This news release has been amended to reflect the correct estimate
for the Company’s 2022 All-in Sustaining Cost estimate of $20- $21
per ounce in the 2022 Revision to Guidance Section. Complete
corrected text follows:
Endeavour Silver Corp. (“Endeavour” or
the “Company”) (NYSE: EXK; TSX: EDR) is
pleased to announce its financial and operating results for the
three and six months ended June 30, 2022. As a result of the
Company’s strong operating performance, Management has raised its
2022 production guidance. All dollar amounts are in US dollars
(US$).
“We have continued to outperform our mine plans,
by delivering an exceptional Q2 with production 15% above plan,
stated Dan Dickson, CEO of Endeavour Silver. “This has prompted
management to raise our production outlook for 2022 to 7.6 – 8.0
million silver equivalent ounces. The additional production has
allowed us to maintain our cost guidance on per ounce metrics, but
industry-wide inflation continues to be a challenge. We are seeing
the largest inflationary impacts on energy costs, plant reagents
and steel prices which are affecting both operating and development
costs. Cost control will continue to be a key focus as cost
pressures are expected to continue for the remainder of the
year.”
Added Mr. Dickson, “During the 2nd quarter,
again we made the decision to withhold from sale a meaningful
amount of silver, due to the drop in silver price. We are holding
over 1.6 million silver equivalent ounces in finished goods
inventory for future sale. Short term, the increased inventory has
negatively impacted our quarterly financial metrics such as
revenue, earnings, cash flow and our cash balance. Longer term, we
anticipate selling the inventory at higher metal prices.”
Q2 2022 Highlights
- Higher
Production: 1,359,207 ounces (oz) of silver and 9,289 oz
of gold for 2.1 million oz silver equivalent (AgEq)(1) reinforces
delivery of improved consolidated production for the year.
- Lower
Revenue Due to Withholding Metal Sales: Revenue of $30.8
million from the sale of 602,894 oz of silver and 9,792 oz of gold
at average realized prices of $22.72 per oz silver and $1,840 per
oz gold.
-
Negative Earnings and Lower Cash Flow Due to Lower Revenue
and Non-Cash Items: Net loss of $11.9 million, or $0.07
per share. Adjusted net loss of $4.3 million(2) after adjusting for
a $7.6 million change in the fair value of investments. $3.6
million in operating cash flow before working capital changes(2)
and Mine operating cash flow before taxes(2) of $8.8 million.
-
Operating Costs per Ounce In-Line with Guidance, Despite
Industry-Wide Inflation: Cash costs(2) of $10.08 per oz
payable silver and all-in sustaining costs(2) of $19.56 per oz
payable silver, net of gold credits.
- Healthy
Balance Sheet: Cash position of $116.2 million and working
capital(2) of $149.7 million.
-
Guanacevi Continued to Outperform: Production
exceeded plan driven by higher grades.
-
Bolañitos Remained Steady: Strong silver
production from higher silver grades and increased throughput were
offset by lower gold production and lower gold grades.
-
Withheld Significant Metal Inventories: Metal
inventory at quarter end totaled 1,399,356 oz silver and 2,580 oz
gold of bullion inventory and 12,408 oz silver and 587 oz gold in
concentrate inventory. The market value of finished goods at June
30, 2022 was $34.5 million.
-
Advancing the Terronera Project: Work continued on
the early works program initiated last year including engineering,
critical contracts, procurement of long-lead items and extensive
due diligence on the project financing. The Company intends to make
a formal construction decision subject to completion of a financing
package and receipt of additional amended permits in the coming
months. $18 million has been spent as of June 30th 2022, with an
additional budget of $23 million expected to be spent through to
the end of October to continue the advancement of the project.
Subsequent to Quarter End
- Closed
the Acquisition of the Pitarrilla Project: The addition of
the Pitarrilla project enhances the company’s growth profile while
maintaining a silver focus.
Revision to Full Year 2022
Guidance
The following table summarizes the updated 2022 Production
Guidance for Endeavour Silver:
|
|
Guanacevi |
Bolanitos |
Consolidated |
Tonnes per day |
tpd |
1,100 - 1,200 |
1,000 - 1,200 |
2,100 - 2,400 |
Silver production |
M oz |
4.3 – 4.5 |
0.6 - 0.6 |
4.9 – 5.1 |
Gold production |
k oz |
13.0 - 14.0 |
21.0 - 22.0 |
34.0 - 36.0 |
Silver Eq production1 |
US$/oz |
5.3 – 5.6 |
2.3 - 2.4 |
7.6 - 8.0 |
Cash costs, net of gold by-product credits2 |
US$/oz |
|
|
$9.00 - $10.00 |
AISC, net of gold by-product credits2 |
US$/oz |
|
|
$20.00 - $21.00 |
-
Consolidated Silver
Equivalent(1) Production
has increased to 7.6 – 8.0 million oz from 6.7 – 7.6 million oz.
The increase to consolidated production is primarily driven by
higher than planned ore-grades along the El Curso orebody at
Guanacevi. Production at Bolanitos has been slightly revised
upwards to meet the upper end of its previous guidance.
-
Operating Costs Guidance is expected to remain
unchanged with cash costs expected to average $9.00 - $10.00 per oz
and AISC are expected to average $20.00 - $21.00 per oz. Management
notes that the Company is tracking to meet the upper end of the
guidance range, given persisting global inflationary pressures.
Increases in prices of raw materials such as reagents, explosives,
steel, diesel and power are driving continued cost escalation
across the industry. The company has identified efficiencies to
mitigate pressure on costs and cost metrics in the second half of
the year, including enhanced monitoring and tracking at the mines,
improved blasting in development, the gradual increase of tonnes
milled and reduced waste handling at Guanacevi.
Financial Overview (see
appendix for consolidated financial statements)
Three Months Ended June 30 |
Q2 2022 Highlights |
Six Months Ended June 30 |
2022 |
|
2021 |
% Change |
2022 |
|
2021 |
|
% Change |
|
|
|
Production |
|
|
|
1,359,207 |
|
1,073,724 |
27% |
|
Silver ounces produced |
2,674,162 |
|
2,121,824 |
|
26% |
|
9,289 |
|
11,166 |
(17%) |
|
Gold ounces produced |
17,984 |
|
22,275 |
|
(19%) |
|
1,346,276 |
|
1,062,267 |
27% |
|
Payable silver ounces produced |
2,649,816 |
|
2,098,977 |
|
26% |
|
9,117 |
|
10,955 |
(17%) |
|
Payable gold ounces produced |
17,666 |
|
21,849 |
|
(19%) |
|
2,102,327 |
|
1,967,004 |
7% |
|
Silver equivalent ounces produced(1) |
4,112,882 |
|
3,903,824 |
|
5% |
|
10.08 |
|
13.03 |
(23%) |
|
Cash costs per silver ounce(2) |
10.14 |
|
10.48 |
|
(3%) |
|
14.26 |
|
19.55 |
(27%) |
|
Total production costs per ounce(2) |
14.69 |
|
17.51 |
|
(16%) |
|
19.56 |
|
25.39 |
(23%) |
|
All-in sustaining costs per ounce (2) |
20.22 |
|
22.69 |
|
(11%) |
|
201,361 |
|
242,018 |
(17%) |
|
Processed tonnes |
407,508 |
|
451,471 |
|
(10%) |
|
132.63 |
|
119.94 |
11% |
|
Direct operating costs per tonne(2) |
127.69 |
|
116.43 |
|
10% |
|
148.11 |
|
141.61 |
5% |
|
Direct costs per tonne(2) |
148.32 |
|
134.48 |
|
10% |
|
14.12 |
|
18.52 |
(24%) |
|
Silver co-product cash costs(2) |
14.74 |
|
16.89 |
|
(13%) |
|
1,144 |
|
1,289 |
(11%) |
|
Gold co-product cash costs(2) |
1,169 |
|
1,116 |
|
5% |
|
|
|
|
Financial |
|
|
|
30.8 |
|
47.7 |
(35%) |
|
Revenue ($ millions) |
88.5 |
|
82.2 |
|
8% |
|
602,894 |
|
1,120,266 |
(46%) |
|
Silver ounces sold |
2,320,662 |
|
1,743,645 |
|
33% |
|
9,792 |
|
9,810 |
(0%) |
|
Gold ounces sold |
18,173 |
|
20,473 |
|
(11%) |
|
22.72 |
|
26.82 |
(15%) |
|
Realized silver price per ounce |
23.95 |
|
26.95 |
|
(11%) |
|
1,840 |
|
1,866 |
(1%) |
|
Realized gold price per ounce |
1,900 |
|
1,781 |
|
7% |
|
(11.9) |
|
6.7 |
(279%) |
|
Net earnings (loss) ($ millions) |
(0.3) |
|
18.9 |
|
(101%) |
|
(4.3) |
|
2.4 |
(280%) |
|
Adjusted net earnings (loss) (2) ($ millions) |
2.0 |
|
(3.7) |
|
155% |
|
4.5 |
|
10.2 |
56% |
|
Mine operating earnings ($ millions) |
24.7 |
|
15.9 |
|
56% |
|
8.8 |
|
17.2 |
(49%) |
|
Mine operating cash flow before taxes ($ millions)(2) |
35.5 |
|
30.5 |
|
16% |
|
3.6 |
|
8.7 |
(58%) |
|
Operating cash flow before working capital changes(2) |
24.2 |
|
13.9 |
|
74% |
|
(4.3) |
|
15.9 |
(127%) |
|
EBITDA(2) ($ millions) |
21.3 |
|
39.8 |
|
(47%) |
|
149.7 |
|
146.8 |
2% |
|
Working capital (2) ($ millions) |
149.7 |
|
146.8 |
|
2% |
|
|
|
|
Shareholders |
|
|
|
(0.07) |
|
0.04 |
(275%) |
|
Earnings (loss) per share – basic ($) |
0.00 |
|
0.12 |
|
(100%) |
|
0.02 |
|
0.05 |
(61%) |
|
Operating cash flow before working capital changes per
share(2) |
0.14 |
|
0.08 |
|
62% |
|
180,974,609 |
|
168,383,755 |
7% |
|
Weighted average shares outstanding |
176,291,929 |
|
164,051,368 |
|
7% |
|
(1) Silver equivalent (AgEq) is calculated using an 80:1
silver:gold ratio.
