Dual-listed Endeavour Silver has raised its 2022 guidance, as the miner continues to outperform its mine plans, delivering an “exceptional” second-quarter production performance that was 15% above plan.
The company increased its production outlook to between 7.6-million and 8-million silver-equivalent ounces.
CEO Dan Dickson says that the additional production has allowed Endeavour to maintain its cost guidance on per-ounce metric, but stresses that industry-wide inflation continues to be a challenge.
“We are seeing the largest inflationary impacts on energy costs, plant reagents and steel prices, which are affecting both operating and development costs. Cost control will continue to be a key focus as cost pressures are expected to continue for the remainder of the year,” says Dickson.
Meanwhile, for a second quarter, Endeavour decided to withhold sale of a meaningful amount of silver, owing to the drop in prices. The company is holding 1.6-million silver-equivalent ounces in finished goods inventory for future sales. The market value of the finished goods was $34.5-million at the end of June.
In the short term, the increased inventory has negatively impacted on quarterly financial metrics, such as revenue, earnings, cash flow and cash balance.
Endeavour reported revenue of $30.8-million from the sale of 602 894 oz of silver and 9 792 oz of gold at average realised prices of $22.72/oz of silver and $1 840/oz of gold.
The company reported a net loss of $11.9-million and an adjusted net loss of $4.3-million.