Vancouver, Canada – February 26, 2018 – Endeavour Silver Corp. (NYSE: EXK, TSX: EDR) announces its financial results for the fourth quarter and year ended December 31, 2017. The Company owns and operates three underground silver-gold mines in Mexico, the Guanaceví mine in Durango state, and the Bolañitos and El Cubo mines in Guanajuato state, is developing the El Compas project to production in Zacatecas state and advancing the Terronera project in Jalisco state to a development decision.
The complete financial statements and Management’s Discussion & Analysis can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are reported in US$.
Highlights of Fiscal 2017 (Compared to Fiscal 2016)
- Net earnings increased 148% to $9.7 million ($0.08 per share), compared to $3.9 million ($0.03 per share)
- EBITDA(1) decreased 8% to $25.6 million
- Cash flow from operations before working capital changes decreased 2% to $23.6 million
- Mine operating cash flow(1) decreased 14% to $45.4 million
- Revenue decreased 4% to $150.5 million on 4,892,855 silver oz sold and 51,460 gold oz sold
- Realized silver price increased 2% to $17.24 per ounce (oz) sold (consistent with the 2017 average spot price)
- Realized gold price increased 3% to $1,285 per oz sold (2% above the 2017 average spot price)
- Cash costs(1) increased 19% to $8.06 per oz silver payable (net of gold credits)
- All-in sustaining costs(1) increased 36% to $16.96 per oz silver payable (net of gold credits)
- Bullion inventory at year-end included 209,337 oz silver and 487 oz gold
- Concentrate inventory at year-end included 31,984 oz silver and 739 oz gold
- Working capital decreased 19% to $66.2 million at year end
- No outstanding debt as of December 31, 2017
- Silver production decreased 9% to 4,919,788 oz
- Gold production decreased 8% to 53,007 oz
- Silver equivalent production was 8.9 million oz (75:1 silver: gold ratio) – within revised guidance
- Completed a Pre-feasibility Study at the Terronera project
- Advanced the Terronera project towards a production decision, including engineering trade-off studies, received permits to build the mine and plant, awaiting waste dumps and tailings permits
- Completed a Preliminary Economic Assessment at the El Compas project, made a development decision and began construction (Endeavour News Release dated March 27, 2017).
- Explored the prospective Parral Project in the historic silver mining district of Hidalgo de Parral in southern Chihuahua state, Mexico and published an initial Mineral Resource Estimate.
- Received “Socially Responsible Company” awards for the Bolañitos and El Cubo mines
Highlights of Fourth Quarter 2017 (Compared to Fourth Quarter 2016)
- Net earnings of $2.7 million ($0.02 per share) compared to a loss of $5.2 million (loss of $0.04 per share)
- EBITDA(1) increased 475% to $6.9 million
- Cash flow from operations before working capital changes increased 507% to $4.6 million
- Mine operating cash flow(1) increased 99% to $12.7 million
- Revenue increased 45% to $41.6 million on 1, 392,518 silver oz sold and 14,117 gold oz sold
- Realized silver price decreased 1% to $16.84 per oz sold (consistent with Q4 average spot price)
- Realized gold price increased 13% to $1,288 per oz sold (consistent with Q4 average spot price)
- Cash costs(1) decreased 15% to $7.97 per oz silver payable (net of gold credits)
- All-in sustaining costs(1) decreased 37% to $12.70 per oz silver payable (net of gold credits)
- Silver production increased 32% to 1,436,962 oz
- Gold production increased 28% to 14,577 oz
- Silver equivalent production was 2.5 million oz (at a 75:1 silver: gold ratio)
- Adjusted earnings, mine operating cash flow, EBITDA, cash costs and AISC are non-IFRS measures. Please refer to the definitions in the Company’s Management Discussion & Analysis.
Bradford Cooke, CEO, commented, “Overall, we worked hard in 2017 to turn a year of challenges into a year of opportunities. I am pleased to report strong growth in net earnings in 2017, up 148% to $9.7 million or $0.08 per share, notwithstanding slightly lower revenues compared to 2016. In addition, our financial performance in the Q4, 2017 was up across all metrics compared to Q4, 2016. We reduced our operating costs during the year and expect to continue that trend into 2018.
“After a tough start to the year in the first quarter, Endeavour posted three consecutive quarters of improved production, making the fourth quarter our best of the year. Ore grades and throughput both improved in the second half. In 2017, silver equivalent production met the low end of our original guidance and the high end of our revised guidance, despite overcoming operational challenges at the Guanacevi mine.
“A new productivity optimization program was launched at Guanaceví last month and additional operational improvements are planned this year at Bolañitos and El Cubo. As we advance our development projects and continue optimizing our existing mines, we look forward to delivering one of the best growth profiles in the silver mining sector.”
Please read the complete press release at the following link: LINK