Endeavour Silver Closes 2024 With Strong Cash Flow But Widening Losses
Endeavour Silver (TSX: EDR) has released its financial and operating results for Q4 and full year 2024, delivering mine operating cash flow of $72.3 million—an increase from $64.4 million in 2023—despite contending with production setbacks and a net loss for the year.
In Q4 2024, revenue was $42.2 million, down from $50.5 million in the same period last year. Although the quarter saw a 33% jump in silver prices and a 29% jump in gold prices, lower overall sales volume caused by reduced production and inventory timing resulted in the topline decline.
Endeavour Silver recorded $217.6 million in annual revenue for 2024, 6% above the $205.5 million posted in 2023. This revenue uptick came primarily from stronger average realized prices: $27.39 per ounce for silver (a 15% increase from 2023) and $2,397 per ounce for gold (a 22% increase year-over-year).
The firm’s production in 2024 reached the upper end of the revised guidance of 7.3 to 7.6 million silver equivalent ounces, finishing at 7.6 million silver equivalent ounces. This performance came despite a disruption at the Guanacevi mine from August to December. The company resumed full-scale processing in December, reporting total production of 4.5 million silver ounces and 39,047 gold ounces for the year. Compared to 2023, silver output was down by 21%. However, gold production rose by 3%, providing a partial offset to the lower silver volume.
During Q4, AISC rose to $27.33, driven by a steep drop in silver ounces produced. All-in sustaining costs for the year came in at $23.88 per silver ounce, 4% above the 2023 figure of $22.93, also reflecting the reduced production volumes at Guanacevi.
A one-off $1.9 million loss on derivative contracts and a continued foreign exchange impact resulted in Q4 net earnings of $1.0 million, down from $3.0 million in the same period last year. Several factors, including derivative losses on gold and foreign exchange hedges tied to the Terronera debt facility, contributed to an overall net loss of $31.5 million in 2024, compared to a net gain of $6.1 million in 2023.
Adjusted net earnings stood at $4.8 million, up from last year’s $3.3 million. For the full year, 2024 saw adjusted net earnings of $8.0 million, significantly up from $1.7 million in 2023.
Endeavour Silver ended the year with $106.4 million in cash and $78.8 million in working capital at year-end, significantly surpassing the $42.5 million recorded a year earlier.
Endeavour Silver last traded at $5.23 on the TSX.
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