Endeavour Silver Announces Q2 2023 Financial Results; Earnings Call at 10AM PDT (1PM EDT) Today

Endeavour Silver Corporation

VANCOUVER, British Columbia, Aug. 08, 2023 (GLOBE NEWSWIRE) --  Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce its financial and operating results for the three and six months ended June 30, 2023. All dollar amounts are in US dollars (US$).

“While we have been successful at managing the inflation trend over the last two years, costs are now outpacing our mitigation efforts. The Mexican Peso has strengthened to a seven year high against the US dollar, which is impacting costs across our operations,” stated Dan Dickson, Chief Executive Officer. “Originally, our 2023 guidance had assumed a 20:1 Mexican Peso per US dollar exchange rate; however the current rate is just under 17:1; representing a 14% increase. Our bottom line has been impacted two-fold, through both inflation and foreign exchange. Cost control will continue to be a key focus for the operations group as cost pressures are expected to continue for the remainder of the year.”

Q2 2023 Highlights

• Production Tracking In-Line with Guidance: 1,494,000 ounces (oz) of silver and 9,819 oz of gold for 2.3 million oz silver equivalent (AgEq)⁽¹⁾ totalling 4.7 million oz AgEq for the first half of the year.

• Revenue: $50.0 million from the sale of 1,299,672 oz of silver and 9,883 oz of gold at average realized prices of $24.13 per oz silver and $1,976 per oz gold.

• Cash Flow: $11.1 million in operating cash flow before working capital changes⁽²⁾ and $18.8 million in Mine operating cash flow before taxes⁽²⁾ .

• Negative Earnings due to Non-Cash Item: Net loss of $1.1 million, or $0.01 per share. Adjusted earnings of $2.1 million⁽²⁾ after adjusting for a $3.2 million change in the fair value of investments.

• Higher Costs Due to Strengthened Peso and Industry-Wide Inflation: Cash costs⁽²⁾ of $13.52 per oz payable silver and all-in sustaining costs⁽²⁾ of $22.15 per oz payable silver, net of gold credits. Costs were impacted by both inflationary pressures and a strengthened Mexican Peso. During the year, the Mexican Peso has appreciated by 14%. Cash cost and all-in-sustaining costs metrics were also impacted by lower silver grades at Guanacevi due to changes in mine sequencing. It is expected that grades will return to plan in Q3.

• Management Continues to Monitor Macroeconomic Conditions Closely: Management anticipates these macro trends will continue for the near term and therefore expects actual cost metrics to be higher than cost metrics previously provided in the Company’s 2023 guidance. Management anticipates costs to align to similar levels with H1 2023 actual cost metrics of $12.27 per oz for cash cost and $21.11 per oz for AISC.

• Healthy Balance Sheet: Cash position of $43.5 million and working capital⁽²⁾ of $78.2 million. Cash decreased as funds were spent on development activities at Terronera.

• Metal Inventory: Finished goods totaled 637,439 oz silver and 1,519 oz gold bullion inventory.

• Construction and Development Update at Terronera: The Company has made significant progress on development activities, with overall construction progress 30% complete. The project remains on schedule for initial production in Q4 2024. (see news release dated July 20, 2023)

• Terronera Debt Financing: Completion of the definitive loan documentation for the $120 million senior secured debt facility remains on track for execution in Q3 (see news release dated April 18, 2023).

• Filed At-The-Market Prospectus Supplement for up to US$60 million: Proceeds to be used for funding development of the Terronera mine, and other growth initiatives including the Pitarrilla and Parral properties as well as prospective acquisitions and general working capital purposes (see news release dated June 27, 2023)
  
  

Financial Overview (see appendix for consolidated financial statements)

