Endeavour Silver on track to meet updated 2024 production targets
Endeavour Silver Corp. (EDR-TSX, EXK-NYSE) reported third quarter 2024 production of 874,717 silver ounces and 9,290 gold ounces. That amounted to 1.6 million ounces of silver equivalent (AgEq). Total year to date production of 6.0 million ounces of AgEq is tracking towards the updated production guidance of 7.3 to 7.6 million AgEq ounces.
In an overview of its third quarter results, the company said production at its Guanacevi Mine in Durango, Mexico, decreased in August and September due to a trunnion failure in the primary ball mill.
“The trunnion failure at the Guanacevi mine poses a significant short-term challenge for the company; however, it’s how we manage these difficult moments that often shape our long-term success,’’ said Endeavour CEO Dan Dickson. “The ingenuity, commitment, and hard work of our team have been crucial in reducing the impact of the mine and the surrounding community,’’ he said. “We remain focused on further mitigating the effects and look forward to returning Guanacevi to full production capacity in December.’’
Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. They include the Guanacevi Mine and the Bolanitos Mine in Guanajuato.
Endeavour Silver shares eased 0.70% or $0.04 to $5.65 in early trading, Tuesday. The shares currently trade in a 52-week range of $6.87 and $1.94.
Meanwhile, the Guanacevi mine produced 768,905 silver ounces and 2,828 gold ounces in the third quarter.
The company said production results at its Bolanitos mine remain consistent. With throughput remaining steady, gold production continues to be slightly above plan due to higher gold grades. However, the company said silver production continues to be slightly below plan due to lower silver grades. Processed ore grades are expected to have a similar variation in the fourth quarter.
Endeavour said it sold 1,017,392 silver ounces and 9,412 gold ounces during the third quarter. A total of 109,719 silver ounces and 401 gold ounces of bullion inventory and 8,202 silver ounces and 560 gold ounces in concentrate inventory were held at the close of the third quarter.
Drawdowns totaling $25 million were made during the third quarter of 2024 to develop the Terronera mine in Jalisco State, Mexico. A final drawdown of $35 million was made subsequent to the end of the third quarter. Endeavour announced the first drawdown of a $120 million senior secured debt facility in a press release on April 10, 2024. The company has said Terronera is scheduled to begin production in late 2024.
Over a 10-year mine life, the operation is expected to deliver annual production of 4.0 million ounces of silver, and 38,000 ounce of gold, or 7.0 million ounces of AgEq. The flotation plant has a design capacity of 2,000 tonnes per day.