Photo by: Reuters
TORONTO (miningweekly.com) – Dual-listed Endeavour Silver on Wednesday reported a 26% rise in silver-equivalent output from its three Mexican mines, adding that it was “intent” on improving its safety, financial and exploration performance this year.
For the first three months of 2014, the TSX- and NYSE-listed company reported silver-equivalent output rose to three-million ounces, calculated using a 60:1 silver-to-gold ratio.
“Although we did not forecast any production growth in 2014, we are already ahead of our production plan for the year as our operations team continues to perform well. Management is also intent on improving our safety, financial and exploration performance in 2014 as we get ready for the next leg up in the precious metal cycle,” Endeavour CEO Bradford Cooke said.
Silver output rose 27% to 1.9-million ounces and gold output climbed 23% to 18 519 oz.
Endeavour had also reported rising precious metals sales, citing silver sales being up 1% at 1.53-million ounces, and gold sales rising 5% to 16 445 oz.
At the end of the quarter, Endeavour had 295 839 oz of silver and 421 oz of gold bullion in inventory, and 60 512 oz of silver and 1 113 oz of gold in concentrate.
Cooke said that the recent fatal accidents at Guanacevi and El Cubo prompted management to immediately implement a full safety-retraining programme at all three of the company’s mines. Endeavour on Monday reported that a miner had died at its El Cubo mine, in Guanajuato state, just more than a week after a worker died at its Porvenir Cuatro mine, part of the Guanacevi mine operations in Durango state.
“Each mine will shut down for two days so each shift can receive a two-day refresher course on safety policies and practices. In addition, Endeavour will retain an underground mine safety specialist to review the company's safety programmes and implement any recommended improvements,” he said.
Cooke noted that Endeavour would try and optimise its operating costs and improve its profit margins given the current low silver and gold prices. Brownfield exploration and development programmes funded by cash flow were under way at all three mines to replace reserves, expand resources and extend mine lives.
At Guanacevi, higher grades and recoveries related to ore from the Porvenir Cuatro mine helped deliver record quarterly production in the period.
At El Cubo, the capital investments and operational changes implemented since acquisition appeared to have gained traction, but there were still a few months of accelerated mine development needed in order to make the progress sustainable over the longer term.
Production grades improved in the first quarter, but mine output declined owing to development initiatives and a change of mine manager. The mine was now back on plan to fill the plant capacity by year-end and start building an ore stockpile.
At Bolanitos, the mine continued to operate at the plant capacity and gold grades continued to exceed the estimated reserve grades.
Drilling would also resume at Endeavour’s high-grade silver/gold discovery in the Terronera vein on the San Sebastian property, in Jalisco state, currently in the mine permitting process.
The company’s TSX-listed stock closed up 2.46% at C$5 apiece, having gained just under 20% so far this year.