Endeavour Silver Announces Strong Q1 2022 Financial and Operating Results with Earnings Per Share of $0.07
ca.finance.yahoo.com
Endeavour Silver Corporation
Wed, May 11, 2022, 3:50 a.m.·25 min read
VANCOUVER, British Columbia, May 11, 2022 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce its financial and operating results for the three months ended March 31, 2022. All dollar amounts are in US dollars (US$).
“Our first quarter performance was strong, putting us on track to achieve our 2022 production guidance,” stated Dan Dickson, CEO of Endeavour Silver. “High-grade ore at Guanacevi was a driving force and is expected to continue throughout the balance of the year, while production at Bolanitos remains solid. Industry-wide inflation is a growing challenge and we continue to look for ways to mitigate its negative impact.”
Added Mr. Dickson, “Looking ahead to the second quarter, we are targeting two major milestones: securing debt financing for Terronera and closing the Pitarrilla transaction. This acquisition, which is fully financed, is expected to close this quarter following receipt of approval from the Mexican Federal Economics Competition Commission. After the deal closes, drilling will commence to verify Pitarrilla’s historical data and update the historical resource. This will become a key focus for us for the balance of 2022.”
Q1 2022 Highlights
Strong Production: 1,314,955 ounces (oz) of silver and 8,695 oz of gold for 2.0 million oz silver equivalent (AgEq)(1).
Significant Growth in Net Revenue: Net revenue of $57.7 million from the sale of 1,717,768 oz of silver and 8,381 oz of gold at average realized prices of $24.38 per oz silver and $1,970 per oz gold.
Slight Decline in Net Earnings: Net earnings of $11.7 million, or $0.07 per share, down from net earnings of $12.2 million, or $0.08 per share in Q1 2021. Mine operating earnings of $20.3 million, up from mine operating earnings of $5.7 million in Q1 2021.
Improved Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)(2): $25.6 million, an increase of 7% from Q1 2021.
Increased Cash Flow: $20.6 million in operating cash flow before working capital changes(2), an increase of 293%. Mine operating cash flow before taxes(2) increased 101% to $26.7 million.
Higher Costs Due to Industry-Wide Inflation: Cash costs(2) of $10.21 per oz payable silver and all-in sustaining costs(2) of $20.90 per oz payable silver, net of gold credits. Cash costs(2) were slightly above guidance due to increased labour, power and consumables costs.
Healthy Balance Sheet: Cash position of $151.0 million and working capital(2) $168.4 million as at March 31, 2022.
Guanacevi Continued to Outperform: Production exceeded plan driven by higher grades.
Bolañitos Remained Steady: Strong silver production, higher silver grades and increased throughput were offset by lower than anticipated gold production and lower gold grades.
Reduced Metal Inventories: Sold 1,717,768 oz silver and 8,381 oz gold during the quarter. Management significantly reduced silver inventory and slightly increased gold inventory during the quarter and carried metal inventory at quarter end totaling 608,788 oz silver and 1,911 oz gold of bullion inventory and 59,594 oz silver and 1,931 oz gold in concentrate inventory.
Advanced the Terronera Project: The Terronera project continued to progress as work continued on final detailed engineering, early earth works, critical contracts and the procurement of long lead items. The Company intends to make a formal construction decision subject to completion of a financing package and receipt of additional amended permits in the coming months.
Announced Definitive Agreement to Acquire the Pitarrilla Project: Endeavour’s acquisition of Pitarrilla, one of the largest undeveloped silver deposits in the world, is expected to close in Q2 2022.
Completed $46.0 Million Bought Deal Financing: On March 22, 2022 Endeavour completed a prospectus offering for the issuance of 9,293,150 common shares at a price of $4.95 per common share for gross proceeds of $46.0 million. The Company plans to use the net proceeds to pay the $35 million cash consideration payable to SSR Mining Inc. on completion of the Company’s acquisition of the Pitarrilla project and for the Company’s general corporate purposes and working capital.
