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Post by Entendance on Sept 1, 2021 6:57:51 GMT -5
Endeavour Silver Completes Acquisition of Bruner Gold Project in Nye County, Nevada VANCOUVER, British Columbia, Sept. 01, 2021 -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) (“Endeavour”) is pleased to announce that it has completed the acquisition of the Bruner Property, located in Nye County, Nevada, from Canamex Gold Corp. (“Canamex”) (see news release dated July 19, 2021). Endeavour paid US$10 million in cash for 100% of the Bruner Gold Project which includes mineral claims, mining rights, property assets, water rights, and government authorizations and permits.
The Bruner Gold Project is an exploration and development stage project located approximately 180 kilometres (km) southeast of Reno, Nevada. Gold was originally discovered in the district in 1906 and saw intermittent historic mining between 1906 and 1998. Recent exploration activities by previous operators included mapping, drilling, geophysical surveys and sampling culminating in a mineral resource estimate in 2015 and a preliminary economic assessment in 2017 outlining a low capital cost, open pit, heap leach operation.
A historic resource estimate of 342,000 ounces of gold contained in 17.5 million tonnes (t) grading 0.61 grams per tonne (gpt) in three zones, Paymaster, HRA and Penelas was prepared for Canamex in a technical report dated January 22, 2018 titled “NI 43-101 Technical Report on the Bruner Gold Project, Updated Preliminary Economic Assessment, Nye County, Nevada, USA” by Welsh Hagen Associates. A Qualified Person has not done sufficient work for Endeavour to classify the historical estimate as a current mineral resource or mineral reserve. Endeavour is not treating the historical estimate as a current mineral resource or mineral reserve, has not verified the historical resource estimate and is not relying on it. Endeavour plans to “twin” certain drill holes and conduct a drilling program to upgrade the historical estimate as a current mineral resource. Activities in Q4, 2021 will focus on surface work and data compilation and in 2022, Endeavour anticipates recommencing exploration work on high priority targets.
Endeavour CEO Dan Dickson commented, “We are pleased to add an advanced precious metals property to our project pipeline. Bruner should be an accretive acquisition for our five-year strategic plan to become a premier senior silver producer, with potential for exploration discoveries, district acquisitions, near-term production, and organic growth. “We will provide a formal market update in our 2022 annual guidance on our exploration plans for the Bruner project. Our exploration team will focus initially on verifying the historic resources, then turn its attention to the many exploration targets on the Bruner Property. We look forward to unlocking the full potential of the Bruner Property with the goal of building a new mining operation in another historic mining district in Nevada. “In the short term, our attention is on the Terronera Project, as we are nearing the completion of the Feasibility Study and we look forward to releasing the results.” Dale Mah, B.Sc., P.Geo., Endeavour's Vice President Corporate Development, is the Qualified Person who reviewed and approved this news release.
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 Sept 9, 2021 6:25:55 GMT -5
Endeavour Silver Completes Feasibility Study on the Terronera Project in Jalisco State, Mexico. Robust Economics Supported by Larger Mineral Reserves, Higher Annual Silver Production and Longer Mine Life; Video Webcast and Q&A at 7AM PDT (10AM EDT) Today
VANCOUVER, British Columbia, Sept. 09, 2021 -- Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) is pleased to announce it has now completed a Feasibility Study (“FS”) on the 100% owned Terronera Project in Jalisco state, Mexico. Robust economics are supported by larger mineral reserves, higher annual production and longer mine life (“LOM”) compared to the 2020 Pre-Feasibility Study (“Endeavour Silver Corp. Terronera Project NI 43-101 Technical Report dated July 31, 2020) (“2020 PFS”).
The Feasibility Study supports a high grade, silver-gold underground mining operation at Terronera producing an average of 3.3 million payable ounces (“oz”) silver and 32,874 payable oz gold per year over a 12-year mine life. Endeavour management worked with Wood PLC for 12 months to complete the FS, which included comprehensive reviews of the construction, operations, and costs, to provide confidence for project completion within budget and on schedule. Endeavour Silver has commenced initial earthworks and intends to make a formal construction decision subject to completion of a financing package, and receipt of additional amended permits later this year. An additional $13 million budget has been approved to advance the initial earthworks, site clearing, temporary camp and ordering of long lead items for a cumulative 2021 development budget of $21 million approved to date. Wood PLC will author the Technical Report in accordance with National Instrument 43-101, to be filed on SEDAR and EDGAR within 45 days of this news release.
The FS base case assumes a silver price of $20 per oz and a gold price of $1,575 per oz with an implied 79:1 silver to gold ratio, and a Mexican Peso to US Dollar exchange rate of 20:1. The FS also presents project sensitivities including a sensitivity scenario using a spot silver price of $24 per oz and a spot gold price of $1,800 per oz. All currency references herein are in US$.
A video webcast to discuss the results of the Feasibility Study is scheduled for today, Thursday September 9, 2021, at 7:00 a.m. Pacific time (10:00am Eastern time) with Chief Executive Officer, Dan Dickson. The investor presentation which accompanies this news release is available (here). All details with respect to participation in the webcast are outlined in the “2021 Feasibility Study Video Webcast” section below. A video webcast to discuss the updated economics for the 2021 FS is scheduled for Thursday September 9, 2021, at 7:00 a.m. Pacific time (10:00am Eastern time), with Chief Executive Officer, Dan Dickson. Those interested in participating, are invited to join online: www.edrsilver.com/terroneraFS2021webinar The investor presentation which accompanies this video webcast is available (here) and will be available on the homepage of the Company website and under the Investor Relations, Events and Webcast sections. A Question and Answer period will follow. Participants can submit a question through the webcast webform via “Submit a Question” button. The webcast will also be archived for replay.
Highlights from the Feasibility Study
Robust Economics Models an underground mine operation that will process 7.4 million tonnes of ore at 1,700 tonnes per day (“tpd”) over the 12-year mine life (“LOM”). Base Case and Spot Price sensitivity highlights (Spot Price sensitivity uses $24 silver and $1,800 gold): Here Larger Mineral Reserve Revised reserve estimate incorporates improved methodology to capture high grade silver zones. Total LOM reserves increased by 33% to 7.4 million tonnes (Mt) at comparable grades as provided in the 2020 PFS – additional 1.8 Mt was included in the reserve estimate in the feasibility study. Higher Annual Silver Production Over Longer Mine Life Years 1-4 averages 4.4 million oz silver and 39,767 oz gold for 7.5 million oz silver equivalent at an average throughput grade of 455 gpt silver equivalent. The mine plan sequences the high-grade La Luz orebody in early years to optimize grade and cash flow. LOM annual payable production averages 3.3 million oz silver and 32,874 oz gold for 5.9 million oz silver equivalent at an average throughput grade of 374 gpt silver equivalent. Low Quartile Operating Costs will Generate Significant Free Cash Flow LOM MAISC at the base case is $3.24 per payable oz silver, net of the gold credit; years 1-4 MAISC weighted average is $4.69 per payable oz silver, due to front loaded development schedule. LOM annual after-tax free cash flow at the base case, once in full year production is $40 million. LOM annual after-tax free cash flow at the spot price sensitivity, once in full year production is $52 million. Increased Capital Cost Initial capital(1) cost of $175 million. Early construction activities have commenced including temporary camp construction and preparation for forestry work and site clearing (portal #1 & #2 areas). Full construction work will commence following a formal development decision upon completion of project financing package. Front-end engineering and design work is well advanced, and procurement activities of long lead items are underway. Key permits required to begin construction have been granted; minor permit amendments and extensions are being filed to meet current feasibility design
Dan Dickson, CEO, commented, “With the completion of the feasibility study, the Terronera project is now advancing rapidly towards financing and construction. The results provided today support the construction of our largest, and lowest cost mine. We believe there are further opportunities to optimize the project and grow the mineral resource. It is our belief that, with continued drilling success, there is potential to add significant production ounces and mine life at Terronera.”
“In the mining industry, there are very few silver dominant projects that are substantially de-risked and located in favorable jurisdictions such as the Terronera Project. The Feasibility Study reflects a tremendous amount of rigour and work required to elevate the project to be suitable for financial due diligence. We believe the Feasibility Study provides a well-designed, comprehensive plan completed under the direction of our management team and a successful global engineering firm, Wood PLC.” “Subject to Board review and approval later this year, we plan to formally break ground on construction. We are very pleased to deliver this important milestone for our shareholders, employees, the local communities, and other stakeholders.”
Location, Access, Physiography, Infrastructure Terronera is located approximately 50 kilometres northeast of the port city of Puerto Vallarta in Jalisco state, Mexico, about a 1½ hour drive on Highway 70 to the town of San Sebastian del Oeste. The property has excellent road access and is situated in a mountainous region at elevations of 1,500-2,200 metres above sea level. Water, power and labour are all available locally; however, for the mining operations, site-power generation and an employee camp will be required. Water for the operations will be supplied from mine dewatering.
Property, History, Geology, Mineralization Terronera consists of 25 mineral concessions totaling 20,128 hectares. Discovered in 1542, the San Sebastian district went through sporadic periods of small-scale silver and gold production from more than 50 old mines on approximately 20 mineralized veins. All mining halted around 1910-1912 during the Mexican Revolution and little work was done at Terronera until Grupo Mexico acquired the project and conducted some exploration work in the late 1980’s and early 1990’s.
Endeavour purchased Terronera from Grupo Mexico for $2.75 million in 2010, and all expenditures since inception including exploration and engineering to date total $32.9 million. The Company commenced exploration work in 2011 and discovered mineralization in the Terronera Vein in 2012. High grade, silver-gold sulfide and sulfosalt mineralization is hosted in multiple low sulfidation, epithermal veins from 1 to 30 m thick over an area 12 km long by 6 km wide. The veins occur within late Cretaceous andesite to rhyolite volcanic rocks within the Sierra Madre Occidental metallogenic belt where it transects the Trans-Mexico Volcanic Belt.
Mineral Reserves and Resources The Feasibility Study provides a revised mine plan from the previously completed Pre-Feasibility studies, including revised reserve and resource estimates, mining methods, mining dilution and recovery assumptions. The revised resource estimate uses high yield restriction methodology to ensure that the influence of the high-grade samples did not extend beyond their observed range of continuity.
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Post by Entendance on Oct 7, 2021 6:35:18 GMT -5
Endeavour Silver Produces 1,305,399 oz Silver and 10,541 oz Gold for 2.1 Million oz Silver Equivalents in Q3, 2021; 2021 Consolidated Production Guidance Raised to 7.7 – 8.0 Million oz Silver Equivalents
VANCOUVER, British Columbia, Oct. 07, 2021 -- Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) reports production of 1,305,399 silver ounces (oz) and 10,541 gold oz in Q3, 2021, for silver equivalent (“AgEq”) production of 2.1 million oz at an 80:1 silver:gold ratio, totaling 6.1 million AgEq oz for the 9 months ended September 30, 2021. Management has increased 2021 consolidated production guidance to 7.7 – 8.0 million oz silver equivalents to reflect continued strong performance at Guanacevi due to higher than expected grades and tonnage milled. Full details are provided in the section, “Revision to Full Year 2021 Guidance” in this news release.
2021 Third Quarter Highlights Consolidated Production Ahead of Plan: Silver equivalent production at each mine is on track to meet or exceed 2021 production plans. Guanacevi Production Ahead of Plan: Higher throughput and higher silver and gold grades resulted in record production during the quarter, ahead of the annual plan. Based on continued strong performance, the operations team has significantly improved the production outlook for the full year, resulting in an estimated 20% increase in silver equivalent metal. Bolanitos Production on Plan: Processed tonnes were ahead of plan, offset by lower ore grades. El Compas Suspended: Final stockpiles were processed subsequent to the suspension of operations in early August. Most of the company personnel have been transferred to other sites or laid off, while the mine and plant have been placed on temporary care and maintenance. Management is evaluating several opportunities. Metal Sales and Inventories: Sold 699,540 oz silver and 9,925 oz gold, held 1,030,304 oz silver and 1,211 oz gold of bullion inventory and 37,100 oz silver and 2,028 oz gold in concentrate inventory. Management continued to withhold metal from sale during the price correction over the third quarter and plans to sell the withheld metal inventory in anticipation of a precious metal prices rebound. Robust Economics in the Terronera Feasibility Study: Favorable outcomes including improved confidence in the project cost, design and operability provide a strong position for securing project financing. The Terronera Project Technical Report, authored in accordance with National Instrument 43-101, will be filed on SEDAR and EDGAR by October 24, 2021. Acquired Bruner Gold Project in Nye County, Nevada: Completed the acquisition of an advanced stage gold exploration project in a favourable jurisdiction for US$10 million in cash.
Dan Dickson, CEO, commented, “We are well positioned to exceed our original full year consolidated production guidance, which has led to the decision to formally revise our annual targets. Our 2021 business plan shows strong performance, which has resulted in higher production than last year, despite suspending operations at the small El Compas mine. This reaffirms an important year of investment into our people and culture programs to ensure the long-term sustainability of our operations.”
“Entering the fourth quarter, we are also continuing with our exploration programs and anticipate releasing additional drill results at Terronera, building on the encouraging regional results we announced previously this year. We are advancing the Terronera development and continue to negotiate critical contracts, procure various long lead equipment items and general mine equipment, are increasing the work force and preparing for early earth works.”
Mine Operations Consolidated silver production increased by 39% compared to Q3 2020, primarily driven by a 46% increase in silver production at the Guanacevi mine offset by the suspension of operations at the El Compas mine. Gold production increased by 3% with the Guanacevi mine seeing a 47% increase in silver equivalent ounces produced which was offset the suspension of operations at the El Compas mine. Silver and gold production at the Bolanitos mine increased moderately with a 11% increase in silver production and an 8% increase in gold production. Guanacevi throughput exceeded plan and mining the new higher grade El Curso orebody has led to significantly improved grades and mine plan flexibility. Additionally, supplies of local third-party ores continued to supplement mine production, amounting to 10% of quarterly throughput, and contributing to the higher ore grades. Bolanitos and El Compas processed tonnes were higher compared to plan and offset by lower grades, due to normal variations in the Bolanitos ore body and a lower grade of the final stockpile at El Compas. As previously disclosed by the Company (see news release dated January 7, 2021), the existing reserve at El Compas was sufficient to continue mining until mid-2021. Management suspended operations in early August and is currently assessing opportunities.
Revision to Full Year 2021 Production Guidance Updates to the full year 2021 consolidated production guidance are driven by strong performance at Guanacevi, while production at Bolanitos will remain the same as originally estimated for silver with a small increase in gold. Other operational components of the Company’s full year guidance remain unchanged from the targets released in the news release dated January 28, 2021, with the exception of the newly increased development budget at Terronera for an additional $13 million until year end. The COVID-19 pandemic remains relevant in Mexico, and at the Company’s business locations, process and protocols remain in place to ensure staff and workers as well as our communities remain as safe as possible. Any unforeseen outbreaks could impact production.
