Endeavour Silver on Track to Meet 2015 Production Guidance

Endeavour Silver Corp. (TSX:EDR,NYSE:EXK) announced its financial results for Q2 2015, commenting that it incurred a net loss of $1 million, or $0.01 per share. That’s slightly up from a net loss of $0.3 million in the year-ago quarter.
Overall, the company said its financial performance was lower compared to Q1 2015 and Q2 2014; its operating costs were up slightly compared to Q1 2015, but “substantially lower” compared to Q2 2014.
Further key Q2 financial points include:

• EBITDA decreased 19% to $10.9 million
• Cash flow from operations before working capital changes decreased 8% to $11.0 million
• Mine operating cash flow before taxes decreased 17% to $16.4 million
• Revenue decreased 13% to $47.7 million
• Realized silver price decreased 19% to $16.34 per ounce (oz) sold
• Realized gold price decreased 9% to $1,191 per oz sold
• Cash costs decreased 13% to $8.60 per oz silver payable (net of gold credits)
• All-in sustaining (AIS) costs decreased 18% to $16.86 per oz silver payable (net of gold credits)
• On track to beat cash cost and AIS cost guidance for 2015
• Working capital of $26.7 million after using free cash flow to reduce LOC debt by $4 million to $25 million and increase cash holdings by $5.5 million to $31.8 million

Q2 operating highlights include:

• Silver production increased 8% to 1,805,569 oz, 35,828 oz more than previously reported
• Gold production decreased 11% to 13,430 oz, 383 oz more than previously reported
• Silver equivalent production increased 1% to 2.7 million oz (at a 70:1 silver:gold ratio)
• On track to meet high end of silver production and low end of gold production guidance for 2015
• Bullion inventory at quarter-end included 187,954 oz silver and 399 oz gold
• Concentrate inventory at quarter-end included 76,099 oz silver and 926 oz gold
• El Cubo mine expansion to 2,200 tpd completed on time and budget by the end of Q2, 2015
• El Cubo production below plan at mid-year but expected to meet guidance by year-end
• Guanaceví production above plan at mid-year and expected to beat guidance
• Bolañitos production on plan at mid-year and expected to meet guidance
• Terronera positive PEA published in May, PFS postponed until January 2016
• El Cubo wins first place, Bolañitos wins second place in first aid and benchman mine rescue competitions out of 14 teams; El Cubo and Guanaceví move on to Mexican national competition

Brad Cooke, CEO of Endeavour, commented:

Our strong operational and financial performance in the Second Quarter, notwithstanding lower metal prices, allowed us to add $9.5 million in net cash to the balance sheet. We are also on track to meet our production guidance and beat cash cost and AIS cost guidance for 2015.

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