Endeavour Silver Reports Solid 2022 Financial Results: Earnings Conference Call at 9am PST (12pm EST) Time

2023-03-02 / @GlobeNewswire

 

VANCOUVER, British Columbia, March 02, 2023 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce its financial and operating results for the year ended December 31, 2022. All dollar amounts are in US dollars (US$).

“Our strong and reliable operating performance resulted in robust 2022 financial results. We are especially pleased to have delivered against our all-in sustaining cost guidance of less than $20 per ounce, despite industrywide inflationary pressures, as a result of our strong production performance. Cost control will continue to be a key focus for the operations group in 2023, as we find pockets of cost moderation and business improvements,” stated Dan Dickson, CEO of Endeavour Silver. “As silver prices rebounded in Q4, we were able to take advantage of the higher prices by selling almost half of the year’s projected sales towards the end of the year, which resulted in robust cash flow to fund our growth plans.”

Mr. Dickson added, “While the market anticipates the official construction decision at Terronera, our funding plan remains intact. We have been advancing development activities with our existing cash, while we confirm a viable debt financing package. We believe that project execution is the correct path for adding long-term value, as we position ourselves as a top silver investment vehicle for investors seeking industry leading growth.”

2022 Highlights

  • Production Surpassed Guidance: Production of 5,963,445 ounces (oz) of silver and 37,548 oz of gold for 9.0 million oz silver equivalent (AgEq)1 as compared to upward revised guidance of 7.6-8.0 million oz AgEq.
  • Strong Revenue: Net revenue of $210.2 million from the sale of 6,464,869 oz of silver and 38,868 oz of gold at average realized prices of $22.07 per oz silver and $1,814 per oz gold.
  • Costs Per Ounce Relatively In-Line with Guidance, Despite Industry-Wide Inflation: Cash costs(2) of $10.65 per oz payable silver were slightly above guidance due to increased labour, power, consumables and royalty costs and all-in sustaining costs (2) of $19.97 per oz is below cost guidance due to the increased silver oz produced.
  • Healthy Balance Sheet: Cash position of $83.4 million and $93.6 million in working capital(2). Cash decreased in the 4th quarter, as funds were spent on development activities at Terronera.
  • Increased Cash Flow: $54.0 million in operating cash flow before working capital changes(2), and mine operating cash flow before taxes(2) of $78.5 million.
  • Net Income: Net earnings of $6.2 million, or $0.03 per share, were impacted by inflationary pressures and a reduction in the realized silver price as compared to the prior year.
  • Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(2): Generated EBITDA of $51.9 million, 6% decrease from prior year due to the lower realized silver prices offset by the increased production.
  • Construction Preparation Advances at the Terronera Project: Progress on development activities include onsite delivery of mobile mining equipment, procurement of major equipment, and assembly of initial project infrastructure such as the temporary mine maintenance shop and a permanent camp facility. Earthworks included site clearing, road upgrades and underground mine access development.
  • Financial Due Diligence Continues on Financing the Terronera Project: 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.
  • Published Initial Mineral Resource Estimate for the Pitarrilla Project: One of the world’s largest undeveloped silver projects, Pitarrilla will form the cornerstone of the Company’s growth profile, together with Terronera and Parral (see News Release dated December 8, 2022).

Financial Overview (see appendix for consolidated financial statements)

