Endeavour Silver Corp.
(“Endeavour” or the “Company”) (NYSE: EXK;
TSX: EDR) is pleased to announce its financial and
operating results for the three and six months ended June 30, 2023.
All dollar amounts are in US dollars (US$).
“While we have been successful at managing the
inflation trend over the last two years, costs are now outpacing
our mitigation efforts. The Mexican Peso has strengthened to a
seven year high against the US dollar, which is impacting costs
across our operations,” stated Dan Dickson, Chief Executive
Officer. “Originally, our 2023 guidance had assumed a 20:1 Mexican
Peso per US dollar exchange rate; however the current rate is just
under 17:1; representing a 14% increase. Our bottom line has been
impacted two-fold, through both inflation and foreign exchange.
Cost control will continue to be a key focus for the operations
group as cost pressures are expected to continue for the remainder
of the year.”
Q2 2023 Highlights
-
Production Tracking In-Line with Guidance:
1,494,000 ounces (oz) of silver and 9,819 oz of gold for 2.3
million oz silver equivalent (AgEq)(1) totalling 4.7 million oz
AgEq for the first half of the year.
-
Revenue: $50.0 million from the sale of 1,299,672
oz of silver and 9,883 oz of gold at average realized prices of
$24.13 per oz silver and $1,976 per oz gold.
- Cash
Flow: $11.1 million in operating cash flow before working
capital changes(2) and $18.8 million in Mine operating cash flow
before taxes(2) .
-
Negative Earnings due to Non-Cash Item: Net loss
of $1.1 million, or $0.01 per share. Adjusted earnings of $2.1
million(2) after adjusting for a $3.2 million change in the fair
value of investments.
- Higher
Costs Due to Strengthened Peso and Industry-Wide
Inflation: Cash costs(2) of $13.52 per oz payable silver
and all-in sustaining costs(2) of $22.15 per oz payable silver, net
of gold credits. Costs were impacted by both inflationary pressures
and a strengthened Mexican Peso. During the year, the Mexican Peso
has appreciated by 14%. Cash cost and all-in-sustaining costs
metrics were also impacted by lower silver grades at Guanacevi due
to changes in mine sequencing. It is expected that grades will
return to plan in Q3.
-
Management Continues to Monitor Macroeconomic Conditions
Closely: Management anticipates these macro trends will
continue for the near term and therefore expects actual cost
metrics to be higher than cost metrics previously provided in the
Company’s 2023 guidance. Management anticipates costs to align to
similar levels with H1 2023 actual cost metrics of $12.27 per oz
for cash cost and $21.11 per oz for AISC.
- Healthy
Balance Sheet: Cash position of $43.5 million and working
capital(2) of $78.2 million. Cash decreased as funds were spent on
development activities at Terronera.
- Metal
Inventory: Finished goods totaled 637,439 oz silver and
1,519 oz gold bullion inventory.
-
Construction and Development Update at Terronera:
The Company has made significant progress on development
activities, with overall construction progress 30% complete. The
project remains on schedule for initial production in Q4 2024. (see
news release dated July 20, 2023)
-
Terronera Debt Financing: Completion of the
definitive loan documentation for the $120 million senior secured
debt facility remains on track for execution in Q3 (see news
release dated April 18, 2023).
- Filed At-The-Market Prospectus Supplement for up to
US$60 million: Proceeds to be used for funding development
of the Terronera mine, and other growth initiatives including the
Pitarrilla and Parral properties as well as prospective
acquisitions and general working capital purposes (see news release
dated June 27, 2023)
Financial Overview (see
appendix for consolidated financial statements)
Three Months Ended June 30 |
Q2 2023 Highlights |
Six Months Ended June 30 |
2023 |
|
2022 |
|
% Change |
2023 |
2022 |
|
% Change |
|
|
|
Production |
|
|
|
1,494,000 |
|
1,359,207 |
|
10 |
% |
Silver ounces produced |
3,117,545 |
2,674,162 |
|
17 |
% |
9,819 |
|
9,289 |
|
6 |
% |
Gold ounces produced |
19,161 |
17,984 |
|
7 |
% |
1,482,255 |
|
1,346,276 |
|
10 |
% |
Payable silver ounces produced |
3,090,467 |
2,649,816 |
|
17 |
% |
9,636 |
|
9,117 |
|
6 |
% |
Payable gold ounces produced |
18,820 |
17,666 |
|
7 |
% |
2,279,520 |
|
2,102,327 |
|
8 |
% |
Silver equivalent ounces produced(1) |
4,650,425 |
4,112,882 |
|
13 |
% |
13.52 |
|
10.08 |
|
34 |
% |
Cash costs per silver ounce(2)(3) |
12.27 |
10.14 |
|
21 |
% |
18.54 |
|
14.26 |
|
30 |
% |
Total production costs per ounce(2)(4) |
16.92 |
14.69 |
|
15 |
% |
22.15 |
|
19.56 |
|
13 |
% |
All-in sustaining costs per ounce (2)(5) |
21.11 |
20.22 |
|
4 |
% |
228,575 |
|
201,361 |
|
14 |
% |
Processed tonnes |
439,648 |
407,508 |
|
8 |
% |
138.16 |
|
132.63 |
|
4 |
% |
Direct operating costs per tonne(2)(6) |
135.26 |
127.69 |
|
6 |
% |
169.59 |
|
148.11 |
|
15 |
% |
Direct costs per tonne(2)(6) |
169.54 |
148.32 |
|
14 |
% |
16.96 |
|
14.12 |
|
20 |
% |
Silver co-product cash costs(7) |
15.90 |
14.74 |
|
8 |
% |
1,367 |
|
1,144 |
|
19 |
% |
Gold co-product cash costs(7) |
1,303 |
1,169 |
|
11 |
% |
|
|
|
Financial |
|
|
|
50.0 |
|
30.8 |
|
62 |
% |
Revenue ($ millions) |
105.5 |
88.5 |
|
19 |
% |
1,299,672 |
|
602,894 |
|
116 |
% |
Silver ounces sold |
2,967,080 |
2,320,662 |
|
28 |
% |
9,883 |
|
9,792 |
|
1 |
% |
Gold ounces sold |
19,009 |
18,173 |
|
5 |
% |
24.27 |
|
22.72 |
|
7 |
% |
Realized silver price per ounce |
23.65 |
23.95 |
|
(1 |
%) |
1,955 |
|
1,840 |
|
6 |
% |
Realized gold price per ounce |
1,937 |
1,900 |
|
2 |
% |
(1.1 |
) |
(11.9 |
) |
91 |
% |
Net earnings (loss) ($ millions) |
5.4 |
(0.3 |
) |
2170 |
% |
2.1 |
|
(4.3 |
) |
149 |
% |
Adjusted net earnings (loss) (11) ($ millions) |
5.5 |
2.0 |
|
172 |
% |
12.5 |
|
4.5 |
|
180 |
% |
Mine operating earnings ($ millions) |
28.6 |
24.7 |
|
15 |
% |
18.8 |
|
8.8 |
|
115 |
% |
Mine operating cash flow before taxes ($ millions)(8) |
41.3 |
35.5 |
|
16 |
% |
11.5 |
|
3.6 |
|
207 |
% |
Operating cash flow before working capital changes(9) |
23.6 |
24.2 |
|
(3 |
%) |
11.4 |
|
(4.3 |
) |
365 |
% |
EBITDA(10) ($ millions) |
30.8 |
21.3 |
|
45 |
% |
78.2 |
|
149.7 |
|
(48 |
%) |
Working capital (12) ($ millions) |
78.2 |
149.7 |
|
(48 |
%) |
|
|
|
Shareholders |
|
|
|
(0.01 |
) |
(0.07 |
) |
86 |
% |
Earnings (loss) per share – basic ($) |
0.03 |
0.00 |
|
100 |
% |
0.01 |
|
(0.02 |
) |
146 |
% |
Adjusted earnings (loss) per share – basic ($)(11) |
0.03 |
0.01 |
|
151 |
% |
0.06 |
|
0.02 |
|
190 |
% |
Operating cash flow before working capital changes per
share(9) |
0.12 |
0.14 |
|
(10 |
%) |
191,446,597 |
|
180,974,609 |
|
6 |
% |
Weighted average shares outstanding |
190,867,192 |
176,291,929 |
|
8 |
% |
|
|
|
|
|
|
|
(1) Silver equivalent (AgEq) is calculated using
an 80:1 silver:gold ratio.
