Endeavour Silver Corp. Q3 FY2025 earnings call

• Q3 was transformational with Terronera in commercial production and Colpus in full production. Production profile expanded significantly.
• Terronera achieved 90% of design capacity and recoveries during commissioning; expects ~350,000 tons throughput over next six months with higher-grade zones accessed mid-2026.
• Culpa's exploration program ongoing, with $1,500,000 spent in Q3; evaluating underground expansion to 2,500 tonnes per day.
• PIT3A project advancing, focusing on upgrading inferred resources and preparing feasibility study mid-2026.
• Net loss of $37,500,000 due to $39,000,000 loss on derivative contracts; cash position at $57,000,000 as of September 30.

In Q3, Endeavour produced 1,800,000 ounces of silver, 7,300 ounces of gold totaling approximately 3,000,000 silver equivalent ounces (excluding Terronera). Revenue was $111,000,000, a 109% increase year-over-year. Mine operating cash flow before working capital changes rose 102%, with cash costs at $18 per payable silver ounce and all-in sustaining costs at $30.53 per ounce. Culpa produced 1,300,000 silver equivalent ounces in Q3. Terronera reached commercial production in October, with projected throughput of ~350,000 tons over the next six months at average grades of ~120 grams per ton silver and 2.5 grams per ton gold.

• Terronera to issue 2026 production and cost guidance in January 2026.
• Culpa expected to complete evaluation of underground expansion late in Q3 2025.
• PIT3A feasibility study scheduled for mid-2026.

• Mark-to-market losses on derivative contracts due to gold price movements, impacting income statement volatility.
• Operational challenges at Terronera like electrical issues and delays in LNG vaporization permit, affecting costs.
• Volatility in financial results due to IFRS accounting for derivatives, creating noise in income statements.

Q: Walk us through Culpa's performance vs expectations, including grades, costs, labor relations, etc.

A: Dan discussed that Culpa's throughput was above 2,000 tonnes per day, grades slightly lower, exploration spending on track, and ongoing efforts to balance mine life extension and cash flow.

Q: Update on Terronera's October performance, stockpile, and grade reconciliation.

A: Elizabeth and Dan noted Terronera has ~60,000-80,000 tons stockpile capacity, October was steady, and grades aligned relatively well with resource model.

Q: CapEx spending, Culpa expansion plans, and G&A related to DSUs.

A: Dan and Elizabeth discussed CapEx consistency, Culpa expansion evaluation ongoing, and G&A related to DSU revaluation being a noncash item affecting quarterly numbers.

Q: Free cash flow expectation and capital return plans.

A: Dan expected Q4/Q1 free cash flow due to Terronera's commercial production, with capital return plans tied to Terronera and PIT3A progress.

Q: Derivatives, share price volatility, and potential buyouts.

A: Dan explained derivative contract details, mark-to-market impacts, and noted no immediate plans to buy out derivatives due to current cash flow focus on growth projects.