Three Months Ended June 30						Q2 2023 Highlights		Six Months Ended June 30
2023		2022		% Change				2023	2022		% Change
						Production
1,494,000		1,359,207		10	%	Silver ounces produced		3,117,545	2,674,162		17	%
9,819		9,289		6	%	Gold ounces produced		19,161	17,984		7	%
1,482,255		1,346,276		10	%	Payable silver ounces produced		3,090,467	2,649,816		17	%
9,636		9,117		6	%	Payable gold ounces produced		18,820	17,666		7	%
2,279,520		2,102,327		8	%	Silver equivalent ounces produced(1)		4,650,425	4,112,882		13	%
13.52		10.08		34	%	Cash costs per silver ounce(2)(3)		12.27	10.14		21	%
18.54		14.26		30	%	Total production costs per ounce(2)(4)		16.92	14.69		15	%
22.15		19.56		13	%	All-in sustaining costs per ounce (2)(5)		21.11	20.22		4	%
228,575		201,361		14	%	Processed tonnes		439,648	407,508		8	%
138.16		132.63		4	%	Direct operating costs per tonne(2)(6)		135.26	127.69		6	%
169.59		148.11		15	%	Direct costs per tonne(2)(6)		169.54	148.32		14	%
16.96		14.12		20	%	Silver co-product cash costs(7)		15.90	14.74		8	%
1,367		1,144		19	%	Gold co-product cash costs(7)		1,303	1,169		11	%
						Financial
50.0		30.8		62	%	Revenue ($ millions)		105.5	88.5		19	%
1,299,672		602,894		116	%	Silver ounces sold		2,967,080	2,320,662		28	%
9,883		9,792		1	%	Gold ounces sold		19,009	18,173		5	%
24.27		22.72		7	%	Realized silver price per ounce		23.65	23.95		(1	%)
1,955		1,840		6	%	Realized gold price per ounce		1,937	1,900		2	%
(1.1	)	(11.9	)	91	%	Net earnings (loss) ($ millions)		5.4	(0.3	)	2170	%
2.1		(4.3	)	149	%	Adjusted net earnings (loss) (11) ($ millions)		5.5	2.0		172	%
12.5		4.5		180	%	Mine operating earnings ($ millions)		28.6	24.7		15	%
18.8		8.8		115	%	Mine operating cash flow before taxes ($ millions)(8)		41.3	35.5		16	%
11.5		3.6		207	%	Operating cash flow before working capital changes(9)		23.6	24.2		(3	%)
11.4		(4.3	)	365	%	EBITDA(10) ($ millions)		30.8	21.3		45	%
78.2		149.7		(48	%)	Working capital (12) ($ millions)		78.2	149.7		(48	%)
						Shareholders
(0.01	)	(0.07	)	86	%	Earnings (loss) per share – basic ($)		0.03	0.00		100	%
0.01		(0.02	)	146	%	Adjusted earnings (loss) per share – basic ($)(11)		0.03	0.01		151	%
0.06		0.02		190	%	Operating cash flow before working capital changes per share(9)		0.12	0.14		(10	%)
191,446,597		180,974,609		6	%	Weighted average shares outstanding		190,867,192	176,291,929		8	%

⁽¹⁾ Silver equivalent (AgEq) is calculated using an 80:1 silver:gold ratio.

⁽²⁾ These are non-IFRS financial measures and ratios. Further details on these non-IFRS financial measures and ratios are provided at the end of this press release and in the MD&A accompanying the Company’s financial statements, which can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

For the three months ended June 30, 2023, revenue, increased by 62% to $50.0 million (Q2 2022: $30.8 million).

Gross sales of $50.9 million in Q2 2023 represented a 61% increase over the $31.7 million in Q2 2022. Silver oz sold increased 116% due to both increased production and the impact of withholding of a significant amount of silver finished goods inventory during Q2, 2022.   There was a 7% increase in the realized silver price resulting in a 131% increase in proceeds from silver sales. Gold oz sold increased 1% with a 6% increase in realized gold prices resulting in a 7% increase in proceeds from gold sales. During Q2, 2023 the Company sold 1,299,672 oz silver and 9,883 oz gold, for realized prices of $24.27 and $1,955 per oz, respectively, compared to sales of 602,894 oz silver and 9,792 oz gold, for realized prices of $22.72 and $1,840 per oz, respectively, in the same period of 2022. In Q2, 2023, London spot prices averaged $24.13 and $1,976, respectively

The Company increased its finished goods to 637,439 oz silver and slightly decreased its finished goods gold inventory to 1,519 oz gold at June 30, 2023 compared to 530,250 oz silver and 1,707 oz gold at December 31, 2022. The cost allocated to these finished goods was $13.8 million as at June 30, 2023, compared to $7.4 million at March 31, 2023. At June 30, 2023, the finished goods inventory fair market value was $17.6 million, compared to $14.7 million at March 31, 2023.

After cost of sales of $37.5 million (Q2 2022 - $26.3 million), an increase of 43%, mine operating earnings were $12.5 million (Q2 2022 - $4.5 million). The increase in the cost of sales compared to the prior period was driven by significantly higher silver ounces sold in the current period, a strengthened Mexican peso and higher labour, power and consumables costs as the Company, as well as the industry, has experienced significant inflationary pressures. Additionally, the Company incurred increased royalty costs during Q2, 2023 compared to the prior period,

The Company had operating earnings of $5.4 million (Q2 2022: operating loss of $1.3 million) after exploration and evaluation costs of $4.3 million (Q2 2022: $3.8 million), general and administrative costs of $2.4 million (Q2 2022: $1.3 million) and a write off of exploration properties of $0.4 million (Q2, 2022 - $0.5 million).