(2) These are non-IFRS financial measures and
ratios. Further details on these non-IFRS financial measures and
ratios are provided at the end of this press release and in the
MD&A accompanying the Company’s financial statements, which can
be viewed on the Company’s website, on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov.
For the three months ended June 30, 2023,
revenue, increased by 62% to $50.0 million (Q2 2022: $30.8
million).
Gross sales of $50.9 million in Q2 2023
represented a 61% increase over the $31.7 million in Q2 2022.
Silver oz sold increased 116% due to both increased production and
the impact of withholding of a significant amount of silver
finished goods inventory during Q2, 2022. There was a
7% increase in the realized silver price resulting in a 131%
increase in proceeds from silver sales. Gold oz sold increased 1%
with a 6% increase in realized gold prices resulting in a 7%
increase in proceeds from gold sales. During Q2, 2023 the Company
sold 1,299,672 oz silver and 9,883 oz gold, for realized prices of
$24.27 and $1,955 per oz, respectively, compared to sales of
602,894 oz silver and 9,792 oz gold, for realized prices of $22.72
and $1,840 per oz, respectively, in the same period of 2022. In Q2,
2023, London spot prices averaged $24.13 and $1,976,
respectively
The Company increased its finished goods to
637,439 oz silver and slightly decreased its finished goods gold
inventory to 1,519 oz gold at June 30, 2023 compared to 530,250 oz
silver and 1,707 oz gold at December 31, 2022. The cost allocated
to these finished goods was $13.8 million as at June 30, 2023,
compared to $7.4 million at March 31, 2023. At June 30, 2023, the
finished goods inventory fair market value was $17.6 million,
compared to $14.7 million at March 31, 2023.
After cost of sales of $37.5 million (Q2 2022 -
$26.3 million), an increase of 43%, mine operating earnings were
$12.5 million (Q2 2022 - $4.5 million). The increase in the cost of
sales compared to the prior period was driven by significantly
higher silver ounces sold in the current period, a strengthened
Mexican peso and higher labour, power and consumables costs as the
Company, as well as the industry, has experienced significant
inflationary pressures. Additionally, the Company incurred
increased royalty costs during Q2, 2023 compared to the prior
period,
The Company had operating earnings of $5.4
million (Q2 2022: operating loss of $1.3 million) after exploration
and evaluation costs of $4.3 million (Q2 2022: $3.8 million),
general and administrative costs of $2.4 million (Q2 2022: $1.3
million) and a write off of exploration properties of $0.4 million
(Q2, 2022 - $0.5 million).
Earnings before income taxes was $4.2 million
(Q2 2022: loss before taxes of $8.8 million) after finance costs of
$0.4 million (Q2 2022: $0.3 million), a foreign exchange gain of
$1.9 million (Q2 2022: loss of $0.3 million), and investment and
other expense of $2.7 million (Q2 2022: $6.9 million). The
investment and other expenses during Q2 2023 primarily resulted
from an unrealized loss on marketable securities and warrants of
$3.2 million (Q2 2022: $7.6 million).
The Company realized a net loss for the period
of $1.1 million (Q2 2022: $11.9 million) after an income tax
expense of $5.2 million (Q2 2022: $3.1 million).
Current income tax expense increased to $4.4 million (Q2 2022 -
$1.3 million) due to increased profitability impacting the income
tax and special mining duty, while deferred income tax expense of
$0.8 million is derived from changes in temporary timing
differences between deductions for accounting versus deductions for
tax (Q2 2022 – $1.8 million).
Direct operating costs(2) on a per tonne basis
increased to $138.16, up 4% compared with Q2 2022 due to both a
strengthening of the Mexican peso and higher operating costs at
both Guanacevi and Bolanitos from inflationary pressure during 2022
and the first half of 2023. As the Mexican peso strengthens, the
Company’s Mexican peso denominated costs are increased in US dollar
terms. Guanacevi and Bolanitos have seen increased labour, power
and consumables costs.
Consolidated cash costs per oz(2), net of
by-product credits, increased to $13.52 primarily driven by an
increase in direct operating costs, an increase in royalties and
special mining duties, partially offset by an increase in
by-product gold sales and increased silver production.
AISC(2) decreased by 4% on a per oz basis compared to Q2 2022 due
to the increase in cash costs and an increase in allocated
corporate general and administrative expenses partially offset by
increased silver production and slightly lower sustaining capital
expenditures.
Management anticipates these macro trends will
continue for the near term and therefore expects actual cost
metrics to be higher than cost metrics previously provided in the
Company’s 2023 guidance. Management anticipates costs to align to
similar levels with H1 2023 actual cost metrics.
The complete financial statements and
management’s discussion & analysis can be viewed on the
Company’s website, on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov. All shareholders can receive a hard copy of the
Company’s complete audited financial statements free of charge upon
request. To receive this material in hard copy, please contact
Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or
by email at gmeleger@edrsilver.com.
Conference Call
A conference call to discuss the Company’s Q2
2023 financial results will be held today at 10:00 a.m. PT / 1:00
p.m. ET. To participate in the conference call, please dial the
numbers below.
Date & Time: |
Tuesday, August 8, 2023 at 10:00 a.m. PT / 1:00 p.m. ET |
|
|
Telephone: |
Toll-free in Canada and the US +1-800-319-4610Local or
International +1-604-638-5340Please allow up to 10 minutes to be
connected to the conference call. |
|
|
Replay: |
A replay of the conference call
will be available by dialing (toll-free) +1-800-319-6413 in Canada
and the US (toll-free) or +1-604-638-9010 outside of Canada and the
US. The replay passcode is 0279#. The replay will also be available
on the Company’s website at www.edrsilver.com. |
|
|
About Endeavour Silver –
Endeavour is a mid-tier precious metals mining company that
operates two high-grade underground silver-gold mines in Mexico.
Endeavour is advancing construction of the Terronera Project and
exploring its portfolio of exploration projects in Mexico, Chile
and the United States to facilitate its goal to become a premier
senior silver producer. Our philosophy of corporate social
integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp. Contact
InformationGalina Meleger, Vice President of Investor
Relations Tel: (604)640-4804Email: gmeleger@edrsilver.com Website:
www.edrsilver.com
Follow Endeavour Silver on Facebook, Twitter,
Instagram and LinkedIn
Endnotes
1 Silver equivalent
(AgEq)
AgEq is calculated using an 80:1 silver:gold ratio.
2 Non-IFRS and
Other Financial Measures
and Ratios
Certain non-IFRS and other non-financial
measures and ratios are included in this press release, including
cash costs per silver ounce, total production costs per ounce,
all-in costs per ounce, all-in sustaining cost (“AISC”) per ounce,
direct operating costs per tonne, direct costs per tonne, silver
co-product cash costs, gold co-product cash costs, realized silver
price per ounce, realized gold price per ounce, adjusted net
earnings (loss) adjusted net earnings (loss) per share, mine
operating cash flow before taxes, working capital, operating cash
flow before working capital adjustments, operating cash flow before
working capital changes per share, earnings before interest, taxes,
depreciation and amortization (“EBITDA”), adjusted EBITDA per share
and sustaining and growth capital.
