Endeavour Silver Corp. (NYSE: EXK) reported Q4 EPS of ($0.13), $0.16 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $34.6 million versus the consensus estimate of $40.03 million.

2019 Fourth Quarter and Full Year Highlights

• Gross Revenue: Q4 revenue of $34.6 million and full year revenue of $121.7 million from the sale of 4.1 million oz of silver and 39,151 oz gold at average realized prices of $16.29 per oz silver and $1,422 per oz gold.
• Cash Flow: Q4 cash flow from operations before working capital changes of negative $7.9 million and full year operating cash flow of negative $8.9 million. Full year mine operating cash flow before taxes(1) was $14.9 million.
• Net Income: Q4 net loss of $17.9 million ($0.13 per share) and full year net loss of $48.1 million ($0.36 per share), due mainly to higher operating costs, increased general administrative and exploration costs and significant depreciation and depletion due to short mine lives. Full year EBITDA(1) was negative $11.1 million.
• Balance Sheet: Cash balance of $23.4 million and working capital position of $38.4 million. Only loan liabilities are equipment loans of $8.9 million to upgrade mobile fleet and reduce future operating costs. Raised net $22.8 million in proceeds from the ATM equity offering.
• Metal Production: Q4 production of 939,511 oz silver and 9,578 oz gold for 1.7 million oz silver equivalent (AgEq). Full year production of 4,018,735 oz silver and 38,907 oz gold for 7.1 million oz AgEq using an 80:1 silver:gold ratio.
• Operating Costs: Q4 cash cost(1) of $13.63 and full year cash cost of $12.85 per oz silver payable net of gold credits. Q4 all-in sustaining cost (AISC)(1) of $23.20 and full year AISC of $21.19 per oz silver payable net of gold credits. Higher production costs due mainly to underperformance of our mines, increases in power rates, contractor mobilization costs, employee severance, the expensing of capital development due to exhaustion of remaining reserve life at El Cubo and the higher initial operating cost of the El Compas mine
• El Compas Achieved Commercial Production: Mine is performing on target and management is focused on reducing costs and improving recoveries.
• Guanacevi Showed Operational Improvement: Operating costs declined and productivity improved quarter on quarter with rising production, tonnes and grades. Production at Guanacevi improved each quarter and peaked in Q4 to return to positive mine operating earnings and break-even free cash flow.
• Terronera De-risked and Permitted: Acquired final government permits and continued to advance economic studies. Now considering a full feasibility study to reduce the cost of capital and increase project certainty.
• Continued Exploration Success: Released positive exploration drill results for Guanacevi, Bolanitos and Parral and commenced drilling on two prospective properties in Chile.

Bradford Cooke, Endeavour CEO, commented, “The Company’s financial performance last year was negatively impacted by significant operating issues and higher costs at each of our mines. We made sweeping changes to the mining operations in Q2 and Q3 and as a result, we are finally seeing production rising and costs falling, led by Guanacevi. Endeavour expects higher production and lower costs at each of its three mines in 2020.”

“Our headline net loss includes several extraordinary items in addition to underperformance of our mines, such as increased general administrative costs, higher exploration costs, significant depreciation and depletion due to short mine lives, elevated contractor mobilization costs, employee severance, expensing capital development due to exhaustion of remaining reserves, and the suspension of operations at El Cubo.”

“While 2019 was operationally the most challenging in our 15 year history, we did enjoy some success including achieving commercial production at our new El Compas mine, turning around the Guanacevi mine, making the required changes at Bolanitos to turn it around, receiving the final government permits to develop Terronera and delivering positive exploration drill results at Guanacevi, Bolanitos and Parral.”

For earnings history and earnings-related data on Endeavour Silver Corp. (EXK) click here.