Highlights

  • Q3FY24 revenue of EDR rose 8.1%, reaching USD 53.4 million, driven by higher gold sales.
  • Net loss of USD 17.3 million was recorded in Q3FY24, compared to USD 2.3 million last year.
  • The company forecast to record FY24 silver production between 4.4 and 4.6 million ounces.

Endeavour Silver Corp. (TSX:EDR) is a Canadian mineral company focused on the exploration, acquisition, development, and operation of precious metal properties in Mexico and Chile.

The company is focused on advancing the Terronera Project, aiming for initial production in the fourth quarter of 2024. With 77% of the project completed, more than USD 258 million has been spent of the total USD 271 million capital budget, with project commitments reaching USD 270 million.

Recent Financial Performance

In the third quarter of financial year 2024 (3QFY24), the company reported a revenue of USD 53.4 million, an 8.1% increase compared to USD 49.4 million in 3QFY23. The revenue growth was driven by higher gold sales volumes, along with increased realization prices. Operating earnings turned positive at USD 3.7 million in 3QFY24, a significant improvement from a loss of USD 3.8 million in the previous year, primarily due to higher earnings from mine operations.

However, earnings before income taxes fell to a loss of USD 13.2 million, compared to a gain of USD 0.8 million in prior corresponding period. This decline was mainly attributed to foreign exchange losses and losses on derivative contracts. During the reported period, the company also posted a net loss of USD 17.3 million during the period (pcp), worsening from a net loss of USD 2.3 million in pcp, reflecting the impact of these factors.

Recent Business Update

In 3QFY24, the company’s consolidated silver production totaled 874,717 oz, down 24% from 1,148,735 oz in 3QFY23. This decline was primarily due to a 26% drop in silver production at the Guanaceví mine and a 2% decrease at the Bolañitos mine.

Company Outlook

For FY24, the company expects silver production to range between 4.4 and 4.6 million ounces. Gold production is expected to be between 36 and 38 kilo ounces.

Top 10 Shareholders

The top 10 shareholders of EDR collectively hold approximately 28.72% of the company’s shares. Van Eck Associates Corporation and Baker Steel Capital Managers LLP are the largest shareholders, with stakes of around 9.32% and 4.19%, respectively.

Stock Information

The stock has declined by approximately 4.80% over the past week and 13.29% over the last month. However, it is trading above its 52-week high of CAD 7.87 and its 52-week low of CAD 1.94. As of December 17, 2024, the stock's closing price stands at CAD 5.74.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 17, 2024. The reference data in this report has been partly sourced from EODHD/Others.