(2) These are non-IFRS financial measures and
ratios. Further details on these non-IFRS financial measures and
ratios are provided at the end of this press release and in the
MD&A accompanying the Company’s financial statements, which can
be viewed on the Company’s website, on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov.
For the three months ended June 30, 2022, net
revenue, decreased by 35% to $30.8 million (Q2 2021: $47.7
million).
Gross sales of $31.7 million in Q2 2022
represented a 34% decrease over the $48.3 million in Q2 2021.
Silver oz sold decreased by 46%, due to the buildup of the larger
finished goods inventory held at June 30, 2022. There was a 15%
decrease in the realized silver price, resulting in a 54% decrease
in proceeds from silver sales. Gold oz sold were flat with a 1%
decrease in the realized gold price, resulting in a 1% decrease in
proceeds from gold sales. During the period, the Company sold
602,894 oz silver and 9,792 oz gold for realized prices of $22.72
and $1,840 per oz, respectively, compared to Q2 2021 sales of
1,120,266 oz silver and 9,810 oz gold for realized prices of $26.82
and $1,866 per oz, respectively. In Q2 2022, London spot prices for
silver and gold averaged $22.60 and $1,877, respectively.
The Company significantly increased its finished
goods silver inventory and slightly decreased its finished goods
gold inventory to 1,411,764 oz and 3,167 oz, respectively, at June
30, 2022 compared to 668,382 oz silver and 3,841 oz gold at March
31, 2022. The cost allocated to these finished goods was
$20.8 million at June 30, 2022 compared to $13.5 million at
March 31, 2022. At June 30, 2022, the finished goods inventory fair
market value was $34.5 million, compared to $24.1 million at March
31, 2022. Earnings and other financial metrics, including mine
operating cash flow(2), operating cash flow(2) and EBITDA(2) were
impacted by the withholding of sales during Q2 2022.
After cost of sales of $26.3 million (Q2 2021 -
$37.5 million), a decrease of 30%, mine operating earnings were
$4.5 million (Q2 2021 - $10.2 million). The decrease in cost of
sales was impacted by the decrease in the quantity of silver ounces
sold during the period offset by increased labour, power and
consumables costs with lower royalty costs. Royalties decreased 49%
to $2.2 million primarily due to the decrease in silver ounces sold
during the period.
The Company had an operating loss of $1.3
million (Q2 2021: operating earnings of $0.8 million) after
exploration and evaluation costs of $3.8 million (Q2 2021: $5.0
million), general and administrative costs of $1.3 million (Q2
2021: $4.3 million) a write off of exploration properties of $0.5
million (Q2, 2021 - $Nil), and care and maintenance cost of $0.2
million (Q2 2021: $0.1 million).
The loss before income taxes was $8.8 million
(Q2 2021: earnings before taxes of $8.9 million) after finance
costs of $0.3 million (Q2 2021: $0.2 million), a foreign exchange
loss of $0.3 million (Q2 2021: gain of $0.7 million), and
investment and other expense of $6.9 million (Q2 2021: investment
and other income of $1.8 million). The investment and other
expenses during Q2 2022 primarily resulted from an unrealized loss
on marketable securities and warrants of $7.6 million (Q2 2021:
$1.5 million).
The Company realized a net loss for the period
of $11.9 million (Q2 2021: net earnings of $6.7 million) after an
income tax expense of $3.1 million (Q2 2021: $2.2
million). Current income tax expense increased to $1.3
million (Q2 2021 - $1.1 million) due to increased profitability
impacting the income tax and special mining duty, while deferred
income tax expense of $1.8 million is primarily due to the
estimated use of loss carryforwards to reduce taxable income
generated at both Guanacevi and Bolanitos (Q2 2021 – $1.1
million).
Direct operating costs(2) on a per tonne basis
increased to $132.63, up 11% compared with Q2 2021 due to higher
operating costs at Guanaceví and Bolañitos. Guanaceví and Bolañitos
have seen increased labour, power and consumables costs and at
Guanaceví, increased third party ore purchased and operating
development have increased compared to the prior year.
Consolidated cash costs per oz(2), net of
by-product credits, decreased to $10.08 driven by increased silver
grades, reduced royalty costs and increased by-product gold sales,
offset by increased direct operating costs per tonne(2)
AISC(2) decreased by 23% on a per oz basis compared to
Q2 2021 as a result of a 27% increase in ounces produced driven by
a 51% increase in silver grade, decreased allocated general and
administrative costs and a decrease in mine site exploration offset
by increased sustaining capital expenditures.
The complete financial statements and
management’s discussion & analysis can be viewed on the
Company’s website, on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov. All shareholders can receive a hard copy of the
Company’s complete audited financial statements free of charge upon
request. To receive this material in hard copy, please contact
Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or
by email at gmeleger@edrsilver.com.
Conference Call
A conference call to discuss the Company’s Q2
2022 financial results will be held today at 10:00 a.m. PT / 1:00
p.m. ET. To participate in the conference call, please dial the
numbers below.
Date & Time: |
|
Tuesday,
August 9, 2022 at 10:00 a.m. PT / 1:00 p.m. ET |
|
|
|
Telephone: |
|
Toll-free in Canada and the US +1-800-319-4610Local or
International +1-604-638-5340Please allow up to 10 minutes to be
connected to the conference call. |
|
|
|
Replay: |
|
A replay of the conference call will be available by dialing
(toll-free) +1-800-319-6413 in Canada and the US (toll-free)
or +1-604-638-9010 outside of Canada and the US. The replay
passcode is 9151#. The replay will also be available on the
Company’s website at www.edrsilver.com. |
About Endeavour Silver –
Endeavour Silver Corp. is a mid-tier precious metals mining company
that operates two high-grade underground silver-gold mines in
Mexico. Endeavour is currently advancing the Terronera project
towards a development decision, pending financing and final permits
and exploring its portfolio of exploration and development projects
in Mexico, Chile and the United States to facilitate its goal to
become a premier senior silver producer. Our philosophy of
corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp. Contact
InformationGalina Meleger, Vice President of Investor
Relations Tel: (604)640-4804Email: gmeleger@edrsilver.com Website:
www.edrsilver.com
Follow Endeavour Silver on Facebook, Twitter,
Instagram and LinkedIn
Endnotes
1 Silver equivalent (AgEq)
AgEq is calculated using an 80:1 silver:gold ratio.