Financial Overview (see appendix for consolidated financial statements)
Highlights
| Three Months Ended March 31
|
| 2022
| 2021
| % Change
| Production
|
|
|
| Silver ounces produced
| 1,314,955
| 1,048,100
| 25%
| Gold ounces produced
| 8,695
| 11,109
| (22%)
| Payable silver ounces produced
| 1,303,540
| 1,036,710
| 26%
| Payable gold ounces produced
| 8,549
| 10,894
| (22%)
| Silver equivalent ounces produced(2)
| 2,010,555
| 1,936,820
| 4%
| Cash costs per silver ounce(2)
| 10.21
| 7.86
| 30%
| Total production costs per ounce(2)
| 15.13
| 15.41
| (2%)
| All-in sustaining costs per ounce (2)
| 20.90
| 19.94
| 5%
| Processed tonnes
| 206,147
| 209,453
| (2%)
| Direct operating costs per tonne(2)
| 122.86
| 112.36
| 9%
| Direct costs per tonne(2)
| 148.53
| 126.23
| 18%
| Silver co-product cash costs(2)
| 15.18
| 15.16
| 0%
| Gold co-product cash costs(2)
| 1,226
| 950
| 29%
| Financial
| Revenue ($ millions)
| 57.7
| 34.5
| 67%
| Silver ounces sold
| 1,717,768
| 623,379
| 176%
| Gold ounces sold
| 8,381
| 10,663
| (21%)
| Realized silver price per ounce
| 24.38
| 27.17
| (10%)
| Realized gold price per ounce
| 1,970
| 1,703
| 16%
| Net earnings ($ millions)
| 11.7
| 12.2
| (5%)
| Adjusted net earnings (loss)(2) ($ millions)
| 11.7
| (4.5)
| 357%
| Mine operating earnings ($ millions)
| 20.3
| 5.7
| 258%
| Mine operating cash flow before taxes(2) ($ millions)
| 26.7
| 13.3
| 101%
| Operating cash flow before working capital changes(2)
| 20.6
| 5.2
| 293%
| EBITDA(2) ($ millions)
| 25.6
| 24.0
| 7%
| Working capital (2) ($ millions)
| 168.4
| 113.1
| 49%
| Shareholders
| Earnings per share – basic ($)
| 0.07
| 0.08
| (13%)
| Adjusted earnings (loss) per share – basic(8) ($)
| 0.07
| (0.03)
| 339%
| Operating cash flow before working capital changes per share(2)
| 0.12
| 0.03
| 266%
| Weighted average shares outstanding
| 171,557,220
| 159,670,842
| 7%
|
(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 March 31, 2022, net revenue, net of $0.7 million of smelting and refining costs, increased by 67% to $57.7 million (Q1 2021: $34.5 million).
Gross sales of $58.4 million in Q1 2022 represented a 66% increase over the $35.1 million in Q1 2021. Silver oz sold increased by 176%, due to both increased silver production and the sale of the larger finished goods inventory held at December 31, 2021. There was a 10% decrease in the realized silver price, resulting in a 148% increase in proceeds from silver sales. Gold oz sold decreased by 21% with a 16% increase in the realized gold price, resulting in a 9% decrease in proceeds from gold sales. During the period, the Company sold 1,717,768 oz silver and 8,381 oz gold for realized prices of $24.38 and $1,970 per oz, respectively, compared to Q1 2021 sales of 623,379 oz silver and 10,663 oz gold for realized prices of $27.17 and $1,703 per oz, respectively. In Q1 2022, London spot prices for silver and gold averaged $24.01 and $1,877, respectively.
The Company significantly decreased its finished goods silver inventory and slightly increased its finished goods gold inventory to 668,382 oz and 3,841 oz, respectively, at March 31, 2022 compared to 1,082,610 oz silver and 3,674 oz gold at December 31, 2021. The cost allocated to these finished goods was $13.5 million at March 31, 2022 compared to $15.6 million at December 31, 2021. At March 31, 2022, the finished goods inventory fair market value was $24.1 million, compared to $31.7 million at December 31, 2021. Earnings and other financial metrics, including mine operating cash flow(2), operating cash flow(2) and EBITDA(2) were impacted by the sale during Q1 2022 of the increased bullion inventory held at year end.
After cost of sales of $37.4 million (Q1 2021 - $28.8 million), an increase of 30%, mine operating earnings were $20.3 million (Q1 2021 - $5.7 million). The increase in cost of sales was impacted by both an increase in the quantity of silver ounces sold during the period, increased production and increased labour, power and consumables costs with significantly higher royalty costs, partially offset by improved productivity at the Guanaceví and Bolañitos operations. Royalties increased 75% to $4.3 million primarily due to the increase in silver ounces sold during the period.
