Endeavour Silver Announces Q1 2023 Financial Results; Earnings Call at 10AM PDT (1PM EDT) Today
05/10/2023 - 06:50 AM
VANCOUVER, British Columbia, May 10, 2023 (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 months ended March 31, 2023. All dollar amounts are in US dollars (US$).
“We are pleased to report a solid start this year with consolidated production expected to meet full year guidance,” stated Dan Dickson, CEO of Endeavour Silver. “Guanacevi continues to perform well, generating strong operating cash flow which we are reinvesting in the business. Industry-wide inflation pressures continue to persist, which combined with a strengthening Mexican Peso, are increasing our operating costs. We are working to manage our inputs in order to offset these cost pressures as we pursue productivity and efficiency initiatives.
Added Mr. Dickson, “On April 18, 2023, we reached a key milestone with the announcement of the project financing commitment of $120 million and a subsequent formal construction decision at Terronera. The successful execution of this underground mine development and mill is integral to achieving our growth goal to nearly double our production by 2025 and transform our cost profile. With a seasoned team of development personnel, we are moving forward confidently and look forward to establishing an exciting future for our stakeholders.”
Q1 2023 Highlights
Production Tracking Towards Upper Range of Guidance: 1,623,545 ounces (oz) of silver and 9,342 oz of gold for 2.4 million oz silver equivalent (AgEq)( 1) .Revenue : $55.5 million from the sale of 1,667,408 oz of silver and 9,126 oz of gold at average realized prices of $23.16 per oz silver and $1,917 per oz gold.Reduced Earnings Due to Lower Realized Prices : $6.5 million , or $0.03 per share, down 45% from Q1 2022. Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)( 2) of $19.4 million , a decrease of 24% from Q1 2022.Cash Flow : $12.5 million in operating cash flow before working capital changes( 2) , a decrease of 39% from Q1 2022. Mine operating cash flow before taxes( 2) also decreased to $22.4 million .Higher Costs Due to Strengthened Peso and Industry-Wide Inflation: Cash costs( 2) of $11.12 per oz payable silver and all-in sustaining costs( 2 ) of $20.16 per oz payable silver, net of gold credits. Cash costs( 2) were slightly above guidance due to a strengthening of the Mexican Peso and increased labour, power and consumables costs. Management continues to work diligently to reduce costs and improve efficiencies where possible.Healthy Balance Sheet: Cash position of $61.6 million and working capital( 2) of $92.8 million . Cash decreased as funds were spent on development activities at Terronera.Subsequent to Q1 2023
Company Secures Project Financing and Updates Development Plans for Terronera : Societe Generale and ING Bank N.V. have entered into a commitment letter for a Senior Secured Debt Facility of $120 million . The Company has optimized the project’s operating flexibility from the NI 43-101 Feasibility Study of the Terronera Project filed in 2021. The Revised scenario approves the construction of a 2,000 tpd process plant with an initial capital expenditure of $230 million (see news release dated April 18, 2023 ).Terronera De-risked with over $58 million Invested to date into Development : The Board of Directors has approved the construction of an underground mine and mill at Terronera. The Company has made significant progress on development activities, with long-lead item procurement well advanced and a seasoned team of development personnel established on the ground (see news release dated April 20, 2023 ).Financial Overview
Q1 2023 Highlights Three Months Ended March 31 2023 2022 % Change Production Silver ounces produced 1,623,545 1,314,955 23 % Gold ounces produced 9,342 8,695 7 % Payable silver ounces produced 1,608,212 1,303,540 23 % Payable gold ounces produced 9,184 8,549 7 % Silver equivalent ounces produced(1) 2,370,905 2,010,555 18 % Cash costs per silver ounce(2)(3) 11.12 10.21 9 % Total production costs per ounce(2)(4) 15.43 15.13 2 % All-in sustaining costs per ounce(2)(5) 20.16 20.90 (4 %) Processed tonnes 211,073 206,147 2 % Direct operating costs per tonne(2)(6) 132.11 122.86 8 % Direct costs per tonne(2)(6) 169.49 148.53 14 % Silver co-product cash costs(7) 14.93 15.18 (2 %) Gold co-product cash costs(7) 1,236 1,226 1 % Financial Revenue ($ millions) 55.5 57.7 (4 %) Silver ounces sold 1,667,408 1,717,768 (3 %) Gold ounces sold 9,126 8,381 9 % Realized silver price per ounce 23.16 24.38 (5 %) Realized gold price per ounce 1,917 1,970 (3 %) Net earnings (loss) ($ millions) 6.5 11.7 (45 %) Adjusted net earnings (loss)(11) ($ millions) 9.6 17.0 44 % Mine operating earnings ($ millions) 16.0 20.3 (21 %) Mine operating cash flow before taxes ($ millions)(8) 22.4 26.7 (16 %) Operating cash flow before working capital changes(9) 12.5 20.6 (39 %) EBITDA(10) ($ millions) 19.4 25.6 (24 %) Working capital(12) ($ millions) 92.8 168.4 (45 %) Shareholders Earnings (loss) per share – basic ($) 0.03 0.07 (57 %) Adjusted earnings (loss) per share – basic ($)(11) 0.05 0.10 49 % Operating cash flow before working capital changes per share(9) 0.07 0.12 (45 %) Weighted average shares outstanding 190,274,768 171,557,220 11 %
( 1 ) Silver equivalent (AgEq) is calculated using an 80:1 silver:gold ratio.
