Endeavour Silver Corp. (NYSE:EXK) Q2 2023 Earnings Conference Call August 8, 2023 1:00 PM ET
Company Participants
Galina Meleger - Vice President, Investor Relations
Dan Dickson - Chief Executive Officer
Don Gray - Chief Operating Officer
Conference Call Participants
Heiko Ihle - H.C. Wainwright
Craig Hutchison - TD Securities
Lucas Pipes - B. Riley Securities
Justin Stevens - PI Financial
Cosmos Chiu - CIBC
Operator
Thank you for standing by. This is the conference operator. Welcome to the Endeavour Silver Corp. Second Quarter 2023 Financial Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions]
I would now like to turn the conference over to Galina Meleger, Vice President of Investor Relations. Please go ahead.
Galina Meleger
Thank you operator and good morning everyone. Before we get started, I ask that you view our MD&A for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at edrsilver.com.
With us on today's call is Dan Dickson, Endeavour's CEO; Christine West, our Chief Financial Officer; and Don Gray, Endeavour's COO. Following Dan's formal remarks, we will open the call for questions.
And now over to Dan.
Dan Dickson
Thank you, Galina and welcome everyone. I would like to start by acknowledging the tremendous achievements we made at Terronera in Q2, which advances our strategy in pursuing high-margin production growth.
During the quarter, we obtained formal Board approval committed to project loan financing, established a seasoned team, and now construction is well underway. Terronera is a unique opportunity that will reposition the company to generate significant free cash flow, bringing us one step closer to achieving our mission of becoming a premier senior silver producer.
Nevertheless, despite continued positive production performance, the headline for this quarter continues to be pressure on costs. As a company with operations in Mexico, we are facing the challenge of rising costs for which we remain vigilant to mitigate the impacts. Like all our peers, macroeconomic factors such as industry-wide inflation and a strengthening Mexican peso have continued to put pressure on consumables and labor costs across our operations. Unfortunately, we expect these trends to continue for the near-term.
In terms of production, consolidated Q2 silver equivalent production was up 8% year-over-year to 2.3 million silver equivalent ounces, bringing us to 4.7 million silver equivalent ounces for the first half of the year. This performance puts us well and in line to achieve this year's production guidance of 8.6 million to 9.5 million silver equivalent ounces. Compared to the same period prior year, both silver and gold production are up 10% and 6% respectively.