Three Months Ended December 312022 Highlights
Year Ended December 31
20222021% Change20222021 % Change
   Production   
1,830,8351,443,56427%Silver ounces produced5,963,4454,870,78722%
10,3709,44610%Gold ounces produced37,54842,262(11%)
1,816,8131,432,57827%Payable silver ounces produced5,912,5094,826,68122%
10,1969,26110%Payable gold ounces produced36,90141,438(11%)
2,660,4352,199,24421%Silver equivalent ounces produced(1)8,967,2858,251,7479%
11.658.6535%Cash costs per silver ounce(2)(3)10.659.3114%
15.0311.9925%Total production costs per ounce(2)(4)14.7014.700%
19.3819.48(1%)All-in sustaining costs per ounce (2)(5)19.9720.34(2%)
224,289213,4925%Processed tonnes834,542887,424(6%)
135.71112.9120%Direct operating costs per tonne(2)(6)130.80115.3613%
177.35136.6230%Direct costs per tonne(2)(6)155.63133.9716%
14.8613.4111%Silver co-product cash costs(7)14.3515.11(5%)
1,2121,03817%Gold co-product cash costs(7)1,1801,07210%
   Financial   
82.048.569%Revenue ($ millions)210.2165.327%
2,816,8821,413,69999%Silver ounces sold6,464,8693,856,88368%
11,8438,71536%Gold ounces sold38,86839,113(1%)
21.8623.41(7%)Realized silver price per ounce22.0725.22(12%)
1,7831,811(2%)Realized gold price per ounce1,8141,7901%
8.0(0.5)1790%Net earnings (loss) ($ millions)6.214.0(56%)
8.14.674%Adjusted net earnings (loss) (11) ($ millions)6.9(6.5)206%
21.712.277%Mine operating earnings ($ millions)51.536.442%
30.718.268%Mine operating cash flow before taxes ($ millions)(8)78.561.927%
22.510.7110%Operating cash flow before working capital changes(9)54.032.268%
22.710.7111%EBITDA(10) ($ millions)51.954.9(6%)
93.6121.2(23%)Working capital (12) ($ millions)93.6121.2(23%)
   Shareholders   
0.040.00400%Earnings (loss) per share – basic ($)0.030.08(63%)
0.120.0689%Operating cash flow before working capital changes per share(9)0.300.1953%
189,993,085170,518,89411%Weighted average shares outstanding183,009,339167,289,7329%

(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 on SEDAR at www.sedar.com.

For the year ended December 31, 2022, net revenue, net of $3.0 million of smelting and refining costs, increased by 27% to $210.2 million (2021: $165.3 million).

Gross sales of $213.2 million in 2022 represented a 27% increase over the $167.3 million in 2021. Silver oz sold increased by 68% with a 12% decrease in the realized silver price, resulting in a 47% increase in silver sales. Gold oz sold increased by 1% with a 1% increase in the realized gold price, resulting in a 1% increase in gold sales. During the period, the Company sold 6,464,869 oz silver and 38,868 oz gold for realized prices of $22.07 and $1,814 per oz, respectively, compared to sales of 3,856,883 oz silver and 39,113 oz gold for realized prices of $25.22 and $1,790 per oz, respectively, in 2021. In 2022, silver and gold London spot prices averaged $21.73 and $1,800, respectively.

The Company significantly decreased its finished goods silver and gold inventory to 530,250 oz and 1,707 oz, respectively, at December 31, 2022 compared to 1,082,610 oz silver and 3,674 oz gold at December 31, 2021. The cost allocated to these finished goods was $6.1 million at December 31, 2022 compared to $15.6 million at December 31, 2021. At December 31, 2022, the finished goods inventory fair market value was $15.8 million, compared to $31.7 million at December 31, 2021. Earnings and other financial metrics, including mine operating cash flow(2), operating cash flow(2) and EBITDA(2) were positively impacted by the decreased bullion inventory held at year end.

After cost of sales of $158.6 million (2021 - $128.9 million), an increase of 23%, mine operating earnings were $51.5 million (2021- $36.4 million). The increase in cost of sales was due to increased production, labour, power and consumables costs and significantly higher royalty costs. Cost of sales was also impacted by the increase in ounces sold during 2022, as the Company held less inventory at the end of 2022 than at the end of 2021. Royalties increased 29% to $17.8 million due to increased mining of the high-grade Porvenir and Porvenir Cuatro extensions at the Guanaceví operation, which are subject to higher royalty rates. During 2022 the Company’s operations experienced higher than budgeted costs due to global supply constraints, inflationary pressure, materials shortages, labour costs tracking higher than planned and increased purchased ore at the Guanaceví operation.

