Endeavour Silver Reports Financial Results for the First Quarter 2021; Earnings Conference Call at 10am PDT (1pm EDT) Today
(firmenpresse) -
VANCOUVER, British Columbia, May 11, 2021 (GLOBE
NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK; TSX:
EDR
- https://www.commodity-tv.com/ondemand/companies/profi
l/endeavour-silver-corp/
) released its financial results today for the three
months ended March 31, 2021. The Company operates
three silver-gold mines in Mexico: the
Guanacevi mine in Durango state, the Bolanitos mine in
Guanajuato state and the El
Compas mine in Zacatecas state.
Bradford Cooke, CEO, commented, We are off to a good
start in 2021, with the mining operations meeting our
production plans notwithstanding the severe weather
events that caused a slow down of production during
the
1
st quarter. As a result, our operating costs were a bit
higher than
plan but we expect costs to be lower going forward.
Revenue, cash flow and earnings were all sharply
higher in Q1, 2021 compared to Q1, 2020. The sale of
El
Cubo helped boost our earnings, offset by our decisions
to hold back some metal inventory from sale near the
end of the
1
st quarter as well as elevated general and
administrative
expenses.
The Terronera feasibility study is on track for
completion in the
3
rd quarter and exploration is ongoing at each of our
mines and projects to test highly prospective targets.
We have a busy year ahead, as our attention turns to
developing our next core asset at
Terronera.
2021 First Quarter Highlights
- Metal Production: Produced 1,039,710 ounces (oz)
silver, up 22% and 10,894 oz gold, up 31%, in line
with guidance of 1.9 million oz silver equivalent
(
AgEq), up 26%, at an 80:1 silver:gold ratio, compared
to Q1, 2020.
- Gross Sales: Total $35.1 million, up 58%, from the
sale of 623,379 oz of silver and 10,663 oz gold at
average realized prices of $27.17 per oz silver and
$1,703 per oz gold.
Held 523,235 oz silver and 1,123 oz gold of bullion
inventory and 6,582 oz silver and 566 oz gold in
concentrate inventory. Management withheld metal from
sale during the price correction over last two weeks
of March.
- Operating Costs: Cash cost(1) $7.86 per oz payable
silver, flat year-on-year and all-in sustaining cost
(AISC)
(1) $19.94 per oz payable silver, up 8% year-on-year,
both net of gold credits.
- Cash Flow: $5.2 million in cash flow from operations
before working capital changes, up 205% compared to
Q1, 2020 as the Company accumulated finished goods,
invested in exploration
activities and advanced the Terronera Feasibility Study.
- Net Earnings: Earnings of $12.2 million or $0.08 per
share, up sharply compared to a loss of $15.9 million
in Q1, 2020 due to the reversal of the historical
impairment of the El
Cubo asset sold in April, offset by increased
exploration activities, evaluation activities, and
higher tax expense. Excluding the impairment reversal,
the adjusted earnings resulted in a loss of $4.5
million. At quarter end, the finished golds inventory
was carried at a cost of $8.0 million compared to the
fair market value of $15.9 million.
- Agreement to Sell the El Cubo Assets: Advanced the
sale of the El
Cubo assets in Guanajuato, Mexico to Vangold Mining
Corp for $15 million in cash and share
payments with up to $3 million in contingent payments,
with the transaction closing April 9, 2021.
- Balance Sheet: Cash position $86.0 million, up 473%
and working capital $113.1 million, up 316% compared
to Q1, 2020. Raised $30.1 million in equity financing
through an ATM facility. Only term liabilities are
equipment loans of $8.7 million,
entered into in previous years to upgrade the mobile
fleet.
(1) Mine operating cash flow, cash costs and all-in
sustaining costs are non-IFRS measures. Please refer
to the definitions in the Companys Management
Discussion &
Analysis.
Financial Overview
In Q1, 2021, net revenue increased 58% to $34.5 million
as a result
of
higher metal prices and increased production. As a
result, mine operating cash flows, operating cash
flows and EBITDA all increased significantly compared
to Q1, 2020. The Company recognized earnings of $12.2
million compared to a loss of $15.9 million in Q1,
2020. An impairment reversal of $16.8 million was
recognized
as a result of the classifying the El Cubo mine and
related assets and liabilities, as held for sale in
relation to the April
9
th sale.