Earnings before income taxes was $4.2 million (Q2 2022: loss before taxes of $8.8 million) after finance costs of $0.4 million (Q2 2022: $0.3 million), a foreign exchange gain of $1.9 million (Q2 2022: loss of $0.3 million), and investment and other expense of $2.7 million (Q2 2022: $6.9 million). The investment and other expenses during Q2 2023 primarily resulted from an unrealized loss on marketable securities and warrants of $3.2 million (Q2 2022: $7.6 million).

The Company realized a net loss for the period of $1.1 million (Q2 2022: $11.9 million) after an income tax expense of $5.2 million (Q2 2022: $3.1 million).   Current income tax expense increased to $4.4 million (Q2 2022 - $1.3 million) due to increased profitability impacting the income tax and special mining duty, while deferred income tax expense of $0.8 million is derived from changes in temporary timing differences between deductions for accounting versus deductions for tax (Q2 2022 – $1.8 million).

Direct operating costs⁽²⁾ on a per tonne basis increased to $138.16, up 4% compared with Q2 2022 due to both a strengthening of the Mexican peso and higher operating costs at both Guanacevi and Bolanitos from inflationary pressure during 2022 and the first half of 2023. As the Mexican peso strengthens, the Company’s Mexican peso denominated costs are increased in US dollar terms. Guanacevi and Bolanitos have seen increased labour, power and consumables costs.

Consolidated cash costs per oz(²), net of by-product credits, increased to $13.52 primarily driven by an increase in direct operating costs, an increase in royalties and special mining duties, partially offset by an increase in by-product gold sales and increased silver production.    AISC(²) decreased by 4% on a per oz basis compared to Q2 2022 due to the increase in cash costs and an increase in allocated corporate general and administrative expenses partially offset by increased silver production and slightly lower sustaining capital expenditures.

Management anticipates these macro trends will continue for the near term and therefore expects actual cost metrics to be higher than cost metrics previously provided in the Company’s 2023 guidance. Management anticipates costs to align to similar levels with H1 2023 actual cost metrics.

The complete financial statements and management’s discussion & analysis can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All shareholders can receive a hard copy of the Company’s complete audited financial statements free of charge upon request. To receive this material in hard copy, please contact Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or by email at gmeleger@edrsilver.com.

Conference Call

A conference call to discuss the Company’s Q2 2023 financial results will be held today at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below.

Date & Time:	Tuesday, August 8, 2023 at 10:00 a.m. PT / 1:00 p.m. ET
Telephone:	Toll-free in Canada and the US +1-800-319-4610 Local or International +1-604-638-5340 Please allow up to 10 minutes to be connected to the conference call.
Replay:	A replay of the conference call will be available by dialing (toll-free) +1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US. The replay passcode is 0279#. The replay will also be available on the Company’s website at www.edrsilver.com.

About Endeavour Silver – Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is advancing construction of the Terronera Project and exploring its portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.  Our philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp.

Contact Information
Galina Meleger,
Vice President of Investor Relations
Tel: (604)640-4804
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com

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Endnotes

¹ Silver equivalent (AgEq)

AgEq is calculated using an 80:1 silver:gold ratio.

² Non-IFRS and Other Financial Measures and Ratios

Certain non-IFRS and other non-financial measures and ratios are included in this press release, including cash costs per silver ounce, total production costs per ounce, all-in costs per ounce, all-in sustaining cost (“AISC”) per ounce, direct operating costs per tonne, direct costs per tonne, silver co-product cash costs, gold co-product cash costs, realized silver price per ounce, realized gold price per ounce, adjusted net earnings (loss) adjusted net earnings (loss) per share, mine operating cash flow before taxes, working capital, operating cash flow before working capital adjustments, operating cash flow before working capital changes per share, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA per share and sustaining and growth capital.

Please see the June 30, 2023 MD&A for explanations and discussion of these non-IFRS and other non-financial measures and ratios. The Company believes that these measures and ratios, in addition to conventional measures and ratios prepared in accordance with International Financial Reporting Standards (“IFRS”), provide management and investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS and other non-financial measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures or ratios of performance prepared in accordance with IFRS. These measures and ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Certain additional disclosures for these non-IFRS measures have been incorporated by reference and can be found in the section “Non-IFRS Measures” in the June 30, 2023 MD&A available on SEDAR at www.sedar.com.

