Endeavour Silver Corp. (NYSE:EXK) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 01:00 pm ET


Endeavour Silver Corp. (NYSE:EXK) Q2 2020 Earnings Conference Call - Final Transcript


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Bradford Cooke

just shy of 600,000 ounces silver and 6,000 ounces gold. That works out to about 1.1 million ounces of silver equivalents at the now 80:1 silver/gold ratio.

Operating costs improved significantly during the quarter. Cash costs were down to $2.78 per ounce net of the gold credit. And the all-in sustaining costs consolidated were $14.91 per ounce of payable silver net of the gold credit. Both were substantially lower quarter-on-quarter and year-on-year, again due to the improved operating performance at Guanacevi and the high realized -- higher realized gold price for the by-product credit.

Guanacevi continues to outperform. If you recall, we launched over a year ago a complete clean sweep of the operations operating turnaround and a transitioning from mining deep low-grade ore bodies to opening new higher-grade ore bodies. That transition was completed in January. As a result in Q2, Guanacevi continued to generate mine free cash flow of around $2.7 million, and we saw higher processed tonnes higher silver and gold grades, higher silver and gold recoveries all well above plan.

We also had an advantage at Guanacevi when we did the restart in May in that we've had not only a significant high-grade stockpile built up prior to shutdown, but we had prepared some long hole stopes for blasting prior to shutdown. And that really expedited both an early plant restart and a on-time mine restart.

Bolanitos, still turning the corner. As forecasted the operating turnaround there was launched not even a year ago. But it also was able to squeak out a small profit on a mine free cash flow basis. And its restart was slower -- because of smaller stockpile and more of a focus on accelerating the mine development and grade control during the ramp-up period the restart period.

El Compas was also able to generate free cash flow with mine free cash flow at $1.1 million. Its restart was also slower than Guanacevi again due to a smaller stockpile and the focus on mine development and grade control.

And last, but not least, we did rev up the exploration drills again in late May after a shutdown in early April. And we did enjoy continued exploration, positive exploration drill results from the El Curso area at Guanacevi and the Melladito area at Bolanitos. We're actually mining the El Curso area now and they continue to grow the resources there. And we're currently developing towards the Melladito area and we hope to be in it here in Q3, Q4 for production.

So that's basically a summary of our Q2 operational and financial performance. I think now we might as well open this up for Q&A.