Endeavour Silver Records Revenue Decline, Net Loss After Withholding 1.6 Million Silver Equivalent Ounces For Future Sale

Endeavour Silver Corp. (TSX: EDR) shared on Tuesday its financial results for Q2 2022. The release highlighted a quarterly revenue of US$30.8 million, down from US$47.8 million in Q2 2022 and also failing to beat the estimate of US$32 million.

The decline is primarily being attributed to the company’s decision “to withhold from sale a meaningful amount of silver, due to the drop in silver price.”

“We are holding over 1.6 million silver equivalent ounces in finished goods inventory for future sale,” CEO Dan Dickson said. “Short term, the increased inventory has negatively impacted our quarterly financial metrics such as revenue, earnings, cash flow and our cash balance. Longer term, we anticipate selling the inventory at higher metal prices.”

During the quarter, the firm sold 602,894 silver ounces compared to the year-ago period when it sold 1,120,266 ounces. Realized silver price came in at US$22.72 per ounce, a 15% drop from US$26.82 per ounce price last year.

The lower revenue also led the firm to record an operating loss of US$1.3 million compared to an income of US$0.8 million last year. Further down, the quarter also ended with US$11.9 million net loss coming from an income of US$6.7 million last year. The bottomline figure translates to US$0.07 loss per share.

Adjusted net earnings also came in negative at US$4.3 million from a positive balance of US$2.4 million last year.

However, due to “an exceptional Q2 with production 15% above plan” stemming from the previously announced quarterly silver equivalent production of 2.1 million ounces, the mining company raised its production guidance to 7.6 – 8.0 million silver equivalent ounces from 6.7 – 7.6 million silver equivalent ounces. As of the end of June, the firm has already produced 4.1 million silver equivalent ounces for the first six months of the year.

All-in sustaining costs guidance for the year remains the same at US$19.00 – US$20.00 per ounce. As of H1 2022, the firm recorded AISC at an average of US$20.22 per ounce.

Endeavour Silver Corp. last traded at $4.85 on the TSX, down around 4% when the market opened.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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