Endeavour Records 2014 Net Loss, but Confident in El Cuba Turnaround

- March 5th, 2015

Endeavour Silver Corp. (TSX:EDR,NYSE:EXK) announced its 2014 financial results, noting that it recorded a net loss of $74.5 million, or $0.74 per share. That includes an impairment of $83 million on its El Cubo mine.

Endeavour Silver Corp. (TSX:EDR,NYSE:EXK) announced its 2014 financial results, noting that it recorded a net loss of $74.5 million, or $0.74 per share. That includes an impairment of $83 million on its El Cubo mine.

Other financial highlights (compared to 2013) include:

  • Adjusted earnings (loss) decreased 256% to $17.2 million ($0.17 loss per share) compared to adjusted earnings of $11.1 million ($0.11 per share)
  • EBITDA decreased 55% to $42.6 million
  • Cash flow from operations before working capital changes decreased 64% to $29.3 million
  • Mine operating cash flow decreased 40% to $70.5 million
  • Revenue decreased 29% to $196.9 million
  • Realized silver price decreased 19% to $18.76 per ounce (oz) sold (consistent with 2014 average spot price)
  • Realized gold price decreased 7% to $1,273 per oz sold (consistent with 2014 average spot price)
  • Cash costs increased 5% to $8.31 per oz silver payable (net of gold credits)
  • All-in sustaining costs decreased 8% to $16.79 per oz silver payable (net of gold credits)
  • Bullion inventory at year-end of 418,564 oz silver and 1,052 oz gold, up sharply year-on-year
  • Concentrate inventory at year-end of 88,518 oz silver and 1,326 oz gold, also up sharply
  • Cash and equivalents decreased 11% to $31.0 million at year-end compared to $35.0 million

Bradford Cooke, CEO of Endeavour, commented:

Lower precious metals prices continued to beset the mining industry in 2014. I am proud of our site management and operations teams for their efforts to successfully reduce our all-in sustaining costs in this difficult environment. We remain focused on optimizing our mining operations further in order to ensure that each mine generates positive operating cash flow through this current metal price downturn.

Low metal prices and an impairment charge on El Cubo both weighed on our financial performance in 2014 but the El Cubo operating turn-around was completed in December with the mine output rising to fill the plant to capacity. Management is now preparing alternative mine plans for El Cubo to further reduce its all-in sustaining costs and improve its financial performance in 2015. The support of the miner’s union at El Cubo is required for any of the alternative mine plans to be successful.

Click here to read the full Endeavour Silver Corp. (TSX:EDR,NYSE:EXK) press release.

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