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, 2023. All dollar amounts are in US
dollars (US$).
“We are pleased to report a solid start this
year with consolidated production expected to meet full year
guidance,” stated Dan Dickson, CEO of Endeavour Silver. “Guanacevi
continues to perform well, generating strong operating cash flow
which we are reinvesting in the business. Industry-wide inflation
pressures continue to persist, which combined with a strengthening
Mexican Peso, are increasing our operating costs. We are working to
manage our inputs in order to offset these cost pressures as we
pursue productivity and efficiency initiatives.
Added Mr. Dickson, “On April 18, 2023, we
reached a key milestone with the announcement of the project
financing commitment of $120 million and a subsequent formal
construction decision at Terronera. The successful execution of
this underground mine development and mill is integral to achieving
our growth goal to nearly double our production by 2025 and
transform our cost profile. With a seasoned team of development
personnel, we are moving forward confidently and look forward to
establishing an exciting future for our stakeholders.”
Q1 2023 Highlights
-
Production Tracking Towards Upper Range of
Guidance: 1,623,545 ounces (oz) of silver and 9,342 oz of
gold for 2.4 million oz silver equivalent (AgEq)(1).
-
Revenue: $55.5 million from the sale of 1,667,408
oz of silver and 9,126 oz of gold at average realized prices of
$23.16 per oz silver and $1,917 per oz gold.
- Reduced
Earnings Due to Lower Realized Prices: $6.5 million, or
$0.03 per share, down 45% from Q1 2022. Earnings Before Interest,
Taxes, Depreciation & Amortization (EBITDA)(2) of $19.4
million, a decrease of 24% from Q1 2022.
- Cash
Flow: $12.5 million in operating cash flow before working
capital changes(2), a decrease of 39% from Q1 2022. Mine operating
cash flow before taxes(2) also decreased to $22.4 million.
- Higher
Costs Due to Strengthened Peso and Industry-Wide
Inflation: Cash costs(2) of $11.12 per oz payable silver
and all-in sustaining costs(2) of $20.16 per oz payable silver, net
of gold credits. Cash costs(2) were slightly above guidance due to
a strengthening of the Mexican Peso and increased labour, power and
consumables costs. Management continues to work diligently to
reduce costs and improve efficiencies where possible.
- Healthy
Balance Sheet: Cash position of $61.6 million and working
capital(2) of $92.8 million. Cash decreased as funds were spent on
development activities at Terronera.
Subsequent to Q1 2023
- Company
Secures Project Financing and Updates Development Plans for
Terronera: Societe Generale and ING Bank N.V. have entered
into a commitment letter for a Senior Secured Debt Facility of $120
million. The Company has optimized the project’s operating
flexibility from the NI 43-101 Feasibility Study of the Terronera
Project filed in 2021. The Revised scenario approves the
construction of a 2,000 tpd process plant with an initial capital
expenditure of $230 million (see news release dated April 18,
2023).
-
Terronera De-risked with over $58 million Invested to date
into Development: The Board of Directors has approved the
construction of an underground mine and mill at Terronera. The
Company has made significant progress on development activities,
with long-lead item procurement well advanced and a seasoned team
of development personnel established on the ground (see news
release dated April 20, 2023).
Financial Overview (see
appendix for consolidated financial statements)
Q1 2023 Highlights |
Three Months Ended March 31 |
|
|
2023 |
2022 |
% Change |
|
Production |
|
|
|
|
Silver ounces produced |
1,623,545 |
1,314,955 |
23 |
% |
|
Gold ounces produced |
9,342 |
8,695 |
7 |
% |
|
Payable silver ounces produced |
1,608,212 |
1,303,540 |
23 |
% |
|
Payable gold ounces produced |
9,184 |
8,549 |
7 |
% |
|
Silver equivalent ounces produced(1) |
2,370,905 |
2,010,555 |
18 |
% |
|
Cash costs per silver ounce(2)(3) |
11.12 |
10.21 |
9 |
% |
|
Total production costs per ounce(2)(4) |
15.43 |
15.13 |
2 |
% |
|
All-in sustaining costs per ounce(2)(5) |
20.16 |
20.90 |
(4 |
%) |
|
Processed tonnes |
211,073 |
206,147 |
2 |
% |
|
Direct operating costs per tonne(2)(6) |
132.11 |
122.86 |
8 |
% |
|
Direct costs per tonne(2)(6) |
169.49 |
148.53 |
14 |
% |
|
Silver co-product cash costs(7) |
14.93 |
15.18 |
(2 |
%) |
|
Gold co-product cash costs(7) |
1,236 |
1,226 |
1 |
% |
|
Financial |
|
|
|
|
Revenue ($ millions) |
55.5 |
57.7 |
(4 |
%) |
|
Silver ounces sold |
1,667,408 |
1,717,768 |
(3 |
%) |
|
Gold ounces sold |
9,126 |
8,381 |
9 |
% |
|
Realized silver price per ounce |
23.16 |
24.38 |
(5 |
%) |
|
Realized gold price per ounce |
1,917 |
1,970 |
(3 |
%) |
|
Net earnings (loss) ($ millions) |
6.5 |
11.7 |
(45 |
%) |
|
Adjusted net earnings (loss)(11)($ millions) |
9.6 |
17.0 |
44 |
% |
|
Mine operating earnings ($ millions) |
16.0 |
20.3 |
(21 |
%) |
|
Mine operating cash flow before taxes ($ millions)(8) |
22.4 |
26.7 |
(16 |
%) |
|
Operating cash flow before working capital changes(9) |
12.5 |
20.6 |
(39 |
%) |
|
EBITDA(10)($ millions) |
19.4 |
25.6 |
(24 |
%) |
|
Working capital(12)($ millions) |
92.8 |
168.4 |
(45 |
%) |
|
Shareholders |
|
|
|
|
Earnings (loss) per share – basic ($) |
0.03 |
0.07 |
(57 |
%) |
|
Adjusted earnings (loss) per share – basic ($)(11) |
0.05 |
0.10 |
49 |
% |
|
Operating cash flow before working capital changes per
share(9) |
0.07 |
0.12 |
(45 |
%) |
|
Weighted average shares outstanding |
190,274,768 |
171,557,220 |
11 |
% |
|
|
|
|
|
|
(1) Silver equivalent (AgEq) is calculated using
an 80:1 silver:gold ratio.
