Endeavour Silver (EXK) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered record production and revenue, with silver equivalent output up 54% year-over-year to 3.4 million ounces and net earnings of $66.5 million, supported by higher realized metal prices and increased throughput at Kolpa.

• Mine operating earnings rose to $74 million, and mine operating cash flow before taxes surged 336% year-over-year to $99.9 million.

• Adjusted net earnings were $45 million ($0.15/share), with EPS of $0.22 (basic), reflecting strong operational performance.

• Cash position at quarter-end was $236–237 million, with working capital of $214 million, providing a robust foundation for ongoing initiatives.

• Achieved significant production growth with three operating mines in Mexico and Peru, and advanced exploration projects supporting organic growth ambitions.

Financial highlights

• All-in sustaining costs (AISC) per silver ounce rose 47% year-over-year to $36.89–$37, driven by higher royalties, purchase material, profit sharing, and mining taxes.

• Cash costs per silver ounce were $23.52, up 53% year-over-year, mainly due to higher royalties and third-party material costs.

• Direct operating costs per ton increased 14% year-over-year, impacted by Mexican peso appreciation and input cost pressures.

• Kolpa mine generated $118.8 million in sales and $31.4 million gross profit in 2024, with AISC of $22.80/oz.

• CapEx guidance for the year increased from $157 million to $181 million, with $18 million in additional expenditures.

Outlook and guidance

• 2026 production expected to reach 14.6–15.6 Moz AgEq, up ~30% from 2025, with lower cash costs and increased output from Kolpa and Terronera.

• Higher silver grades at Terronera expected in H2 2026, with incremental increases anticipated in Q3.

• Pitarrilla feasibility study expected by end of Q3 2026, with construction CapEx estimated at $500–$600 million.

• Updated resource and mine plan for Cobre anticipated by year-end.

• Management continues to advance growth initiatives, leveraging strong cash and working capital positions.