VANCOUVER, British Columbia, Aug. 09, 2022 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce its financial and operating results for the three and six months ended June 30, 2022. As a result of the Company’s strong operating performance, Management has raised its 2022 production guidance. All dollar amounts are in US dollars (US$).

“We have continued to outperform our mine plans, by delivering an exceptional Q2 with production 15% above plan, stated Dan Dickson, CEO of Endeavour Silver. “This has prompted management to raise our production outlook for 2022 to 7.6 – 8.0 million silver equivalent ounces. The additional production has allowed us to maintain our cost guidance on per ounce metrics, but industry-wide inflation continues to be a challenge. We are seeing the largest inflationary impacts on energy costs, plant reagents and steel prices which are affecting both operating and development costs. Cost control will continue to be a key focus as cost pressures are expected to continue for the remainder of the year.”

Added Mr. Dickson, “During the 2 nd quarter, again we made the decision to withhold from sale a meaningful amount of silver, due to the drop in silver price. We are holding over 1.6 million silver equivalent ounces in finished goods inventory for future sale. Short term, the increased inventory has negatively impacted our quarterly financial metrics such as revenue, earnings, cash flow and our cash balance. Longer term, we anticipate selling the inventory at higher metal prices.”

Q2 2022 Highlights

Higher Production: 1,359,207 ounces (oz) of silver and 9,289 oz of gold for 2.1 million oz silver equivalent (AgEq) (1) reinforces delivery of improved consolidated production for the year.
Lower Revenue Due to Withholding Metal Sales : Revenue of $30.8 million from the sale of 602,894 oz of silver and 9,792 oz of gold at average realized prices of $22.72 per oz silver and $1,840 per oz gold.
Negative Earnings and Lower Cash Flow Due to Lower Revenue and Non-Cash Items : Net loss of $11.9 million, or $0.07 per share. Adjusted net loss of $4.3 million (2) after adjusting for a $7.6 million change in the fair value of investments. $3.6 million in operating cash flow before working capital changes (2) and Mine operating cash flow before taxes (2) of $8.8 million.
Operating Costs per Ounce In-Line with Guidance, Despite Industry-Wide Inflation: Cash costs (2) of $10.08 per oz payable silver and all-in sustaining costs ( 2 ) of $19.56 per oz payable silver, net of gold credits.
Healthy Balance Sheet: Cash position of $116.2 million and working capital (2) of $149.7 million.
Guanacevi Continued to Outperform: Production exceeded plan driven by higher grades.
Bolañitos Remained Steady: Strong silver production from higher silver grades and increased throughput were offset by lower gold production and lower gold grades.
Withheld Significant Metal Inventories : Metal inventory at quarter end totaled 1,399,356 oz silver and 2,580 oz gold of bullion inventory and 12,408 oz silver and 587 oz gold in concentrate inventory. The market value of finished goods at June 30, 2022 was $34.5 million.
Advancing the Terronera Project : Work continued on the early works program initiated last year including engineering, critical contracts, procurement of long-lead items and extensive due diligence on the project financing. The Company intends to make a formal construction decision subject to completion of a financing package and receipt of additional amended permits in the coming months. $18 million has been spent as of June 30 th 2022, with an additional budget of $23 million expected to be spent through to the end of October to continue the advancement of the project.
Subsequent to Quarter End

Closed the Acquisition of the Pitarrilla Project: The addition of the Pitarrilla project enhances the company’s growth profile while maintaining a silver focus.
Revision to Full Year 2022 Guidance

The following table summarizes the updated 2022 Production Guidance for Endeavour Silver:
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