(2) These are non-IFRS financial measures and
ratios. Further details on these non-IFRS financial measures and
ratios are provided at the end of this press release and in the
MD&A accompanying the Company’s financial statements, which can
be viewed on the Company’s website, on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov.
For the three months ended March 31, 2023,
revenue, net of $0.6 million of smelting and refining costs,
decreased by 4% to $55.5 million (Q1 2022: $57.7 million).
Gross sales of $56.1 million in Q1 2023
represented a 4% decrease over the $58.4 million in Q1 2022. Silver
oz sold decreased by 3%, due to a decrease in finished goods silver
ounces available for sale as at December 31, 2022 compared to
December 31, 2021, offset by increased silver
production. There was a 5% decrease in the realized
silver price, resulting in an 8% decrease in proceeds from silver
sales. Gold oz sold increased by 9% with a 3% decrease in the
realized gold price, resulting in a 6% increase in proceeds from
gold sales. During the period, the Company sold 1,667,408 oz silver
and 9,126 oz gold for realized prices of $23.16 and $1,917 per oz,
respectively, compared to Q1 2022 sales of 1,717,768 oz silver and
8,381 oz gold for realized prices of $24.38 and $1,970 per oz,
respectively. In Q1 2023, London spot prices for silver and gold
averaged $22.55 and $1,890, respectively.
The Company slightly decreased its finished
goods silver inventory and slightly increased its finished goods
gold inventory to 471,069 oz and 1,766 oz, respectively, at March
31, 2023 compared to 530,250 oz silver and 1,707 oz gold at
December 31, 2022. The cost allocated to these finished goods was
$7.4 million at March 31, 2023 compared to $6.1 million at December
31, 2022. At March 31, 2023, the finished goods inventory fair
market value was $14.7 million, compared to $15.8 million at
December 31, 2022.
After cost of sales of $39.54 million (Q1 2022 -
$37.4 million), an increase of 6%, mine operating earnings were
$16.0 million (Q1 2022 - $20.3 million). The cost of sales in Q1,
2023 was impacted by a strengthened Mexican peso, higher labour,
power and consumables costs as the Company, as well as the
industry, has experienced significant inflationary pressures. The
Company also recognized increased royalty costs during Q1, 2023
compared to the prior period as a higher percentage of the
production at Guanacevi has come from the El Curso and El Porvenir
concessions, which are subject to royalties.
The Company had operating earnings of $6.9
million (Q1 2022: $12.6 million) after exploration and evaluation
costs of $4.2 million (Q1 2022: $3.2 million) and general and
administrative costs of $4.9 million (Q1 2022: $4.3 million.
Exploration and evaluation costs increased primarily to additional
spending on the recently acquired Pitarrilla project and general
and administrative costs increased primarily due to investment in a
new ERP system.
Earnings before income taxes were $12.5 million
(Q1 2022: $18.9 million) after finance costs of $0.4 million (Q1
2022: $0.3 million), a foreign exchange gain of $1.9 million (Q1
2022: $0.8 million), and investment and other income of $4.0
million (Q1 2022: $5.8 million). The increase in the foreign
exchange gain is due to the strengthening of the Mexican peso which
increases the value of peso denominated working capital items. The
investment and other income during Q1 2023 primarily resulted from
an unrealized gain on marketable securities and warrants of $3.1
million (Q1 2022: $5.4 million).
The Company realized net earnings for the period
of $6.5 million (Q1 2022: $11.7 million) after an income tax
expense of $6.1 million (Q1 2022: $7.2 million).
Current income tax expense increased to $4.4 million (Q1 2022 -
$1.0 million) and deferred income taxes decreased to $1.7 million
(Q1, 2022: $6.2 million).During 2022, the changes in current and
deferred taxes were driven primarily by the utilization of loss
carryforwards at Guanacevi and during 2023 there were no further
loss carryforwards available to offset against current income tax
and changes in deferred income taxes was primarily derived from
changes in temporary timing differences between deductions for
accounting versus deductions for tax.
