• Total Revenue: $218 million, up 6% compared to 2023.
• Cost of Sales: $176 million, increased approximately 4% from the previous year.
• Mine Operating Earnings: $42 million.
• Mine Operating Cash Flow: $72 million.
• Adjusted Net Earnings: $8 million or $0.03 per share.
• Consolidated Cash Cost per Ounce: Decreased by 4% to $12.99.
• All-in Sustaining Costs: Increased by 4% to $23.88 per ounce.
• Cash Position: $106 million as of December 31, 2024.
• Working Capital: $79 million as of December 31, 2024.
• Silver Equivalent Production: 7.6 million ounces, at the higher end of guidance.
• Terronera Project Construction: 89% complete with $302 million spent out of a $332 million budget.

• Warning! GuruFocus has detected 4 Warning Sign with EXK.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Endeavour Silver Corp (NYSE:EXK) achieved the higher end of its revised production guidance, producing 7.6 million ounces of silver equivalent in 2024.
• The company reported a 6% increase in total revenue, reaching $218 million compared to 2023.
• Endeavour Silver Corp (NYSE:EXK) has a strong cash position of $106 million and working capital of $79 million as of December 31, 2024.
• The company is well-positioned to benefit from rising silver prices driven by industrial demand and supply constraints.
• Construction at the Terronera project is 89% complete, with commercial production expected in Q3 2025, marking a significant growth milestone.

Negative Points

• A trunnion failure at the Guanacevi mine led to reduced throughput from August to December 2024, impacting production.
• Cost of sales increased by approximately 4% due to lower economies of scale, fixed costs during the Guanacevi issue, and inflationary pressures.
• All-in sustaining costs rose by 4% to $23.88 per ounce, partially due to lower silver production.
• The company faces significant royalty costs at the El Curso concessions, with a sliding scale royalty reaching 16% at current silver prices.
• Endeavour Silver Corp (NYSE:EXK) is exposed to currency fluctuations, with about 50-60% of costs tied to the Mexican peso, which could impact cost management.

Q & A Highlights

Q: Can you remind us of the CapEx for Pitarrilla in 2025 and how it might change in 2026? A: Dan Dickson, CEO: We have a $26.6 million budget for Pitarrilla in 2025, with $10 million allocated to drilling and $16 million for mobile equipment, mine development, and evaluation studies. We don't have capital expenditure planned for 2026 until the feasibility study is completed.

Q: Should we still expect commercial production at Terronera in the third quarter, and are there any cost considerations for the rest of 2025? A: Dan Dickson, CEO: We are on track for commercial production in Q3 2025, with wet commissioning expected by the end of April. We haven't deviated from our $332 million budget, and everything is progressing well.

Q: How are cost pressures in Mexico affecting your operations, and how does the peso's weakness impact this? A: Dan Dickson, CEO: About 50-60% of our costs are tied to the Mexican peso. The devaluation of the peso benefits us from a cost standpoint. Labor accounts for 33% of our costs, and power and cyanide, sourced locally, are significant cost components.

Q: What is the status of the construction at Terronera, particularly regarding the e-houses and tailings construction? A: Dan Dickson, CEO: The e-houses are in place, and the filter presses are the critical path item. We expect to complete the filter presses by mid-April, allowing us to proceed with commissioning.

Q: Can you provide details on the royalty structure at Guanacevi and the expected feed from El Curso concessions this year? A: Dan Dickson, CEO: El Curso has a sliding scale royalty, currently at 16% due to high silver prices. About 80% of our production comes from El Curso, significantly impacting our cost structure.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.