Endeavour Silver Sees Initial Capital Costs Jump 22% At Terronera
Endeavour Silver (TSX: EDR) has seen expected costing at its Terronera project under development rise dramatically. The firm this morning provided a progress update to the project, indicating that expected costing has risen over 22%.
Total direct and indirect costing at the project has risen from $271 million to $332 million, a jump of $61 million. The increase was split between direct cost increases of $31.8 million and indirect cost increases of $29.2 million, which was partially offset by a decrease in contingencies.
On the direct side of things, mining costs have increased by $16 million, which is largely attributed to the delays in commissioning the lower platform facilities, as well as increased waste rock disposal costs. The processing plant is also over budget by $13.2 million, which is blamed on additional blasting required for lower platform excavation, extra work for expediting steel fabrication, and extra materials for the tailings facility, among other items.
Indirect costs meanwhile increased due to additional engineering, construction management, and the addition of several support buildings that were not originally planned, as well as a result of a larger workforce required than originally anticipated.
Development at Terronera is said to now be 89.4% complete, with Endeavour currently targeting early in Q2 for full system commissioning to begin on site. Operational guidance is slated to be released as construction approaches wet commissioning.
“Dry commissioning is advancing well on the Upper Platform and we’re completing final installations and the last of the punch list items. Our team’s efforts are concentrated on timely completion of the Lower Platform where structural steel is advancing to install the tailing filters. We’re focused on maintaining our construction schedule and momentum to have Terronera ready for full commissioning in early Q2 2025,” commented Don Gray, COO of Endeavour Silver.
Endeavour Silver last traded at $5.85 on the TSX.
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