Direct operating costs(2) on a per tonne basis
increased to $132.11, up 8% compared with Q1 2022 due to both a
strengthening of the Mexican peso and higher operating costs at
both Guanaceví and Bolanitos from increased inflationary pressure
during 2022 and Q1 2023. As the Mexican peso strengthens, the
Company’s Mexican peso denominated costs are increased in US dollar
terms. Guanaceví and Bolañitos have seen increased labour, power
and consumable costs.
Consolidated cash costs per oz, net of
by-product credits, increased to $11.12 primarily due to the higher
direct costs per tonne slightly offset by a higher gold credit
driven by higher gold production compared to Q1 2022. AISC
decreased by 4% on a per oz basis compared to Q1 2022 as a result
of costs being allocated over increased ounces produced which
offset the increased costs.
The complete financial statements and
management’s discussion & analysis can be viewed on the
Company’s website, on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov. All shareholders can receive a hard copy of the
Company’s complete audited financial statements free of charge upon
request. To receive this material in hard copy, please contact
Galina Meleger, VP of Investor Relations at 604-640-4804, toll free
at 1-877-685-9775 or by email at gmeleger@edrsilver.com
Conference Call
A conference call to discuss the Company’s Q1
2023 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
10, 2023 at 10:00 a.m. PT / 1:00 p.m. ET |
|
|
Telephone: |
Toll-free in Canada and the US +1-800-319-4610Local or
International +1-604-638-5340Please 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 0037#. The replay will also be available on the Company’s
website at www.edrsilver.com. |
About Endeavour Silver –
Endeavour is a mid-tier precious metals mining company that
operates two high-grade underground silver-gold mines in Mexico.
Endeavour is currently advancing construction of the Terronera
project 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
InformationGalina Meleger, Vice President of Investor
Relations Tel: (877) 685 - 9775Email: gmeleger@edrsilver.com
Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, Twitter,
Instagram and LinkedIn
Endnotes
1 Silver equivalent
(AgEq)
AgEq is calculated using an 80:1 silver:gold ratio.
2 Non-IFRS and
Other Financial Measures
and Ratios
Certain non-IFRS and other non-financial
measures and ratios are included in this press release, including
cash costs per silver ounce, total production costs per ounce,
all-in costs per ounce, all-in sustaining cost (“AISC”) per ounce,
direct operating costs per tonne, direct costs per tonne, silver
co-product cash costs, gold co-product cash costs, realized silver
price per ounce, realized gold price per ounce, adjusted net
earnings (loss) adjusted net earnings (loss) per share, mine
operating cash flow before taxes, working capital, operating cash
flow before working capital adjustments, operating cash flow before
working capital changes per share, earnings before interest, taxes,
depreciation and amortization (“EBITDA”), adjusted EBITDA per share
and sustaining and growth capital.
Please see the March 31, 2023 MD&A for
explanations and discussion of these non-IFRS and other
non-financial measures and ratios. The Company believes that these
measures and ratios, in addition to conventional measures and
ratios prepared in accordance with International Financial
Reporting Standards (“IFRS”), provide management and investors an
improved ability to evaluate the underlying performance of the
Company. The non-IFRS and other non-financial measures and ratios
are intended to provide additional information and should not be
considered in isolation or as a substitute for measures or ratios
of performance prepared in accordance with IFRS. These measures and
ratios do not have any standardized meaning prescribed under IFRS,
and therefore may not be comparable to other issuers. Certain
additional disclosures for these non-IFRS measures have been
incorporated by reference and can be found in the section “Non-IFRS
Measures” in the March 31, 2023 MD&A available on SEDAR at
www.sedar.com.