Reconciliation of Working Capital
Expressed in thousands US dollars	As at June 30, 2023						As at December 31, 2022
Current assets				$	126,678					$	146,333
Current liabilities					48,439						52,749
Working capital				$	78,239					$	93,584
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands US dollars	Three Months Ended June 30						Six Months Ended June 30
(except for share numbers and per share amounts)		2023			2022			2023			2022
Net earnings (loss) for the period per financial statements	$	(1,054	)	$	(11,923	)	$	5,402		$	(261	)
Change in fair value of investments		3,150			7,626			53			2,269
Adjusted net earnings (loss)	$	2,096		$	(4,297	)	$	5,455		$	2,008
Basic weighted average share outstanding		191,446,597			180,974,609			190,867,192			176,291,929
Adjusted net earnings (loss) per share	$	0.01		$	(0.02	)	$	0.03		$	0.01
Reconciliation of Mine Operating Cash Flow Before Taxes
Expressed in thousands US dollars	Three Months Ended June 30						Six Months Ended June 30
		2023			2022			2023			2022
Mine operating earnings per financial statements	$	12,542		$	4,472		$	28,567		$	24,741
Share-based compensation		(294	)		113			(162	)		240
Amortization and depletion		6,596			4,175			12,849			10,481
Mine operating cash flow before taxes	$	18,844		$	8,760		$	41,254		$	35,462
Reconciliation of Operating Cash Flow Before Working Capital Changes and Operating Cash Flow Before Working Capital Changes Per Share
Expressed in thousands US dollars	Three Months Ended June 30						Six Months Ended June 30
(except for per share amounts)		2023			2022			2023			2022
Cash from (used in) operating activities per financial statements	$	4,853		$	(18,548	)	$	4,452		$	3,185
Net changes in non-cash working capital per financial statements		(6,606	)		(22,160	)		(19,508	)		(21,046	)
Operating cash flow before working capital changes	$	11,459		$	3,612		$	23,960		$	24,231
Basic weighted average shares outstanding		191,446,597			180,974,609			190,867,192			176,291,929
Operating cash flow before working capital changes per share	$	0.06		$	0.02		$	0.13		$	0.14
Reconciliation of EBITDA and Adjusted EBITDA
Expressed in thousands US dollars	Three Months Ended June 30						Six Months Ended June 30
		2023			2022			2023			2022
Net earnings (loss) for the period per financial statements	$	(1,054	)	$	(11,923	)	$	5,402		$	(261	)
Depreciation and depletion – cost of sales		6,596			4,175			12,849			10,481
Depreciation and depletion – exploration		317			98			595			205
Depreciation and depletion – general & administration		54			51			116			99
Depreciation and depletion – care & maintenance		-			30			-			60
Finance costs		229			212			488			389
Current income tax expense		4,442			1,325			8,887			2,340
Deferred income tax expense		766			1,752			2,442			7,974
EBITDA	$	11,350		$	(4,280	)	$	30,779		$	21,287
Share based compensation		416			972			2,041			2,499
Change in fair value of investments		3,150			7,626			53			2,269
Adjusted EBITDA	$	14,916		$	4,318		$	32,873		$	26,055
Basic weighted average shares outstanding		191,446,597			180,974,609			190,867,192			176,291,929
Adjusted EBITDA per share	$	0.08		$	0.02		$	0.17		$	0.15

