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Highlights:
- Endeavour Silver produced 874,717 silver ounces and 9,290 gold ounces in Q3 2024, totaling 1.6 million silver equivalent ounces.
- The company faces short-term challenges due to a trunnion failure at the Guanaceví mine but aims to return to full production by December.
- Year-to-date production stands at 6.0 million AgEq ounces, on track to meet 2024 guidance of 7.3 to 7.6 million AgEq ounces.
Endeavour Silver Corp. (NYSE: EXK; TSX:EDR) has reported its production figures for the third quarter of 2024, achieving a total of 874,717 silver ounces and 9,290 gold ounces. This brings the company’s silver equivalent (AgEq) production to approximately 1.6 million ounces for the quarter. Year-to-date production has reached 6.0 million AgEq ounces, positioning Endeavour to meet its updated 2024 production guidance of 7.3 to 7.6 million AgEq ounces.
However, the company is currently navigating a significant operational challenge due to a trunnion failure at its Guanaceví mine, which affected production levels in August and September. CEO Dan Dickson addressed the situation, stating, “The trunnion failure at the Guanaceví mine poses a significant short-term challenge for the Company; however, it's how we manage these difficult moments that often shapes our long-term success.” The commitment and ingenuity of the Endeavour team have been crucial in mitigating the impact of this setback on both the mine and the surrounding community.
To temporarily address the issue, modifications were made to repurpose one of the regrind mills as the primary ball mill. This adaptation allowed the plant to maintain an average throughput of 565 tonnes per day since the failure occurred. Dickson emphasized the company’s focus on returning the Guanaceví mine to full production capacity by December 2024, with estimated fabrication timing for necessary repairs currently at 15 weeks.
In contrast, production results from the Bolañitos mine have remained consistent, with throughput levels steady. Gold production has slightly exceeded expectations due to higher grades, while silver production has fallen slightly short of plan due to lower silver grades. The company anticipates similar variations in processed ore grades for the upcoming fourth quarter.
During Q3 2024, Endeavour sold 1,017,392 silver ounces and 9,412 gold ounces, bolstering its revenue streams despite production challenges. By the end of the quarter, the company held significant inventories, including 109,719 silver ounces and 401 gold ounces in bullion, as well as 8,202 silver ounces and 560 gold ounces in concentrate.
Additionally, Endeavour Silver announced drawdowns totaling $25 million from a senior secured debt facility during Q3 2024, aimed at advancing the development of the Terronera mine. A further drawdown of $35 million has been executed subsequent to the quarter-end, reflecting the company’s commitment to enhancing its mining capabilities.