Reconciliation of Working Capital
Expressed in thousands US dollars |
As at March 31, 2023 |
As at December 31, 2022 |
|
|
|
|
|
|
|
Current assets |
|
$138,862 |
|
$146,333 |
|
Current liabilities |
|
46,049 |
|
52,749 |
|
Working capital |
|
$92,813 |
|
$93,584 |
|
|
|
|
|
|
|
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net
Earnings (Loss) Per Share
Expressed in thousands US dollars |
Three Months Ended March 31 |
(except for share numbers and per share amounts) |
2023 |
|
2022 |
Net earnings (loss) for the period per financial statements |
$6,456 |
|
$11,662 |
Change in fair value of investments |
3,097 |
|
5,357 |
Adjusted net earnings (loss) |
$9,553 |
|
$17,019 |
Basic weighted average share outstanding |
190,274,768 |
|
171,557,220 |
Adjusted net earnings (loss) per share |
$0.05 |
|
$0.10 |
|
|
|
Reconciliation of Mine Operating Cash Flow Before Taxes |
|
Expressed in thousands US dollars |
Three Months Ended March 31 |
|
2023 |
|
2022 |
Mine operating earnings per financial statements |
$16,025 |
|
$20,269 |
Share-based compensation |
132 |
|
127 |
Amortization and depletion |
6,253 |
|
6,306 |
Mine operating cash flow before taxes |
$22,410 |
|
$26,702 |
|
|
|
Reconciliation of Operating Cash Flow Before Working Capital
Changes and Operating Cash Flow Before Working Capital Changes Per
Share |
|
Expressed in thousands US dollars |
Three Months Ended March 31 |
(except for per share amounts) |
2023 |
|
2022 |
Cash from (used in) operating activities per financial
statements |
($401) |
|
$21,733 |
Net changes in non-cash working capital per financial
statements |
(12,902) |
|
1,114 |
Operating cash flow before working capital changes |
$12,501 |
|
$20,619 |
Basic weighted average shares outstanding |
190,274,768 |
|
171,557,220 |
Operating cash flow before working capital changes per share |
$0.07 |
|
$0.12 |
|
|
|
Reconciliation of EBITDA and
Adjusted EBITDA |
|
|
Expressed in thousands US dollars |
Three Months Ended March 31 |
|
2023 |
|
2022 |
Net earnings (loss) for the period per financial statements |
$6,456 |
|
$11,662 |
Depreciation and depletion – cost of sales |
6,253 |
|
6,306 |
Depreciation and depletion – exploration |
278 |
|
107 |
Depreciation and depletion – general & administration |
62 |
|
48 |
Depreciation and depletion – care & maintenance |
- |
|
30 |
Finance costs |
259 |
|
177 |
Current income tax expense |
4,445 |
|
1,015 |
Deferred income tax expense |
1,676 |
|
6,222 |
EBITDA |
$19,429 |
|
$25,567 |
Share based compensation |
1,625 |
|
1,527 |
Change in fair value of investments |
3,097 |
|
5,357 |
Adjusted EBITDA |
$24,151 |
|
$32,451 |
Basic weighted average shares outstanding |
190,274,768 |
|
171,557,220 |
Adjusted EBITDA per share |
$0.13 |
|
$0.19 |
|
|
|
Reconciliation of Cash Cost Per Silver Ounce, Total Production
Costs Per Ounce, Direct Operating Costs Per Tonne, Direct Costs Per
Tonne
Expressed in thousands US dollars |
Three Months Ended March 31, 2023 |
Three Months Ended March 31, 2022 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Direct production costs per financial statements |
|
18,145 |
|
|
8,371 |
|
|
26,516 |
|
|
17,884 |
|
|
8,837 |
|
|
26,721 |
|
Smelting and refining costs included in net revenue |
|
- |
|
|
656 |
|
|
656 |
|
|
- |
|
|
654 |
|
|
654 |
|
Opening finished goods |
|
(4,953) |
|
|
(245) |
|
|
(5,198) |
|
|
(10,093) |
|
|
(2,857) |
|
|
(12,950) |
|
Closing finished goods |
|
4,848 |
|
|
1,063 |
|
|
5,911 |
|
|
7,908 |
|
|
2,995 |
|
|
10,903 |
|
Direct operating costs |
|
18,040 |
|
|
9,845 |
|
|
27,885 |
|
|
15,699 |
|
|
9,629 |
|
|
25,328 |
|
Royalties |
|
6,471 |
|
|
64 |
|
|
6,535 |
|
|
4,234 |
|
|
83 |
|
|
4,317 |
|
Special mining duty (1) |
|
1,270 |
|
|
85 |
|
|
1,355 |
|
|
731 |
|
|
244 |
|
|
975 |
|
Direct costs |
|
25,781 |
|
|
9,994 |
|
|
35,775 |
|
|
20,664 |
|
|
9,956 |
|
|
30,620 |
|
By-product gold sales |
|
(8,433) |
|
|
(9,064) |
|
|
(17,497) |
|
|
(5,022) |
|
|
(11,488) |
|
|
(16,510) |
|
Opening gold inventory fair market value |
|
2,740 |
|
|
354 |
|
|
3,094 |
|
|
1,900 |
|
|
4,784 |
|
|
6,684 |
|