The Company had operating earnings of $12.6 million (Q1 2021: $14.3 million) after exploration and evaluation costs of $3.2 million (Q1 2021: $4.1 million), general and administrative costs of $4.3 million (Q1 2021: $3.5 million), and care and maintenance cost of $0.2 million (Q1 2021: $0.5 million). Operating earnings in Q1 2021 were also positively impacted by an impairment reversal of $16.8 million as a result of the valuation assessment done for El Cubo mine and related assets upon classification as held for sale.
Earnings before income taxes were $18.9 million (Q1 2021: $16.0 million) after finance costs of $0.3 million (Q1 2021: $0.3 million), a foreign exchange gain of $0.8 million (Q1 2021: loss of $0.7 million), and investment and other income of $5.8 million (Q1 2021: $2.7 million). The investment and other income during Q1 2022 primarily resulted from an unrealized gain on marketable securities and warrants of $5.4 million (Q1 2021: $2.5 million).
The Company realized net earnings for the period of $11.7 million (Q1 2021: $12.2 million) after an income tax expense of $7.2 million (Q1 2021: $3.8 million). Current income tax expense increased to $1.0 million (Q1 2021 - $0.7 million) due to increased profitability impacting the special mining duty, while deferred income tax expense of $6.2 million is primarily due to the estimated use of loss carryforwards to reduce taxable income generated at both Guanacevi and Bolanitos (Q1 2021 – $3.1 million).
Direct operating costs(2) on a per tonne basis increased to $122.86, up 9% compared with Q1 2021 due to higher operating costs at Guanaceví and Bolañitos. Guanaceví and Bolañitos have seen increased labour, power and consumables costs and at Guanaceví, increased third party ore purchased and operating development have increased compared to the prior year.
Consolidated cash costs per oz, net of by-product credits, increased to $10.21 primarily due to the higher direct costs per tonne and lower gold credit driven by lower gold production compared to Q1 2021. AISC increased by 5% on a per oz basis compared to Q1 2021 as a result of higher cash costs, increased capital expenditures at Guanaceví, increased allocated general and administrative costs, offset by increased production.
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 info@edrsilver.com.
Conference Call
A conference call to discuss the Company’s Q1 2022 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:
|
| Wednesday, May 11, 2022 at 10:00 a.m. PT / 1:00 p.m. ET
|
|
|
| Telephone:
|
| Toll-free in Canada and the US +1-800-319-4610
Local or International +1-604-638-5340
Please 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 8312#. The replay will also be available on the Company’s website at www.edrsilver.com.
|
|
|
|
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development 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 Information
Trish Moran
Interim Head of Investor Relations
Tel: (416) 564-4290
Email: pmoran@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 March 31, 2022 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 March 31, 2022 MD&A available on SEDAR at www.sedar.com.
Reconciliation of Working Capital
|
|
|
| Expressed in thousands
| As at
| As at
|
| March 31, 2022
| December 31, 2021
| Current assets
| $208,911
| $161,762
| Current liabilities
| 40,677
| 40,554
| Working capital
| $168,234
| $121,208
|
|
|
| Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
|
|
|
| Expressed in thousands
| Three Months Ended March 31
| (except for share numbers and per share amounts)
| 2022
| 2021
| Net income for the period per financial statements
| $11,662
| $12,249
| Impairment (reversal) of non-current assets, net of tax
| -
| ($16,791)
| Adjusted net earnings (loss)
| $11,662
| ($4,542)
| Basic weighted average share outstanding
| 171,557,220
| 159,670,842
| Adjusted net earnings (loss) per share
| $0.07
| ($0.03)
|
|
|
| Reconciliation of Mine Operating Cash Flow Before Taxes
|
|
|
| Expressed in thousands
| Three Months Ended March 31
|
| 2022
| 2021
| Mine operating earnings per financial statements
| $20,269
| $5,664
| Share-based compensation
| 127
| 118
| Amortization and depletion
| 6,306
| 7,496
| Mine operating cash flow before taxes
| $26,702
| $13,278
|
|
|
| Reconciliation of Operating Cash Flow Before Working Capital Changes and Operating Cash Flow Before Working Capital Changes Per Share
|
|
|
| Expressed in thousands
| Three Months Ended March 31
| (except for per share amounts)
| 2022
| 2021
| Cash from (used in) operating activities per financial statements
| $21,733
| ($3,923)
| Net changes in non-cash working capital per financial statements
| 1,114
| (9,166)
| Operating cash flow before working capital changes
| $20,619
| $5,243
| Basic weighted average shares outstanding
| 171,557,220
| 159,670,842
| Operating cash flow before working capital changes per share
| $0.12
| $0.03
|
|
|
| Reconciliation of EBITDA and Adjusted EBITDA
|
|
|
| Expressed in thousands
| Three Months Ended March 31
|
| 2022
| 2021
| Net income for the period per financial statements
| $11,662
| $12,249
| Depreciation and depletion – cost of sales
| 6,306
| 7,496
| Depreciation and depletion – exploration
| 107
| 79
| Depreciation and depletion – general & administration
| 48
| 34
| Depreciation and depletion – care & maintenance
| 30
| 15
| Finance costs
| 177
| 291
| Current income tax expense
| 1,015
| 671
| Deferred income tax expense
| 6,222
| 3,127
| EBITDA
| $25,567
| $23,962
| Share based compensation
| 1,527
| 1,165
| Impairment (reversal) of non-current assets, net of tax
| -
| (16,791)
| Adjusted EBITDA
| $27,094
| $8,336
| Basic weighted average shares outstanding
| 171,557,220
| 159,670,842
| Adjusted EBITDA per share
| $0.16
| $0.05
|
Reconciliation of Cash Cost Per Silver Ounce, Total Production Costs Per Ounce, Direct Operating Costs Per Tonne, Direct Costs Per Tonne
|
| Expressed in thousands
| Three Months Ended March 31, 2022
| Three Months Ended March 31, 2021
|
| Guanaceví
| Bolañitos
| Total
| Guanaceví
| Bolañitos
| El Compas
| Total
| Direct production costs per financial statements
| $17,884
| $8,837
| $26,721
| $8,060
| $7,105
| $3,563
| $18,728
| Smelting and refining costs included in net revenue
| -
| 654
| 654
| -
| 489
| 138
| 627
| Opening finished goods
| (10,093)
| (2,857)
| (12,950)
| (1,509)
| (250)
| (642)
| (2,401)
| Finished goods NRV adjustment
| -
| -
| -
| -
| -
| -
| -
| Closing finished goods
| 7,908
| 2,995
| 10,903
| 5,935
| 204
| 441
| 6,580
| Direct operating costs
| 15,699
| 9,629
| 25,328
| 12,486
| 7,548
| 3,500
| 23,534
| Royalties
| 4,234
| 83
| 4,317
| 2,213
| 68
| 179
| 2,460
| Special mining duty (1)
| 731
| 244
| 975
| 257
| 151
| 38
| 446
| Direct costs
| 20,664
| 9,956
| 30,620
| 14,956
| 7,767
| 3,717
| 26,440
| By-product gold sales