The Company had operating earnings of $23.5 million (2021: $22.3 million) after exploration and evaluation costs of $16.2 million (2021: $17.9 million), general and administrative costs of $10.6 million (2021: $10.1 million), care and maintenance cost of $0.6 million (2021: $1.3 million), and a write-off of exploration properties of $0.7 million (2021: $0.7 million). In 2021, there was also an impairment reversal of $16.8 million, resulting from the valuation assessment performed for the El Cubo mine and related assets upon classification as held for sale, and severance cost of $0.7 million.

Earnings before income taxes were $25.0 million (2021: $29.7 million) after finance costs of $1.3 million (2021: $1.0 million), a foreign exchange gain of $1.9 million (2021: loss of $1.1 million), a net gain on disposal of assets of $2.5 million primarily generated by the gain on the sale of the El Compas mine of $2.7 million (2021: gain on the sale of El Cubo mine and assets of $5.8 million) and investment and other expense of $1.6 million (2021: investment and other income of $3.7 million).

The Company realized net earnings for the period of $6.2 million (2021: $14.0 million) after an income tax expense of $18.8 million (2021: $15.7 million). Current income tax expense increased to $6.4 million (2021 - $3.5 million) due to increased profitability of the Guanacevi mine impacting both the current income tax and the special mining duty, while deferred income tax expense of $12.4 million is primarily due to the estimated use of loss carryforwards to reduce taxable income at Guanacevi (2021 – $12.2 million)

Direct operating costs(2) on a per tonne basis increased to $130.80, up 13% compared with 2021 due to higher operating costs at Guanaceví and Bolañitos and a 6% decrease in processed tonnes. Guanaceví and Bolañitos have seen increased labour, power and consumables costs primarily driven by inflationary pressure and at Guanaceví, third party ore purchased and operating development have increased compared to the prior year. Direct costs per tonne (2) increased to $155.63, up 16% compared to 2021 due to the increase in direct operating costs as well as the increase in royalty costs.

Consolidated cash costs per oz, net of by-product credits, increased to $10.65 primarily due to the higher direct costs per tonne partially offset by increased silver production due to increased silver grades. All-in sustaining costs decreased 2% to $19.97 per oz in 2022 due to the higher cash costs and a moderate increase in capital expenditures being allocated over the increased silver ozs produced. Actual cash cost metrics were slightly higher than 2022 cost guidance primarily due to the increased costs relating to labour, power, consumables, increased third party ore purchases, higher royalties and special mining duty offset by the higher ore grades mined at Guanacevi.

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 annual 2022 financial results will be held today at 9:00 a.m. PT / 12:00 p.m. ET. To participate in the conference call, please dial the numbers below.

Date & Time:Thursday, March 2, 2023 at 9:00 a.m. PT / 12:00 p.m. ET
  
Telephone:Toll-free in Canada and the US +1-800-319-4610
 Local or International +1-604-638-5340
 Please 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 9734#. 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 mine 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 Information:

Galina Meleger, VP, Investor Relations Email: 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 December 31, 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 December 31, 2022 MD&A available on SEDAR at www.sedar.com.

Reconciliation of Working Capital

Expressed in thousands US dollarsAs at December 31, 2022As at December 31, 2021
Current assets$146,333$161,762
Current liabilities52,74940,554
Working capital$93,584$121,208
   

Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share

Expressed in thousands US dollarsThree Months Ended December 31
Years Ended December 31
(except for share numbers and per share amounts)2022202120222021
Net earnings (loss) for the period per financial statements$7,961($471)$6,201$13,955
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)
Gain on disposal of El Compas mine and equipment, net of tax--(2,733)-
Change in fair value of investments1045,1033,4702,117
Adjusted net earnings (loss)$8,065$4,632$6,938($6,526)
Basic weighted average share outstanding189,993,085170,518,894183,009,339167,289,732
Adjusted net earnings (loss) per share$0.04$0.03$0.04($0.04)
     

Note: The Company defines the adjusted earnings as net income adjusted to include certain non-cash and unusual item, and items that in the Company’s judgement are subject to volatility as a result of factors which are unrelated to the Company’s operation in the period. Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and, conversely, items no longer applicable may be removed from the calculation. During the current period, the Company has included changes in the fair value of its investments in marketable securities and made retroactive adjustments to prior periods for the same.