2 Non-IFRS and
Other Financial Measures
and Ratios
Certain non-IFRS and other non-financial
measures and ratios are included in this press release, including
cash costs per silver ounce, total production costs per ounce,
all-in costs per ounce, all-in sustaining cost (“AISC”) per ounce,
direct operating costs per tonne, direct costs per tonne, silver
co-product cash costs, gold co-product cash costs, realized silver
price per ounce, realized gold price per ounce, adjusted net
earnings (loss) adjusted net earnings (loss) per share, mine
operating cash flow before taxes, working capital, operating cash
flow before working capital adjustments, operating cash flow before
working capital changes per share, earnings before interest, taxes,
depreciation and amortization (“EBITDA”), adjusted EBITDA per share
and sustaining and growth capital.
Please see the June 30, 2022 MD&A for
explanations and discussion of these non-IFRS and other
non-financial measures and ratios. The Company believes that these
measures and ratios, in addition to conventional measures and
ratios prepared in accordance with International Financial
Reporting Standards (“IFRS”), provide management and investors an
improved ability to evaluate the underlying performance of the
Company. The non-IFRS and other non-financial measures and ratios
are intended to provide additional information and should not be
considered in isolation or as a substitute for measures or ratios
of performance prepared in accordance with IFRS. These measures and
ratios do not have any standardized meaning prescribed under IFRS,
and therefore may not be comparable to other issuers. Certain
additional disclosures for these non-IFRS measures have been
incorporated by reference and can be found in the section “Non-IFRS
Measures” in the June 30, 2022 MD&A available on SEDAR at
www.sedar.com.
Reconciliation of Working Capital
Expressed in thousands US dollars |
As at June 30, 2022 |
As at December 31, 2021 |
|
|
|
|
|
Current assets |
|
$ |
186,454 |
|
|
$ |
161,762 |
|
Current liabilities |
|
|
36,733 |
|
|
|
40,554 |
|
Working capital |
|
$ |
149,721 |
|
|
$ |
121,208 |
|
|
|
|
|
|
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net
Earnings (Loss) Per Share |
|
|
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
(except for share numbers and per share amounts) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net earnings (loss) for the period per financial statements |
($ |
11,923 |
) |
$ |
6,656 |
|
($ |
261 |
) |
$ |
18,905 |
|
Impairment (reversal) of non-current assets, net of tax |
|
- |
|
|
- |
|
|
- |
|
|
(16,791 |
) |
Gain on disposal of El Cubo mine and equipment, net of tax |
|
- |
|
|
(5,807 |
) |
|
- |
|
|
(5,807 |
) |
Change in fair value of investments |
|
7,626 |
|
|
1,539 |
|
|
2,269 |
|
|
9 |
|
Adjusted net earnings (loss) |
($ |
4,297 |
) |
$ |
2,388 |
|
$ |
2,008 |
|
($ |
3,684 |
) |
Basic weighted average share outstanding |
|
180,974,609 |
|
|
168,383,755 |
|
|
176,291,929 |
|
|
164,051,368 |
|
Adjusted net earnings (loss) per share |
($ |
0.02 |
) |
$ |
0.01 |
|
$ |
0.01 |
|
($ |
0.02 |
) |
|
|
|
|
|
Reconciliation of Mine Operating Cash Flow Before Taxes |
|
|
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Mine operating earnings per financial statements |
$ |
4,472 |
|
$ |
10,205 |
|
$ |
24,741 |
|
$ |
15,869 |
|
Share-based compensation |
|
113 |
|
|
111 |
|
|
240 |
|
|
229 |
|
Amortization and depletion |
|
4,175 |
|
|
6,624 |
|
|
10,481 |
|
|
14,120 |
|
Write down of inventory to net realizable value |
|
- |
|
|
272 |
|
|
- |
|
|
272 |
|
Mine operating cash flow before taxes |
$ |
8,760 |
|
$ |
17,212 |
|
$ |
35,462 |
|
$ |
30,490 |
|
|
|
|
|
|
Reconciliation of Operating Cash Flow Before Working Capital
Changes and Operating Cash Flow Before Working Capital Changes Per
Share |
|
|
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
(except for per share amounts) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Cash from (used in) operating activities per financial
statements |
($ |
18,548 |
) |
$ |
9,467 |
|
$ |
3,185 |
|
$ |
5,544 |
|
Net changes in non-cash working capital per financial
statements |
|
(22,160 |
) |
|
806 |
|
|
(21,046 |
) |
|
(8,360 |
) |
Operating cash flow before working capital changes |
$ |
3,612 |
|
$ |
8,661 |
|
$ |
24,231 |
|
$ |
13,904 |
|
Basic weighted average shares outstanding |
|
180,974,609 |
|
|
168,383,755 |
|
|
176,291,929 |
|
|
164,051,368 |
|
Operating cash flow before working capital changes per share |
$ |
0.02 |
|
$ |
0.05 |
|
$ |
0.14 |
|
$ |
0.08 |
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted
EBITDA |
|
|
|
|
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income for the period per financial statements |
($ |
11,923 |
) |
$ |
6,656 |
|
($ |
261 |
) |
$ |
18,905 |
|
Depreciation and depletion – cost of sales |
|
4,175 |
|
|
6,624 |
|
|
10,481 |
|
|
14,120 |
|
Depreciation and depletion – exploration |
|
98 |
|
|
72 |
|
|
205 |
|
|
151 |
|
Depreciation and depletion – general & administration |
|
51 |
|
|
38 |
|
|
99 |
|
|
72 |
|
Depreciation and depletion – care & maintenance |
|
30 |
|
|
(11 |
) |
|
60 |
|
|
4 |
|
Depreciation and depletion – inventory write down |
|
- |
|
|
6 |
|
|
- |
|
|
6 |
|
Finance costs |
|
212 |
|
|
216 |
|
|
389 |
|
|
507 |
|
Current income tax expense |
|
1,325 |
|
|
1,146 |
|
|
2,340 |
|
|
1,817 |
|
Deferred income tax expense |
|
1,752 |
|
|
1,116 |
|
|
7,974 |
|
|
4,243 |
|
EBITDA |
($ |
4,280 |
) |
$ |
15,863 |
|
$ |
21,287 |
|
$ |
39,825 |
|
Share based compensation |
|
972 |
|
|
1,028 |
|
|
2,499 |
|
|
2,193 |
|
Impairment (reversal) of non-current assets, net of tax |
|
- |
|
|
- |
|
|
- |
|
|
(16,791 |
) |
Gain on disposal of El Cubo mine and equipment, net of tax |
|
- |
|
|
(5,807 |
) |
|
- |
|
|
(5,807 |
) |
Change in fair value of investments |
|
7,626 |
|
|
1,539 |
|
|
2,269 |
|
|
9 |
|
Adjusted EBITDA |
$ |
4,318 |
|
$ |
12,623 |
|
$ |
26,055 |
|
$ |
19,429 |
|