(2) These are non-IFRS financial measures and ratios. Further details on these non-IFRS financial measures and ratios are provided at the end of this press release and in the MD&A accompanying the Company’s financial statements, which can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov .
For the three months ended March 31, 2023, revenue, net of $0.6 million of smelting and refining costs, decreased by 4% to $55.5 million (Q1 2022: $57.7 million ).
Gross sales of $56.1 million in Q1 2023 represented a 4% decrease over the $58.4 million in Q1 2022. Silver oz sold decreased by 3% , due to a decrease in finished goods silver ounces available for sale as at December 31, 2022 compared to December 31, 2021, offset by increased silver production. There was a 5% decrease in the realized silver price, resulting in an 8% decrease in proceeds from silver sales. Gold oz sold increased by 9% with a 3% decrease in the realized gold price, resulting in a 6% increase in proceeds from gold sales. During the period, the Company sold 1,667,408 oz silver and 9,126 oz gold for realized prices of $23.16 and $1,917 per oz, respectively, compared to Q1 2022 sales of 1,717,768 oz silver and 8,381 oz gold for realized prices of $24.38 and $1,970 per oz, respectively. In Q1 2023, London spot prices for silver and gold averaged $22.55 and $1,890, respectively.
The Company slightly decreased its finished goods silver inventory and slightly increased its finished goods gold inventory to 471,069 oz and 1,766 oz, respectively, at March 31, 2023 compared to 530,250 oz silver and 1,707 oz gold at December 31, 2022. The cost allocated to these finished goods was $7.4 million at March 31, 2023 compared to $6.1 million at December 31, 2022. At March 31, 2023, the finished goods inventory fair market value was $14.7 million , compared to $15.8 million at December 31, 2022.
After cost of sales of $39.54 million (Q1 2022 - $37.4 million ), an increase of 6% , mine operating earnings were $16.0 million (Q1 2022 - $20.3 million ). The cost of sales in Q1, 2023 was impacted by a strengthened Mexican peso, higher labour, power and consumables costs as the Company, as well as the industry, has experienced significant inflationary pressures. The Company also recognized increased royalty costs during Q1, 2023 compared to the prior period as a higher percentage of the production at Guanacevi has come from the El Curso and El Porvenir concessions, which are subject to royalties.
The Company had operating earnings of $6.9 million (Q1 2022: $12.6 million ) after exploration and evaluation costs of $4.2 million (Q1 2022: $3.2 million ) and general and administrative costs of $4.9 million (Q1 2022: $4.3 million . Exploration and evaluation costs increased primarily to additional spending on the recently acquired Pitarrilla project and general and administrative costs increased primarily due to investment in a new ERP system.
Earnings before income taxes were $12.5 million (Q1 2022: $18.9 million ) after finance costs of $0.4 million (Q1 2022: $0.3 million ), a foreign exchange gain of $1.9 million (Q1 2022: $0.8 million ), and investment and other income of $4.0 million (Q1 2022: $5.8 million ). The increase in the foreign exchange gain is due to the strengthening of the Mexican peso which increases the value of peso denominated working capital items. The investment and other income during Q1 2023 primarily resulted from an unrealized gain on marketable securities and warrants of $3.1 million (Q1 2022: $5.4 million ).