Reconciliation of Mine Operating Cash Flow Before Taxes

Expressed in thousands US dollars              Three Months Ended December 31
Years Ended December 31
 2022202120222021
Mine operating earnings per financial statements$21,655$12,222$51,525$36,368
Share-based compensation8987442421
Amortization and depletion8,9455,01425,17923,977
Write down of inventory to net realizable value-8961,3231,168
Mine operating cash flow before taxes$30,689$18,219$78,469$61,934
     

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 December 31
Years Ended December 31
(except for per share amounts)2022202120222021
Cash from (used in) operating activities per financial statements$44,391$18,071$54,993$23,462
Net changes in non-cash working capital per financial statements21,9247,392967(8,776)
Operating cash flow before working capital changes$22,467$10,679$54,026$32,238
Basic weighted average shares outstanding189,993,085170,518,894183,009,339167,289,732
Operating cash flow before working capital changes per share$0.12$0.06$0.30$0.19
     

Reconciliation of EBITDA and Adjusted EBITDA

Expressed in thousands US dollars               Three Months Ended December 31
Years Ended December 31
 2022202120222021
Net earnings (loss) for the period per financial statements$7,961($471)$6,201$13,955
Depreciation and depletion – cost of sales8,9455,01425,17923,977
Depreciation and depletion – exploration27692624330
Depreciation and depletion – general & administration5863214165
Depreciation and depletion – care & maintenance-307155
Depreciation and depletion – inventory write down---6
Finance costs23322816724
Current income tax expense2,8501,0056,3763,481
Deferred income tax expense2,3454,99212,37212,252
EBITDA$22,668$10,747$51,853$54,945
Share based compensation6197183,8783,636
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)
Gain on disposal of El Compas mine and equipment, net of tax--(2,733)-
Change in fair value of investments1045,1033,4702,117
Adjusted EBITDA$23,391$16,568$56,468$38,100
     

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
Year Ended December 31, 2022Year Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Direct production costs per financial statements$74,423$39,457$113,880$51,761$28,896$8,946$89,603
Smelting and refining costs included in net revenue-3,0293,029-1,7152441,959
Opening finished goods(10,093)(2,857)(12,950)(1,509)(250)(642)(2,401)
Finished goods NRV adjustment-----266266
Closing finished goods4,9532455,19810,0932,857-12,950
Direct operating costs69,28339,874109,15760,34533,2188,814102,377
Royalties17,55425717,81113,16526535013,780
Special mining duty (1)2,6123022,9142,67453-2,727
Direct costs89,44940,433129,88276,18433,5369,164118,884
By-product gold sales(27,569)(42,932)(70,501)(22,639)(38,645)(8,738)(70,022)
Opening gold inventory fair market value1,9004,7846,6847357461,2832,764
Closing gold inventory fair market value(2,740)(354)(3,094)(1,900)(4,784)-(6,684)
Cash costs net of by-product61,0401,93162,97152,380(9,147)1,70944,942
Amortization and depletion14,12911,05025,1797,94413,4912,71324,148
Share-based compensation22122144218018061421
Opening finished goods depreciation and depletion(1,965)(635)(2,600)(271)(104)(804)(1,179)
NRV depreciation and depletion cost adjustment-----66
Closing finished goods depreciation and depletion862799411,965635-2,600
Total production costs$74,287$12,646$86,933$62,198$5,055$3,685$70,938


 Year Ended December 31, 2022
Year Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Throughput tonnes412,303422,239834,542414,355418,51454,555887,424
Payable silver ounces5,324,531587,9785,912,5094,320,567462,70043,4144,826,681
        