| (5,022)
| (11,488)
| (16,510)
| (3,464)
| (10,529)
| (4,165)
| (18,158)
| Opening gold inventory fair market value
| 1,900
| 4,784
| 6,684
| 735
| 746
| 1,283
| 2,764
| Closing gold inventory fair market value
| (3,724)
| (3,763)
| (7,487)
| (1,925)
| (309)
| (662)
| (2,896)
| Cash costs net of by-product
| 13,818
| (511)
| 13,307
| 10,302
| (2,325)
| 173
| 8,150
| Amortization and depletion
| 3,910
| 2,396
| 6,306
| 1,593
| 3,793
| 2,110
| 7,496
| Share-based compensation
| 63
| 64
| 127
| 39
| 40
| 39
| 118
| Opening finished goods depreciation and depletion
| (1,965)
| (635)
| (2,600)
| (271)
| (104)
| (804)
| (1,179)
| NRV depreciation cost adjustment
| -
| -
| -
| -
| -
| -
| -
| Closing finished goods depreciation and depletion
| 1,689
| 897
| 2,586
| 1,137
| 118
| 133
| 1,388
| Total production costs
| $17,515
| $2,211
| $19,726
| $12,800
| $1,522
| $1,651
| $15,973
|
|
|
|
|
|
|
|
|
| Three Months Ended March 31, 2022
| Three Months Ended March 31, 2021
|
| Guanaceví
| Bolañitos
| Total
| Guanaceví
| Bolañitos
| El Compas
| Total
| Throughput tonnes
| 101,253
| 104,894
| 206,147
| 88,632
| 97,692
| 23,129
| 209,453
| Payable silver ounces
| 1,130,448
| 173,092
| 1,303,540
| 915,462
| 98,988
| 22,260
| 1,036,710
|
|
|
|
|
|
|
|
| Cash costs per silver ounce
| $12.22
| ($2.95)
| $10.21
| $11.25
| ($23.49)
| $7.77
| $7.86
| Total production costs per ounce
| $15.49
| $12.77
| $15.13
| $13.98
| $15.38
| $74.17
| $15.41
| Direct operating costs per tonne
| $155.05
| $91.80
| $122.86
| $140.87
| $77.26
| $151.33
| $112.36
| Direct costs per tonne
| $204.08
| $94.91
| $148.53
| $168.74
| $79.50
| $160.71
| $126.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expressed in thousands
| Three Months Ended March 31, 2022
| Three Months Ended March 31, 2021
|
| Guanaceví
| Bolañitos
| Total
| Guanaceví
| Bolañitos
| El Compas
| Total
| Closing finished goods
| 7,908
| 2,995
| 10,903
| 5,935
| 204
| 441
| 6,580
| Closing finished goods depletion
| 1,689
| 897
| 2,586
| 1,137
| 118
| 133
| 1,388
| Finished goods inventory
| $9,597
| $3,892
| $13,489
| $7,072
| $322
| $574
| $7,968
|
Reconciliation of All-In Costs Per Ounce and AISC per ounce
|
| Expressed in thousands
| Three Months Ended March 31, 2022
| Three Months Ended March 31, 2021
|
| Guanaceví
| Bolañitos
| Total
| Guanaceví
| Bolañitos
| El Compas
| Total
| Cash costs net of by-product
| $13,818
| ($511)
| $13,307
| $10,302
| ($2,325)
| $173
| $8,150
| Operations share-based compensation
| 63
| 64
| 127
| 39
| 40
| 39
| 118
| Corporate general and administrative
| 2,067
| 876
| 2,943
| 1,588
| 839
| 277
| 2,704
| Corporate share-based compensation
| 917
| 389
| 1,306
| 520
| 275
| 91
| 886
| Reclamation - amortization/accretion
| 65
| 53
| 118
| 12
| 11
| 2
| 25
| Mine site expensed exploration
| 352
| 250
| 602
| 456
| 234
| 193
| 883
| Intangible payments
| 29
| 12
| 41
| 31
| 31
| 31
| 93
| Equipment loan payments
| 245
| 489
| 734
| 308
| 568
| -
| 876
| Capital expenditures sustaining
| 5,646
| 2,426
| 8,072
| 4,204
| 2,734
| -
| 6,938
| All-In-Sustaining Costs
| $23,202
| $4,048
| $27,250
| $17,460
| $2,407
| $806
| $20,673
| Growth exploration and evaluation
|
|
| 2,413
|
|
|
| 3,007
| Growth capital expenditures
|
|
| 4,925
|
|
|
| 332
| All-In-Costs
|
|
| $34,588
|
|
|
| $24,012
|
|
|
|
|
|
|
|
|
| Three Months Ended March 31, 2022
| Three Months Ended March 31, 2021
|
| Guanaceví
| Bolañitos
| Total