Release of Third Quarter, 2021 Financial Results and Conference Call The 2021 Third Quarter Financial Results will be released before market on Tuesday, November 9, 2021 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 7870#. 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 two 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 Oct 26, 2021 5:59:25 GMT -5
Endeavour Silver Files NI 43-101 Technical Report on the Feasibility Study of the Terronera Project, Jalisco State Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) announces it has filed the 2021 feasibility study technical report entitled “NI 43-101 Technical Report on the Feasibility Study of the Terronera Project, Jalisco State, Mexico (“Technical Report”)”, prepared by Wood PLC and dated October 21, 2021 with an effective date of September 9, 2021. The report was prepared in accordance with National Instrument 43-101 and filed on SEDAR and EDGAR today.
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates two 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, Chile and the United States to achieve 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 Nov 9, 2021 7:10:21 GMT -5
November 9, 2021
VANCOUVER, British Columbia, Nov. 09, 2021 -- Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) released its financial results today for the three and nine months ended September 30, 2021. The Company operates two silver-gold mines in Mexico: the Guanaceví mine in Durango state and the Bolañitos mine in Guanajuato state and has recently suspended operations at the El Compas mine in Zacatecas state. All amounts reported are in United States (US) dollars.
Dan Dickson, CEO, commented, “Since our Q2 reporting, our operating costs have decreased to levels that are closer to our 2021 guidance. We continued to withhold metals sales in Q3, which has dampened our financial performance and Q3 earnings. At quarter end, we held over 1 million ounces of silver and 1,200 ounces of gold bullion. We expect to sell this inventory in the coming months, which will ensure a strong finish to the year.”
“As of the beginning of November, approximately 90% of our workforce is fully or partially vaccinated. Our operations are running at steady state and we are pleased with the overall performance. Our focus is also on our growth plan, and we have expanded our project development team and commenced preparations for construction at Terronera.”
2021 Third Quarter Highlights
Metal Production: 1,305,399 ounces (oz) of silver and 10,541 oz of gold for 2.1 million oz silver equivalent (AgEq) at an 80:1 silver:gold ratio, totaling 6.1 million AgEq oz for the 9 months ended September 30, 2021. Net Revenue: $34.6 million from the sale of 699,539 oz silver and 9,925 oz gold at average realized prices of $24.56 per oz silver and $1,791 per oz gold. Management withheld metal sales during the quarter and continues to carry higher metal inventory totaling 1,030,304 oz silver and 1,211 oz gold of bullion inventory and 37,100 oz silver and 2,028 oz gold in concentrate inventory. Operating Costs: Cash costs(1) of $8.16 per oz payable silver and all-in sustaining costs (AISC)(1) of $17.46 per oz payable silver, net of gold credits. Cash Flow: $7.7 million in cash flow from operations before working capital changes. The Company continued to hold significant finished goods, increased deposits for equipment purchases, invested in exploration activities and advanced the Terronera project. Earnings: Realized loss of $4.5 million or $0.03 loss per share. The loss is due to the fact that the finished goods inventory was carried at a cost of $18.3 million compared to the estimated fair market value of $29.2 million at quarter end. Strong Balance Sheet: Cash position of $101.1 million and working capital $128.7 million. Cash decreased this quarter, as funds were spent to acquire the $10 million Bruner Gold Project and to prepare for construction at Terronera including advancing initial earthworks, site clearing, temporary camp and ordering of long lead items. Withheld sales also impacted the cash balance at quarter end. Acquired the Bruner Gold Project: A strategic acquisition for an advanced stage exploration property in Nevada, a favorable jurisdiction. The transaction closed on August 31, 2021 for $10.0 million in cash. Suspended Operations at El Compas: Management is currently evaluating its alternatives for the assets, with temporary closure estimated to cost $0.3 million in Q4, 2021.
(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 (Consolidated Statement of Operations Appended Below)
For the three months ended September 30, 2021, the Company generated net revenue of $34.6 million a decrease of 3% compared to $35.6 million in the same period in 2020 due to withholding metal sales during the quarter, which significantly increased finished goods inventory. Earnings and financial metrics including mine operating cash flows, operating cash flows and EBITDA were also impacted by the increased holding of production inventory.
Gross sales of $35.0 million in Q3, 2021 represented a 3% decrease over the $36.1 million for the same period in 2020.
There was a 6% decrease in silver ounces sold and a 2% decrease in the realized silver price resulting in an 8% decrease to silver sales. There was a 10% increase in gold ounces with an 8% decrease in the realized gold price resulting in a 2% increase in gold sales. During the period, the Company sold 699,539 oz silver and 9,925 oz gold, for realized prices of $24.56 and $1,791 per oz, respectively, compared to sales of 741,262 oz silver and 8,997 oz gold, for realized prices of $25.08 and $1,952 per oz, respectively, in the same period of 2020. For the three months ended September 30, 2021, silver and gold spot prices averaged $24.36 and $1,790 respectively.
The Company significantly increased its finished goods silver and gold inventory to 1,067,404 oz and 3,239 oz, respectively at September 30, 2021 compared to 459,659 oz silver and 2,835 oz gold at June 30, 2021. The cost allocated to these finished goods was $18.3 million at September 30, 2021, compared to $10.1 million at June 30, 2021. At September 30, 2021, the finished goods inventory estimated fair market value was $29.2 million, compared to $17.3 million at June 30, 2021.
After cost of sales of $26.3 million (Q3, 2020 - $29.3 million), mine operating earnings amounted to a $8.3 million (Q3, 2020 –$6.3 million) from mining and milling operations in Mexico. The decrease in cost of sales was primarily related to the 6% decrease in silver ounces sold offset by higher royalty costs, labour costs and additional costs attributed to global supply constraints. Royalties increased 33% from $2.0 million to $2.7 million due to higher production and realized prices and the increased mining of the high grade Porvenir Cuatro extensions at the Guanaceví operation, which are subject to the higher royalty rates.
Excluding depreciation and depletion of $4.8 million (Q3, 2020 - $8.1 million) and stock-based compensation of $0.1 million (Q3, 2020- $0.1 million) mine operating cash flow before taxes was $13.2 million in Q3, 2021 (Q3, 2020 – $15.1 million) with Q3, 2020 also including a write-down of inventory of $0.6 million. Operating earnings were $3.0 million (Q3, 2020 –$0.4 million) after exploration and evaluation expenditures of $4.7 million (Q3, 2020 – $1.7 million), general and administrative expense recovery of $0.5 million (Q3, 2020 – expense of $3.7 million), severance costs of $0.7 million (Q3, 2020 - $Nil) and care and maintenance costs of $0.4 million (Q3, 2020 – $.6 million). The general and administrative expense recovery was primarily due to mark-to-market fluctuations for director’s cash settled deferred share units, with a $2.8 million recovery in Q3 2021 versus a $1.5 million expense in Q3, 2020.
Net loss was $4.5 million ($0.03 loss per share) compared to net earnings of $0.5 million (loss of $0.00 per share) in Q3, 2020. Compared to Q3, 2020, the Company increased its investment in exploration and evaluation activities by $3.4 million, experienced a $1.2 million loss in foreign exchange and incurred a $3.0 million unrealized loss on marketable securities.
Current income tax expense increased to $0.7 million (Q32 2020 – $0.6 million) due to increased profitability impacting special mining duty, while deferred income tax expense of $3.0 million was recognized due to the estimated use of loss carry forwards to reduce taxable income primarily at Guanacevi (Q3 2020 – $0.6 million).
Direct operating costs per tonne in Q3, 2021 increased 15%, to $115.57 compared with Q3, 2020 due to higher operating costs at all operations. The operations have seen a strengthening of the Mexican Peso, increased labour costs and, increased third party ore purchased Guanaceví compared to prior year and budgeted. Including royalties and special mining duty, direct costs per tonne increased 16% to $130.38. Royalties increased 33% to $2.7 million as increased production from the El Curso and El Porvenir concessions at Guanaceví with higher prices substantially increasing the royalty expense. The improved profitability increased special mining duty expense to $0.6 million for Q3, 2021 compared to $0.4 million for Q3, 2020.
Consolidated cash costs per ounce, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute) increased to $8.16 due to the increased direct costs per tonne. All-in sustaining costs per ounce (also a non-IFRS measure) remained relatively flat at $17.46. In Q3, 2021 corporate general and administrative included a $2.8 million mark-to-market expense recovery for deferred share units whereas the mark to market expense was $1.5 million in Q3, 2020.
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.
Conference Call
A conference call to discuss these results will be held today, Tuesday, November 9 at 10am PST (1pm EST). To participate in the conference call, please dial the numbers below. No passcode 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 passcode is 7870 #. 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 three and operates two high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information: Galina Meleger, Vice President, Investor Relations Toll free: (877) 685-9775 Tel: (604) 640-4804 Email: gmeleger@edrsilver.com
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Post by Entendance on Nov 10, 2021 3:50:39 GMT -5
November 9, 2021 1:00 PM ET: Endeavour Silver Corp. CEO Dan Dickson on Q3 2021 Results Company Participants Galina Meleger - Investor Relations Dan Dickson - Chief Executive Officer
Conference Call Participants Marcus Giannini - H.C. Wainwright Joseph Reagor - ROTH Capital Partners
Galina Meleger Good morning, everyone, and welcome to the Endeavour Silver 2021 third quarter financial results conference call. With me on the line today, we have the company's Chief Executive Officer, Dan Dickson; our Chief Financial Officer, Christine West; and our Chief Operating Officer, Don Gray. 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 2021 and future years, including revenue and cost figures, silver and gold production, grades and recoveries and the timing and expenditures required to develop new 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 today's call. And I'll now turn it over to our CEO, Dan Dickson.
Dan Dickson Thank you Galina, and welcome everyone. It has been a solid year so far and Q3 was no exception. Quarter-over-quarter, we saw silver -- higher silver and gold grades and our operating costs improved, decreasing to levels that are closer to our 2021 guidance. Year-over-year, silver production increased by nearly 40%, driven by record production at Guanacevi and gold production also increased, up by 3%. As anticipated, during the quarter, we suspended operations at El Compas. This will result in minimal impact on our projections for the year as it is a very small asset representing only 5% of our consolidated annual production. Overall, we are tracking to the upper end of our full year 2021 production guidance, which we revised upwards in October. Costs while improving are expected to come in the upper end of the respective ranges. Despite strong production this quarter, I want to highlight that our performance is not reflected in our financials. This is due to the fact that we continue to withhold metal sales as precious metal prices softened significantly during the quarter. Believing at the time that prices would rebound, which they have and with the benefit of having more than $100 million in cash on the balance sheet, we made the decision not to sell into a falling market. As a result at the end of September, we are carrying a larger than normal finished goods inventory. Given the inventories held on our balance sheet at less -- $1 million less than the estimated fair market value this negatively impacted our third quarter revenue, earnings and mine operating cash flow. Our plan is to sell down most if not all the inventory in the coming months and finish the year on a high note. With operations running smoothly, we are laser-focused on future growth, starting with the development of our next mine Terronera. As our largest and lowest cost mine, the high-grade Terronera project, it will be a game changer for us. We recently issued an updated feasibility study on the project where reserves grew by 33%. We extended the mine life from 10 to 12 years and payable silver and payable gold increased by 32% and 20%, respectively. We also incorporated a third portal into the mine plan to improve sequencing, as well as increased long-haul mining. These design changes increased the capital cost of the project. However, they will yield more operational flexibility resulting in better operational results. While there maybe price pressures on some materials, we have sourced a number of long lead items and built-in a contingency. Our team is focused on keeping the project on schedule as this is a key driver to staying on budget. Our intent is to fund the Terronera development project through a combination of cash on hand, operating cash flow, and debt financing. To this end, we have been working with commercial banks on an $80 million to $100 million debt facility, and we expect to receive committed financing in the coming months. Once we have clarity on financing, the Board will approve construction and we can commence the 24-month build-out. Key permits required to begin construction are in place, although some amendments to normal course extensions have been filed to reflect the current design. In the meantime, the Board approved an additional $13 million to be spent on this year on early works and the project is moving relatively quickly. During the quarter, we advanced initial earthworks, front end engineering, procurement site clearing and start our temporary camp. There have been very few silver mines developed in the last five years, and very few are being planned. So needless to say, we are excited to get going on the construction Terronera, and get it up and running. Upon completion of construction currently scheduled for the first half of 2024 Terronera is expected to double our production profile and cut our cost profile in half. Simply put, Terronera is a high-grade silver asset and it clearly repositions us to a low-cost top mid-tier producer. And we don't plan to stop there. As we've stated, our five-year strategic plan has become a premier senior silver producer. To reach this milestone, we have a solid growth pipeline, which includes Parral, which could be our next development project in Mexico, a number of world-class exploration properties in Chile, and our most recent acquisition the Bruner Gold Project. Bruner is an advanced stage exploration property in Nevada, with favorable geology. We paid $10 million in cash for Bruner. And based on historical resource estimates, we see a lot of upside potential for exploration discoveries and district consolidation. Our team will focus initially on verifying the historic resource then turn their attention to the many exploration targets on this property. This is truly an exciting time for Endeavour Silver, and we have a great team in place focused on execution. For investors, there are several catalysts to look forward to in the coming months. Receipt of committed project financing for Terronera followed by a formal construction decision and exploration updates to name a few. This concludes my comments for this quarter.
Marcus Giannini, H.C. Wainwright Hey, guys. This is Marcus Giannini calling in for Heiko. Thanks for taking our questions. So you recently acquired the Bruner Gold Project for $10 million, could you maybe provide some color on your exploration plans at site? And if possible, maybe a metal timeline on when you plan on beginning some work?
Dan Dickson Yes. I mean, we're excited about Bruner. It was an opportunistic acquisition for us. So I was sitting in a junior company, that had some financial distress and we saw an opportunity there with a nice historic resource on the property and actually historic PA as well. And our plan right now is we'll come out with guidance on our exploration plans for 2022 in maybe late December, maybe early January, likely early January. So the plan specifically for Bruner will come out then for 2022. But ultimately, our envision spending about $1 million $1.5 billion there next year. We're building up our geology team. We'll do some early works. We're going to prove out the historic resource and focus on other targets that we see and the ability to kind of grow that historic resource once we define it. So we have about one year, 1.5 years worth of exploration work there and then see if we can move that along the development mine. So I won't get into specifics of exactly where our drill program will be next year. That will come in the New Year.
Marcus Giannini Okay. Awesome. Thanks for the clarity. And then just changing gears here a bit. The withheld metals reported they're getting quite meaningful and done well holding back sales in the past. But just thinking out loud, do you have an internal plan to sell them before the end of the fiscal year? Is there a minimum metal price you'd like to sell at, or is this 100% dependent on spot pricing in the market?
Dan Dickson Yes. Our plan is to sell in the coming months and mostly through. We'll get probably a lot of that off depending on prices here over the next two months, so before year-end. It really came down to a function of where our balance sheet was and how strong it is and our ability to be flexible on that. In Q3 we saw a silver drop from $24 and it kind of closed the quarter at $21.5. And we just didn't want to fall – sell into a falling market. We did see a rebound in price coming. We've been correct about that. We're obviously north of $24 now. And we've been selling regularly through this quarter and expect to kind of ramp that up as we see prices continue to improve.
Marcus Giannini Okay. Great. That’s it for me. Thanks for taking my question.
Joseph Reagor, ROTH Capital Partners Hey, guys. Thanks for taking my questions. So just thinking about Terronera, and I realized the effort maybe official construction decision there. But what's the spend look like Q4 maybe into Q1 there, as you – you guys doing early earthworks or anything to get ready for construction?
