Endeavour Silver’s Mixed Year: Record Gains Amid Challenges

Endeavour Silver ((TSE:EDR)) has held its Q4 earnings call. Read on for the main highlights of the call.

The recent earnings call for Endeavour Silver was a mix of triumphs and challenges. The company celebrated a year marked by record gold prices and successful silver production, yet faced operational hurdles at the Guanacevi mine and rising costs. Despite these challenges, developments at the Terronera and Pitarrilla projects suggest a promising future for the company.

Record Gold Prices

Gold prices experienced a significant surge in 2024, rising by 27% to close the year at $2,624 per ounce. This marked the largest annual increase since 2010, providing a substantial boost to Endeavour Silver’s financial performance.

Silver Production Achievement

Endeavour Silver reported a production of 7.6 million ounces of silver equivalent in 2024, reaching the higher end of its revised guidance range. This achievement underscores the company’s operational efficiency and ability to meet its production targets.

Revenue Increase

The company saw a 6% increase in total revenue for 2024, reaching $218 million compared to the previous year. This growth was accompanied by mine operating earnings of $42 million, reflecting a strong financial performance.

Terronera Project Progress

Construction at the Terronera project is nearing completion, with 89% of the work finished. The company anticipates beginning wet commissioning in April 2025, marking a significant milestone in its development pipeline.

Pitarrilla Project Advancements

Endeavour Silver has allocated a $26 million budget to advance exploration and evaluation efforts at the Pitarrilla project. The focus is on achieving an economic assessment by the first quarter of 2026, which could unlock further growth opportunities.

Guanacevi Mine Operational Challenges

The Guanacevi mine faced a trunnion failure, leading to reduced throughput from August to December 2024. This operational challenge impacted overall production, highlighting areas for improvement in the company’s operations.

Increased Cost of Sales

The cost of sales rose by approximately 4% compared to the previous year, driven by lower economies of scale and inflationary pressures. This increase underscores the challenges faced by the company in managing operational costs.

Higher All-In Sustaining Costs

All-in sustaining costs increased by 4% to $23.88 per ounce, primarily due to lower silver production. This rise in costs highlights the financial pressures faced by the company in maintaining profitability.

Forward-Looking Guidance

Endeavour Silver’s forward-looking guidance was optimistic, with the company meeting the higher end of its revised silver production guidance. The Terronera project is on track to come online by Q2 2025, with significant progress made in its construction. Additionally, the Pitarrilla project is expected to deliver an economic assessment by Q1 2026, indicating potential future growth.

In conclusion, Endeavour Silver’s earnings call reflected a year of notable achievements and challenges. While record gold prices and successful silver production were highlights, operational issues and rising costs posed challenges. However, the company’s strategic projects at Terronera and Pitarrilla offer promising prospects for future growth.