| Guanaceví
| Bolañitos
| El Compas
| Total
| Throughput tonnes
| 101,253
| 104,894
| 206,147
| 88,632
| 97,692
| 23,129
| 209,453
| Payable silver ounces
| 1,130,448
| 173,092
| 1,303,540
| 915,462
| 98,988
| 22,260
| 1,036,710
| Silver equivalent production (ounces)
| 1,412,010
| 598,545
| 2,010,555
| 1,137,657
| 600,787
| 198,376
| 1,936,820
|
|
|
|
|
|
|
|
| Sustaining cost per ounce
| $20.52
| $23.39
| $20.90
| $19.07
| $24.31
| $36.19
| $19.94
| All-In-costs per ounce
|
|
| $26.53
|
|
|
| $23.16
|
Reconciliation of Sustaining Capital and Growth Capital
|
|
|
| Expressed in thousands
| Three Months Ended March 31
|
| 2022
| 2021
| Capital expenditures sustaining
| $8,072
| $6,938
| Growth capital expenditures
| 4,925
| 332
| Property, plant and equipment expenditures per Consolidated Statement of Cash Flows
| $12,997
| $7,270
|
Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
|
| Expressed in thousands
| Three Months Ended March 31, 2022
| Three Months Ended March 31, 2021
|
| Guanaceví
| Bolañitos
| Total
| Guanaceví
| Bolañitos
| El Compas
| Total
| Direct production costs per financial statements
| $17,884
| $8,837
| $26,721
| $8,060
| $7,105
| $3,563
| $18,728
| Smelting and refining costs included in net revenue
| -
| 654
| 654
| -
| 489
| 138
| 627
| Royalties
| 4,234
| 83
| 4,317
| 2,213
| 68
| 179
| 2,460
| Special mining duty
| 731
| 244
| 975
| 257
| 151
| 38
| 446
| Opening finished goods
| (10,093)
| (2,857)
| (12,950)
| (1,509)
| (250)
| (642)
| (2,401)
| Closing finished goods
| 7,908
| 2,995
| 10,903
| 5,935
| 204
| 441
| 6,580
| Direct costs
| $20,664
| $9,956
| $30,620
| $14,956
| $7,767
| $3,717
| $26,440
|
|
|
|
|
|
|
|
|
| Three Months Ended March 31, 2022
| Three Months Ended March 31, 2021
|
| Guanaceví
| Bolañitos
| Total
| Guanaceví
| Bolañitos
| El Compas
| Total
| Silver production (ounces)
| 1,133,850
| 181,105
| 1,314,955
| 918,217
| 106,227
| 23,656
| 1,048,100
| Average realized silver price ($)
| 24.38
| 24.38
| 24.38
| 27.17
| 27.17
| 27.17
| 27.17
| Silver value ($)
| 27,643,263
| 4,415,340
| 32,058,603
| 24,947,956
| 2,886,188
| 642,734
| 28,476,877
|
|
|
|
|
|
|
|
| Gold production (ounces)
| 3,477
| 5,218
| 8,695
| 2,743
| 6,182
| 2,184
| 11,109
| Average realized gold price ($)
| 1,970
| 1,970
| 1,970
| 1,703
| 1,703
| 1,703
| 1,703
| Gold value ($)
| 6,849,690
| 10,279,460
| 17,129,150
| 4,671,329
| 10,527,946
| 3,719,352
| 18,918,627
|
|
|
|
|
|
|
|
| Total metal value ($)
| 34,492,953
| 14,694,800
| 49,187,753
| 29,619,285
| 13,414,134
| 4,362,086
| 47,395,504
| Pro-rated silver costs
| 80%
| 30%
| 65%
| 84%
| 22%
| 15%
| 60%
| Pro-rated gold costs
| 20%
| 70%
| 35%
| 16%
| 78%
| 85%
| 40%
|
|
|
|
|
|
|
|
| Pro-rated silver costs ($)
| 16,560
| 2,991
| 19,957
| 12,597
| 1,671
| 548
| 15,886
| Pro-rated gold costs ($)
| 4,104
| 6,965
| 10,663
| 2,359
| 6,096
| 3,169
| 10,554
|
|
|
|
|
|
|
|
| Silver co-product cash costs ($)
| 14.61
| 16.52
| 15.18
| 13.72
| 15.73
| 23.15
| 15.16
| Gold co-product cash costs ($)
| 1,180
| 1,335
| 1,226
| 860
| 986
| 1,451
| 950
|
Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce
|
|
|
| Expressed in thousands
| Three Months Ended March 31
|
| 2022
| 2021
| Gross silver sales
| $41,884
| $16,935
| Silver ounces sold
| 1,717,768
| 623,379
| Realized silver price per ounces
| $24.38
| $27.17
|
|
|
| Expressed in thousands
| Three Months Ended March 31
|
| 2022
| 2021
| Gross gold sales
