Endeavour Silver's Q3 2024 Results: Challenges and Achievements

Endeavour Silver Releases Q3 2024 Production Results

VANCOUVER, British Columbia – Endeavour Silver Corp. ("Endeavour" or the "Company") is excited to share its production results for the third quarter of 2024. The Company reported an impressive 874,717 silver ounces and 9,290 gold ounces produced, totaling about 1.6 million silver equivalent ounces. To date, production has reached 6.0 million AgEq ounces, aligning well with updated production guidance for 2024 of 7.3 to 7.6 million AgEq ounces. Please note that all amounts are expressed in U.S. dollars unless specified otherwise.

Dan Dickson, the Chief Executive Officer of Endeavour, acknowledged the challenges posed by the trunnion failure at the Guanaceví mine. He emphasized the importance of management's response during difficult times, which can significantly influence long-term success. He stated, "Our team's ingenuity and commitment have played a crucial role in mitigating the impact on the mine and the community. We are dedicated to restoring the Guanaceví's full production capacity by December."

Q3 2024 Overview and Analysis

During Q3 2024, the production numbers reflected both challenges and steady operational achievements. Here are some key highlights:

Guanaceví Production Challenges

Production levels at the Guanaceví mine were adversely affected throughout August and September due to a trunnion failure in the primary ball mill. The total production during Q3 2024 came to 768,905 silver ounces and 2,828 gold ounces, with a recovery timeline estimated at 15 weeks. Full recovery is expected by December 2024.

Consistent Performance from Bolañitos

On a more positive note, the Bolañitos mine has exhibited consistent production output. The throughput has remained stable, and gold production has been slightly better than projected, largely due to improved gold grades mined. However, silver production has fallen slightly below expectations owing to lower silver grades. This trend in ore grades is anticipated to persist into the fourth quarter.

Sales Metrics and Inventory Status

Endeavour Silver reported sales of 1,017,392 silver ounces and 9,412 gold ounces during the third quarter. The inventory levels at the end of the quarter included 109,719 silver ounces and 401 gold ounces in bullion, plus an additional 8,202 silver ounces and 560 gold ounces in concentrate.

Financial Developments and Debt Management

During Q3 2024, a total of $25 million in drawdowns from the Terronera Senior Secured Debt Facility has been executed to facilitate the development of the Terronera mine. A final drawdown of $35 million occurred shortly after the quarter ended.

In the wake of the trunnion failure, early estimates suggest a cash shortfall of less than $5 million, alongside fabrication costs projected at $0.5 million for a new trunnion. The timeline for necessary fabrication and installation remains on target for December 2024.

Production Highlights for Q3 2024

Comparing production figures from Q3 2024 to those of Q3 2023 reveals a 24% decrease in silver production to 874,717 ounces, which is attributed to impaired operating capacity at the Guanaceví mine. Interestingly, gold production saw a 2% increase to 9,290 ounces, attributed to higher mining grades from both mines along with increased processing of third-party feeds at Guanaceví.

Prospective Financial and Operational Outlook

Investors and stakeholders should note that the upcoming Q3 2024 financial results are set to be announced before market opening on a specified Tuesday. A conference call will follow on the same day, providing insights into the results and operational strategies foreshadowed for Endeavour Silver.

As a mid-tier precious metals company, Endeavour is committed to fostering responsible mining practices. Its operations in Mexico, combined with a promising development project in Jalisco state, aim to create a positive impact on both the industry and the local communities. Furthermore, Endeavour possesses an extensive portfolio of exploration projects across Mexico, Chile, and the United States, heralding its ambition to be a leader in silver production.

Frequently Asked Questions

What were Endeavour Silver's production results for Q3 2024?

Endeavour Silver produced 874,717 silver ounces and 9,290 gold ounces, resulting in approximately 1.6 million AgEq ounces.

How has the trunnion failure affected production?

The trunnion failure led to decreased production at the Guanaceví mine, resulting in a 24% decline in silver production compared to Q3 2023.

What is the status of the Bolañitos mine?

The Bolañitos mine has maintained a steady throughput but silver production has fallen slightly due to lower grades, while gold production has exceeded expectations.

When will full operations at Guanaceví resume?

Full operations at the Guanaceví mine are expected to resume by December 2024.

What are the upcoming financial announcements for Endeavour Silver?

The Q3 2024 financial results will be released before the market opens on a specified Tuesday, followed by a management conference call.

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