Please see the June 30, 2023 MD&A for
explanations and discussion of these non-IFRS and other
non-financial measures and ratios. The Company believes that these
measures and ratios, in addition to conventional measures and
ratios prepared in accordance with International Financial
Reporting Standards (“IFRS”), provide management and investors an
improved ability to evaluate the underlying performance of the
Company. The non-IFRS and other non-financial measures and ratios
are intended to provide additional information and should not be
considered in isolation or as a substitute for measures or ratios
of performance prepared in accordance with IFRS. These measures and
ratios do not have any standardized meaning prescribed under IFRS,
and therefore may not be comparable to other issuers. Certain
additional disclosures for these non-IFRS measures have been
incorporated by reference and can be found in the section “Non-IFRS
Measures” in the June 30, 2023 MD&A available on SEDAR at
www.sedar.com.
Reconciliation of Working Capital |
|
|
|
Expressed in thousands US dollars |
As at June 30, 2023 |
As at December 31, 2022 |
|
|
|
|
|
|
|
Current assets |
|
$ |
126,678 |
|
|
$ |
146,333 |
|
|
Current liabilities |
|
|
48,439 |
|
|
|
52,749 |
|
|
Working capital |
|
$ |
78,239 |
|
|
$ |
93,584 |
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net
Earnings (Loss) Per Share |
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
(except for share numbers and per share amounts) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Net earnings (loss) for the period per financial statements |
$ |
(1,054 |
) |
$ |
(11,923 |
) |
$ |
5,402 |
|
$ |
(261 |
) |
|
Change in fair value of investments |
|
3,150 |
|
|
7,626 |
|
|
53 |
|
|
2,269 |
|
|
Adjusted net earnings (loss) |
$ |
2,096 |
|
$ |
(4,297 |
) |
$ |
5,455 |
|
$ |
2,008 |
|
|
Basic weighted average share outstanding |
|
191,446,597 |
|
|
180,974,609 |
|
|
190,867,192 |
|
|
176,291,929 |
|
|
Adjusted net earnings (loss) per share |
$ |
0.01 |
|
$ |
(0.02 |
) |
$ |
0.03 |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
Reconciliation of Mine Operating Cash Flow Before
Taxes |
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Mine operating earnings per financial statements |
$ |
12,542 |
|
$ |
4,472 |
|
$ |
28,567 |
|
$ |
24,741 |
|
|
Share-based compensation |
|
(294 |
) |
|
113 |
|
|
(162 |
) |
|
240 |
|
|
Amortization and depletion |
|
6,596 |
|
|
4,175 |
|
|
12,849 |
|
|
10,481 |
|
|
Mine operating cash flow before taxes |
$ |
18,844 |
|
$ |
8,760 |
|
$ |
41,254 |
|
$ |
35,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flow Before Working Capital Changes and Operating
Cash Flow Before Working Capital Changes Per
Share |
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
(except for per share amounts) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Cash from (used in) operating activities per financial
statements |
$ |
4,853 |
|
$ |
(18,548 |
) |
$ |
4,452 |
|
$ |
3,185 |
|
|
Net changes in non-cash working capital per financial
statements |
|
(6,606 |
) |
|
(22,160 |
) |
|
(19,508 |
) |
|
(21,046 |
) |
|
Operating cash flow before working capital changes |
$ |
11,459 |
|
$ |
3,612 |
|
$ |
23,960 |
|
$ |
24,231 |
|
|
Basic weighted average shares outstanding |
|
191,446,597 |
|
|
180,974,609 |
|
|
190,867,192 |
|
|
176,291,929 |
|
|
Operating cash flow before working capital changes per share |
$ |
0.06 |
|
$ |
0.02 |
|
$ |
0.13 |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA and Adjusted EBITDA |
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Net earnings (loss) for the period per financial statements |
$ |
(1,054 |
) |
$ |
(11,923 |
) |
$ |
5,402 |
|
$ |
(261 |
) |
|
Depreciation and depletion – cost of sales |
|
6,596 |
|
|
4,175 |
|
|
12,849 |
|
|
10,481 |
|
|
Depreciation and depletion – exploration |
|
317 |
|
|
98 |
|
|
595 |
|
|
205 |
|
|
Depreciation and depletion – general & administration |
|
54 |
|
|
51 |
|
|
116 |
|
|
99 |
|
|
Depreciation and depletion – care & maintenance |
|
- |
|
|
30 |
|
|
- |
|
|
60 |
|
|
Finance costs |
|
229 |
|
|
212 |
|
|
488 |
|
|
389 |
|
|
Current income tax expense |
|
4,442 |
|
|
1,325 |
|
|
8,887 |
|
|
2,340 |
|
|
Deferred income tax expense |
|
766 |
|
|
1,752 |
|
|
2,442 |
|
|
7,974 |
|
|
EBITDA |
$ |
11,350 |
|
$ |
(4,280 |
) |
$ |
30,779 |
|
$ |
21,287 |
|
|
Share based compensation |
|
416 |
|
|
972 |
|
|
2,041 |
|
|
2,499 |
|
|
Change in fair value of investments |
|
3,150 |
|
|
7,626 |
|
|
53 |
|
|
2,269 |
|
|
Adjusted EBITDA |
$ |
14,916 |
|
$ |
4,318 |
|
$ |
32,873 |
|
$ |
26,055 |
|
|
Basic weighted average shares outstanding |
|
191,446,597 |
|
|
180,974,609 |
|
|
190,867,192 |
|
|
176,291,929 |
|
|
Adjusted EBITDA per share |
$ |
0.08 |
|
$ |
0.02 |
|
$ |
0.17 |
|
$ |
0.15 |
|
|
Reconciliation of Cash Cost Per Silver Ounce, Total Production
Costs Per Ounce, Direct Operating Costs Per Tonne, Direct Costs Per
Tonne |
Expressed in thousands US dollars |
Three Months Ended June 30, 2023 |
Three Months Ended June 30, 2022 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Direct production costs per financial statements |
$ |
14,878 |
|
$ |
10,600 |
|
$ |
25,478 |
|
$ |
7,797 |
|
$ |
12,031 |
|
$ |
19,828 |
|
Smelting and refining costs included in net revenue |
|
- |
|
|
795 |
|
|
795 |
|
|
- |
|
|
937 |
|
|
937 |
|
Opening finished goods |
|
(4,848 |
) |
|
(1,063 |
) |
|
(5,911 |
) |
|
(7,908 |
) |
|
(2,995 |
) |
|
(10,903 |
) |
Closing finished goods |
|
10,257 |
|
|
962 |
|
|
11,219 |
|
|
16,164 |
|
|
681 |
|
|
16,845 |
|
Direct operating costs |