Cash costs per silver ounce$11.46$3.28$10.65$12.12($19.77)$39.37$9.31
Total production costs per ounce$13.95$21.51$14.70$14.40$10.93$84.88$14.70
Direct operating costs per tonne$168.04$94.43$130.80$145.64$79.37$161.56$115.36
Direct costs per tonne$216.95$95.76$155.63$183.86$80.13$167.98$133.97


Expressed in thousands US dollarsThree Months Ended December 31, 2022
Three Months Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Direct production costs per financial statements33,5869,23542,82118,6897,329(5)26,013
Smelting and refining costs included in net revenue-694694-362(4)358
Opening finished goods(18,080)(195)(18,275)(12,910)(2,306)-(15,216)
Closing finished goods4,9532455,19810,0932,857-12,950
Direct operating costs20,4599,97930,43815,8728,242(9)24,105
Royalties8,430498,4794,1997944,282
Special mining duty (1)84516861932(152)-780
Direct costs29,73410,04439,77821,0038,169(5)29,167
By-product gold sales(11,591)(9,527)(21,118)(7,293)(8,380)(112)(15,785)
Opening gold inventory fair market value5,3682405,6082,1273,560-5,687
Closing gold inventory fair market value(2,740)(354)(3,094)(1,900)(4,784)-(6,684)
Cash costs net of by-product20,77140321,17413,937(1,435)(117)12,385
Amortization and depletion6,1602,7858,9452,1812,8271775,185
Share-based compensation4544894344-87
Opening finished goods depreciation and depletion(3,776)(60)(3,836)(1,920)(1,171)-(3,091)
Closing finished goods depreciation and depletion862799411,965635-2,600
Total production costs$24,062$3,251$27,313$16,206$900$66$17,172


 Three Months Ended December 31, 2022Three Months Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Throughput tonnes119,305104,984224,289108,334105,158N/A213,492
Payable silver ounces1,675,322141,4911,816,8131,298,036134,1783641,432,578
        
Cash costs per silver ounce$12.40$2.85$11.65$10.74($10.69)N/A$8.65
Total production costs per ounce$14.36$22.98$15.03$12.49$6.71N/A$11.99
Direct operating costs per tonne$171.48$95.05$135.71$146.51$78.38N/A$112.91
Direct costs per tonne$249.23$95.67$177.35$193.87$77.68N/A$136.62
        

Reconciliation of All-In Costs Per Ounce and AISC per ounce

Expressed in thousands US dollars                Year Ended December 31, 2022Year Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Cash costs net of by-product$61,040$1,931$62,971$52,380($9,147)$1,709$44,942
Operations share-based compensation22122144218018061421
Corporate general and administrative5,4391,9517,3904,5642,0823296,975
Corporate share-based compensation2,2147953,0091,9128731382,923
Reclamation - amortization/accretion268211479100839192
Mine site expensed exploration1,3511,1582,5091,6111,2161983,025
Intangible payments30114125011418382
Equipment loan payments9811,9552,9361,0992,082-3,181
Capital expenditures sustaining26,56111,75638,31721,96414,150-36,114
All-In-Sustaining Costs$98,105$19,989$118,094$84,060$11,633$2,462$98,155
Growth exploration and evaluation  12,626   14,277
Growth capital expenditures  35,450   7,872
All-In-Costs  $166,170   $120,304


 Year Ended December 31, 2022Year Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Throughput tonnes412,303422,239834,542414,355418,51454,555887,424
Payable silver ounces5,324,531587,9785,912,5094,320,567462,70043,4144,826,681
Silver equivalent production (ounces)6,599,3532,367,9328,967,2855,398,9272,463,572389,2488,251,747
        
Sustaining cost per ounce$18.43$34.00$19.97$19.46$25.14$56.71$20.34
All-In-costs per ounce  $28.10   $24.92


