Endeavour Silver Corp. Q3 FY2024 earnings call

• Operational Challenges: Guana City mine operated at reduced capacity due to ball mill failure, but temporary modifications completed in August, with return to full capacity expected in 15 weeks.
• Terronera Progress: Surface construction reached 77% at September 30th, over $258 million spent to date, on track for commissioning near end of 2024. Underground development, mill and infrastructure construction making progress.
• Production: Q3 silver equivalent production 1.6 million ounces, on track for 2024 guidance. Silver equivalent grades in line with expectations.
• Financials: Revenue up, cost of sales down, net loss, but adjusted income positive. Cash position and working capital reported.
• Community Relations: Supported local initiatives like early childhood center inauguration, scholarships, etc.

In the third quarter, Endeavour Silver reported top line revenue of $53 million, up 8% year-over-year. Cost of sales totaled $41 million, a decrease of 12% compared to Q3 2023. Q3 silver equivalent production totaled 1.6 million ounces, tracking well towards the updated 2024 production guidance of 7.3 million to 7.6 million silver equivalent ounces. The company reported a net loss of $17 million for the three-month period ended September 30, 2024, compared to a $2.3 million loss in Q3 2023. Excluding certain items, adjusted income was $1.6 million, compared to an adjusted loss of $8.3 million in Q3 2023. As of September 30, the company's cash position was $55 million, and working capital was $29 million.

• Production: Q4 expected to be similar to Q3. Terronera on track for commissioning near end of 2024.
• G&A: Cash G&A expected to be $8-10 million in 2024 and likely similar in 2025.
• 2025 Guidance: Cost guidance for Terronera to be released early next year.

• Operational: Ball mill failure at Guana City mine caused reduced capacity.
• Project Execution: Potential bottlenecks during Terronera ramp-up.
• Precious Metals Prices: Could impact mine plans and budgeting.

Q: Heiko Ihle asked about Terronera staffing levels, community embracement, and G&A.

A: Dan Dickson and Don Gray discussed staffing (over 750 people on site, aiming for 500 full employment), community support and initiatives, and noted cash G&A expected to be $8-10 million.

Q: Nick Giles asked about Terronera ramp process, cash costs, and liquidity.

A: Dan and Don discussed a 3-month ramp-up with focus on concentrate and tailing filters, and Elizabeth Senez mentioned cash position at $55 million in September and cash burn at Terronera slowing.

Q: Nicholas Clarke asked about Terronera budget commitment.

A: Dan Dickson stated they're on track, not providing exact spend but on good track with 77% completion of $271 million budget.

Q: Jake Sekelsky asked about return to steady state at Guanacevi and mine plans.

A: Don Gray said operating team did well in mitigating mill issues and expects smooth return to normal, and Dan mentioned revisiting mine plans with precious metals prices.

Q: Stephen Soock asked about Terronera underground and Pitarilla.

A: Don Gray discussed test stope blasting and better-than-expected ground conditions, and mentioned news on Pitarilla expected in coming weeks with underground ramp and feeder structures.