Endeavour Silver reports bigger loss, considers El Cubo closure
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The company blamed lower production, which was down 24%.
Lower production increased the company's cash costs, up 30% to $11.51 per oz silver payable (net of gold credits). Its all-in sustaining costs increased 33% to $21.53 per oz silver payable (net of gold credits).
As of 11:45 a.m. ET, the stock was down 7% to $3.09.
Endeavour said its El Cubo mined lower grades than planned due to narrower vein widths and higher dilution of the V-Ascuncion ore body.
"The company is currently assessing whether more efficient mining practices can reduce dilution going forward. The 2019 drill program intersected high grade but narrow mineralization to extend the V-Asuncion orebody. Endeavour is currently updating the reserves and resources and reviewing operating alternatives, including the possible closure of El Cubo," said the company in a news release.
Endeavour said progress is being made at its Guanacevi and Bolanitos mines.
"We expect the improving trend to accelerate in Q4, 2019, with higher production and lower costs as productivity continues to climb at Guanacevi and Bolanitos."