Expressed in thousands US dollars                Three Months Ended December 31, 2022
Three Months Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Cash costs net of by-product$20,771$403$21,174$13,937($1,435)($117)$12,385
Operations share-based compensation4544894344-87
Corporate general and administrative1,7715062,2771,538578222,138
Corporate share-based compensation36567432439141(11)569
Reclamation - amortization/accretion705312362502114
Mine site expensed exploration323295618251448-699
Intangible payments---7226-98
Equipment loan payments245489734246489-735
Capital expenditures sustaining6,6533,1039,7567,7423,344-11,086
All-In-Sustaining Costs$30,243$4,960$35,203$24,330$3,685($104$27,911
Growth exploration and evaluation  4,170   3,254
Growth capital expenditures  18,672   4,135
All-In-Costs  $58,045   $35,300


 Three Months Ended December 31, 2022
Three Months Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Throughput tonnes119,305104,984224,289108,334105,158N/A213,492
Payable silver ounces1,675,322141,4911,816,8131,298,036134,1783641,432,578
Silver equivalent production (ounces)2,075,243585,1922,660,4351,612,741581,4185,0852,199,244
        
Sustaining cost per ounce$18.05$35.06$19.38$18.74$27.46($285.98)$19.48
All-In-costs per ounce  $31.95   $24.64
        

Reconciliation of Sustaining Capital and Growth Capital

Expressed in thousands US dollars                Three Months Ended December 31Years Ended December 31
 2022202120222021
Capital expenditures sustaining$9,756$11,086$38,317$36,114
Growth capital expenditures18,6724,13535,4507,872
Acquisition capital expenditures(50)10,10635,94810,106
Property, plant and equipment expenditures per Consolidated Statement of Cash Flows$28,378$25,327$109,715$54,092
     

Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs

Expressed in thousands US dollarsYear Ended December 31, 2022Year Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Direct production costs per financial statements$74,423$39,457$113,880$51,761$28,896$8,946$89,603
Smelting and refining costs included in net revenue-$3,029$3,029-1,7152441,959
Royalties17,55425717,81113,16526535013,780
Special mining duty (1)2,6123022,9142,67453-2,727
Opening finished goods(10,093)(2,857)(12,950)(1,509)(250)(642)(2,401)
Finished goods NRV adjustment-----266266
Closing finished goods4,9532455,19810,0932,857-12,950
Direct costs89,44940,433129,88276,18433,5369,164118,884


        Year Ended December 31, 2022Year Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Silver production (ounces)5,340,553622,8925,963,4454,333,567491,41245,8084,870,787
Average realized silver price ($)22.0722.0722.0725.2225.2225.2225.22
Silver value ($)117,872,91313,748,032131,620,946109,292,56012,393,4111,155,278122,841,248
        
Gold production (ounces)15,73521,81337,54813,31724,6524,29342,262
Average realized gold price ($)1,8141,8141,8141,7901,7901,7901,790
Gold value ($)28,541,04239,565,66668,106,70923,837,43044,127,0807,684,47075,648,980
        
Total metal value ($)146,413,95653,313,698199,727,654133,129,99056,520,4918,839,748198,490,228
Pro-rated silver costs (%)81%26%66%82%22%13%62%
Pro-rated gold costs (%)19%74%34%18%78%87%38%
        
Pro-rated silver costs ($)72,01210,42685,59362,5437,3541,19873,575
Pro-rated gold costs ($)17,43730,00744,28913,64126,1827,96645,309
        
Silver co-product cash costs ($)13.4816.7414.3514.4314.9626.1515.11
Gold co-product cash costs ($)1,1081,3761,1801,0241,0621,8561,072


Expressed in thousands US dollars                Three Months Ended December 31, 2022Three Months Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl CompasTotal
Direct production costs per financial statements$33,586$9,235$42,821$18,689$7,329($5)$26,013
Smelting and refining costs included in net revenue-694694-362(4)358
Royalties8,430498,4794,1997944,282
Special mining duty (1)84516861932(152)-780
Opening finished goods(18,080)(195)(18,275)(12,910)(2,306)-(15,216)
Closing finished goods4,9532455,19810,0932,857-12,950
Direct costs$29,734$10,044$39,778$21,003$8,169($5)$29,167