Reconciliation of Cash Cost Per Silver Ounce, Total Production Costs Per Ounce, Direct Operating Costs Per Tonne, Direct Costs Per Tonne
Expressed in thousands US dollars	Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví			Bolañitos			Total
Direct production costs per financial statements	$	14,878		$	10,600		$	25,478		$	7,797		$	12,031		$	19,828
Smelting and refining costs included in net revenue		-			795			795			-			937			937
Opening finished goods		(4,848	)		(1,063	)		(5,911	)		(7,908	)		(2,995	)		(10,903	)
Closing finished goods		10,257			962			11,219			16,164			681			16,845
Direct operating costs		20,287			11,294			31,581			16,053			10,654			26,707
Royalties		5,679			70			5,749			2,128			66			2,194
Special mining duty (1)		1,224			209			1,433			795			127			922
Direct costs		27,190			11,573			38,763			18,976			10,847			29,823
By-product gold sales		(8,469	)		(10,853	)		(19,322	)		(5,719	)		(12,302	)		(18,021	)
Opening gold inventory fair market value		2,500			995			3,495			3,724			3,763			7,487
Closing gold inventory fair market value		(1,629	)		(1,268	)		(2,897	)		(4,662	)		(1,061	)		(5,723	)
Cash costs net of by-product		19,592			447			20,039			12,319			1,247			13,566
Amortization and depletion		3,381			3,215			6,596			940			3,235			4,175
Share-based compensation		(147	)		(147	)		(294	)		57			56			113
Opening finished goods depreciation and depletion		(1,115	)		(355	)		(1,470	)		(1,689	)		(897	)		(2,586	)
Closing finished goods depreciation and depletion		2,318			288			2,606			3,733			199			3,932
Total production costs	$	24,029		$	3,448		$	27,477		$	15,360		$	3,840		$	19,200
	Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví			Bolañitos			Total
Throughput tonnes		116,908			111,667			228,575			94,017			107,344			201,361
Payable silver ounces		1,348,366			133,889			1,482,255			1,190,568			155,708			1,346,276
Cash costs per silver ounce	$	14.53		$	3.34		$	13.52		$	10.35		$	8.01		$	10.08
Total production costs per ounce	$	17.82		$	25.75		$	18.54		$	12.90		$	24.66		$	14.26
Direct operating costs per tonne	$	173.53		$	101.14		$	138.16		$	170.75		$	99.25		$	132.63
Direct costs per tonne	$	232.58		$	103.64		$	169.59		$	201.84		$	101.05		$	148.11
Expressed in thousands US dollars	Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví			Bolañitos			Total
Direct production costs per financial statements	$	33,023		$	18,971		$	51,994		$	25,681		$	20,868		$	46,549
Smelting and refining costs included in net revenue		-			1,451			1,451			-			1,591			1,591
Opening finished goods		(4,953	)		(245	)		(5,198	)		(10,093	)		(2,857	)		(12,950	)
Closing finished goods		10,257			962			11,219			16,164			681			16,845
Direct operating costs		38,327			21,139			59,466			31,752			20,283			52,035
Royalties		12,150			134			12,284			6,362			149			6,511
Special mining duty (1)		2,494			294			2,788			1,526			371			1,897
Direct costs		52,971			21,567			74,538			39,640			20,803			60,443
By-product gold sales		(16,902	)		(19,917	)		(36,819	)		(10,741	)		(23,790	)		(34,531	)
Opening gold inventory fair market value		2,740			354			3,094			1,900			4,784			6,684
Closing gold inventory fair market value		(1,629	)		(1,268	)		(2,897	)		(4,662	)		(1,061	)		(5,723	)
Cash costs net of by-product		37,180			736			37,916			26,137			736			26,873
Amortization and depletion		6,855			5,994			12,849			4,850			5,631			10,481
Share-based compensation		(81	)		(81	)		(162	)		120			120			240
Opening finished goods depreciation and depletion		(862	)		(60	)		(922	)		(1,965	)		(635	)		(2,600	)
Closing finished goods depreciation and depletion		2,318			288			2,606			3,733			199			3,932
Total production costs	$	45,410		$	6,877		$	52,287		$	32,875		$	6,051		$	38,926
	Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví			Bolañitos			Total
Throughput tonnes		219,283			220,365			439,648			195,270			212,238			407,508
Payable silver ounces		2,783,970			306,497			3,090,467			2,321,016			328,800			2,649,816
Cash costs per silver ounce	$	13.36		$	2.40		$	12.27		$	11.26		$	2.24		$	10.14
Total production costs per ounce	$	16.31		$	22.44		$	16.92		$	14.16		$	18.40		$	14.69
Direct operating costs per tonne	$	174.78		$	95.93		$	135.26		$	162.61		$	95.57		$	127.69
Direct costs per tonne	$	241.56		$	97.87		$	169.54		$	203.00		$	98.02		$	148.32

Expressed in thousands US dollars	June 30, 2023			June 30, 2022
	Guanaceví	Bolañitos	Total	Guanaceví	Bolañitos	Total
Closing finished goods	10,257	962	11,219	16,164	681	16,845
Closing finished goods depletion	2,318	288	2,606	3,733	199	3,932
Finished goods inventory	$12,575	$1,250	$13,825	$19,897	$880	$20,777

 

Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars	Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví		Bolañitos		Total
Cash costs net of by-product	$	19,592		$	447		$	20,039		$	12,319	$	1,247	$	13,566
Operations share-based compensation		(147	)		(147	)		(294	)		57		56		113
Corporate general and administrative		1,228			477			1,705			401		155		556
Corporate share-based compensation		430			169			599			527		214		741
Reclamation - amortization/accretion		79			66			145			69		53		122
Mine site expensed exploration		327			350			677			360		308		668
Intangible payments		-			-			-			-		-		-
Equipment loan payments		245			489			734			246		488		734
Capital expenditures sustaining		6,300			2,920			9,220			7,050		2,788		9,838
All-In-Sustaining Costs	$	28,054		$	4,771		$	32,825		$	21,028	$	5,310	$	26,338
Growth exploration and evaluation								3,253							2,901
Growth capital expenditures								14,644							5,613
All-In-Costs							$	50,722						$	34,852
	Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví		Bolañitos		Total
Throughput tonnes		116,908			111,667			228,575			94,017		107,344		201,361
Payable silver ounces		1,348,366			133,889			1,482,255			1,190,568		155,708		1,346,276
Silver equivalent production (ounces)		1,663,223			616,297			2,279,520			1,488,550		613,777		2,102,327
Sustaining cost per ounce	$	20.81		$	35.64		$	22.15		$	17.66	$	34.10	$	19.56
All-In-costs per ounce							$	34.22						$	25.89
Expressed in thousands US dollars	Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví		Bolañitos		Total
Cash costs net of by-product	$	37,180		$	736		$	37,916		$	26,137	$	736	$	26,873
Operations share-based compensation		(81	)		(81	)		(162	)		120		120		240
Corporate general and administrative		3,844			1,355			5,199			2,468		1,031		3,499
Corporate share-based compensation		1,449			511			1,960			1,444		603		2,047
Reclamation - amortization/accretion		158			128			286			134		106		240
Mine site expensed exploration		706			663			1,369			712		558		1,270
Intangible payments		-			-			-			29		12		41
Equipment loan payments		490			976			1,466			491		977		1,468
Capital expenditures sustaining		11,990			5,221			17,211			12,696		5,214		17,910
All-In-Sustaining Costs	$	55,736		$	9,509		$	65,245		$	44,230	$	9,358	$	53,588
Growth exploration and evaluation								6,316							5,314
Growth capital expenditures								27,370							10,538
All-In-Costs							$	98,931						$	69,440
	Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví		Bolañitos		Total
Throughput tonnes		219,283			220,365			439,648			195,270		212,238		407,508
Payable silver ounces		2,783,970			306,497			3,090,467			2,321,016		328,800		2,649,816
Silver equivalent production (ounces)		3,438,187			1,212,238			4,650,425			2,900,560		1,212,322		4,112,882
Sustaining cost per ounce	$	20.02		$	31.03		$	21.11		$	19.06	$	28.46	$	20.22
All-In-costs per ounce							$	32.01						$	26.21

Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands US dollars	Three Months Ended June 30						Six Months Ended June 30
		2023			2022			2023			2022
Capital expenditures sustaining	$	9,220		$	9,838		$	17,211		$	17,910
Growth capital expenditures		14,644			5,613			27,370			10,538
Property, plant and equipment expenditures per Consolidated Statement of Cash Flows	$	23,864		$	15,451		$	44,581		$	28,448

Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
Expressed in thousands US dollars	Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví			Bolañitos			Total
Direct production costs per financial statements	$	14,878		$	10,600		$	25,478		$	7,797		$	12,031		$	19,828
Smelting and refining costs included in net revenue		-			795			795			-			937			937
Royalties		5,679			70			5,749			2,128			66			2,194
Special mining duty (1)		1,224			209			1,433			795			127			922
Opening finished goods		(4,848	)		(1,063	)		(5,911	)		(7,908	)		(2,995	)		(10,903	)
Closing finished goods		10,257			962			11,219			16,164			681			16,845
Direct costs	$	27,190		$	11,573		$	38,763		$	18,976		$	10,847		$	29,823
	Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví			Bolañitos			Total
Silver production (ounces)		1,352,423.00			141,577			1,494,000			1,194,150			165,057			1,359,207
Average realized silver price ($)		24.27			24.27			24.27			22.72			22.72			22.72
Silver value ($)		32,823,265			3,436,069			36,259,335			27,131,088			3,750,095			30,881,183
Gold production (ounces)		3,885			5,934			9,819			3,680			5,609			9,289
Average realized gold price ($)		1,955			1,955			1,955			1,840			1,840			1,840
Gold value ($)		7,595,464			11,601,411			19,196,875			6,771,200			10,320,560			17,091,760
Total metal value ($)		40,418,729			15,037,481			55,456,210			33,902,288			14,070,655			47,972,943
Pro-rated silver costs (%)		81	%		23	%		65	%		80	%		27	%		64	%
Pro-rated gold costs (%)		19	%		77	%		35	%		20	%		73	%		36	%
Pro-rated silver costs ($)		22,080			2,644			25,345			15,186			2,891			19,198
Pro-rated gold costs ($)		5,110			8,929			13,418			3,790			7,956			10,625
Silver co-product cash costs ($)		16.33			18.68			16.96			12.72			17.51			14.12
Gold co-product cash costs ($)		1,315			1,505			1,367			1,030			1,418			1,144
Expressed in thousands US dollars	Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví			Bolañitos			Total
Direct production costs per financial statements	$	33,023		$	18,971		$	51,994		$	25,681		$	20,868		$	46,549
Smelting and refining costs included in net revenue		-		$	1,451		$	1,451			-			1,591			1,591
Royalties		12,150			134			12,284			6,362			149			6,511
Special mining duty (1)		2,494			294			2,788			1,526			371			1,897
Opening finished goods		(4,953	)		(245	)		(5,198	)		(10,093	)		(2,857	)		(12,950	)
Finished goods NRV adjustment		-			-			-			-			-			0
Closing finished goods		10,257			962			11,219			16,164			681			16,845
Direct costs		52,971			21,567			74,538			39,640			20,803			60,443
	Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
	Guanaceví			Bolañitos			Total			Guanaceví			Bolañitos			Total
Silver production (ounces)		2,792,347			325,198			3,117,545			2,328,000			346,162			2,674,162
Average realized silver price ($)		23.65			23.65			23.65			23.95			23.95			23.95
Silver value ($)		66,031,062			7,690,007			73,721,069			55,755,600			8,290,580			64,046,180
Gold production (ounces)		8,073			11,088			19,161			7,157			10,827			17,984
Average realized gold price ($)		1,937			1,937			1,937			1,900			1,900			1,900
Gold value ($)		15,636,792			21,476,620			37,113,413			13,598,300			20,571,300			34,169,600
Total metal value ($)		81,667,854			29,166,628			110,834,482			69,353,900			28,861,880			98,215,780
Pro-rated silver costs (%)		81	%		26	%		67	%		80	%		29	%		65	%
Pro-rated gold costs (%)		19	%		74	%		33	%		20	%		71	%		35	%
Pro-rated silver costs ($)		42,829			5,686			49,579			31,868			5,976			39,415
Pro-rated gold costs ($)		10,142			15,881			24,959			7,772			14,827			21,028
Silver co-product cash costs ($)		15.34			17.49			15.90			13.69			17.26			14.74
Gold co-product cash costs ($)		1,256			1,432			1,303			1,086			1,369			1,169

