Endeavour Silver(US:EXK)2025-08-13 18:00Financial Data and Key Metrics Changes - In Q2 2025, Endeavor Silver reported revenue of $85 million, a 46% increase compared to the prior year, driven by higher precious metal prices and increased production [6] - The company produced 1.5 million ounces of silver and 7,800 ounces of gold, totaling approximately 2.5 million silver equivalent ounces, representing a 13% increase compared to 2024 [5] - Mine operating cash flow before working capital changes rose by 21%, while cash costs were $15.35 per ounce of payable silver, and all-in sustaining costs were $25.26 per ounce [6] - The company reported a net loss of $20 million for the period, primarily due to operating losses during the commissioning of Terronera and increased general and administrative expenses [6][7] Business Line Data and Key Metrics Changes - The integration of the newly acquired Colpa mine is ongoing, with production expected to align with historical performance of approximately 5 million silver equivalent ounces annually [9] - The company anticipates achieving an annualized production profile of 20 million silver equivalent ounces by 2026, combining output from Terronera, Guanacevi, and Bolanitos [10] Market Data and Key Metrics Changes - As of June 30, the company's cash position was $52 million, but working capital was negative, which is by design as Terronera approaches commercial production [7] - The company is focusing on optimizing throughput and recovery rates at Terronera, with throughput averaging between 1,900 and 2,000 tons per day and silver and gold recoveries averaging 71% and 67%, respectively [7][16] Company Strategy and Development Direction - The company is focused on achieving commercial production at Terronera and integrating the Colpa acquisition, which is expected to enhance its position as a leading mid-tier silver producer [5][8] - Management is exploring additional acquisition opportunities but emphasizes the need for a breather to ensure Terronera reaches commercial production and generates positive cash flow [23][24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ramp-up of Terronera, targeting commercial production by the end of July 2025, and expects recoveries to improve as operational adjustments are made [16][29] - The company anticipates working capital to improve in the second half of the year as cash flows from Terronera are realized [44] Other Important Information - The company is advancing the Pitoria project, focusing on upgrading inferred resources and obtaining necessary permits for tailings dam and economic studies [10][78] - The integration of the Colpa mine is expected to take time, with management working on validating historical resources before providing production guidance [9][75] Q&A Session Summary Question: Update on commercial production at Terronera - Management indicated that the ramp-up is progressing well, with recoveries expected to align with historical averages as operational adjustments are made [16][29] Question: Operating costs at Colpa - Management noted that integration costs are impacting current operating costs but expects them to align with historical performance as operations stabilize [30][32] Question: Hedging strategy moving forward - The company prefers not to hedge precious metals, focusing instead on providing exposure to silver price movements for shareholders [41][42] Question: Exploration potential at Colpa - Management is reorganizing the exploration team to adopt a more systematic approach to exploration, with results expected soon [55][56] Question: Timeline for updated technical report for Colpa - An updated technical report is anticipated by mid-2026, as validation of historical resources is underway [75][76]