Dan Dickson Yes. So we announced that from September to December 31, we had a $13 million budget to spend this year in 2021. So that's advancing on early procurement, sourcing long lead item. So the mobile fleet for example, so we can have it on-site in December/January. Going into Q1, that's to be determined. Obviously, it's on a function of the formal construction decision. So our holding costs are basically about $500,000 a month. So that's the team that we've built. We've got about 43 people to – and that we'll be building closer to 50 here in the fourth quarter. We do expect to have financing in place. Once we have that financing in place, it's making sure that we have all the municipal permits that we require to get going. So the hold cost being about $500,000 a month is kind of our baseline for – on a monthly basis, so call it $1.5 million to $2 million in Q1. But if we get that formal construction decision, that's going to move rather quickly. Of the $175 million spend over two years, you'd be looking at spending probably 60% of that next year. But again, all that's depending on time line. Don't want to get into specifics of Q1 spend or Q2 spend of 2022 until we have that formal construction decision.
Joseph Reagor Okay. Fair enough. And then, obviously you guys were able to pick up this asset in Nevada for a good price. Do you see any other opportunities out there like that? And/or do you feel like you have enough? And then, on that note, how do you guys feel about Mexico at this point? There's been some other interesting sales of assets in Mexico with some companies doubling down and like still other companies deciding to quickly move away. What are your guys' views there with the current political climate?
Dan Dickson Yeah. I mean the two questions other opportunities. I think there are other opportunities in Nevada. I think there's a lot of opportunities in Mexico. And now that we've got a little bit of a footprint in Nevada, we've been looking at some assets that would be earlier projects, some more greenfield projects and stuff in the area that we are now with Bruner. And we're building up our geology team there and we want to give them more work beyond Bruner, so we're looking and there are lots of opportunities, but there still remains a lot of opportunities in Mexico. We still feel very strongly about Mexico. We still think it's one of the best jurisdictions in the world. Obviously, over the last five years, with the current government regime, things have moved a little bit left, and there's a lot more rhetoric and Canadian companies have kind of been in the news, not necessarily for the wrong reasons, just from a perception standpoint, I have always thought Endeavour has done a very good job in Mexico and the programs that we've put in place for the communities around us, has benefited us and we haven't been in the news like other companies. And for us, Terronera is obviously the future of the company. And Jalisco in the state of Jalisco, we've got great relationships with the communities around us. And we think there's a lot of opportunity to even grow Terronera around it. So, consolidating some of that area and continue to look in Mexico as one of our first priorities. We have a phenomenal competitive advantage there based on the people that we have in Mexico. And ultimately, tax rates are very competitive to the rest of the world and the rest of the Americas. And they put in a special mining duty for gold and silver and/or mining companies and the environmental tax back in 2013. And they've kind of already hit the mining companies with those taxes, and we don't expect anything more. So, we're happy with the environment we're in. We're happy with the permitting. We're happy with the work that we've done with the government. So, we're happy to continue to grow in Mexico.
Joseph Reagor Okay. Thanks, Dan. I’ll turn it over.
Dan Dickson Thanks a lot Joseph, for those questions and I want to thank everyone for joining the call. Ultimately, I think we had a very good third quarter and fourth quarter will help us finish the year strong. Again, we'll have quarter-end production come out early January, and look for 2022 guidance to come out in January as well. So, I hope everyone has a good day, and I expect positive things from the company going forward.
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Post by Entendance on Nov 25, 2021 3:19:55 GMT -5
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Post by Entendance on Dec 2, 2021 8:08:49 GMT -5
VANCOUVER, British Columbia, Dec. 02, 2021 -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) is pleased to report continued high-grade drill results from its 2021 exploration program at the Guanacevi Mine in Durango State, Mexico and the Bolañitos Mine in Guanajuato State, Mexico. Exploration drilling is ongoing at both operations and will continue in 2022.Highlights from Recent Drill ResultsGuanacevi 1.97 gpt Au and 1,254 gpt Ag for 1,412 gpt AgEq over a 3.22 m ETW, including 3.6 gpt Au and 2,690 gpt Ag for 2,978 gpt AgEq over 0.2 m (UCM-67), extending the El Curso orebody along strike
4.36 gpt Au and 1,450 gpt Ag for 1,798 gpt AgEq over a 3.18 m ETW, including 7.97 gpt Au and 4,568 gpt Ag for 5,206 gpt AgEq over 0.31 m (SCSU-11), extending the Santa Cruz South (SCS) orebody to depth Bolañitos 8.08 gpt Au and 151 gpt Ag for 797 gpt AgEq over a 1.67 m ETW, including 89.6 gpt Au and 880 gpt Ag for 8,046 gpt AgEq over 0.08 m (BS-04), on a new discovery, the Tepetateras vein, located south of current workings 1.26 gpt gold and 241 gpt silver for 342 gpt AgEq over a 0.96 m ETW (BS-03), on the Lulu vein, south of current workings
Abbreviations include: gpt: grams per tonne; Au: gold; Ag: silver; ETW: estimated true width; m: metre; HW: hanging wall. Silver equivalents are calculated at a ratio of 80:1 silver:gold. Dan Dickson, CEO, commented, “We continue to see exceptional drilling results within the El Curso and the Santa Cruz Sur systems at our Guanacevi silver mine. We have been operating at Guanacevi for more than 15 years and these encouraging results support our view that we can continue to extend the mine life.” Mr. Dickson continued, “Endeavour was built on the drill bit and exploration will continue to be a cornerstone of our strategy as we pursue our vision of being a premier senior silver producer.”At Guanacevi, underground drilling continues to expand down plunge extensions of the El Curso and the Santa Cruz South (SCS) orebodies (view Guanacevi longitudinal sections). From January through October, more than 14,000 metres in 38 holes have been drilled at Guanacevi from underground.
At Bolañitos, surface and underground drilling has intersected multiple mineralized structures near current workings (view Bolanitos longitudinal sections). Tepetateras is a new area south of Bolañitos situated 1.7 kilometres from Endeavour Silver’s historic Golondrinas Mine. Since the beginning of the year, over 11,500 metres in 59 holes have been drilled at Bolañitos identifying mineralization in structures near current workings.
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Post by Entendance on Dec 5, 2021 3:38:57 GMT -5
Early Warning Report Regarding Guanajuato Silver Company Ltd. December 2, 2021
This news release is being disseminated by Endeavour Silver Corp. (TSX: EDR, NYSE: EXK)(“Endeavour”) pursuant to National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, in connection with the acquisition by Endeavour of certain securities of Guanajuato Silver Company Ltd. (“GSilver”), a British Columbia corporation with a head office at 578-999 Canada Place, Vancouver, British Columbia, V6C 3E1.
On November 30, 2021, Endeavour acquired 5,750,000 units (“Units”) of GSilver at a purchase price of $0.55 per Unit through a non-brokered private placement (the “Private Placement”) for an aggregate purchase price of $3,162,500. Each Unit consists of one common share (a “Common Share”) of GSilver and one-half of a common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to purchase one Common Share at a price of $0.75 per Common Share at any time on or before November 30, 2023.
In addition, on November 30, 2021, in connection with GSilver’s early payment of a US$2.5 million promissory note (the “Note”) issued to Endeavour in connection with GSilver’s acquisition of the El Cubo mine and mill complex (“El Cubo”) as announced by GSilver on November 16, 2021, Endeavour acquired 901,224 Common Shares (the “Settlement Shares”) at a deemed price of $0.55 per Settlement Share. The Settlement Shares were issued by GSilver to settle the Mexican value added tax (“VAT”) payable on the purchase price for El Cubo represented by the Note (the “Note Settlement”).
Before completion of the Private Placement and Note Settlement, Endeavour owned 21,331,058 Common Shares. Such Common Shares represented approximately 10.37% of the issued and outstanding Common Shares prior to the completion of the Private Placement and Note Settlement.
Immediately after completion of the Private Placement and Note Settlement, Endeavour owned 27,982,282 Common Shares and 2,875,000 Warrants. The Common Shares owned by Endeavour following the completion of the Private Placement and Note Settlement represent approximately 12.63% of the issued and outstanding Common Shares. If exercised, the 2,875,000 Warrants together with the 27,982,282 Common Shares owned by Endeavour would represent approximately 13.75% of the issued and outstanding Common Shares (after giving effect to the exercise of such Warrants, but not the exercise of any other common share purchase warrants or convertible securities issued by GSilver).
Endeavour’s acquisition of securities of GSilver was made for long term investment purposes and Endeavour will continue to monitor the business, prospects, financial condition and potential capital requirements of GSilver. Endeavour may from time to time in the future increase or decrease its direct or indirect ownership, control or direction over the Common Shares or other securities of GSilver through market transactions, private agreements, dilution through third party subscriptions from treasury, or otherwise.
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Post by Entendance on Dec 10, 2021 6:12:52 GMT -5
December 9, 2021 "It has been a solid year so far and Q3 was no exception. Quarter-over-quarter, we saw higher silver and gold grades. As well, our operating costs improved, decreasing to levels that are closer to our 2021 guidance. Year-over-year, silver production increased by nearly 40% driven by record production at Guanacevi. Our gold production also increased by 3%. As anticipated, during the third quarter, we suspended operations at El Compas. This will result in minimal impact on our projections for the year as it is a very small asset, representing only 5% of our consolidated annual production. Despite strong production in Q3, our performance was not reflected in our financials for the quarter. This is due to the fact we continued to withhold metal sales as precious metal prices softened significantly in the second quarter. As a result, at the end of September, we were carrying a larger than normal finished goods inventory, which negatively impacted third quarter revenue, earnings and mine operating cash flow. With operations running smoothly, we are laser focused on future growth, and in particular the development of our next mine. As our largest and lowest cost mine, the high-grade Terronera is expected to be a gamechanger for us. To this end, we filed a NI 43-101 technical report on the feasibility study for the Terronera project in October and have been working with commercial banks on securing a debt facility. We expect to receive committed financing in the coming months. Once we have clarity on financing, the board will approve construction and we can commence the 24-month build out. As the year draws to a close, this will be our last newsletter for 2021. We look forward to connecting with you in the new year."
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Post by Entendance on Dec 16, 2021 7:48:26 GMT -5
Endeavour Silver Reports Positive Drill Results for the Parral Project VANCOUVER, British Columbia, Dec. 16, 2021 -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) is pleased to report positive drill results from its ongoing exploration program at the 3,432-hectare Parral project situated in the State of Chihuahua, Mexico. During the last 11 months, until the end of November, the Company has drilled over 14,000 metres in 59 holes targeting several areas along the La Colorada vein.
Highlights from Recent Drill Results
2,846 gpt Ag, 0.65% Cu over a 0.89 m ETW, including 3,380 gpt Ag, 0.77% Cu over 0.75 m (VCS-10) 840 gpt Ag, 0.11 gpt Au, 0.25% Cu, 9.09% Pb and 4.74% Zn for 1,288 gpt AgEq over a 2.77 m ETW, including 1,585 gpt Ag, 0.26 gpt Au, 0.55% Cu, 34.88% Pb and 4.38% Zn for 2,755 gpt AgEq over 0.36 m (VCU-38) 708 gpt Ag, 0.55 gpt Au, 0.16% Cu, 10.95% Pb and 12.38% Zn for 1,504 gpt AgEq over a 1.23 m ETW, including 1,130 gpt Ag, 0.91 gpt Au, 18.95% Pb and 18.70% Zn for 2,406 gpt AgEq over 0.69 m (VCU-50) Abbreviations include: gpt: grams per tonne; Au: gold; Ag: silver; Cu: copper; Pb: lead; Zn: zinc; ETW: estimated true width; m: metre; HW: hanging wall. Silver equivalents are calculated at a ratio of 80:1 silver:gold, silver price of $23 per troy ounce, copper price of $3.45 per pound, lead price of $0.90 per pound and zinc price of $1.20 per pound.
“The Parral project continues to deliver great results,” commented Dan Dickson, Chief Executive Officer. “Following limited drilling in 2020 due to the pandemic, it was a priority for our exploration team to re-start the exploration program at Parral this year to expand on the mineral resource estimate we published on the project in early 2020. Our goal is to continue the drill program at Parral in 2022 as we get closer to achieving the scale required to support a positive economic assessment.”
The Parral project, which was acquired by Endeavour Silver in 2016, is in Hidalgo de Parral, a large historic silver mining district adjacent to the city of Parral, in the State of Chihuahua, Mexico. The project district comprises classic, high-grade silver, epithermal vein deposits, characterized by low-sulphidation mineralization. The property is accessible by paved and gravel roads and has access to the local power grid.
The Veta Colorada (including the Sierra Plata and El Verde mines) was a past producing mining operation owned by Grupo Mexico that closed in 1991 due to low silver prices. Mineralization, which occurs in a major silver vein structure that ranges from 1 to 30 metres thick, was mined seven levels down to 300-metre depths below surface in places and was traced for seven kilometres.
The Company filed a NI 43-101 technical report on the Parral project, State of Chihuahua, Mexico on March 14, 2020. As of December 31, 2019, Parral had estimated indicated mineral resources of 613,000 tonnes, containing 4.0 million ounces of silver grading 207 g/t, 6,800 ounces of gold grading 0.35 g/t, 17.5 million pounds of lead grading 0.63%, and 16.5 million pounds of zinc grading 0.61%. Inferred mineral resources are estimated to total 4.04 million tonnes containing 35.0 million ounces of silver grading 269 g/t, 62,800 ounces of gold grading 0.48 g/t, 65.0 million pounds of lead grading 0.35%, and 64.3 million pounds of zinc grading 0.35%.
Due to the COVID-19 pandemic, the Company suspended the Parral drill programs in early 2020 and resumed drilling in 2021.
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Post by Entendance on Dec 29, 2021 13:03:17 GMT -5
Breaking: The Pfizer 6 month data shows that Pfizer's COVID-19 inoculations cause more illness than they prevent. Plus, an overview of the Pfizer trial flaws in both design and execution: PDF
The Pfizer Inoculations Do More Harm Than Good: VIDEO
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Post by Entendance on Jan 5, 2022 5:35:59 GMT -5
THEM OR US. TERTIUM NON DATUR.
VANCOUVER, British Columbia, Jan. 04, 2022 Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) is pleased to announce the appointment of Amy E. Jacobsen, QP, P.E., MBA to the Company's board of directors effective January 3, 2022.
“We are delighted to welcome Amy to our board. She is well recognized for her contribution to the mining industry and brings extensive expertise as well as a depth of mining experience that will serve Endeavour Silver well as we pursue our vision of being a premier senior silver producer,” stated Dan Dickson, Chief Executive Officer.
Ms. Jacobsen has over 30 years of diverse global experience and was recognized among the 100 Global Inspirational Women in Mining 2020. Her experience includes industrial minerals and fertilizers, base metals including copper, cobalt, zinc, and nickel, precious metals, and energy fuels such as coal, lignite and uranium.
Ms. Jacobsen started her career at Homestake and Hazen Research before moving to Stone and Webster Management Consultants. Most recently, she spent 14 years in various management positions at Behre Dolbear Group, including 3 years as chair of the board of directors from 2016 to 2019. Ms. Jacobsen is currently the President of Windward Consulting as well as Adjunct Professor in the Professional Masters – Mining Engineering and Management degree program at the Colorado School of Mines.