 

Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce
Expressed in thousands US dollars	Three Months Ended June 30						Six Months Ended June 30
		2023			2022			2023			2022
Gross silver sales	$	31,543		$	13,698		$	70,163		$	55,582
Silver ounces sold		1,299,672			602,894			2,967,080			2,320,662
Realized silver price per ounces	$	24.27		$	22.72		$	23.65		$	23.95
Expressed in thousands US dollars	Three Months Ended June 30						Six Months Ended June 30
		2023			2022			2023			2022
Gross gold sales	$	19,322		$	18,021		$	36,819		$	34,531
Gold ounces sold		9,883			9,792			19,009			18,173
Realized gold price per ounces	$	1,955		$	1,840		$	1,937		$	1,900

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding the development and financing of the Terronera Project, including anticipated Project progress and timeline and the timing and results of various activities. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, production levels, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited to the completion of Societe Generale’s and ING Bank N.V.’s due diligence requirements in connection with the Terronera Project financing; the final terms of the financing and the Company’s ability to successfully drawdown funds thereunder; the ongoing effects of inflation and supply chain issues on Project economics; national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development; risks in obtaining necessary licenses and permits; and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the ability of the Company to successfully secure a debt facility, the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, the Project’s forecasted economics as of 2023, mining operations will operate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Appendix

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited – prepared by management)
(expressed in thousands of US dollars, except for shares and per share amounts)

				Three months ended								Six months ended
				June 30,				June 30,				June 30,				June 30,
					2023				2022				2023				2022
Revenue				$	50,071			$	30,782			$	105,532			$	88,522
Cost of sales:
Direct production costs					25,478				19,828				51,994				46,549
Royalties					5,749				2,194				12,284				6,511
Share-based payments					(294	)			113				(162	)			240
Depreciation, depletion and amortization					6,596				4,175				12,849				10,481
					37,529				26,310				76,965				63,781
Mine operating earnings					12,542				4,472				28,567				24,741
Expenses:
Exploration and evaluation					4,359				3,784				8,523				7,000
General and administrative					2,358				1,348				7,275				5,645
Care and maintenance costs					-				189				-				379
Write off of mineral properties					435				500				435				500
					7,152				5,821				16,233				13,524
Operating earnings (loss)					5,390				(1,349	)			12,334				11,217
Finance costs					374				336				774				634
Other income (expense):
Foreign exchange gain (loss)					1,855				(289	)			3,744				522
Gain on asset disposal					5				-				67				-
Investment and other					(2,722	)			(6,872	)			1,360				(1,052	)
					(862	)			(7,161	)			5,171				(530	)
Earnings (loss) before income taxes					4,154				(8,846	)			16,731				10,053
Income tax expense:
Current income tax expense					4,442				1,325				8,887				2,340
Deferred income tax expense					766				1,752				2,442				7,974
					5,208				3,077				11,329				10,314
Net earnings (loss) and comprehensive earnings for the period				$	(1,054	)		$	(11,923	)		$	5,402			$	(261	)
Basic earnings (loss) per share based on net earnings				$	(0.01	)		$	(0.07	)		$	0.03				(0.00	)
Diluted earnings (loss) per share based on net earnings				$	(0.01	)		$	(0.07	)		$	0.03				(0.00	)
Basic weighted average number of shares outstanding			191,446,597				180,974,609				190,867,192				176,291,929
Diluted weighted average number of shares outstanding			191,446,597				184,569,970				192,811,731				179,018,499

