Endeavour Silver Announces 3Q22 Financial Results

Endeavour Silver reported its financial and operating results for the 3Q22. The company produced 1,458,448oz of silver, 12 percent more compared to 3Q21, and 9,194 oz of gold, a 13 percent year-over-year decrease.

“This quarter is a continuation of our strong operational performance. With production guidance reaffirmed and a strong fourth quarter expected, we are feeling confident about our 2022 production results,” said Dan Dickson, CEO, Endeavour Silver. 

The gross sales of US$40.4 million in 3Q22 represented a 15 percent increase over the US$35 million in 3Q21. Moreover, the company’s silver oz sales increased 90 percent due to the 12 percent increase in silver production and a smaller buildup of finished goods inventory during 3Q22 compared to 3Q21. In addition, due to a 22 percent decrease in the realized silver price, a 48 percent increase in silver sales materialized.  

Furthermore, the company’s sold gold oz decreased by 11 percent. Added to a 6 percent decrease in realized gold prices, this resulted in a 16 percent decrease in gold sales. These results were mainly driven by the decreased gold grades at the Bolañitos mine and the suspension of production at the El Compas mine. Nonetheless, higher gold production at Guanaceví compensated for El Compas. 

Endeavour Silver had an operating loss of US$1.3 million after exploration and evaluation costs of US$4 million, a general and administrative expense of US$2.2 million as well as a care and maintenance expense of US200,000.

The Canadian corporation registered a net loss for the period of US$1.5 million after an income tax expense of $3.2 million. In 3Q22, earnings were impacted by a US$1.1 million mark-to-market adjustment, resulting in an unrealized loss on investments included in investment and other expenses. 

“We continue to focus on business improvement and cost management initiatives while being mindful of the future. Continuing to advance the Terronera project in a deliberate and disciplined manner towards a construction decision and the completion of the Pitarrilla acquisition, are both significant developments towards the future of the Company,” added Dickson.

The Canadian mining company is advancing in its Terronera Project and announced the definitive agreement to acquire the Pitarrilla Project, one of the largest underdeveloped silver deposits in the world, from SSR Mining. Endeavour Silver intends to make a formal construction decision on Terronera, subject to the completion of a financing package and receipt of additional amended permits in the coming months. On the other hand, the transaction on the Pitarrilla Project is expected to close in 2Q22. Pitarrilla, like Guanacevi, is located in Durango, known in Mexico as a mining-friendly jurisdiction.