Endeavour Silver Q1 Earnings Call Highlights

Endeavour Silver NYSE: EXK reported what CEO Dan Dickson described as “excellent results” for the first quarter of 2026, citing record production and revenue as the company benefited from the additions of Kolpa and Terronera to its production portfolio.

On the company’s earnings call, Dickson said Endeavour produced nearly 2 million ounces of silver and 12,000 ounces of gold in the quarter, with base metals bringing total production to 3 million silver equivalent ounces. That represented a 78% increase from the first quarter of 2025.

Revenue rose 230% year over year to $210 million. Endeavour reported cost of sales of $116 million, mine operating earnings of $94 million and mine operating cash flow before taxes of $115 million, which Dickson said was a 400% increase from the prior-year quarter. Adjusted net earnings were $59 million, or $0.21 per share.

Costs Elevated, But Improved From Prior Quarter

Dickson said all-in sustaining costs, net of byproduct credits, were $37 per ounce during the quarter, up 51% from the first quarter of 2025, when Kolpa and Terronera were not yet part of Endeavour’s production base. However, he noted that costs were 9% lower than in the fourth quarter of 2025, primarily due to the ramp-up of Terronera and improving operating efficiencies.

The CEO said both direct operating costs per ton and direct costs per ton were elevated in the quarter. He said direct operating costs per ton include mining, milling and site-level general and administrative expenses, while direct costs per ton also include royalties, mining duties and purchases of third-party material.

Dickson emphasized that metal prices have a meaningful effect on direct costs per ton. As an example, he said a $1 increase in silver prices raises costs per ton by about $0.90 at Terronera, $3.80 at Guanaceví and $0.50 at Kolpa, reflecting differences in royalties, duties, third-party purchase costs and required profit sharing.

Kolpa Expansion and Terronera Ramp-Up Drive Growth

At Kolpa, Dickson said Endeavour installed and commissioned a new three-stage crusher and ball mill during the quarter, increasing plant capacity to more than 2,500 tons per day. He said some plant expansion expenditures remain, but they should dissipate as the year progresses, with cost benefits expected to begin appearing in the current quarter.

Dickson also noted labor pressures in Peru, including challenges attracting and retaining skilled workers, which have affected labor costs, training costs and efficiencies. He said the company expects those additional costs to be offset by efficiencies from the updated and expanded operation.

At Terronera, Dickson said the mine remains in the early stages of operations. During the first quarter, the company transitioned from a construction and startup team to an operating team, which included personnel adjustments and reductions. He said mine and plant metrics have steadily improved through ongoing measurement and operational adjustments.

Endeavour expects Terronera’s grades in the second quarter to be slightly higher than in the first quarter, with a more significant grade improvement expected in the second half of the year, Dickson said in response to an analyst question. He also said exploration drilling has restarted at Terronera, with an update expected later in the quarter.

Dickson said Endeavour has not yet transitioned power generation at Terronera to its liquefied natural gas plant, but expects to do so before the end of the current quarter. The company has the necessary authorizations and plans to commission the LNG vaporization plant this month, he said.

Guanaceví Remains Cash-Flow Positive

At Guanaceví, Dickson said the mine generated more than $20 million in cash flow during the quarter, despite higher operating costs per ton. He attributed the higher costs largely to lower throughput and to cost-structure items such as royalties, purchased ore, mining duties and profit sharing.

In response to a question from Soundarya Iyer of B. Riley Securities about lower grades and increased third-party ore purchases, Dickson said higher metal prices allow the company to mine lower-grade material as cutoff grades decline. He said management continues to monitor grades, cutoff grades and margins, and expects Guanaceví to remain profitable.

Dickson said Endeavour knows Guanaceví can operate into 2027 and possibly into 2028, with drilling underway in various areas. He said the company expects to have a plan by year-end outlining how much longer operations could continue at the mine.

Pitarrilla Feasibility Study Still Targeted for 2026

Endeavour ended the quarter with more than $232 million in cash and working capital of more than $173 million. Dickson said that position provides a “strong and stable foundation” for the company’s ongoing initiatives, including Pitarrilla.

The company continues to invest in exploration, studies and economic evaluation work at Pitarrilla, with an economic evaluation expected in the third quarter. In response to Iyer, Dickson said spending was lower than expected in the first quarter and the work may be “a handful of weeks behind,” but the company is still hoping to deliver the study in the third quarter, possibly in the back half of the period.

Dickson said the company expects the cost to build Pitarrilla to be between $500 million and $600 million. He said Endeavour’s current cash generation could allow it to build a significant portion of that funding into the balance sheet by year-end.

Asked about dividends or share buybacks, Dickson said Endeavour remains on a growth trajectory and expects to use cash generated by the business for Pitarrilla. He said the company would likely consider dividends or buybacks after Pitarrilla is built, operating and generating cash flow.

Security, Permitting and Growth Strategy Discussed

In response to a question from John Tumazos of Very Independent Research about operating in Mexico, Dickson said some regions are more secure than others and noted that Endeavour has experienced disruptions. He said a “code red” event in Jalisco in February affected supply chains and led the company to shut down operations for three days to ensure it could respond to any safety incident. He said Endeavour has a security team that provides intelligence to support operating decisions.

Dickson said security-related costs do not vary significantly across Endeavour’s locations. He also noted that Endeavour sold its Bolañitos operation in January and is no longer operating in Guanajuato.

On Pitarrilla permitting, Dickson said the key item for a construction decision is a permit for the dry-stack tailings storage facility. The company is targeting a permit in 2027 but is monitoring permitting timelines in Mexico closely. Endeavour is continuing work on a construction camp and moving ahead with purchases of mobile and plant equipment to support engineering work, he said.

Dickson closed the call by saying Endeavour expects a strong remainder of the year, particularly in the second half, as Terronera grades improve, Kolpa operates near 2,500 tons per day and the company gains operating rhythm across Guanaceví, Terronera and Kolpa.

About Endeavour Silver NYSE: EXK

Endeavour Silver Corp. is a Vancouver-based precious metals mining company focused on the acquisition, development and operation of silver and gold properties in Mexico. Publicly listed on the New York Stock Exchange under the ticker EXK, the company has positioned itself as a mid-tier producer with a portfolio of high-grade, operating mines and exploration assets in key mineral belts.

Endeavour Silver's core business activities revolve around four principal underground mines located in the states of Durango, Zacatecas, Guanajuato and Jalisco.

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