Endeavour Silver Corp.’s shares traded 9% higher after the Vancouver-based precious metals company reported Q1/22 financial results highlighting a 25% YoY increase in silver production.
Vancouver-based precious metals company Endeavour Silver Corp. (EDR:TSX; EXK:NYSE; EJD:FSE), which is focused on the discovery and mining of silver in the U.S., Mexico, and Chile, today announced financial and operating results for the first quarter of 2022 ended March 31st, 2022.
Endeavour Silver’s CEO Dan Dickson led off the report by commenting, “Our first-quarter performance was strong, putting us on track to achieve our 2022 production guidance…High-grade ore at Guanacevi was a driving force and is expected to continue throughout the balance of the year, while production at Bolanitos remains solid.”
CEO Dickson stated that during Q2/22 the company intends to move forward with its plans to secure debt financing required for advancing its Terronera project and finalizing its acquisition of the fully financed Pitarrilla project in Durango State, Mexico after it receives final approval from the Mexican Federal Economics Competition Commission. Dickson advised that “after the deal closes, drilling will commence to verify Pitarrilla’s historical data and update the historical resource. This will become a key focus for us for the balance of 2022.”
Endeavour Silver reported that net revenue in Q1/22 increased by 67% to $57.7 million, compared to $34.5 million in Q1/21. The company indicated that silver production in Q1/22 was quite strong rising to 1,314,955 oz, up from 1,048,100 oz in Q1/21. During the same period, the firm listed that gold production fell by 22% to 8,695 oz, down from 11,109 oz in the prior year’s corresponding quarter.
The company noted that silver equivalent ounces produced increased by 4% year-over-year to 2,010,555 oz and that for Q1/22 averaged realized prices were $24.38 oz Ag and $1,970 oz Au.
The firm reported that it experienced a slight decline in net earnings in Q1/22. Endeavour recorded net earnings of $11.7 million, or $0.07 per basic share, versus net earnings of $12.2 million, or $0.08 per basic share in Q1/21. The company noted that earnings from mine operations rose to $20.3 million in Q1/22, which was 350% above mine operating earnings of $5.7 million in Q1/21.
The company stated that production levels at its Guanacevi project exceeded expectations due to higher ore grades. The firm added that silver production at its Bolañitos property remained strong and steady but noted that the higher silver grades achieved were offset by lower than anticipated gold grades and gold production volume.
Endeavour advised that is proceeding with its efforts to advance its Terronera project and is working on the final engineering, construction, and long-term procurement details and hopes to finalize its mine plan and to secure financing and amended permits within the coming months.
As referenced above, the company advised that it entered into an agreement to acquire the Pitarrilla Project from SSR Mining Inc. (SSRM:NASDAQ) in January 2022. The company reiterated that the transaction is expected to close in Q2/22 and pointed out that Pitarrilla is one of the world’s largest undeveloped silver deposits.
The firm mentioned that on March 22, 2022, it arranged for the issuance of 9,293,150 common shares at a price of $4.95 per common share which generated gross proceeds of $46.0 million. The Company said that the bulk of the net proceeds raised ($35 million) will be paid to SSR Mining under the terms of the purchase agreement and the remaining amount will be used for general corporate needs and working capital.
Endeavour Silver is a mid-tier precious metals mining company based in Vancouver, B.C. that concentrates its efforts on the discovery and mining of silver. The firm currently has two producing high-grade underground silver-gold mines in Mexico and is working towards advancing a third project known as the Terronera Mine. Additionally, the company is engaged in several other exploration and development projects in Chile, Mexico, and the U.S. with a goal of becoming a premier senior silver producer.
Endeavour Silver started the day with a market cap of around $528.7 million with approximately 170.5 million shares outstanding and a short interest of about 2.8%. EXK shares opened greater than 9% higher today at $3.39 (+$0.29, +9.35%) over yesterday’s $3.10 closing price. The stock has traded today between $3.39 and $3.75 per share and is currently trading at $3.39 (+$0.29, +9.35%).
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