Basic weighted average shares outstanding |
|
180,974,609 |
|
|
168,383,755 |
|
|
176,291,929 |
|
|
164,051,368 |
|
Adjusted EBITDA per share |
$ |
0.02 |
|
$ |
0.07 |
|
$ |
0.15 |
|
$ |
0.12 |
|
Reconciliation of Cash Cost Per Silver Ounce, Total
Production Costs Per Ounce, Direct Operating Costs Per Tonne,
Direct Costs Per Tonne
Expressed in thousands US dollars |
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Direct production costs per financial statements |
$ |
7,797 |
|
$ |
12,031 |
|
$ |
19,828 |
|
$ |
15,713 |
|
$ |
7,770 |
|
$ |
2,740 |
|
$ |
26,223 |
|
Smelting and refining costs included in net revenue |
|
- |
|
|
937 |
|
|
937 |
|
|
- |
|
|
514 |
|
|
68 |
|
|
582 |
|
Opening finished goods |
|
(7,908 |
) |
|
(2,995 |
) |
|
(10,903 |
) |
|
(5,935 |
) |
|
(204 |
) |
|
(442 |
) |
|
(6,581 |
) |
Finished goods NRV adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
266 |
|
|
266 |
|
Closing finished goods |
|
16,164 |
|
|
681 |
|
|
16,845 |
|
|
6,985 |
|
|
408 |
|
|
1,145 |
|
|
8,538 |
|
Direct operating costs |
|
16,053 |
|
|
10,654 |
|
|
26,707 |
|
|
16,763 |
|
|
8,488 |
|
|
3,777 |
|
|
29,028 |
|
Royalties |
|
2,128 |
|
|
66 |
|
|
2,194 |
|
|
4,158 |
|
|
70 |
|
|
112 |
|
|
4,340 |
|
Special mining duty (1) |
|
795 |
|
|
127 |
|
|
922 |
|
|
684 |
|
|
257 |
|
|
(38 |
) |
|
903 |
|
Direct costs |
|
18,976 |
|
|
10,847 |
|
|
29,823 |
|
|
21,605 |
|
|
8,815 |
|
|
3,851 |
|
|
34,271 |
|
By-product gold sales |
|
(5,719 |
) |
|
(12,302 |
) |
|
(18,021 |
) |
|
(4,209 |
) |
|
(11,909 |
) |
|
(2,187 |
) |
|
(18,305 |
) |
Opening gold inventory fair market value |
|
3,724 |
|
|
3,763 |
|
|
7,487 |
|
|
1,925 |
|
|
309 |
|
|
662 |
|
|
2,896 |
|
Closing gold inventory fair market value |
|
(4,662 |
) |
|
(1,061 |
) |
|
(5,723 |
) |
|
(3,349 |
) |
|
(633 |
) |
|
(1,038 |
) |
|
(5,020 |
) |
Cash costs net of by-product |
|
12,319 |
|
|
1,247 |
|
|
13,566 |
|
|
15,972 |
|
|
(3,418 |
) |
|
1,288 |
|
|
13,842 |
|
Amortization and depletion |
|
940 |
|
|
3,235 |
|
|
4,175 |
|
|
2,487 |
|
|
3,800 |
|
|
337 |
|
|
6,624 |
|
Share-based compensation |
|
57 |
|
|
56 |
|
|
113 |
|
|
54 |
|
|
51 |
|
|
6 |
|
|
111 |
|
Opening finished goods depreciation and depletion |
|
(1,689 |
) |
|
(897 |
) |
|
(2,586 |
) |
|
(1,137 |
) |
|
(118 |
) |
|
(133 |
) |
|
(1,388 |
) |
NRV depreciation cost adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6 |
|
|
- |
|
Closing finished goods depreciation and depletion |
|
3,733 |
|
|
199 |
|
|
3,932 |
|
|
1,333 |
|
|
220 |
|
|
30 |
|
|
1,583 |
|
Total production costs |
$ |
15,360 |
|
$ |
3,840 |
|
$ |
19,200 |
|
$ |
18,709 |
|
$ |
535 |
|
$ |
1,534 |
|
$ |
20,772 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Throughput tonnes |
|
94,017 |
|
|
107,344 |
|
|
201,361 |
|
|
111,893 |
|
|
107,912 |
|
|
22,213 |
|
|
242,018 |
|
Payable silver ounces |
|
1,190,568 |
|
|
155,708 |
|
|
1,346,276 |
|
|
936,424 |
|
|
112,456 |
|
|
13,387 |
|
|
1,062,267 |
|
|
|
|
|
|
|
|
|
Cash costs per silver ounce |
$ |
10.35 |
|
$ |
8.01 |
|
$ |
10.08 |
|
$ |
17.06 |
|
($ |
30.39 |
) |
$ |
96.21 |
|
$ |
13.03 |
|
Total production costs per ounce |
$ |
12.90 |
|
$ |
24.66 |
|
$ |
14.26 |
|
$ |
19.98 |
|
$ |
4.76 |
|
$ |
114.59 |
|
$ |
19.55 |
|
Direct operating costs per tonne |
$ |
170.75 |
|
$ |
99.25 |
|
$ |
132.63 |
|
$ |
149.81 |
|
$ |
78.66 |
|
$ |
170.04 |
|
$ |
119.94 |
|
Direct costs per tonne |
$ |
201.84 |
|
$ |
101.05 |
|
$ |
148.11 |
|
$ |
193.09 |
|
$ |
81.69 |
|
$ |
173.37 |
|
$ |
141.61 |
|
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
Six Months Ended June 30, 2022 |
Six Months Ended June 30, 2021 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Direct production costs per financial statements |
$ |
25,681 |
|
$ |
20,868 |
|
$ |
46,549 |
|
$ |
23,773 |
|
$ |
14,875 |
|
$ |
6,303 |
|
$ |
44,951 |
|
Smelting and refining costs included in net revenue |
|
- |
|
|
1,591 |
|
|
1,591 |
|
|
- |
|
|
1,003 |
|
|
206 |
|
|
1,209 |
|
Opening finished goods |
|
(10,093 |
) |
|
(2,857 |
) |
|
(12,950 |
) |
|
(1,509 |
) |
|
(250 |
) |
|
(642 |
) |
|
(2,401 |
) |
Finished goods NRV adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
266 |
|
|
266 |
|
Closing finished goods |
|
16,164 |
|
|
681 |
|
|
16,845 |
|
|
6,985 |
|
|
408 |
|
|
1,145 |
|
|
8,538 |
|
Direct operating costs |
|
31,752 |
|
|
20,283 |
|
|
52,035 |
|
|
29,249 |
|
|
16,036 |
|
|
7,278 |
|
|
52,563 |
|
Royalties |
|
6,362 |
|
|
149 |
|
|
6,511 |
|
|
6,371 |
|
|
138 |
|
|
291 |
|
|
6,800 |
|
Special mining duty (1) |
|
1,526 |
|
|
371 |
|
|
1,897 |
|
|
941 |
|
|
408 |
|
|
- |
|
|
1,349 |
|
Direct costs |
|
39,640 |
|
|
20,803 |
|
|
60,443 |
|
|
36,561 |
|
|
16,582 |
|
|
7,569 |
|
|
60,712 |
|
By-product gold sales |
|
(10,741 |
) |
|
(23,790 |
) |
|
(34,531 |
) |
|
(7,673 |
) |
|
(22,438 |
) |
|
(6,352 |
) |
|
(36,463 |
) |
Opening gold inventory fair market value |
|
1,900 |
|
|
4,784 |
|
|
6,684 |
|
|
735 |
|
|
746 |
|
|
1,283 |
|
|
2,764 |
|
Closing gold inventory fair market value |
|
(4,662 |
) |
|
(1,061 |
) |
|
(5,723 |
) |
|
(3,349 |
) |
|
(633 |
) |
|
(1,038 |
) |
|
(5,020 |
) |
Cash costs net of by-product |
|
26,137 |
|
|
736 |
|
|
26,873 |
|
|
26,274 |
|
|
(5,743 |
) |
|
1,462 |
|
|
21,993 |
|
Amortization and depletion |
|
4,850 |
|
|
5,631 |
|
|
10,481 |
|
|
4,080 |
|
|
7,593 |
|
|
2,447 |
|
|
14,120 |
|
Share-based compensation |
|
120 |
|
|
120 |
|
|
240 |
|
|
93 |
|
|
91 |
|
|
45 |
|
|
229 |
|
Opening finished goods depreciation and depletion |
|
(1,965 |
) |
|
(635 |
) |
|
(2,600 |
) |
|
(271 |
) |
|
(104 |
) |
|
(804 |
) |
|
(1,179 |
) |
NRV depreciation and depletion cost adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6 |
|
|
6 |
|
Closing finished goods depreciation and depletion |
|
3,733 |
|
|
199 |
|
|
3,932 |
|
|
1,333 |
|
|
220 |
|
|
30 |
|
|
1,583 |
|
Total production costs |
$ |
32,875 |
|
$ |
6,051 |
|
$ |
38,926 |
|
$ |
31,509 |
|
$ |
2,057 |
|
$ |
3,186 |
|
$ |
36,752 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022 |