Ms. Jacobsen graduated from the Colorado School of Mines with a B.S. in metallurgical engineering as well as a Master of Business Administration from the Executive MBA program at the University of Denver. She is a Qualified Professional in metallurgy through the Mining and Metallurgical Society of America, a registered Professional Engineer in the state of Colorado and an Associate Member of the International Institute of Mineral Appraisers. Ms. Jacobsen is the past president of the Mining and Metallurgical Society of America and past director of the Society for Mining, Metallurgy and Exploration.
About Endeavour Silver Endeavour Silver is a mid-tier precious metals mining company that operates two high-grade, underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. The Company’s philosophy of corporate social integrity creates value for all stakeholders.
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Post by Entendance on Jan 6, 2022 8:09:01 GMT -5
Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) is pleased to introduce its new Sustainability Strategy. It sets out priorities, actions, and targets over the next three years focused on three pillars: people, planet and business. All amounts reported are in United States (US) dollars. This refreshed strategy is part of the Company’s multi-year transformation and growth plan and demonstrates the crucial role that leading mining companies like Endeavour Silver can provide in supporting economic, social and environmental sustainability.
The Endeavour Silver Sustainability Strategy 2022-2024 aligns with our “Endeavour Cares” cultural philosophy, which reflects a strong senior management and team commitment to sustainable practices. Endeavour will report regularly and transparently on the delivery of the Sustainability Strategy through its annual Sustainability Report available on the website at edrsilver.com/sustainability/overview/ .
“We’re raising the bar for ourselves,” says Dan Dickson, CEO. “We want to deepen our sustainability commitments and elevate our performance in areas that matter most to our stakeholders and our business. These are areas where we’re channeling our energy, increasing our investments, and increasing our efforts to deliver meaningful progress toward a more sustainable future.”
The comprehensive strategy outlines key initiatives in years 2022-2024, under three pillars with clear goals. Highlights include:
Increase positive social impacts for people : Achieve zero fatalities and reduce accident rate Build an inclusive team by increasing participation of women above the industry average to 16% in the workforce and 25% in leadership positions (1) Target $2 million in community investments over three years to support local needs in communities in Mexico Elevate environmental stewardship of the planet : Reduce the intensity of Endeavour’s emissions year-over-year and develop a climate risk response plan, including reporting on climate-related risks and opportunities in line with the Task Force on Climate-Related Disclosures (TCFD) recommendations Maintain zero tailings spills and further align practices across the entire tailings facility lifecycle with the new global industry standard on tailings management Increase the number and survival rate of trees planted annually Lead a healthy, long-term business : Expand Environmental, Social and Governance (ESG) disclosures Continue building a caring culture through enhanced training for employees and contractors and faster resolution of concerns raised through our grievance mechanism Increase ESG criteria in our supplier evaluation system and ensure all suppliers comply with the Company’s Code of Conduct
1. Targets align with the mining industry 2021 representation averages, as reported by Mexican Mining Chamber (CAMIMEX)
“Since the early days when we founded this company, we applied a sustainability barometer to everything we have done,” comments Brad Cooke, Executive Chairman of the Board. “This approach has driven us on our mission to find, build and operate quality silver mines in responsible ways that create value for all stakeholders. Anchored on this foundation, our new Sustainability Strategy helps us take our philosophy and actions to the next level.” To ensure that business commitments result in tangible results, Ken Pickering, Independent Board Director and Sustainability Committee Chair, states that, “Our Sustainability Strategy sets out concrete targets, supported by disciplined monitoring and reporting processes to evaluate our performance and maintain our focus on these activities.”
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates two high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information : Trish Moran, Interim Head of IR Toll free: (877) 685-9775 Tel: (604) 640-4804 Email: gmeleger@edrsilver.com Website: www.edrsilver.com
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Post by Entendance on Jan 11, 2022 8:24:40 GMT -5
Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to report full year 2021 production of 4,870,787 silver ounces (oz) and 42,262 gold oz, for silver equivalent 1 (“AgEq”) production of 8.3 million oz. Fourth quarter production was 1,443,564 silver oz and 9,446 gold oz, for silver equivalent production of 2.2 million oz AgEq. The Company’s 2021 full year production exceeded the upper range of its guidance of between 7.7 million oz and 8.0 million oz AgEq (revised upward in October) due to continuing strong performance at Guanacevi with higher grades and tonnage milled. Annual silver production exceeded guidance by 3% while gold production was in line with the upper range of guidance. "Steady performance at Bolanitos, together with record mill throughput, grade and production at Guanacevi boosted our 2021 consolidated production beyond the upper end of our increased guidance,” said Dan Dickson, Endeavour’s Chief Executive Officer. “Last year was a great year due to the excellent efforts of our entire team and we are in a strong position going into 2022.” Q4 and FY2021 Highlights Exceeded Production Guidance: Consolidated production remained strong as silver and gold production at each mine met or exceeded revised 2021 guidance and exceeded plan. Guanacevi Continued to Outperform: Silver and gold grades continued to deliver well above plan and throughput approached plant capacity. Bolanitos Performance Remained Steady: Silver grades and plant throughput exceeded plan with gold grades slightly below plan. Metal Sales and Inventories : Sold 1,413,699 oz silver and 8,715 oz gold, held 1,028,340 oz silver and 1,044 oz gold of bullion inventory and 54,270 oz silver and 2,630 oz gold in concentrate inventory at year end. Management continued to be bullish on precious metal prices and withheld a portion of metal sales in the fourth quarter, consistent with the levels held as at September 30, 2021. Encouraging Brownfields Exploration Results from Guanacevi and Bolanitos : Drilling continued to intersect high-grade gold-silver mineralization in the Santa Cruz vein at Guanacevi and intersect multiple mineralized structures near current workings at Bolanitos. Positive Greenfields Exploration Results from the Parral Project : Drilled over 14,000 metres targeting several areas along the La Colorada vein with encouraging results to expand the mineral resource estimate. Continued to Advance the Terronera Project : The Terronera Project Technical Report, authored in accordance with National Instrument 43-101 was filed on SEDAR and EDGAR on October 25, 2021. Work continued on final detailed engineering, early earth works, critical contracts and procurement of long lead items. The financing and final permitting processes are progressing, however, the current surge in COVID-19 cases caused by the Omicron variant has extended the anticipated timeline. The Company intends to make a formal construction decision subject to completion of a financing package and receipt of additional amended permits in the coming months. Sold El Cubo Assets: The Company sold its El Cubo assets in Guanajuato, Mexico to Guanajuato Silver Co (formerly Vangold Mining Corp) for US$15 million plus contingent payments up to US$3 million in a transaction that closed April 9, 2021. Suspended Operations at El Compas : Management suspended operations at El Compas in mid-August and is currently evaluating its alternatives for the asset. Acquired Bruner, an Advanced Stage Exploration Project: Ideally situated within Nevada’s Walker Lane NW trending mineral belt, this acquisition closed on September 1, 2021.
Q4 2021 Mine Operations Consolidated silver production increased by 29% to 1,443,564 ounces in Q4 2021 compared to the prior year quarter, primarily driven by a 31% increase in silver production at the Guanacevi mine and a 42% increase in silver production at the Bolanitos mine offset by the suspension of operations at the El Compas mine. Gold production decreased by 25% to 9,446 ounces due to a 19% decrease in gold production at Bolanitos mine and the suspension of operations at the El Compas mine offset by a 21% increase in gold production at the Guanacevi mine. Guanacevi throughput in Q4 2021 was consistent with Q4 2020 but silver grades and gold grades were each significantly higher. Guanacevi throughput exceeded plan and mining the new higher grade El Curso orebody has led to significantly improved grades and mine plan flexibility. Additionally, supplies of local third-party ores continued to supplement mine production, amounting to 14% of quarterly throughput and contributing to the higher ore grades. Bolanitos Q4 2021 throughput was consistent with Q4 2020 with increased silver grades and decreased gold grades. Silver production increased by 42% while gold production decreased by 19% at the Bolanitos mine.
Production Highlights for the Three Months and Year Ended December 31, 2021 & MORE here
2021 Financial Results and Conference CallThe Company’s 2021 financial results will be released before markets open on Thursday, March 10, 2022 and a telephone conference call will be held the same day at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below. Date & Time: Thursday, March 10, 2022 at 10:00 a.m. PT / 1:00 p.m. ET Telephone: Toll-free in Canada and the US +1-800-319-4610 Local or International +1-604-638-5340 Please allow up to 10 minutes to be connected to the conference call. Replay: A replay of the conference call will be available by dialing (toll-free) +1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US. The replay passcode is 8312#. The replay will also be available on the Company’s website at www.edrsilver.com
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Post by Entendance on Jan 13, 2022 7:41:26 GMT -5
Endeavour Silver Corp. (“Endeavour” or the “Company”) (TSX: EDR, NYSE: EXK) has entered into a definitive agreement to purchase the Pitarrilla project (“ Pitarrilla ”) in Durango State, Mexico by acquiring all of the issued and outstanding shares of SSR Durango, S.A. de C.V. (the “ Transaction ”) from SSR Mining Inc. (NASDAQ/TSX: SSRM; ASX: SSR) (" SSR Mining ") for total consideration of $70 million and a 1.25% net smelter returns royalty (“ NSR Royalty ”). All references to dollars ($) in this news release are to United States dollars (US$).
Pitarrilla is a large undeveloped silver, lead, and zinc project located 160 kilometres north of Durango City, in northern Mexico. The Pitarrilla property consists of 4,950 hectares across five concessions and has significant infrastructure in place with direct access to utilities. SSR Mining filed a technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) titled “NI 43-101 Technical Report on the Pitarrilla Project” dated December 14, 2012 (the “ 2012 Technical Report ”). The 2012 Technical Report provided a feasibility study outlining a large, mainly open-pit operation and a mineral resource estimate, which has since been updated by SSR Mining for its Annual Information Form for the financial year ended December 31, 2020 (the “ SSR Mining 2020 AIF ”) (together, the “Historical Estimate” ) 2 .
“The acquisition of Pitarrilla, one of the world’s largest undeveloped silver projects 1 , accelerates our vision to become a premier senior silver producer,” said Dan Dickson, Endeavour’s Chief Executive Officer. “We now have a tremendous growth pipeline, which in addition to Pitarrilla includes the Terronera and Parral projects, in a country where we have extensive experience and expertise. While Terronera is the next project to be developed, we anticipate that Pitarrilla will be a significant asset in our portfolio and may take priority over the advancement of Parral. We will be in a position to make such a decision once we complete further drilling and analyze the economics of various scales and options for production.”
Total Consideration
Total consideration payable on closing of the Transaction is $70 million, consisting of $35 million in Endeavour shares and a further $35 million in cash or in Endeavour shares at the election of SSR Mining and agreed to by Endeavour. The number of Endeavour shares to be issued will be based on a deemed price of $4.0805 per share, being the volume weighted average price of Endeavour’s common shares on the New York Stock Exchange (“ NYSE ”) for the 10 business days immediately preceding the date of signing the definitive agreement. The shares will be subject to a hold period of four months and one day following the date of closing. SSR Mining will retain a 1.25% NSR Royalty on Pitarrilla. Endeavour will have matching rights to purchase the NSR Royalty in the event SSR Mining proposes to sell it. Any cash component will be satisfied with cash on hand. As at September 30, 2021, Endeavour had $101 million in cash and cash equivalents and $129 million in working capital.
Strategic Rationale for Acquisition Acquiring One of the World’s Largest Undeveloped Silver Projects As outlined in the 2012 Technical Report and updated in the SSR Mining 2020 AIF, Pitarrilla has the following mineral resource estimate which Endeavour is treating as a Historical Estimate 3 : a measured & indicated mineral resource (open-pit and underground) of 525.27 million ounces (oz) silver (Ag) in 164.79 million tonnes grading 99.1 grams per tonne (gpt) Ag. an open-pit inferred mineral resource of 21.21 million oz Ag in 8.52 million tonnes at an average grade of 77.4 gpt and underground inferred mineral resource of 5.46 million oz Ag in 1.23 million tonnes at a grade of 138.1 gpt. By way of comparison, Endeavour Silver has the following mineral reserve and resource estimates 4 as outlined in its Annual Information Form for the year ended December 31, 2020: a proven and probable mineral reserve of 86.3 million oz silver equivalent (AgEq) from 6.99 million tonnes at 380 gpt AgEq. a measured & indicated mineral resource of 43.7 million oz AgEq in 4.40 million tonnes at an average grade of 309 gpt AgEq. an inferred mineral resource of 87.13 million oz AgEq in 8.04 million tonnes at an average grade of 337 gpt AgEq. Pitarrilla Leverages Endeavour’s Platform and Experience in Mining-Friendly Mexico Acquisition is an excellent fit for Endeavour’s experienced regional team, which has a successful development, exploration and underground mining track record. Accretive Acquisition at an Attractive Valuation Once a current resource is defined, Pitarrilla is expected to be substantially accretive on a silver equivalent resource per share metric -- anticipate announcing a current resource in 2022. Endeavour expects to maintain significant silver exposure, silver beta and trading multiples. Pitarrilla provides additional optionality in a rising silver price environment. Enhances Endeavour’s Attractive Growth Pipeline Pitarrilla, together with Endeavour’s Terronera and Parral projects, form the key cornerstones of Endeavour’s mid to long-term growth profile. Over the next several years, analyze the economics of various scales of production, including underground option, and then advance towards potential development and production to strengthen Endeavour’s long-term production and free cash flow profile. Currently categorized as a development asset, Pitarrilla has been de-risked by SSR Mining as follows: several key exploration and mining permits have been obtained; and collaboration agreements are in place with the local community. Potential Exploration Upside as Land Package Remains Largely Underexplored Deposit remains open with minimal drilling completed to explore the deposit at depth. Significant underexplored land package with an opportunity to make new discoveries. The geology at Pitarrilla and at Endeavour’s underground mines – Guanacevi and Bolanitos – is broadly similar. Upside potential from upper oxide resource as well as open-pit and underground optionality.Approvals and TimingThe Transaction has been approved by the board of directors of Endeavour. Closing of the Transaction remains subject to TSX and NYSE regulatory approvals and receipt of Mexican Federal Economic Competition Commission approval, as well as customary closing conditions for a transaction of this kind, which is expected to occur in the first half of 2022. On closing, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production. Advisors and CounselPI Financial acted as Endeavour’s financial advisor. Koffman Kalef LLP acted as the Company’s legal counsel.
Conference Call and Webcast
Management will host a live conference call and audio webcast later today to discuss the highlights of the Transaction as follows: Date & Time: Thursday, January 13, 2022 at 1:00 p.m. PT / 4:00 p.m. ET
Telephone: Toll-free in Canada and the US +1-800-319-4610 Local or International +1-604-638-5340 Please allow 10 minutes to be connected to the conference call.
Webcast: Pitarrilla Acquisition Webcast
Replay: A replay of the conference call will be available by dialing +1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US. The required passcode is 8339#. The replay will also be available on the Company’s website at www.edrsilver.com .
