Endeavour Silver (EXK) Q2 2025 earnings summary

Executive summary

• Achieved a 13% year-over-year increase in silver equivalent production to 2.5 million ounces, driven by the commissioning of Terronera and the integration of Kolpa, which transformed the asset base and production profile.

• Revenue rose 46% year-over-year to $85.3 million, supported by higher sales volumes and favorable silver and gold prices.

• Completed the acquisition and integration of Kolpa in May 2025, adding a third producing mine and increasing annual production profile by 5 million silver equivalent ounces.

• Terronera mine commissioning began in Q2 2025, with throughput ramping up and commercial production imminent.

• Focused on organic growth, with major development at Terronera and advancing Pitarrilla and Parral projects.

Financial highlights

• Net loss of $20.5 million in Q2 2025, mainly due to commissioning losses at Terronera and non-cash derivative and tax expenses.

• Mine operating earnings declined to $7.7 million from $10.2 million year-over-year, despite revenue growth, due to higher costs and Terronera's ramp-up losses.

• Operating cash flow before working capital changes increased 78% year-over-year to $14.4 million.

• Cash position at quarter-end was $52.5 million, with negative working capital.

• Kolpa 2024 revenue: $119.8 million; gross profit: $31.4 million; AISC: $22.80/oz.

Outlook and guidance

• Terronera is nearing commercial production, with throughput averaging 1,900–2,000 tpd and recoveries improving.

• 2025 production guidance: 4.5–5.2 million oz silver, 31–34k oz gold, 7.0–7.9 million oz AgEq.

• Annualized production is expected to reach 20 million silver equivalent ounces by 2026, combining Terronera, Kolpa, and Bolañitos.

• Working capital is expected to improve in the second half of 2025 as Terronera generates positive cash flow.

• Sustaining capital: $34 million; exploration budget: $6.5 million.