| $16,510
| $18,158
| Gold ounces sold
| 8,381
| 10,663
| Realized gold price per ounces
| $1,970
| $1,703
|
|
|
|
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 2022 including changes in mining operations and forecasts of production levels, anticipated production costs and all-in sustaining costs, the timing and results of various activities and the impact of the COVID 19 pandemic on operations. 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 ultimate impact of the COVID 19 pandemic on operations and results, changes in production and costs guidance, 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 continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, 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
|
|
| March 31,
| March 31,
|
|
|
| 2022
|
|
| 2021
|
| Revenue
|
| $
| 57,740
|
| $
| 34,466
|
|
|
|
|
| Cost of sales:
|
|
|
| Direct production costs
|
|
| 26,721
|
|
| 18,728
|
| Royalties
|
|
| 4,317
|
|
| 2,460
|
| Share-based payments
|
|
| 127
|
|
| 118
|
| Depreciation, depletion and amortization
|
|
| 6,306
|
|
| 7,496
|
|
|
|
| 37,471
|
|
| 28,802
|
|
|
|
|
| Mine operating earnings
|
|
| 20,269
|
|
| 5,664
|
|
|
|
|
| Expenses:
|
|
|
| Exploration and evaluation
|
|
| 3,216
|
|
| 4,130
|
| General and administrative
|
|
| 4,297
|
|
| 3,523
|
| Care and maintenance costs
|
|
| 190
|
|
| 521
|
| Impairment (reversal of impairment) of non-current assets, net
|
|
| -
|
|
| (16,791
| )
|
|
|
| 7,703
|
|
| (8,617
| )
|
|
|
|
| Operating earnings
|
|
| 12,566
|
|
| 14,281
|
|
|
|
|
| Finance costs
|
|
| 298
|
|
| 291
|
|
|
|
|
| Other income (expense):
|
|
|
| Foreign exchange
|
|
| 811
|
|
| (694
| )
| Investment and other
|
|
| 5,820
|
|
| 2,751
|
|
|
|
| 6,631
|
|
| 2,057
|
|
|
|
|
| Earnings before income taxes
|
|
| 18,899
|
|
| 16,047
|
|
|
|
|
| Income tax expense:
|
|
|
| Current income tax expense
|
|
| 1,015
|
|
| 671
|
| Deferred income tax expense
|
|
| 6,222
|
|
| 3,127
|
|
|
|
| 7,237
|
|
| 3,798
|
|
|
|
|
| Net earnings and comprehensive earnings for the period
|
| $
| 11,662
|
| $
| 12,249
|
|
|
|
|
| Basic earnings per share based on net earnings
|
| $
| 0.07
|
| $
| 0.08
|
| Diluted earnings per share based on net earnings
|
| $
| 0.07
|
| $
| 0.07
|
|
|
|
|
| Basic weighted average number of shares outstanding
|
|
| 171,557,220
|
|
| 159,670,842
|
| Diluted weighted average number of shares outstanding
|
|
| 174,438,202
|
|
| 163,742,420
|
|
|
|
|
|
ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(unaudited – prepared by management)
(expressed in thousands of US dollars)
|
| March 31,
| December 31,
|
|
|
| 2022
|
|
| 2021
|
| ASSETS
|
|
|
|
|
|
|
| Current assets
|
|
|
| Cash and cash equivalents
|
| $
| 151,014
|
| $
| 103,303
|
| Other investments
|
|
| 13,891
|
|
| 11,200
|
| Accounts and other receivable
|
|
| 13,382
|
|
| 14,462
|
| Income tax receivable
|
|
| 171
|
|
| 177
|
| Inventories
|
|
| 25,011
|
|
| 27,485
|
| Prepaid expenses
|
|
| 5,542
|
|
| 5,135
|
| Total current assets
|
|
| 209,011
|
|
| 161,762
|
|
|
|
|
| Non-current deposits
|
|
| 597
|
|
| 599
|
| Non-current income tax receivable
|
|
| 3,570
|
|
| 3,570
|
| Non-current other investments
|
|
| 4,037
|
|
| -
|
| Non-current IVA receivable
|
|
| 5,545
|
|
| 4,256
|
| Deferred income tax asset
|
|
| -
|
|
| 936
|
| Intangible assets
|
|
| -
|
|
| 40
|
| Right-of-use leased assets
|
|
| 665
|
|
| 664
|
| Mineral properties, plant and equipment