Six Months Ended June 30, 2021 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Throughput tonnes |
|
195,270 |
|
|
212,238 |
|
|
407,508 |
|
|
200,525 |
|
|
205,604 |
|
|
45,342 |
|
|
451,471 |
|
Payable silver ounces |
|
2,321,016 |
|
|
328,800 |
|
|
2,649,816 |
|
|
1,851,886 |
|
|
211,444 |
|
|
35,647 |
|
|
2,098,977 |
|
|
|
|
|
|
|
|
|
Cash costs per silver ounce |
$ |
11.26 |
|
$ |
2.24 |
|
$ |
10.14 |
|
$ |
14.19 |
|
($ |
27.16 |
) |
$ |
41.01 |
|
$ |
10.48 |
|
Total production costs per ounce |
$ |
14.16 |
|
$ |
18.40 |
|
$ |
14.69 |
|
$ |
17.01 |
|
$ |
9.73 |
|
$ |
89.38 |
|
$ |
17.51 |
|
Direct operating costs per tonne |
$ |
162.61 |
|
$ |
95.57 |
|
$ |
127.69 |
|
$ |
145.86 |
|
$ |
77.99 |
|
$ |
160.51 |
|
$ |
116.43 |
|
Direct costs per tonne |
$ |
203.00 |
|
$ |
98.02 |
|
$ |
148.32 |
|
$ |
182.33 |
|
$ |
80.65 |
|
$ |
166.93 |
|
$ |
134.48 |
|
Expressed in thousands US dollars |
June 30, 2022 |
June 30, 2021 |
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Closing finished goods |
|
16,164 |
|
681 |
|
16,845 |
|
6,985 |
|
408 |
|
1,145 |
|
8,538 |
Closing finished goods depletion |
|
3,733 |
|
199 |
|
3,932 |
|
1,333 |
|
220 |
|
30 |
|
1,583 |
Finished goods inventory |
$ |
19,897 |
$ |
880 |
$ |
20,777 |
$ |
8,318 |
$ |
628 |
$ |
1,175 |
$ |
10,121 |
Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars |
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Cash costs net of by-product |
$ |
12,319 |
|
$ |
1,247 |
$ |
13,566 |
|
$ |
15,972 |
($ |
3,418 |
) |
$ |
1,288 |
|
$ |
13,842 |
Operations share-based compensation |
|
57 |
|
|
56 |
|
113 |
|
|
39 |
|
40 |
|
|
39 |
|
|
118 |
Corporate general and administrative |
|
401 |
|
|
155 |
|
556 |
|
|
2,013 |
|
1,093 |
|
|
277 |
|
|
3,383 |
Corporate share-based compensation |
|
527 |
|
|
214 |
|
741 |
|
|
460 |
|
250 |
|
|
64 |
|
|
773 |
Reclamation - amortization/accretion |
|
69 |
|
|
53 |
|
122 |
|
|
13 |
|
11 |
|
|
3 |
|
|
27 |
Mine site expensed exploration |
|
360 |
|
|
308 |
|
668 |
|
|
538 |
|
305 |
|
|
2 |
|
|
845 |
Intangible payments |
|
(0 |
) |
|
0 |
|
(0 |
) |
|
80 |
|
29 |
|
|
(16 |
) |
|
94 |
Equipment loan payments |
|
246 |
|
|
488 |
|
734 |
|
|
300 |
|
524 |
|
|
- |
|
|
824 |
Capital expenditures sustaining |
|
7,050 |
|
|
2,788 |
|
9,838 |
|
|
3,696 |
|
3,366 |
|
|
- |
|
|
7,062 |
All-In-Sustaining Costs |
$ |
21,028 |
|
$ |
5,310 |
$ |
26,338 |
|
$ |
23,112 |
$ |
2,200 |
|
$ |
1,656 |
|
$ |
26,968 |
Growth exploration and evaluation |
|
|
|
2,901 |
|
|
|
|
|
3,963 |
Growth capital expenditures |
|
|
|
5,613 |
|
|
|
|
|
1,102 |
All-In-Costs |
|
|
$ |
34,852 |
|
|
|
|
$ |
32,033 |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Throughput tonnes |
|
94,017 |
|
|
107,344 |
|
201,361 |
|
|
111,893 |
|
107,912 |
|
|
22,213 |
|
|
242,018 |
Payable silver ounces |
|
1,190,568 |
|
|
155,708 |
|
1,346,276 |
|
|
936,424 |
|
112,456 |
|
|
13,387 |
|
|
1,062,267 |
Silver equivalent production (ounces) |
|
1,488,550 |
|
|
613,777 |
|
2,102,327 |
|
|
1,185,961 |
|
660,284 |
|
|
120,759 |
|
|
1,967,004 |
|
|
|
|
|
|
|
|
Sustaining cost per ounce |
$ |
17.66 |
|
$ |
34.10 |
$ |
19.56 |
|
$ |
24.68 |
$ |
19.56 |
|
$ |
123.73 |
|
$ |
25.39 |
All-In-costs per ounce |
|
|
$ |
25.89 |
|
|
|
|
$ |
30.16 |
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
Six Months Ended June 30, 2022 |
Six Months Ended June 30, 2021 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Cash costs net of by-product |
$ |
26,137 |
|
$ |
736 |
$ |
26,873 |
|
$ |
26,274 |
($ |
5,743 |
) |
$ |
1,462 |
|
$ |
21,993 |
Operations share-based compensation |
|
120 |
|
|
120 |
|
240 |
|
|
93 |
|
91 |
|
|
45 |
|
|
229 |
Corporate general and administrative |
|
2,468 |
|
|
1,031 |
|
3,499 |
|
|
3,622 |
|
1,966 |
|
|
498 |
|
|
6,086 |
Corporate share-based compensation |
|
1,444 |
|
|
603 |
|
2,047 |
|
|
987 |
|
536 |
|
|
136 |
|
|
1,658 |
Reclamation - amortization/accretion |
|
134 |
|
|
106 |
|
240 |
|
|
25 |
|
22 |
|
|
5 |
|
|
52 |
Mine site expensed exploration |
|
712 |
|
|
558 |
|
1,270 |
|
|
994 |
|
539 |
|
|
195 |
|
|
1,728 |
Intangible payments |
|
29 |
|
|
12 |
|
41 |
|
|
111 |
|
60 |
|
|
15 |
|
|
187 |
Equipment loan payments |
|
491 |
|
|
977 |
|
1,468 |
|
|
608 |
|
1,092 |
|
|
- |
|
|
1,700 |
Capital expenditures sustaining |
|
12,696 |
|
|
5,214 |
|
17,910 |
|
|
7,900 |
|
6,100 |
|
|
- |
|
|
14,000 |
All-In-Sustaining Costs |
$ |
44,230 |
|
$ |
9,358 |
$ |
53,588 |
|
$ |
40,615 |
$ |
4,663 |
|
$ |
2,355 |
|
$ |
47,633 |
Growth exploration and evaluation |
|
|
|
5,314 |
|
|
|
|
|
6,970 |
Growth capital expenditures |
|
|
|
10,538 |
|
|
|
|
|
1,434 |
All-In-Costs |
|
|
$ |
69,440 |
|
|
|
|
$ |
56,037 |
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022 |
Six Months Ended June 30, 2021 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Throughput tonnes |
|
195,270 |
|
|
212,238 |
|
407,508 |
|
|
200,525 |
|
205,604 |
|
|
45,342 |
|
|
451,471 |
Payable silver ounces |
|
2,321,016 |
|
|
328,800 |
|
2,649,816 |
|
|
1,851,886 |
|
211,444 |
|
|
35,647 |
|
|
2,098,977 |
Silver equivalent production (ounces) |
|
2,900,560 |
|
|
1,212,322 |
|
4,112,882 |
|
|
2,323,618 |
|
1,261,071 |
|
|
319,135 |
|
|
3,903,824 |
|
|
|
|
|
|
|
|
Sustaining cost per ounce |
$ |
19.06 |
|
$ |
28.46 |
$ |
20.22 |
|
$ |
21.93 |
$ |
22.05 |
|
$ |
66.07 |
|
$ |
22.69 |
All-In-costs per ounce |
|
|
$ |
26.21 |
|
|
|
|
$ |
26.70 |
Reconciliation of Sustaining Capital and Growth
Capital
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Capital expenditures sustaining |
$ |
9,838 |
$ |
7,062 |
$ |
17,910 |
$ |
14,000 |
Growth capital expenditures |
|
5,613 |
|
1,102 |
|
10,538 |
|
1,434 |
Property, plant and equipment expenditures per Consolidated
Statement of Cash Flows |
$ |
15,451 |
$ |
8,164 |
$ |
28,448 |
$ |
15,434 |
Reconciliation of Silver Co-Product Cash Costs and Gold
Co-Product Cash Costs
Expressed in thousands US dollars |
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Direct production costs per financial statements |
