https://www.miningweekly.com

Endeavour Silver widens third-quarter loss, to miss guidance

5th November 2019

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

Font size: - +

Precious metals miner Endeavour Silver, which operates four silver/gold mines in Mexico, on Tuesday reported a third-quarter loss of $68-million, compared with a loss of $5.5-million, as its generated lower revenue on weaker production results.

Silver-equivalent production fell 30% year-on-year to 1.73-million ounces in the September quarter, with silver production down 34% to 948 547 oz and gold production down to 9 716 oz.

Revenue decreased by 24% to $28.6-million, the owner of the Guanaceví, Bolañitos, El Cubo and El Compas mines reported.

All-in sustaining costs (AISC) rose by 33% year-on-year to $21.53/oz, but Endeavour Silver pointed out that the costs were lower than in the second quarter of the year.

“Production in the third quarter 2019 was down year-on-year, but we are seeing positive traction from all the operational changes we made in the past two quarters. Consolidated cash costs per ounce, direct costs per tonne and net losses were all lower quarter-on-quarter thanks to the operational improvements,” said CEO Bradford Cooke.

“AISC remained high, but would also have been lower if not for the purchase and lease of new mobile mining equipment for Guanacevi and Bolanitos. The most progress was made at Guanacevi where cash costs decreased 26%, AISC costs decreased 16% and direct production costs decreased 22% compared to the second quarter of 2019.”

Cooke said that he expected the improving trend to accelerate in the fourth quarter, with higher production and lower costs as productivity continued to climb at Guanacevi and Bolanitos.

However, despite recent progress in the operating performance of the mines, Endeavour Silver did not expect to meet its 2019 production and cost guidance and said it could not provide a guidance for the balance of the year.

The TSX- and NYSE-listed miner's share price fell 7% on Tuesday to C$3.07 apiece in Toronto and $2.34 a share in New York.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 
Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.059 0.907s - 111pq - 2rq
Subscribe Now