Closing gold inventory fair market value |
|
(2,500) |
|
|
(995) |
|
|
(3,495) |
|
|
(3,724) |
|
|
(3,763) |
|
|
(7,487) |
|
Cash costs net of by-product |
|
17,588 |
|
|
289 |
|
|
17,877 |
|
|
13,818 |
|
|
(511) |
|
|
13,307 |
|
Amortization and depletion |
|
3,474 |
|
|
2,779 |
|
|
6,253 |
|
|
3,910 |
|
|
2,396 |
|
|
6,306 |
|
Share-based compensation |
|
66 |
|
|
66 |
|
|
132 |
|
|
63 |
|
|
64 |
|
|
127 |
|
Opening finished goods depreciation and depletion |
|
(862) |
|
|
(60) |
|
|
(922) |
|
|
(1,965) |
|
|
(635) |
|
|
(2,600) |
|
Closing finished goods depreciation and depletion |
|
1,115 |
|
|
355 |
|
|
1,470 |
|
|
1,689 |
|
|
897 |
|
|
2,586 |
|
Total production costs |
$21,381 |
|
$3,429 |
|
$24,810 |
|
$17,515 |
|
$2,211 |
|
$19,726 |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2023 |
Three Months Ended March 31, 2022 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Throughput tonnes |
|
102,375 |
|
|
108,698 |
|
|
211,073 |
|
|
101,253 |
|
|
104,894 |
|
|
206,147 |
|
Payable silver ounces |
|
1,435,604 |
|
|
172,608 |
|
|
1,608,212 |
|
|
1,130,448 |
|
|
173,092 |
|
|
1,303,540 |
|
|
|
|
|
|
|
|
Cash costs per silver ounce |
|
$12.25 |
|
|
$1.67 |
|
|
$11.12 |
|
|
$12.22 |
|
|
($2.95) |
|
|
$10.21 |
|
Total production costs per ounce |
|
$14.89 |
|
|
$19.87 |
|
|
$15.43 |
|
|
$15.49 |
|
|
$12.77 |
|
|
$15.13 |
|
Direct operating costs per tonne |
|
$176.21 |
|
|
$90.57 |
|
|
$132.11 |
|
|
$155.05 |
|
|
$91.80 |
|
|
$122.86 |
|
Direct costs per tonne |
|
$251.83 |
|
|
$91.94 |
|
|
$169.49 |
|
|
$204.08 |
|
|
$94.91 |
|
|
$148.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
March 31, 2023 |
March 31, 2022 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Closing finished goods |
|
4,848 |
|
|
1,063 |
|
|
5,911 |
|
|
7,908 |
|
|
2,995 |
|
|
10,903 |
|
Closing finished goods depletion |
|
1,115 |
|
|
355 |
|
|
1,470 |
|
|
1,689 |
|
|
897 |
|
|
2,586 |
|
Finished goods inventory |
$5,963 |
|
$1,418 |
|
$7,381 |
|
$9,597 |
|
$3,892 |
|
$13,489 |
|
Reconciliation of All-In Costs Per Ounce and AISC
per ounce
Expressed in thousands US dollars |
Three Months Ended March 31, 2023 |
Three Months Ended March 31, 2022 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Cash costs net of by-product |
$17,588 |
$289 |
$17,877 |
$13,818 |
|
($511) |
|
$13,307 |
Operations share-based compensation |
|
66 |
|
66 |
|
132 |
|
63 |
|
64 |
|
|
127 |
Corporate general and administrative |
|
2,616 |
|
878 |
|
3,494 |
|
2,067 |
|
876 |
|
|
2,943 |
Corporate share-based compensation |
|
1,019 |
|
342 |
|
1,361 |
|
917 |
|
389 |
|
|
1,306 |
Reclamation - amortization/accretion |
|
79 |
|
62 |
|
141 |
|
65 |
|
53 |
|
|
118 |
Mine site expensed exploration |
|
379 |
|
313 |
|
692 |
|
352 |
|
250 |
|
|
602 |
Intangible payments |
|
- |
|
- |
|
- |
|
29 |
|
12 |
|
|
41 |
Equipment loan payments |
|
245 |
|
487 |
|
732 |
|
245 |
|
489 |
|
|
734 |
Capital expenditures sustaining |
|
5,690 |
|
2,301 |
|
7,991 |
|
5,646 |
|
2,426 |
|
|
8,072 |
All-In-Sustaining Costs |
$27,682 |
$4,738 |
$32,420 |
$23,202 |
$4,048 |
|
$27,250 |
Growth exploration and evaluation |
|
|
|
3,063 |
|
|
|
2,413 |
Growth capital expenditures |
|
|
|
12,726 |
|
|
|
4,925 |
All-In-Costs |
|
|
$48,209 |
|
|
$34,588 |
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2023 |
Three Months Ended March 31, 2022 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Throughput tonnes |
|
102,375 |
|
108,698 |
|
211,073 |
|
101,253 |
|
104,894 |
|
|
206,147 |
Payable silver ounces |
|
1,435,604 |
|
172,608 |
|
1,608,212 |
|
1,130,448 |
|
173,092 |
|
|
1,303,540 |
Silver equivalent production (ounces) |
|
1,774,964 |
|
595,941 |
|
2,370,905 |
|
1,412,010 |
|
598,545 |
|
|
2,010,555 |
|
|
|
|
|
|
|
Sustaining cost per ounce |
$19.28 |
$27.45 |
$20.16 |
$20.52 |
$23.39 |
|
$20.90 |
All-In-costs per ounce |
|
|
$29.98 |
|
|
$26.53 |
|
|
|
|
|
|
|
Expressed in thousands US dollars |
Three Months Ended March 31 |
2023 |
2022 |
Mine site expensed exploration |
$692 |
$602 |
Growth exploration and evaluation |
3,063 |
2,413 |
Total exploration and evaluation |
