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Endeavour Silver says 2022 net earnings impacted by inflationary pressures and lower silver price

Kitco News

(Kitco News) - Endeavour Silver (NYSE: EXK; TSX: EDR) today announced that its 2022 production of 9.0 million silver equivalent ounces exceeded annual revised production guidance of 7.6-8.0 million silver equivalent ounces.

The company said that cash costs of $10.65 per oz payable silver were slightly above guidance due to increased labour, power, consumables and royalty costs, while all-in sustaining costs of $19.97 per oz were below cost guidance due to the increased silver oz produced.

The company added it generated “strong” net revenue of $210.2 million from the sale of 6,464,869 oz of silver and 38,868 oz of gold at average realized prices of $22.07 per oz silver and $1,814 per oz gold.

Importantly, Endeavour Silver reported net earnings of $6.2 million in 2022 (2021 – net earnings of $14.0 million), which were impacted by inflationary pressures and a reduction in the realized silver price as compared to the prior year.

“Our strong and reliable operating performance resulted in robust 2022 financial results. We are especially pleased to have delivered against our all-in sustaining cost guidance of less than $20 per ounce, despite industrywide inflationary pressures, as a result of our strong production performance. Cost control will continue to be a key focus for the operations group in 2023, as we find pockets of cost moderation and business improvements,” stated CEO Dan Dickson.

“As silver prices rebounded in Q4, we were able to take advantage of the higher prices by selling almost half of the year’s projected sales towards the end of the year, which resulted in robust cash flow to fund our growth plans,” 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 mine 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.

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