Endeavour Silver Delivers Strong Production in Q1 2024
- Stable performance in Q1 2024 with 1,460,006 silver ounces and 10,133 gold ounces produced.
- Guanaceví and Bolañitos mines show consistent performance, with slight variations in grades.
- Metal sales of 1,756,094 oz silver and 10,880 oz gold during the quarter.
- Company aims to achieve annual production guidance of 8.1-8.8 million silver equivalent ounces in 2024.
- None.
Insights
Endeavour Silver Corp's first quarter production report for 2024 presents a mixed picture for investors analyzing the company's operational efficiency and market potential. The reported 10% decrease in silver production and a modest 8% increase in gold output suggest a nuanced operational performance. The company's ability to exceed throughput expectations due to prior plant refurbishments indicates a commitment to improving mining efficiencies, which could be a positive signal for long-term operational sustainability.
However, the decline in silver grades at both Guanaceví and Bolañitos mines raises concerns about the longevity and quality of the mines' resources. The reduced silver output, particularly the 32% drop at Bolañitos, could impact revenue forecasts if silver prices do not compensate for the lower volume. The reported increase in gold production at Bolañitos may partially offset the revenue impact, but the overall decline in silver equivalent production by 4% compared to the previous year could suggest a need for strategic reassessment of resource management and exploration activities.
From a financial perspective, the improved gold and silver prices mentioned by the CEO, Dan Dickson, could help mitigate the effects of lower silver production on Endeavour's revenue. The increase in metal sales, with silver ounces sold up by 5% and gold ounces sold up by 19%, indicates a healthy market demand and the company's ability to capitalize on it. The inventory levels at quarter-end suggest a strategic stockpile which could be leveraged for future price fluctuations.
Investors should monitor the company's ability to maintain or improve gold production levels, as the increased gold output could be a critical factor in maintaining profitability, especially if silver yields continue to decline. The upcoming financial results and conference call in May will be important for providing a more comprehensive understanding of the company's financial health, including cost management, profit margins and earnings outlook.
The technical aspects of Endeavour Silver Corp's operations, as reported, reveal both challenges and operational advancements. The mention of infrastructure upgrades in pumping and ventilation at Guanaceví is a significant development, indicating proactive measures to enhance production stability. Such improvements are essential for maintaining continuous production and can lead to cost savings over time.
The reliance on local third-party feed to supplement mine production, accounting for 11% of quarterly throughput, is an interesting strategy that may contribute to the variability in grade and recovery rates. This approach could provide flexibility in managing resource availability but also introduces dependencies that may affect consistency in production. The variations in grade, particularly the lower silver grades encountered, could be indicative of the natural depletion of higher-grade zones within the mines, necessitating a strategic response such as increased exploration efforts or investment in new technologies to optimize ore processing.
VANCOUVER, British Columbia, April 09, 2024 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to report first quarter 2024 production of 1,460,006 silver ounces (oz) and 10,133 gold oz, for silver equivalent (1) (“AgEq”) production of 2.3 million oz.
“Across our portfolio, the operations performed largely in-line with our expectations to deliver our annual production guidance of 8.1- 8.8 million silver equivalent ounces in 2024,” commented Dan Dickson, Chief Executive Officer. “The infrastructure upgrades in pumping and ventilation have stabilized production at Guanacevi, and the impact from these improvements is being realized by our strong start to the year. Gold and silver prices have strengthened considerably, which will improve future revenues. I look forward to building upon the success of this quarter.”
Q1 2024 Highlights
- Guanaceví Continues to Deliver: Silver and gold production were consistent with plan showing higher gold grades and overall recoveries, offset by lower silver grades. Throughput slightly exceeded plan due to plant refurbishments and mining efficiencies that were implemented in 2023.
- Bolañitos Performance Remains Steady: Strong gold production continued from the fourth quarter of 2023. Silver production continued to trend down as lower silver grades were encountered; variations in grades quarter to quarter are expected.
- Metal Sales and Inventories: Sold 1,756,094 oz silver and 10,880 oz gold during the quarter. Held 174,759 oz silver and 394 oz gold bullion inventory and 7,369 oz silver and 385 oz gold in concentrate inventory at quarter end.
Q1 2024 Mine Operations
Consolidated silver production decreased by
In Q1, 2024, Guanaceví throughput was
Bolañitos Q1 2024 throughput was
Production Highlights
| Three Months Ended March 31, | ||||||
| 2024 | 2023 | % Change | ||||
| Throughput (tonnes) | 221,794 | 211,073 | ||||
| Silver ounces produced | 1,460,006 | 1,623,545 | ( | |||
| Gold ounces produced | 10,133 | 9,342 | ||||
| Payable silver ounces produced | 1,450,308 | 1,608,212 | ( | |||
| Payable gold ounces produced | 9,948 | 9,184 | ||||
| Silver equivalent ounces produced1 | 2,270,677 | 2,370,905 | ( | |||
| Silver ounces sold | 1,756,094 | 1,667,408 | ||||
| Gold ounces sold | 10,880 | 9,126 | ||||
Q1 2024 Production by Mine
| Production | Tonnes | Tonnes | Grade | Grade | Recovery | Recovery | Silver | Gold | ||||||||
| by mine | Processed | per day | Ag gpt* | Au gpt* | Ag % | Au % | Oz | Oz | ||||||||
| Guanaceví | 115,004 | 1,263 | 402 | 1.25 | 1,335,742 | 4,124 | ||||||||||
| Bolañitos | 106,790 | 1,174 | 42 | 1.94 | 124,263 | 6,010 | ||||||||||
| Consolidated | 221,794 | 2,437 | 229 | 1.58 | 1,460,006 | 10,133 |
*gpt = grams per tonne
Totals may not add up due to rounding
Qualified Person
Dale Mah, P.Geo., Vice President Corporate Development, a qualified person under NI 43-101, has approved the scientific and technical information related to operations matters in this news release.
Q1 2024 Financial Results and Conference Call
Q1 2024 financial results will be released before market open on Thursday, May 9, 2024 and Management will host a conference call the same day at 1:00 pm Eastern time to discuss the results.
| Date: | Thursday, May 9, 2024 |
| Time: | 10:00am Pacific / 1:00pm Eastern |
| Telephone: | Canada & US +1-844-763-8274 International +1-647-484-8814 |
| Replay: | Canada & US +1-604-674-8052 International +1-855-669-9658 Passcode is 0771#; audio replay will be available on Company’s website |
About Endeavour Silver – Endeavour is a mid-tier precious metals company with a strong commitment to sustainable and responsible mining practices. With operations in Mexico and the development of the new cornerstone mine in Jalisco state, the company aims to contribute positively to the mining industry and the communities in which it operates. In addition, Endeavour has a portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.
Contact Information
Galina Meleger, VP, Investor Relations
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, X, Instagram and LinkedIn
Endnotes
1 Silver equivalent (AgEq)
AgEq is calculated using an 80:1 silver:gold ratio.
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 Endeavour’s anticipated performance in 2024 including changes in mining operations and forecasts of production levels, anticipated production costs and all-in sustaining costs 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 changes in production and costs guidance; the ongoing effects of inflation and supply chain issues on mine 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; fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Chilean peso, Canadian dollar and U.S. dollar); 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 continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, forecasted mine economics as of 2024, 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.
FAQ
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