Cost of sales for Q1, 2021 was $28.8 million, an
increase of 16% over the cost of sales of $24.8
million for the same period of 2020. The increase in
cost of sales was primarily related to significantly
higher royalty costs and labour costs partially offset
by improved productivity at the
Guanacevi and Bolanitos operations. Royalties increased
187% to $2.5 million due to higher realized prices and
the increased mining of the high grade
Porvenir Cuatro extensions at the Guanacevi operation
which is subject to the significantly higher royalty
rates.
The Company increased its finished goods silver and
gold inventory to 529,817 oz and 1,689 oz,
respectively
at March 31, 2021 compared to 116,484 oz silver and
1,459 oz gold at December 31, 2020. The cost allocated
to these finished goods was
$8.0
million at March 31, 2021, compared to $3.6 million at
December 31, 2020.
At March 31, 2021, the finished goods inventory fair
market value was $15.9 million, compared to $5.8
million at December 31,
2020.
Financial Results (Consolidated Statement of Operations
Appended
Below)
For the period ended March 31, 2021, the Company
generated net revenue of $34.5 million an increase of
58% compared to $21.9 million. Gross sales of $35.1
million in Q1, 2021 represented a 57% increase over
the $22.8 million for the same period in 2020. There
was a 6% decrease in silver ounces sold and a 77%
increase in the realized silver price resulting in a
66% increase to silver sales. There was a 43% increase
in gold ounces sold with a 4% increase in realized
gold prices resulting in a 49% increase in gold sales.
During the period, the Company sold 623,379 oz silver
and 10,663 oz gold, for realized prices of $27.17 and
$1,703 per oz respectively, compared to sales of
665,500 oz silver and 7,454 oz gold, for realized
prices of $15.33 and $1,633 per oz, respectively, in
the same period of 2020. For the three months ended
March 31, 2021, silver and gold spot prices averaged
$26.26 and $1,794,
respectively.
After cost of sales of $28.8 million (Q1, 2020 - $24.8
million), mine operating earnings amounted to a $5.7
million (Q1, 2020 - loss of $2.9 million) from mining
and milling operations in
Mexico.
Excluding depreciation and depletion of $7.5 million
(Q1, 2020 - $6.0 million), stock-based compensation of
$0.1 million (Q1, 2020- $0.1 million) mine operating
cash flow before taxes was $13.3 million in Q1, 2021
(Q1, 2020 - $4.3 million). Operating earnings were
$14.3 million (Q1, 2020 - loss of $8.6 million) after
exploration and evaluation expenditures of $4.1
million (Q1, 2020 - $2.4 million), general and
administrative expense of $3.5 million (Q1, 2020 -
$2.0 million) and El
Cubo care and maintenance costs of $0.5 million (Q1,
2020 - $1.3 million). An impairment reversal of $16.8
million was recognized
as a result of the classifying the El Cubo mine and
related assets and liabilities as held for sale in
relation to the April
9
th sale.
Net earnings amounted to $12.2 million ($0.08 per
share) compared to a net loss of $15.9 million (loss
of $0.11 per share) in Q1,
2020.
Current income tax expense increased to $0.7 million
(Q1, 2020 - $0.3 million) related to an increase in
special mining duty, while deferred income tax expense
of $3.1 million was recognized due to the estimated
use of loss carry forwards to reduce taxable income at
Guanacevi and Bolanitos (Q1, 2020 - $1.9 million).
Direct operating costs per tonne in Q1, 2021 increased
16%, to $112.36 compared with Q1, 2020 due to higher
operating costs at
Guanacevi and Bolanitos, offset by lower costs at El Com
pas
. Guanacevi and Bolanitos have seen increased labour
costs and increased third party ore purchased at
Guanacevi compared to prior year. Including royalties
and special mining duty, direct costs per tonne
increased 24% to $126.23. Royalties increase 187% to
$2.5 million as increased production from the El
Curso concession at Guanacevi and higher prices
substantially increased the royalty expense. The
higher prices and higher grades increased special
mining duty expense to $0.4 million for Q1,
2021.
