouldn't say never, what we haven't had in the recent past, it's Guanacevi, Chris. It's just that flexibility. So, as soon as we got stuck in one area, we weren't hitting our tonnage, and in Q1, we're just short of 1,000 tonnes per day. And our goal is to get up to 1,200 tonnes per day. So having Santa Cruz Sur catch-up from development, allows us to hit the 1,200 tonnes per day for the next eight months, so to speak.
Chris Thompson -- PI Financial -- Analyst Okay. Thanks for that. Thanks. And just remind us, what sort of turnaround time are you looking for Bolanitos and El Compas? I mean, they are somewhat delayed, I get it. But obviously, hopefully, following the same track as Guanacevi, but maybe quantify the turnaround time there for us.
Bradford Cooke -- Chief Executive Officer Yeah. We started the turnaround in Guanacevi after the first quarter last year. So it took basically a year. We started the turnaround of Bolanitos in Q3 last year, and it will take about a year. So of course, this quarter was pretty much discounted, but we do expect to break through in Q3.
Chris Thompson -- PI Financial -- Analyst Right. Okay. I'm looking at the depreciating, I'm looking at the dwindling cash position right now, and I'm a little concerned you might not have a luxury of time here for this turnaround. I mean at what point do you actually maybe just dial it back, and just live off Guanacevi. I know it's a tough question, but I have to answer -- ask it.
Dan Dickson -- Chief Financial Officer No. That's a fair question, Chris. I think you'll see once you get through the numbers with Q1, Bolanitos cost per tonne came down to $68.25 or even $68.50, which is an improvement. And we can get lower from that standpoint. And what Bolanitos was short on was tonnes this quarter. And the idea, I think, we came in around 87,000 tonnes, and we want to be up around 100,000 tonnes is in the plan. Ultimately, we have two areas, one, San Miguel, which we discovered last year. We've got about 300 meters more development in there to get that to full capacity and be really contributing at Bolanitos. So we're not far away there. And then we also have a [Indecipherable] we call Melladito, which is about 300 meters away from working. So it needs some development again there, but it will give us flexibility and be able to get into the above the 1,000 tonnes per day to 1,200 tonnes per day later this year. So as Brad touched on it. So we're about three months away from seeing Bolanitos turnaround. We've done a good job from a cost standpoint. Now it just means getting these tonnes to where it historically has been. We're not that far. So that's why we expect, hopefully, by Q3, in middle of Q3 just because of the delay of, like I say, with the COVID delay, but Bolanitos is a lot closer to the turnaround, and it's just hitting that tonnage output now.
Bradford Cooke -- Chief Executive Officer And if I could add, Chris, that the cash costs are already down at Bolanitos. And the reason is that the operational turnaround, the changes in management, the change of mine methods, the addition of new equipment, all of that's had an impact. But we still have elevated capital investing, which is the accelerated mine development at San Miguel and Melladito. That 300 meters remaining to do at San Miguel is not to get to the ore. We're already at the ore. Now we have to drive sills and raises and ramps and that -- it'll be fully ready for production. So not that much time left to, and not that much capital investment left to, to get Bolanitos, get that up and running in the proper way.
Dan Dickson -- Chief Financial Officer On the second part of your question with regards to El Compas, maybe it's not as easy to see for Compas. Compas is a very small mine contributor for us. With it being 1 million silver ounces. And costs were elevated in Q1. We made a change. We've been moving from contractors to employees. So we did onboarding and training in March and got rid of the contract of those mining underground. And our mine tonnes actually dipped significantly in March, but we expect that to come back up, now that our staff was also in place and ready to go. So hopefully, here in late May, we can get going. We can ramp up relatively quickly at Compas. And if we can hit the tonnes and grade and then our costs should -- we again, seems things that it's hard to see in Q1, but those costs are going to come down significantly with the contractors out of the mine.
