VANCOUVER, British Columbia, Aug. 02, 2018 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) released today its financial results for the Second Quarter ended June 30, 2018. The Company operates three silver-gold mines in Mexico, the Guanaceví mine in Durango state, and the Bolañitos and El Cubo mines in Guanajuato state. Endeavour is currently commissioning its fourth mine, El Compas, in Zacatecas state and advancing the Terronera mine project in Jalisco state to a development decision.

The Company reports a net loss of $5.7 million in the Second Quarter, 2018 compared to $16 thousand loss in the Second Quarter, 2017, primarily due to higher depreciation and depletion charges and foreign exchange loss. Revenue increased 19% to $38.8 million and mine operating cash flow before taxes(1) increased 69% to $14.9 million due to higher production, but cash flow from operations before working capital changes decreased 17% to $3.6 million and EBITDA fell 26% to $2.7 million as compared to the same period last year.

Cash costs fell 9% to $7.61 per oz silver payable (net of gold credits) and all-in sustaining costs fell 16% to $17.28 per oz silver payable (net of gold credits).

Highlights of Second Quarter 2018 (Compared to Second Quarter 2017)

Financial
•Net loss increased to 5.7 million (loss of $0.04 per share) compared to break even in 2017
•EBITDA(1) decreased 26% to $2.7 million
•Cash flow from operations before working capital changes decreased 17% to $3.6 million
•Mine operating cash flow before taxes(1) increased 69% to $14.9 million
•Revenue increased 19% to $38.8 million
•Realized silver price decreased 2% to $16.76 per ounce (oz) sold
•Realized gold price increased 1% to $1,281 per oz sold
•Cash costs(1) fell 9% to $7.61 per oz silver payable (net of gold credits)
•All-in sustaining costs(1) fell 16% to $17.28 per oz silver payable (net of gold credits)
•Working capital has fallen 11% at $58.9 million compared to $66.2 million at year end
•Secured ATM of up to $35.7 million primarily to advance the Terronera Project

Operations
•Silver production increased 19% to 1,355,895 oz
•Gold production increased 5% to 13,674 oz
•Silver equivalent production was 2.4 million oz (at a 75:1 silver: gold ratio)
•Silver oz sold increased 27% to 1,258,617 oz
•Gold oz sold increased 12% to 13,800 oz
•Bullion inventory at quarter-end included 176,452 oz silver and 265 oz gold
•Concentrate inventory at quarter-end included 53,810 oz silver and 827 oz gold
•Completed construction of the El Compas project, commenced plant commissioning
•Completed engineering trade-off studies for Terronera, preparing updated PFS
•Reported positive drill results from an in-fill drill program at Terronera
•Reported positive metallurgy and positive drill results from a step-out drill program at the Parral exploration property
•Appointed VP, New Projects, Manuel Echevarria to oversee technical services and development projects

(1) EBITDA, mine operating cash flow, cash costs and all-in sustaining costs are non-IFRS measures. Please refer to the definitions in the Company’s Management Discussion & Analysis.

Bradford Cooke, Endeavour CEO, commented, “Our financial performance in Q2, 2018 was tempered by higher depreciation and depletion charges primarily at Guanacevi, higher foreign exchange losses related to depreciation of the Mexican peso, higher current taxes primarily at Bolanitos and El Cubo and increased expenditures advancing Terronera and exploring Parral.

“El Cubo continues to out-perform plan, delivering record grades and providing strong cash flow for the Company. Bolanitos is running a bit behind plan but continues to generate strong cash flow and should improve in Q3. Guanacevi continues to be challenging, but the focus on higher development in Q2 is returning higher throughput in July. El Compas is expected to achieve commercial production in Q3 and start generating positive cash flow for the Company in the second half of this year.”

Financial Results

Revenue in the Second Quarter, 2018 totaled $38.8 million (2017 - $32.7 million) on sales of 1,258,617 silver ounces and 13,800 gold ounces at realized prices of $16.76 and $1,281 per ounce respectively, compared to sales of 988,821 silver ounces and 12,294 gold ounces at realized prices of $17.16 and $1,270 per ounce respectively in Q2, 2017.

After cost of sales of $34.2 million (2017 - $27.2 million), mine operating earnings amounted to $4.6 million (2017 - $5.4 million) from mining and milling operations in Mexico. The 26% increase in cost of sales was primarily due to increased depreciation and depletion. Excluding depreciation and depletion of $7.9 million (2017 - $3.3 million), share-based payments recovery of $0.1 million and an inventory write down of $2.5 million, mine operating cash flow before taxes was $14.9 million (2017 – $8.8 million) in Q2, 2018.

Net losses amount to $5.7 million (2017 –$16 thousand) after depreciation and depletion, exploration, general and administrative expenses and foreign exchange.

Direct production costs per tonne in Q2, 2018 increased 3% compared with Q2, 2017. The higher production costs per tonne were driven mainly by lower Guanaceví mine output due to increased mine development and the costs related to implementing a productivity optimization program. The higher costs at Guanaceví were offset by increased production due to higher throughput and grades at El Cubo.

The out-performance of El Cubo resulted in 9% lower consolidated cash costs per oz, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute). Similarly, all-in sustaining costs (also a non-IFRS measure) decreased 16% to $17.28 per oz in Q2, 2018 due to lower operating costs per ounce and lower capital expenditures in Q2, 2018 compared to Q2, 2017, offset by higher general and administration charges at the corporate level.

The Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis can be viewed on the Company’s website at www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov. All amounts are reported in US$.

Conference Call

A conference call to discuss the results will be held today, Thursday, August 2, 2018 at 10:00am PT (1:00pm ET). To participate in the conference call, please dial the numbers below. No pass-code is necessary.

Toll-free in Canada and the US: 1-800-319-4610