Endeavour Silver widens third-quarter loss, to miss guidance
Precious metals miner Endeavour Silver, which operates four silver/gold mines in Mexico, on Tuesday reported a third-quarter loss of $68-million, compared with a loss of $5.5-million, as its generated lower revenue on weaker production results.
Silver-equivalent production fell 30% year-on-year to 1.73-million ounces in the September quarter, with silver production down 34% to 948 547 oz and gold production down to 9 716 oz.
Revenue decreased by 24% to $28.6-million, the owner of the Guanaceví, Bolañitos, El Cubo and El Compas mines reported.
All-in sustaining costs (AISC) rose by 33% year-on-year to $21.53/oz, but Endeavour Silver pointed out that the costs were lower than in the second quarter of the year.
“Production in the third quarter 2019 was down year-on-year, but we are seeing positive traction from all the operational changes we made in the past two quarters. Consolidated cash costs per ounce, direct costs per tonne and net losses were all lower quarter-on-quarter thanks to the operational improvements,” said CEO Bradford Cooke.
“AISC remained high, but would also have been lower if not for the purchase and lease of new mobile mining equipment for Guanacevi and Bolanitos. The most progress was made at Guanacevi where cash costs decreased 26%, AISC costs decreased 16% and direct production costs decreased 22% compared to the second quarter of 2019.”
Cooke said that he expected the improving trend to accelerate in the fourth quarter, with higher production and lower costs as productivity continued to climb at Guanacevi and Bolanitos.
However, despite recent progress in the operating performance of the mines, Endeavour Silver did not expect to meet its 2019 production and cost guidance and said it could not provide a guidance for the balance of the year.
The TSX- and NYSE-listed miner's share price fell 7% on Tuesday to C$3.07 apiece in Toronto and $2.34 a share in New York.
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