Endeavour Silver to produce up to 7.1 million oz AgEq in 2021, shares up
Endeavour Silver Corp. [EDR-TSX; EXK-NYSE] reported its 2021 production and cost guidance for its three silver-gold mines in Mexico: the Guanacevi mine, Durango state, the Bolanitos mine, Guanajuato state and the El Compas mine, Zacatecas state. (dollar amounts in US$).
In 2021, silver production is expected to range from 3.6 million to 4.3 million ounces and gold production is anticipated to be in the 31,000-to-35,500-ounce range. Silver equivalent production is forecasted to total 6.1 million to 7.1 million oz at an 80:1 silver:gold ratio.
Consolidated cash costs and all-in sustaining costs in 2021 are estimated, respectively, to be $7 to $8 per oz silver and $19 to $20 per oz silver, net of gold by-product credits.
Costs are anticipated to be higher than 2020 due to higher royalty and mining duty payments expected in 2021. Metal price assumptions for 2021 are $22/oz silver and $1,760/oz gold.
At Guanacevi, production will range between 1,000 and 1,200 tpd and average 1,100 tpd from the Milache, SCS and P4E orebodies. A significant portion of production will be mined from the Porvenir Cuatro extension on the El Curso concessions.
At Bolanitos, production will range between 1,000 and 1,200 tpd and average 1,050 tpd from the Plateros-La Luz, Lucero-Karina and Bolanitos-San Miguel vein systems. Ore grades are expected to be similar to 2020 mined grades and the cash cost per oz and direct cost per tonne should be similar to 2020.
At El Compas, production is forecast to continue into Q2 2021 from the El Compas mine. New resources discovered in the Calicanto and Misie veins on the Calicanto property are being evaluated for possible addition to the mine plan.
Cash costs, net of gold by-product credits, are expected to be $7-$8/oz of silver produced in 2021. Consolidated cash costs on a co-product basis are anticipated to be $13-$14/oz silver and $1,000-$1,100/oz gold.
All-in sustaining costs, net of gold by-product credits are estimated to be $19-$20/oz of silver produced. When non-cash items such as stock-based compensation are excluded, AISC is forecast to be $18-$19.
Direct operating costs are estimated to be $105-$115/tonne, including royalties and special mining duties, which are both expected to be significantly higher in 2021 compared with 2020.
In January 29 trading, shares gained $0.47 to $6.55, up 7.7% on a volume of 1,832,200.