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, positioning for the upper end of 2024 guidance.

• Terronera project construction is 65% complete, with $204 million of $271 million capital spent, and commissioning on track for Q4 2024, expected to boost production in 2025.

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

• Net loss for Q2 was $14 million, largely due to non-cash derivative losses and higher costs; adjusted net loss was $1 million.

• Maintains sector-leading organic growth profile with core assets in Mexico and significant optionality from Pitarrilla and Parral projects.

Financial highlights

• H1 2024 revenue totaled $122 million, with Q2 revenue at $58.3 million, up 17% year-over-year.

• Cash position at quarter-end was $68 million, with working capital of $65 million.

• Cash costs per silver ounce were $13.43 in Q2 and $13.30 for H1; all-in sustaining costs were $23.13/oz in Q2 and $21.22/oz for H1.

• Cost of sales rose 28% to $48 million, impacted by a stronger Mexican peso, inflation, and higher purchased material costs.

• Net loss was $14 million in Q2, compared to a $1 million loss in Q2 2023; adjusted loss was $1 million versus adjusted earnings of $1.6 million last year.

Outlook and guidance

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

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

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

• Production profile for the second half of 2024 expected to be similar to Q2, with silver grades slightly lower and gold grades slightly higher.

• Terronera expected to nearly double production, with average annual output of 4.0 million oz silver and 38,000 oz gold over 10 years.