The Company realized net earnings for the period of $6.5 million (Q1 2022: $11.7 million ) after an income tax expense of $6.1 million (Q1 2022: $7.2 million ). Current income tax expense increased to $4.4 million (Q1 2022 - $1.0 million ) and deferred income taxes decreased to $1.7 million (Q1, 2022: $6.2 million ).During 2022, the changes in current and deferred taxes were driven primarily by the utilization of loss carryforwards at Guanacevi and during 2023 there were no further loss carryforwards available to offset against current income tax and changes in deferred income taxes was primarily derived from changes in temporary timing differences between deductions for accounting versus deductions for tax.
Direct operating costs( 2) on a per tonne basis increased to $132.11, up 8% compared with Q1 2022 due to both a strengthening of the Mexican peso and higher operating costs at both Guanaceví and Bolanitos from increased inflationary pressure during 2022 and Q1 2023. As the Mexican peso strengthens, the Company’s Mexican peso denominated costs are increased in US dollar terms. Guanaceví and Bolañitos have seen increased labour, power and consumable costs.
Consolidated cash costs per oz, net of by-product credits, increased to $11.12 primarily due to the higher direct costs per tonne slightly offset by a higher gold credit driven by higher gold production compared to Q1 2022. AISC decreased by 4% on a per oz basis compared to Q1 2022 as a result of costs being allocated over increased ounces produced which offset the increased costs.
The complete financial statements and management’s discussion & analysis can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov . All shareholders can receive a hard copy of the Company’s complete audited financial statements free of charge upon request. To receive this material in hard copy, please contact Galina Meleger, VP of Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or by email at gmeleger@edrsilver.com
Conference Call
A conference call to discuss the Company’s Q1 2023 financial results will be held today at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below.
Date & Time: Wednesday, May 10, 2023 at 10:00 a.m. PT / 1:00 p.m. ET Telephone: Toll-free in Canada and the US +1-800-319-4610 Replay: A replay of the conference call will be available by dialing (toll-free) www.edrsilver.com
About Endeavour Silver – Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing construction of the Terronera project and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States 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 gmeleger@edrsilver.com www.edrsilver.com
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Endnotes
1 Silver equivalent ( AgEq )
AgEq is calculated using an 80:1 silver:gold ratio.
2 Non-IFRS and Other Financial Measures and R atios
Certain non-IFRS and other non-financial measures and ratios are included in this press release, including cash costs per silver ounce, total production costs per ounce, all-in costs per ounce, all-in sustaining cost (“AISC”) per ounce, direct operating costs per tonne, direct costs per tonne, silver co-product cash costs, gold co-product cash costs, realized silver price per ounce, realized gold price per ounce, adjusted net earnings (loss) adjusted net earnings (loss) per share, mine operating cash flow before taxes, working capital, operating cash flow before working capital adjustments, operating cash flow before working capital changes per share, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA per share and sustaining and growth capital.
Please see the March 31, 2023 MD&A for explanations and discussion of these non-IFRS and other non-financial measures and ratios. The Company believes that these measures and ratios, in addition to conventional measures and ratios prepared in accordance with International Financial Reporting Standards (“IFRS”), provide management and investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS and other non-financial measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures or ratios of performance prepared in accordance with IFRS. These measures and ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Certain additional disclosures for these non-IFRS measures have been incorporated by reference and can be found in the section “Non-IFRS Measures” in the March 31, 2023 MD&A available on SEDAR at www.sedar.com .
