Endeavour Silver Reports Q1 Net Earnings of $1.4 Million

Endeavour Silver Corp. (TSX:EDR,NYSE:EXK) announced its financial results for the first quarter of 2015, noting that it recorded net earnings of $1.4 million, or $0.01 per share. That’s down from $4 million, or $0.04 per share, in the year-ago quarter, but better than results seen in Q4 2014.

Other highlights compared to Q1 2014 include:

Financial

• EBITDA decreased 15% to $16.4 million
• Cash flow from operations before working capital changes decreased 25% to $13.8 million
• Mine operating cash flow before taxes decreased 23% to $19.6 million
• Revenue decreased 4% to $51.1 million
• Realized silver price fell 17% to $17.11 per ounce (oz) sold (2% above average spot price)
• Realized gold price fell 7% to $1,221 per oz sold (consistent with average spot price)
• Cash costs rose 47% to $7.17 per oz silver payable (net of gold credits)
• All-in sustaining costs rose 10% to $13.32 per oz silver payable (net of gold credits)
• Working capital rose 22% to $25.8 million compared to $21.2 million at year end.
• Cash and cash equivalents of $26.3 million

Operations

• Silver production decreased 4% to 1,820,050 oz
• Gold production decreased 15% to 15,808 oz
• Silver equivalent production decreased 8% to 2.9 million oz (at a 70:1 silver:gold ratio)
• Silver oz sold up 21% to 1,861,975 oz
• Gold oz sold down 4% to 15,799 oz
• Bullion inventory at quarter-end included 349,277 oz silver and 1,073 oz gold
• Concentrate inventory at quarter-end included 65,677 oz silver and 933 oz gold

Bradford Cooke, CEO of Endeavour, commented:

We returned to positive earnings in Q1, 2015 thanks to improved operating cash flow and EBITDA driven by reduced cash operating costs and all-in sustaining costs compared to Q4, 2014. Each of our three mining operations performed better than plan in the first quarter to give us a good head start on the year.

With the mine expansion to 2,200 tonnes per day now well under way at El Cubo, cash costs assuming the current gold price should decline in Q2 and Q3, 2015. We recently commenced our 2015 exploration programs with six drills turning, so our all-in sustaining costs are scheduled to increase over the next two quarters. Management anticipates releasing shortly a preliminary economic assessment to build a high grade underground mine at our Terronera property in Jalisco state, Mexico, in the context of a pre-feasibility study to be completed later this year.

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