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(unaudited – prepared by management)
(expressed in thousands of US dollars)

		June 30,				December 31,
			2023				2022
ASSETS
Current assets
Cash and cash equivalents		$	43,504			$	83,391
Other investments			8,136				8,647
Accounts and other receivables			17,567				13,136
Income tax receivable			166				4,024
Inventories			30,531				19,184
Prepaid expenses			25,524				16,951
Loans receivable			1,250				1,000
Total current assets			126,678				146,333
Non-current deposits			660				565
Non-current income tax receivable			3,570				3,570
Non-current other investments			-				1,388
Non-current IVA receivable			14,695				10,154
Non-current loans receivable			2,186				2,729
Right-of-use leased assets			914				806
Mineral properties, plant and equipment			256,307				233,892
Total assets		$	405,010			$	399,437
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities		$	35,719			$	39,831
Income taxes payable			7,289				6,616
Loans payable			5,000				6,041
Lease liabilities			431				261
Total current liabilities			48,439				52,749
Loans payable			6,361				8,469
Lease liabilities			810				812
Provision for reclamation and rehabilitation			9,574				7,601
Deferred income tax liability			15,386				12,944
Other non-current liabilities			1,063				968
Total liabilities			81,633				83,543
Shareholders' equity
Common shares, unlimited shares authorized, no par value, issued, issuable
and outstanding 191,505,299 shares (Dec 31, 2022 - 189,995,563 shares)			662,029				657,866
Contributed surplus			3,793				6,115
Retained earnings (deficit)			(342,445	)			(348,087	)
Total shareholders' equity			323,377				315,894
Total liabilities and shareholders' equity		$	405,010			$	399,437

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(unaudited – prepared by management)
(expressed in thousands of US dollars)

			Three months ended								Six months ended
			June 30,				June 30,				June 30,				June 30,
				2023				2022				2023				2022
Operating activities
Net earnings (loss) for the period			$	(1,054	)		$	(11,923	)		$	5,402			$	(261	)
Items not affecting cash:
Share-based compensation				415				972				2,040				2,499
Depreciation, depletion and amortization				6,973				4,324				13,592				10,786
Writte off of exploration properties				435				500				435				500
Deferred income tax expense				766				1,752				2,442				7,974
Unrealized foreign exchange loss (gain)				519		-		(84	)			1,614		-		(220	)
Finance costs				374				336				774				634
Accretion of loans receivable				(114	)			-				(207	)			-
Loss (gain) on asset disposal				(5	)			105				(67	)			46
Loss on other investments				3,150				7,626				53				2,269
Performance and deferred share units settled in cash				-				-				(2,118	)			-
Net changes in non-cash working capital				(6,606	)			(22,156	)			(19,508	)			(21,042	)
Cash from (used in) operating activities				4,853				(18,548	)			4,452				3,185
Investing activities
Proceeds on disposal of property, plant and equipment				-				48				-				82
Mineral properties, plant and equipment				(23,864	)			(15,451	)			(44,581	)			(28,448	)
Purchase of other investments				-				(748	)			-				(2,119	)
Proceeds from disposal of other investments				1,846				-				1,846				-
Redemption of (investment in) non-current deposits				(163	)			2				(95	)			4
Cash used in investing activities				(22,181	)			(16,149	)			(42,830	)			(30,481	)
Financing activities
Repayment of loans payable				(1,575	)			(1,214	)			(3,149	)			(2,297	)
Repayment of lease liabilities				(86	)			(54	)			(149	)			(106	)
Interest paid				(214	)			(204	)			(453	)			(381	)
Public equity offerings				-				-				-				46,001
Exercise of options				641				1,448				2,453				1,578
Proceeds from loans receivable				400				-				500				-
Share issuance costs				-				(15	)							(2,812	)
Performance and deferred share units witholding tax settlement				-				(6	)			(294	)			(1,903	)
Cash from (used in) financing activities				(834	)			(45	)			(1,092	)			40,080
Effect of exchange rate change on cash and cash equivalents				16				(46	)			(417	)			139
Increase (decrease) in cash and cash equivalents				(18,162	)			(34,742	)			(39,470	)			12,784
Cash and cash equivalents, beginning of the period				61,650				151,014				83,391				103,303
Cash and cash equivalents, end of the period			$	43,504			$	116,226			$	43,504			$	116,226