3,755 |
3,015 |
Exploration depreciation and depletion |
278 |
107 |
Exploration share-based compensation |
131 |
94 |
Exploration and evaluation expense |
$4,164 |
$3,216 |
Reconciliation of Sustaining Capital and Growth
Capital
Expressed in thousands US dollars |
Three Months Ended March 31 |
2023 |
2022 |
Capital expenditures sustaining |
$7,991 |
$8,072 |
Growth capital expenditures |
12,726 |
4,925 |
Property, plant and equipment expenditures per Consolidated
Statement of Cash Flows |
$20,717 |
$12,997 |
Reconciliation of Silver Co-Product Cash Costs and
Gold Co-Product Cash Costs
Expressed in thousands US dollars |
Three Months Ended March 31, 2023 |
Three Months Ended March 31, 2022 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Direct production costs per financial statements |
$18,145 |
|
$8,371 |
|
$26,516 |
|
$17,884 |
|
$8,837 |
|
$26,721 |
|
Smelting and refining costs included in net revenue |
- |
|
656 |
|
656 |
|
- |
|
654 |
|
654 |
|
Royalties |
6,471 |
|
64 |
|
6,535 |
|
4,234 |
|
83 |
|
4,317 |
|
Special mining duty (1) |
1,270 |
|
85 |
|
1,355 |
|
731 |
|
244 |
|
975 |
|
Opening finished goods |
(4,953) |
|
(245) |
|
(5,198) |
|
(10,093) |
|
(2,857) |
|
(12,950) |
|
Closing finished goods |
4,848 |
|
1,063 |
|
5,911 |
|
7,908 |
|
2,995 |
|
10,903 |
|
Direct costs |
$25,781 |
|
$9,994 |
|
$35,775 |
|
$20,664 |
|
$9,956 |
|
$30,620 |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2023 |
Three Months Ended March 31, 2022 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Silver production (ounces) |
1,439,924 |
|
183,621 |
|
1,623,545 |
|
1,133,850 |
|
181,105 |
|
1,314,955 |
|
Average realized silver price ($) |
23.16 |
|
23.16 |
|
23.16 |
|
24.38 |
|
24.38 |
|
24.38 |
|
Silver value ($) |
33,351,084 |
|
4,252,974 |
|
37,604,058 |
|
27,643,263 |
|
4,415,340 |
|
32,058,603 |
|
|
|
|
|
|
|
|
Gold production (ounces) |
4,188 |
|
5,154 |
|
9,342 |
|
3,477 |
|
5,218 |
|
8,695 |
|
Average realized gold price ($) |
1,917 |
|
1,917 |
|
1,917 |
|
1,970 |
|
1,970 |
|
1,970 |
|
Gold value ($) |
8,029,524 |
|
9,881,606 |
|
17,911,130 |
|
6,849,690 |
|
10,279,460 |
|
17,129,150 |
|
|
|
|
|
|
|
|
Total metal value ($) |
41,380,608 |
|
14,134,580 |
|
55,515,189 |
|
34,492,953 |
|
14,694,800 |
|
49,187,753 |
|
Pro-rated silver costs (%) |
81% |
|
30% |
|
68% |
|
80% |
|
30% |
|
65% |
|
Pro-rated gold costs (%) |
19% |
|
70% |
|
32% |
|
20% |
|
70% |
|
35% |
|
|
|
|
|
|
|
|
Pro-rated silver costs ($) |
20,778 |
|
3,007 |
|
24,233 |
|
16,560 |
|
2,991 |
|
19,957 |
|
Pro-rated gold costs ($) |
5,003 |
|
6,987 |
|
11,542 |
|
4,104 |
|
6,965 |
|
10,663 |
|
|
|
|
|
|
|
|
Silver co-product cash costs ($) |
14.43 |
|
16.38 |
|
14.93 |
|
14.61 |
|
16.52 |
|
15.18 |
|
Gold co-product cash costs ($) |
1,194 |
|
1,356 |
|
1,236 |
|
1,180 |
|
1,335 |
|
1,226 |
|
Reconciliation of Realized Silver Price Per Ounce
and Realized Gold Price Per Ounce
Expressed in thousands US dollars |
Three Months Ended March 31 |
2023 |
2022 |
Gross silver sales |
$38,620 |
$41,884 |
Silver ounces sold |
1,667,408 |
1,717,768 |
Realized silver price per ounces |
$23.16 |
$24.38 |
|
|
|
Expressed in thousands US dollars |
Three Months Ended March 31 |
2023 |
2022 |
Gross gold sales |
$17,497 |
$16,510 |
Gold ounces sold |
9,126 |
8,381 |
Realized gold price per ounces |
$1,917 |
$1,970 |
Cautionary Note Regarding
Forward-Looking Statements
This news release contains “forward-looking
statements” within the meaning of the United States private
securities litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Such forward-looking statements and information herein
include but are not limited to statements regarding the development
and financing of the Terronera Project, including anticipated terms
and timing of the Debt Facility, estimated Project economics,
Terronera’s forecasted operations, costs and expenditures, and the
timing and results of various activities. The Company does not
intend to and does not assume any obligation to update such
forward-looking statements or information, other than as required
by applicable law.
