Endeavour Silver’s Terronera Project Reports 64.5% progress

Endeavour Silver reported significant progress in 2Q24, with the construction of the Terronera project in Jalisco reaching 64.5% completion. The company noted the project is on track to commissioning in 4Q24. 

Endeavour Silver reported on the construction of the Terronera project, which has reached 64.5% completion, with significant advancements made in the upper plant platform surface infrastructure. "We are in our last big push before the finish line and remain focused on delivering value to our stakeholders,” noted Dan Dickson, CEO, Endeavour Silver. 

The financial backing for the Terronera project has been bolstered by a recent US$14.7 million raised through share issuances. Additionally, Endeavour Silver has drawn down US$60 million from its senior secured debt facility, with a further US$15 million drawn following the end of the period. An additional US$45 million remains available for future drawdowns in the latter half of 2024.

The project’s construction progress is closely aligned with Endeavour’s planned budget and timeline. More than US$204 million of the project’s budget has been spent out of a total of US$260 million in commitments, representing 96% of the US$271 million capital budget. The company said it continues to focus on completing the remaining construction phases efficiently and on schedule.

Endeavour’s Production and Finance

Direct operating costs per ton at the Terronera project have increased to US$140.36, up from US$131.79 in the same period last year. This rise is attributed to the strengthening of the Mexican peso, which has raised labor, power, and consumables costs. Despite these challenges, Endeavour remains confident in its ability to manage costs effectively and stay within the project’s financial parameters.

The company produced 1.3Moz of silver and 10,549oz of gold, totaling 2.2Moz AgEq. Revenue for the quarter was US$58.3 million, generated from the sale of 1.2Moz Ag and 9,887oz Au at average realized prices of US$28.94/oz Ag and US$2,374/oz Au. Mine operating cash flow before taxes was stable at US$18.9 million, matching the previous year's figures. However, Endeavour Silver reported an adjusted loss of US$1 million, influenced by non-cash items such as losses on derivative contracts and unrealized foreign exchange fluctuations.