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Endeavour Silver (EXK) on Track to Meet '21 Production View

Endeavour Silver Corporation EXK produced 2.1 million silver equivalent ounces, 22% higher than the year-ago quarter, courtesy of record production at the Guanacevi mine. This brings the total to 6.1 million silver equivalent ounces for the nine-month period ended Sep 30, 2021. The company raised consolidated production guidance for 2021 to 7.7-8.0 million silver equivalents ounces to reflect continued strong performance at Guanacevi due to higher than expected grades and tonnage milled. Per the company, silver equivalent production at each mine is on track to meet, or exceed 2021 production plans.

Endeavour Silver is a mid-tier precious metals mining company that owns and operates two high-grade, underground, silver-gold mines in Mexico — Guanacevi and Bolanitos. It is currently advancing the Terronera mine project toward a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to expedite its goal to become a premier senior silver producer.

As previously announced, the company has suspended operations at El Compas due to exhaustion of reserves. This asset accounts for less than 5% of 2021 consolidated production and will not affect the company’s pathway to achieve or surpass this year’s production guidance.

Endeavour Silver produced 1,305,399 ounces of silver production in the quarter, reflecting a gain of 39% year over year. This was driven by a 46% increase in silver production at the Guanacevi mine. Increased throughput, and higher silver and gold grades led to record production at the mine during the quarter. This helped offset the impact of suspension of operations at the El Compas mine. Gold production was 10,541 ounces, up 3% year over year as a 47% increase in silver equivalent ounces produced at the Guanacevi mine was offset by the the suspension of operations at the El Compas mine. At Bolanitos, processed tons were ahead of plan, negated by lower ore grades. Silver and gold production at the Bolanitos mine increased 11% and 8%, respectively, in the quarter.

Backed by the strong performance at Guanacevi, the company increased consolidated production guidance to 7.7-8.0 million silver equivalents ounces for the year. Earlier, the company had projected silver equivalent production at 6.1-7.1 million ounces. The Guanacevi mine is now expected to produce 5.0-5.2 million silver equivalent ounces, higher than the prior expectation of 3.7-4.5 million ounces. The guidance for Bolanitos’ silver equivalent production is envisioned at 2.3-2.5 million ounces, slightly up from the previous expectation of 2.1-2.3 million ounces.

The company sold 699,540 ounces of silver and 9,925 ounces of gold in the third quarter. At the end of the quarter, it had 1,030,304 ounces of silver and 1,211 ounces of gold in bullion inventory, and 37,100 ounces silver and 2,028 ounces gold in concentrate inventory. Management continued to withhold metal from sale during the price correction over the quarter and plans to sell the inventory when precious metal prices rebound.

During the quarter, the company completed the acquisition Bruner Property, located in Nye County, NV for $10 million in cash, adding an advanced stage gold exploration project in a favorable jurisdiction to its company’s portfolio.

Endeavour Gold, along with Fortuna Silver Mines Inc. FSM, First Majestic Silver Corp. AG and Great Panther Mining Limited GPL fall under the Zacks Mining – Silver industry.

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