“We are pleased to report a solid start to the year with consolidated production and operating costs meeting expectations,” stated
Q1 2024 Highlights
Production Tracking Towards Upper Range of Guidance: 1,460,006 ounces (oz) of silver and 10,133 oz of gold for 2.3 million oz silver equivalent (AgEq)(1).- Strong Revenue from Higher Realized Prices:
$63.7 million from the sale of 1,756,094 oz of silver and 10,880 oz of gold at average realized prices of$23.47 per oz silver and$2,114 per oz gold. - Cash Flow:
$10.2 million in operating cash flow before working capital changes(2), a decrease of 18% from Q1 2023. - Operating Costs: Cash costs(2) of
$13.19 per oz payable silver and all-in sustaining costs(2) of$21.44 per oz payable silver, net of gold credits. Cash costs(2) and all-in sustaining costs were below guidance mostly due to a higher gold by-product credit. - Balance Sheet: Cash position of
$34.9 million and working capital(2) of$56.4 million . Cash decreased as funds were spent on development activities at Terronera. The Company raised gross proceeds of$38.9 million through issuances, primarily to fund the activities at Terronera. - Drawdown on Terronera Senior Secured Debt Facility: Subsequent to quarter end, the company announced the first drawdown of
$60 million of the$120 million senior secured debt facility and executed hedge contract terms (see news release datedApril 10, 2024 ). - Construction Continues on Schedule at the
Terronera Mine : Overall project progress reached 53% and the project remains on track for commissioning in Q4 2024. Construction activities are advancing with a focus on mechanical and vertical installation (see news release datedApril 23, 2024 ).
Financial Overview
Q1 2024 Highlights | Three Months Ended | |||
2024 | 2023 | % Change | ||
Production | ||||
Silver ounces produced | 1,460,006 | 1,623,545 | (10%) | |
Gold ounces produced | 10,133 | 9,342 | 8% | |
Payable silver ounces produced | 1,450,308 | 1,608,212 | (10%) | |
Payable gold ounces produced | 9,948 | 9,184 | 8% | |
Silver equivalent ounces produced(1) | 2,270,677 | 2,370,905 | (4%) | |
Cash costs per silver ounce(2) | 13.19 | 11.12 | 19% | |
Total production costs per ounce(2)) | 18.90 | 15.43 | 23% | |
All-in sustaining costs per ounce(2) | 21.44 | 20.16 | 6% | |
Processed tonnes | 221,794 | 211,073 | 5% | |
Direct operating costs per tonne(2) | 145.75 | 132.11 | 10% | |
Direct costs per tonne(2) | 181.77 | 169.49 | 7% | |
Financial | ||||
Revenue ($ millions) | 63.7 | 55.5 | 15% | |
Silver ounces sold | 1,756,094 | 1,667,408 | 5% | |
Gold ounces sold | 10,880 | 9,126 | 19% | |
Realized silver price per ounce | 23.47 | 23.16 | 1% | |
Realized gold price per ounce | 2,114 | 1,917 | 10% | |
Net earnings (loss) ($ millions) | (1.2) | 6.5 | (118%) | |
Adjusted net earnings (loss) ($ millions)(2) | (0.2) | 4.5 | (104%) | |
Mine operating earnings ($ millions) | 11.7 | 16.0 | (27%) | |
Mine operating cash flow before taxes ($ millions)(2) | 20.6 | 22.4 | (8%) | |
Operating cash flow before working capital changes(2) | 10.2 | 12.5 | (18%) | |
EBITDA ($ millions)(2) | 13.5 | 19.4 | (30%) | |
Working capital ($ millions)(2) | 56.4 | 92.8 | (39%) | |
Shareholders | ||||
Earnings (loss) per share – basic ($) | (0.01) | 0.03 | (133%) | |
Adjusted earnings (loss) per share – basic ($)(2) | (0.00) | 0.02 | (100%) | |
Operating cash flow before working capital changes per share(2) | 0.04 | 0.07 | (43%) | |
Weighted average shares outstanding | 227,503,581 | 190,274,768 | 20% |
(1) Silver equivalent (AgEq) is calculated using an 80:1 Ag:Au 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.sedarplus.com and on EDGAR at www.sec.gov.