$ |
7,797 |
|
$ |
12,031 |
|
$ |
19,828 |
|
$ |
15,713 |
|
$ |
7,770 |
|
$ |
2,740 |
|
$ |
26,223 |
|
Smelting and refining costs included in net revenue |
|
- |
|
|
937 |
|
|
937 |
|
|
- |
|
|
514 |
|
|
68 |
|
|
582 |
|
Royalties |
|
2,128 |
|
|
66 |
|
|
2,194 |
|
|
4,158 |
|
|
70 |
|
|
112 |
|
|
4,340 |
|
Special mining duty (1) |
|
795 |
|
|
127 |
|
|
922 |
|
|
684 |
|
|
257 |
|
|
(38 |
) |
|
903 |
|
Opening finished goods |
|
(7,908 |
) |
|
(2,995 |
) |
|
(10,903 |
) |
|
(5,935 |
) |
|
(204 |
) |
|
(442 |
) |
|
(6,581 |
) |
Finished goods NRV adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
266 |
|
|
266 |
|
Closing finished goods |
|
16,164 |
|
|
681 |
|
|
16,845 |
|
|
6,985 |
|
|
408 |
|
|
1,145 |
|
|
8,538 |
|
Direct costs |
$ |
18,976 |
|
$ |
10,847 |
|
$ |
29,823 |
|
$ |
21,605 |
|
$ |
8,815 |
|
$ |
3,851 |
|
$ |
34,271 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Silver production (ounces) |
|
1,194,150 |
|
|
165,057 |
|
|
1,359,207 |
|
|
939,241 |
|
|
120,044 |
|
|
14,439 |
|
|
1,073,724 |
|
Average realized silver price ($) |
|
22.72 |
|
|
22.72 |
|
|
22.72 |
|
|
26.82 |
|
|
26.82 |
|
|
26.82 |
|
|
26.82 |
|
Silver value ($) |
|
27,131,580 |
|
|
3,750,163 |
|
|
30,881,743 |
|
|
25,186,472 |
|
|
3,219,073 |
|
|
387,193 |
|
|
28,792,738 |
|
|
|
|
|
|
|
|
|
Gold production (ounces) |
|
3,680 |
|
|
5,609 |
|
|
9,289 |
|
|
3,084 |
|
|
6,753 |
|
|
1,329 |
|
|
11,166 |
|
Average realized gold price ($) |
|
1,840 |
|
|
1,840 |
|
|
1,840 |
|
|
1,866 |
|
|
1,866 |
|
|
1,866 |
|
|
1,866 |
|
Gold value ($) |
|
6,772,598 |
|
|
10,322,691 |
|
|
17,095,289 |
|
|
5,754,599 |
|
|
12,600,781 |
|
|
2,479,852 |
|
|
20,835,232 |
|
|
|
|
|
|
|
|
|
Total metal value ($) |
|
33,904,178 |
|
|
14,072,854 |
|
|
47,977,032 |
|
|
30,941,072 |
|
|
15,819,854 |
|
|
2,867,045 |
|
|
49,627,970 |
|
Pro-rated silver costs (%) |
|
80 |
% |
|
27 |
% |
|
64 |
% |
|
81 |
% |
|
20 |
% |
|
14 |
% |
|
58 |
% |
Pro-rated gold costs (%) |
|
20 |
% |
|
73 |
% |
|
36 |
% |
|
19 |
% |
|
80 |
% |
|
86 |
% |
|
42 |
% |
|
|
|
|
|
|
|
|
Pro-rated silver costs ($) |
|
15,185 |
|
|
2,891 |
|
|
19,196 |
|
|
17,587 |
|
|
1,794 |
|
|
520 |
|
|
19,883 |
|
Pro-rated gold costs ($) |
|
3,791 |
|
|
7,956 |
|
|
10,627 |
|
|
4,018 |
|
|
7,021 |
|
|
3,331 |
|
|
14,388 |
|
|
|
|
|
|
|
|
|
Silver co-product cash costs ($) |
|
12.72 |
|
|
17.51 |
|
|
14.12 |
|
|
18.72 |
|
|
14.94 |
|
|
36.02 |
|
|
18.52 |
|
Gold co-product cash costs ($) |
|
1,030 |
|
|
1,419 |
|
|
1,144 |
|
|
1,303 |
|
|
1,040 |
|
|
2,506 |
|
|
1,289 |
|
|
|
|
|
|
|
|
|
Expressed in thousands US dollars |
Six Months Ended June 30, 2022 |
Six Months Ended June 30, 2021 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Direct production costs per financial statements |
$ |
25,681 |
|
$ |
20,868 |
|
$ |
46,549 |
|
$ |
23,773 |
|
$ |
14,875 |
|
$ |
6,303 |
|
$ |
44,951 |
|
Smelting and refining costs included in net revenue |
|
- |
|
$ |
1,591 |
|
$ |
1,591 |
|
|
- |
|
|
1,003 |
|
|
206 |
|
|
1,209 |
|
Royalties |
|
6,362 |
|
|
149 |
|
|
6,511 |
|
|
6,371 |
|
|
138 |
|
|
291 |
|
|
6,800 |
|
Special mining duty (1) |
|
1,526 |
|
|
371 |
|
|
1,897 |
|
|
941 |
|
|
408 |
|
|
- |
|
|
1,349 |
|
Opening finished goods |
|
(10,093 |
) |
|
(2,857 |
) |
|
(12,950 |
) |
|
(1,509 |
) |
|
(250 |
) |
|
(642 |
) |
|
(2,401 |
) |
Finished goods NRV adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
266 |
|
|
266 |
|
Closing finished goods |
|
16,164 |
|
|
681 |
|
|
16,845 |
|
|
6,985 |
|
|
408 |
|
|
1,145 |
|
|
8,538 |
|
Direct costs |
|
39,640 |
|
|
20,803 |
|
|
60,443 |
|
|
36,561 |
|
|
16,582 |
|
|
7,569 |
|
|
60,712 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022 |
Six Months Ended June 30, 2021 |
|
Guanaceví |
Bolañitos |
Total |
Guanaceví |
Bolañitos |
El Compas |
Total |
Silver production (ounces) |
|
2,328,000 |
|
|
346,162 |
|
|
2,674,162 |
|
|
1,857,458 |
|
|
226,271 |
|
|
38,095 |
|
|
2,121,824 |
|
Average realized silver price ($) |
|
23.95 |
|
|
23.95 |
|
|
23.95 |
|
|
26.95 |
|
|
26.95 |
|
|
26.95 |
|
|
26.95 |
|
Silver value ($) |
|
55,757,752 |
|
|
8,290,900 |
|
|
64,048,652 |
|
|
50,053,984 |
|
|
6,097,454 |
|
|
1,026,568 |
|
|
57,178,006 |
|
|
|
|
|
|
|
|
|
Gold production (ounces) |
|
7,157 |
|
|
10,827 |
|
|
17,984 |
|
|
5,827 |
|
|
12,935 |
|
|
3,513 |
|
|
22,275 |
|
Average realized gold price ($) |
|
1,900 |
|
|
1,900 |
|
|
1,900 |
|
|
1,781 |
|
|
1,781 |
|
|
1,781 |
|
|
1,781 |
|
Gold value ($) |
|
13,599,206 |
|
|
20,572,670 |
|
|
34,171,876 |
|
|
10,378,054 |
|
|
23,037,606 |
|
|
6,256,754 |
|
|
39,672,414 |
|
|
|
|
|
|
|
|
|
Total metal value ($) |
|
69,356,958 |
|
|
28,863,570 |
|
|
98,220,528 |
|
|
60,432,038 |
|
|
29,135,060 |
|
|
7,283,321 |
|
|
96,850,420 |
|
Pro-rated silver costs (%) |
|
80 |
% |
|
29 |
% |
|
65 |
% |
|
83 |
% |
|
21 |
% |
|
14 |
% |
|
59 |
% |
Pro-rated gold costs (%) |
|
20 |
% |
|
71 |
% |
|
35 |
% |
|
17 |
% |
|
79 |
% |
|
86 |
% |
|
41 |
% |
|
|
|
|
|
|
|
|
Pro-rated silver costs ($) |
|
31,868 |
|
|
5,976 |
|
|
39,414 |
|
|
30,282 |
|
|
3,470 |
|
|
1,067 |
|
|
35,843 |
|
Pro-rated gold costs ($) |
|
7,772 |
|
|
14,827 |
|
|
21,029 |
|
|
6,279 |
|
|
13,112 |
|
|
6,502 |
|
|
24,869 |
|
|
|
|
|
|
|
|
|
Silver co-product cash costs ($) |
|
13.69 |
|
|
17.26 |
|
|
14.74 |
|
|
16.30 |
|
|
15.34 |
|
|
28.00 |
|
|
16.89 |
|
Gold co-product cash costs ($) |
|
1,086 |
|
|
1,369 |
|
|
1,169 |
|
|
1,078 |
|
|
1,014 |
|
|
1,851 |
|
|
1,116 |
|
Reconciliation of Realized Silver Price Per Ounce and Realized
Gold Price Per Ounce
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Gross silver sales |
$ |
13,698 |
$ |
30,052 |
$ |
55,582 |
$ |
46,987 |
Silver ounces sold |
|
602,894 |
|
1,120,266 |
|
2,320,662 |
|
1,743,645 |
Realized silver price per ounces |
$ |
22.72 |
$ |
26.82 |
$ |
23.95 |
$ |
26.95 |
|
|
|
|
|
Expressed in thousands US dollars |
Three Months Ended June 30 |
Six Months Ended June 30 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Gross gold sales |