Consolidated cash costs per ounce, net of by-product
credits (a non-IFRS measure and a standard of the
Silver Institute) was flat at $7.86 as the higher
grades and higher prices offset the higher direct
costs per tonne. All-in sustaining costs (also a
non-IFRS measure) increased 8% to $19.84 per ounce in
Q1,
2021 as a result of higher corporate general and
administrative costs and increased capital
expenditures at
Guanacevi to accelerate mine development within the El C
urso
ore body. In Q1, 2020 corporate general and
administrative included a $1.1 million mark to market
recovery of deferred share
units expense whereas the mark to market recovery was
$0.2 million in Q1,
2021.
The Condensed Consolidated Interim Financial Statements
and Managements Discussion & Analysis can be viewed
on the Companys website at
www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR
at
www.sec.gov. All amounts are reported in US$.
Conference Call
A conference call to discuss these results will be held
today, Tuesday, May 11 at 10am PDT (1pm EDT). 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
Local Vancouver: 604-638-5340
Outside of Canada and the US: +-604-638-5340
A replay of the conference call will be available by
dialing 1-800-319-6413 in Canada and the US
(toll-free) or +604-638-9010 outside of Canada and the
US. The required
pass-code is 6594 #. The replay will also be available
on the Companys website at
www.edrsilver.com.
About Endeavour Silver - Endeavour Silver Corp. is a
mid-tier precious metals mining company that owns and
operates three high-grade, underground, silver-gold
mines in Mexico. Endeavour is currently advancing the
Terronera mine project towards a development decision
and exploring its portfolio of exploration and
development projects in Mexico and Chile to facilitate
its goal to become a premier senior silver
producer.
Our philosophy of corporate social integrity creates
value for all
stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information:
Galina Meleger, Director Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
Email: gmeleger(at)edrsilver.com
Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, Twitter, Instagram
and
LinkedIn
In Europe:
Swiss Resource Capital AG
Jochen Staiger
info(at)resource-capital.ch
www.resource-capital.ch
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements
within the meaning of the United States private
securities litigation reform act of 1995 and
forward-looking information within the meaning of
applicable Canadian securities legislation. Such
forward-looking statements and information herein
include but are not limited to statements regarding
Endeavours anticipated performance in 2021 including
changes in mining operations and production levels,
the timing and results of various activities and the
impact of the COVID 19 pandemic on operations. The
Company does not intend to and does not assume any
obligation to update such forward-looking statements
or information, other than as required by applicable
law.
Forward-looking statements or information involve known
and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity,
production levels, performance or achievements of
Endeavour and its operations to be materially
different from those expressed or implied by such
statements. Such factors include but are not limited
to the ultimate impact of the COVID 19 pandemic on
operations and results, changes in production and
costs guidance, national and local governments,
legislation, taxation, controls, regulations and
political or economic developments in Canada and
Mexico; financial risks due to precious metals prices,
operating or technical difficulties in mineral
exploration, development and mining activities; risks
and hazards of mineral exploration, development and
mining; the speculative nature of mineral exploration
and development, risks in obtaining necessary licenses
and permits, and
challenges to the Companys title to properties; as
well as those factors described in the section risk
factors contained in the Companys most recent form
40F/Annual Information Form filed with the S.E.C. and
Canadian securities regulatory
authorities.
Forward-looking statements are based on assumptions
management believes to be reasonable, including but
not limited
to: the continued operation of the Companys mining
operations, no material adverse change in the market
price of commodities, mining operations will operate
and the mining products will be completed in
accordance with managements expectations and achieve
their stated production outcomes, and such other
assumptions and factors as set out herein. Although
the Company has attempted to identify important
factors that could cause actual results to differ
materially from those contained in forward-looking
statements or information, there may be other factors
that cause results to be materially different from
those anticipated, described, estimated,
assessed or intended. There can be no assurance that
any forward-looking statements or information will
prove to be accurate as actual results and future
events could differ materially from those anticipated
in such statements or information. Accordingly,
readers should not place undue reliance on
forward-looking statements or
information.
ENDEAVOUR SILVER CORP.