 Three Months Ended December 31, 2022Three Months Ended December 31, 2021
 GuanacevíBolañitosTotalGuanacevíBolañitosEl Compas Total
Silver production (ounces)1,680,363150,4721,830,8351,301,941141,2583651,443,564
Average realized silver price ($)21.8621.8621.8623.4123.4123.4123.41
Silver value ($)36,725,5663,288,67640,014,24230,478,4393,306,8508,54533,793,833
        
Gold production (ounces)4,9365,43410,3703,8855,502599,446
Average realized gold price ($)1,7831,7831,7831,8111,8111,8111,811
Gold value ($)8,801,6939,689,70818,491,4017,035,7359,964,122106,84917,106,706
        
Total metal value ($)45,527,25812,978,38458,505,64237,514,17413,270,972115,39450,900,539
Pro-rated silver costs (%)81%25%68%81%25%7%66%
Pro-rated gold costs (%)19%75%32%19%75%93%34%
        
Pro-rated silver costs ($)23,9862,54527,20617,0642,036-19,365
Pro-rated gold costs ($)5,7487,49912,5723,9396,133(5)9,802
        
Silver co-product cash costs ($)14.2716.9114.8613.1114.41(1.01)13.41
Gold co-product cash costs ($)1,1651,3801,2121,0141,115(78)1,038
        

Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce

Expressed in thousands US dollarsThree Months Ended December 31Years Ended December 31
 2022202120222021
Gross silver sales$61,565$33,090$142,688$97,257
Silver ounces sold2,816,8811,413,6996,464,8683,856,883
Realized silver price per ounces$21.86$23.41$22.07$25.22


Expressed in thousands US dollarsThree Months Ended December 31Years Ended December 31
 2022202120222021
Gross gold sales$21,118$15,786$70,501$70,022
Gold ounces sold11,8438,71538,86839,113
Realized gold price per ounces$1,783$1,811$1,814$1,790
     

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 the development and financing of the Terronera project, including anticipated decisions on construction and financing, estimation of mineral resources at Pitarrilla, prospects for Terronera, Pitarrilla and Parral, Endeavour’s anticipated performance in 2023 including changes in mining operations and forecasts of production levels, anticipated production costs and all-in sustaining costs, and the timing and results of various activities. 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, availability of debt financing for the Terronera Project, 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. 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) 
(expressed in thousands of US dollars, except for shares and per share amounts) 
 Years ended
 December 31,December 31,
 2022  2021 
Revenue$210,160 $165,320 
       
Cost of sales:      
Direct production costs 113,880  89,603 
Royalties 17,811  13,783 
Share-based payments 442  421 
Depreciation, depletion and amortization 25,179  23,977 
Write down of inventory to net realizable value 1,323  1,168 
  158,635  128,952 
       
Mine operating earnings 51,525  36,368 
       
Expenses:      
Exploration and evaluation 16,186  17,925 
General and administrative 10,613  10,063 
Care and maintenance costs 580  1,356 
Impairment (reversal of impairment) of non-current assets, net -  (16,791)
Severance costs -  870 
Write off of mineral properties 682  715 
  28,061  14,138 
       
Operating earnings 23,464  22,230 
       
Finance costs 1,300  985 
Other income (expense):      
Foreign exchange gain (loss) 1,853  (1,131)
Gain on asset disposal 2,503  5,841 
Investment and other (1,571) 3,733 
  2,785  8,443 
Earnings before income taxes 24,949  29,688 
       
Income tax expense:      
Current income tax expense 6,376  3,481 
Deferred income tax expense 12,372  12,252 
       
  18,748  15,733 
Net earnings and comprehensive earnings for the year$6,201 $13,955 
       
Basic earnings per share based on net earnings$0.03 $0.08 
Diluted earnings per share based on net earnings$0.03 $0.08 
       
Basic weighted average number of shares outstanding 183,009,339  167,289,732 
Diluted weighted average number of shares outstanding 185,349,634  170,663,883 


ENDEAVOUR SILVER CORP.    
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION    
(expressed in thousands of US dollars)    
     