$ |
18,021 |
$ |
18,305 |
$ |
34,531 |
$ |
36,463 |
Gold ounces sold |
|
9,792 |
|
9,810 |
|
18,173 |
|
20,473 |
Realized gold price per ounces |
$ |
1,840 |
$ |
1,866 |
$ |
1,900 |
$ |
1,781 |
Cautionary Note Regarding Forward-Looking
Statements
This news release contains “forward-looking
statements” within the meaning of the United States private
securities litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Such forward-looking statements and information herein
include but are not limited to statements regarding Endeavour’s
anticipated performance in 2022 including changes in mining
operations and forecasts of production levels, anticipated
production costs and all-in sustaining costs, the timing and
results of various activities and the impact of the COVID 19
pandemic on operations. The Company does not intend to and does not
assume any obligation to update such forward-looking statements or
information, other than as required by applicable law.
Forward-looking statements or information
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, production
levels, performance or achievements of Endeavour and its operations
to be materially different from those expressed or implied by such
statements. Such factors include but are not limited to the
ultimate impact of the COVID 19 pandemic on operations and results,
changes in production and costs guidance, national and local
governments, legislation, taxation, controls, regulations and
political or economic developments in Canada and Mexico; financial
risks due to precious metals prices, operating or technical
difficulties in mineral exploration, development and mining
activities; risks and hazards of mineral exploration, development
and mining; the speculative nature of mineral exploration and
development, risks in obtaining necessary licenses and permits, and
challenges to the Company’s title to properties; as well as those
factors described in the section “risk factors” contained in the
Company’s most recent form 40F/Annual Information Form filed with
the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on
assumptions management believes to be reasonable, including but not
limited to: the continued operation of the Company’s mining
operations, no material adverse change in the market price of
commodities, mining operations will operate and the mining products
will be completed in accordance with management’s expectations and
achieve their stated production outcomes, and such other
assumptions and factors as set out herein. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements or information, there may be other
factors that cause results to be materially different from those
anticipated, described, estimated, assessed or intended. There can
be no assurance that any forward-looking statements or information
will prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements or
information. Accordingly, readers should not place undue reliance
on forward-looking statements or information.
Appendix
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited – prepared by management)(expressed in thousands of US
dollars, except for shares and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
30,782 |
|
|
$ |
47,775 |
|
$ |
88,522 |
|
|
$ |
82,241 |
|
|
|
|
|
|
|
|
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
Direct production costs |
|
|
19,828 |
|
|
|
26,223 |
|
|
46,549 |
|
|
|
44,951 |
|
Royalties |
|
|
2,194 |
|
|
|
4,340 |
|
|
6,511 |
|
|
|
6,800 |
|
Share-based payments |
|
|
113 |
|
|
|
111 |
|
|
240 |
|
|
|
229 |
|
Depreciation, depletion and amortization |
|
|
4,175 |
|
|
|
6,624 |
|
|
10,481 |
|
|
|
14,120 |
|
Write down of inventory to net realizable value |
|
|
- |
|
|
|
272 |
|
|
- |
|
|
|
272 |
|
|
|
|
26,310 |
|
|
|
37,570 |
|
|
63,781 |
|
|
|
66,372 |
|
|
|
|
|
|
|
|
|
|
Mine operating earnings |
|
|
4,472 |
|
|
|
10,205 |
|
|
24,741 |
|
|
|
15,869 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Exploration and evaluation |
|
|
3,784 |
|
|
|
5,025 |
|
|
7,000 |
|
|
|
9,155 |
|
General and administrative |
|
|
1,348 |
|
|
|
4,293 |
|
|
5,645 |
|
|
|
7,816 |
|
Care and maintenance costs |
|
|
189 |
|
|
|
55 |
|
|
379 |
|
|
|
576 |
|
Impairment (reversal of impairment) of non-current assets, net |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(16,791 |
) |
Write off of exploration properties |
|
|
500 |
|
|
|
- |
|
|
500 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,821 |
|
|
|
9,373 |
|
|
13,524 |
|
|
|
756 |
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss) |
|
|
(1,349 |
) |
|
|
832 |
|
|
11,217 |
|
|
|
15,113 |
|
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
336 |
|
|
|
216 |
|
|
634 |
|
|
|
507 |
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Foreign exchange |
|
|
(289 |
) |
|
|
659 |
|
|
522 |
|
|
|
(35 |
) |
Gain on asset disposal |
|
|
- |
|
|
|
5,841 |
|
|
- |
|
|
|
5,841 |
|
Investment and other |
|
|
(6,872 |
) |
|
|
1,802 |
|
|
(1,052 |
) |
|
|
4,553 |
|
|
|
|
(7,161 |
) |
|
|
8,302 |
|
|
(530 |
) |
|
|
10,359 |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
|
(8,846 |
) |
|
|
8,918 |
|
|
10,053 |
|
|
|
24,965 |
|
|
|
|
|
|
|
|
|
|
Income tax expense: |
|
|
|
|
|
|
|
|
Current income tax expense |
|
|
1,325 |
|
|
|
1,146 |
|
|
2,340 |
|
|
|
1,817 |
|
Deferred income tax expense |
|
|
1,752 |
|
|
|
1,116 |
|
|
7,974 |
|
|
|
4,243 |
|
|
|
|
3,077 |
|
|
|
2,262 |
|
|
10,314 |
|
|
|
6,060 |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) and comprehensive earnings (loss) for the
period |
|
$ |
(11,923 |
) |
|
$ |
6,656 |
|
$ |
(261 |
) |
|
$ |
18,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share based on net earnings |
$ |
(0.07 |
) |
|
$ |
0.04 |
|
$ |
(0.00 |
) |
|
$ |
0.12 |
|
Diluted earnings (loss) per share based on net earnings |
$ |
(0.07 |
) |
|
$ |
0.04 |
|
$ |
(0.00 |
) |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of shares outstanding |
|
180,974,609 |
|
|
|
168,383,755 |
|
|
176,291,929 |
