Release Date: May 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Endeavour Silver Corp (NYSE:EXK) reported strong production figures for Q1 2025, with 1.2 million ounces of silver and 8,300 ounces of gold produced, totaling 1.9 million silver equivalent ounces.

• The company achieved revenue of $64 million, benefiting from higher precious metal prices.

• The Terronera project is nearing completion, with commissioning underway, and is expected to significantly enhance the company's production profile.

• The acquisition of the Culpa mine in Peru is expected to enhance production with significant exploration upside and existing infrastructure.

• Endeavour Silver Corp (NYSE:EXK) is on track to achieve annualized production of approximately 20 million silver equivalent ounces, marking a significant step forward in its growth strategy.

Negative Points

• The company reported a net loss of $32.9 million for the period, primarily due to the unrealized non-cash impact of gold hedging and forward swap contracts.

• Direct offering cost per ton increased by 66% compared to Q1 2024 due to 6% lower throughput.

• Cash and working capital decreased as the company continued investing in development activities at Terronera.

• The company is currently at a high-stress phase of the Terronera project, with concerns about cash flow and working capital requirements during the ramp-up phase.

• There is uncertainty regarding the timeline for ramping up production at Terronera, with a planned ramp-up period of about 90 days that could vary.

Q & A Highlights

• Warning! GuruFocus has detected 3 Warning Sign with EXK.

Q: What do you need to see in the ramp-up of Terrara to provide formal guidance, specifically on the cost side? A: Dan Dixon, CEO: We need to maintain consistent throughput through the mill and filter press to have confidence in the ramp-up timeline. We have a planned ramp-up of about 90 days, which could vary. We will provide production guidance once we have a higher probability of the ramp-up duration. Initially, we'll run lower-grade ore to work out any issues, and we'll provide cost guidance once we understand the grades and timeline for 2025.

Q: What are the most near-term priorities to ensure the ramp-up at Terrara stays on track, specifically at the plant? A: Dan Gray, COO: Our team is focused on going system by system, starting at the upper end of the plant and working through to the lower end. We've been running the mills and checking systems, and we've just started feeding water and tailings into the tailing filter area. It's a process of working through the system.