Earnings slump as Endeavour holds onto its silver

A total of 1.6 million silver-equivalent ounces are being held

Endeavour Silver

Endeavour Silver

The company's adjusted net earnings of US$2.4 million in Q2 last year slumped some 280% to a loss of $4.3 million in the quarter this year. On a per share basis, they fell from an earning of $0.01 to a loss of $0.02 over the same period.

"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," Endeavour Silver's CEO Dan Dickson said.

A total of 1.6 million silver-equivalent ounces are being held which has caused a "short term" hit to earnings, he said.

Meanwhile, with its two producing mines in Mexico, Endeavour now expects to produce 7.6 million-8 million silver-equivalent ounces in 2022, which compares to its previous guidance of 6.7 million-7.6 million AgEq oz.

"We have continued to outperform our mine plans, by delivering an exceptional Q2 with production 15% above plan," the company's CEO Dan Dickson said.

"The additional production has allowed us to maintain our cost guidance on per ounce metrics, but industry-wide inflation continues to be a challenge," he said.

The 2022 all-in sustaining costs guidance stands at $20-$21/oz.

Dickson noted the largest inflationary impacts have been on energy cost, plant reagents, and steel prices.

"Cost control will continue to be a key focus as cost pressures are expected to continue for the remainder of the year," he said.

On the day of the announcement, 9 August, Endeavour's share price was down 4% day on day at C$4.68 (US$3.63). The company has a market capitalization of C$887.46 million.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.


Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across...


Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on quarterly mining...


Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices...


Mining Journal Intelligence Project Pipeline Handbook 2023

View our 50 top-ranked mining projects, handpicked...