|
|
|
164,051,368 |
|
Diluted weighted average number of shares outstanding |
|
184,569,970 |
|
|
|
172,195,942 |
|
|
179,018,499 |
|
|
|
167,743,113 |
|
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION(unaudited –
prepared by management)(expressed in thousands of US dollars)
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
116,226 |
|
|
$ |
103,303 |
|
Other investments |
|
|
8,293 |
|
|
|
11,200 |
|
Accounts and other receivable |
|
|
13,486 |
|
|
|
14,462 |
|
Income tax receivable |
|
|
1,219 |
|
|
|
177 |
|
Inventories |
|
|
35,664 |
|
|
|
27,485 |
|
Prepaid expenses |
|
|
11,566 |
|
|
|
5,135 |
|
Total current assets |
|
|
186,454 |
|
|
|
161,762 |
|
|
|
|
|
|
Non-current deposits |
|
|
595 |
|
|
|
599 |
|
Non-current income tax receivable |
|
|
3,570 |
|
|
|
3,570 |
|
Non-current other investments |
|
|
2,943 |
|
|
|
- |
|
Non-current IVA receivable |
|
|
7,528 |
|
|
|
4,256 |
|
Deferred income tax asset |
|
|
- |
|
|
|
936 |
|
Intangible assets |
|
|
- |
|
|
|
40 |
|
Right-of-use leased assets |
|
|
614 |
|
|
|
664 |
|
Mineral properties, plant and equipment |
|
|
141,806 |
|
|
|
122,197 |
|
Total assets |
|
$ |
343,510 |
|
|
$ |
294,024 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
26,383 |
|
|
$ |
31,991 |
|
Income taxes payable |
|
|
4,995 |
|
|
|
4,228 |
|
Loans payable |
|
|
5,179 |
|
|
|
4,128 |
|
Lease liabilities |
|
|
176 |
|
|
|
207 |
|
Total current liabilities |
|
|
36,733 |
|
|
|
40,554 |
|
|
|
|
|
|
Loans payable |
|
|
7,392 |
|
|
|
6,366 |
|
Lease liabilities |
|
|
755 |
|
|
|
794 |
|
Provision for reclamation and rehabilitation |
|
|
7,576 |
|
|
|
7,397 |
|
Deferred income tax liability |
|
|
8,545 |
|
|
|
1,506 |
|
Total liabilities |
|
|
61,001 |
|
|
|
56,617 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
Common shares, unlimited shares authorized, no par value,
issued |
|
|
|
|
and outstanding 181,051,354 shares (Dec 31, 2021 - 170,537,307
shares) |
|
631,751 |
|
|
|
585,406 |
|
Contributed surplus |
|
|
5,349 |
|
|
|
6,331 |
|
Retained earnings (deficit) |
|
|
(354,591 |
) |
|
|
(354,330 |
) |
Total shareholders' equity |
|
|
282,509 |
|
|
|
237,407 |
|
Total liabilities and shareholders' equity |
|
$ |
343,510 |
|
|
$ |
294,024 |
|
|
|
|
|
|
ENDEAVOUR SILVER CORP.CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS(unaudited – prepared
by management)(expressed in thousands of US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the period |
|
|
$ |
(11,923 |
) |
|
$ |
6,656 |
|
|
$ |
(261 |
) |
|
$ |
18,905 |
|
|
|
|
|
|
|
|
|
|
|
Items not affecting cash: |
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
|
972 |
|
|
|
1,028 |
|
|
|
2,499 |
|
|
|
2,193 |
|
Depreciation, depletion and amortization |
|
|
|
4,324 |
|
|
|
6,723 |
|
|
|
10,786 |
|
|
|
14,347 |
|
Impairment (reversal of impairment) of non-current assets, net |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(16,791 |
) |
Write off of exploration properties |
|
|
|
500 |
|
|
|
- |
|
|
|
500 |
|
|
|
- |
|
Deferred income tax expense |
|
|
|
1,752 |
|
|
|
1,116 |
|
|
|
7,974 |
|
|
|
4,243 |
|
Unrealized foreign exchange loss (gain) |
|
|
|
(84 |
) |
- |
|
(143 |
) |
|
|
(220 |
) |
- |
|
(53 |
) |
Finance costs |
|
|
|
336 |
|
|
|
216 |
|
|
|
634 |
|
|
|
507 |
|
Write down of inventory to net realizable value |
|
|
|
- |
|
|
|
272 |
|
|
|
- |
|
|
|
272 |
|
Loss (gain) on asset disposal |
|
|
|
105 |
|
|
|
(5,841 |
) |
|
|
46 |
|
|
|
(5,807 |
) |
Loss (gain) on other investments |
|
|
|
7,626 |
|
|
|
(1,366 |
) |
|
|
2,269 |
|
|
|
(3,912 |
) |
Net changes in non-cash working capital |
|
|
|
(22,156 |
) |
|
|
806 |
|
|
|
(21,042 |
) |
|
|
(8,360 |
) |
Cash from (used in) operating activities |
|
|
|
(18,548 |
) |
|
|
9,467 |
|
|
|
3,185 |
|
|
|
5,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
Proceeds on disposal of property, plant and equipment |
|
|
48 |
|
|
|
6,985 |
|
|
|
82 |
|
|
|
7,541 |
|
Mineral property, plant and equipment |
|
|
|
(15,451 |
) |
|
|
(8,164 |
) |
|
|
(28,448 |
) |
|
|
(15,434 |
) |
Purchase of investments |
|
|
|
(748 |
) |
|
|
- |
|
|
|
(2,119 |
) |
|
|
(832 |
) |
Proceeds from disposal of marketable securities |
|
|
|
- |
|
|
|
4,905 |
|
|
|
- |
|
|
|
9,288 |
|
Redemption of (investment in) non-current deposits |
|
|
2 |
|
|
|
19 |
|
|
|
4 |
|
|
|
(1 |
) |
Cash from (used) in investing activities |
|
|
|
(16,149 |
) |
|
|
3,745 |
|
|
|
(30,481 |
) |
|
|
562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
Repayment of loans payable |
|
|
|
(1,214 |
) |
|
|
(918 |
) |
|
|
(2,297 |
) |
|
|
(1,887 |
) |
Repayment of lease liabilities |
|
|
|
(54 |
) |
|
|
(43 |
) |
|
|
(106 |
) |
|
|
(85 |
) |
Interest paid |
|
|
|
(204 |
) |
|
|
(174 |
) |
|
|
(381 |
) |
|
|
(367 |
) |
Public equity offerings |
|
|
|
- |
|
|
|
29,034 |
|
|
|
46,001 |
|
|
|
59,134 |
|
Exercise of options |
|
|
|
1,448 |
|
|
|
785 |
|
|
|
1,578 |
|
|
|
4,583 |
|
Share issuance costs |
|
|
|
(15 |
) |
|
|
(664 |
) |
|
|
(2,812 |
) |
|
|
(1,266 |
) |
Deferred share unit redemption |
|
|
|
(6 |
) |
|
|
- |
|
|
|
(6 |
) |
|
|
- |
|
Performance share unit redemption |
|
|
|
- |
|
|
|
(2,174 |
) |
|
|
(1,897 |
) |
|
|
(2,174 |
) |
Cash from (used) financing activities |
|
|
|
(45 |
) |
|
|
25,846 |
|
|
|
40,080 |
|
|
|
57,938 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate change on cash and cash equivalents |
|
|
|
(46 |
) |
|
|
144 |
|
|
|
139 |
|
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
|
(34,742 |
) |
|
|
39,058 |
|
|
|
12,784 |
|
|
|
64,044 |
|
Cash and cash equivalents, beginning of the period |
|
|
151,014 |
|
|
|
85,989 |
|
|
|
103,303 |
|
|
|
61,083 |
|
Cash and cash equivalents, end of the period |
|
|
$ |
116,226 |
|
|
$ |
125,191 |
|
|
$ |
116,226 |
|
|
$ |
125,191 |
|
|
|
|
|
|
|
|
|
|
|
Endeavour Silver (NYSE:EXK)
Gráfico Histórico do Ativo
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Endeavour Silver (NYSE:EXK)
Gráfico Histórico do Ativo
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