 December 31,December 31,
 20222021
ASSETS   
    
Current assets    
Cash and cash equivalents$83,391$103,303
Other investments 8,647 11,200
Accounts and other receivables 13,136 14,462
Income tax receivable 4,024 177
Inventories 19,184 27,485
Prepaid expenses 16,951 5,135
Loans receivable 1,000 -
Total current assets 146,333 161,762
     
Non-current deposits 565 599
Non-current income tax receivable 3,570 3,570
Non-current other investments 1,388 -
Non-current IVA receivable 10,154 4,256
Non-current loans receivable 2,729 -
Deferred income tax asset - 936
Intangible assets - 40
Right-of-use leased assets 806 664
Mineral properties, plant and equipment 233,892 122,197
Total assets$399,437$294,024


LIABILITIES AND SHAREHOLDERS’ EQUITY      
       
Current liabilities      
Accounts payable and accrued liabilities$39,831 $31,991 
Income taxes payable 6,616  4,228 
Loans payable 6,041  4,128 
Lease liabilities 261  207 
Total current liabilities 52,749  40,554 
       
Loans payable 8,469  6,366 
Lease liabilities 812  794 
Provision for reclamation and rehabilitation 7,601  7,397 
Deferred income tax liability 12,944  1,506 
Other non-current liabilities 968  - 
Total liabilities 83,543  56,617 
       
Shareholders’ equity      
Common shares, unlimited shares authorized, no par value, issued, issuable and outstanding 189,995,563 shares (Dec 31, 2021 - 170,537,307 shares) 657,866  585,406 
Contributed surplus 6,115  6,331 
Retained earnings (deficit) (348,087) (354,330)
Total shareholders’ equity 315,894  237,407 
Total liabilities and shareholders’ equity$399,437 $294,024 


ENDEAVOUR SILVER CORP. 
CONSOLIDATED STATEMENTS OF CASH FLOWS 
(expressed in thousands of US dollars) 
 Years ended
 December 31,December 31,
 2022  2021 
Operating activities  
Net earnings (loss) for the year$        6,201 $        13,955 
Items not affecting cash:  
Share-based compensation 3,878  3,636 
Depreciation, depletion and amortization 26,088  24,527 
Impairment (reversal of impairment) of non-current assets, net -  (16,791)
Deferred income tax expense (recovery) 12,372  12,252 
Unrealized foreign exchange loss (gain) 344  (176)
Finance costs 1,300  985 
Accretion of loans receivable (97) - 
Long term employee benefits 968  - 
Write off of mineral properties 682  715 
Write down of warehouse inventory 1,323  894 
Write down of inventory to net realizable value -  272 
Loss (gain) on asset disposal (2,503) (5,914)
Loss (gain) on other investments 3,470  (2,117)
Net changes in non-cash working capital 967  (8,776)
Cash from operating activities 54,993  23,462 
   
Investing activities  
Proceeds on disposal of property, plant and equipment 350  10,113 
Mineral properties, plant and equipment (109,715) (54,092)
Purchase of other investments (2,119) (3,307)
Proceeds from disposal of other investments -  9,288 
Redemption of (investment in) non-current deposits 34  (8)
Cash used in investing activities (111,450) (38,006)
   
Financing activities  
Repayment of loans payable (5,054) (3,563)
Repayment of lease liabilities (219) (179)
Interest paid (790) (668)
Public equity offerings 46,001  59,998 
Exercise of options 1,607  4,719 
Share issuance costs (2,885) (1,293)
Performance and deferred share unit settlement (1,904) (2,363)
Cash from financing activities 36,756  56,651 
       
Effect of exchange rate change on cash and cash equivalents (211) 113 
       
Increase in cash and cash equivalents
 (19,701) 42,107 
Cash and cash equivalents, beginning of the year 103,303  61,083 
Cash and cash equivalents, end of the year$        83,391 $        103,303 
   
Supplemental cash flow information (Note 19)  

Primary Logo

Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok