JOHANNESBURG (miningweekly.com) – Dual-listed Endeavour Silver reported that, following the second quarter ended June 30, it was on track to meet its production guidance and beat its cash cost and all-in sustaining cost guidance for 2015.

Silver production for the quarter under review increased 8% to 1.8-million ounces, 35 828 oz more than the 2014 comparable period, while gold production fell 11% to 13 430 oz from 15 131 oz reported for the 2014 second quarter.

Silver equivalent production increased 1% to 2.7-million ounces (at a 70:1 silver:gold ratio), the Mexico-focused midtier silver mining company advised on Thursday.

As such, Endeavour was expected to meet the high end of its silver production forecast and the low end of its gold production guidance for 2015.

However, as a result of lower precious metal prices and the company’s lower gold production, Endeavour’s financial performance in the second quarter ended June 30 was lower than both the first quarter of the year and the previous comparable period.

The company also noted that its operating costs were slightly higher quarter-on-quarter, but substantially lower year-on-year.

Endeavour CEO Bradford Cooke commented that its strong operational and financial performance in the second quarter, notwithstanding lower metal prices, allowed the company to add $9.5-million in net cash to its balance sheet.

At Endeavour’s El Cubo mine, in Mexico, Cooke expected to see a decline in operating costs in the third quarter, owing to the completion of the 50% El Cubo mine expansion to 2 200 t/d during the period under review, which was on time and budget.

El Cubo production was below plan at mid-year but the company expected the mine to meet guidance by year-end.

El Cubo processed 9 106 t through the Bolañitos plant in June for total plant throughput of 59 667 t in June.

Management had initiated a $400 000 plant expansion, adding flotation cells and twinning the tailings line at El Cubo to take the plant capacity up to 2 000 t/d by the fourth quarter.

At Terronera, with the metal prices still falling in July, management felt it prudent to slow growth spending, postponing the project’s prefeasibility study (PFS), which had been initiated in January.

Assuming metal prices did not fall further, the PFS for Endeavour’s new, high-grade Terronera mine project, in Jalisco state, would be completed by January 2016.

"We released a robust preliminary economic assessment in May for [Terronera],” Cooke noted.

The study supported expectations that the project could be a profitable silver-gold mine with ample potential for growth of resources, expansion of operations and improvement of the economics.