Endeavour Silver Corp. (TSX: EDR, NYSE: EXK, Frankfurt: EJD) announced today its financial and operating results and unaudited financial statements for the First Quarter, 2012. Endeavour owns and operates two high-grade, underground, silver-gold mines in Mexico, the Guanacevi Mines in Durango State and the Guanajuato Mines in Guanajuato State.
The Company reported record adjusted earnings (a non-IFRS measure) of $19.6 million ($0.22 per share) in the First Quarter, 2012. Net earnings (an IFRS measure) were $19.8 million and operating cash-flow was $30.0 million from revenues totaling $49.0 million. Silver sales averaged $33.10 per ounce (oz) and the cash costs of production were $6.26 per oz net of gold credits, generating a gross margin of $26.84 per oz of silver produced in Q1, 2012.
Highlights of First Quarter, 2012 (Compared to Q1, 2011)
(1)Adjusted earnings, mine operating cash-flow and cash costs are non-IFRS measures
Bradford Cooke, Chairman and CEO, commented, “Endeavour posted strong financial and operating results in the First Quarter, 2012. Thanks to rising silver and gold production, and robust precious metal prices, our sales revenues, operating cash-flow, net earnings and adjusted earnings were all up sharply. As a result, the Company’s working capital has never been stronger and we are well positioned to close in June the recently announced strategic acquisition of our third operating silver-gold mine in Mexico, the El Cubo mine in Guanajuato State. Endeavour is well on track to meet its production guidance for 2012. Management plans to provide further guidance regarding El Cubo and the Company’s revised production outlook for the year after closing.”
“As in previous years, our capital expansion programs at Guanacevi and Guanajuato commenced in the 1st Quarter and are scheduled for completion in the 3rd and 4th Quarters. Silver production will remain relatively flat and cash costs a bit higher than guidance reflecting our current focus on the capital programs. However, once the Guanajuato mine expansion from 1000 tonnes per day (tpd) to 1,600 tpd and the Guanacevi plant optimization from 1000 tpd to 1200 tpd are completed, production should start rising and cash costs should start falling once again.”
“In exploration, we currently have five drill rigs working, three at Guanajuato and one each at Guanacevi and the San Sebastian project in Jalisco. New property acquisitions in each of the two districts we operate in are currently in progress, and some exciting new property acquisitions elsewhere are now being evaluated. Initial results from our exploration and acquisition programs are expected this quarter.”
Read more in the company’s release.