For the three months ended
Gross sales of
After cost of sales of
The Company had operating earnings of
Earnings before income taxes were
The Company realized net loss for the period of
Direct operating costs(2) on a per tonne basis increased to
Consolidated cash costs per oz, net of by-product credits, increased to
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
Conference Call
Management will host a conference call to discuss the Company’s Q1 2024 financial results today at
Date: | |
Time: | |
Telephone: | |
International +1-647-484-8814 | |
Replay: | |
International +1-855-669-9658 | |
Passcode is 0771#; audio replay will be available on Company’s website |
Outside of
About
Contact Information
Tel: (877) 685 - 9775
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com
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Endnotes
1 Silver equivalent (AgEq)
AgEq is calculated using an 80:1 Ag:Au 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
Reconciliation of Working Capital | ||
Expressed in thousands US dollars | As at March 31, 2024 | As at |
Current assets | ||
Current liabilities | 55,357 | 58,244 |
Working capital |
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands of US dollars | Three months ended | |
(except for share numbers and per share amounts) | 2024 | 2023 |
Net earnings (loss) for the period per financial statements | ( | |
Unrealized foreign exchange loss | 136 | 1,095 |
Change in fair value of investments | 861 | (3,097) |
Adjusted net earnings (loss) | ( | |
Basic weighted average share outstanding | 227,503,581 | 190,274,768 |
Adjusted net earnings (loss) per share | ( |
Reconciliation of Mine Operating Cash Flow Before Taxes
Expressed in thousands of US dollars | Three Months Ended | |
2024 | 2023 | |
Mine operating earnings per financial statements | ||
Share-based compensation | 79 | 132 |
Amortization and depletion | 8,877 | 6,253 |
Mine operating cash flow before taxes |
Reconciliation of Operating Cash Flow Before Working Capital Changes and Operating Cash Flow Before Working Capital Changes Per Share
Expressed in thousands of US dollars | Three Months Ended | |
(except for per share amounts) | 2024 | 2023 |
Cash from (used in) operating activities per financial statements | ( | |
Net changes in non-cash working capital per financial statements | (5,651) | (12,902) |
Operating cash flow before working capital changes | ||
Basic weighted average shares outstanding | 227,503,581 | 190,274,768 |
Operating cash flow before working capital changes per share |
Reconciliation of EBITDA and Adjusted EBITDA
Expressed in thousands of US dollars | Three Months Ended | |
2024 | 2023 | |
Net earnings (loss) for the period per financial statements | ||
Depreciation – cost of sales | 8,877 | 6,253 |
Depreciation – exploration | 159 | 278 |
Depreciation – general & administration | 99 | 62 |
Finance costs | 135 | 259 |
Current income tax expense | 5,667 | 4,445 |
Deferred income tax expense (recovery) | (233) | 1,676 |
EBITDA | ||
Share based compensation | 1,170 | 1,625 |
Unrealized foreign exchange loss | 136 | 1,096 |
Change in fair value of investments | 861 | (3,097) |
Adjusted EBITDA |
Reconciliation of Cash Cost Per Silver Ounce, Total Production Costs Per Ounce, Direct Operating Costs Per Tonne, Direct Costs Per Tonne
Three Months Ended | Three Months Ended | |||||||||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | Total | |||||||
Direct production costs per financial statements | ||||||||||||
Smelting and refining costs included in net revenue | - | 493 | 493 | - | 656 | 656 | ||||||
Opening finished goods | (7,137 | ) | (699 | ) | (7,836 | ) | (4,953 | ) | (245 | ) | (5,198 | ) |
Closing finished goods | 2,314 | 651 | 2,965 | 4,848 | 1,063 | 5,911 | ||||||
Direct operating costs | 22,063 | 10,264 | 32,327 | 18,040 | 9,845 | 27,885 | ||||||
Royalties | 6,332 | 76 | 6,408 | 6,471 | 64 | 6,535 | ||||||
Special mining duty (1) | 1,521 | 60 | 1,581 | 1,270 | 85 | 1,355 | ||||||
Direct costs | 29,916 | 10,400 | 40,316 | 25,781 | 9,994 | 35,775 | ||||||
By-product gold sales | (10,731 | ) | (12,265 | ) | (22,996 | ) | (8,433 | ) | (9,064 | ) | (17,497 | ) |