Chris Thompson -- PI Financial -- Analyst Right. Okay. And then Dan, maybe the final question for you here. Your equipment leases and loans, did you push those out by three months?
Dan Dickson -- Chief Financial Officer Yeah, we have $11.5 million of total equipment loans, and it's all to do with the turnaround and refreshing our fleet. And we went to Sandvik. And just to be careful, at the start of the COVID-19 and the shutdown April 1st, the government had come out and said, shut down until April 30th. But as we've seen globally, those goalposts have continued to change. And we want just to protect ourselves. So with Sandvik, we approached them immediately, and they're very happy to work with us on it. And we just delayed principal payments by three months. So we didn't have to pay any of that until August, and it just gives us a little bit of flexibility. Now I think we're probably being too conservative. Those are in place now, as is. And with us, hopefully, getting going here, May 18th we'll be fine. But at the time, we're looking for any alternatives to save cash, in case this would have gone through the summer in Mexico.
Chris Thompson -- PI Financial -- Analyst All right, OK. Guys, thank you very much.
Dan Dickson -- Chief Financial Officer Thanks for your questions.
Craig Hutchison -- TD Bank -- Analyst Hi, guys. Thanks for taking my call. I think most of my questions have been answered. But I was just wondering, once you guys get the green light from the Mexican government to go ahead and restart these operations, how long do you think it's going to take to kind of get your back up to full run capacity?
Dan Dickson -- Chief Financial Officer Godfrey, if you're on the line, do you want to handle that one? Sure. Craig, thanks for your question. We are doing a little bit of prep work to make the start-up a little bit faster. But I think it's going to be probably, say, three weeks to get up and running properly. We have a few maintenance issues that we've taken care of during the shutdown. And so Guanacevi should come up very, very quickly, but Bolanitos and Compas should be probably the slower ones coming up. So Compas maybe more like, three weeks to four weeks? Bolanitos, probably two to four. And Guanacevi, I think it'll be up and running in about two weeks.
Craig Hutchison -- TD Bank -- Analyst Okay. Perfect. And then just following up on the question on the ATM. I know you guys mentioned that the new shelf sterilized the old ATM. Are you now able to access the new financing ATM? Or is that still [Speech Overlap]
Dan Dickson -- Chief Financial Officer The base shelf space, we haven't put in a prospective supplement on our new ATM program to date or -- so you have to file new prospectus to get a new ATM in place.
Craig Hutchison -- TD Bank -- Analyst Okay. So that's not in place at the moment. Okay. All right, thank you guys.
Bradford Cooke -- Chief Executive Officer Thanks for your questions.
Bhakti Pavani -- Alliance Global Partners -- Analyst Good morning guys. Thank you for taking my questions. I just have a couple of questions. Considering the ramp-up time frame at each of the individual mines, once the restrictions have been lifted. During that time, do you have any stockpiles currently on-site that maybe you can process, while you ramp up production?
Bradford Cooke -- Chief Executive Officer Thanks for your question, Bhakti. It's Brad. And maybe, I'll refer to Godfrey on this one.
Godfrey Walton -- President and Chief Operating Officer Hi, Bhakti, thanks for the question. Yes, we, do have about 15,000 tonnes of stockpile material at Guanacevi. And so, we'll be processing that very quickly. And we're also -- we have stockpiles -- smaller stockpiles at Bolanitos and at Compas. So we will be using those to start-up the payer plants. And then the development that we're doing ahead of fully ramping up will help to supply the tonnes as we go forward from there.
Bhakti Pavani -- Alliance Global Partners -- Analyst Got it. And second question is from the cost standpoint. Once the operations open up, do you expect to incur any additional cost in order to comply or mitigate with the safety measures due to COVID?
Godfrey Walton -- President and Chief Operating Officer Hi. This is Godfrey again. I -- we don't expect a lot of extra cost. There will be some. But we implemented a number of, you know, temperature checking and disinfecting and cleaning. So it's added a little bit. But in the overall scheme of things, it's not a lot, and not significant.
