Endeavour Silver (EXK) Q2 2024 earnings summary

Executive summary

• Q2 2024 production reached 1,312,573 oz silver and 10,549 oz gold, with silver equivalent production of 2.2 million oz, tracking toward the upper end of guidance.

• Terronera project construction is 65% complete, with $204 million of $271 million initial capital spent, and commissioning on track for Q4 2024.

• Revenue rose 17% year-over-year to $58.3 million in Q2, driven by higher realized silver and gold prices.

• The company maintains sector-leading organic growth with core assets in Mexico and significant optionality from Pitarrilla and Parral projects.

• Positioned to meet the upper range of 2024 production guidance.

Financial highlights

• H1 2024 revenue totaled $122 million, with Q2 revenue at $58.3 million; cash position at June 30, 2024, was $68 million, and working capital was $65 million.

• Net loss for Q2 2024 was $14 million, with an adjusted loss of $1 million, compared to adjusted earnings of $1.6 million in Q2 2023.

• Cash costs per silver ounce were $13.43 in Q2, with all-in sustaining costs at $23.13 per ounce.

• Direct operating costs per tonne increased 7% to $140.36, mainly due to a stronger Mexican peso and higher input costs.

• Mine operating cash flow before taxes was $18.9 million in Q2, flat year-over-year.

Outlook and guidance

• 2024 consolidated outlook: 5.3–5.8 million oz silver, 34–38k oz gold, 8.1–8.8 million oz silver equivalent.

• Terronera commissioning remains on schedule for Q4 2024, with first concentrate expected by year-end.

• All-in sustaining costs forecasted at $22–$23/oz, cash costs at $14–$15/oz (net of gold credits).

• Management expects per ounce cost metrics near the lower end of guidance, but direct operating costs per tonne to remain above guidance.

• $30 million sustaining capital and $8.7 million exploration budget planned for 2024.