Opening gold inventory fair market value | 2,909 | 619 | 3,528 | 2,740 | 354 | 3,094 | ||||||
Closing gold inventory fair market value | (871 | ) | (815 | ) | (1,722 | ) | (2,500 | ) | (995 | ) | (3,495 | ) |
Cash costs net of by-product | 21,223 | (2,097 | ) | 19,126 | 17,588 | 289 | 17,877 | |||||
Depreciation | 5,815 | 3,062 | 8,877 | 3,474 | 2,779 | 6,253 | ||||||
Share-based compensation | 62 | 17 | 79 | 66 | 66 | 132 | ||||||
Opening finished goods depreciation | (1,459 | ) | (197 | ) | (1,656 | ) | (862 | ) | (60 | ) | (922 | ) |
Closing finished goods depreciation | 770 | 219 | 989 | 1,115 | 355 | 1,470 | ||||||
Total production costs |
Three Months Ended | Three Months Ended | |||||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | Total | |||
Throughput tonnes | 115,004 | 106,790 | 221,794 | 102,375 | 108,698 | 211,073 | ||
Payable silver ounces | 1,331,735 | 118,573 | 1,450,308 | 1,435,604 | 172,608 | 1,608,212 | ||
Cash costs per silver ounce | ( | ) | ||||||
Total production costs per ounce | ||||||||
Direct operating costs per tonne | ||||||||
Direct costs per tonne |
Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars | Three Months Ended | Three Months Ended | ||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | Total | |
Cash costs net of by-product | ( | |||||
Operations share-based compensation | 62 | 17 | 79 | 66 | 66 | 132 |
Corporate general and administrative | 2,204 | 801 | 3,005 | 2,616 | 878 | 3,494 |
Corporate share-based compensation | 690 | 250 | 940 | 1,019 | 342 | 1,361 |
Reclamation - amortization/accretion | 102 | 77 | 179 | 79 | 62 | 141 |
Mine site expensed exploration | 122 | 314 | 436 | 379 | 313 | 692 |
Equipment loan payments | 128 | 220 | 348 | 245 | 487 | 732 |
Capital expenditures sustaining | 4,716 | 2,266 | 6,982 | 5,690 | 2,301 | 7,991 |
All-In-Sustaining Costs | ||||||
Growth exploration and evaluation | 3,524 | 3,063 | ||||
Growth capital expenditures | 37,905 | 12,726 | ||||
All-In-Costs |
Three Months Ended | Three Months Ended | |||||
Guanaceví | Bolañitos | Total | Guanaceví | Bolañitos | Total | |
Throughput tonnes | 115,004 | 106,790 | 221,794 | 102,375 | 108,698 | 211,073 |
Payable silver ounces | 1,331,735 | 118,573 | 1,450,308 | 1,435,604 | 172,608 | 1,608,212 |
Silver equivalent production (ounces) | 1,665,648 | 605,028 | 2,270,677 | 1,774,964 | 595,941 | 2,370,905 |
All-In Sustaining Cost per ounce |
Expressed in thousands of US dollars | Three Months Ended | |
(except for per share amounts) | 2024 | 2023 |
Mine site expensed exploration | ||
Growth exploration and development | 3,524 | 3,063 |
Total exploration and development | ||
Exploration and development depreciation | 159 | 278 |
Exploration and development share-based compensation | 151 | 131 |
Exploration and development expense |
Reconciliation of
Expressed in thousands of US dollars | Three Months Ended | |
(except for per share amounts) | 2024 | 2023 |
Capital expenditures sustaining | ||
Growth capital expenditures | 37,905 | 12,726 |
Property, plant and equipment per Condensed Consolidated Interim Statement of Cashflow |
Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce
Expressed in thousands of US dollars | Three Months Ended | |
(except for per share amounts) | 2024 | 2023 |
Gross silver sales | ||
Silver ounces sold | 1,756,094 | 1,667,408 |
Realized silver price per ounces |
Expressed in thousands of US dollars | Three Months Ended | |
(except for per share amounts) | 2024 | 2023 |
Gross gold sales | 22,996 | |
Gold ounces sold | 10,880 | 9,126 |
Realized gold price per ounces |
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of
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 changes in production and costs guidance; the ongoing effects of inflation and supply chain issues on mine economics; national and local governments, legislation, taxation, controls, regulations and political or economic developments in
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, forecasted mine economics as of 2024, 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.
Source:
2024 GlobeNewswire, Inc., source