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Post by Entendance on Jan 20, 2022 6:21:09 GMT -5
VANCOUVER, British Columbia, Jan. 19, 2022 Endeavour Silver Corp. (“Endeavour” or the “Company”) (TSX: EDR, NYSE: EXK) announces today that it filed two technical reports (the “Technical Reports”) prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Technical Reports are titled “NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanaceví Project, Durango State, Mexico” and “NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolañitos Project, Guanajuato State, Mexico”. Both Technical Reports have an effective date of December 31, 2020 and support the disclosure made by the Company in its February 3, 2021 news release announcing the updated 2020 Mineral Reserve and Resource Estimates. There are no material differences in the Technical Reports from the information disclosed in the February 3, 2021 news release and the date of this filing. The Technical Reports are available for download under the Company's profile on SEDAR www.sedar.com About Endeavour SilverEndeavour Silver is a mid-tier precious metals mining company that operates two high-grade, underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. The Company’s philosophy of corporate social integrity creates value for all stakeholders.
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Post by Entendance on Feb 17, 2022 6:58:48 GMT -5
Q: Why are the all-in sustaining costs at Terronera expected to be much lower than at Endeavour’s other mines?A: As outlined in our "NI 43-101 Technical Report on the Feasibility Study of the Terronera Project, Jalisco State, Mexico" dated October 21, 2021, Terronera is designed to be a classic underground mine with a ramp accessing a shallow deposit that has thick veins varying 1 to 30 metres wide, (averaging 5-6 metres) and has high-grade ore averaging 197 grams per tonne silver and 2.25 grams per tonne gold, or 3.74 grams per tonne silver equivalent at a silver:gold ratio of 79:1. There are two defined ore bodies: the Terronera vein and La Luz vein. La Luz is almost entirely high-grade and the mine plan sequences the high-grade La Luz ore body in the early years to optimize grade and cash flow. In years 1 to 4 production at La Luz is expected to average 7.5 million oz silver equivalent at an average throughput grade of 455 grams per tonne silver equivalent. Terronera’s mine-site all-in sustaining costs, net of by-product credits, are estimated to be $3.24 per payable ounce silver. To put this in context, Endeavour’s consolidated (Guanacevi and Bolanitos) 2022 outlook for AISC is $20-$21 per ounce. The reason underlying the lower AISC at Terronera compared to our other mines is twofold. First, Terronera is higher-grade and has thick veins, which makes it easier and less expensive to mine on a per ounce basis. Second, our existing mines – Guanacevi and Bolanitos – are mature operations and require high levels of sustaining capex (estimated at $32.6 million for 2022), which is captured in the calculation for AISC. Terronera’s sustaining capital expenditures are estimated to be significantly lower over its 12-year mine life due to the thickness and continuity of the defined ore body. In the coming months, Endeavour intends to make a formal decision to commence construction at Terronera, subject to completion of a financing package and receipt of amended permits.
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Post by Entendance on Mar 10, 2022 6:32:37 GMT -5
Endeavour Silver Corp. continues to fill its vault -- hold back precious metals from the market.
Inventory now:1,028,340 oz Silver 1,044 oz Gold
Endeavour Silver Announces Strong Year End 2021 Financial and Operating Results with Earnings Per Share of $0.08
VANCOUVER, British Columbia, March 10, 2022 -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce its financial and operating results for the year ended December 31, 2021. All dollar amounts are in US dollars (US$). “2021 marked another strong year for Endeavour Silver. Our two producing mines – Guanaceví and Bolañitos – generated significant operating cash flow that we are using to extend mine lives and fund future growth,” stated Dan Dickson, CEO of Endeavour Silver. “Investment in the next leg of our growth, the transformational Terronera project, began last fall and is advancing well. While project financing is moving more slowly than expected, the project continues to move forward and with the receipt of financing and board approval in the next couple of months, is still expected to complete commissioning in H1 2024.
2021 Highlights Production Surpasses 2021 Guidance : 4,870,787 ounces (oz) of silver and 42,262 oz of gold for 8.3 million oz silver equivalent (AgEq) . Highest Recorded Revenue in 5 years : Net revenue of $165.3 million from the sale of 3,856,883 oz of silver and 39,113 oz of gold at average realized prices of $25.22 per oz silver and $1,790 per oz gold. Management withheld metal sales during the year and carried a significant metal inventory at year end totaling 1,028,340 oz silver and 1,044 oz gold of bullion inventory and 54,270 oz silver and 2,630 oz gold in concentrate inventory. Improved Net Earnings : $14.0 million, or $0.08 per share, up from net earnings of $1.2 million, or $0.01 per share in 2020. Net earnings in 2021 were impacted by the increased finished goods inventory held, which was carried at a cost of $15.6 million compared to the estimated fair market value of $31.7 million at December 31, 2021. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) ( 2) : $54.9 million, an increase of 87% from 2020. Increased Cash Flow : $32.2 million in operating cash flow before working capital changes ( 2) , an increase of 12%. Mine operating cash flow before taxes ( 2) was $61.9 million, an increase of 10%. Costs Impacted by Industry-Wide Inflationary Pressures : Cash costs (2) of $9.31 per oz payable silver and all-in sustaining costs ( 2 ) of $20.34 per oz payable silver, net of gold credits were slightly above guidance due to increased labour, power and consumables costs. Strong Balance Sheet : Cash position of $103.3 million and working capital ( 2) $121.2 million as at December 31, 2021. Guanaceví Continued to Outperform : Silver and gold grades continued to deliver well above plan and throughput approached plant capacity. Bolañitos’ Performance Remained Steady : Silver grades and plant throughput exceeded plan with gold grades slightly below plan. Encouraging Brownfields Exploration Results from Guanaceví and Bolañitos : Drilling continued to intersect high-grade gold-silver mineralization in the Santa Cruz vein at Guanaceví and to intersect multiple mineralized structures near current workings at Bolañitos. Positive Greenfields Exploration Results from the Parral Project : Drilled over 18,000 metres targeting several areas along the La Colorada vein with encouraging results in areas outside the current mineral resource estimate. Continued to Advance the Terronera Project : Work continued on final detailed engineering, early earth works, critical contracts and procurement of long lead items. The financing and final permitting processes are progressing, however, delays caused by the Omicron variant have slightly extended the anticipated timeline. The Company intends to make a formal construction decision subject to completion of financing and receipt of additional amended permits in the coming months. Sold El Cubo Assets : The Company sold its El Cubo assets in Guanajuato, Mexico to Guanajuato Silver Company (formerly Vangold Mining Corp) for $15 million plus contingent payments of up to $3 million in a transaction that closed April 9, 2021. Suspended Operations at El Compas : Management suspended operations at El Compas in mid-August and is currently evaluating its alternatives for the asset. Acquired Bruner, an Advanced Stage Exploration Project : Ideally situated within Nevada’s Walker Lane northwest trending mineral belt, this acquisition closed on September 1, 2021.
Conference Call A conference call to discuss the Company’s 2021 financial results will be held today at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below. Date & Time: Thursday, March 10, 2022 at 10:00 a.m. PT / 1:00 p.m. ET Telephone: Toll-free in Canada and the US +1-800-319-4610 Local or International +1-604-638-5340 Please allow up to 10 minutes to be connected to the conference call. Replay: A replay of the conference call will be available by dialing (toll-free) +1-800-319-6413 in Canada and the US or +1-604-638-9010 outside of Canada and the US. The replay passcode is 8312#. The replay will also be available on the Company’s website at www.edrsilver.com
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Post by Entendance on Mar 10, 2022 17:25:39 GMT -5
Endeavour Silver Corp. EXK CEO Dan Dickson on Q4 2021 Results
Company Participants Trish Moran - Interim Head of Investor Relations Dan Dickson - Chief Executive Officer Christine West - Chief Financial Officer Don Gray - COO Dale Mah - VP Corporate Development Luis Castro - VP Exploration
Conference Call Participants Joseph Reagor - ROTH Capital Partners Matthew Key - B. Riley Securities Mark Reichman - Noble Financial John Tumazos - John Tumazos Very Independent Research
Trish Moran Thank you, and good day, everyone. Before we get started, I ask that you please view our MD&A, the cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website edrsilver.com With us on today's call is Dan Dickson, Endeavour Silver’s CEO; as well as Christine West, our Chief Financial Officer; Don Gray, Endeavour’s COO; Dale Mah, VP Corporate Development; and Luis Castro, our VP Exploration. Following Dan’s formal remarks, we will open up the call for questions. And now over to you, Dan.
Dan Dickson Thank you, Trish, and welcome, everyone. 2021 was a good year for Endeavour Silver both financially and operationally. Guanacevi and Bolañitos each performed well and the performance offset the impact of suspending the operations at our El Compas midyear. In 2021, on a consolidated basis, we produced 8.3 million ounces of silver equivalents, a 27% increase over the prior year. This put us above the top end of our guidance, which we revised upwards in October. Last year's strong performance was driven primarily by 2 factors: first, increases in the volume of ore processed, ore throughput and recoveries; and secondly, more importantly, a higher average realized silver grade. Revenue rose by 20%, marking a 5-year best bolstered by volume and price growth. Most importantly, this higher revenue translated into increased profit and cash flow with earnings per share of $0.08 and more than $32 million in operating cash flow before changes in working capital. Our cost per ounce metrics were higher than our previous year and above guidance. All-in sustaining costs and cash costs were higher than guidance by 1% and 3%, respectively. Industry-wide inflation has been and continues to be challenged. In 2021, it impacted everything from labor to power to consumables across our operations. Additionally, Guanacevi saw higher expenses associated with third-party ore purchases and operating development. Additionally, royalties were higher, we triggered a special mining tax due to Guanacevi significant production to higher silver prices and profitability. Our financial performance led to a strong balance sheet at year-end. We had cash of $103 million and no long-term debt aside from normal course leases. The total working capital of $121 million, including unsold bullion inventory held at a cost of over $15 million, this bullion had a market value of about $31 million at December 31. With the current prices, we have started to draw down this balance in 2022. Our strong balance sheet sets us up well to build out Terronera. Going into 2021, Terronera was an advanced exploration project. Last fall, it was reclassified as a development project following the completion of a feasibility study and confirmation of its economic viability. The study highlighted many improvements in the project, including increased production and throughput. Upon completion, we expect Terronera will nearly double our production and cut our cost profile in half. The updated study also increased our reserves by 33%, and we believe there is high potential for further growth. Ongoing drill campaigns are showing very encouraging results, and our goal is to publish the latest exploration results in the coming weeks. Clearly, Terronera is transformational. While we await the formal construction go ahead, the project is moving forward. In 2021, $12 million was spent on land acquisitions, initial development and mobile and processing equipment. There is an additional $9.5 million budget for the first quarter of 2022 for site clearing, final detailed engineering, early earthworks, temporary cap and procurement of other long lead items. We'll be seeking Board approval for construction upon completion of a debt financing package and receipt of some amended permits. I'd also like to highlight that while we've been delayed slightly on financing, we are still targeting the first half of 2024 to complete commissioning. With our eye on the future, last year, we started rationalizing our portfolio and dealt with a couple of assets that were no longer the right fit or were too small for us. Early in the year, Guadalupe Calvo project was optioned to Ridgestone Mining and El Cubo was sold to Guanajuato Silver. In August, we suspended operations at our small El Compas operation. We also completed a couple of smaller acquisitions to enhance our flagship assets. First, we added 2 more properties adjacent to the existing historical mine work in the Guanacevi. And secondly, at Parral, we bought out a 1% NSR royalty which we now own 100% of with no royalties encumbered. As well, we purchased the Bruner Project, which is located in the well-known Walker Lane District of Nevada. Our focus is really still on the larger growth projects that will accelerate our vision of being a premier senior silver producer, namely which would be Terronera, Parral and now Pitarrilla. In mid-January, we announced the signing of the definitive agreement to acquire the Pitarrilla project from SSR Mining. Pitarrilla is situated in Durango State, which has a long history of mining and is known as a mining-friendly jurisdiction in Mexico with several mines in operation, including our Guanacevi mine. It's one of the largest undeveloped silver deposits in the world with a historic M&I resource of 525 million ounces of silver and grain close to 100 grams per tonne plus amounts of lead and zinc. There has been significant comprehensive work done by SSR to advance the project and many key permits are in place. As a potential Tier 1 asset Pitarrilla is an exciting project for us. As soon as the transaction closes in Q2, work will immediately commence to redefine the historical resource to a current resource, assess the number of targets and advance the project to an updated economic study. We talked about previous year as well as our exciting future, let's wrap things up with what's in sort of 2022 starting with the guidance for 2022. Our production outlook is on par with the average over the last 3 years and managing costs will be a key focus as we try to offset the impact of rising costs. Guanacevi and Bolañitos are mature assets. We have plans to invest more than $34 million sustaining capital to optimize performance and maximize output over the coming years. Equally important on the list of things to do is to further expand our mineral reserves and resources. Proven and probable reserves and gold -- with silver and gold reserves increased by nearly 30% last year and we have 13 million earmarked across our exploration portfolio to continue our long successful track record through the drill bit. 2022 is going to be an exciting year for the 3 cornerstones of our growth pipeline. Terronera, Parral and Pitarrilla, each of which provide a significant characteristic and opportunity to contribute to our future growth profile. As noted, Terronera is expected to move from funding and approval phase through to construction in the coming months. At Parral, we expect to initiate a PEA in the second half of 2022. And as mentioned earlier, the acquisition of Pitarrilla is expected to close in the second quarter and once closed, the work will begin. Our goal is to find a current resource by the end of this year. Overall, it's going to be another busy year.
Joseph Reagor, ROTH Capital Partners So big picture question that's been being asked on a lot of these calls is just how are you guys handicapping the impact of supply chain inflation? Like are you guys doing anything proactively to prevent any impact on that? And then kind of a second question to that. What inflation rate do you guys assume on costs across the board for this year compared to last?
Dan Dickson Yes. Thanks for the question, Joseph. I mean the two-pronged for 2022 in our budgets, we had 6% to 9% inflation just depending on what the -- whether it was labor or whether it was direct cost input. We had seen power costs increase significantly last year towards the end of the year, and that was all included in our budgeted information. So it ranges depending on what widgets going into the product. Like I say, labor was 6% to 8%, power costs were up almost 28%. And ultimately, we saw that in our 2021 cost as well. So some of that's been dealt with and dealt with in our budgets. But of course, the actual probably quite different than what we've actually estimated into our budgets, and we'll see how that plays out. On a bigger picture, what we're expecting from inflation, I think it's going to continue, and we get a lot of questions on inflation with regards to our capital expenditures and ultimately, Terronera. I think we've done a good job with Terronera with the fact that we've procured some long lead items, most notably our mobile fleet. Some of it's already on site. We have more coming in March. And we ordered that stuff midyear and kind of start moving to make sure that we could get some of these prices locked in. But nonetheless, we're not going to be able to lock in everything. So steel with regards to the plant. It's going to be there. We do have contingencies built into our feasibility study as we work through that. We'll update the market toward we think prices will end up. I think we've done a really good job of trying to keep this moving forward to try to keep the costs in line to where our expectations will be, which is along the lines of the feasibility study. So we'll do our best. I mean of course, inflation is prevalent through all the industry, not just to us. And I think that is going to continue through 2022.
