Endeavour Silver (TSX: EDR; NYSE: EXK) predicts it will miss its 2018 production guidance by 5% due to delayed commercial production at its El Compas silver mine, lower gold grades at its Bolanitos silver-gold mine, and lower output at its Guanacevi silver-gold mine. The company added it also may not meet its 2018 cost guidance as a result.
The company suspended the plant at El Compas in August to dewater and expand the fine tailings area, but continued operating the mine during the shutdown, stockpiling more than 12,000 tonnes of ore. The plant is scheduled to restart this week, and the company expects to hit commercial production at El Compas in 2018's fourth quarter.
Endeavour Silver produced and sold more silver in 2018's third quarter compared to the same quarter of the previous year, but it also produced and sold less gold.
The company increased silver production 13% to 1.42 million oz. silver and silver sales 20% to 1.53 million oz. silver. However, it decreased gold production 5% to 12,968 oz. gold and gold sales 5% to 13,025 oz. gold.
Overall, the company produced 2.4 million silver equivalent oz. at a 75:1 silver to gold ratio. It ended the quarter with 58,855 oz. silver and 130 oz. gold in bullion inventory and 43,920 oz. silver and 603 oz. gold in concentrate inventory.
The company attributed higher silver equivalent production to improved silver and gold grades at its El Cubo silver-gold mine where it has begun extracting ore from the center of the Villalpando-Asuncion orebody.
Shares of Endeavour Silver are currently trading at $3.10 with a 52-week range of $2.50 to $4.40. The company has a $380 million market capitalization.