|
20,287 |
|
|
11,294 |
|
|
31,581 |
|
|
16,053 |
|
|
10,654 |
|
|
26,707 |
|
Royalties |
|
5,679 |
|
|
70 |
|
|
5,749 |
|
|
2,128 |
|
|
66 |
|
|
2,194 |
|
Special mining duty (1) |
|
1,224 |
|
|
209 |
|
|
1,433 |
|
|
795 |
|
|
127 |
|
|
922 |
|
Direct costs |
|
27,190 |
|
|
11,573 |
|
|
38,763 |
|
|
18,976 |
|
|
10,847 |
|
|
29,823 |
|
By-product gold sales |
|
(8,469 |
) |
|
(10,853 |
) |
|
(19,322 |
) |
|
(5,719 |
) |
|
(12,302 |
) |
|
(18,021 |
) |
Opening gold inventory fair market value |
|
2,500 |
|
|
995 |
|
|
3,495 |
|
|
3,724 |
|
|
3,763 |
|
|
7,487 |
|
Closing gold inventory fair market value |
|
(1,629 |
) |
|
(1,268 |
) |
|
(2,897 |
) |
|
(4,662 |
) |
|
(1,061 |
) |
|
(5,723 |
) |
Cash costs net of by-product |
|
19,592 |
|
|
447 |
|
|
20,039 |
|
|
12,319 |
|
|
1,247 |
|
|
13,566 |
|
Amortization and depletion |
|
3,381 |
|
|
3,215 |
|
|
6,596 |
|
|
940 |
|
|
3,235 |
|
|
4,175 |
|
Share-based compensation |
|
(147 |
) |
|
(147 |
) |
|
(294 |
) |
|
57 |
|
|
56 |
|
|
113 |
|
Opening finished goods depreciation and depletion |
|
(1,115 |
) |
|
(355 |
) |
|
(1,470 |
) |
|
(1,689 |
) |
|
(897 |
) |
|
(2,586 |
) |
Closing finished goods depreciation and depletion |
|
2,318 |
|
|
288 |
|
|
2,606 |
|
|
3,733 |
|
|
199 |
|
|
3,932 |
|
Total production costs |
$ |
24,029 |
|
$ |
3,448 |
|
$ |
27,477 |
|
$ |
15,360 |
|
$ |
3,840 |
|
$ |
19,200 |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2023 |
Three Months Ended June 30, 2022 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Throughput tonnes |
|
116,908 |
|
|
111,667 |
|
|
228,575 |
|
|
94,017 |
|
|
107,344 |
|
|
201,361 |
|
Payable silver ounces |
|
1,348,366 |
|
|
133,889 |
|
|
1,482,255 |
|
|
1,190,568 |
|
|
155,708 |
|
|
1,346,276 |
|
|
|
|
|
|
|
|
Cash costs per silver ounce |
$ |
14.53 |
|
$ |
3.34 |
|
$ |
13.52 |
|
$ |
10.35 |
|
$ |
8.01 |
|
$ |
10.08 |
|
Total production costs per ounce |
$ |
17.82 |
|
$ |
25.75 |
|
$ |
18.54 |
|
$ |
12.90 |
|
$ |
24.66 |
|
$ |
14.26 |
|
Direct operating costs per tonne |
$ |
173.53 |
|
$ |
101.14 |
|
$ |
138.16 |
|
$ |
170.75 |
|
$ |
99.25 |
|
$ |
132.63 |
|
Direct costs per tonne |
$ |
232.58 |
|
$ |
103.64 |
|
$ |
169.59 |
|
$ |
201.84 |
|
$ |
101.05 |
|
$ |
148.11 |
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
Six Months Ended June 30, 2023 |
Six Months Ended June 30, 2022 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Direct production costs per financial statements |
$ |
33,023 |
|
$ |
18,971 |
|
$ |
51,994 |
|
$ |
25,681 |
|
$ |
20,868 |
|
$ |
46,549 |
|
Smelting and refining costs included in net revenue |
|
- |
|
|
1,451 |
|
|
1,451 |
|
|
- |
|
|
1,591 |
|
|
1,591 |
|
Opening finished goods |
|
(4,953 |
) |
|
(245 |
) |
|
(5,198 |
) |
|
(10,093 |
) |
|
(2,857 |
) |
|
(12,950 |
) |
Closing finished goods |
|
10,257 |
|
|
962 |
|
|
11,219 |
|
|
16,164 |
|
|
681 |
|
|
16,845 |
|
Direct operating costs |
|
38,327 |
|
|
21,139 |
|
|
59,466 |
|
|
31,752 |
|
|
20,283 |
|
|
52,035 |
|
Royalties |
|
12,150 |
|
|
134 |
|
|
12,284 |
|
|
6,362 |
|
|
149 |
|
|
6,511 |
|
Special mining duty (1) |
|
2,494 |
|
|
294 |
|
|
2,788 |
|
|
1,526 |
|
|
371 |
|
|
1,897 |
|
Direct costs |
|
52,971 |
|
|
21,567 |
|
|
74,538 |
|
|
39,640 |
|
|
20,803 |
|
|
60,443 |
|
By-product gold sales |
|
(16,902 |
) |
|
(19,917 |
) |
|
(36,819 |
) |
|
(10,741 |
) |
|
(23,790 |
) |
|
(34,531 |
) |
Opening gold inventory fair market value |
|
2,740 |
|
|
354 |
|
|
3,094 |
|
|
1,900 |
|
|
4,784 |
|
|
6,684 |
|
Closing gold inventory fair market value |
|
(1,629 |
) |
|
(1,268 |
) |
|
(2,897 |
) |
|
(4,662 |
) |
|
(1,061 |
) |
|
(5,723 |
) |
Cash costs net of by-product |
|
37,180 |
|
|
736 |
|
|
37,916 |
|
|
26,137 |
|
|
736 |
|
|
26,873 |
|
Amortization and depletion |
|
6,855 |
|
|
5,994 |
|
|
12,849 |
|
|
4,850 |
|
|
5,631 |
|
|
10,481 |
|
Share-based compensation |
|
(81 |
) |
|
(81 |
) |
|
(162 |
) |
|
120 |
|
|
120 |
|
|
240 |
|
Opening finished goods depreciation and depletion |
|
(862 |
) |
|
(60 |
) |
|
(922 |
) |
|
(1,965 |
) |
|
(635 |
) |
|
(2,600 |
) |
Closing finished goods depreciation and depletion |
|
2,318 |
|
|
288 |
|
|
2,606 |
|
|
3,733 |
|
|
199 |
|
|
3,932 |
|
Total production costs |
$ |
45,410 |
|
$ |
6,877 |
|
$ |
52,287 |
|
$ |
32,875 |
|
$ |
6,051 |
|
$ |
38,926 |
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 |
Six Months Ended June 30, 2022 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Throughput tonnes |
|
219,283 |
|
|
220,365 |
|
|
439,648 |
|
|
195,270 |
|
|
212,238 |
|
|
407,508 |
|
Payable silver ounces |
|
2,783,970 |
|
|
306,497 |
|
|
3,090,467 |
|
|
2,321,016 |
|
|
328,800 |
|
|
2,649,816 |
|
|
|
|
|
|
|
|
Cash costs per silver ounce |
$ |
13.36 |
|
$ |
2.40 |
|
$ |
12.27 |
|
$ |
11.26 |
|
$ |
2.24 |
|
$ |
10.14 |
|
Total production costs per ounce |
$ |
16.31 |
|
$ |
22.44 |
|
$ |
16.92 |
|
$ |
14.16 |
|
$ |
18.40 |
|
$ |
14.69 |
|
Direct operating costs per tonne |
$ |
174.78 |
|
$ |
95.93 |
|
$ |
135.26 |
|
$ |
162.61 |
|
$ |
95.57 |
|
$ |
127.69 |
|
Direct costs per tonne |
$ |
241.56 |
|
$ |
97.87 |
|
$ |
169.54 |
|
$ |
203.00 |
|
$ |
98.02 |
|
$ |
148.32 |
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
June 30, 2023 |
June 30, 2022 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
Closing finished goods |
10,257 |
962 |
11,219 |
16,164 |
681 |
16,845 |
Closing finished goods depletion |
2,318 |
288 |
2,606 |
3,733 |
199 |
3,932 |
Finished goods inventory |
$12,575 |
$1,250 |
$13,825 |
$19,897 |
$880 |
$20,777 |
Reconciliation of
All-In Costs Per Ounce and AISC per ounce |
Expressed in thousands US dollars |
Three Months Ended June 30, 2023 |
Three Months Ended June 30, 2022 |
|
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
|
Cash costs net of by-product |
$ |
19,592 |
|
$ |
447 |
|
$ |
20,039 |
|
$ |
12,319 |
$ |
1,247 |
$ |
13,566 |
|
Operations share-based compensation |
|
(147 |
) |
|
(147 |
) |
|
(294 |
) |
|
57 |
|
56 |
|
113 |
|
Corporate general and administrative |
|
1,228 |
|
|
477 |
|
|
1,705 |
|
|
401 |
|
155 |
|
556 |
|
Corporate share-based compensation |
|
430 |
|
|
169 |
|
|
599 |
|
|
527 |
|
214 |
|
741 |
|
Reclamation - amortization/accretion |
|
79 |
|
|
66 |
|
|
145 |
|
|
69 |
|
53 |
|
122 |
|
Mine site expensed exploration |
|
327 |
|
|
350 |
|
|
677 |
|
|
360 |
|
308 |
|
668 |
|
Intangible payments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Equipment loan payments |
|
245 |
|
|
489 |
|
|
734 |
|
|
246 |
|
488 |
|
734 |
|
Capital expenditures sustaining |
|
6,300 |
|
|
2,920 |
|
|
9,220 |
|
|
7,050 |
|
2,788 |
|
9,838 |
|
All-In-Sustaining Costs |
$ |
28,054 |
|
$ |
4,771 |
|
$ |
32,825 |
|
$ |
21,028 |
$ |
5,310 |
$ |
26,338 |
|
Growth exploration and evaluation |
|
|
|
3,253 |
|
|
|
|
2,901 |
|
Growth capital expenditures |
|
|
|
14,644 |
|
|
|
|
5,613 |
|
All-In-Costs |
|
|
$ |
50,722 |
|
|
|
$ |
34,852 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2023 |
Three Months Ended June 30, 2022 |
|
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
|
Throughput tonnes |
|
116,908 |
|
|
111,667 |
|
|
228,575 |
|
|
94,017 |
|
107,344 |
|
201,361 |
|
Payable silver ounces |
|
1,348,366 |
|
|
133,889 |
|
|
1,482,255 |
|
|
1,190,568 |
|
155,708 |
|
1,346,276 |
|
Silver equivalent production (ounces) |
|
1,663,223 |
|
|
616,297 |
|
|
2,279,520 |
|
|
1,488,550 |
|
613,777 |
|
2,102,327 |
|
|
|
|
|
|
|
|
|
Sustaining cost per ounce |
$ |
20.81 |
|
$ |
35.64 |
|
$ |
22.15 |
|
$ |
17.66 |
$ |
34.10 |
$ |
19.56 |
|
All-In-costs per ounce |
|
|
$ |
34.22 |
|
|
|
$ |
25.89 |
|
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
Six Months Ended June 30, 2023 |
Six Months Ended June 30, 2022 |
|
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
|
Cash costs net of by-product |
$ |
37,180 |
|
$ |
736 |
|
$ |
37,916 |
|
$ |
26,137 |
$ |
736 |
$ |
26,873 |
|
Operations share-based compensation |
|
(81 |
) |
|
(81 |
) |
|
(162 |
) |
|
120 |
|
120 |
|
240 |
|
Corporate general and administrative |
|
3,844 |
|
|
1,355 |
|
|
5,199 |
|
|
2,468 |
|
1,031 |
|
3,499 |
|
Corporate share-based compensation |
|
1,449 |
|
|
511 |
|
|
1,960 |
|
|
1,444 |
|
603 |
|
2,047 |
|
Reclamation - amortization/accretion |
|
158 |
|
|
128 |
|
|
286 |
|
|
134 |
|
106 |
|
240 |
|
Mine site expensed exploration |
|
706 |
|
|
663 |
|
|
1,369 |
|
|
712 |
|
558 |
|
1,270 |
|
Intangible payments |
|
- |
|
|
- |
|
|
- |
|
|
29 |
|
12 |
|
41 |
|
Equipment loan payments |
|
490 |
|
|
976 |
|
|
1,466 |
|
|
491 |
|
977 |
|
1,468 |
|
Capital expenditures sustaining |
|
11,990 |
|
|
5,221 |
|
|
17,211 |
|
|
12,696 |
|
5,214 |
|
17,910 |
|
All-In-Sustaining Costs |
$ |
55,736 |
|
$ |
9,509 |
|
$ |
65,245 |
|
$ |
44,230 |
$ |
9,358 |
$ |
53,588 |
|
Growth exploration and evaluation |
|
|
|
6,316 |
|
|
|
|
5,314 |
|
Growth capital expenditures |
|
|
|
27,370 |
|
|
|
|
10,538 |
|
All-In-Costs |
|
|
$ |
98,931 |
|
|
|
$ |
69,440 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 |
Six Months Ended June 30, 2022 |
|
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
|
Throughput tonnes |
|
219,283 |
|
|
220,365 |
|
|
439,648 |
|
|
195,270 |
|
212,238 |
|
407,508 |
|
Payable silver ounces |
|
2,783,970 |
|
|
306,497 |
|
|
3,090,467 |
|
|
2,321,016 |
|
328,800 |
|
2,649,816 |
|
Silver equivalent production (ounces) |
|
3,438,187 |
|
|
1,212,238 |
|
|
4,650,425 |
|
|
2,900,560 |
|
1,212,322 |
|
4,112,882 |
|
|
|
|
|
|
|
|
|
Sustaining cost per ounce |
$ |
20.02 |
|
$ |
31.03 |
|
$ |
21.11 |
|
$ |
19.06 |
$ |
28.46 |
$ |
20.22 |
|
All-In-costs per ounce |
|
|
$ |
32.01 |
|
|
|
$ |
26.21 |
|
|
|
|
|
|
|
|
|
Reconciliation of Sustaining Capital and Growth Capital |
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Capital expenditures sustaining |
$ |
9,220 |
|
$ |
9,838 |
|
$ |
17,211 |
|
$ |
17,910 |
|
|
Growth capital expenditures |
|
14,644 |
|
|
5,613 |
|
|
27,370 |
|
|
10,538 |
|
|
Property, plant and equipment expenditures per Consolidated
Statement of Cash Flows |
$ |
23,864 |
|
$ |
15,451 |
|
$ |
44,581 |
|
$ |
28,448 |
|
|
|
|
|
|
|
|
Reconciliation of
Silver Co-Product Cash Costs and Gold Co-Product Cash Costs |
Expressed in thousands US dollars |
Three Months Ended June 30, 2023 |
Three Months Ended June 30, 2022 |
|
|
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
|
|
Direct production costs per financial statements |
$ |
14,878 |
|
$ |
10,600 |
|
$ |
25,478 |
|
$ |
7,797 |
|
$ |
12,031 |
|
$ |
19,828 |
|
|
|
Smelting and refining costs included in net revenue |
|
- |
|
|
795 |
|
|
795 |
|
|
- |
|
|
937 |
|
|
937 |
|
|
|
Royalties |
|
5,679 |
|
|
70 |
|
|
5,749 |
|
|
2,128 |
|
|
66 |
|
|
2,194 |
|
|
|
Special mining duty (1) |
|
1,224 |
|
|
209 |
|
|
1,433 |
|
|
795 |
|
|
127 |
|
|
922 |
|
|
|
Opening finished goods |
|
(4,848 |
) |
|
(1,063 |
) |
|
(5,911 |
) |
|
(7,908 |
) |
|
(2,995 |
) |
|
(10,903 |
) |
|
|
Closing finished goods |
|
10,257 |
|
|
962 |
|
|
11,219 |
|
|
16,164 |
|
|
681 |
|
|
16,845 |
|
|
|
Direct costs |
$ |
27,190 |
|
$ |
11,573 |
|
$ |
38,763 |
|
$ |
18,976 |
|
$ |
10,847 |
|
$ |
29,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2023 |
Three Months Ended June 30, 2022 |
|
|
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
|
|
Silver production (ounces) |
|
1,352,423.00 |
|
|
141,577 |
|
|
1,494,000 |
|
|
1,194,150 |
|
|
165,057 |
|
|
1,359,207 |
|
|
|
Average realized silver price ($) |
|
24.27 |
|
|
24.27 |
|
|
24.27 |
|
|
22.72 |
|
|
22.72 |
|
|
22.72 |
|
|
|
Silver value ($) |
|
32,823,265 |
|
|
3,436,069 |
|
|
36,259,335 |
|
|
27,131,088 |
|
|
3,750,095 |
|
|
30,881,183 |
|
|
|
|
|
|
|
|
|
|
|
|
Gold production (ounces) |
|
3,885 |
|
|
5,934 |
|
|
9,819 |
|
|
3,680 |
|
|
5,609 |
|
|
9,289 |
|
|
|
Average realized gold price ($) |
|
1,955 |
|
|
1,955 |
|
|
1,955 |
|
|
1,840 |
|
|
1,840 |
|
|
1,840 |
|
|
|
Gold value ($) |
|
7,595,464 |
|
|
11,601,411 |
|
|
19,196,875 |
|
|
6,771,200 |
|
|
10,320,560 |
|
|
17,091,760 |
|
|
|
|
|
|
|
|
|
|
|
|
Total metal value ($) |
|
40,418,729 |
|
|
15,037,481 |
|
|
55,456,210 |
|
|
33,902,288 |
|
|
14,070,655 |
|
|
47,972,943 |
|
|
|
Pro-rated silver costs (%) |
|
81 |
% |
|
23 |
% |
|
65 |
% |
|
80 |
% |
|
27 |
% |
|
64 |
% |
|
|
Pro-rated gold costs (%) |
|
19 |
% |
|
77 |
% |
|
35 |
% |
|
20 |
% |
|
73 |
% |
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
Pro-rated silver costs ($) |
|
22,080 |
|
|
2,644 |
|
|
25,345 |
|
|
15,186 |
|
|
2,891 |
|
|
19,198 |
|
|
|
Pro-rated gold costs ($) |
|
5,110 |
|
|
8,929 |
|
|
13,418 |
|
|
3,790 |
|
|
7,956 |
|
|
10,625 |
|
|
|
|
|
|
|
|
|
|
|
|
Silver co-product cash costs ($) |
|
16.33 |
|
|
18.68 |
|
|
16.96 |
|
|
12.72 |
|
|
17.51 |
|
|
14.12 |
|
|
|
Gold co-product cash costs ($) |
|
1,315 |
|
|
1,505 |
|
|
1,367 |
|
|
1,030 |
|
|
1,418 |
|
|
1,144 |
|
|
|
|
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
Six Months Ended June 30, 2023 |
Six Months Ended June 30, 2022 |
|
|
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
|
|
Direct production costs per financial statements |
$ |
33,023 |
|
$ |
18,971 |
|
$ |
51,994 |
|
$ |
25,681 |
|
$ |
20,868 |
|
$ |
46,549 |
|
|
|
Smelting and refining costs included in net revenue |
|
- |
|
$ |
1,451 |
|
$ |
1,451 |
|
|
- |
|
|
1,591 |
|
|
1,591 |
|
|
|
Royalties |
|
12,150 |
|
|
134 |
|
|
12,284 |
|
|
6,362 |
|
|
149 |
|
|
6,511 |
|
|
|
Special mining duty (1) |
|
2,494 |
|
|
294 |
|
|
2,788 |
|
|
1,526 |
|
|
371 |
|
|
1,897 |
|
|
|
Opening finished goods |
|
(4,953 |
) |
|
(245 |
) |
|
(5,198 |
) |
|
(10,093 |
) |
|
(2,857 |
) |
|
(12,950 |
) |
|
|
Finished goods NRV adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
0 |
|
|
|
Closing finished goods |
|
10,257 |
|
|
962 |
|
|
11,219 |
|
|
16,164 |
|
|
681 |
|
|
16,845 |
|
|
|
Direct costs |
|
52,971 |
|
|
21,567 |
|
|
74,538 |
|
|
39,640 |
|
|
20,803 |
|
|
60,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 |
Six Months Ended June 30, 2022 |
|
|
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
Total |
|
|
Silver production (ounces) |
|
2,792,347 |
|
|
325,198 |
|
|
3,117,545 |
|
|
2,328,000 |
|
|
346,162 |
|
|
2,674,162 |
|
|
|
Average realized silver price ($) |
|
23.65 |
|
|
23.65 |
|
|
23.65 |
|
|
23.95 |
|
|
23.95 |
|
|
23.95 |
|
|
|
Silver value ($) |
|
66,031,062 |
|
|
7,690,007 |
|
|
73,721,069 |
|
|
55,755,600 |
|
|
8,290,580 |
|
|
64,046,180 |
|
|
|
|
|
|
|
|
|
|
|
|
Gold production (ounces) |
|
8,073 |
|
|
11,088 |
|
|
19,161 |
|
|
7,157 |
|
|
10,827 |
|
|
17,984 |
|
|
|
Average realized gold price ($) |
|
1,937 |
|
|
1,937 |
|
|
1,937 |
|
|
1,900 |
|
|
1,900 |
|
|
1,900 |
|
|
|
Gold value ($) |
|
15,636,792 |
|
|
21,476,620 |
|
|
37,113,413 |
|
|
13,598,300 |
|
|
20,571,300 |
|
|
34,169,600 |
|
|
|
|
|
|
|
|
|
|
|
|
Total metal value ($) |
|
81,667,854 |
|
|
29,166,628 |
|
|
110,834,482 |
|
|
69,353,900 |
|
|
28,861,880 |
|
|
98,215,780 |
|
|
|
Pro-rated silver costs (%) |
|
81 |
% |
|
26 |
% |
|
67 |
% |
|
80 |
% |
|
29 |
% |
|
65 |
% |
|
|
Pro-rated gold costs (%) |
|
19 |
% |
|
74 |
% |
|
33 |
% |
|
20 |
% |
|
71 |
% |
|
35 |
% |
|
|
|
|
|
|
|
|
|
|
|
Pro-rated silver costs ($) |
|
42,829 |
|
|
5,686 |
|
|
49,579 |
|
|
31,868 |
|
|
5,976 |
|
|
39,415 |
|
|
|
Pro-rated gold costs ($) |
|
10,142 |
|
|
15,881 |
|
|
24,959 |
|
|
7,772 |
|
|
14,827 |
|
|
21,028 |
|
|
|
|
|
|
|
|
|
|
|
|
Silver co-product cash costs ($) |
|
15.34 |
|
|
17.49 |
|
|
15.90 |
|
|
13.69 |
|
|
17.26 |
|
|
14.74 |
|
|
|
Gold co-product cash costs ($) |
|
1,256 |
|
|
1,432 |
|
|
1,303 |
|
|
1,086 |
|
|
1,369 |
|
|
1,169 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Realized Silver Price Per Ounce
and Realized Gold Price Per Ounce |
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Gross silver sales |
$ |
31,543 |
|
$ |
13,698 |
|
$ |
70,163 |
|
$ |
55,582 |
|
|
Silver ounces sold |
|
1,299,672 |
|
|
602,894 |
|
|
2,967,080 |
|
|
2,320,662 |
|
|
Realized silver price per ounces |
$ |
24.27 |
|
$ |
22.72 |
|
$ |
23.65 |
|
$ |
23.95 |
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Gross gold sales |
$ |
19,322 |
|
$ |
18,021 |
|
$ |
36,819 |
|
$ |
34,531 |
|
|
Gold ounces sold |
|
9,883 |
|
|
9,792 |
|
|
19,009 |
|
|
18,173 |
|
|
Realized gold price per ounces |
$ |
1,955 |
|
$ |
1,840 |
|
$ |
1,937 |
|
$ |
1,900 |
|
|
|
|
|
|
|
|
Cautionary Note Regarding Forward-Looking
Statements
This news release contains “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Such forward-looking statements and information herein
include but are not limited to statements regarding the development
and financing of the Terronera Project, including anticipated
Project progress and timeline and the timing and results of various
activities. The Company does not intend to and does not assume any
obligation to update such forward-looking statements or
information, other than as required by applicable law.
Forward-looking statements or information
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, production
levels, performance or achievements of Endeavour and its operations
to be materially different from those expressed or implied by such
statements. Such factors include but are not limited to the
completion of Societe Generale’s and ING Bank N.V.’s due diligence
requirements in connection with the Terronera Project financing;
the final terms of the financing and the Company’s ability to
successfully drawdown funds thereunder; the ongoing effects of
inflation and supply chain issues on Project economics; national
and local governments, legislation, taxation, controls, regulations
and political or economic developments in Canada and Mexico;
financial risks due to precious metals prices; operating or
technical difficulties in mineral exploration, development and
mining activities; risks and hazards of mineral exploration,
development and mining; the speculative nature of mineral
exploration and development; risks in obtaining necessary licenses
and permits; and challenges to the Company’s title to properties;
as well as those factors described in the section “risk factors”
contained in the Company’s most recent form 40F/Annual Information
Form filed with the S.E.C. and Canadian securities regulatory
authorities.
Forward-looking statements are based on
assumptions management believes to be reasonable, including but not
limited to: the ability of the Company to successfully secure a
debt facility, the continued operation of the Company’s mining
operations, no material adverse change in the market price of
commodities, the Project’s forecasted economics as of 2023, mining
operations will operate and the mining products will be completed
in accordance with management’s expectations and achieve their
stated production outcomes, and such other assumptions and factors
as set out herein. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements or
information, there may be other factors that cause results to be
materially different from those anticipated, described, estimated,
assessed or intended. There can be no assurance that any
forward-looking statements or information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements or information. Accordingly,
readers should not place undue reliance on forward-looking
statements or information.
Appendix
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited – prepared by management)(expressed in thousands of US
dollars, except for shares and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
|
|
|
|
June
30, |
|
June 30, |
|
June
30, |
|
June 30, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
$ |
50,071 |
|
|
$ |
30,782 |
|
|
$ |
105,532 |
|
|
$ |
88,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales: |
|
|
|
|
|
|
|
|
|
|
|
Direct production costs |
|
|
|
|
25,478 |
|
|
|
19,828 |
|
|
|
51,994 |
|
|
|
46,549 |
|
|
Royalties |
|
|
|
|
5,749 |
|
|
|
2,194 |
|
|
|
12,284 |
|
|
|
6,511 |
|
|
Share-based payments |
|
|
|
(294 |
) |
|
|
113 |
|
|
|
(162 |
) |
|
|
240 |
|
|
Depreciation, depletion and amortization |
|
|
|
|
6,596 |
|
|
|
4,175 |
|
|
|
12,849 |
|
|
|
10,481 |
|
|
|
|
|
|
|
37,529 |
|
|
|
26,310 |
|
|
|
76,965 |
|
|
|
63,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mine
operating earnings |
|
|
|
|
12,542 |
|
|
|
4,472 |
|
|
|
28,567 |
|
|
|
24,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and evaluation |
|
|
|
|
4,359 |
|
|
|
3,784 |
|
|
|
8,523 |
|
|
|
7,000 |
|
|
General and administrative |
|
|
|
|
2,358 |
|
|
|
1,348 |
|
|
|
7,275 |
|
|
|
5,645 |
|
|
Care and maintenance costs |
|
|
|
|
- |
|
|
|
189 |
|
|
|
- |
|
|
|
379 |
|
|
Write off of mineral properties |
|
|
|
|
435 |
|
|
|
500 |
|
|
|
435 |
|
|
|
500 |
|
|
|
|
|
|
|
7,152 |
|
|
|
5,821 |
|
|
|
16,233 |
|
|
|
13,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings (loss) |
|
|
|
|
5,390 |
|
|
|
(1,349 |
) |
|
|
12,334 |
|
|
|
11,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
costs |
|
|
|
|
374 |
|
|
|
336 |
|
|
|
774 |
|
|
|
634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain (loss) |
|
|
|
|
1,855 |
|
|
|
(289 |
) |
|
|
3,744 |
|
|
|
522 |
|
|
Gain on asset disposal |
|
|
|
|
5 |
|
|
|
- |
|
|
|
67 |
|
|
|
- |
|
|
Investment and other |
|
|
|
|
(2,722 |
) |
|
|
(6,872 |
) |
|
|
1,360 |
|
|
|
(1,052 |
) |
|
|
|
|
|
|
(862 |
) |
|
|
(7,161 |
) |
|
|
5,171 |
|
|
|
(530 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) before income taxes |
|
|
|
|
4,154 |
|
|
|
(8,846 |
) |
|
|
16,731 |
|
|
|
10,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense: |
|
|
|
|
|
|
|
|
|
|
|
Current income tax expense |
|
|
|
|
4,442 |
|
|
|
1,325 |
|
|
|
8,887 |
|
|
|
2,340 |
|
|
Deferred income tax expense |
|
|
|
|
766 |
|
|
|
1,752 |
|
|
|
2,442 |
|
|
|
7,974 |
|
|
|
|
|
|
|
5,208 |
|
|
|
3,077 |
|
|
|
11,329 |
|
|
|
10,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) and comprehensive earnings for the period |
|
|
|
$ |
(1,054 |
) |
|
$ |
(11,923 |
) |
|
$ |
5,402 |
|
|
$ |
(261 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share based on net earnings |
|
$ |
(0.01 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.03 |
|
|
|
(0.00 |
) |
|
Diluted earnings (loss) per share based on net earnings |
|
$ |
(0.01 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.03 |
|
|
|
(0.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of shares outstanding |
191,446,597 |
|
180,974,609 |
|
190,867,192 |
|
176,291,929 |
|
|
Diluted weighted average number of shares outstanding |
191,446,597 |
|
184,569,970 |
|
192,811,731 |
|
179,018,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION(unaudited –
prepared by management)(expressed in thousands of US dollars)
|
|
|
|
|
|
|
|
June
30, |
|
December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
43,504 |
|
|
$ |
83,391 |
|
|
Other investments |
|
|
8,136 |
|
|
|
8,647 |
|
|
Accounts and other receivables |
|
|
17,567 |
|
|
|
13,136 |
|
|
Income tax receivable |
|
|
166 |
|
|
|
4,024 |
|
|
Inventories |
|
|
30,531 |
|
|
|
19,184 |
|
|
Prepaid expenses |
|
|
25,524 |
|
|
|
16,951 |
|
|
Loans receivable |
|
|
1,250 |
|
|
|
1,000 |
|
|
Total
current assets |
|
|
126,678 |
|
|
|
146,333 |
|
|
|
|
|
|
|
|
Non-current
deposits |
|
|
660 |
|
|
|
565 |
|
|
Non-current
income tax receivable |
|
|
3,570 |
|
|
|
3,570 |
|
|
Non-current
other investments |
|
|
- |
|
|
|
1,388 |
|
|
Non-current
IVA receivable |
|
|
14,695 |
|
|
|
10,154 |
|
|
Non-current
loans receivable |
|
|
2,186 |
|
|
|
2,729 |
|
|
Right-of-use
leased assets |
|
|
914 |
|
|
|
806 |
|
|
Mineral properties, plant and equipment |
|
|
256,307 |
|
|
|
233,892 |
|
|
Total assets |
|
$ |
405,010 |
|
|
$ |
399,437 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
35,719 |
|
|
$ |
39,831 |
|
|
Income taxes payable |
|
|
7,289 |
|
|
|
6,616 |
|
|
Loans payable |
|
|
5,000 |
|
|
|
6,041 |
|
|
Lease liabilities |
|
|
431 |
|
|
|
261 |
|
|
Total
current liabilities |
|
|
48,439 |
|
|
|
52,749 |
|
|
|
|
|
|
|
|
Loans
payable |
|
|
6,361 |
|
|
|
8,469 |
|
|
Lease
liabilities |
|
|
810 |
|
|
|
812 |
|
|
Provision
for reclamation and rehabilitation |
|
|
9,574 |
|
|
|
7,601 |
|
|
Deferred
income tax liability |
|
|
15,386 |
|
|
|
12,944 |
|
|
Other
non-current liabilities |
|
|
1,063 |
|
|
|
968 |
|
|
Total liabilities |
|
|
81,633 |
|
|
|
83,543 |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Common shares, unlimited shares authorized, no par value, issued,
issuable |
|
|
|
|
and outstanding 191,505,299 shares (Dec 31, 2022 - 189,995,563
shares) |
|
662,029 |
|
|
|
657,866 |
|
|
Contributed
surplus |
|
|
3,793 |
|
|
|
6,115 |
|
|
Retained
earnings (deficit) |
|
|
(342,445 |
) |
|
|
(348,087 |
) |
|
Total shareholders' equity |
|
|
323,377 |
|
|
|
315,894 |
|
|
Total liabilities and shareholders' equity |
|
$ |
405,010 |
|
|
$ |
399,437 |
|
|
|
|
|
|
|
|
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS(unaudited – prepared
by management)(expressed in thousands of US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
|
|
June
30, |
|
June 30, |
|
June
30, |
|
June 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period |
|
|
$ |
(1,054 |
) |
|
$ |
(11,923 |
) |
|
$ |
5,402 |
|
|
$ |
(261 |
) |
|
|
|
|
|
|
|
|
|
|
Items not
affecting cash: |
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
|
415 |
|
|
|
972 |
|
|
|
2,040 |
|
|
|
2,499 |
|
Depreciation, depletion and amortization |
|
|
|
6,973 |
|
|
|
4,324 |
|
|
|
13,592 |
|
|
|
10,786 |
|
Writte off of exploration properties |
|
|
|
435 |
|
|
|
500 |
|
|
|
435 |
|
|
|
500 |
|
Deferred income tax expense |
|
|
|
766 |
|
|
|
1,752 |
|
|
|
2,442 |
|
|
|
7,974 |
|
Unrealized foreign exchange loss (gain) |
|
|
|
519 |
|
- |
|
(84 |
) |
|
|
1,614 |
|
- |
|
(220 |
) |
Finance costs |
|
|
|
374 |
|
|
|
336 |
|
|
|
774 |
|
|
|
634 |
|
Accretion of loans receivable |
|
|
|
(114 |
) |
|
|
- |
|
|
|
(207 |
) |
|
|
- |
|
Loss (gain) on asset disposal |
|
|
|
(5 |
) |
|
|
105 |
|
|
|
(67 |
) |
|
|
46 |
|
Loss on other investments |
|
|
|
3,150 |
|
|
|
7,626 |
|
|
|
53 |
|
|
|
2,269 |
|
Performance
and deferred share units settled in cash |
|
|
|
- |
|
|
|
- |
|
|
|
(2,118 |
) |
|
|
- |
|
Net changes in non-cash working capital |
|
|
|
(6,606 |
) |
|
|
(22,156 |
) |
|
|
(19,508 |
) |
|
|
(21,042 |
) |
Cash from (used in) operating activities |
|
|
|
4,853 |
|
|
|
(18,548 |
) |
|
|
4,452 |
|
|
|
3,185 |
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
Proceeds on disposal of property, plant and equipment |
|
|
|
- |
|
|
|
48 |
|
|
|
- |
|
|
|
82 |
|
Mineral properties, plant and equipment |
|
|
|
(23,864 |
) |
|
|
(15,451 |
) |
|
|
(44,581 |
) |
|
|
(28,448 |
) |
Purchase of other investments |
|
|
|
- |
|
|
|
(748 |
) |
|
|
- |
|
|
|
(2,119 |
) |
Proceeds from disposal of other investments |
|
|
|
1,846 |
|
|
|
- |
|
|
|
1,846 |
|
|
|
- |
|
Redemption of (investment in) non-current deposits |
|
|
|
(163 |
) |
|
|
2 |
|
|
|
(95 |
) |
|
|
4 |
|
Cash used in investing activities |
|
|
|
(22,181 |
) |
|
|
(16,149 |
) |
|
|
(42,830 |
) |
|
|
(30,481 |
) |
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
Repayment of loans payable |
|
|
|
(1,575 |
) |
|
|
(1,214 |
) |
|
|
(3,149 |
) |
|
|
(2,297 |
) |
Repayment of lease liabilities |
|
|
|
(86 |
) |
|
|
(54 |
) |
|
|
(149 |
) |
|
|
(106 |
) |
Interest paid |
|
|
|
(214 |
) |
|
|
(204 |
) |
|
|
(453 |
) |
|
|
(381 |
) |
Public equity offerings |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
46,001 |
|
Exercise of options |
|
|
|
641 |
|
|
|
1,448 |
|
|
|
2,453 |
|
|
|
1,578 |
|
Proceeds from loans receivable |
|
|
|
400 |
|
|
|
- |
|
|
|
500 |
|
|
|
- |
|
Share issuance costs |
|
|
|
- |
|
|
|
(15 |
) |
|
|
|
|
(2,812 |
) |
Performance and deferred share units witholding tax settlement |
|
|
|
- |
|
|
|
(6 |
) |
|
|
(294 |
) |
|
|
(1,903 |
) |
Cash from (used in) financing activities |
|
|
|
(834 |
) |
|
|
(45 |
) |
|
|
(1,092 |
) |
|
|
40,080 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate change on cash and cash equivalents |
|
|
16 |
|
|
|
(46 |
) |
|
|
(417 |
) |
|
|
139 |
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents |
|
|
|
(18,162 |
) |
|
|
(34,742 |
) |
|
|
(39,470 |
) |
|
|
12,784 |
|
Cash and
cash equivalents, beginning of the period |
|
|
|
61,650 |
|
|
|
151,014 |
|
|
|
83,391 |
|
|
|
103,303 |
|
Cash and cash equivalents, end of the period |
|
|
$ |
43,504 |
|
|
$ |
116,226 |
|
|
$ |
43,504 |
|
|
$ |
116,226 |
|
|
|
|
|
|
|
|
|
|
|
Grafico Azioni Endeavour Silver (TSX:EDR)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Endeavour Silver (TSX:EDR)
Storico
Da Mag 2023 a Mag 2024