Call Start: 12:00 January 1, 0000 12:33 PM ET

Endeavour Silver Corp. (NYSE:EXK)

Q4 2022 Earnings Conference Call

March 2, 2023, 12:00 pm ET

Company Participants

Galina Meleger - VP, IR

Dan Dickson - CEO

Christine West - CFO

Don Gray - COO

Conference Call Participants

Marcus Giannini - H.C. Wainwright

Jake Sekelsky - Alliance Global Partners

Craig Hutchison - TD Securities

Mark Reichman - Noble Capital Markets

Lucas Pipes - B. Riley Securities

Operator

Thank you for standing by. This is the conference operator. Welcome to Endeavour Silver Corp. Full-Year 2022 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. Please go ahead.

Galina Meleger

Thank you, operator, and good day, everyone.

Before we get started, I would 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 Silver's CEO; Christine West, our Chief Financial Officer; and Don Gray, Endeavour's COO. Following Dan's formal remarks, we will open up the call for questions.

And now, over to Dan.

Dan Dickson

Thank you, Galina, and welcome, everyone.

I will keep today's call as brief as possible as all the details were published in today's news release, but make sure I hit some of the key points for our investors.

Endeavour Silver had a solid 2022 in what can be categorized as a challenging cost environment. Our production exceeded guidance, which helped alleviate the upward pressure on costs. Inflationary pressures across the entire spectrum of the inputs were fault across the entire mining sector, and it was no different for us. We continued to de-risk and advance Terronera. Ideally, a financial package would be complete. However, things outside our control has pushed that into this year. I'm confident we'll have clarity on this matter in short order. We continue to be excited about the acquisition of the Pitarrilla project, both solidifying our presence in Mexico and furthering our strategy of delivering industry-leading growth.

On a consolidated basis, we produced 9 million ounces of silver equivalent metal with both silver and gold production exceeding the upper range of guidance by 17% and 4% respectively. The second consecutive year, we've significantly exceeded production guidance. Guanacevi was a star performer yet again accounting for over 70% of consolidated production, with silver and gold grades well above plan. In fact, Guanacevi had record throughput grades averaging 512 grams per tonne silver and 1.44 grams per tonne gold, while the plant approached 1,300 tonnes per day average throughput in Q4. Overall, the mill performed well with recoveries averaging just under 86% for silver and just below 90% for gold, demonstrating consistency and stability at the slightly higher throughput.