COMPARATIVE HIGHLIGHTS
Q1 2021 Highlights Three Months Ended Ma
rch
31
2021 2020 %
Chang
e
Production
Silver ounces produced 1,048,1 857,659 22%
00
Gold ounces produced 11,109 8,476 31%
Payable silver ounces produce1,036,7 849,791 22%
d 10
Payable gold ounces produced 10,894 8,320 31%
Silver equivalent ounces prod1,936,8 1,535,7 26%
uced 20 39
Cash costs per silver ounce 7.86 7.85 0%
Total production costs per 15.41 16.35 (6%)
ounce
All-in sustaining costs per 19.94 18.38 8%
ounce
Processed tonnes 209,453 199,327 5%
Direct operating costs per 112.36 96.90 16%
tonne
Direct costs per tonne 126.23 101.63 24%
Silver co-product cash costs 15.16 11.51 32%
Gold co-product cash costs 950 1,226 (22%)
Financial
Revenue ($ millions) 34.5 21.9 58%
Silver ounces sold 623,379 665,500 (6%)
Gold ounces sold 10,663 7,454 43%
Realized silver price per 27.17 15.33 77%
ounce
Realized gold price per ounce1,703 1,633 4%
Net earnings (loss) ($ millio12.2 (15.9) 177%
ns
)
Adjusted net earnings (loss) (4.7) (15.9) 70%
($
millions)
Mine operating earnings 5.7 (2.9) 296%
(loss) ($
millions)
Mine operating cash flow ($ 13.3 4.3 211%
millions)
Operating cash flow before 5.2 (5.0) 205%
working capital
changes
Earnings before ITDA ($ milli24.0 (6.7) 457%
ons
)
Working capital ($ millions) 113.1 27.2 316%
Shareholders
Earnings (loss) per share - 0.08 (0.11) 173%
basic
Adjusted earnings (loss) per (0.03) (0.11) 74%
share -
basic
Operating cash flow before 0.03 (0.04) 194%
working capital changes per
share
Weighted average shares 159,670 141,810 13%
outstanding ,842 ,208The above
highlights are key measures used by
management, however they should not be the sole
measures used in determining the performance of the
Companys operations. The related definitions and
reconciliations are contained in the Management
Discussion and
Analysis.
ENDEAVOUR SILVER CORP.
CONDENSED CONS OLIDATED INTERIM STATEMENT OF CASH
FLOWS
(expressed in thousands in U.S. dollars)
Three months e
nded
March March
31, 31,
2021 2020
Operating activities
Net earnings (loss) for the period $12,24 $(15,9)
9 26
Items not affecting cash:
Share-based compensation 1,165 745
Depreciation, depletion and amortiz 7,624 6,268
ation
Impairment reversal of non-current (16,7) -
assets 91
Deferred income tax expense 3,127 1,864
Unrealized foreign exchange loss 90 654
(gain)
Finance costs 291 311
Write down of inventory to net - 1,042
realizable
value
Loss on asset disposal 34 78
Loss (gain) on other investments (2,54) (7 )
6
Net changes in non-cash working (9,16) 2,622
capital 6
Cash from (used in) operating (3,92) (2,34)
activities 3 9
Investing activities
Proceeds on disposal of property, p 556 27
lant
and equipment
Mineral property, plant and (7,27) (5,51)
equipment 0 2
expenditures
Purchase of marketable securities (832 ) -
Proceeds from disposal of 4,383 -
marketable
securities
Redemption of (investment in) (20 ) -
non-current
deposits
Cash from (used in) investing (3,18) (5,48)
activities 3 5
Financing activities
Repayment of loans payable (969 ) (772 )
Repayment of lease liabilities (42 ) (43 )
Interest paid (193 ) (218 )
Public equity offerings 30,10 1,485
0
Exercise of options 3,798 12
Share issuance costs (602 ) (74 )
Cash from (used in) financing 32,09 390
activities 2
Effect of exchange rate change on (80 ) (934 )
cash and cash
equivalents
Increase (decrease) in cash and 24,98 (7,44)
cash 6 4
equivalents
Cash and cash equivalents, 61,08 23,36
beginning of the 3 8
period
Cash and cash equivalents, end of $85,98 $14,99
the 9 0This
period statement should be read in conjunction with
the condensed consolidated interim
financial
statements for the period ended March 31, 2021 and the
related notes contained
therein.
ENDEAVOUR SILVER CORP.
