Endeavour Silver Corp boosts first quarter earnings despite lower output
Higher precious metal prices and foreign exchange gains helped Endeavour Silver Corp (TSE:EDR, NYSE:EXK) boost first quarter earnings, despite lower output, it told investors.
Net earnings increased to $6mln in the three months to end March, compared to $1.8mln in the same period last year, on revenues which were down 12% to $36.4 mln.
Silver production decreased 29% to around 1.076mln ounces, while gold output was 27% lower to 11,724 ounces.
But the realized silver price was up 17% to $17.79 per ounce sold, which was 2% above average spot price, while the realised gold price increased rose 5% to $1,280 per ounce sold (5% above average spot price).
Endeavour operates three silver-gold mines in Mexico - the Guanacevi mine in Durango state, and the Bolanitos and El Cubo mines in Guanajuato state.
Chief executive Bradford Cooke said: “We are pleased to report significantly higher first quarter earnings for 2017, especially in light of our lower production compared with Q1 2016 and our increased investments on exploration and development.
“Our plan to increase production throughout the year bodes well for our financial outlook on the year.”
Cooke explained how the group had recently made the decision to develop El Compas into our fourth mine and was looking foreward to giving the green light soon to develop Terronera into a fifth.
“The high-grade drill results from Terronera released during the first quarter were not included in our recent resource estimate and prefeasibility study and represent a future opportunity to optimize our mine plan at Terronera,” he said.
Endeavour noted that direct production costs per tonne and cash costs for the first quarter were relatively flat compared to the same quarter last year, while the benefits of a lower Mexican peso were offset by reduced mining activity.
“Guanacevi is currently underperforming the mine plan as a result of operating issues experienced in 2016 but productivity is expected to return to historical levels and cost metrics are expected fall over the course of 2017,” it added.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/177256/endeavour-silver-corp-boosts-first-quarter-earnings-despite-lower-output-177256.html
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