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Endeavour Silver reports bigger loss, considers El Cubo closure

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(Kitco News) - Endeavour Silver (TSE: EDR) reported a net loss of $6.8 million in 3Q compared to a $5.5 million loss during the same quarter a year ago.

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."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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