Endeavour Reports Lower Silver Output for Q1 2016

Endeavour Silver Corp. (TSX:EDR,NYSE:EXK) released its Q1 2016 production results. The company operates three mines in Mexico: Guanacevi, Bolanitos and El Cubo.
Production highlights are as follows:

• Silver production decreased 17% to 1,510,065 oz
• Gold production increased 1% to 15,960 oz
• Silver equivalent production was 2.7 million oz (at a 75:1 silver: gold ratio)
• Silver oz sold down 19% to 1,511,319 oz
• Gold oz sold down 3% to 15,255 oz
• Bullion inventory at quarter-end included 88,609 oz silver and 188 oz gold
• Concentrate inventory at quarter-end included 67,690 oz silver and 1,316 oz gold

Brad Cooke, CEO of Endeavour Silver, commented:

Our plan for 2016 is to focus on profit margin by minimizing all-in sustaining costs and improving after-tax free cash flow at each mine. That means investing less on exploration and development, primarily at El Cubo and Bolañitos, as well as evaluating new opportunities to reduce operating costs at each mine.

For example, we are encouraged by the initial test results to significantly improve ore grade at El Cubo by reducing waste going into the plant using an optical sorting technology. A pilot test using this technology on El Cubo ore will be completed in the second quarter. We will reconsider investing in exploration and development at El Cubo and Bolañitos once we know operating costs can be lowered further and/or metal prices are materially higher. Until then, we think it is better to produce less metal at a profit than more metal at a loss.

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