|
|
| 131,906
|
|
| 122,197
|
| Total assets
|
| $
| 355,331
|
| $
| 294,024
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
| Current liabilities
|
|
|
| Accounts payable and accrued liabilities
|
| $
| 32,748
|
| $
| 31,991
|
| Income taxes payable
|
|
| 2,901
|
|
| 4,228
|
| Loans payable
|
|
| 4,805
|
|
| 4,128
|
| Lease liabilities
|
|
| 204
|
|
| 207
|
| Total current liabilities
|
|
| 40,658
|
|
| 40,554
|
|
|
|
|
| Loans payable
|
|
| 7,484
|
|
| 6,366
|
| Lease liabilities
|
|
| 810
|
|
| 794
|
| Provision for reclamation and rehabilitation
|
|
| 7,554
|
|
| 7,397
|
| Deferred income tax liability
|
|
| 6,792
|
|
| 1,506
|
| Total liabilities
|
|
| 63,298
|
|
| 56,617
|
|
|
|
|
| Shareholders' equity
|
|
|
| Common shares, unlimited shares authorized, no par value, issued
|
|
|
| and outstanding 180,561,327 shares (Dec 31, 2021 - 170,537,307 shares)
|
| 629,595
|
|
| 585,406
|
| Contributed surplus
|
|
| 5,106
|
|
| 6,331
|
| Retained earnings (deficit)
|
|
| (342,668
| )
|
| (354,330
| )
| Total shareholders' equity
|
|
| 292,033
|
|
| 237,407
|
| Total liabilities and shareholders' equity
|
| $
| 355,331
|
| $
| 294,024
|
|
|
|
|
|
ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(unaudited – prepared by management)
(expressed in thousands of US dollars)
|
| Three months ended
|
|
| March 31,
| March 31,
|
|
|
| 2022
|
|
| 2021
|
| Operating activities
|
|
|
| Net earnings for the period
|
| $
| 11,662
|
| $
| 12,249
|
|
|
|
|
| Items not affecting cash:
|
|
|
| Share-based compensation
|
|
| 1,527
|
|
| 1,165
|
| Depreciation, depletion and amortization
|
|
| 6,462
|
|
| 7,624
|
| Impairment (reversal of impairment) of non-current assets, net
|
|
| -
|
|
| (16,791
| )
| Deferred income tax expense (recovery)
|
|
| 6,222
|
|
| 3,127
|
| Unrealized foreign exchange loss (gain)
|
|
| (136
| )
|
| 90
|
| Finance costs
|
|
| 298
|
|
| 291
|
| Loss (gain) on asset disposal
|
|
| (59
| )
|
| 34
|
| Loss (gain) on other investments
|
|
| (5,357
| )
|
| (2,546
| )
| Net changes in non-cash working capital
|
|
| 1,114
|
|
| (9,166
| )
| Cash from (used in) operating activities
|
|
| 21,733
|
|
| (3,923
| )
|
|
|
|
| Investing activities
|
|
|
| Proceeds on disposal of property, plant and equipment
|
|
| 34
|
|
| 556
|
| Mineral property, plant and equipment
|
|
| (12,997
| )
|
| (7,270
| )
| Purchase of investments
|
|
| (1,371
| )
|
| (832
| )
| Proceeds from disposal of marketable securities
|
|
| -
|
|
| 4,383
|
| Redemption of (investment in) non-current deposits
|
|
| 2
|
|
| (20
| )
| Cash used in investing activities
|
|
| (14,332
| )
|
| (3,183
| )
|
|
|
|
| Financing activities
|
|
|
| Repayment of loans payable
|
|
| (1,083
| )
|
| (969
| )
| Repayment of lease liabilities
|
|
| (52
| )
|
| (42
| )
| Interest paid
|
|
| (177
| )
|
| (193
| )
| Public equity offerings
|
|
| 46,001
|
|
| 30,100
|
| Exercise of options
|
|
| 130
|
|
| 3,798
|
| Share issuance costs
|
|
| (2,797
| )
|
| (602
| )
| Performance share unit redemption
|
|
| (1,897
| )
|
| -
|
| Cash from financing activities
|
|
| 40,125
|
|
| 32,092
|
|
|
|
|
| Effect of exchange rate change on cash and cash equivalents
|
|
| 185
|
|
| (80
| )
|
|
|
|
| Increase in cash and cash equivalents
|
|
| 47,526
|
|
| 24,986
|
| Cash and cash equivalents, beginning of the period
|
|
| 103,303
|
|
| 61,083
|
| Cash and cash equivalents, end of the period
|
| $
| 151,014
|
| $
| 85,989
|
|
|