Reconciliation of Working Capital
Expressed in thousands US dollars As at March 31, 2023 As at December 31, 2022 Current assets $138,862 $146,333 Current liabilities 46,049 52,749 Working capital $92,813 $93,584
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands US dollars Three Months Ended March 31 (except for share numbers and per share amounts) 2023 2022 Net earnings (loss) for the period per financial statements $6,456 $11,662 Change in fair value of investments 3,097 5,357 Adjusted net earnings (loss) $9,553 $17,019 Basic weighted average share outstanding 190,274,768 171,557,220 Adjusted net earnings (loss) per share $0.05 $0.10 Reconciliation of Mine Operating Cash Flow Before Taxes Expressed in thousands US dollars Three Months Ended March 31 2023 2022 Mine operating earnings per financial statements $16,025 $20,269 Share-based compensation 132 127 Amortization and depletion 6,253 6,306 Mine operating cash flow before taxes $22,410 $26,702 Reconciliation of Operating Cash Flow Before Working Capital Changes and Operating Cash Flow Before Working Capital Changes Per Share Expressed in thousands US dollars Three Months Ended March 31 (except for per share amounts) 2023 2022 Cash from (used in) operating activities per financial statements ($401) $21,733 Net changes in non-cash working capital per financial statements (12,902) 1,114 Operating cash flow before working capital changes $12,501 $20,619 Basic weighted average shares outstanding 190,274,768 171,557,220 Operating cash flow before working capital changes per share $0.07 $0.12 Reconciliation of EBITDA and Adjusted EBITDA Expressed in thousands US dollars Three Months Ended March 31 2023 2022 Net earnings (loss) for the period per financial statements $6,456 $11,662 Depreciation and depletion – cost of sales 6,253 6,306 Depreciation and depletion – exploration 278 107 Depreciation and depletion – general & administration 62 48 Depreciation and depletion – care & maintenance - 30 Finance costs 259 177 Current income tax expense 4,445 1,015 Deferred income tax expense 1,676 6,222 EBITDA $19,429 $25,567 Share based compensation 1,625 1,527 Change in fair value of investments 3,097 5,357 Adjusted EBITDA $24,151 $32,451 Basic weighted average shares outstanding 190,274,768 171,557,220 Adjusted EBITDA per share $0.13 $0.19
Reconciliation of Cash Cost Per Silver Ounce, Total Production Costs Per Ounce, Direct Operating Costs Per Tonne, Direct Costs Per Tonne
Expressed in thousands US dollars Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Guanaceví Bolañitos Total Guanaceví Bolañitos Total Direct production costs per financial statements 18,145 8,371 26,516 17,884 8,837 26,721 Smelting and refining costs included in net revenue - 656 656 - 654 654 Opening finished goods (4,953) (245) (5,198) (10,093) (2,857) (12,950) Closing finished goods 4,848 1,063 5,911 7,908 2,995 10,903 Direct operating costs 18,040 9,845 27,885 15,699 9,629 25,328 Royalties 6,471 64 6,535 4,234 83 4,317 Special mining duty (1) 1,270 85 1,355 731 244 975 Direct costs 25,781 9,994 35,775 20,664 9,956 30,620 By-product gold sales (8,433) (9,064) (17,497) (5,022) (11,488) (16,510) Opening gold inventory fair market value 2,740 354 3,094 1,900 4,784 6,684 Closing gold inventory fair market value (2,500) (995) (3,495) (3,724) (3,763) (7,487) Cash costs net of by-product 17,588 289 17,877 13,818 (511) 13,307 Amortization and depletion 3,474 2,779 6,253 3,910 2,396 6,306 Share-based compensation 66 66 132 63 64 127 Opening finished goods depreciation and depletion (862) (60) (922) (1,965) (635) (2,600) Closing finished goods depreciation and depletion 1,115 355 1,470 1,689 897 2,586 Total production costs $21,381 $3,429 $24,810 $17,515 $2,211 $19,726 Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Guanaceví Bolañitos Total Guanaceví Bolañitos Total Throughput tonnes 102,375 108,698 211,073 101,253 104,894 206,147 Payable silver ounces 1,435,604 172,608 1,608,212 1,130,448 173,092 1,303,540 Cash costs per silver ounce $12.25 $1.67 $11.12 $12.22 ($2.95) $10.21 Total production costs per ounce $14.89 $19.87 $15.43 $15.49 $12.77 $15.13 Direct operating costs per tonne $176.21 $90.57 $132.11 $155.05 $91.80 $122.86 Direct costs per tonne $251.83 $91.94 $169.49 $204.08 $94.91 $148.53 Expressed in thousands US dollars March 31, 2023 March 31, 2022 Guanaceví Bolañitos Total Guanaceví Bolañitos Total Closing finished goods 4,848 1,063 5,911 7,908 2,995 10,903 Closing finished goods depletion 1,115 355 1,470 1,689 897 2,586 Finished goods inventory $5,963 $1,418 $7,381 $9,597 $3,892 $13,489
Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Guanaceví Bolañitos Total Guanaceví Bolañitos Total Cash costs net of by-product $17,588 $289 $17,877 $13,818 ($511) $13,307 Operations share-based compensation 66 66 132 63 64 127 Corporate general and administrative 2,616 878 3,494 2,067 876 2,943 Corporate share-based compensation 1,019 342 1,361 917 389 1,306 Reclamation - amortization/accretion 79 62 141 65 53 118 Mine site expensed exploration 379 313 692 352 250 602 Intangible payments - - - 29 12 41 Equipment loan payments 245 487 732 245 489 734 Capital expenditures sustaining 5,690 2,301 7,991 5,646 2,426 8,072 All-In-Sustaining Costs $27,682 $4,738 $32,420 $23,202 $4,048 $27,250 Growth exploration and evaluation 3,063 2,413 Growth capital expenditures 12,726 4,925 All-In-Costs $48,209 $34,588 Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Guanaceví Bolañitos Total Guanaceví Bolañitos Total Throughput tonnes 102,375 108,698 211,073 101,253 104,894 206,147 Payable silver ounces 1,435,604 172,608 1,608,212 1,130,448 173,092 1,303,540 Silver equivalent production (ounces) 1,774,964 595,941 2,370,905 1,412,010 598,545 2,010,555 Sustaining cost per ounce $19.28 $27.45 $20.16 $20.52 $23.39 $20.90 All-In-costs per ounce $29.98 $26.53
Expressed in thousands US dollars Three Months Ended March 31 2023 2022 Mine site expensed exploration $692 $602 Growth exploration and evaluation 3,063 2,413 Total exploration and evaluation 3,755 3,015 Exploration depreciation and depletion 278 107 Exploration share-based compensation 131 94 Exploration and evaluation expense $4,164 $3,216
Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands US dollars Three Months Ended March 31 2023 2022 Capital expenditures sustaining $7,991 $8,072 Growth capital expenditures 12,726 4,925 Property, plant and equipment expenditures per Consolidated Statement of Cash Flows $20,717 $12,997
Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
Expressed in thousands US dollars Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Guanaceví Bolañitos Total Guanaceví Bolañitos Total Direct production costs per financial statements $18,145 $8,371 $26,516 $17,884 $8,837 $26,721 Smelting and refining costs included in net revenue - 656 656 - 654 654 Royalties 6,471 64 6,535 4,234 83 4,317 Special mining duty (1) 1,270 85 1,355 731 244 975 Opening finished goods (4,953) (245) (5,198) (10,093) (2,857) (12,950) Closing finished goods 4,848 1,063 5,911 7,908 2,995 10,903 Direct costs $25,781 $9,994 $35,775 $20,664 $9,956 $30,620 Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Guanaceví Bolañitos Total Guanaceví Bolañitos Total Silver production (ounces) 1,439,924 183,621 1,623,545 1,133,850 181,105 1,314,955 Average realized silver price ($) 23.16 23.16 23.16 24.38 24.38 24.38 Silver value ($) 33,351,084 4,252,974 37,604,058 27,643,263 4,415,340 32,058,603 Gold production (ounces) 4,188 5,154 9,342 3,477 5,218 8,695 Average realized gold price ($) 1,917 1,917 1,917 1,970 1,970 1,970 Gold value ($) 8,029,524 9,881,606 17,911,130 6,849,690 10,279,460 17,129,150 Total metal value ($) 41,380,608 14,134,580 55,515,189 34,492,953 14,694,800 49,187,753 Pro-rated silver costs (%) 81% 30% 68% 80% 30% 65% Pro-rated gold costs (%) 19% 70% 32% 20% 70% 35% Pro-rated silver costs ($) 20,778 3,007 24,233 16,560 2,991 19,957 Pro-rated gold costs ($) 5,003 6,987 11,542 4,104 6,965 10,663 Silver co-product cash costs ($) 14.43 16.38 14.93 14.61 16.52 15.18 Gold co-product cash costs ($) 1,194 1,356 1,236 1,180 1,335 1,226
Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce
Expressed in thousands US dollars Three Months Ended March 31 2023 2022 Gross silver sales $38,620 $41,884 Silver ounces sold 1,667,408 1,717,768 Realized silver price per ounces $23.16 $24.38 Expressed in thousands US dollars Three Months Ended March 31 2023 2022 Gross gold sales $17,497 $16,510 Gold ounces sold 9,126 8,381 Realized gold price per ounces $1,917 $1,970
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 the development and financing of the Terronera Project, including anticipated terms and timing of the Debt Facility, estimated Project economics, Terronera’s forecasted operations, costs and expenditures, and the timing and results of various activities. 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 completion of Societe Generale’s and ING’s due diligence requirements; the final terms of the Debt Facility and the Company’s ability to successfully drawdown under the Debt Facility; the ongoing effects of inflation and supply chain issues on Project economics; 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 Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s 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 ability of the Company to successfully secure a debt facility, the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, the Project’s forecasted economics as of 2023, mining operations will operate and the mining products will be completed in accordance with management’s 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.
Appendix
ENDEAVOUR SILVER CORP.
