Endeavour Silver Incurs 2015 Net Loss of $149.9 Million

Endeavour Silver Corp. (TSX:EDR,NYSE:EXK) released its financial results for 2015, commenting that it incurred a net loss of $149.9 million, or $1.47 per share, during the period. That includes a $134-million impairment on its El Cubo and Bolanitos mines, both located in Mexico.
Other 2015 highlights include:

• Adjusted loss⁽¹⁾ reduced 35% to $11.2 million ($0.11 loss per share) compared to adjusted loss of $17.2 million ($0.17 per share)
• EBITDA⁽¹⁾ decreased 20% to $34.1 million
• Cash flow from operations before working capital changes increased 20% to $35.2 million
• Mine operating cash flow⁽¹⁾ decreased 18% to $57.7 million
• Revenue decreased 7% to $183.6 million
• Realized silver price decreased 16% to $15.79 per ounce (oz) sold (consistent with 2015 average spot price)
• Realized gold price decreased 10% to $1,148 per oz sold (consistent with 2015 average spot price)
• Cash costs⁽¹⁾ beat guidance, increased 1% to $8.39 per oz silver payable (net of gold credits)
• All-in sustaining costs beat guidance, decreased 7% to $15.62 per oz silver payable (net of gold credits)
• Bullion inventory at year-end of 121,913 oz silver and 317 oz gold
• Concentrate inventory at year-end of 72,583 oz silver and 967 oz gold
• Cash and equivalents decreased 34% to $20.4 million at year-end compared to $31.0 million
• Working capital decreased 19% to $17.2 million at year end compared to $21.2 million

Bradford Cooke, CEO of Endeavour Silver, commented:

We delivered another solid year of operating performance in 2015, beating our guidance for silver production, cash costs and all-in sustaining costs and meeting our gold production guidance. Guanaceví continued to perform better than plan and the completion of the Phase two mine expansion from 1,500 tpd to 2,200 tpd at El Cubo was a significant accomplishment.
As a result, Guanaceví and Bolañitos continued to generate free cash flow and we reduced the operating losses at El Cubo in 2015 by improving the productivity of each of our mines and reducing all-in sustaining costs for the third consecutive year. Our strong operating cash flow allowed us to reduce the line of credit and we converted the balance to a two-year term loan subsequent to year-end.
Each mine is focused on minimizing all-in sustaining costs and improving after-tax free cash flow this year so we plan lower production in 2016. For El Cubo, that means we have suspended further investments on exploration and development until metal prices recover, so production will decline through the year until the mine goes on care and maintenance in the fourth quarter. At the other two mines, we are evaluating opportunities to further enhance their upside potential.

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