Joseph Reagor Okay. Kind of a follow-up to that and specifically with like Terronera. Would you guys consider delaying the start of construction if -- I think a lot of people believe some of the supply chain inflation is temporary. Do you guys think about that as like maybe it's in the best interest of the long-term value of the project to kick the can until the inflation pulls back a touch.
Dan Dickson Yes. I mean, of course, you consider that. But in our instance, how imperative and transformational Terronera is going to be to us, we aren't going to delay it. We're trying to push it through. And ultimately, the fact that it's going to double our production and cut our cost profile in half, it will completely change kind of our profile as a company. Terronera right now in our feasibility studies got a 12-year mine life. But ultimately, we expect it to be there 20, 25 years. And I know kind of trying to time markets or try to time inflation. At the end of the day, if inflation is up 10% in 2022, slightly still up 2020 -- it's not we're not going to see deflation in 2023 or 2024. So we're going to keep pushing it forward, and it's critical to our company.
Joseph Reagor Okay. And then 1 final thing, if I could. What percentage of the overall cost structure at your mines is fuel, diesel?
Dan Dickson Yes. It's underground vein mine, so it's less than 7%. I mean, it fluctuates somewhere between 6% and 9% on any given year depending on where fuel prices are. So Joseph with an open pit, diesel is a huge cost to us. Our second highest cost after labor is actually power costs through the Electricidad, the CFE in Mexico. So as far as diesel, like I say, it's 6% to 9%, so not a big proportion compared to open pits.
Matthew Key, B. Riley Securities My question is around the long-term grade expectations at Guanacevi. Obviously, really strong implied grade guidance for fiscal year 2022. But I was kind of wondering how we should be thinking about grades longer term. Is it possible that we get back to kind of 2018, 2019 levels in the near term or is that kind of past us at this point?
Dan Dickson At this point, it's past us. So we put out guidance just for the following year, which right now, it's 2022. And the grades will be similar in 2022 is what we have in 2021. And if you look past that, it's really looking at our reserves and resources, which are in our AIF, the grades should continue that in 2023, 2024. But at this point in time, we're not there yet. We have had a significant discovery with El Curso. It continues to grow, and that's where some of those significant grades are coming from. So as prices can also get higher, which is our expectation this year and next year, you could see that grade come down because your cutoffs change in the mine as well. But right now, what we see in 2022 is similar as what we did this past year.
Matthew Key Got it. That's really helpful. And just last 1 from me. I was wondering if you could kind of help frame up what you're seeing as the most promising long-term exploration projects once we get past Terronera here in the next couple of years. And if you could also maybe kind of provide a potential time line on how you see that next big growth projects on the horizon kind of development.
Dan Dickson Yes. I mean you're asking me to kind of pick against the kids that I have. But right now, we have 2 great growth pipeline assets behind Terronera. You got Parral, which is smaller that we're continuing to have exploration success there. And at the end of 2019, we had 40 million ounces defined plus lead and zinc. And ultimately, we've said to the market that we have to grow that to 60 million, 65 million ounces where we think it'd be enough of a scale to have an operation that's of significance to Endeavour and has significant scale to be cost-effective and economically viable. In 2020, we didn't drill it because of COVID. In 2021, we started to drill it, and we have very good results that we put out earlier this year. We're going to continue to drill Parral 2022. And then halfway through the year, hopefully, we have a sufficient resource base that will put a preliminary economic assessment on that. Again, we need a certain scale for it to work, but we think we can get to there. The other asset with Pitarrilla is obviously potentially a Tier 1 asset. I mean, it's one of the world's largest undeveloped silver bodies, and we're excited, extremely excited about it. Obviously, we had a conference call now a couple of months ago when we acquired it from SSR Mining. We'll close that transaction here in Q2 and then build out that current resource. As far as time line between Pitarrilla and Parral, and it depends on prices in the future. And ultimately, we expect a 2-year build process for Terronera. And hopefully, one of those comes in right behind that 2-year build process. At Pitarrilla, we're going to redefine that resource. So right now, it's considered a historic resource done by silver standard. We're going to make that a current resource by doing the work ourselves and issuing a technical report, hopefully, by the end of this year. And then we'll do an economic study on Pitarrilla for 2023. So Pitarrilla, Parral, ultimately, you're looking at something in 2024, 2025 when you get into construction. But I think it's one of the leading sector growth profiles that you can see in our space.
Mark Reichman, Noble Capital Markets So the first question is just really on the Terronera financing. I know you were looking to put an $80 million to $100 million debt facility in place. I was just wondering whether that is still kind of the plan and how those negotiations are going? And if you think you'll have those wrapped up by the end of the second quarter, given that 24-month construction period.
Dan Dickson Yes. You're exactly right. We are looking for debt to $80 million to $100 million. We have $100 million of cash and $120 million of working capital on our books. It went a little slower here in Q4 and in Q1 because of the coronavirus that impacted technical due diligence by the banks. But we're through all that stuff. It's always going a little bit slower than expected. But our hope is to have a commitment from the banks by the end of this quarter.
Mark Reichman And then the second question is, your plate is pretty full at this point with a good pipeline of projects. But would you still entertain any smaller producing acquisitions and what does the landscape look like out there right now for M&A, I guess, in light of the higher prices?
Dan Dickson Yes. I mean we have a corporate development group. Dale is on the call here with our management team today, and we're always looking whether it's a growth asset, whether it's a greenfield exploration asset for twofolds. One, we think we can always improve our asset base. And if there is an asset we can get at the right price, we'd absolutely entertain putting it into our portfolio, especially if it provides cash flow. The landscape, it's ever changing. I think in the world that we live in now, it changes faster than it ever has before. And there's a couple of deals that we've seen over the past year. There's a scarcity in the silver market. Ultimately, we're trying to maintain to be a primary silver producer to maintain our revenue mix above that 51% threshold, which not a lot of our peers have done. So we're interested in primary silver assets and trying to find them difficult and trying to find ones that are profitable are difficult, trying to find one that are cost effective and what we pay for it is also difficult. But nonetheless, we always look. And if there's something that makes sense, we'll pull trigger on it.
Mark Reichman Okay. And I think you've already kind of touched on this earlier on the Parral project that you already have the indicated and inferred resources there of 435 million, you're looking to kind of get to 60 million to 65 million. As it stands today, without any more additional drilling, what do you think you could end up with? I mean do you feel like at this point, you're pretty close to target, and so the updated report that you'll be putting out that there's pretty high confidence that you'll be meeting that threshold?
Dan Dickson Yes. The 60 million to 65 million, been doing a PA, that's our plan, and we've budgeted PA for the end of the year. Now of course, drilling has to continue and has positive results, but we expect that. And I think if you look at our 2021 drill results, they are more favorable than what we released in 2016 to 2018 on Parral. And like I said, I expect that to continue, and if it does continue, we should hit that mark.
John Tumazos, John Tumazos Very Independent Research I was noticing that your tonnes processed through the year, mined and milled rose 17%. And the cost per tonne also rose 17%. Usually, the gain in volume helps to reduce the rate of increase in unit cost. Was there something special going on with the mine that was idled or a downtime or a special maintenance.
Dan Dickson No, John. In our case, you're correct. Our processed tonnes were slightly up, and -- but ultimately, our cost per tonne and operating cost per tonne were up as well. And like I said earlier in the call, it's a function of inflation. And we saw it hit a little bit of everywhere, most notably in power costs. From August to December, our power costs on a monthly basis went up about 30%. And we saw labor cost increase last year and pressure on our professional labor, geologists and engineers. Ultimately, it's something that's prevalent right now through the industry that we are seeing cost pressures and we're trying our best to maintain as well as cost per tonne as best we can. And I think we had a very positive result and the fact that the grades out of Guanacevi are significantly higher. We also saw royalty costs increase last year because of the increased profitability. And ultimately, we paid a 16% royalty at our El Curso mine, which we leased from Frisco a couple of years ago. So like I say, of course, we'd like to keep our costs down as best we can. We're trying to manage it where we can, but we are seeing inflation and global supply constraints impact us.
John Tumazos If I can ask another. I was very excited for you when you bought the Bruner Project for $10 million cash. The predecessor company had permitted the project and represented that it was partly built. I don't know if they spent $25 million on it or $50 million on it. And initially, your disclosures were very succinct. I just assumed that you weren't talking much about it because you got such a good deal. Could you elaborate now that you've had possession of it for 6 months and is a thing that could be producing 40,000 ounces in a couple of years.
Dan Dickson We like the Bruner Project. We were opportunistic. We love the price that we got it for. I mean for those that aren't familiar, it's got a historic resource of 300,000 ounces of gold, 13 million ounces of silver. It did have a historic PEA on it that had a NAV value of about 80 million, kind of contemplated 35,000 to 40,000 tonne or 35,000 to 40,000 gold ounce operation. There is nothing that's partly built on it. It is a greenfield exploration project. So there is no infrastructure substance. So I'm not sure exactly what the predecessors had said in the past, but I can assure you, it is a greenfield exploration project. We are advancing it this year. We'll turn that current -- or the historical resource into current resource. There are a lot of targets at Bruner that we're excited about, and we are excited about it. Like I say, a very opportunistic deal for us. The predecessor got into some debt trouble, and we were lucky enough to be able to acquire it for only $10 million. There's a lot of work left to be done there. We would like to acquire some more land and exploration potential around it. But nonetheless, we'll have more results from that at the end of this year.
John Tumazos So with this rank, fourth in your queue, after Pitarrilla, Parral, Terronera or would El Cubo will be ahead of it? Or sort of where does it rank in your pecking order of projects?
Dan Dickson At this point, it probably ranks behind Parral and Pitarrilla just because where those have been advanced to. But ultimately, the work has got to be done. So we'll let the drill bit tell us where it ranks at the end of 2022. Thanks to everyone listening to our 2021 earnings call. I think 2022 is going to be a good year. Obviously, we see prices elevated, I hope things in Europe get a little bit more stable because ultimately, we want to -- hopefully, there will be a resolution there in the coming months. But we'll continue to do what we're doing, again, trying to advance our development project with Terronera and hopefully come to a construction decision on this shortly. And then ultimately, continue to advance Parral and Pitarrilla where we think we have one of the leading growth profiles in the sector. So thanks, everyone, attending, and I'm sure we'll talk again soon in the next coming months.
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Post by Entendance on Mar 15, 2022 16:12:20 GMT -5
VANCOUVER, British Columbia, March 15, 2022 -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (TSX: EDR, NYSE: EXK) is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by BMO Capital Markets and PI Financial Corp., pursuant to which the Underwriters have agreed to buy on a bought-deal basis 8,081,000 common shares of the Company (the “Common Shares”), at a price of US$4.95 per Common Share for aggregate gross proceeds of approximately US$40 million (the “Offering”). The Company has granted the Underwriters an option, exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Common Shares offered under the Offering to cover over-allotments, if any. The principal objectives for use of the net proceeds of the Offering are to pay the US$35 million cash consideration payable to SSR Mining Inc. at closing in respect of the Company’s acquisition of the Pitarrilla project in Durango State, Mexico and for the Company’s general corporate purposes and working capital. The Offering is expected to close on or about March 21, 2022 and is subject to Endeavour receiving all necessary regulatory approvals and the approval of the Toronto Stock Exchange and the New York Stock Exchange.
The Common Shares will be offered in all provinces of Canada (except Québec) pursuant to a short form base shelf prospectus as accompanied by a prospectus supplement and will be offered in the United States pursuant to a supplement to the Company’s registration statement on Form F-10 registering the Common Shares under the United States Securities Act of 1933, as amended, pursuant to the Multi-Jurisdictional Disclosure System adopted by the United States and Canada. The Common Shares may also be offered on a private placement basis in certain jurisdictions outside of Canada and the United States pursuant to applicable prospectus exemptions. However, there will not be any sale of Common Shares in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of such province, state or jurisdiction.
A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in all provinces of Canada (except Québec). Copies of the final base shelf prospectus, and any applicable shelf prospectus supplement, may be obtained from BMO Capital Markets for which contact details are provided below. This document does not provide full disclosure of all material facts relating to the Common Shares. Investors should read the final base shelf prospectus, the accompanying prospectus supplement and any amendments thereto for disclosure of those facts, especially risk factors relating to the Common Shares, before making an investment decision. Investing in the Common Shares involves risk. See “Risk Factors” in the final base shelf prospectus and in the prospectus supplement. Endeavour has filed a registration statement on Form F-10 (including a base shelf prospectus) with the U.S. Securities and Exchange Commission (“SEC” for the Offering. Before you invest, you should read the prospectus supplement relating to the Offering, the base shelf prospectus in that registration statement and other documents Endeavour has filed with the SEC for more complete information about Endeavour and the Offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Company, any Underwriter, or any dealer participating in the Offering will arrange to send you the prospectus or you may request it, in Canada from BMO Capital Markets, Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario L6S 6H2 by telephone at 905-791-3151 Ext 4020 or by email at torbramwarehouse@datagroup.ca and in the United States from BMO Capital Markets Corp. at 3 Times Square, 27 th Floor, New York, NY 10036 (Attn. Equity Syndicate), or toll-free at 800-414-3627 or by email at bmoprospectus@bmo.com. No securities regulatory authority has either approved or disapproved of the contents of this news release.
About Endeavour Silver Corp. Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico: the Guanaceví Mine in Durango and the Bolañitos Mine in Guanajuato. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.
Contact Information Trish Moran Interim Head of Investor Relations Toll free: (877) 685-9775 Tel: (416) 564-4290 Email: pmoran@edrsilver.com Website: www.edrsilver.com
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Post by Entendance on Mar 23, 2022 8:36:59 GMT -5
Endeavour Silver Corp.TSX: EDR, NYSE: EXK is pleased to announce the completion of its prospectus offering announced on March 15, 2022 for the issuance of a total of 9,293,150 common shares (“ Common Shares ”) at a price of US$4.95 per Common Share for aggregate gross proceeds of US$46,001,092, including the exercise of the over-allotment option in full (the “ Offering ”). The Offering was co-led by BMO Capital Markets and PI Financial Corp., together with a syndicate of underwriters consisting of CIBC World Markets Inc., B. Riley Securities, Inc. and H.C. Wainwright & Co., LLC.
The Company plans to use the net proceeds of the Offering to pay the US$35 million cash consideration payable to SSR Mining Inc. on completion of the Company’s acquisition of the Pitarrilla project in Durango State, Mexico and for the Company’s general corporate purposes and working capital.
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Post by Entendance on Mar 31, 2022 6:29:13 GMT -5
Endeavour Silver Corp. NYSE: EXK; TSX: EDR announced today that Geoffrey Handley will be retiring from the Company’s board of directors effective March 31, 2022.
“It has been an honour and a genuine pleasure working with my fellow directors and the Company’s management team over the years,” commented Geoff. “Endeavour has come a long way, showing its ability to weather the many storms that mining brings. I have the utmost confidence that the Company will achieve great things in the years ahead.”
“We would like to thank Geoff for his dedication, advice and contribution to the Company throughout his term on Endeavour’s board of directors. Geoff has been with us since 2006, including 9 years as chairman starting in 2012. He played a significant role in the Company’s development,” said Dan Dickson, CEO.