Forward-looking statements or information
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, production
levels, performance or achievements of Endeavour and its operations
to be materially different from those expressed or implied by such
statements. Such factors include but are not limited to the
completion of Societe Generale’s and ING’s due diligence
requirements; the final terms of the Debt Facility and the
Company’s ability to successfully drawdown under the Debt Facility;
the ongoing effects of inflation and supply chain issues on Project
economics; national and local governments, legislation, taxation,
controls, regulations and political or economic developments in
Canada and Mexico; financial risks due to precious metals prices;
operating or technical difficulties in mineral exploration,
development and mining activities; risks and hazards of mineral
exploration, development and mining; the speculative nature of
mineral exploration and development; risks in obtaining necessary
licenses and permits; and challenges to the Company’s title to
properties; as well as those factors described in the section “risk
factors” contained in the Company’s most recent form 40F/Annual
Information Form filed with the S.E.C. and Canadian securities
regulatory authorities.
Forward-looking statements are based on
assumptions management believes to be reasonable, including but not
limited to: the ability of the Company to successfully secure a
debt facility, the continued operation of the Company’s mining
operations, no material adverse change in the market price of
commodities, the Project’s forecasted economics as of 2023, mining
operations will operate and the mining products will be completed
in accordance with management’s expectations and achieve their
stated production outcomes, and such other assumptions and factors
as set out herein. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements or
information, there may be other factors that cause results to be
materially different from those anticipated, described, estimated,
assessed or intended. There can be no assurance that any
forward-looking statements or information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements or information. Accordingly,
readers should not place undue reliance on forward-looking
statements or information.
Appendix
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited – prepared by management)(expressed in thousands of US
dollars, except for shares and per share amounts)
|
|
|
|
|
|
|
Three months
ended |
|
|
March
31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
|
|
|
|
Revenue |
|
$ 55,461 |
|
$ 57,740 |
|
|
|
|
|
Cost of sales: |
|
|
|
|
Direct production costs |
|
|
26,516 |
|
|
26,721 |
Royalties |
|
|
6,535 |
|
|
4,317 |
Share-based payments |
|
|
132 |
|
|
127 |
Depreciation, depletion and amortization |
|
|
6,253 |
|
|
6,306 |
|
|
|
39,436 |
|
|
37,471 |
|
|
|
|
|
Mine operating earnings |
|
|
16,025 |
|
|
20,269 |
|
|
|
|
|
Expenses: |
|
|
|
|
Exploration and evaluation |
|
|
4,164 |
|
|
3,216 |
General and administrative |
|
|
4,917 |
|
|
4,297 |
Care and maintenance costs |
|
|
- |
|
|
190 |
|
|
|
9,081 |
|
|
7,703 |
|
|
|
|
|
Operating earnings |
|
|
6,944 |
|
|
12,566 |
|
|
|
|
|
Finance costs |
|
|
400 |
|
|
298 |
|
|
|
|
|
Other income (expense): |
|
|
|
|
Foreign exchange gain (loss) |
|
|
1,889 |
|
|
811 |
Gain on asset disposal |
|
|
62 |
|
|
- |
Investment and other |
|
|
4,082 |
|
|
5,820 |
|
|
|
6,033 |
|
|
6,631 |
|
|
|
|
|
Earnings before income taxes |
|
|
12,577 |
|
|
18,899 |
|
|
|
|
|
Income tax expense: |
|
|
|
|
Current income tax expense |
|
|
4,445 |
|
|
1,015 |
Deferred income tax expense |
|
|
1,676 |
|
|
6,222 |
|
|
|
6,121 |
|
|
7,237 |
|
|
|
|
|
Net earnings and comprehensive earnings for the period |
|
$ 6,456 |
|
$ 11,662 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share based on net earnings |
|
$ 0.03 |
|
$ 0.07 |
Diluted earnings per share based on net earnings |
|
$ 0.03 |
|
$ 0.07 |
|
|
|
|
|
Basic weighted average number of shares outstanding |
|
|
190,274,768 |
|
|
171,557,220 |
Diluted weighted average number of shares outstanding |
|
|
192,295,971 |
|
|
174,438,202 |
|
|
|
|
|
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION(unaudited –
prepared by management)(expressed in thousands of US dollars)
|
|
|
|
|
March
31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
61,650 |
|
|
$ |
83,391 |
|
