Make Kitco Your Homepage

Endeavour Silver posts net loss of $11.9M in Q2 2022, withholds 'significant' metal inventories from sale

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Endeavour Silver (TSX: EDR) announced today that in Q2 2022, the company produced 2,102,327 silver equivalent ounces, 15% above plan and up 7% from Q2 2021 (1,967,004 ounces).

The company said that strong production results have prompted management to raise the production outlook for 2022 to 7.6 – 8.0 million ounces from 6.7 – 7.6 million ounces.

However, the company added that its Q2 2022 revenue of $30.8 million was lower than a year before (Q2 2021: $47.7 million) due to withholding metal sales.

Metal inventory at quarter end totaled 1,399,356 oz silver and 2,580 oz gold of bullion inventory and 12,408 oz silver and 587 oz gold in concentrate inventory. The market value of finished goods at June 30, 2022 was $34.5 million, the company noted.

Endeavour Silver also reported net loss of $11.9 million, or $0.07 per share, compared to a net income of $6.7 million in Q2 2021.

“We have continued to outperform our mine plans, by delivering an exceptional Q2 with production 15% above plan,” stated Dan Dickson, CEO of Endeavour Silver. "This has prompted management to raise our production outlook for 2022 to 7.6 – 8.0 million silver equivalent ounces."

“During the 2nd quarter, again we made the 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. 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,” he added.

Endeavour Silver is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.

Lion One announces extension of Tuvatu mine lease to 2035

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.