Bradford Cooke, Company founder and Executive Chair, stated, “Geoff joined us in the early years of Endeavour and really helped raise the bar on our performance and our governance. He helped establish our corporate culture of integrity, care, positive attitude, respect and excellence, core values that we still live by today. We will miss Geoff and wish him all the best in his retirement.”
In early January, the Company appointed Amy Jacobsen as an independent director.
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Post by Entendance on Apr 11, 2022 6:07:46 GMT -5
Endeavour Silver Corp. NYSE: EXK; TSX: EDR is pleased to report first quarter 2022 production of 1,314,955 silver ounces (oz) and 8,695 gold oz, for silver equivalent 1 (“AgEq”) production of 2.0 million oz.
“The year is off to a strong start,” stated Dan Dickson, Chief Executive Officer. “Operationally, Guanacevi continues to outperform production expectations and Bolañitos remains steady. Strategically, we made a significant move in January signing a definitive agreement to acquire the Pitarrilla Project, one of the world’s largest undeveloped silver deposits. The addition of Pitarrilla, which is expected to close in the second quarter, significantly enhances our already attractive pipeline of growth projects, which also includes Terronera and Parral.”
Q1 2022 Highlights
Guanacevi Continued to Outperform: Silver and gold production exceeded plan driven by higher grades. Bolañitos’ Performance Remained Steady: Strong silver production, higher silver grades and increased throughput were offset by the impact of lower than anticipated gold production and lower gold grades. Metal Sales and Inventories : Sold 1,717,768 oz silver and 8,381 oz gold during the quarter. Held 608,788 oz silver and 1,911 oz gold of bullion inventory and 59,594 oz silver and 1,931 oz gold in concentrate inventory at quarter end. Advancing the Terronera Project : Work continued on final detailed engineering, early earth works, critical contracts and the procurement of long lead items. The Company intends to make a formal construction decision subject to completion of a financing package and receipt of additional amended permits in the coming months. Announced Definitive Agreement to Acquire the Pitarrilla Project: Endeavour is acquiring Pitarrilla, one of the largest undeveloped silver deposits in the world, from SSR Mining Inc. in a transaction expected to close in Q2 2022. Pitarrilla is located in Durango State, Mexico, which has a long history of mining and is known as a mining-friendly jurisdiction with several mines in operation, including our Guanacevi mine. Completed US$46.0 Million Bought Deal Financing: On March 22, 2022 Endeavour completed a prospectus offering for the issuance of 9,293,150 common shares at a price of US$4.95 per common share for gross proceeds of US$46.0 million, including the exercise of an over-allotment option. The Company plans to use the net proceeds to pay the US$35 million cash consideration payable to SSR Mining Inc. on completion of the Company’s acquisition of the Pitarrilla project and for the Company’s general corporate purposes and working capital.
Q1 2022 Mine Operations
Consolidated silver production increased by 25% to 1,314,955 ounces in Q1 2022 compared to Q1 2021, primarily driven by a 23% increase in silver production at the Guanacevi mine and a 70% increase in silver production at the Bolañitos mine offset by nil production at El Compas, which the Company put on care and maintenance last August.
Gold production decreased by 22% to 8,695 ounces as a 27% increase in gold production at the Guanacevi mine was offset by a 16% decrease in gold production at the Bolañitos mine and nil production at El Compas.
Guanacevi throughput in Q1 2022 was 14% higher than Q1 2021 and silver grades and gold grades were 10% and 13% higher, respectively. Guanacevi throughput met plan and mining the new higher grade El Curso orebody has led to significantly improved grades and mine flexibility. Additionally, supplies of local third-party ores continued to supplement mine production, amounting to 11% of quarterly throughput and contributing to the higher ore grades.
Bolañitos Q1 2022 throughput was 7% higher than Q1 2021 with silver grades 61% higher and gold grades 20% lower. Silver production increased by 70% while gold production decreased by 16% at the Bolañitos mine.
Production Highlights for the Three Months Ended March 31, 2022 & Q1 2022 Production by Mine HERE
Q1 2022 Financial Results and Conference Call The Company’s Q1 2022 financial results will be released before markets open on Wednesday, May 11, 2022 and a telephone conference call will be held the same day at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below. Date & Time: Wednesday, May 11, 2022 at 10:00 a.m. PT / 1:00 p.m. ET Telephone: Toll-free in Canada and the US +1-800-319-4610 Local or International +1-604-638-5340 Please allow up to 10 minutes to be connected to the conference call. Replay: A replay of the conference call will be available by dialing (toll-free) +1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US. The replay passcode is 8312#. The replay will also be available on the Company’s website at www.edrsilver.com .
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Post by Entendance on Apr 27, 2022 3:27:26 GMT -5
Endeavour Silver CEO Dan Dickson Interviewed at 121 Mining Investment - Las Vegas
Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) is pleased to report positive drill results from its ongoing exploration program at its Parral project in the State of Chihuahua, Mexico. Since early December, the Company has drilled over 4,300 metres in 21 holes targeting several areas along the Veta Colorada structure.
Highlights from Recent Drill Results
392 gpt Ag, 0.02 gpt Au, 0.035% Cu, 0.63% Pb and 2.06% Zn for 488 gpt AgEq over a 3.27 m ETW, including 1,895 gpt Ag, 0.05 gpt Au, 0.156% Cu, 3.7% Pb and 6.98% Zn for 2,234 gpt AgEq over 0.17 m (VCU-67) 513 gpt Ag, 0.07 gpt Au, 0.111% Cu, , 1.99% Pb and 1.69% Zn for 644 gpt AgEq over a 1.96 m ETW, including 1,160 gpt Ag, 0.21 gpt Au, 0.231% Cu, 2.71% Pb and 4.63% Zn for 1,439 gpt AgEq over 0.39 m (VCU-69)
Abbreviations include: gpt: grams per tonne; Au: gold; Ag: silver; Cu: copper; Pb: lead; Zn: zinc; ETW: estimated true width; m: metre; HW: hanging wall. Silver equivalents are calculated at a ratio of 80:1 silver:gold, silver price of $23 per troy ounce, copper price of $3.45 per pound, lead price of $0.90 per pound and zinc price of $1.20 per pound.
“These results increase our confidence that we are on the right path towards attaining the estimated mineral resource base necessary to advance the Parral project,” commented Dan Dickson, Chief Executive Officer. “We anticipate preparing a preliminary economic assessment starting late this year.”
History of the Property The Parral project, which was acquired by Endeavour Silver in 2016, is in Hidalgo de Parral, a large historic silver mining district adjacent to the city of Parral, in the State of Chihuahua, Mexico. Classic, high-grade silver, epithermal vein deposits are present in the project district. The 3,432-hectare property is accessible by paved and gravel roads and has access to the local power grid.
Veta Colorada (including the Sierra Plata and El Verde mines) was a past producing mining operation owned by Grupo Mexico that closed in 1991 due to low silver prices. Mineralization, which occurs in a major silver vein structure that ranges from 1 to 30 metres thick, was mined seven levels down to 300-metre depths below surface in places and was traced for seven kilometres.
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Post by Entendance on May 11, 2022 6:05:27 GMT -5
Endeavour Silver Non-GAAP EPS of $0.07 beats by $0.03, revenue of $57.7M beats by $6.28M
May 11, 2022 Endeavour Silver Announces Strong Q1 2022 Financial and Operating Results with Earnings Per Share of $0.07 VANCOUVER, British Columbia, May 11, 2022 -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce its financial and operating results for the three months ended March 31, 2022. All dollar amounts are in US dollars (US$). “Our first quarter performance was strong, putting us on track to achieve our 2022 production guidance,” stated Dan Dickson, CEO of Endeavour Silver. “High-grade ore at Guanacevi was a driving force and is expected to continue throughout the balance of the year, while production at Bolanitos remains solid. Industry-wide inflation is a growing challenge and we continue to look for ways to mitigate its negative impact.”
Added Mr. Dickson, “Looking ahead to the second quarter, we are targeting two major milestones: securing debt financing for Terronera and closing the Pitarrilla transaction. This acquisition, which is fully financed, is expected to close this quarter following receipt of approval from the Mexican Federal Economics Competition Commission. After the deal closes, drilling will commence to verify Pitarrilla’s historical data and update the historical resource. This will become a key focus for us for the balance of 2022.”
Q1 2022 Highlights
Strong Production: 1,314,955 ounces (oz) of silver and 8,695 oz of gold for 2.0 million oz silver equivalent (AgEq) ( 1) . Significant Growth in Net Revenue : Net revenue of $57.7 million from the sale of 1,717,768 oz of silver and 8,381 oz of gold at average realized prices of $24.38 per oz silver and $1,970 per oz gold. Slight Decline in Net Earnings : Net earnings of $11.7 million, or $0.07 per share, down from net earnings of $12.2 million, or $0.08 per share in Q1 2021. Mine operating earnings of $20.3 million, up from mine operating earnings of $5.7 million in Q1 2021. Improved Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) ( 2) : $25.6 million, an increase of 7% from Q1 2021. Increased Cash Flow : $20.6 million in operating cash flow before working capital changes ( 2) , an increase of 293%. Mine operating cash flow before taxes ( 2) increased 101% to $26.7 million. Higher Costs Due to Industry-Wide Inflation: Cash costs ( 2) of $10.21 per oz payable silver and all-in sustaining costs ( 2 ) of $20.90 per oz payable silver, net of gold credits. Cash costs ( 2) were slightly above guidance due to increased labour, power and consumables costs. Healthy Balance Sheet: Cash position of $151.0 million and working capital ( 2) $168.4 million as at March 31, 2022. Guanacevi Continued to Outperform: Production exceeded plan driven by higher grades. Bolañitos Remained Steady: Strong silver production, higher silver grades and increased throughput were offset by lower than anticipated gold production and lower gold grades. Reduced Metal Inventories : Sold 1,717,768 oz silver and 8,381 oz gold during the quarter. Management significantly reduced silver inventory and slightly increased gold inventory during the quarter and carried metal inventory at quarter end totaling 608,788 oz silver and 1,911 oz gold of bullion inventory and 59,594 oz silver and 1,931 oz gold in concentrate inventory. Advanced the Terronera Project : The Terronera project continued to progress as work continued on final detailed engineering, early earth works, critical contracts and the procurement of long lead items. The Company intends to make a formal construction decision subject to completion of a financing package and receipt of additional amended permits in the coming months. Announced Definitive Agreement to Acquire the Pitarrilla Project: Endeavour’s acquisition of Pitarrilla, one of the largest undeveloped silver deposits in the world, is expected to close in Q2 2022. Completed $46.0 Million Bought Deal Financing: On March 22, 2022 Endeavour completed a prospectus offering for the issuance of 9,293,150 common shares at a price of $4.95 per common share for gross proceeds of $46.0 million. The Company plans to use the net proceeds to pay the $35 million cash consideration payable to SSR Mining Inc. on completion of the Company’s acquisition of the Pitarrilla project and for the Company’s general corporate purposes and working capital.
Conference CallA conference call to discuss the Company’s Q1 2022 financial results will be held today at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below. Date & Time: Wednesday, May 11, 2022 at 10:00 a.m. PT / 1:00 p.m. ET Telephone: Toll-free in Canada and the US +1-800-319-4610 Local or International +1-604-638-5340 Please allow up to 10 minutes to be connected to the conference call. Replay: A replay of the conference call will be available by dialing (toll-free) +1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US. The replay passcode is 8312#. The replay will also be available on the Company’s website at www.edrsilver.com .
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Post by Entendance on May 12, 2022 4:50:45 GMT -5
Endeavour Silver Corp. (NYSE:EXK) Q1 2022 Results Conference Call May 11, 2022 1:00 PM ET
Company Participants Trish Moran - Interim Head, IR Dan Dickson - CEO
Conference Call Participants Heiko Ihle - H.C. Wainwright & Co. Joseph Reagor - Roth Capital Partners Lucas Pipes - B. Riley Securities
Trish Moran Thank you, and good day, everyone. Before we get started, I would ask that you view our MD&A, the cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at edrsilver.com. With us on today’s call we have Dan Dickson, Endeavour Silver’s CEO; Christine West, our CFO; and Don Gray, Endeavour’s Chief Operating Officer. Following Dan’s formal remarks, we will then open the call for questions. And now, over to you, Dan.
Dan Dickson Thanks, Trish, and welcome, everyone. ‘22 is off to a strong start. Not only was it a good quarter for our operating mines, we have been very active on building out the long-term future of the Company. First, let’s talk about operations. Consolidated, Q1 production was up 4% year-over-year to 2 million silver equivalent ounces. This was more than enough to offset the impact of suspending our El Compas operations last August. Guanacevi had a great quarter, driven by higher silver and gold grades. And based on where we are mining this high grade ore, it’s expected to continue in the near-term. In addition, we are purchasing ore from local miners, which is further enhancing our grades. This is also expected to continue into the second quarter. At Bolañitos, gold grade and gold ounces produced were down in Q1 while our silver ounces and silver grades reached up significantly higher. Bolañitos production is expected to remain steady and continue to provide mine free cash flow throughout 2022. Ultimately, the first quarter puts us in great shape to achieve this year’s production guidance of between 6.7 to 7.6 million silver equivalent ounces. As noted, consolidate production increased by 4% in the first quarter. However, revenue rose close to 67%. A lot of you listening today -- on today’s call are aware that we have opportunistically withheld metal in 2021. The bullion held at year-end had a market value of about $31 million. Spike in this quarter’s revenue is attributable to the sale of about half of that unsold bullion that we held at year-end. This bullion was sold throughout the first quarter at significantly higher prices than what we saw in December, which contributed to cash flow from operating activities of more than $22 million. As at March 31st, we had $151 million and no long-term debt aside from normal course equipment leases and working capital of $168 million. For the quarter, our all-in sustaining costs per ounce metrics were 5% higher than the previous year, just inside our guidance range of $20 to $21 per ounce. Containing costs continues to be a major focus in this inflationary, supply-constrained environment. While this is an industry-wide issue that is expected to prevail throughout the course of the year, we are closely reviewing our purchasing practices to see where and how we can mitigate the impact. A moment ago I mentioned that we have been actively building out the long-term future of the Company. We are tracking two major milestones here in the second quarter, securing financing for Terronera and closing the Pitarrilla acquisition. First, let me update you where are things down with respect to Terronera, which is our biggest priority. Once completed, Terronera is expected to double our production and cut our cost profile in half. We’re advancing sustainability documentation to meet commercial banking requirements required for project loan financing. We believe this documentation will be beneficial with regards to the long-term sustainability of the project in consultation with the communities and various levels of government. Aside from the delays to site visits and other due diligence caused by COVID, activity on this documentation has been underway for several months and is expected to wrap up by the end of May. While this has put us slightly behind our original schedule, the project continues to move forward. In terms of our schedule, we are still expecting to complete commissioning in the first half of 2024, if we can secure the debt portion of the project financing by the end of this quarter. Last year, the Board approved $21 million to advance the Terronera project while we were working through this financing. We spent $12 million prior to year-end and an additional $6 million in Q1. We are well down the road on site clearing, detailed engineering, early earthworks and camp infrastructure. We have another $9.5 million earmarked to spend at Terronera in the second quarter to complete earthworks, Phase 1 of detailed engineering and the commencement of the permanent camp construction. For us, Terronera is a game-changer, and it’s a very important part of our future. During the first quarter, we also announced the addition of an exciting advanced stage exploration project called Pitarrilla. Situated in Durango State, Mexico, it’s one of the world’s largest undeveloped silver deposits and we believe has the potential to be a Tier 1 asset. We announced this acquisition in mid-January and expect it to close before the end of June, at which time work will immediately commence to define historical resources as a current resource, assess a number of targets and advance the project to an updated economic study. To close the transaction, we’re awaiting approval for the Mexican Federal Economic Competition Commission that’s expected imminently. The $70 million acquisition of Pitarrilla is fully financed. 50% of the purchase price will be Endeavour shares and 50% will be paid in cash. To fund the cash portion, we completed a Bought Deal for $46 million in March. This equity raise, together with the strong operating cash flow this quarter, has really strengthened our balance sheet. One last very important item I want to highlight before we move to Q&A. At the outset of the year, you will recall, we introduced a new sustainability strategy, focusing on three pillars: our people, our planet and our business. I’m pleased to say that tomorrow, we will be releasing our 2021 sustainability report. It reflects our commitment to transparency and reflects our new strategy and branding. We recognize that our long-term success goes beyond achieving financial metrics. This year’s report speaks to our ongoing actions and commitment to help shape a more inclusive and sustainable future for our business and our stakeholders to prosper. I highly recommend you take time to view our new report after it’s published online tomorrow.