Other investments |
|
13,132 |
|
|
|
8,647 |
|
Accounts and other receivables |
|
15,610 |
|
|
|
13,136 |
|
Income tax receivable |
|
1,861 |
|
|
|
4,024 |
|
Inventories |
|
23,305 |
|
|
|
19,184 |
|
Prepaid expenses |
|
22,304 |
|
|
|
16,951 |
|
Loans receivable |
|
1,000 |
|
|
|
1,000 |
|
Total current assets |
|
138,862 |
|
|
|
146,333 |
|
|
|
|
|
Non-current deposits |
|
497 |
|
|
|
565 |
|
Non-current income tax receivable |
|
3,570 |
|
|
|
3,570 |
|
Non-current other investments |
|
- |
|
|
|
1,388 |
|
Non-current IVA receivable |
|
12,055 |
|
|
|
10,154 |
|
Non-current loans receivable |
|
2,722 |
|
|
|
2,729 |
|
Right-of-use leased assets |
|
809 |
|
|
|
806 |
|
Mineral properties, plant and equipment |
|
243,430 |
|
|
|
233,892 |
|
Total assets |
$ |
401,945 |
|
|
$ |
399,437 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
Accounts payable and accrued liabilities |
$ |
35,453 |
|
|
$ |
39,831 |
|
Income taxes payable |
|
4,677 |
|
|
|
6,616 |
|
Loans payable |
|
5,607 |
|
|
|
6,041 |
|
Lease liabilities |
|
312 |
|
|
|
261 |
|
Total current liabilities |
|
46,049 |
|
|
|
52,749 |
|
|
|
|
|
Loans payable |
|
7,329 |
|
|
|
8,469 |
|
Lease liabilities |
|
786 |
|
|
|
812 |
|
Provision for reclamation and rehabilitation |
|
8,766 |
|
|
|
7,601 |
|
Deferred income tax liability |
|
14,620 |
|
|
|
12,944 |
|
Other non-current liabilities |
|
1,020 |
|
|
|
968 |
|
Total liabilities |
|
78,570 |
|
|
|
83,543 |
|
|
|
|
|
Shareholders' equity |
|
|
|
Common shares, unlimited shares authorized, no par value, issued,
issuable |
|
|
|
and outstanding 191,276,399 shares (Dec 31, 2022 - 189,995,563
shares) |
|
661,029 |
|
|
|
657,866 |
|
Contributed surplus |
|
3,973 |
|
|
|
6,115 |
|
Retained earnings (deficit) |
|
(341,627 |
) |
|
|
(348,087 |
) |
Total shareholders' equity |
|
323,375 |
|
|
|
315,894 |
|
Total liabilities and shareholders' equity |
$ |
401,945 |
|
|
$ |
399,437 |
|
|
|
|
|
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS(unaudited – prepared
by management)(expressed in thousands of US dollars)
|
|
|
|
|
Three months ended |
|
March
31, |
|
March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Operating activities |
|
|
|
Net earnings (loss) for the period |
$ |
6,456 |
|
|
$ |
11,662 |
|
|
|
|
|
Items not affecting cash: |
|
|
|
Share-based compensation |
|
1,625 |
|
|
|
1,527 |
|
Depreciation, depletion and amortization |
|
6,619 |
|
|
|
6,462 |
|
Deferred income tax expense (recovery) |
|
1,676 |
|
|
|
6,222 |
|
Unrealized foreign exchange loss (gain) |
|
1,095 |
|
- |
|
(136 |
) |
Finance costs |
|
400 |
|
|
|
298 |
|
Accretion of loans receivable |
|
(93 |
) |
|
|
- |
|
Loss (gain) on asset disposal |
|
(62 |
) |
|
|
(59 |
) |
Loss (gain) on other investments |
|
(3,097 |
) |
|
|
(5,357 |
) |
Performance and deferred share units settled in cash |
|
(2,118 |
) |
|
|
- |
|
Net changes in non-cash working capital |
|
(12,902 |
) |
|
|
1,114 |
|
Cash from (used in) operating activities |
|
(401 |
) |
|
|
21,733 |
|
|
|
|
|
Investing activities |
|
|
|
Proceeds on disposal of property, plant and equipment |
|
- |
|
|
|
34 |
|
Mineral properties, plant and equipment |
|
(20,717 |
) |
|
|
(12,997 |
) |
Purchase of other investments |
|
- |
|
|
|
(1,371 |
) |
Redemption of (investment in) non-current deposits |
|
68 |
|
|
|
2 |
|
Cash used in investing activities |
|
(20,649 |
) |
|
|
(14,332 |
) |
|
|
|
|
Financing activities |
|
|
|
Repayment of loans payable |
|
(1,574 |
) |
|
|
(1,083 |
) |
Repayment of lease liabilities |
|
(63 |
) |
|
|
(52 |
) |
Interest paid |
|
(239 |
) |
|
|
(177 |
) |
Public equity offerings |
|
- |
|
|
|
46,001 |
|
Exercise of options |
|
1,812 |
|
|
|
130 |
|
Proceeds from loans receivable |
|
100 |
|
|
|
- |
|
Share issuance costs |
|
- |
|
|
|
(2,797 |
) |
Performance and deferred share units witholding tax settlement |
|
(294 |
) |
|
|
(1,897 |
) |
Cash from (used in) financing activities |
|
(258 |
) |
|
|
40,125 |
|
|
|
|
|
Effect of exchange rate change on cash and cash equivalents |
|
(433 |
) |
|
|
185 |
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
(21,308 |
) |
|
|
47,526 |
|
Cash and cash equivalents, beginning of the period |
|
83,391 |
|
|
|
103,303 |
|
Cash and cash equivalents, end of the period |
$ |
61,650 |
|
|
$ |
151,014 |
|
Endeavour Silver (TSX:EDR)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Endeavour Silver (TSX:EDR)
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