CONDENSED CONS OLIDATED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
(LOSS)
(expressed in thousands in U.S. dollars, except
for share and per share
amounts)
Three months ended
March 31, March 31,
2021 2020
Revenue $ 34,466 $ 21,927
Cost of sales:
Direct production costs 18,728 16,800
Royalties 2,460 857
Share-based payments 118 91
Depreciation, depletion and am 7,496 6,023
ortization
Write down of inventory to - 1,042
net realizable
value
28,802 24,813
Mine operating earnings (loss) 5,664 (2,886)
Expenses:
Exploration and evaluation 4,130 2,382
General and administrative 3,523 2,005
Care and maintenance costs 521 1,345
Impairment reversal of (16,79) -
non-current 1
assets
(8,617) 5,732
Operating earnings (loss) 14,281 (8,618)
Finance costs 291 310
Other income (expense):
Foreign exchange (694 ) (4,917)
Investment and other 2,751 49
2,057 (4,868)
Earnings (loss) before income 16,047 (13,79)
taxes 6
Income tax expense (recovery):
Current income tax expense 671 266
Deferred income tax expense 3,127 1,864
(recovery)
3,798 2,130
Net earnings (loss) and 12,249 (15,92)
comprehensive earnings 6
(loss) for the
period
Basic earnings (loss) per $ 0.08 $ (0.11 )
share based on net earnings
(loss)
Diluted earnings (loss) per $ 0.07 $ (0.11 )
share based on net earnings
(loss)
Basic weighted average number 159,67 141,81
of shares 0,842 0,208
outstanding
Diluted weighted average 163,74 141,81
number of shares 2,420 0,208This
outstanding statement should be read in conjunction
with the condensed consolidated interim financial
statements for the period ended March 31, 2021 and the
related notes contained
therein.
ENDEAVOUR SILVER CORP.
CONDENSED CONS OLIDATED INTERIM STATEMENT OF
FINANCIAL
POSITION
(expressed in thousands in U.S. dollars, except
for share and per share
amounts)
March Decembe
31, r
31,
2021 2020
ASSETS
Current assets
Cash and cash equivalents $ 85,9 $ 61,0
89 83
Other investments 3,71 4,76
2 7
Accounts and other receivable 16,9 20,1
59 44
Income tax receivable 27 52
Inventories 21,7 16,6
74 40
Assets held for sale 17,5 -
03
Prepaid expenses 3,20 2,28
8 4
Total current assets 149, 104,
172 970
Deposits 611 591
Deferred financing costs - 294
Income tax recoverable 3,57 -
0
IVA receivable 2,67 2,67
2 6
Deferred income tax asset 9,70 12,7
5 53
Intangible assets 370 492
Right-of-use leased assets 725 861
Mineral properties, plant and 86,5 87,9
equipment 59 55
Total assets $ 253, $ 210,
384 592
LIABILITIES AND SHAREHOLDERS''
EQUITY
Current liabilities
Accounts payable and accrued $ 25,8 $ 27,7
liabilities 67 64
Income taxes payable 2,00 3,03
5 8
Loans payable 3,43 3,57
3 8
Lease liabilities 174 173
Liabilities held for sale 4,61 -
5
Total current liabilities 36,0 34,5
94 53
Loans payable 5,27 6,09
0 4
Lease liabilities 886 921
Provision for reclamation and 4,35 8,87
rehabilitation 7 6
Deferred income tax liability 1,15 1,07
9 7
Total liabilities 47,7 51,5
66 21
Shareholders'' equity
Common shares, unlimited shares
authorized, no par value,
issued
and outstanding 164,706,112 554, 517,
shares (Dec 31, 2020 - 463 711
157,924,708
shares)
Contributed surplus 7,20 9,66
8 2
Retained earnings (deficit) (356) (368)
,053 ,302
Total shareholders'' equity 205, 159,
618 071
Total liabilities and $ 253, $ 210,
shareholders'' 384 592This
equity statement should be read in conjunction with
the condensed consolidated interim financial
statements for the period ended March 31, 2021 and the
related notes contained
therein.
https://www.irw-press.at/prcom/images/messages/2021/58333/11052021_EN_Endeavour.001.jpeg
Source: Endeavour Silver Corporation
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Datum: 11.05.2021 - 08:20 Uhr
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