Endeavour Silver (EXK) Q3 2024 earnings summary

Executive summary

• Q3 2024 was marked by operational challenges at Guanaceví due to a trunnion failure, reducing processing to 50% capacity, but temporary modifications allowed continued production and full capacity is expected to return by December 2024.

• Terronera project construction reached 77% completion by September 30, with over $258 million spent and commissioning on track for late Q4 2024.

• 2024 year-to-date consolidated production reached 3.65 million oz silver and 29,971 oz gold, totaling 6.0 million silver equivalent oz.

• Community engagement and local hiring remain strong, with over 750 people on site and multiple local initiatives supported.

• Adjusted net income was $1.6 million, or $0.01 per share, after excluding non-cash and unusual items; reported net loss was $17.3 million due to derivative and foreign exchange losses.

Financial highlights

• Q3 2024 revenue was $53.4 million, up 8% year-over-year, driven by higher realized silver and gold prices despite lower silver sales volumes.

• Mine operating cash flow before taxes increased 85% to $19.6 million; adjusted EBITDA was $13.9 million, up 278% year-over-year.

• Net loss for Q3 was $17.3 million, compared to a $2.3 million loss in Q3 2023, mainly due to a $19.4 million loss on derivatives and $3.1 million foreign exchange loss.

• Cash position at quarter-end was $54.9 million, with working capital of $29.4 million.

• YTD 2024 production: 3,991,055 oz silver and 30,179 oz gold sold.

Outlook and guidance

• 2024 consolidated production guidance is 7.3–7.6 million silver equivalent ounces, with Q4 production expected to mirror Q3.

• Full capacity at Guanaceví is anticipated by December 2024, and Terronera commissioning remains on schedule for year-end.

• 2025 cost and production guidance for Terronera will be provided after ramp-up, expected in early 2025.

• Management withdrew 2024 cost guidance in August due to operational uncertainties at Guanaceví and ongoing cost variability.

• Terronera expected to nearly double company production once operational, with average annual output of 4.0 million oz silver and 38,000 oz gold over a 10-year mine life.