Heiko Ihle, H.C. Wainwright & Co. Hey there. Thank you guys for taking my questions. I assume you can hear me okay?
Dan Dickson Yes. You sound great, Heiko.
Heiko Ihle Wonderful. Hey. Earlier on this call, you spoke about adjusting some of your purchasing. I felt that quite interesting as a frustrated consumer who’s been trying to more or less do the same thing when I hire contractors and whatnot, obviously, on a much smaller scale. But, frankly, I’ve really had no or very little success because people have small show-up for jobs or just hold your stupid prices. So maybe if you’d be -- so can you just give us some examples where like negotiating with workers is actually working, and maybe some areas where things are not working and where you really haven’t been able to mitigate the impact of the inflationary pressures, please?
Dan Dickson Yes, sure. I mean, I think some of the obvious areas where we can’t mitigate inflation pressures, and that’s on power costs, and we get most of our power from CFE, the Mexican Federal Commission of Electricity. We’ve seen a significant increase in that. And for us, power costs are our third largest cost. The other -- our largest cost, and obviously, where it’s most difficult to get concessions is labor. And, at the end of the day, with our union contract at Bolañitos and Guanacevi are obviously you don’t never see wages come down. Where we can push is on contractors, but obviously, they’re seeing inflationary costs, but where we do have a little bit of power, it comes down to combining purchasing between Bolañitos and Guanacevi. And obviously, we’ve seen cost increases in cyanide and steel, and those are going to be prevalent because of the primary inputs. But we can get some purchasing power if we can combine that stuff, but we haven’t been overly successful to this date with much. And it’s obviously something that we’re looking at, and we’re going to build Terronera. And I think we’re very lucky on the Terronera front that we’ve sourced a lot of our equipment, a lot of our -- and we’ve gone through Sandvik and a lot of the equipment we purchased with regards to operating is actually already on site. We have a ball mill already on site. So, we have been in front of it in that sense at Terronera. But from an operations standpoint, again, it’s looking at purchasing more volumes that we can share between Bolañitos and Guanacevi and then hopefully, ultimately, Terronera when it comes on line.
Joseph Reagor, Roth Capital Partners So, your G&A expense has kind of fluctuated a bit from quarter-to-quarter last year, so. And I know some of that has to do with the way you guys account for G&A expenses and stock expense. But on a cash basis, how should we like forecast quarterly going forward? What’s a safe cash basis G&A number?
Dan Dickson Yes. You’re right. There is a fluctuation, and that’s from the mark-to-market on deferred share units that are paid to our Board. And as you know, our stock price can be very volatile because of the underlying metal and that causes a lot of mark-to-market fluctuations. But ultimately, our G&A on a cash force and budgeted somewhere between $6 million and $8 million, so ultimately $7 million, and it’s pretty straight line. I think Q1 generally has higher costs just because of the administration stuff with regards to audit. But in general, for the year, you kind of used $1.5 million to $2 million per quarter, it kind of gets you there.
Joseph Reagor Okay. That’s helpful. And then, you mentioned the Pitarrilla acquisition. You’re hoping to get it closed by June. It seems like that’s a little longer than maybe originally was expected. Is it COVID-related delays in Mexico for getting approvals? And how comfortable are you with that June target at this point?
Dan Dickson I think I’m very comfortable with the June target. The biggest thing is COFECE, which is the commission against antitrust, and we’ve been going back and forth with them and submitting information on, ultimately, Endeavour Silver’s market share globally and in Mexico with regard to silver. And so, we’ve submitted all our documentation. They came back with a number of questions actually a number of times. So, it’s our belief we’ve completely answered all their questions. So, it’s now just getting through that process, which we actually think is quite imminent. We think we could have that before May is out. I think we’re being conservative with the June time line. But if we do get down in the coming weeks, we should be able to close relatively quickly after that. But at this point, we’re just waiting for a regulatory approval.
Lucas Pipes, B. Riley Securities I also wanted to ask about the inflationary pressures. And I wondered if you could maybe distinguish a bit between the inflation rates you’re seeing in local currency versus on the U.S. dollar rate, and what percentage of your cost is approximately in local currency? Thank you very much.
Dan Dickson Yes. Very fair question. So, again, labor being our largest cost, which is about 33% of our kind of operating costs, direct operating costs. Those are obviously incurred in Mexican pesos. And then the last 66%, about half comes out of Mexico and half is sort of tied to the U.S. dollar. So ultimately, we’re about 60% to 65% tied to the Mexican peso. Now last year, in 2021, the Mexican peso’s inflation rate was just shy of 6%. This year, it’s tracking a little bit higher than that, similar to what we’re seeing in Canada and the United States. But ultimately, it’s lining up to where the U.S. is. So, it’s not like the Mexican peso is running at a higher inflation rate impacting the Mexican peso, or given us less purchase with our peso. I would imagine that will continue. With oil prices being higher, Mexican peso generally does a little bit better because they are tied quite a bit. And I do expect the tourism industry to pick up with people traveling again with COVID almost behind us.
Lucas Pipes That’s very helpful. Thank you for that. And then just turning to the balance sheet for a moment. You’ve been shoring up financing, and congratulations on that. It feels like things are a bit choppier kind of across the broader capital markets. And I wondered if you could share your perspective on how you look at the balance sheet today? If there might be a desire for more dry powder, or if you’d say it’s pretty bulletproof here? So, I appreciate the perspective on that. Thank you.
Dan Dickson Yes. As I touched on, I mean, our working capital is $168 million as of March 31st. Our cash balance is north of $150 million. Of course, $35 million of that cash will be paid out to SSR when we close Pitarrilla. So, we’re still in a very strong cash position. Obviously, the big thing that’s coming down the pipe for us is a formal construction decision on Terronera. And right now, in our feasibility study, the Terronera initial CapEx is $175 million. It’s going to be paid over two years. So, we do have and been working on for the last six months a debt portion. So, we feel like we have the equity portion with the cash that we have on hand and the cash flow coming from the operations. But ultimately, you want to carry a float in the company and put in about $80 million to $90 million of debt on the book at a project loan financing ability. I think we’re still going to go down that path. We’ve done a lot of work with regards to our sustainability around the Terronera asset for a project loan financing. We think it’s the best use of capital. We think it’s the best route for our shareholders. Carrying $80 million of debt on our balance sheet, I think, is very prudent for our shareholders. And ultimately, that’s where we’re going to go. So, as far as putting more powder on the balance sheet, it’s not at this time. Of course, our corporate development group is always looking at potential to further grow assets that would be accretive. And if it means we have to go out and raise more capital, it means we go out and raise more capital. But it’s not something that we’re looking at this time. I think, with the acquisition of Pitarrilla, with the construction coming of Terronera, we’re quite busy. We’ve got lots going on. I don’t want to absolutely kill our staff. So, hopefully, we can kind of swallow those and get moving on that and then look to see what we can do in 2023 or 2024. Thank you again for everyone for joining us today. Just a reminder that more is our Annual General Meeting of Shareholders, it’s being held at the Metropolitan Hotel in Vancouver at 10:00 a.m. We hope to see you there. And have a good day.
Building on Our Vision of Becoming a Premier Senior Silver Producer PDF
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Post by Entendance on Jul 7, 2022 6:51:24 GMT -5
Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce the successful completion of its acquisition of the Pitarrilla Project (“ Pitarrilla ”) from SSR Mining Inc. (NASDAQ/TSX: SSRM; ASX: SSR) (" SSR Mining ”). Pitarrilla, one of the largest undeveloped silver deposits in the world 1 , is located 160 kilometres north of Durango City, in northern Mexico. Pitarrilla comprises 4,950 hectares across five concessions and has significant infrastructure in place with direct access to utilities. All references to dollars ($) in this news release are to United States dollars. “The addition of the Pitarrilla project elevates our portfolio as a leading mid-tier silver producer with high quality silver exposure and significant growth,” said Dan Dickson, Endeavour’s CEO. “We look forward to bringing our regional expertise to generate long-term value for our shareholders. Our immediate goal is to verify all historical data to prepare a current mineral resource estimate, drill high priority exploration targets, and further define regional targets. The transition process has already begun, and we look forward to building on the successes achieved by SSR Mining.”
Transaction Information Endeavour purchased Pitarrilla by acquiring all the issued and outstanding shares of SSR Durango, S.A. de C.V. from SSR Mining and Silver Standard Ventures Inc. for total consideration of approximately $70 million, comprising $34,909,936.60 in Endeavour common shares and a further $35,066,829.58 in cash, and a 1.25% net smelter returns royalty (“ NSR Royalty ”) on Pitarrilla. As a result, 8,577,380 Endeavour common shares were issued based on a deemed price of $4.0700 per share. The shares are subject to a hold period of four months and one day following the date of closing. Following the closing of this transaction, SSR Mining owns 4.52% of the issued and outstanding common shares of Endeavour. Endeavour will have matching rights to purchase the NSR Royalty in the event SSR Mining proposes to sell it. Management plans to invest $1.8 million for drilling and exploration activities to verify the historical data and define a current resource in 2022.
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Post by Entendance on Jul 28, 2022 4:12:44 GMT -5
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Post by Entendance on Aug 9, 2022 6:10:36 GMT -5
July 8, 2022 Endeavour Silver Reports Strong Q2 2022 Production Results; Higher Grades at the Guanacevi Mine Drive Strong Operational Performance
Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to report second quarter 2022 production of 1,359,207 silver ounces (oz) and 9,289 gold oz, for silver equivalent 1 (“AgEq”) production of 2.1 million oz. Production continues to outpace the 2022 production guidance of 6.7-7.6 million silver equivalent ounces, totaling 4.1 million AgEq oz for the six months ended June 30, 2022.
“Amid ongoing turmoil in the markets due to supply constraints, continued inflation concerns, and uncertainty from the raising of interest rates from historical lows, we had another solid quarter of production” stated Dan Dickson, Chief Executive Officer. “Despite the current macro trends, the Company and precious metals outlook remains optimistic. Given our positive view for short-term precious metal prices, we are comfortable holding back bullion inventory over the quarter for future sale.” “First half production results exceeded plan, so we are well positioned to exceed our guidance for the year. The exceptional ore grades at Guanacevi have put us in this position. While it’s has been gratifying to see grades reach new highs, we expect grades to align with or be slightly above plan for the second half of the year.” Q2 2022 Highlights Guanacevi Continued to Outperform: Silver and gold production exceeded plan driven by higher grades offset by lower tonnes milled. Safety Milestone Attained at Guanacevi: Employees and business partners surpassed 2 million hours worked lost-time injury free. The ICARE values program, together with the “Te Cuido” safety philosophy, keeps focus on our proactive safety orientated culture. Visit our Blog to learn more. Bolañitos’ Performance Remained Steady: Strong silver production, higher silver grades and increased throughput were offset by the impact of lower than expected gold production and gold grades. Metal Sales and Inventories : Sold 602,894 oz silver and 9,792 oz gold during the quarter. Held 1,399,355 oz silver and 2,580 oz gold of bullion inventory and 12,408 oz silver and 588 oz gold in concentrate inventory at quarter end.
Guanacevi Delivers Exceptional Drill Results: Drilling intersected record high-grade silver-gold mineralization on the El Curso property including 5.83 gpt Au and 1,278 gpt Ag for 2,534 gpt AgEq over a 7.5 m estimated true width in hole UCM-93 (see EDR news release dated April 13, 2022 ). Positive Exploration Results at Parral: Drilling continued to intersect high-grade silver mineralization along the Veta Colorada structure. Advancing the Terronera Project : The early works program initiated last year continued, including detail engineering, critical contracts and the procurement of long lead items. Extensive due diligence work continued for project financing. The Company intends to make a formal construction decision subject to completion of a financing package and receipt of additional amended permits in the coming months. Published 2021 Sustainability Report Entitled “Bridge to the Future”: The report outlines Endeavour’s approach to sustainability in the areas of its People, the Planet and the Business. Subsequent to the Quarter End Closed the Acquisition of the Pitarrilla Project on July 6, 2022: The addition of the Pitarrilla project enhances the company’s growth profile while maintaining a silver focus.
Q2 2022 Mine Operations Consolidated silver production increased 27% to 1,359,207 ounces in Q2 2022 compared to Q2 2021, primarily driven by increased silver production at the Guanacevi mine. The El Curso orebody has led to significantly higher grades than planned, allowing for production targets to be met during a period of decreased plant throughput. Local third-party ores continued to supplement mine production, amounting to 17% of quarterly throughput and contributing to the higher ore grades. Guanacevi throughput was 16% lower than prior quarter and lower than plan due to installation of a new cone crusher, which will allow throughput to rise for the second half of the year. Management is reviewing alternatives to further increase throughput above the current 1,200 tpd capacity with changes in areas including grinding and leach. Gold production decreased by 17% to 9,289 ounces primarily due lower gold grades mined at the Bolañitos mine. The increased gold production from Guanacevi offset the gold produced from the El Compas mine, which suspended operations in Q3, 2021. Bolañitos Q2 2022 throughput was consistent with Q2 2021 with silver grades 38% higher and gold grades 17% lower. Silver production increased by 37% while gold production decreased by 17% at the Bolañitos mine. The change in grades were due to typical variations in the ore body.
Production Highlights for the Three and Six Months Ended June 30, 2022 here
Q2 2022 Financial Results and Conference Call The Company’s Q2 2022 financial results will be released before markets open on Tuesday, August 9, 2022 and a telephone conference call will be held the same day at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below. Date & Time: Tuesday, August 9, 2022 at 10:00 a.m. PT / 1:00 p.m. ET Telephone: Toll-free in Canada and the US +1-800-319-4610 Local or International +1-604-638-5340 Please allow up to 10 minutes to be connected to the conference call. Replay: A replay of the conference call will be available by dialing (toll-free) +1-800-319-6413in Canada and the US (toll-free) or+1-604-638-9010outside of Canada and the US. The replay passcode is 9151#. The replay will also be available on the Company’s website at www.edrsilver.com .
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
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