Endeavour Silver (TSX: EDR) posted third quarter revenue of US$184.5 million, down from US$212.1 million in the second quarter, as a lower realized silver price of US$62.42 per ounce and a build in finished goods inventory weighed on sales despite higher output.
Net earnings fell to US$26.4 million, or US$0.09 per share, from US$66.5 million, or US$0.22 per share, in Q2. The gap narrows on an adjusted basis, with adjusted earnings of US$0.14 per share against US$0.15 in the prior quarter, as reported earnings absorbed a US$10.3 million derivative revaluation loss. Adjusted EBITDA came in at US$83.4 million, compared to US$90.0 million.
Cash rose to US$287.9 million from US$236.6 million, while working capital climbed to US$246.7 million. The company did not disclose a total debt figure, though it carries senior convertible notes issued in December 2025 and has a new US$25.0 million revolving credit facility that can be expanded to US$100.0 million.
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Silver production increased to 2.10 million ounces from 1.94 million ounces in Q2, while gold output slipped to 10,126 ounces from 10,474 ounces. Silver equivalent production totalled 3.61 million ounces.
Unit costs fell sharply over the quarter. Cash costs dropped to US$16.55 per ounce of silver net of by-products from US$23.52, and all-in sustaining costs declined to US$29.54 per ounce from US$36.89. Terronera posted AISC of US$21.81 per ounce, while Guanaceví remained the outlier at US$40.84.
Direct operating costs at Terronera have fallen every quarter this year, reaching US$155.52 per tonne after a new LNG plant moved power generation off diesel.
“At Terronera, we are particularly encouraged by the steady improvements in grades, recoveries and operating efficiencies achieved over the past three quarters,” said CEO Dan Dickson, adding that further gains are expected in the coming quarters.
Those gains have not been enough to hold the company’s cost outlook, however. Endeavour raised its full year direct operating cost guidance to US$170 to US$180 per tonne at Terronera and US$155 to US$165 per tonne on a consolidated basis. It pointed to a longer than expected LNG transition, the timing of contractor demobilization and a blockade that reduced throughput at the mine.
The company also lowered silver guidance at Guanaceví, setting consolidated 2026 targets of 7.8 million to 8.1 million ounces of silver and 42,000 to 43,500 ounces of gold. With 5.92 million ounces of silver and 32,340 ounces of gold produced through nine months, hitting those ranges requires a fourth quarter broadly in line with Q3.
Endeavour Silver last traded at $11.80 on the TSX.