Bhakti Pavani -- Alliance Global Partners -- Analyst Okay, that's it from my side. Thank you very much.
Bradford Cooke -- Chief Executive Officer Thank you. Thanks, operator, and thank you all for listening in today. Again, not out of the woods yet, but good progress in the quarter. Ahead of schedule on Guanacevi. And even though we had to shut down in Q1, or sorry, Q2, and we'll get a later start, mid -- late-May for the three operations is what we're anticipating. You know, I think Bolanitos is within the next three months of operations will also show the turning of the corner that we have previously forecasted. So I think operationally, it's a work in progress, but we've been able to tick the Guanacevi box. And we fully expect to tick the Bolanitos box this summer. Keep your eyes peeled for news coming up in May/June. We have good drill results coming from Guanacevi. Good drill results coming from Bolanitos. And a final pre-feasibility update on Terronera. So with that, operator, let's finish the call.
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Post by Entendance on May 21, 2020 1:07:33 GMT -5
Join us for virtual networking online this Thursday 21st May at 5pm BST This week’s 5@5 virtual networking event features Commodity TV’s Chief Editor Jochen Staiger hosting a conversation with: Jonathan Goodman, Executive Chairman, Dundee Corporation Bradford Cooke, CEO, Endeavour Silver Raziel Zisman, Leader – Sustainable Governance Initiative, Whittle Consulting Tim Warman, CEO, Fiore Gold Matt Geiger, Managing Partner, MJG Capital
VANCOUVER, British Columbia , May 20, 2020 -- Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) announces that exploration drilling in Q1, 2020 intersected new high-grade gold-silver mineralization in the Melladito vein at the Bolanitos mine in Guanajuato, Mexico. A total of 14 holes were drilled and 8 holes intersected high grades over minable widths (view longitudinal section here). Drilling highlights of 8 core holes include the following intersections: 24.3 grams per tonne (gpt) gold and 787 gpt silver over a 1.5 meter (m) true width in hole BN27 (3,217 gpt or 93.8 oz per ton (opT) silver equivalents (AgEq) at a 100:1 silver:gold ratio) 12.5 gpt gold and 50 gpt silver over a 1.1 m true width (1,300 gpt or 37.9 opT AgEq) 7.37 gpt gold and 170 gpt silver over a 2.7 m true width (907 gpt or 26.4 opT AgEq) The eight drill holes outline a new mineralized zone 100 m long by 200 m deep, open in all directions. It could connect with the historic high-grade San Ramon mine workings immediately west of and the San Pablo mine workings immediately east of the drill holes. This part of the Melladito vein was not previously explored and represents an exciting new area for resource estimation and mine development.
Bradford Cooke, Endeavour Director and CEO, commented, “Last year at Bolanitos, we were successful in outlining new resources in the San Miguel vein, now under development, and we expect to commence mining at San Miguel in Q3, 2020. This year, we are discovering new resources in the Melladito vein, which should allow us to develop and mine there next year, as the orebody is only 300 m from the La Luz Ramp and 300 m from the San Miguel ramp.”“Exploration activities were halted on April 1, 2020 due to the government mandated suspension of non-essential activities during the COVID-19 pandemic. Now that the government has decreed that the mining industry can go back to work, subject to certain conditions, the exploration team will resume drilling at Bolanitos and other projects on or after June 1, 2020.”Drilling results are summarized in the table here
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Post by Entendance on Jun 2, 2020 13:09:26 GMT -5
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Post by Entendance on Jun 3, 2020 4:10:12 GMT -5
“Last year at Guanacevi, we were successful in outlining new resources on the El Curso property, and we commenced mining there in late Q3, 2019. This year, we continue to discover new resources in the Santa Cruz vein on El Curso which should add to our mine life at Guanacevi.”
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Post by Entendance on Jun 14, 2020 3:44:42 GMT -5
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