Three months ended March 31, March 31, 2023 2022 Revenue $ 55,461 $ 57,740 Cost of sales: Direct production costs 26,516 26,721 Royalties 6,535 4,317 Share-based payments 132 127 Depreciation, depletion and amortization 6,253 6,306 39,436 37,471 Mine operating earnings 16,025 20,269 Expenses: Exploration and evaluation 4,164 3,216 General and administrative 4,917 4,297 Care and maintenance costs - 190 9,081 7,703 Operating earnings 6,944 12,566 Finance costs 400 298 Other income (expense): Foreign exchange gain (loss) 1,889 811 Gain on asset disposal 62 - Investment and other 4,082 5,820 6,033 6,631 Earnings before income taxes 12,577 18,899 Income tax expense: Current income tax expense 4,445 1,015 Deferred income tax expense 1,676 6,222 6,121 7,237 Net earnings and comprehensive earnings for the period $ 6,456 $ 11,662 Basic earnings per share based on net earnings $ 0.03 $ 0.07 Diluted earnings per share based on net earnings $ 0.03 $ 0.07 Basic weighted average number of shares outstanding 190,274,768 171,557,220 Diluted weighted average number of shares outstanding 192,295,971 174,438,202
ENDEAVOUR SILVER CORP.
March 31, December 31, 2023 2022 ASSETS Current assets Cash and cash equivalents $ 61,650 $ 83,391 Other investments 13,132 8,647 Accounts and other receivables 15,610 13,136 Income tax receivable 1,861 4,024 Inventories 23,305 19,184 Prepaid expenses 22,304 16,951 Loans receivable 1,000 1,000 Total current assets 138,862 146,333 Non-current deposits 497 565 Non-current income tax receivable 3,570 3,570 Non-current other investments - 1,388 Non-current IVA receivable 12,055 10,154 Non-current loans receivable 2,722 2,729 Right-of-use leased assets 809 806 Mineral properties, plant and equipment 243,430 233,892 Total assets $ 401,945 $ 399,437 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 35,453 $ 39,831 Income taxes payable 4,677 6,616 Loans payable 5,607 6,041 Lease liabilities 312 261 Total current liabilities 46,049 52,749 Loans payable 7,329 8,469 Lease liabilities 786 812 Provision for reclamation and rehabilitation 8,766 7,601 Deferred income tax liability 14,620 12,944 Other non-current liabilities 1,020 968 Total liabilities 78,570 83,543 Shareholders' equity Common shares, unlimited shares authorized, no par value, issued, issuable and outstanding 191,276,399 shares (Dec 31, 2022 - 189,995,563 shares) 661,029 657,866 Contributed surplus 3,973 6,115 Retained earnings (deficit) (341,627 ) (348,087 ) Total shareholders' equity 323,375 315,894 Total liabilities and shareholders' equity $ 401,945 $ 399,437
ENDEAVOUR SILVER CORP.
Three months ended March 31, March 31, 2023 2022 Operating activities Net earnings (loss) for the period $ 6,456 $ 11,662 Items not affecting cash: Share-based compensation 1,625 1,527 Depreciation, depletion and amortization 6,619 6,462 Deferred income tax expense (recovery) 1,676 6,222 Unrealized foreign exchange loss (gain) 1,095 - (136 ) Finance costs 400 298 Accretion of loans receivable (93 ) - Loss (gain) on asset disposal (62 ) (59 ) Loss (gain) on other investments (3,097 ) (5,357 ) Performance and deferred share units settled in cash (2,118 ) - Net changes in non-cash working capital (12,902 ) 1,114 Cash from (used in) operating activities (401 ) 21,733 Investing activities Proceeds on disposal of property, plant and equipment - 34 Mineral properties, plant and equipment (20,717 ) (12,997 ) Purchase of other investments - (1,371 ) Redemption of (investment in) non-current deposits 68 2 Cash used in investing activities (20,649 ) (14,332 ) Financing activities Repayment of loans payable (1,574 ) (1,083 ) Repayment of lease liabilities (63 ) (52 ) Interest paid (239 ) (177 ) Public equity offerings - 46,001 Exercise of options 1,812 130 Proceeds from loans receivable 100 - Share issuance costs - (2,797 ) Performance and deferred share units witholding tax settlement (294 ) (1,897 ) Cash from (used in) financing activities (258 ) 40,125 Effect of exchange rate change on cash and cash equivalents (433 ) 185 Increase (decrease) in cash and cash equivalents (21,308 ) 47,526 Cash and cash equivalents, beginning of the period 83,391 103,303 Cash and cash equivalents, end of the period $ 61,650 $ 151,014
