Endeavour Silver released its financial and operating first-quarter results for the period ended March 31, 2019.
Endeavour Silver (TSX:EDR,NYSE:EXK) released its financial results for the period ended March 31, 2019. The company owns and operates four underground silver-gold mines in Mexico, the Guanaceví mine in Durango state, the Bolañitos and El Cubo mines in Guanajuato state and the recently commissioned El Compas mine in Zacatecas State. Endeavour is also advancing the Terronera project in Jalisco state to a development decision and completing a preliminary economic assessment to advance the Parral project in Chihuahua state.
Highlights are as follows:
- Net earnings decreased to a US$13.3 million loss (US$0.10 per share)
- Cash flow from operations before working capital changes decreased to US$2.1 million
- Mine operating cash flow before taxes decreased 66 percent to US$4.6 million
- Revenue decreased 28 percent to US$29.1 million
- Realized silver price decreased 7 percent to US$15.50 per ounce sold
- Realized gold price decreased 1 percent to US$1,315 per ounce sold
- Cash costs increased 93 percent to US$12.55 per ounce silver payable (net of gold credits)
- All-in sustaining costs increased 37 percent to US$19.37 per oz silver payable (net of gold credits)
- Cash and cash equivalents fell 35 percent to US$21.8 million
- Working capital fell to US$46.8 million compared to US$54.5 million at year end
- Silver production decreased 21 percent to 1,071,355 ounces
- Gold production decreased 24 percent to 10,055 ounces
- Silver equivalent production was 1.9 million ounces (at a 80:1 silver: gold ratio)
- Silver oz sold decreased 24 percent to 1,069,385 ounces
- Gold oz sold decreased 25 percent to 9,559 ounces
- Bullion inventory at quarter-end included 114,696 ounces silver and 288 ounces gold
- Concentrate inventory at quarter-end included 63,894 ounces silver and 1,698 ounces gold
Bradford Cooke, CEO, commented:
We experienced a challenging start to the year in operations, with no improvement of the systemic issues at Guanacevi and unexpected events such as the seven-week shut-down at El Compas due to a mill failure. However, Endeavour management has dealt with similar issues before, we successfully cut costs across the board to address similar operational and economic challenges in 2008 and 2013. The Company emerged financially stronger and more profitable as a result.
With El Compas now commercial, management is focused on Terronera, arranging debt financing and continuing to optimize the pre-feasibility study released last year, while we await receipt of the final government permit and board approval to commence construction. A preliminary economic assessment and mine permitting are both underway for the Parral project, which, although reduced, will be the Company’s largest exploration investment in 2019.